PV Mountain Shadows resort owner defaults on loan

The owner of the Mountain Shadows resort in Paradise Valley has defaulted on his loan but says the long-shuttered property's redevelopment will move forward. A trustee's sale for the resort has been set for July 26. However, officials with California-based Crown Realty and Development Inc., say that the firm wants to avoid the foreclosure, and is negotiating with lender U.S. Bank Special Assets Groupon a resolution. Crown Realty, owned by Robert Flaxman, also developed the InterContinental Montelucia Resort & Spa in Paradise Valley, which defaulted on a $180 million loan about three years ago. Flaxman owes at least $360,000 in taxes on the Mountain Shadows property, according the the Maricopa County Treasurer's Office. Jason Rose, a spokesman for Crown Realty, said if they are successful in negotiations, there will be no sale. If they are not, Crown can bid on the property at the auction. "They are optimistic about a resolution," Rose said. "They feel confident in a favorable resolution with the bank that will translate into a favorable re-development of Mountain Shadows for the town."

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