The 21,500-acre Banning Lewis Ranch planned housing development on the east side of Colorado Springs is slated to sell today in a Delaware bankruptcy auction.
Attorneys representing the Banning Lewis management company and the City of Colorado Springs said they were waiting for the auction to start this morning.
The swath of land between Woodmen Road and Fountain Boulevard on the north and south and Marksheffel Road and Meridian Road on the west and east has been planned for residential development for many years.
It was annexed into the city in 1988 and has remained mostly undeveloped.
Twenty-eight creditors are listed in the Bankruptcy filing against the Banning Lewis management company. Among them are Colorado Springs Utilities and the City of Colorado Springs.
“The City’s interest is in protecting the 1988 annexation agreement and agreements that flow from it all as approved by different City Councils over the years,” Colorado Springs City Attorney Patricia Kelly wrote in an e-mail before the auction started.
Bids on 18,000 undeveloped acres of the ranch and undeveloped portions of 2,400 acres on the north end of the ranch were accepted up until 10 a.m. Thursday. The bids were not made public.
A hearing on the bankruptcy filing is scheduled in a Delaware court Wednesday afternoon following today’s auction.