Redstone
The community of Redstone is located in the Elk Mountain area of southwest Pitkin
County, approximately 16 miles south of Carbondale.
Known as "the Ruby of the Rockies," Redstone was developed by a turn-of-the-century
industrialist named John Cleveland Osgood as a company town for the employees of
his coal empire.
After marrying his second wife, Alma Regina Shelgrem, Osgood undertook an
experiment in "enlightened paternalism." He had 84 cottages constructed to house coal
workers who had families and a 40 room inn built for his bachelor employees.
The facilities all featured indoor plumbing and electricity which were luxuries at the time.
Modern bathhouse facilities, a club house with a library and a theatre, and a school
were also provided for the cokers and their families.
Osgood's coal empire spurred the construction of the Crystal River Railroad and
Redstone's historic dwellings. But it was Alma who made the greatest impression on
Redstone's early 20th Century inhabitants. Rumored to have been a Swedish countess
before emigrating to the United States, and possessed of a notable sense of noblesse
oblige, Alma became known as "Lady Bountiful" for the generosity she showed toward
the coal workers and their families.
And it was for Alma that Osgood constructed "Cleveholm Manor," the opulent 42-room
Tudor-style mansion now commonly referred to as "the Redstone Castle." By the time
Cleveholm was completed in 1902, the estate included servants' quarters, a
gamekeeper's lodge, a carriage house, and a greenhouse.
http://www.redstonecolorado.com
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November 19th, 2005
Ghost Hunter University at the Redstone Inn!
With professional ghost hunter Christopher Moon
Photo of the historic Redstone Inn- from www.redstoneinn.com
(800) 748-2524
(970) 963-2526
82 Redstone Blvd. Redstone CO, 81623
http://www.hauntedtimes.com/
hauntedtimes@comcast.net
http://www.redstoneinn.com/
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The historic Redstone Castle
Redstone Castle has a haunted past
By Al Lewis
Denver Post Business Columnist
Friday, March 18, 2005
Whoever places the winning bid for the Redstone Castle on Saturday should know this: You
won't be alone.
The historic manor is haunted.
"I can attest to that," said Sue McEvoy.
For the past nine years, McEvoy has been curator for the castle in the mountains above
Carbondale.
She says guests have reported strange incidents. There's also a legend that spirits hover
in a secret passageway that connects the nursery to the servant's quarters. But what
spooks McEvoy, who has lived on the property for six years, is the ghostly cigar smoke.
A turn-of-the-century robber baron, John Cleveland Osgood, completed the 42-room
English Tudor manor in 1902 for the then-outlandish sum of more than $2.5 million.
He reportedly wanted to impress fellow industrialists such as J.P. Morgan, Jay Gould, John
D. Rockefeller and President Teddy Roosevelt.
Osgood, who made his fortune in coal and steel, died in 1927. But McEvoy thinks he's still
floating around. She believes she has smelled his cigar smoke.
"The door to his bedroom was closed, the windows were open, I could smell cigar smoke,
but no one else was on the property," she said.
The Internal Revenue Service will auction the castle Saturday. IRS spokesman John
Harrison said more than 40 people have qualified to bid.
The IRS seized the property in March 2003 from Leon and Debbie Harte of Greeley and
Leon's business partner, Norman Schmidt of Denver. At the time, Leon Harte and Schmidt
were suspects in an alleged Ponzi scheme said to have duped 1,000 victims out of $56
million.
The IRS took their property before they were charged.
"Seize early and seize often," Harrison said. "If you wait too long, the money is going to be
gone."
The IRS hopes to raise about $8 million from the sale of the castle and a related property.
The IRS also seized $17 million in cash and NASCAR racing cars valued at $2 million. All of
this property will be used to repay victims.
Several defendants involved in the scheme are awaiting trial in September. Many of them,
including Schmidt, are in prison. Leon Harte died of a heart attack June 1, 2003, while
under investigation. He was 48.
Harte smoked, drank and partied heavily. His life's pressures accelerated when he bought
the historic property.
He had envisioned the castle as a party palace with rock concerts on the front lawn. He sold
$100 tickets to a Halloween party, but the turnout was disappointing, and party attendees
say he was drunk and he misbehaved.
His wife filed for divorce. And when his castle was seized, the end was near.
"A man's home is his castle," said Colorado Division of Securities commissioner Fred
Joseph, whose office assisted the feds in their investigation. "In this case, it seems that a
man's home is his hassle."
In March 2004, the feds unveiled a 57-count grand jury indictment of Schmidt and his wife,
Jannice, and Charles Franklin Lewis of Littleton. Norman Schmidt, Lewis and Harte were
considered the ringleaders of the scheme. Others indicted were George Beros of Shaker
Heights, Ohio, George Alan Weed of Benton, Ill., Michael Duane Smith of Colbert, Wash.,
and Peter Moss of London.
These defendants allegedly told investors they could get returns as high as 400 percent
investing in prime bank notes. "Find out the secrets of the wealthiest people in the world!"
they boasted in brochures and sales pitches.
