Contractor and bank foreclose on floundering fitness club

A big redevelopment project at the Aspen Club was meant to service tourists in Colorado, but financial trouble has prompted multiple contractors and the lender to foreclose on the property. FirstBank, which lent the club’s owner $45 million, filed the first foreclosure action at the Pitkin County Treasurer’s Office. According to the lender, the property owner owes $30 million. The general contractor, PCL Construction Services Inc., took similar action soon thereafter in Pitkin County District Court. The company activated its mechanic’s lien on the property with the hope of recouping $19 million.

Although the contractor asserted its property claim after the bank, the contractor might have the first chance to collect the money from a sale. A lawyer representing lien holders said that if the construction company broke ground before the loan went through, then its claim could have top priority. The litigation from PCL also charges the defendant with breach of contract.

The contractor has halted work on the property, except for winterizing tasks. The redevelopment project called for a remodeling of the club and spa building as well the building of a lodge, 20 timeshares, townhouses, and apartments. In previous statements, the owner of the club has said that he will pay everybody.

A contractor who has gone unpaid for a construction project for condominiums, apartments or offices might want legal guidance when pursuing payment. An attorney could review contracts and liens to determine appropriate strategies for financial recovery. Negotiations with the debtor might resolve the issue, but the filing of court papers typically accompanies out-of-court discussions about a debt. After assembling evidence, such as contracts and invoices, a lawyer could prepare a lawsuit.

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