Foreclosure date changed at Willits
August 4, 2010
BASALT – The date for the foreclosure sale of the building proposed for a Whole Foods Market at Willits Town Center in Basalt has been rescheduled at the request of the court-appointed receiver overseeing the property.
The foreclosure was delayed from Aug. 25 to Sept. 15, according to the Eagle County Public Trustee’s website. Bank of America has foreclosed on Willits Town Center, alleging that developer Joseph Freed and Associates (JFA) has defaulted on loans with $36 million still due.
Documents filed with the public trustee as part of the foreclosure process contend that $28.37 million is due on loans tied to the Whole Foods building. Another $7.54 million is allegedly due on loans tied to other parts of the property.
Mike Staheli, project manager for the receiver, Cordes and Company of Denver, said his firm requested the delay in the foreclosure sale because of meetings with the town of Basalt. The town government is reviewing alterations to the land-use approvals that are needed to accommodate a smaller supermarket proposal. Town officials said they want to wrap up their discussions by the end of August.
Whole Foods can opt out of its lease at Willits Town Center if land-use approvals aren’t in place by early September. Construction must be under way by October.
JFA is attempting to reach an agreement with the lender and retain control of the project.
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The foreclosure on other portions of Willits Town Center is on indefinite hold. Eagle County District Judge Fred Gannett issued a stay order in late July as part of litigation brought by Clayco Inc., the general contractor on the project. Clayco sued Willits Town Center Partners LLC, a company controlled by JFA, over alleged nonpayment for services.