Aspen Land Fund II LLC, developer of the long planned hotel-condo development at the base of Aspen Mountain Lift 1A’s base – the Lodge at Aspen Mountain – argues land has more value than bank suggests
ASPEN REAL ESTATE — The development company seeking approval to build a hotel at the base of Aspen Mountain’s Lift 1A is disputing its lender’s claim that the property is losing value and therefore foreclosure proceedings should resume.Aspen Land Fund II LLC filed a response last week to Alpine Bank’s earlier motion to dismiss the firm’s Chapter 11 bankruptcy case.Alpine Bank claimed in federal bankruptcy documents filed in Denver that it is not adequately protected because the value of Aspen Land Fund’s property on South Aspen Street isn’t worth the amount owed.The bank obtained an appraisal of the vacant property, which as of Nov. 20 lists its value at $19 million, assuming current land-use approvals. That property is being used as collateral for the company’s $22.5 million promissory note to Alpine Bank.Aspen Land Fund entered into a business loan agreement with the bank in March 2008 to fund the development of either 17 townhomes, which have already been approved, or a hotel, which is currently going through the city’s approval process.
By Carolyn Sackariason, Jan, 27, 2010 Aspen Times
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