Granby: Shorefox lender wins $53.8 million judgment in court
July 23, 2009
A $21 million foreclosure at the Orvis Shorefox development in Granby involving some of the development’s water rights went back to the lender, Aspen Shorefox LLC, a Las Vegas, Nev. company with Howard S. Cohen listed as the registered agent with the Nevada Secretary of State’s office.
The property – which went up for sale during a June 12 Public Trustee sale – was conveyed to Aspen Shorefox on July 6.
Yet $18 million-worth out of the total indebtedness of Orvis Shorefox Development, LLC, was not bid on by Aspen Shorefox, according to Grand County Public Trustee Christina Whitmer.
Delaware lender CNL Income Partners LP is foreclosing on two deeds of trust, an amount of $40 million, involving Shorefox property.
According to Whitmer, the lender CNL is nearing the end of a ten-day period to get corrected documents to the Public Trustees office before that office files the election and demand, opening the $40 million foreclosure. The office would then set the sale date for the Public Trustee sale, Whitmer said.
In District Court on June 14, Judge Mary Hoak entered a partial summary judgment ruling in favor of lender CNL for $53.8 million, the sum of a $40 million construction loan granted to Shorefox Development, LLC. on March 8, 2006 plus interest, exit fees, late charges, default interest and amounts expended to pay off mechanics liens against the property, according to court documents. CNL initiated a foreclosure action against Shorefox Development in March of 2008.
In addition to the $53.8 million judgment, on June 25, CNL filed a motion to recoup attorney fees in the amount of $23,500.
According to the documents, it appears CNL was awarded its first claim of relief involving the note, but withdrew a second and third claim to foreclose on the property in the courts, opting for the public trustee to process the foreclosure action.
Orvis Shorefox developers purchased the property for $5.2 million in 2003, promising signature golf, 50,000 square-feet of commercial, exclusive riverside lots and a high-end gated community along the Colorado River on former Horn Ranch property annexed into the Town of Granby.
Development ceased before the Town of Granby granted acceptance of infrastructure.
As part of the annexation agreement, Shorefox developers provided a security to the town in the amount of $84,000 for rehabilitation costs of the “Orvis Shorefox Lake Complex,” or five ponds plus a drainage swale.
The week before last, one of the ponds breached, causing excess sediment to spill into the Colorado River, which caused the town of Hot Sulphur Springs to shut down its water system and purchase water from the town of Granby.
– Tonya Bina can be reached at 970-887-3334 ext. 19603 or e-mail firstname.lastname@example.org.