Fourteen months ago, on April 10, 2007, practically no one would have believed it would end this way. That's when the town of Middlefield voted overwhelmingly - 1,097-151 - to allow the town to spend up to $2.85 million for the purchase of the Powder Ridge ski area.

Today, on June 21, 2008, the town, as one of only two bidders at a court-arranged auction, bid $2.4 million, then $2.55 million and finally $2.7 million for the 246 +/- acres before dropping out of the bidding, allowing Middlefield Holdings LLC to take ownership of the foreclosed property for $2.75 million.

Actually, according to Middlefield Holdings attorney Nick Furlan, no money changes hands at all since the holding company is essentially claiming property they already hold a mortgage on. That mortgage was bought from TD BankNorth in early 2007 by the newly-formed, single-asset limited liability corporation (LLC).

The low key auction was handled on the driveway to Powder Ridge, just off Powder Hill Road, by attorney John Boccalatte of Middletown, who was appointed by state court to oversee a foreclosure auction last year.

The original auction was stalled by the filing of a Chapter 6 (involuntary) bankruptcy on April 6, 2007, by unsecured creditors of Whitewater Mountain Resorts (WWMR), then owner of Powder Ridge. Ken Leavitt, principal of WWMR, then turned the Chapter 6 bankruptcy into a Chapter 11 (voluntary) bankruptcy, as is provided for in the federal bankruptcy statutes.

The ensuing year has been filled with intermittent drama at the federal bankruptcy court in New Haven, the last chapter of which was an auction for the separate but contiguous 32 acres of Green 40, also with Leavitt as principal, which first found the town on the short end of the stick, willing only to bid up to $300,000 for the landlocked, undeveloped parcel. Various appraisals of the parcel's value ranged from $97,000 to $207,000.

At that auction, held June 2, 2008, in New Haven, Nicholas Lenge, agent for Budding Rose Realty LLC, of Hartford, bid $317,000. He was financed in large part by $191,000 in a short-term loan from mystery lender Alexander Gillis of Fairfield, Iowa, who said in a phone interview that he would "of course hold a mortgage on the property."

A week and a half later, on June 11, the bankruptcy court granted a "relief of stay" in the WWMR bankruptcy case, over Leavitt's objections, effectively allowing the foreclosure auction held this Saturday at noon to proceed. And that's why two dozen or so neighbors and interested parties showed up at the Powder Ridge driveway to watch the next act of the drama.

According to Furlan, however, "We're still a long way from owning the property." First, a closing must be held within 30 days and then the Middlesex Superior Court must certify the results of the auction, which could take up to 90 days. "Then we can make plans," he said.

Jon Brayshaw, Middlefield's first selectman, declared, following the close of the auction, "It's a new day."

It was a sentiment shared by John Lyman III of Lyman Orchards, who added that the change from control by the bankruptcy court to control by a group of investors could lead to "more realism."

Selectman Dave Lowry, who has attended many of the long bankruptcy court sessions, said, "We went as high as we could given the circumstances. I'm just surprised not to see any other bidders." Lowry referred specifically to Lenge of Budding Rose Realty, who at one point had offered $5.2 million for the Powder Ridge property alongside his offer for Green 40.

The auction transferred the property free and clear of any liens, which means that at least the unsecured creditors are at the mercy of the new owners at Middlefield Holdings. Furlan refused to speculate also on the payment of back taxes, which total over $212,000 to Middlefield alone and get higher every day because of accruing interest. Something over $16,000 is currently owed to the city of Meriden and about $2,000 to Wallingford for back real estate taxes in those towns, and come July 1, new taxes will become due in all three municipalities.

Middlefield Holdings principal Steve Grathwohl, whose business card reads "Westport Property Management LLC," gave a little insight into recent events. "We thought we had a deal worked out with the town," he explained, referring to the town's partnership with Ski Sundown owner Robert Switzgable. As partners, the town of Middlefield and Switzgable were prepared to offer around $3.4 million for the property, with Switzgable owning the central ski area outright and the town owning the surrounding property as open space. Switzgable would have run the business and turned over the development rights on his property to the town, thus assuring the fondest wishes of residents - the continued presence of a ski area, restriction of residential development and preservation of open and recreational space.

"Then that fell through (due to the sale of Green 40 at auction to Budding Rose rather than the town), and here we are," he concluded. Grathwohl also refused to speculate on Middlefield Holdings' plans for the property. And, despite his apparent departure from the field, Switzgable and his attorney were present at the auction today.