Aspen council approves amended Lumberyard deal with $5 million pre-closing cap

The Aspen City Council on July 14 voted to approve Resolution 100 (2025), amending the Lumberyard master development agreement with Gorman and Company to limit the city's exposure for developer preclosing costs to $5,000,000 per closing. The motion passed by roll call with Councilors Benedetti, Doyle, Guth, Rose and Mayor Richards voting yes.

City staff described the cap as a protection for taxpayers that applies during the developer's due-diligence period. "If that occurs, it's capped at $5,000,000 per closing," said Chris Everson. He said the cap is intended to cover architecture, engineering, survey, soils and related predevelopment work and that the city's exposure at any one time would not exceed $5,000,000 even though the project contemplates two separate closings.

The council had continued the resolution last week to request an amendment limiting city expense exposure and to ask for more information about the outside attorneys assisting with the deal. James Artru, special counsel, told the council he is "very much" confident in the Butler Snow team advising the city on financing and deal structure.

Staff said the agreement requires the developer to submit invoices and supporting documentation for any requested reimbursement and includes language transferring consultant work products to the city on termination. After the vote, Mayor Richards moved to end the special meeting and the council recessed for a break before its 4:00 p.m. work session.