The long-shuttered Mountain Shadows resort in Paradise Valley could get some help in its struggle for a new existence.
Carpinelli, senior vice president of acquisitions and development for
Crown Realty & Development, said at least one well-known hotel
operator is interested in partnering with Crown Realty, the owner of the
property, or possibly buying it and taking over redevelopment
But, he said, it all hinges on the approval of a
proposed special-use permit, which outlines the redevelopment plan for
the resort, resort-residential units and the propertyâ€™s golf course.
permit initially was slated for a council vote Thursday, but the
council has continued the discussion to Jan.10 because concerns from
council and residents remain.
Officials have not scheduled a vote on the permit.
operators are finding us and coming to us and knocking on our door,â€
he said. â€œBut theyâ€™re waiting to see what happens with the (special-use
Carpinelli said high-profile hotel operators have been interested in the historic Mountain Shadows resort in the past.
May, Solage Hotels and Resorts, a luxury-hotel operator, entered into a
preliminary joint-venture partnership agreement with Crown, but
negotiations later broke down, and Crown continued with the permitting
â€œ(Hotel operators) donâ€™t want to get involved when things are up in the air,â€ Carpinelli said.
document still missing from the permitting process is the townâ€™s
development agreement with Crown, which, Mayor Scott LeMarr said will
include the financial
aspects of the redevelopment. He said because the development agreement
had not been completed by Thursdayâ€™s meeting, a discussion to review it
will be scheduled for a later date.
â€œThe development agreement will cover the deal points with Mountain Shadows,â€ he said.
the permitting process began in May, Mountain Shadows has seen ups and
downs, including proposed changes with the special-use permit, possible
claims from both of the resortâ€™s homeowners associations and a
bankruptcy filing by Crown.
Crown recently submitted its
reorganization plan in U.S. bankruptcy court that it says will help it
emerge from bankruptcy and redevelop the resort, which has been closed
The reorganization plan may rely on a 20-year-old
Mountain Shadowsâ€™ development agreement with the town, which could allow
Crown to raze the resortâ€™s 18-hole executive golf course and develop
the resort at a much higher density than the proposed special-use permit
Crown officials say allowing the resort, at 56th
Street and Lincoln Drive, to be developed based on the 1992 agreement
could help bring the resort out of bankruptcy.
Based on the 1992
development agreement and greater density of new structures, the resort
has been appraised at about $65million, according to
Carpinelli said under the proposed permit, which limits the density allowed, the property is valued at about $45million.
He said the companyâ€™s proposed plan would keep the golf course, but trim it from about 3,000 to about 2,500 square yards.
also said the 1992 development agreement would allow for 484 more
resort rooms and residential units than the special-use permit allows.
Crown is willing to give up some of the value of the 1992 agreement by
not developing the maximum it allows, in order to gain approval of a
timely â€œfair and balancedâ€ special-use permit, he said.
Carpinelli said if the permit is not approved, Crown may be forced to
pursue higher densities and elimination of the golf course for more
residential space as allowed in the 1992 agreement.
â€œWeâ€™ve said we want to work with the community and all parties involved,â€ he said.