WASHINGTON, Jan. 21, 2017 /PRNewswire/ -- Residents of Cordillera have filed a class action suit in Federal Court to stop the sale of the Cordillera Lodge and Spa by Behringer Harvard, with claimed damages in excess of $100MM.
Behringer Harvard has an agreement to sell the Cordillera Lodge and Spa in Edwards CO to Concerted Care Group (CCG) of Baltimore. Behringer Harvard's REIT I Fund is the owner of this property. The annual meeting and the request for approval of a liquidation of this Fund is scheduled for Monday, January 23rd in Dallas TX at BH offices.
The suit claims that BH made promises in writing to the Cordillera Property Owners Association (CPOA) and Eagle County in 2009 in order to gain approval to an amended Planned Unit Development (PUD) document, which controls land use in the Cordillera community. The lawsuit claims that BH promised that the amended PUD contained no new uses, and was not a substantive change to the existing PUD. It was merely to "clean up language" and combine two parcels for development. The lawsuit claims that BH further promised that its proposed modification "will not have any effect on adjacent property owners because it does not change the overall uses."
BH is now claiming that the amended PUD allows it to completely eliminate the Lodge, and wall off the property from the surrounding community in order to complete a sale to CCG. CCG has stated that it plans to build an ultra high-end, inpatient addiction treatment center, blocking any and all access by residents, and charging $60K a month or more per inpatient.
The suit asks BH to abide by its promises made in 2009, or hold it liable for $100MM+ in damages. According to the lawsuit, BH fraudulently induced approval of the amendment, thereby depriving the community of a valuable resort amenity and significantly reducing their property values in the range of 30 to 50% or $100MM+.
Cordillera, a planned, primarily- retiree community in Edwards Colorado, offers golf and a mountain life style to its 500+ residents. The Lodge and Spa at Cordillera was planned as, and has been, a crowning jewel in the community and a center for socializing. It offers lodging, dining, spa, and gym facilities along with a separate restaurant.
As stated by resident Jane Wilner, "We worked all our lives to be able to purchase a retirement home in Cordillera, near resort amenities and facilities, which the Lodge represents. It makes no difference to us if the Lodge were eliminated and replaced by a convent, concert hall, Girl Scout camp or treatment center. It's the same to us. That change cannot be made without our approval. To have our right to approval fraudulently trampled on, resulting in the loss of this central amenity and a huge loss in our property values, is improper, unfair, and illegal."
The class action suit has been filed by Potomac Law Group, PLLC.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/behringer-harvard-sued-in-federal-court-for-100mm-300394477.html
SOURCE Potomac Law Group, PLLC
