For several years, the vision for the east Colorado Spring real estate development of the historic Banning Lewis Ranch captured the imagination of El Paso County. The wide open space of the former cattle ranch seemed just right to accommodate our growing Front Range communities.
Perfect for new Colorado Springs home sites, the Banning Lewis Ranch long-term vision would accommodate 180,000 people and 75,000 new homes in Colorado Springs. It came as no big surprise when the Banning Lewis Ranch Co and Banning Lewis Ranch Development I and II filed for bankruptcy in October 2010. After all, the oversized development began just as the Colorado real estate industry started tumbling. As the construction boom disassembled itself into the sunset, the owners fell further into debt and filed Chapter 11 protection with $242 million in debt.
The vision of a learning community with a folksy appeal struck a chord with about 300 buyers who purchased Colorado Springs land and homes on the northwestern corner of the 21,000 Banning Lewis Ranch. Annexed in 1988 by the City of Colorado Springs, the massive ranch is bordered on the north by Woodmen Road, on the west by Marksheffel Road, on the south by Fontaine Boulevard, and on the east by Meridian Road.
During the June 2011 property auction, Ultra Resources, a subsidiary of Ultra Petroleum of Houston, won the bid to purchase 18,000 acres on the south side of the property. Ultra agreed to pay $26.25 million. The sale is scheduled to be completed October 10, 2011. The 2,400 acres with current homes was claimed by Key Bank National Association, a previous lender to the Banning Lewis Ranch companies.
The story does not end there. It turns out the judge lowered the sale price to $20 million and that did not sit well with the second-highest bidder, Asset Ventures of Austin. A week ago, the company challenged the judge’s decision and called for a new auction. Then, without comment, they withdrew their motion.
Ultra plans to drill for oil and gas. The rosy vision of a new eastside suburb is fast fading. But wait! According to Rich Laden at Gazette.com (09/23/11), an employee of Banning Lewis Ranch in the 1980s suggests that Ultra and Asset may negotiate a joint venture. So the new east side city may not end up entirely underground.
Contact Ann Heiring of RE/MAX Advantage, Inc. at (719) 440-1010 or Toll Free at (800) 246-8978 to learn how an experienced Colorado Springs Realtor® can help you achieve your lifetime goals. In appreciation for those who serve our nation, Ann offers rebates for active and retired military.
Banning Lewis Ranch homes for sale