Developers face foreclosure on pending Glenwood project
The developers of a proposed hotel, condominium development and conference center in Glenwood Springs are facing a foreclosure action as their project heads for review by the City Council.
Alpine Bank is seeking a court order authorizing it to sell the proposed Roaring Fork Lodge property and a second property owned by the company. The bank says in court filings that Roaring Fork Lodge LLC has defaulted on a loan of about $3.3 million.
Developers are scheduled to appear before City Council tonight as they seek approval of a revised version of the project. It includes a downsized building with more hotel rooms and a smaller conference center than a previously approved version.
Terry Claassen, one of the project’s developers, declined to comment on the foreclosure action. Andrew McGregor, the city’s community development director, said the action doesn’t prevent Roaring Fork Lodge LLC from proceeding to seek project approval as long as it remains the land’s owner.
“The financing is none of our business,” he said.
He said Alpine Bank might be anxious to see the developers get the approval as well.
“I would assume that’s not at cross purposes,” he said.
The foreclosure action also applies to four units of the nearby River’s Edge Condominiums. The developer bought the units with the intention of using them to comply with a city affordable-housing requirement as part of the project.
The project is planned for a property that was home to a vacant building that developers have demolished. Construction was put on hold early last year because of high building costs at the time.
Area construction costs have fallen since then. Also, McGregor said the reduced size of the revised project should bring down costs, and developers are planning to make use of modular construction.
Modular construction would involve building segments off site and installing them with a crane.The new proposal includes 106 hotel rooms, 40 condos and a 4,600 square-foot conference center. City tourism advocates had praised the project for the larger center that originally had been proposed, but McGregor said the smaller one would remain one of the biggest in town, and it may be more in keeping with market demand for Glenwood Springs.
He said he thinks neighbors are happy that the project now entails a smaller building that is pulled away from the Roaring Fork River and preserves their riverbank views.