Snowmass Acquisition Co. LLC, an affiliate of Related Companies, announced Friday that the company bought back Snowmass Base Village from the banks that had foreclosed on the development in 2010.
The acquisition includes all Base Village assets, including the Viceroy Snowmass hotel, retail units, unsold Capitol Peak and Hayden Lodge condominium units, the arrival center, parking garage and land parcels around the area.
Company officials declined to disclose what it paid for the eventual 1 million-square-foot development, despite the fact that the price eventually will be made public. The transaction comprises asset purchases and a private settlement, which is why company officials won’t disclose the sale price, said Related spokesman Steve Alldredge.
The long-awaited purchase came as a relief to Snowmass Village Mayor Bill Boineau.
“It’s about time,” Boineau said. “I’m glad to hear it’s done. I’ve been holding my breath for a while.”
Although the purchase is generally a step in the right direction, the community has a challenge ahead of it in figuring out what to do with the development, Boineau said, adding that the community should have a say in Base Village’s future.
“I hope that we have the opportunity to talk to Related in a very open discussion for what their immediate plans are,” Boineau said. “And then we can have a more lengthy discussion on future stages of development.”
Related has basic improvements to address before the new year, including relieving traffic at the Treehouse and selling some units at the Viceroy, but the owners are essentially at a stand-still until they meet with community members, Alldredge said.
“It’s really a slow process,” he said. “We really don’t just want to take over, we really want to begin to engage the community.”
Construction halted on Base Village, which includes retail, restaurant and residential space, in 2009 amid the global recession. Related accused a major project lender, Hypo Real Estate Capital Corp., of reneging on promised funds, while Hypo alleged that Related had stopped paying back $500 million in loans. Numerous lawsuits involving contractors, developers and the banks followed, and Base Village went into receivership. In November, the development was sold uncontested at a foreclosure auction to Snowmass BV Holdco, an entity formed by the lenders, for $138 million.
Related Companies and its local affiliate, Related Colorado, own and manage the Snowmass Center, Snowmass Mall, Mountain Chalet, Snowmass Inn, and the operating companies Snowmass Hospitality and Snowmass Property Management.