Update on Pending Sale of Lodge and Spa at Cordillera: August 10

Update on Pending Sale of Lodge and Spa at Cordillera

We know that our reports to date have not provided as much information as some desire. We understand that is very frustrating, but it is the unfortunate result of being involved in a dispute that will likely end up in litigation. All emails could be subject to discovery in litigation. Also, as you know, some in the community will likely share whatever they receive with CCG. Therefore, we must all be very careful about what we say publicly and certainly do not want to disclose confidential strategy.

These concerns are not without merit. For background:

In May 2016, Concerted Care Group Management (CCG) requested the Eagle County Director of Community Development (Director) provide an interpretation regarding certain proposed uses allowed on the Lodge and Village Center Parcels in the Cordillera PUD. The Director issued an interpretation dated June 1, 2016 determining that the uses proposed by CCG represented a use-by-right in the Cordillera PUD (the Original Interpretation). The CPOA and CMD formally appealed that interpretation.

As a result of issues raised in the CPOA and CMD appeal, Behringer Harvard Cordillera, LLC (Behringer Harvard) sent a letter to the Director on July 7, 2016 stating that the CCG's request for interpretation was made on behalf of the Behringer Harvard (who currently owns the Lodge and Village Center Parcels).

In response, on July 7, 2016, the Director rescinded the original interpretation, which had been provided in response to CCG's request, and issued a new interpretation in response to Behringer Harvard's request (the Current Interpretation). The current interpretation is identical to the original interpretation-namely, the Director reaffirmed his opinion that the proposed uses represent use-by-rights on the Lodge and Village Center Parcels.

Accordingly, the CPOA and CMD submitted the attached appeal of the Current Determination (the Current Appeal). The current appeal affirms and incorporates the grounds set forth in the original appeal.

The Eagle County Commissioners will hold a public hearing on the current appeal on September 20, 2016.

The CPOA/CMD have engaged attorneys and experts to understand the issues presented and provide arguments to the County Commissioners why the proposed uses are not permitted in the Cordillera PUD. The Eagle County Land Use Regulations require exhibits, testimony and evidence to be provided to the County Commissioners 10 days prior to the scheduled hearing. Accordingly, the CPOA/CMD Legal Committee, its attorneys and its experts have been working diligently to prepare the exhibits, testimony and other evidence that will be presented in support of the Current Appeal.

The CPOA/CMD will release a comprehensive update on September 10, 2016 that contains all of the evidence submitted to the County Commissioners. While we would like to share that evidence sooner, the previous actions of CCG and Behringer Harvard leave no doubt that they are monitoring the CPOA/CMD's activities and arguments. Therefore, it isn't prudent for the CPOA/CMD to set forth its strategy in greater detail until such time as all arguments and evidence are presented to the County Commissioners.

Finally, the community should be aware that a resident, Michele Larson, recently filed an Amended Complaint in Eagle County District Court challenging the validity of the interpretation issued by the Director and seeking to enjoin any action from being taken on the basis of that interpretation. A copy of the Amended Complaint is also attached.