''For more than five years, Vail Resorts had had a contractual relationship with Intrawest Corp. to enhance and develop the Keystone Resort,'' says Adam Aron, Vail Resort's chairman and CEO. ''A key element of the contract is a mutual non-compete provision preventing either Vail Resorts or Intrawest Corp. from developing real estate in Grand County, Colorado, except under a specifically defined circumstance. Both Intrawest Corp. and the city and county of Denver were highly aware of this provision prior to the selections. As we have yet to see the proposed structure of an agreement between Intrawest Corp. and the city and county of Denver, we can make no comment about their going forward together.

''Obviously, if it turns out that Intrawest Corp. is breaching its contractual obligations, then that would be almost serious matter,'' he adds.

But Rick Pederson, president of Foundation Properties in Denver and a member of the committee that selected Intrawest, tells GlobeSt.com the agreement won't kill the deal with Intrawest. The Intrawest deal is expected to take four to six months to hammer out before it goes before the city council for approval.

Although the agreement only came to light recently, it was no surprise to the selection committee.

''We were aware about the agreement from the beginning,'' Pederson tells GlobeSt.com. ''Our lawyers reviewed it and assured us it wouldn't be a problem.''