May 17, 2012

SandBoxBlogs: Snowmass Sun "Questions pile up about Base Village"

Update on May 19, 2012:

How much is Pat Smith of Related Cos and the same Pat Smith as a human being, "worth"? 

"Worth" more than say....Scott DeGraff?

"Worth" more than say....Tom DiVenere? 

How important is it to track the real money path? 

Not just the surface money. 

But every dime of late fees, charges, interest fluctuations as against cash flow, cash flow that is literally hijacked for years but then ending up right back at the same point of ownership as there was prior to the hijacking?

The money path of the collateral damage to everyone involved, including the communities, workers, vendors, suppliers and every dotted i and crossed t in-between?

Whose job is it?  The job of figuring out if harm has been done to someone with the former power of Pat Smith and all he touches?  The job of a reporter?  The job of voices in the shadows?  Or is it the duty of authorities to find out the real money trail and what happened?

Who decides whose job it is?  Is there really anyone in control of the laws?  Or do we even have law that covers this growing pattern of corrosive and systemic financial destruction of a powerful entity?

Personally, I am very sorry to hear Pat Smith is not involved in the present rebirth of Base Village.

After all, a person of such talent, vision and moxy to create such a wonderful concept and vision for a community he cares for and who now has a birdseye view from the sidelines of how far off course having not an authority in sight or his voice being listened to for years, Snowmass Village and the world of Aspen, Colorado really is.  It is a loss to not have Smith on board and should be of serious concern that success is going to be possible at all in the end.

I personally hope that view from the sidelines, as he watches the fruits of giving everyone what they asked for as an outcome come to pass, is a view that eventually holds the success of his original creation.

The best absolution, vindication and protection for those one leads through crisis is to forgive and live a happy life.

Here's to the outrageously profitable success (eventually) of the Base Village project.

On a side note, I also personally think Johnny Boyd's idea of an ultra high end casino (think Monte Carlo) is a fantastic idea...
Original post on 5/17/12:
I'm having a very busy day today and will come back to this post with some commentary later on today or tomorrow.

 Brent Gardner-Smith:
"SNOWMASS VILLAGE — When Related Cos. announced May 1 that it had reached an agreement to buy its Base Village back from four European banks and settle ongoing litigation with those banks, executives at the private real estate company characteristically left many questions unanswered.

But after talking with a number of sources close to the deal, a few blanks can be filled in.

Is Related alone in the deal to acquire Base Village?

Yes, and no.

There are no other development partners besides Related, but there is a new financial lender involved who has not been disclosed, according to Snowmass Village Town Manager Russ Forrest.

Forrest was briefed on the deal earlier this month along with Snowmass Village Mayor Bill Boineau by representatives from Related, the banking consortium and Lowe Enterprises, which has been managing the asset for the lenders during and after foreclosure.

Pat Smith has no role in the new deal for Base Village, according to Forrest.

Smith, a developer from California, brought Related to Snowmass Village. He served as the first local point person for Related WestPac, the joint venture entity formed by Smith and Related Cos. to buy and develop Base Village and redevelop a long list of other property in Snowmass as part of a $2 billion project. Smith did not respond to requests for comment.

Aspen Skiing Co. is not in the deal either.

“We are not a financial partner with Related in any way on the Base Village project,” said Skico spokesman Jeff Hanle.......

.......The $96 million figure, however, might have been put forward by the banks for tax purposes, and might not have been the banks' desired selling price.

Related originally took out a $520 million acquisition and construction loan from Hypo Real Estate Capital Corp. and other banks in 2007, which was enough to build most, but not all, of the project.

In early 2009, Related defaulted on its loan package and was sued by Hypo Real Estate Capital on behalf of the lending consortium.

By 2011, the banks said Related owed them $399 million in principal, $90 million in interest, $3 million in attorney's fees, $2.7 million to pay for the receivership during foreclosure and other expenses. In all, the banks were seeking $507 million from Related.

In a foreclosure sale in November 2011, the banks put forward a credit bid of $138 million to take possession of the asset.

Related had earlier countersued the banks for failing to keep lending it money to build the project. The company told the court it had lost $213 million in investment funds in Base Village, as well as the chance to make $193 million in profits on the sale of $1.3 billion worth of real estate.

Once the deal closes, the transaction price will be disclosed, but it is not clear if the transaction price will be a clear indicator of the true market value of the project, as it might have been had a new developer stepped in to buy the project...."  (Read more?  Click title)

"Unapologetic pursuit and tracking of patterns within the news others make since 2010."

1 comment:

SandBoxBlogs said...

Post is now updated as of Saturday morning.