“These people bought into a project with a metro district that’s seriously in trouble,” Reiser said. “It was designed for 600-plus units, and there’s never going to be that many. It has almost $50 million in bonds that need to be serviced."
SNOWMASS REAL ESTATE – A new lawsuit filed by 24 Snowmass Base Village condominium owners claims developers sold them smaller-than advertised units and left them with an insolvent metro district.Filed Wednesday in Pitkin County District Court, the lawsuit concerns units in the Capitol Peak Lodge development and lists Related Companies, the Aspen Skiing Co., Intrawest and Pat Smith, as defendants, among others. It is similar to a suit brought by the buyers of 62 condos at the Viceroy in Snowmass Village. A judge in March ruled their contracts could be nixed and they can get nearly $14 million in down payments returned. An attorney in that case, Michael Reiser, filed the latest lawsuit. Capitol Peak condos are 8 to 10 percent smaller than what was advertised, Reiser said, similar to figures in the Viceroy case.The Capitol Peak suit also takes aim at Base Village’s metro district, which it calls “functionally insolvent.” “The defendants … misrepresented and/or concealed material facts in violation of [the Interstate Land Sales Full Disclosure Act] regarding special taxes or mill levies imposed on all purchasers of Capitol Peak,” the filing says.
BY Chad Abraham, July 2, 2011 ADN
View of Capitol Peak condominiums at the ski-lift base of Snowmass Base Village