OCR Text |
Show A-14 Sat/Sun/Mon/Tues, February 8-11, 2020 The Park Record LIVE LUXURY Your best life begins with a home that inspires you. A complex web of contracts serve to keep the lights on at ski resort Foreclosure has prompted Granby Ranch dealmaking AMY GOLDEN Sky-Hi News KELLY ROGERS 435.640.7600 Global Real Estate Advisor Kelly@LuxuryParkCityRealEstate.com www.LuxuryParkCityRealEstate.com ©MMXVIII Sotheby’s International Realty Affiliates, Inc. All Rights Reserved. Sotheby’s International Realty® is a licensed trademark to Sotheby’s International Realty Affiliates, Inc. An Equal Opportunity Company. Each Office Is Independently Owned And Operated. Copyright© Summit Sotheby’s International Realty 2018. Flowers Valentine FOR YOUR Flower Barn at Park City Nursery Pre-order Now & Schedule Delivery Call us: 435-649-1363 Order online: www.parkcitynursery.com GRANBY, Colo. – Granby Ranch is facing foreclosure, but the ski resort and other amenities remain in full swing. Some interesting contracts are the reason why. Granby Realty Holdings, the land-owning arm of Granby Ranch, owns all property, including the undeveloped land and amenities associated with the resort. But the amenities, managed by Granby Ranch Amenities, have not been placed in the hands of a receiver because of a lease with Headwaters Metro District. The Sky-Hi News obtained documents relating to a lease purchase agreement, the Headwaters Metro District and a management agreement, which together show a framework that should ensure the amenities remain in place. “The golf course and ski area owned by Granby Realty Holdings remain governed by the existing lease purchase agreement with the Headwaters Metro District and their operations will continue in the ordinary course,” court appointed receiver Randel Lewis said in an email to Granby Mayor Paul Chavoustie. Keeping track of all the different entities can get confusing. Granby Realty Holdings owns both the undeveloped land in the Granby Ranch area and the part of the resort often referred to as the amenities, which include the ski resort and golf course. Headwaters Metropolitan District is a quasi-municipal corporation and political subdivision in Granby Ranch. It is referred to as the “service district” and remains responsible for the infrastructure and ongoing operations of the entire Granby Ranch communi- AMY GOLDEN/SKY-HI NEWS Granby Ranch faces foreclosure, but resort amenities remain in full swing due to some interesting arrangements with the government authority that oversees the land it occupies. ty, including the amenities it rents through a lease purchase agreement. Granby Ranch Amenities is a separate entity from Granby Realty Holdings that manages operations of the amenities through a contract with Headwaters. However, the two had the same owner until recently. Marise Cipriani owned Granby Realty Holdings before the foreclosure filing, and she continues to own Granby Ranch Amenities. The lease purchase agreement in which Granby Realty Holdings rents the ski and golf amenities to Headwaters Metro District will eventually allow Headwaters to purchase these amenities from Granby Realty Holdings when the purchase price is reached through a fee structure. According to the lease purchase agreement, Granby Realty’s lender, Granby Prentice, is subject to the agreement, which means this lease will likely remain in place. Who is Granby Prentice? The question of who exactly Granby Prentice is remains a question. Granby Prentice’s authorized agent in the filing, Phil Russick, has not responded to emails requesting comment. Granby Prentice is a Delaware based company, but in the foreclosure filing lists its address in Los Angeles. Granby Prentice will be partnering with Pacific Coast Capital Partners, a real estate finance and investment firm, to manage the properties. On its website, Pacific Coast Capital Partners lists the same Los Angeles address as Granby Prentice. The debt assumed by Granby Realty Holdings in 2005 was taken over by Gran- cycle Re PARK CITY U tah by Prentice from Redwood Capital Finance Company in April 2016, just a month after Granby Prentice was incorporated. Redwood, also a Delaware based company, lists a now-cancelled California branch of the company with the same Los Angeles address as the two other companies. The Headwaters To understand the foreclosure proceedings at Granby Ranch, it is important to understand the various metropolitan districts at work in the area. A metro district is a special tax district, like a fire or water district, that serves to fill a gap in the services provided by a county or municipal government. A metro district is a type of special district approved by the local government, and the districts are often controlled by developers. The Granby Ranch community is made of 10 separate metro districts: Headwaters, SolVista, Granby Ranch and Granby Ranch Districts 2-8. While Headwaters is the service district, managing infrastructure for the Granby Ranch area, the other districts are known as “financing districts” and fund these costs. The Headwaters board is a tightly controlled group managed by both sides of the Granby Ranch corporate structure. Its chair is Lance Badger, vice president of Real Estate Development for Granby Realty Holdings. The only other person on the Headwaters board is Dustin Lombard, the chief financial officer of Granby Ranch. The metro district’s boundary as of 2018 was roughly 9.16 acres or about 400,000 square feet, including a 7.34 THANK YOU TO OUR 2019 BIN SPONSORS WE RECYCLE OVER 3.7 MILLION POUNDS ANNUALLY THANKS TO YOU! If you are interested in becoming a bin sponsor or learning more about the program, contact Eric at outreach@recycleutah.org Bin Sponsorship is an important part of Recycle Utahʼs relationship with the local business community and is a great way to show your support! This business is also a Recycle Utah Green Business acre parcel north of Fraser River, a 1.84 acre posting parcel near the intersection of County Road 894 and Ten Mile Road, a portion of Village Road and one condo: Base Camp One Condominium Unit 400-R. The Nov. 5 election for Headwaters Metro, which maintains operations for the entire Granby Ranch community, had three voters. The lease Headwaters leases property from Granby Realty Holdings, including the ski area and golf course that are often referred to as the amenities. Signed in 2006 and revised in 2012, the lease purchase agreement automatically renews for 49 additional one-year terms. Rent is paid through amenity fees. Property owners in the Granby Ranch metro districts pay a one-time fee of $10,000 when they purchase their homes. This pool of amenity fees is to be used by Headwaters to finance the eventual purchase of the amenities. There are a few ways for Headwaters to purchase the amenities. Headwaters can pay the full purchase price through amenity fees, pay the full purchase price from sources other than amenity fees with Granby Realty’s consent or it can pay with all amenity fees collectable under the agreement if the purchase price is greater than the total fees to be collected. The appraised value of the ski area, golf area and Base Camp Lodge — not including the third floor, which is not involved in the lease — was $18.9 million in the amended lease purchase agreement. To read the rest of this story, visit Sky-Hi News, a sister paper of The Park Record, at skyhinews.com. Local Park City news every Wednesday and Saturday Call 435-649-9014 to subscribe today! |