New York, NY – Developers of the stalled $3 billion base village renaissance at Colorado’s Snowmass ski resort, near Aspen, have this week filed suit against the financiers of the project.nNew York-based Related Cos. and its fellow developers, J.E. Robert Cos. and Istithmar World, the Dubai government’s investment company, filed suit this week in New York State Supreme Court against Hypo Real Estate Corp., Dekabank Deutsche Gironzantrale, Danske Bank Group and KBC Bank NV, alleging that the lenders’ own financial instability caused the project’s $520 million in financing to dry up. The new lawsuit comes after lenders initiated foreclosure proceedings against the development last month.

It’s a question of which came first, the chicken or the egg. In the lawsuit filed this week, the Plaintiffs allege that condominium sales plummeted when the lenders refused to continue financing the project. The lenders, in turn, filed the foreclosure proceedings last month after the developers missed loan payments. In addition to monetary damages, the Plaintiffs seek injunctive relief to squash the foreclosure.

Other lawsuits filed by Snowmass condominium buyers seeking to void their purchase contracts are also pending.