Yellowstone Club announces joint partnership

By JESSICA MAYRER Chronicle staff writer

After months of uncertainty, a messy divorce and a high-profile lawsuit amid allegations of sketchy financial dealings, Yellowstone Club owner, Edra Blixseth, announced Tuesday that an Arizona-based property manager will take care of the club’s day-to-day operations and oversee new construction.

Erik Petersen/Chronicle The Yellowstone Club is shown 2007 file photo. Yellowstone Club owner Edra Blixseth announced Tuesday that an Arizona-based property manager will take care of the club’s day-to-day operations and oversee new construction. Big Sky Realtors rejoiced.

“I think it’s absolutely fabulous news,” said local Realtor Sally Uhlmann. “The impact the Yellowstone Club has on the Gallatin Valley is pretty tremendous.”

Discovery Land Co., which operates and develops luxury resorts across the country, has entered into a long-term agreement with the Yellowstone Club to oversee 450 new homes inside the gated community, which spans 14,300 tree-dotted acres beneath 15 ski lifts reserved for club members.

Blixseth made the announcement along with Sam Byrne, of CrossHarbor Capital Partners LLC, the Yellowstone Club’s largest property owner. CrossHarbor considered buying the Yellowstone Club from Yellowstone founder Tim Blixseth, Edra Blixseth’s estranged husband, before a deal fell apart last March.

A Yellowstone Club news release states that Byrne, as a majority Yellowstone property owner, and Edra Blixseth “have entered into a joint venture with Discovery to operate the Yellowstone Club.”

That does not mean Byrne will take control of day-to-day operations, said a Yellowstone Club spokesman, Gary Dunlap. Edra Blixseth is at the helm. But, “they wanted to seek his input being that he owns a significant percent of the properties.”

Club members include Microsoft founder Bill Gates, former vice presidential candidate Jack Kemp and pro golfer Anika Sorenstam. Membership fees run about $16,000 a year.

The newly formed partnership will reinvigorate faith in the mega-development, Uhlmann said.

The club’s reputation took a beating during Blixseth divorce proceedings, in which the former couple squabbled over who should get the Big Sky development. The bickering corresponded with complaints by contractors and club owners who said the Blixseths weren’t paying their bills.

“It was punishing the reputation of the club,” Uhlmann said. “So people did not want to make multi-million dollar investments.”

And there was the lawsuit. Filed by three-time Tour de France winner Greg LeMond and other club members, the suit alleged that Tim Blixseth tried to buy them out at below-market rates and kicked them out when they complained.

A judge ordered Tim Blixseth to pay LeMond and the others for their Yellowstone shares and Edra emerged from the divorce as the club’s owner.

Now as the dust quiets, local real estate agents and building contractors are looking to the future, Uhlmann said.

“Their livelihood is really enhanced by having the Yellowstone Club,” she said.

Jessica Mayrer can be reached at jmayrer@dailychronicle.com or 582-2635.

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