County sees three development foreclosure notices | PostIndependent.com
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County sees three development foreclosure notices

John Gardnerjgardner@postindependent.comGlenwood Springs, CO Colorado

SILT, Colorado Ripples from the nations struggling housing market have made their way to Garfield County. Thursday a private lending group holding a second mortgage for $1.7 million on the Mira Loma Subdivision in Silt Mesa filed for foreclosure, according to Garfield County Public Trustee Bob Slade.President of G&M Investments LLC Glenn Penny, who is the lead investor for the development, released a statement saying that while the lenders have filed for foreclosure, he is working to secure the future of the development.It is a difficult time to be operating in the real estate development field but the pending foreclosure on the Mira Loma Subdivision has given the community an opportunity to revitalize itself, Penny stated.Capital is being raised to repay the lenders and launch a revised plan for the neighborhood, the statement continued.Penny said the subdivision has already been renamed, Iron Horse Mesa, and is still selling properties for qualified buyers. Mira Loma was planned for 210 lots. In June, Mira Loma was the only one of three residential developments in Silt to have active building permits, Silt Town Administrator Betsy Suerth said in June, but there were less than 10.The Town of Silt has seen a 60 to 65 percent reduction in building permits from 2007-2008, Suerth said Thursday.There is only about one-third of the total amount of permits issued this year compared to 2007 for new, single family residences, she said.According to Penny, Mira Loma currently has two homes that have sold, two more that are ready to occupy, another under contract, and three homes under construction that are available for buyers.Realtor Glen Ault, of Aspen Sothebys Realty who represents Mira Loma, said that low sales and the initial developer for the project, Ed Sutton of Sutton Western Corporation, pulling out of the project around August contributed to the current situation. However, Ault said that this is not the end of this subdivision.Its just a matter of trying to sell what weve got and hope the economy comes back and things start selling better, Ault said.Slade said its surprising to see foreclosures on development loans.These are major, major dollar foreclosures. Not on residence, but for developments, Slade said. That means that the developers and builders are in trouble and are having problems, too.In December, Slade also received foreclosure notices on another development southeast of Rifle on County Road 319. Those foreclosures are neighboring properties with the same owner, according to Slade, and are undeveloped land currently.The first parcel of land is a 36-acre plot owned by 319 Water Company. The foreclosure amount recorded by Slade is $550,000.The neighboring property is a 50-acre plot owned by Mamm Creek Commons. The foreclosure amount is $1.3 million.We had two foreclosures going on this. I dont think they overlap, but they are right next to each other and its the same group of people, Slade said.Three other Garfield County subdivisions, Eagle Ridge Townhomes and Spring Valley Ranch, two developments in Spring Valley, along with Lexie Meadows, a 37-lot project west of Silt, have all received one-year extensions in implementing their preliminary plans for the subdivisions because of the recent housing market woes.Earlier in the year, the Stillwater Ranch Subdivision, a 1,300 residential-unit development south of the Colorado River in Silt, went under after more than a decade of planning. The subdivision failed because the prospective developer SWC LLC, was unable to purchase the property from the Texas land owner.


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