An investor alleges the developers at Jay Peak Resort double-sold the same fifth-floor units at the signature Hotel Jay to two separate groups of investors.
An investigation by VTDigger confirms discrepancies between what the developers promised investors and what they actually built.
According to the investor and the Digger review, the developers apparently used the money raised from the second group to pay for cost overruns in the project financed by the first group of investors — in particular, the signature water park that went way over budget.
Bill Stenger and Ariel Quiros, the developers of Jay Peak Resort, raised $75 million from immigrant investors to build the Hotel Jay project, which in addition to the hotel includes the water park, a golf course, ice rink and other amenities. While the $37 million hotel was under construction, the developers sought an additional $32.5 million from a separate group of investors for a project called Penthouse Suites.
Stenger and Quiros told Penthouse Suites investors in offering documents that $28.3 million of their investment would be spent on 55 “ultra luxury” suites that would be built on an expanded fifth floor at Hotel Jay.
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