Yellowstone Club Fallout
Bozeman’s Story Mill Falls Victim to Yellowstone Club Debacle
Story Mill, led by Edra Blixseth's son, is dead in the water, piles of unpaid bills in its wake.By Jonathan Weber , 1-05-09
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| An artist's rendering of the Story Mill project. | |
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A highly touted mixed-use development slated for the historic Story Mill site in Bozeman appears to be dead - the latest victim of the rolling financial fiasco that has engulfed the Yellowstone Club and its owner, Edra Blixseth.
The Story Mill project, which would have been among the first large urban infill projects in the region and promised to set new standards for sustainable development, was led by Matthew Crocker, the son of Edra Blixseth. Crocker and Blixseth signed personal guarantees for a $13 million loan from a Colorado real estate finance company in the summer of 2007, the proceeds of which went to Blue Sky Development, Go Build and several related entities. Story Mill was the primary project being undertaken by those companies, and the Colorado firm, Western Capital Partners, sued Blixseth and Crocker for repayment last month, alleging that no payments had been made on the loan since July.
Multiple sources associated with Story Mill confirmed that activity had been at a standstill for some time, and that Go Build laid off all its employees and closed its Bozeman office in December. Go Build and Blue Sky Development owe money to a number of Bozeman companies, and at least two - Hyalite Engineers and Kath Williams, a green building consultant - have filed liens against the Story Mill developers. American Bank, a lender to the project, declined to comment.
Story Mill is one of a number of entities that are reeling in the wake of the Yellowstone Club bankruptcy. Edra Blixseth, who took control of the club following her bitter divorce with Tim Blixseth, apparently has no cash to support a far-flung array of business ventures and expensive personal properties. Employees and vendors at her massive Palm Springs estate apparently weren’t paid for many weeks and were dismissed around Christmas.
Meanwhile, employees of a Blixseth-owned technology company called Blxware, which is mired in a convoluted legal battle of its own, also say they have not been paid. Edra Blixseth in November agreed to a settlement of litigation relating to the Blxware technology, which can supposedly be used to track terrorists by scanning video. Together with the company and with the inventor of the Blxware technology, Blixseth agreed to pay $20 million to eTreppid Technologies, a company owned by veteran businessman Warren Trepp, as well $5 million to Trepp and $1.5 million to an entity called Friendly Capital Partners, according to court documents. The payment to Friendly was due in early December, and Blixseth and her partners were also required to pledge $40 million in collateral against the settlement by mid-December. It’s not clear if either of those actions have taken place. Attorneys for Blxware and Trepp could not be reached Monday.
The Yellowstone Club is now operating under Chapter 11 bankruptcy protection with a $20 million loan provided by CrossHarbor Capital Partners. CrossHarbor also holds a $35 million mortgage on the Palm Springs property - money which Edra used to buy Tim out of the Yellowstone Club as part of the divorce - and that loan is also in default. Edra also pledged to put up an enormous estate in France, the Chateau de Farcheville, as collateral in the bankruptcy proceedings. A $60 million sale of that property fell through in August, apparently helping to precipitate the cash squeeze.
The Story Mill development, which is less than two miles from downtown Bozeman and received approval form the Bozeman city council in December of 2007, was slated to have 1,200 homes and 140,000 square feet of commercial space. The developers promised to make it a pilot project for sustainable neighborhood design, and it was lauded as an example of how Western towns could grow without sprawling.
But even without Edra Blixseth’s financial troubles, it’s not clear that the project would have been viable in the current economic climate.
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Comments
"look around you....we're at the threshold of hell." - from christmas vacation.
The consumers, the corporations, even the banks - who sell YOUR long-standing credit card debt to other financial companies as a way of getting rid of it.
Of course, it doesn't help if a snake-oil salesman absconds with your savings.
A very informative bio of Tim by the New York Times when...well "back" when...
http://travel2.nytimes.com/2006/03/05/magazine/305vacation.1.html?pagewanted=1
Ok I follow, did my research. 864yd was sold but same company you state. Was a G2 and the G4 it shows she or Tim is leasing and another G4P is owned. Assume the no-lease is Tim Jet which is the YC number as the G4 is EJ76? Must be nice flying alone
And his path since them is littered stiffed contractors and little people. A guy like Tim might piss off someone without a sense of Yuma, and boy, oh howdy, would that be interesting. Maybe that was the reason for the gated roads and armed guards----to keep some disgruntled guy with a name ending in a vowel from paying him a visit.
