Orvis Shorefox faces judicial foreclosure on its Granby development
November 12, 2008
The Orvis Shorefox development west of Granby, Colorado, is attempting to stave off judicial foreclosure.
The civil case has been making its way through Grand County District Court since February, according to court documents.
CNL Financial Group Inc. of Florida ” its Web site says it’s one of the nation’s largest privately held real estate investment and development companies ” lent $40 million to the Shorefox project.
The loan originated in March 2006. Two years later in the original complaint filed Feb. 21, 2008, the company sought to foreclose on Shorefox property.
“Shorefox has failed and refuses to pay the note,” CNL alleges in court papers.
“We’re working through to rectify the situation,” said General Manager Steve Bromberg on behalf of Shorefox.
“Vendors will be paid,” he said.
Joining in the complaint are several principal lien-holders to the development. One plaintiff, American Civil Constructors Inc., a multi-state firm with a hub in Denver, has a lien on the property for $2.3 million.
It’s estimated liens against Shorefox total at least $7 million.
CNL Financial is seeking the principal loan balance in the amount of $40 million, plus interest, legal fees and costs. As of Nov. 12, interest outstanding on the loan totaled $884,333, court documents say.
Bromberg says the development got caught in hard economic times. In February, Shorefox developers said the project was undergoing recapitalization, or “a change in financing.”
“It is not possible to set a date when the process will be complete; however, we believe (recapitalization) will occur by the time the snow melts and will allow completion of the infrastructure during 2008,” stated a press release at that time.
Bromberg confirmed Wednesday that the sporting goods company “Orvis” is still involved with the project, but not as a lender. County records list five other deeds of trust related to Shorefox, with amounts withheld.
Orvis Shorefox LLC is the developer of the 1,553-acre Granby development northwest of the intersection of U.S. highways 34 and 40 on a portion of Horn Ranch encompassing a stretch of the Colorado River .
It remains uncertain whether project development will resume for the planned 50,000 square feet of commercial space that includes an Orvis retail store, one hotel, a gated high-end community and a golf course.
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