A rendering of the One River One development. (Courtesy of Oz Architecture)
The developers of a $300 million resort in Keystone that is scheduled to open next year cannot sue a former co-developer for fraud, a judge in New York City has ruled.
Last week’s decision, which soon will be appealed to a higher court, is the latest episode in a pricy saga that has come to include allegations of bank fraud and investment fraud, but hasn’t stopped construction on the much-anticipated, future Vail Resorts property.
The Kindred Resort, which broke ground in 2022, will be a ski-in, ski-out hotel and condo complex on 4 acres. Its 95 condos range in price from $1 million to $6 million and are more than 70 percent sold, according to ownership group One River Run Acquisition.
In 2020, Vail Resorts brought One River Run together with the national real estate investment firm Greenwich Group International and asked the two firms to create Kindred. The 50-50 partnership was to combine ORRA’s development skills with GGI’s fundraising.
Instead, the partnership collapsed. In 2022, GGI sued ORRA for fraud in Breckenridge, accusing it of cutting GGI out of the project and costing GGI at least $36 million. ORRA then sued GGI for fraud in New York, accusing GGI of being a “sham company” that didn’t raise money for Kindred, hurting the project and costing ORRA at least $72 million.
Construction of the Kindred Resort project is seen on Feb. 5, 2024. (Courtesy of One River Run Acquisition)
Last March, Judge Reed Owens in Breckenridge pared down GGI’s case and ruled that construction could continue at Kindred. In July, Owens paused the case and deferred to New York Judge Andrew Borrok, rather than have the two cases proceed simultaneously.
On Feb. 5, Borrok ruled that ORRA cannot sue GGI’s executives at all and cannot sue GGI for fraud, conspiracy to commit fraud, or fraudulent inducement because it lacks evidence. ORRA can only sue GGI for breach of contract, the judge in Manhattan decided.
“We are pleased that the court agreed our (breach of contract) claim seeking $70 million in damages can proceed against GGI,” ORRA attorney Michael Bowe said, “and we will begin the discovery process immediately and press aggressively to trial.”
He also plans to appeal Borrok’s order dismissing GGI’s executives as defendants.
“We now look forward to going on the offensive in the New York lawsuit, as the plaintiff,” ORRA added in a statement, “which will allow all evidence to be presented with our expected positive outcome of ORRA being awarded damages related to GGI’s breach.”
GGI’s attorneys did not answer requests for comment on Borrok’s decision and the cases.
No trials have been scheduled in either case. The Breckenridge case, in which GGI is suing ORRA for fraud and breach of contract, remains on hold, court records show.
Meanwhile, in Keystone, two of the resort’s three towers have been framed in and topped off, according to ORRA. Crews there are building the third tower and doing interior work on the completed towers, which will include some of the condos and a 107-room hotel. Once completed, RockResorts, a subsidiary of Vail Resorts, will run the hotel.
A rendering of the One River One development. (Courtesy of Oz Architecture)
The developers of a $300 million resort in Keystone that is scheduled to open next year cannot sue a former co-developer for fraud, a judge in New York City has ruled.
Last week’s decision, which soon will be appealed to a higher court, is the latest episode in a pricy saga that has come to include allegations of bank fraud and investment fraud, but hasn’t stopped construction on the much-anticipated, future Vail Resorts property.
The Kindred Resort, which broke ground in 2022, will be a ski-in, ski-out hotel and condo complex on 4 acres. Its 95 condos range in price from $1 million to $6 million and are more than 70 percent sold, according to ownership group One River Run Acquisition.
In 2020, Vail Resorts brought One River Run together with the national real estate investment firm Greenwich Group International and asked the two firms to create Kindred. The 50-50 partnership was to combine ORRA’s development skills with GGI’s fundraising.
Instead, the partnership collapsed. In 2022, GGI sued ORRA for fraud in Breckenridge, accusing it of cutting GGI out of the project and costing GGI at least $36 million. ORRA then sued GGI for fraud in New York, accusing GGI of being a “sham company” that didn’t raise money for Kindred, hurting the project and costing ORRA at least $72 million.
Construction of the Kindred Resort project is seen on Feb. 5, 2024. (Courtesy of One River Run Acquisition)
Last March, Judge Reed Owens in Breckenridge pared down GGI’s case and ruled that construction could continue at Kindred. In July, Owens paused the case and deferred to New York Judge Andrew Borrok, rather than have the two cases proceed simultaneously.
On Feb. 5, Borrok ruled that ORRA cannot sue GGI’s executives at all and cannot sue GGI for fraud, conspiracy to commit fraud, or fraudulent inducement because it lacks evidence. ORRA can only sue GGI for breach of contract, the judge in Manhattan decided.
“We are pleased that the court agreed our (breach of contract) claim seeking $70 million in damages can proceed against GGI,” ORRA attorney Michael Bowe said, “and we will begin the discovery process immediately and press aggressively to trial.”
He also plans to appeal Borrok’s order dismissing GGI’s executives as defendants.
“We now look forward to going on the offensive in the New York lawsuit, as the plaintiff,” ORRA added in a statement, “which will allow all evidence to be presented with our expected positive outcome of ORRA being awarded damages related to GGI’s breach.”
GGI’s attorneys did not answer requests for comment on Borrok’s decision and the cases.
No trials have been scheduled in either case. The Breckenridge case, in which GGI is suing ORRA for fraud and breach of contract, remains on hold, court records show.
Meanwhile, in Keystone, two of the resort’s three towers have been framed in and topped off, according to ORRA. Crews there are building the third tower and doing interior work on the completed towers, which will include some of the condos and a 107-room hotel. Once completed, RockResorts, a subsidiary of Vail Resorts, will run the hotel.
