When the US economy slides backwards, as we seem to be seeing in 2008, there will always be impacts felt throughout our strong Vail economy. Today, we have seen two strong indications that we are entering a slowdown here at home. East West Partners, which just this year won the prestigous Vail Valley Success award for 2008, has announced that it will be laying off as many as 21 of its key employees in the next few months. East West built much of Beaver Creek including the Hyatt Hotel, Willage Walk, the Vilar Center, and a number of high end condominium projects. They are currently finishing up the Westin Riverfront Hotel in Avon. Harry Frampton, President, stated that the ’soft’ real estate market makes it hard to start new projects in this market.

Also, in this morning’s Vail Mountaineer, it was announced that the Vail Plaza Club and Hotel is being sued by Shaw Construction for some $8 million for unpaid construction bills. Normally, when one sees a Mechanics’ Lien placed on a building, it is not a good sign for not only the project, but usually for other sub contractors who have not been paid by the General. In times when sales have slowed, this means that Developers might be willing to make deals with prospective Buyers because they need the cash now. We at Gateway always stay on top of these situations and can help smart investors find the opportunities that provide discounted pricing in a weak economy. One thing we know here, is that, while corrections always happen in a cycle, buying at the bottom will always mean large profits as the sales start to pick up again.

Always call me at Gateway for updates on what is a bargain. Judd Babcock, 970-376-3230

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