The termination of an easement is driving a lawsuit filed by a homeowners association located near the base of Peak 8 at Breckenridge Ski Resort against a local developer and a Vail Resorts subsidiary, according to court documents filed May 19. 

In the complaint, One Skill Hill Place Homeowners Association alleges developer Breckenridge Grand Vacations and Vail Resort subsidiary, Vail Summit Resorts Inc., terminated an easement on March 26 the homeowners association allegedly controlled. The suit claims the defendants included a number of “intentionally and materially false statements” in the easement termination documentation.

The plaintiff seeks a preliminary injunction against the defendants, disallowing the defendants from taking any actions concerning the easement. 

“The HOA is worried about its building falling down due to potential construction activities, excavation, installation of structures, and any other activities within the easement area,” attorney representing One Skill Hill Homeowners Association Alex Dorotik said via email. “A preliminary injunction would prevent said activities until the court can make a decision on the easement and termination.”

The lawsuit comes amid planning for the Imperial Hotel & Private Residences, a 400,000-square-foot Breckenridge Grand Vacations project set to be near the One Ski Hill Place building and the base of Peak 8. Documents related to the termination of the easement were submitted to planning officials at the town of Breckenridge as the two parties work on pushing the development proposal through the planning process. 

According to court documents, the easement was created on property formally owned by Vail Summit Resorts Inc. and controlled by an entity called One Ski Hill Place LLC. One Ski Hill Place LLC isn’t associated with the homeowners association and is also a defendant in the lawsuit, sharing legal representation with Vail Summit Resorts Inc. in the matter.

The easement was acquired by One Ski Hill Homeowners Association from One Ski Hill Place LLC in April 2010 for the purposes of constructing, maintaining and repairing underground improvements and facilities connected to shoring walls on Vail Summit Resorts Inc.’s property. 

Court documents show the property the easement is on, once owned by Vail Summit Resorts Inc., is now owned by P8E Grandview LLC, an LLC created by Breckenridge Grand Vacations for the sake of the Imperial Hotel project.

The documents state the easement created in 2010 was terminated on March 26. One Ski Hill Place LLC, who the court documents allege is no longer in control of the easement since transferring it in 2010, and Vail Summit Resorts Inc., who the court documents allege is no longer the owner of the property the easement is on, signed off on the termination of the easement being jointly represented by attorney Edward Walker. 

“As to how or why Vail Summit Resorts would believe that they have authority to sign the termination of an easement they no longer control, I have no idea” Dorotik said.

The other party to sign the document actualizing the easement termination was the Breckenridge Grand Vacations LLC, P8E Grandview.

The lawsuit claims documents submitted by the defendant to Office of the Summit County Recorder for the terminated easement “deliberately omits material facts” including that One Ski Hill Place Homeowners Association is in control of the easement.

The defendants all declined to comment, citing policy regarding ongoing litigation. Breckenridge Grand Vacations did not respond to requests for comment related to what purpose the easement was terminated for. 

Breckenridge town staff members confirmed the easement termination was not necessary to the project’s approval. The documents were submitted by the developer for transparency to show actions taken in relation to getting the development to move into the next phase. 

“While Plaintiff has no idea what actions may be contemplated by P8E (Breckenridge Grand Vacations), the fact that Defendants deliberately filed a patently false document with the Office of the Summit County Recorder in an effort to deny Plaintiff its rights under the Easement is damning evidence of P8E’s intentions,” the lawsuit states.

Dorotik threatened this litigation during a public comment he made at a May 6 Breckenridge Planning Commission meeting. He also submitted a letter to the town on behalf of the association asking officials to not approve the hotel’s plan without substantial revisions and clarifications. The letter states the association attempted to work with the developer “in good faith, but as of May 5” have not reached a resolution to critical issues. 

At the meeting, Breckenridge Grand Vacations Owner Mike Dudick expressed shock over the letter. He said his company met with the association just ahead of the May 6 meeting and thought they were all on the same page.

Aside from the easement, the One Skill Hill Homeowners Association had concerns about the Imperial Hotel development including those over a planned dog day care and the noise it will generate, negative effects on property values, the influx of traffic the development will bring and claims that the developer violated rules related to blocking resident’s view corridor and building height also worked their way into the letter of opposition.