The lender, a real estate investment trust, filed for foreclosure against Lot 129, LLC and West Galena Holdings with the San Miguel County Clerk and Recorder on February 15. The total amount of outstanding principal debt is $50 million.
That loan was a pre-construction bridge loan, Aaron Honigman of West Galena Holdings said in a letter to the Mountain Village Town Council this week.
“The Mountain Village/Telluride region may be small in size and population, but it certainly is prone to an inordinate share of unfounded rumors and innuendos that have little basis in fact,” Honigman wrote to council. “I wanted to dispel rumors suggesting that the Rosewood Telluride Hotel and Residences Condominiums is either dead, for sale and/or not moving forward.”
T.D. Smith of the Telluride Real Estate Corp., who has handled sales and marketing for the project, said on Tuesday that Honigman “is dedicated to this project and is confident that appropriate financing will allow the project to move forward in the near future, despite a very tough credit market.”
The planned 450,000 square-foot mixed use development, which was approved by town council in March 2007, spans over two large lots and includes 75 hotel rooms, 67 condos, 17 employee dorms, and five employee apartments and areas for commercial/retail development. It is located on the north and south side of Country Club Drive, immediately northwest of The Peaks.
“The project has assembled some of the world’s finest architects, planners, interior designers and other hospitality consultants,” Smith said, “making it an attractive asset worthy of funding.”
The project hit a snag in August when council told the developer that for construction to begin a dangerous curve on Country Club Drive had to be widened, and myriad other agreements with the TSG Ski and Golf Company concerning easements benefitting the project needed to be documented. Those issues have now been resolved and the documents have been signed enabling construction to begin, Honigman said in his letter to council.
Rosewood is one of several luxury hotels that were anticipated to begin construction in Mountain Village last year. The others include a renovation of The Peaks, the Silverline and the Capella. Of those, only the Capella is actually underway, while Silverline has been reconceived as a condominium project.