Base Village Metro District Bond Sees Interest Rate Spike, AT
Controversy surrounds the motive behind decision of former owner of Base Village, Related Westpac.
SNOWMASS VILLAGE — Interest rates on $32.6 million in bonds two Base Village metro districts issued in July 2008 have shot up to 10 percent from 1 percent as a result of actions taken recently by the Related Cos., the former owner and developer of the project at the base of the Snowmass ski area. James DeFrancia, an executive at Destination Snowmass Services, which was appointed as receiver for the financially struggling project, said the increase in the bond interest rates could force Base Village property owners in 10 years to pay off about $65 million in debt, not $32.6 million. “They are causing the metro district and owners considerable harm,” DeFrancia said of Related. “I don’t think it is very ethical business behavior.”
By Brent Gardner-Smith, AT, Jan, 15, 2012
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