Chadwick property receives notice of foreclosure
Developing group managed by Brooks Kellogg
November 4, 2010
Brooks Kellogg timeline
March 8, 2001: Stephen Bunyard, through First Land Development, put land into a real estate development with Eagle Glen LLC, a company registered to Brooks Kellogg. First Land holds 25 percent ownership in the project.
June 2002: Eagle Glen did not make loan payments, and foreclosure proceedings started.
Late 2002: Eagle Glen allegedly tries to buy out Bunyard’s company Fist Land, but he turns down the offer.
March 31, 2003: Eagle Glen sells the property to Eagle One, also registered to Kellogg, without Bunyard’s consent.
Aug. 27, 2003: Eagle One changes its name to Chadwick Estates, which is registered to Richard Friedman.
Nov. 15, 2004: Bunyard files lawsuit against Kellogg
Late 2004: Suit goes to trial in Routt County
April 10, 2008: Kellogg and Chadwick Estates settle with First Land for $2.38 million plus interest, for a total of about $2.5 million.
April 30, 2008: AMT LLC, a Bunyard company, tenders a check to Friedman for $200,000 for development of a townhouse in Chadwick Estate Villas. Later, Chadwick Estates agrees to sell the unit and pay AMT back the $200,000 invested plus interest and $307,500 in profit.
Feb. 11, 2010: Bunyard files lawsuit against Friedman, Kellogg and Chadwick entities for failing to make payments
2010: Judge orders two sides to go into arbitration and to report back to her in 2011.
June 30, 2010: A judge agrees to the $2.5 million settlement in the first lawsuit
Oct. 1: Barbara Blackmore, a 47-year-old Clifton woman who claims to be the mistress of Kellogg, calls Bunyard’s attorney in Steamboat Springs, Reed Morris, to tell him she has heard about a possible plan to kill Bunyard. Morris notifies the Routt County Sheriff’s Office, which notifies the FBI.
Oct. 5: The informant makes a monitored telephone call to Kellogg in the presence of FBI special agents, according to an FBI affidavit. A special agent posing as the contracted killer makes calls to Kellogg about the hit.
Oct. 7: Kellogg agrees to meet the caller and pay $2,000 more for expenses, according to the FBI affidavit.
Oct. 18: Kellogg agrees to meet the undercover FBI special agent at Denver International Airport at 12:40 p.m., according to the FBI affidavit.
Oct. 19: Kellogg arrested at DIA after giving $2,000 to an undercover FBI agent posing as a hit man, according to the FBI affidavit.
Oct. 25: Kellogg’s U.S. District Court hearing postponed
Today: U.S. District Court hearing for Kellogg. Judge denies bail, meaning Kellogg will remain in jail. Judge also finds probable cause for prosecution to pursue the case against Kellogg.
Friday: Kellogg’s arraignment scheduled in U.S. District Court in Denver.
February 2011: Second lawsuit scheduled for arbitration
Steamboat Springs — Chadwick Estates LLC received a notice of foreclosure last week on four unsold townhomes and vacant land on Eagle Glen Drive, off Eagleridge Drive near the base of Steamboat Ski Area.
The unpaid principal balance on the property was more than $11.7 million as of Oct. 22, after an initial balance of $12.5 million. One townhome on the property sold for $2 million April 22, according to Routt County records, and is not involved in the foreclosure notice.
Chadwick Real Estate Group is the development firm for the property, marketed as Chadwick Estate Villas. The property has city approval for 15 additional townhomes that remain unbuilt.
The property and notice of foreclosure are part of a complex web of real estate sales, litigation and financial dealings that, in turn, are related to one of the most high-profile arrests in Steamboat Springs' recent history.
Brooks Kellogg, the managing member of Chadwick Real Estate Group, was arrested Oct. 19 at Denver International Airport on suspicion of trying to pay for the killing of a Florida man who settled for $2.5 million in a lawsuit against Chadwick entities owned by Kellogg and a Steamboat business partner, Richard Friedman.
That Florida man, Stephen Bunyard, has been involved through First Land Development in litigation against Chadwick entities since 2004. A judge upheld the $2.5 million settlement in June. Arbitration for an ancillary lawsuit involving Bunyard and Chadwick entities is scheduled for February.
Routt County Treasurer Jeanne Whiddon confirmed the notice of foreclosure for the Chadwick Estates property. Whiddon said Community Banks of Colorado is scheduled for a March 2 sale in which the bank will try to attract buyers for the property.
But buyers could be unlikely given the real estate market, she said.
"In the last year and a half, (the trend) has been for no one to really bid against the bankers at this point, unless something happens to be hugely attractive," Whiddon said. "I can't imagine that this (property) won't just go back to Community Banks of Colorado, unless someone has a handy several million in their pocket."
Friedman said Wednesday that he's exploring options to resolve the situation before that sale.
"They have not concluded the foreclosure," Friedman said. "I am in discussion with the bank in order to come to an agreeable solution."
Friedman said no other Chadwick properties are tied up in the $11.7 million unpaid balance. He said factors that led to the foreclosure likely are familiar to real estate developers.
"The downturn in the economy and the climate in real estate has hindered sales and therefore prevented income in order to pay down the loan in a timely manner," Friedman said.
Whiddon said she has taken steps to inform Kellogg of the foreclosure notice. Kellogg is in an Englewood federal detention center.
U.S. Magistrate Judge Kristen L. Mix denied Monday a request for bail made by Kellogg's defense.
Mix said in U.S. District Court in Denver that factors including Kellogg's complex financial situation, which could make him a flight risk, created a situation where the court could not allow his release.
During that Monday hearing, FBI special agent Kenneth Jackson gave testimony detailing a conversation at DIA between Kellogg and an undercover FBI agent who was posing as a contract killer. Jackson said the two met in a DIA concourse, as arranged in communication monitored by the FBI, and first exchanged pleasantries.
"Mr. Kellogg then discussed various economic troubles," Jackson said.