I would have loathed to see my favorite UNDEVELOPED recreation spot turned into another $ sinkhole for rich yuppies with so much money they buy gold-dusted toilet paper to wipe their a*$es. The only thing marring the Northeast side (in 2006 dubbed "the ghetto?!?!") of Bozeman is that new "village downtown Bozeman" townhouse development. The rest of Northeast Bozeman is beautiful, historical and REAL.
The economy hasn't affected me at all because I know how to live frugally and never placed much importance on accumulating wealth and material things. I prefer investing my time in a love of people, nature and knowledge. It must really suck to love money so much it ruins your life.
http://www.observer.com/term/59173
Let's see...I think he's thinking in terms of a "sequel"?
How 'bout:
"YC2 - The Sequel: Collapse into the Caldera"
They tried having NE Bozeman declared a "blight" area so that they could pick up the properties for cheap.
If Edra's son was involved, the investors' money would have gone to pay for his mother's next (overdue) facelift.
It's good this thing crashed and burned.
There is good change and there is bad change, and this was most definitely the latter.
Yeah there is good change and bad change, but who moved your cheese?
Always looking for someone to blame with a little (or a lot) of defamtion.
How are you for the better by saying these awful things about people you don't even know....or at least care about?
This was a really great project and had it been anyone else, most would be sticking up for it.
in either case these scum don't give a rat's ass about you or anyone else. they are greedy parasites who deserve their fate. if you are a courtier, better find a new meal ticket. if you are a knave, then worship them in silence. in either case, i find your slavish obeisance toward these theives somewhat tiresome and your shameful grovelling is embarrassing to watch...
I/We know enough about them: they're crooks.
There wouldn't be a horrendous lawsuit - nor would the service firms who have done business with YC be hurting right for lack of payment.
You obviously are RELATED to those CROOKS - otherwise you wouldn't defend them so piteously.
Wake up: they are scam artists. If you in any way benefit from their Ponzi scheme, you are one too.
I have taken a huge financial loss because of the problems at the Yellowstone Club, but I'm not sitting here crying about it. It's part of doing business, we pick ourselves back up and move forward and hope for the best. If anyone involved has done any wrong doing in this situation it rests on their shoulders, not ours.
As for Edra's facelifts, what a waste of money. She's not even getting her money's worth from the looks of them. Talk about a real waste of stolen funds!
Really cool project? More like unrealistic given the serious infrastructure problems the city is facing. Water mains the break, roads, sewer, and on and on. I see new trucks, cruisers, cameras at stop lights, and how about the dozens of people it takes to put those ugly holiday spiders up! Talk about being stung! Oh, I forgot the frat house money pit!
My problem with Edra, Tim, or Mathew is that they have all shown their willingness to defraud anyone that they have done business with and get away with it, so far! This is just another example of our society's disturbing lack of moral and ethics. Go into Monarch and look at the garbage at ridiculous prices. There is nothing in the store that is worth the price! I understand making a profit but give me a break!
What I have done is to bring to light facts regarding the above people and their activities. These people should and need to be prosecuted for their personal behavior regarding their financial activities. Why do you think our financial situation here in the US is so bad? Maybe it is the same attitude that the Blixseth's have. TAKE, TAKE, and TAKE without consequences. Who pays? People like you and me so wake up!
By the way I do not grovel, but only want to shed light on the criminal activities related to the above story. Annedy, I have met Mathew numerous times and know Tim and Edra both,as well as, know what they are capable of! Do you?!
Tim, Edra and now Mathew. Appears the snakes are getting restless and soon it will be seen when Credit Suisse go after them all for fraudulent loans, the tax authorities clearly must be asking was the loan a loan? My guess is they all go to jail and loose everything. Its a matter of time. I would assume al the banks do not believe anything. Poor American Bank who loaned Tim and Edra and Mathew money and no way to collect. Get a quote as the bank is out more than 10m in personal loans to the Blixseth Group of family members
As for Tim - and the Story Mill project: why hasn't he simply donated money with no expectation of economic return? Prez Gambel of Montana State University tried hard to get a donation from Tim for the university, but Tim refused. A real jackass: no donating towards the goal of higher education.
I guess Tim was sore because his son attended MSU-BOZEMAN and never really fit in - a curmudgeon at the age of 18, and intolerant of a community where people acted like human beings.
Tim and ex-spouse Edra - and their BRATZ - now have only themselves to complain to - SCHADENFREUDE!!!!
Memo to Tim: the REALLY RICH people in this world practice PHILANTHROPY - because they realize their money came from other people.
