County Treasurer Janice Stout confirmed on Wednesday morning that she had received an email indicating that bankruptcy proceedings are underway for development firm Lot 129, LLC and West Galena Holdings, which are both owned by Aaron Honigman.
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 Feb. 15. The total amount of outstanding principal, which was a pre-construction bridge loan, is $50 million.
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.
By filing for bankruptcy just before the date of foreclosure, Stout must impose a week-to-week stay of the foreclosure until she receives notification from the bankruptcy court to lift the stay. By filing for bankruptcy, Honigman buys himself more time.
“Once the bankruptcy stay has been lifted by the court, the state statute says that I must set a new foreclosure date and that has to be 29 to 49 days after I receive the notice,” Stout said. “Then I have to mail the amended notice with the new scheduled date, which I only have to publish one time.”
The Rosewood Telluride was one of four major hotel projects announced for development with much fanfare in 2006 in Mountain Village; of them, only the Capella Telluride is under construction. It is slated to open next winter.
Also in a state of suspension in Mountain Village are a proposed renovation and expansion of The Peaks and the Silverline project, planned for the gondola base.