More like a shadey land swap with the Forest Service, Jabber. This news story sums up the F-ed up mess going on at the Yellowstone Club right now.
Blixseth sells trophy Yellowstone Club lot
By SCOTT McMILLION Chronicle Staff Writer
VIRGINIA CITY - Yellowstone Club founder Tim Blixseth has sold the land where he had planned to build the world’s most expensive house.
ERIK PETERSEN/CHRONICLE Semi-private ski lifts are a prominent feature of the gated Yellowstone Club, shown above, which is now for sale. Club founder Tim Blixseth announced a year ago that he would build the world’s most-expensive home at the club, but this month he sold the lot targeted for the home. The buyer of the 160-acre parcel inside The Yellowstone Club’s 14,300-acre expanse, according to records in the Madison County Courthouse, is Loren Bough, a Big Sky resident who is active in educational and community-building issues there.
Courthouse records also show that Blixseth is facing three new lawsuits related to landholdings in the Big Sky area.
Blixseth announced in January 2007 that he was planning to build a 53,000-square-foot home n roughly the same size as the new Bozeman Public Library n and put it on the market for $155 million. At the time, it was to be the most-expensive private home in the world, a concept that attracted international publicity.
He called the proposed structure “The Pinnacle” and said it would include a private ski lift to whisk owners and guests from inside the house to the top of the mountain. Plans also called for a heated driveway and an indoor-outdoor pool with a retractable glass wall.
Construction never started, however.
In a Thursday e-mail, Blixseth did not explain his change in plans but pointed out that he is in the real estate business.
“We are in the business at Yellowstone Club to sell land every day,” he wrote. “We have lots of land up there and there are always opportunities to build something big like The Pinnacle.”
The deed was recorded March 11.
“I’ve got no exciting plans for it,” Bough said. “It is, for me, just an investment.”
Bough grew up on a wheat farm at Highwood, Mont., and then made a career in international finance, living in England and Russia. He moved to Big Sky four and a half years ago, he said, and has been active in fundraising efforts to build a high school and the Big Sky Institute, which is affiliated with Montana State University.
Since Blixseth announced plans to build the Pinnacle, divorce proceedings with his estranged wife, Edra, have become increasingly testy. In addition, The Yellowstone Club is for sale.
Earlier this month, Blixseth said he expects the sale of the club to close April 15. Bloomberg News Service reported the price is $455 million. The potential new owner is Crossharbor Capital, a Boston-based private equity firm.
Meanwhile, new legal actions have been filed against Blixseth, whose wealth has been estimated at $1.2 billion by Forbes Magazine.
He recently settled a lawsuit filed by some minority owners of the club, including bicycle racing champion Greg LeMond, agreeing to buy their holdings for $38 million. Among them, they own just over 4 percent of the club.
However, the final $20 million payment is late and LeMond and the others are back in court, demanding payment by April 1.
The settlement with LeMond and the others “was to be funded partly by a sale of The Yellowstone Club,” Blixseth’s lawyer, Stephen Brown, said in court papers filed here.
Meanwhile, three other suits have been filed since January.
Michael Snow, who owns 1 percent of the club, is in court demanding payment for his share. He maintains he had a verbal agreement with Blixseth that calls for him to receive the same amount to be paid to LeMond and the others for each of their shares, which works out to about $9 million.
That payment was due Feb. 7, Snow’s suit says, but never arrived. Now, Snow wants attorney’s fees and punitive damages on top of the money.
“We will defend this suit vigorously as it is without merit,” Blixseth wrote in the e-mail.
LeMond also has filed a separate suit that claims Blixseth owes him a residential lot at the resort because he elicited at least 10 new members over a five-year period before he and Blixseth had their falling out.
Blixseth strongly denied in court papers that there was ever any such agreement, or that LeMond had brought that many new members.
“Mr. LeMond never brought in 10 members who bought property at The Yellowstone Club within five years, or at all,” Blixseth maintained.
The third new suit comes from the Boyne Corp., which owns the Big Sky Ski and Summer Resort.
That suit involves a 15.5-acre parcel of land near the apex of Lone Peak.
Blixseth and his previous partners in the Big Sky Lumber Co. obtained that land as part of a complicated land swap with the Forest Service in the 1990s.
Boyne maintains that Blixseth promised to convey the land, which is near the Big Sky tram station at the top of the peak, to Boyne.
“If BSL is successful in obtaining the property from the (Forest Service) BSL agrees to sell the property to Boyne for the appraised value,” says a 1998 agreement filed with the legal complaint.
At the time, the value was estimated at $800 an acre.
Instead, the suit states, Blixseth conveyed the property on Feb. 7 to Spanish Peaks Development, which is adjacent to The Yellowstone Club. The Boyne suit also names Spanish Peaks.
Blixseth was an original partner in Spanish Peaks but has since sold his interests, he said earlier this month.
Blixeth and Spanish Peaks maintained in a legal reply filed this week that Boyne has “unclean hands” because it has been trespassing on the property by allowing construction on it and allowing people to ski on it. Plus, Boyne has refused to add Blixseth and Spanish Peaks to its insurance policy, they said.
They asked that the suit be dismissed and that Boyne “take away nothing.”
Scott McMillion is at
[email protected].