A brand-name hotel. New restaurants. More parking.
In its second ski season in business — after a long, dry summer and off-season — Snowmass’ Base Village has a few things to brag about when it opens on Thanksgiving weekend.
But about a year after the credit markets dried up and the bottom fell out of the real estate market, future plans are still uncertain for Base Village owner Related WestPac and its investors.
“I know we haven’t lived up to a lot of community expectations in terms of delivery, but we’re not quite dead yet,” Related WestPac CEO Dwayne Romero told the Snowmass Village Town Council on Monday night.
Romero was referring to the delays in building, which have left two buildings wrapped in plastic for the upcoming winter season, and no system in place for guests arriving via the Base Village parking garage.
Asked to come before Town Council to give an update on its situation, Romero began with good news.
The 173-room Viceroy hotel, with two restaurants, a bar, and what it hopes will be a lively pool scene, opens Nov. 25, the day before Thanksgiving. Romero reported that bookings for the condo hotel, which has 152 residences but with many rooms that can “lock off” and be rented separately, are in the seven figures so far.
“It’s a lot to add to the village; it will add vibrancy, there’s no doubt about that,” said Romero, pointing out that only 90 units debuted in phase one of Base Village. “It’s been something we’ve been maintaining our pride on.”
The Viceroy is encouraging local patronage of the hotel with an introductory special and a locals program. The special offers Roaring Fork Valley residents a second night free after booking one night at the standard rate, through Dec. 17. And the Viceroy Club offers discounts on food and drinks, spa treatments and shopping, plus special lodging rates and invitations to parties, for an inaugural-year membership fee of $50.
Because the Viceroy isn’t yet connected to the Base Village core, Related WestPac officials are putting in some temporary measures to aid with circulation, such as an additional bus stop, continuation of a sidewalk and shuttle service.
One more restaurant is expected to open in the Base Village core, bringing the total there to four. Buchi, a Japanese comfort food place, will open early in the ski season if not Thanksgiving, according to Related WestPac officials. The eatery was originally supposed to open last ski season, but ran into construction and mechanical delays — which reportedly were at least partially due to negotiations with the landlord over tenant finishes.
Renegotiated leases with Base Village businesses are also a major factor this recession-plagued year. Sneaky’s Tavern, The Sweet Life and Junk/Liquid Sky are the other three eateries that, after a dismal summer, have decided to stick it out. (Junk/Liquid Sky never opened regularly for business this past summer.)
“We’ve had to comprehensively and systematically rework the leases in Base Village to make sure these guys survive,” said Romero.
Base Village currently has about a dozen businesses total, including retailers such as Performance Sports, Generation Snowmass, Snowmass Style, Aspen Sports and the North Face Concept Store and the Aspen Skiing Co.’s Four Mountain Kids and Beginner’s Magic shops.
Underneath it all, the Base Village parking garage is upping its number of parking spaces available to day skiers and shoppers this winter — 240 spaces versus 178 last year.
Meanwhile, two buildings that were originally supposed to be well on their way to opening this ski season — the arrival center and the Little Nell Residences Snowmass — will be wrapped in plastic instead. The good news is that they’re getting a new coating of snow-white plastic, Romero said, replacing the older material that is there now which has drawn some criticism from locals. Related WestPac’s lenders have stepped up to provide funding for winter protection and site preparation, Romero said, which also includes cleaning up some fencing and the entrance to the parking garage.
It was one year ago that Related WestPac announced funding had dried up for the phase of construction that included the Little Nell and arrival center, and the delay has caused more than cosmetic issues.
Without an arrival center, day skiers and others parking underground have no centralized system of getting up to the base plaza and changing into their ski gear. As a remedy, Related WestPac was supposed to build a temporary arrival center with escalators, stairs, a locker room area and even a faux front to cover up the stalled building structure. But that plan stalled as well, and the town of Snowmass Village is currently pursuing a $2 million insurance bond it required from the developer to get that piece in place — only not in time for this ski season.
At Monday’s meeting, Town Council discussed a request by Related WestPac to put a hold on its warranty claim. Romero told the council that his company is in negotiations with a “third party” that if successful would allow the original arrival building to move forward.
“I understand you have the weapon, the bullets in the chamber and your fingers on the trigger,” he said, referring to the $2 million claim, “but if you can put it on the table for 60 days or 90 days or whatever, this letter is a simple request of that.”
Town Council denied the request and indicated it would continue to pursue the claim unless more definitive information came forward about a construction revival.
Romero also told the council that “we’re working with the banks” with the goal of finding funding to continue work on Base Village. Had the credit crisis not dried things up, there would have been 21 more units in Base Village open by this ski season and an additional 27 early next year.
Town Council, however, will believe it when they see it.
“We’ve heard this larger global solution since the beginning of time,” said Councilman Arnie Mordkin.
The developer and the town are also close to settling on some debt issues. Earlier this year Town Council discussed remedies for some $640,000 town officials said Related WestPac owed the town. Related WestPac has been making payments on some of that debt and negotiating other parts vis-à-vis some items they say the town owes them. According to Related WestPac, their debt is free and clear and the town owes $148,000.
Town Manager Russ Forrest, however, doesn’t exactly agree, but he feels the two sides are close. By Forrest’s most conservative calculation, Related owes $72,000.
“We’re not too far off,” he said.
lutz@aspendailynews.com
