Monday, April 9, 2012

Restoration plan for Paradise Valley hotel stalls again

Efforts to restore the iconic Mountain Shadows resort in Paradise Valley have stalled once again.

Mountain Shadows has been shuttered since 2004, but hope came to the town in December when a high-profile company made plans for its redevelopment.

Phoenix-based JDM Partners LLC and California-based Crown Realty & Development Inc., developer of the resort, entered into a purchase agreement that month for the property, which is at 56th Street and Lincoln Drive.

However, JDM Partners announced Wednesday -- the day the deal expired -- that it was unable to reach a final agreement with Crown Realty and is no longer under contract for the property.

The company had been in the process of finalizing a conceptual plan to redevelop the resort.

Tom O'Malley, chief operating officer for JDM Partners, said the company had every intention of getting an extension for the purchase agreement and acquiring the property.

He said the town's efforts had nothing to do with the contractual breakdown, but he gave few other details, citing a confidentiality provision in the purchase agreement.

"We worked hard with the seller and did everything we could," he said. "We were really excited about the prospects, but if the opportunity presents itself in the future, we will take a look at it."

Rick Carpinelli, senior vice president of acquisitions and development for Crown Realty, said company officials will meet with the town to discuss redeveloping the property.

Thoughts of the resort's redevelopment had brought high hopes to town officials and residents expecting the rebirth of the beloved Paradise Valley landmark.

Those hopes hinged on the reputation of JDM Partners, co-owned by sports mogul Jerry Colangelo.

JDM's projects include Chase Field, US Airways Center, Comerica Theatre and the remodel of the Wigwam resort in Litchfield Park, which represented the company's first foray into the hospitality industry.

Town Manager Jim Bacon said he is disappointed that JDM wasn't able to complete the purchase, but Bacon is optimistic that Crown Realty will submit a special-use permit to redevelop Mountain Shadows.

"They told us they plan to submit an application," Bacon said.

by Philip Haldiman - Apr. 8, 2012 09:55 PM The Republic |

Restoration plan for Paradise Valley hotel stalls again

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