Snowmass Base Village Project in Hands of Receiver

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12 July 2010

Push to The Latest: No

SAM Magazine-Snowmass Village, Colo., July 12, 2010- On Friday, July 9, District Judge Gail Nichols put the Base Village project at Snowmass into receivership. The move, effective today, July 12, transfers operational control from the Related Companies of New York to Destination Snowmass Services, Inc., a subsidiary of Lowe Enterprises of Los Angeles.

The decision came after lenders led by Hypo Real Estate Capital Corporation filed a complaint claiming that Base Village owes more than $386 million, plus another $48.5 million in related expenses, on its original $520 million loan. Hypo also asked the court to appoint the receiver. All these actions are part of foreclosure proceedings initiated by the lender.

Jim DeFrancia, a principal with Lowe Enterprises based in Aspen, is heading the receivership. He said that Related is not contesting the appointment of a receiver, but would not speculate on the outcome of the foreclosure process. For its part, Related said in a prepared statement, "We are currently reviewing all of our legal options as it relates to the filings."

Aspen officials greeted the news positively. "We are hopeful that this foreclosure action is a signal that the Base Village lenders intend get this development project moving forward again," said Aspen Skiing Co. CEO Mike Kaplan. "We look forward to working cooperatively with the appropriate parties and seeing Base Village realize its true potential."

In the meantime, the receivership will not affect anything that is already operating, communications chief Jeff Hanle told SAM. "The buildings and operations that we own and run will be unaffected, as will The Viceroy and other businesses that are up and running," he said.

The Base Village project, approved in 2005 and designed to add a million square feet of residential and commercial space in Snowmass Village, is nearly half finished. Initially a joint venture between Intrawest and the Aspen Skiing Company, it was sold to Related before construction began in 2008.

Aspen Skiing Company has invested about $50 million in on-mountain improvements at Snowmass in support of the overall project, including its acclaimed Children's Center and a gondola from the center of Base Village.

Related retains a large stake in the community, as it owns the Snowmass Center, Snowmass Mall, Mountain Chalet, Snowmass Inn, Club Commons, Snowmass Hospitality, and Snowmass Property Management.