The 2.6-acre St. Cloud site planned for a luxury condominium development at the entrance to Ski Time Square is on the market for $15 million.
Steamboat Springs developer Jamie Temple said he would rather attract a new investor than sell.
"I want to find a joint venture partner," Temple said. "That said, I want to open it up to a broader market."
The 4-acre, 781,339-square-foot St. Cloud project is being undertaken by Temple and Colgate Holmes, founding partner and former president of Ritz-Carlton Hotel, and a former president of Hyatt International.
Temple developed Storm Mountain Ranch in Steamboat with his brother, Jeff.
In addition to the 2.6 acres Temple has for sale, the development would include a parking structure owned by Steamboat Ski and Resort Corp. It is not part of Temple's listing.
St. Cloud has undergone a preliminary review by the city planning department. But trends in the financial markets suggest it won't be built as previously envisioned.
"We would have to start over," Temple said. "We'll have to redesign without a substantial condominium/hotel component. Condominium hotels are probably not financeable for the next four or five years. It's unfortunate."
At the minimum, Temple said, he is seeking a joint venture partner to help with the carrying costs of the land until the real estate market rebounds.
"What I need is a two-year holding period at least," he said.
Ideally, Temple said, investors in a new joint venture would continue their involvement through a renewed planning process until entitlements are received.
Temple said he looks forward to continuing with the development in the future.
"I intend to remain a part of the development group and lead the project," he said.
Chris Wittemeyer, of Prudential Steamboat Realty, is the listing broker for the sale.
Senior City Planner Jonathan Spence said St. Cloud has been through the pre-application process, which is intended to provide feedback to developers about issues the city planning commission anticipates with the proposal. During a planning commission hearing in late March 2008, during which no vote was taken, it was noted that virtually all of the proposed building exceeds building height restrictions in its zone district.
Temple is offering to sell three primary pieces of property overlooking the ski area base. They include the Clocktower Square building, including 9,600 square feet of commercial condominium space. There is also an adjacent 1-acre parking lot to the west of the building that has access to Burgess Creek Road.
Finally, there are the eight residential units in the Xanadu Condominiums, which sit on 0.62 acres. The Xanadu condos are among the first built at the base of the ski area.
Temple said two separate LLCs hold the Clocktower and Xanadu properties. He is the primary investor in each of them.
Temple said that before a new joint venture could build St. Cloud, it also would have the expense of purchasing the residential condos in Clocktower or trading them into new units.
The tentative proposal for St. Cloud that planning commissioners reviewed one year ago encompassed the additional 1.6 adjacent acres occupied by the Ski Corp. parking structure at Ski Time Square Drive and Mount Werner Circle.
Ski Corp. officials confirmed in March 2008 that the development group had authorization to include the site of the structure in redevelopment plans.
"We're aware that they have contemplated that parking structure in the pre-application and have acknowledged that we have no objection," Ski Corp. Vice President of Development Doug Beall said a year ago. "We haven't consummated a deal."
Temple said this week that the plans to build St. Cloud on the site of the parking structure would hinge to a degree on the ability of ski area owner Intrawest to invest on capital projects in the near term.
"Going forward, I need to see what happens with Intrawest and the ski area's investment on the mountain over the next couple of years," he said.
The ski area owner's ability to make capital improvements has a direct effect on the development market, he added.