Intrawest is guaranteeing the City $3 million up front and $2 million each year for the next 10 years. Subsequent payments will be based on the resort's revenues.

The City was not deterred by last week's lawsuit against Intrawest from rival Vail Resorts Inc., which was filed in Delaware. Vail and Intrawest are partners at the development of Keystone, which Vail owns. Eight years ago the two companies signed a non-compete contract for four counties in Colorado. The agreement requires either company to have a controlling interest before it can develop land in any of those counties, which includes Grand County.

Vail contends controlling interest typically means at least 51% ownership, but in this case, the City of Denver remains the owner. Intrawest says the lawsuit is without merit, while Denver City Council members say the issue is not their concern.