ASPEN SNOWMASS REAL ESTATE — The cost of constructing the Viceroy Hotel in Snowmass Village was expected to exceed the revenue the lodge generated, while the second phase of the project was projected to generate a net profit of approximately $100 million, according to allegations in a lawsuit.The second project was never completed, however, after lenders reneged on their $520 commitment to finance the Base Village project in Snowmass.The lawsuit was filed Tuesday by Base Village Owner LLC, which is suing four lenders on the incomplete Snowmass project. (The Aspen Times erroneously reported Thursday that New York-based Related Co. is suing the lenders; in fact, Related is part of Base Village Owner, which also includes Related WestPac, Pat Smith and others.)The suits seeks damages of $406 million — $213 million for Base Village Owner’s equity investment, and about $194 million in projected profits had the project been completed.
By Rick Carroll, August 13, 2010 Aspen Times
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