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Liens on Escala Lodges give owners grief

by Andrew Kirk, OF THE RECORD STAFF

In late August, attorneys for Cache Valley Electric filed paperwork in Third District Court requesting a forced foreclosure of Escala Lodges one of the more recent additions to hotel options at The Canyons.

Cache Valley Electric is only one of multiple companies trying to enforce mechanic liens on the property for unpaid bills to subcontractors.

The complaints filed in Summit County listed individual unit owners as defendants, as well as fellow subcontractors, in an effort to make sure no one benefits from the property before all debts were paid.

Cache Valley Electric is owed $575,000, attorney George Hunt said. It started work at the site in 2005 and last performed work in February.

Hunt said filing in that manner was part of a strategy to prompt interested parties to consolidate their individual mechanic liens against the units.

Mark Anderson, an attorney working with Hunt, confirmed Friday that the consolidation of mechanic liens had taken place, and a process had been engaged to release the individual unit owners from liability.

Anderson said the purpose of the complaint was to prompt negotiations for a settlement, not to foreclose unless absolutely necessary.

The developer Silverado Development Inc. Properties (SDI Properties), issued a statement Friday morning saying that his company and the general contract Daedalus Construction were working to resolve all the liens.

"Substantial progress has been made with cooperation from the general contractor and subcontractors," it reads.

Alan Wright, construction manager for Daedalus USA, said in the statement, "An open working relationship continues to exist and we are working diligently to resolve the issues at hand ."

Anderson confirmed that was true.

Cory Williams, vice president of development services for SDI Properties, said in the statement, "Mechanics liens are frequently filed on projects for reasons that are often unrelated to the financial strength and capability of the developer."

The statement asserts that the issues will be resolved and won’t affect the future viability of the project.

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