Aspen Stage 3 developer files for bankruptcy
ASPEN – A Dallas firm that once had plans to redevelop the old Stage 3 property on Main Street has gone bankrupt.
Aspen Main Street Properties LP filed for Chapter 11 bankruptcy protection in Dallas, listing its assets between $10 million and $50 million, and its liabilities between $10 million and $50 million as well, according to court documents.
The bankruptcy not only will allow the company to reorganize its debts, it also means foreclosure proceedings on its 625 E. Main St. property are on hold.
“The bankruptcy basically pauses the foreclosure,” said Tiffany Wancura, chief deputy treasurer for Pitkin County. “Until we get a court order for relief of stay, the foreclosure is pending.”
The property was scheduled to be sold at foreclosure auction March 17. But on March 15, Aspen Main Street Properties filed for bankruptcy. The firm’s managing member, developer Jeffrey Jones, did not return a telephone message left at his Dallas office Wednesday.
In May 2006, Aspen Main Street Properties acquired the land and building, which for 20 years housed the Stage 3 movie theater complex, for $5 million from the Carmisch Brothers of Minnesota.
In February 2007, Jones’ company received clearance from Aspen City Council to redevelop the property into a 27,000-square-foot, mixed-use building that would include office and commercial space, along with five free-market condominiums, five affordable-housing units, and 28 parking spaces.
It was originally scheduled for completion in 2009, but construction was suspended in the winter of 2008. And in August, Alpine Bank began foreclosure proceedings, claiming that Aspen Main Street Properties was delinquent on a $4.7 million loan.
According to the bankruptcy petition, Aspen Main Street Properties’ 20 largest creditors include a number of Aspen businesses and governmental entities. Among them are:
• Swift Property Fund – $125,454
• John Olson Builders – $104,568
• Pitkin County Treasurer – $21,322 (for property taxes)
• City of Aspen, water services – $16,430 (this amount is in dispute, according to the bankruptcy filing)
• Gallagher Sharp West – $10,967
• Charles Cunniffe (architect) – $7,858
• Hunter Square – $3,300
• Alpine Bank – $59,643 for August interest; $57,719 for July interest; $59,643 for June interest; $57,719 for May interest; and $8,753 in late charges
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Development in Basalt barely skipped a beat in 2020 despite the coronavirus. It’s expected to be busier next year.