The man behind the Mining Exchange, a downtown Wyndham Grand Hotel due to open this spring, stands to lose more than $200,000 he invested in a LandCo development-related project on South Union Boulevard unless he rescues it from foreclosure.
First Citizens Bank and Trust filed a notice of election and demand against The Ridge at Broadmoor View LLC. on Feb. 9. Raymond Marshall, who is expected to be charged in the Fourth Judicial Circuit Court today for allegedly stealing funds from three projects and laundering the money, signed the note for $1.82 million in February of 2007, according to El Paso County Public Trustee Tom Mowle.
There was $1.495 million remaining on the loan as of Feb. 1, according to trustee records.
Perry Sanders, who is remodeling and refurbishing the historic downtown Mining Exchange building at Nevada Avenue and Pikes Peak Boulevard, is listed as an owner on the property. He did not borrow the money.
“I’m not on any notes,” Sanders said. “I have cash in the project.”
The Ridge at Broadmoor View was going to be a mixed-use commercial and residential project on South Union Boulevard, Sanders said.
“It had great views of Cheyenne Mountain,” Sanders said. “I remember thinking it was going to be a cool project.”
He sold a piece of out-of-state property and transferred the money into the Ridge at Broadmoor View project because he had hopes that it would succeed. Sanders said he remembered his $210,000 investment bought him less than a 10 percent share in the project.
“This was before there were any LandCo problems,” Sanders said.
He bought into it in February of 2008.
He said he knew the loan went into default, but had not heard that the official foreclosure process had started. He said he would talk to the bank and see if he could salvage any of his investment. He will have the option to buy the debt from the bank, Mowle said.
Sanders said he knew it wouldn’t be worth the almost $1.5 million owed and he wouldn’t pay that, but that there might still be hope for the vision behind the project.
“I’m going to go take a look at the crazy project,” Sanders said. “A lot of things made sense about it back then. I’m going to go back and see if any of it still makes sense. It could still have a happy ending.”
If Sanders does rescue the project from foreclosure, he said he would handle it on his own without any partners. The timing could be right for Sanders to take up the torch. His Mining Exchange Hotel is now taking group reservations and is expected to be open this spring and complete by the end of the year.
Sanders said he didn’t know if it would make sense to get involved with the Ridge at Broadmoor View, but that he felt it was worth considering.
“I’ve got over $200,000 invested in it,” he said. “I’m unfortunately not so wealthy that that sort of money doesn’t matter to me. It does matter to me.”