342000000 YELLOWSTONE MONTAIN CLUB LLC FROM CSFB
A 37000000 TO BLIXSETH GROUP
B 165000000 TO TIM BLIXSETH
C 1900000 TO MONARCH DESIGN
D 140000000 TO YELLOWSTON DEVELOPMENT
NOW IT GET TRICKY:
A SEND 37000000 TO FIRST BANK WHICH IS A TIM ACCOUNT
B SENDS 8000000 TO WESTERN PACIFIC 15000000 TO JACKSON STREET BANK 500000 TO UNION BANK 100000000 TO US BANK 6000000 TO AMERICAN BANK MONTANA 36000000 TO PALM DESERT NATIONAL BANK ALL ACCOUNTS ARE TIMS PERSONAL ACCCOUNTS AND LOAN ACCOUNTS
C KEEPS THE MONEY
D SENDS 100000000 TO US BANK 39000000 TO AMERICAN BANK MONTANA
30000000 FOR TURKS AND CAICOS FROM MEMBER IN THE CLUB
26000000 FOR FARCHEVILLE CASTLE
30000000 FOR TAMARINDO
9000000 FOR ST ANDREWS
3000000 FOR WYOMING
10000000 FOR YACHT 1 SOLD FOR 9000000
3500000 FOR YACHT 2 SOLD FOR 2500000
45000000 FOR G550 SOLD FOR 55000000
60000000 FOR PORCUPINE CREEK
18000000 INTEREST PAYMENTS FOR THE CLUB
32000000 PAY OFF OLD CLUB LOANS
28000000 CLUB RUNNING COSTS 2006/2007 INCLUDES JETS
THE REST WAS ALL FOR TIM AND ALL PROCEEDS FOR SALES WENT TO TIM
Since the 90's, this area has witnessed an incredible influx of wealthy out-of-state individuals who experience greed and excess as a way of life. They flocked here en masse and drove up housing prices and the cost of living for those long-established here.
As much as it may make sense to the wealthy, trickle-down economics doesn't pan out in practice. For example:
1) We provide jobs!
Yes, these developments provide blue-collar jobs for a period of time, but those people still make blue-collar wages while a few people stand to increase their bulging bank account by millions. If you feed the horse enough oats, some will pass through to the road for the sparrows, right? "The rich get richer" is a common saying for a reason.
2) Those with money will donate the excess $$ to charity, spreading the wealth and giving money (back) to the people.
This is basically giving a small sub-population of people some fish because they can't fish themselves. A vast majority of the population won't benefit from charity; only those who are in crisis and have no way out will feel relief via charity . Any self-respecting capable individual will do what they can to make their own living. Philanthropy helps the destitute and I guess if that helps you sleep at night, good for you. Most people work for their money.
Annedy, I am not at all jealous of the "success" people who aspire to wealth achieve. I don't want my own private ski-hill or a multi-million dollar house. I just would like to be able to afford a modest house in Bozeman some day, like my great-grandparents, grandparents, and parents managed to do. That is nearly impossible with high rent, high cost of living, and low wages. I am a 4th generation, college educated Bozeman native working in my field and waiting tables on the weekend and I still can't save up to buy a house in my hometown! I don't consider this "keeping me down" but when I read the above article it makes me consider how many more people from the area will be displaced to make room for Blixseth-like developments. The city commission needs to wake up... I'm appalled that they approved the plan for Story Mill.
We need affordable housing.
Oh well - now Matt's a wanted man and all his construction/development projects are gonna tank.
GOOD! These people are finally being recognized by all for being the crooks that they are - and that their projects are scam operations regardless of how much their PR firm promotes them as beneficial to the community.
Well Annedy - let's see you pose this in a positive light.
Really, the only real question now is which is dropping faster: the values of Blixeth-associated properties - or the surgically-enhanced crow's feet and other lines in Edra's face.
Positive spin, well there is none. I only leave a little food for thought, which applies to you, me, those involved in these stories, your grandma, my great uncle, and everyone living on this earth:
Life appears complicated, but it's not. We complicate our own lives. We create chaos out of order. We mess things up, continually making matters worse because we just don't understand what life is about or how it works.
The first thing we need to understand is that life is as simple as darkness and Light. I am not speaking metaphorically when I say Light. Only two things exist in this world: darkness and Light. Life appears complicated because darkness has a nearly endless variety of shades, and Light comes in countless colors.
Nonetheless, at the heart of all that exists, you will either find darkness or Light.
Today, put your tasks and thoughts into two columns: darkness and light. At the end of the day, see what you can do to eliminate those things that fall into the 'darkness' category. And do less 'darkness' tomorrow.