Cattle Creek project foreclosure action set
December 23, 2009
CARBONDALE – A foreclosure action is scheduled Wednesday against Riverbend LLC, developer of a troubled residential subdivision at Cattle Creek.
Garfield County Deputy Public Trustee Bob Slade said Tuesday he talked to the attorneys involved and the trustee sale for Riverbend LLC was expected to proceed.
Foreclosure proceedings were filed Aug. 26 by Texas lender PlainsCapital Bank, for failure to pay off a $12.5 million loan.
One of the partners in Riverbend LLC is Related WestPac, developer of the Base Village project at Snowmass Village, which has also had numerous financial problems over the past year.
The so-called Cattle Creek Colorado development plan put forward by Riverbend was just the latest of several failed projects proposed for the 289-acre property, located adjacent to Highway 82 between Glenwood Springs and Carbondale.
The latest plan had called for 1,000 residential units, including 315 single-family homes and a mix of townhouses and apartments, plus 30,000 square feet of commercial space and a site for a future new school.
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In March, six contractors filed liens against the development, claiming they were owed a total of about $464,000 for work already done. Related WestPac withdrew its development plans from the Garfield County planning office in July.
This would be the second time the Cattle Creek property has been put on the public auction block. In 2006, what was then known as Bair Chase, which called for an exclusive golf course and high-end residential, fell into foreclosure after failure to make payments on a $14.4 million loan. Related WestPac bought the land out of foreclosure later that year for a reported $18.5 million.
Meanwhile, a foreclosure proceeding against another development property, the Roaring Fork Lodge in Glenwood Springs, has been postponed indefinitely. The developers of the high-end hotel and condominium project, Roaring Fork Lodge LLC, filed for Chapter 11 bankruptcy protection in Denver earlier this month.
“Bankruptcy action stops the foreclosure, so it did not go to sale as scheduled [last week],” Slade said. The foreclosure action will be on indefinite hold until the bankruptcy court releases it, he said.