Roaring Fork Lodge in Glenwood Springs headed to foreclosure
Glenwood Springs, CO Colorado
GLENWOOD SPRINGS – The Roaring Fork Lodge, a planned hotel and luxury condominium project at the corner of Midland Avenue and 27th Street in Glenwood Springs, is headed into foreclosure after the developer defaulted on more than $3 million in bank loans.
A public auction Wednesday at the Garfield County Public Trustee’s office in Glenwood Springs throws into limbo one of Glenwood Springs’ largest approved development projects, calling for a 106-room, five-story hotel; 40 luxury condominiums; and an upscale restaurant and spa.
Roaring Fork Lodge LLC had signed on with Magnolia Hotels, a Denver-based hotel development and management company that has high-end hotels in Denver, Dallas and Houston, to oversee the design and construction of the project.
Terry Claassen, Roaring Fork Lodge LLC manager, did not return a call seeking comment on Tuesday.
The lodge plan first gained approval in 2007. However, rising construction costs at the time caused developers to rework the project.
Planned for the former site of the Sunlight Racquet Club, the lodge won approval from the city in June to increase the number of hotel rooms from 68 to 106, along with some other modifications.
However, Alpine Bank has held two bank notes for nearly $3.3 million for purchase of the lodge property, and another property on Hagar Lane that was planned to be included in the project to fill the affordable housing requirements. The bank filed foreclosure papers against Roaring Fork Lodge LLC last spring, but Claassen said at the time they were working to pay off the loans.
Developers had also agreed to include the construction of the Midland Avenue and 27th Street roundabout into the project. The city covered the cost of the recently completed $1.4 million project, with some financial help from Garfield County.
Also up in Wednesday’s public foreclosure sale is the Mountain Aire development property in Carbondale, which owner Don Ensign has been trying to sell for the past couple of years since gaining approval for a mixed-use commercial and residential project in 2006.
Ensign also did not return a phone call seeking comment for this story.
He had planned to convert the site of the former Mountain Aire Apartments, located on Fourth Street across from the Gordon Cooper Library in downtown Carbondale, into a three-story building with ground-level commercial spaces and 14 residential units comprising the top two floors.
While he was trying to sell it, Ensign has allowed the property to be used as a temporary public parking lot.
Mountain Aire Development LLC owes $800,962 in bank loans, according to Garfield County records.
“The owner has until noon the day before the sale to file a notice of intent to cure the loan,” Garfield County Deputy Public Trustee Bob Slade said.
“That didn’t happen,” he said, adding that the foreclosure sales for the Roaring Fork Lodge and Mountain Aire properties were expected to go on as scheduled at 10 a.m. Wednesday.
“We are seeing a lot more development properties go into foreclosure, and a lot more dollar volume,” Slade said.
Also headed toward foreclosure is Related WestPac’s property at Cattle Creek, which had most recently planned for more than 1,000 houses in the so-called River Bend development. The note on that property is nearly $12.5 million, according to county records. The public auction is currently set for Dec. 23.
Slade said a typical year in Garfield County involves about 100 foreclosures, where this year his office has processed 350 foreclosures to date.
“Most of them still seem to be residential properties,” he said. “But the bigger properties are starting to come through.”
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