The 17 free-market lots at Sinclair Meadows have gone into foreclosure, according to public records.

A notice of election and demand for sale, filed this week by the public trustee of Pitkin County, indicates the owner of Sinclair Meadows owes $15.6 million to Alpine Bank.

Sinclair Meadows is owned by C Snowco LLC, which is controlled by David Denholm of Newport Beach, Calif. Denholm also owns two houses in Aspen.

C Snowco bought the 17 lots in June 2006 for $13.5 million, according to the Pitkin County Assessor's Office.

In a related development, last week Alpine Bank sued C Snowco LLC and Denholm in Pitkin County District Court. The suit seeks $15.6 million for the construction loan given to C Snowco in July 2007.

Sinclair Meadows is located about one-half mile from the base of Two Creeks and approximately 1 mile from Base Village in Snowmass.

The 17 lots remain undeveloped, and none of them have been sold.

Sinclair Meadows attorney Peter Thomas, who is on vacation, said in an e-mail Wednesday that discussions are underway to avert a foreclosure auction.

“Snowco is making a good faith effort to negotiate a work out with its lender,” he wrote.

The foreclosure action and lawsuit mark the latest development in the legal wrangling over Sinclair Meadows.

Earlier this summer C Snowco sued two LLCs controlled by Related Westpac, the developer of Base Village in Snowmass. The suit, which seeks $2 million, contends that the developers have moved slowly in building the 21 affordable housing units that are part of Sinclair Meadows and mitigation for the Base Village development.

The suit is pending.

rcarroll@aspentimes.com