Glenwood hotel developer staves off foreclosure proceedings
November 19, 2009
GLENWOOD SPRINGS – A scheduled foreclosure on the Roaring Fork Lodge property in Glenwood Springs was postponed at the last minute Wednesday, giving the developer two more weeks to make good with the bank.
“The attorneys called at 9:55 [a.m.] and said not to do it,” Garfield County Deputy Public Trustee Bob Slade said.
The weekly public trustee’s sale scheduled for 10 a.m. on Wednesday was to have included the Roaring Fork Lodge foreclosure proceeding. It instead was continued until Dec. 2.
Slade said it’s not uncommon for foreclosures to be called off at the last minute, although a formal notice of intent to cure a loan is supposed to be filed by noon the day before a sale, if that’s the case. That did not happen, Slade said.
“We’ll start over again in two weeks,” he said. “It give the parties more time to negotiate.”
Roaring Fork Lodge LLC Manager Terry Claassen could not be reached Wednesday afternoon for comment.
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The Roaring Fork Lodge is a planned 106-room hotel and 40-unit luxury condominium project that was approved by the city of Glenwood Springs for the former Sunlight Racquet Club site at the corner of Midland Avenue and 27th Street.
Magnolia Hotels, a Denver-based hotel development and management company that has high-end hotels in Denver, Dallas and Houston, was lined up to oversee the design and construction of the project.
The lodge plan first gained approval in 2007, however rising construction costs at the time caused developers to rework the project.
This past spring, Alpine Bank filed foreclosure papers against Roaring Fork Lodge LLC on nearly $3.3 million in loans for purchase of the lodge property, plus another property on nearby Hagar Lane which was to be used to fulfill the project’s affordable housing requirements.
Claassen has since said that they have been working to pay off the loans.
Another development property, at the site of the old Mountain Aire Apartments on Fourth Street in Carbondale, did go into foreclosure at Wednesday’s sale, Slade said. The $800,962 note went to Community Banks, which held the loan, he said.
What the bank will now do with the property is uncertain. Local developer Don Ensign had purchased the property and gained approval for a mixed-use commercial and residential project in 2006. However, he had since been trying to sell the property and associated development rights.
The property is approved for a three-story, 40,000 square-foot building with about 4,400 square feet of ground-level commercial space for lease, and 18 residential units on the second and third floors. The .38-acre site has recently been leased to the town for a parking lot.