Saturday, August 17, 2019

Muellers settle obligations with Mt. CB for nearly $3 million

North Village, Prospect properties under contract

By Katherine Nettles

Two different and very sizable real estate holdings belonging to former Crested Butte Mountain Resort (CBMR) owners, the Mueller family, are under contract with new buyers and the family is tying up loose ends with the town of Mt. Crested Butte in the process. As the town prepares for a big shift in ownership and what will likely be new Planned Unit Development (PUDs), the Town Council unanimously passed an amendment to the original 2002 Annexation and Development Agreement on Tuesday, March 19 regarding the Muellers past, present and future obligations related to both the North Village and Prospect properties.

Michael Kraatz, vice president of Prospect Development Company is representing the Muellers through their real estate corporations, Triple Peaks INC., Crested Butte Land Holdings (CBLH), LLC and North Village Reserve, INC, collectively referred to as the developer. Kraatz has worked with the family in this capacity for 35 years, he said. The properties have been listed for sale for years, and the parcels add up to 336 acres, with North Village comprised of approximately 158 acres and Prospect at 178 acres. The Prospect acreage includes both conservation open space and development parcels, and is part of the overall 400-plus acre of the development.

The new amendment outlines several provisions of the original Annexation Agreement that have already been completed, such as the developer’s obligation to construct a meeting facility for the town and others such as conveyance of land, metropolitan districts, residential density, protective covenants and zoning and subdivision considerations.   

“This is kind of a checklist to memorialize those things that have been met to date, for instance the conference center at Mountaineer Square. There are a number of things that have already been addressed or been met,” said Kraatz.

The developer will pay the town of Mt. Crested Butte a total of $2,950,000 to release it from its obligation to install one finished softball field, with associated facilities and improvements, as well as contribute financially to improvements required for Gothic Road and the Bike and Recreation Path, with associated improvements and requirements. While the town has no current plans to install a ball field, according to town manager Joe Fitzpatrick, the funds are intended to cover the potential costs of one, as well as to reimburse the town for a portion of the costs associated with completed Gothic Road improvements and recreation path extensions from Marcellina Lane that will eventually go up to Prospect Drive. Two years ago, the town did the segment from Marcellina to just past the town hall and will eventually finish the segment up to Prospect Drive.

“Some of the money has already been spent, so those are hard, real numbers. And the rest of it was an estimate produced by the town’s engineer,” said Kraatz.

“Then there are other [obligations] to come, and to continue indefinitely,” said Kraatz. These include the developer’s upkeep of all covenants, Prospect home design guidelines, skier access, maintaining the maximum density to 1,800 units, maintaining wetlands and Open Space, and other best management practices related to mapping, transportation and the Mt. Crested Butte Water and Sanitation District.

“Those will continue in perpetuity,” said Kraatz.

The Mueller family will pay the town $2,950,000.00 from the sale of the CBLH Property made from the closing escrow, no later than July 31, 2019. 

“I think it’s a good deal for the town and a good deal for Crested Butte Land Holdings,” said Fitzpatrick.

The town expects new major PUD applications once the properties are sold. Neither the town nor Kraatz say they are at liberty to disclose the identity of the buyers for either parcel until the sales are complete.

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