Judge appoints receiver for Future Legends sports complex

WINDSOR — A Weld District Court judge put the Future Legends structures under receivership Tuesday, after Future Legends and owner Jeff Katofsky failed to pay six notes that now total more than $45 million.

Future Legends, originally billed as a sports entertainment venue that would bring teams from all over the country for tournaments, and act as the home for minor-league baseball team Northern Colorado Owlz, and the minor-league Soccer team, Hailstorm, has been under intense scrutiny for the last year as liens, lawsuits and unpaid bills have continued to pile up.

BizWest previously reported that there were more than $11 million in lawsuits filed in Weld District Court and federal courts, and more than $13 million in liens filed in the Weld County Clerk and Recorder’s office.

Weld District Court Judge Shannon Lyons signed an order Tuesday appointing Cordes and Co. in Denver as a receiver on the property to take over all aspects to ensure that the property is safe and pays its bills. The receiver will be allowed “to take charge of all assets owned or held by the borrower and all personal property used or associated therewith,” the order states. The receiver will be expected to “manage, operate, maintain and otherwise control the property as necessary to prevent diminution of the Receivership Property value,” the order states. The order grants the receiver rights to change the locks, take over the finances, and hire and fire employees.

Lyons also denied Future Legends’ request for time to answer US. Eagle Federal Credit Union’s request for receivership.

“The Court has reviewed U.S. Eagle’s Motion and finds the lender has established a prima facie right to the property and that certain structures (esp. inflatable dome) on the property and the rents and profits are in danger of being lost or materially damaged,” Lyons wrote. “Therefore, U.S. Eagle is entitled to appointment of a receiver. The Court recognizes that appointment of a receiver is an extraordinary legal measure, but finds that it is warranted under the circumstances of prolonged default and risk of damage to the property. The Court will not require the lender to wait for regular briefing to protect the assets securing its loans to Future Legends.”

In court documents filed Aug. 30, US Eagle, based in Albuquerque, N.M., sought to foreclose on its loans, guaranteed by Katofsky and Future Legends, and place the property into receivership. The bank issued six loans for the dome, the *partially completed stadium and team dormitory, and they remain unpaid. At present, only the dome is being used, and the dormitory and main stadium has not been finished, and the dome has no running water or working bathrooms.

In August, Xcel Energy threatened to shut off the electricity to the dome, as the bill was in arrears. US Eagle Bank reported that it came up with $134,752 to keep the lights on.

According to the court filing, US. Eagle issued the following loans:

• A $13 million USDA loan for the dome property in October 2021; the bank is demanding $13.76 million on that loan, which includes the unpaid balance, late fees and interest accrued.
• A $10.6 million USDA loan on the dormitory in May 2022; the bank is seeking $10.66 million, which includes the unpaid balance, late fees and interest accrued.
• A $10 million USDA loan for the stadium in August 2022, which has accrued to $10.7 million.
• A $5 million loan on the stadium in August 2022; the bank is seeking $4.9 million in total based on the unpaid balance, interest and fees accrued.
• A $1.4 million loan for the stadium in June 2023, of which $439,802 remained unpaid; the bank is now seeking $462,971 on that loan with accrued late fees and interest.
• And a $6.87 million loan on the dome in September 2023; of which more than $4.2 million remains of the balance. Together with interest and fees, the bank is seeking $4.6 million.

Michael L. Staheli of Cordes & Co. is the appointed receiver of the properties. He said Sept. 10 he is “fact-finding” at present, and he has not yet determined which direction he will take to move the properties forward.

“I am meeting with the different parties, and I need to take this information and see what makes sense to me and visit with the secured creditor and see what they want to do and come up with a plan,” Staheli said. “It’ll take a couple of weeks. … I don’t want to do anything too dramatic that will disrupt the program needlessly.”

*This story has been updated to state that the partially completed main stadium is under receivership with the dome and the partially completed dormitory. The story in its original version was unclear which of the stadiums on the property were in receivership. The story also has been updated to include comments from the receiver of the property.