"We want people to understand that there is no such thing as a prime bank note," Harrison
said. "And there's no such thing as 400 percent interest."
There's also no such thing as ghosts. But they reportedly haunt Redstone Castle anyway.
Maybe Osgood and Harte are having a smoke together right now.
Or maybe some future guest will see the specter of a heavyset man, clutching his heart with
one hand and reaching out for cash with the other.
"Give me your money," he'll say in a ghastly, bloodcurdling voice. "And I'll get you 400
percent return."
Al Lewis' column appears Sundays, Tuesdays and Fridays. Reach him at 303-820-1967 or
alewis@denverpost.com.
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Mystery buyer reveals identity
March 25, 2005
ASPEN (AP) - The top bidder on the Redstone Castle said he plans to refurbish the historic
mansion and resume running it as a bed and breakfast.
Ralli Dimitrius, a Hermosa Beach, Calif., resident and part-time resident of Aspen,
acknowledged on Wednesday he was the mysterious top bidder in the weekend auction for
the century-old Tudor mansion.
"I'm not hiding it," he said. "I'd love people to know that I've bought it. I'm interested in
restoring it and keeping it the way it is."
Dimitrius had the winning bid, but he created a stir when he left the Glenwood Springs
auction room on Saturday without identifying himself, leaving Redstone residents to wonder
whom the mystery buyer was and what his plans were for a building many consider the soul
of the town.
Redstone preservationist Peter Martin ran in to Dimitrius over lunch on Tuesday, but only
came away with Dimitrius' first name. Martin filed a freedom of information request with the
Internal Revenue Service in attempt to learn his full name. Now that request is no longer
needed.
"I'm sorry if people thought it was mysterious," Dimitrius said. "I was kind of embarrassed
and shy."
Dimitrius agreed to buy the historic Cleveholm Manor for $4 million at a public auction on
March 19, although the sale may not be final for more than a month.
Dimitrius said he doesn't plan to make a public announcement, but talked with Martin at the
Redstone Inn on Tuesday and assured him that he is committed to Redstone.
The owner of a cattle farm near Carmel, Calif., Dimitrius has owned an 1888 Victorian home
on Aspen's Main Street since 1970, and said he also owns a home in France. Dimitrius said
he keeps his office in Pasadena but lives in Hermosa Beach.
His ex-wife, Jo-Ellan Dimitrius, is a high-profile jury consultant who worked in the O.J.
Simpson murder trial and was requested by Kobe Bryant's attorneys to work in his sexual
assault case.
Dimitrius said he plans to resume using the 42-room mansion as a bed and breakfast and
restaurant. He will keep an apartment for his own use, but won't make it his residence.
While past lodging businesses have floundered at the castle, Dimitrius said he wasn't set
on making money there.
"I didn't buy it for the bottom line," he said. "I bought it because I like it. If it can pay, that's
good. If it can't, I'll help it."
Dimitrius said he may consider developing part of the property, which includes a carriage
house and stable, but he had no immediate plans.
Historic preservationists have estimated the historic mansion, built by Redstone founder
John Cleveland Osgood, could cost millions to renovate. Because of the needed
renovations, he said, Dimitrius couldn't speculate when it might open.Historic
preservationists have estimated the historic mansion, built by Redstone founder John
Cleveland Osgood, could cost millions to renovate. Because of the needed renovations, he
said, Dimitrius couldn't speculate when it might open.
Glenwood Springs Post Independent
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Top bid for castle is $4 million
Sunday, March 20, 2005
Unidentified Pasadena man wins auction
By Nancy Lofholm
Denver Post Staff Writer
Post / Ed Kosmicki
IRS investigator John Harrison stands in the balcony of the great room of the Redstone
Castle, which was auctioned off Saturday. The IRS seized the storied residence three years
ago because it was purchased with stolen money.
Glenwood Springs - It took 11 minutes and $4 million Saturday for a Pasadena, Calif., man
to become the new lord of a castle that is stuffed with antiques and a colorful past.
It also comes with a leaky roof, crumbling plaster and quite a history.
The buyer of the Redstone Castle, bidder No. 1725, beat out seven others.
Not wanting to be identified, he quickly left the auction with a small entourage after his high
bid got the nod from IRS investigator John Harrison, ending the latest saga for the 108-year-
old castle.
The new owner didn't say what he plans to do with the castle, Harrison said.
"It's nice to see this castle no longer be an orphan," said part-time Redstone resident Dr.
Walter F. Stanaszek, who paid $480,000 for a Redstone Victorian home that was sold after
the castle.
The 42-room castle, its carriage house and stable, as well as the Victorian home, were
seized three years ago by the IRS because they were purchased with stolen money. The
former owners were involved in an international scheme that bilked 1,004 investors out of
$56 million.
The IRS also seized NASCAR racing cars and $17 million in the investigation.
The Saturday auction brought about 75 people to the Glenwood Springs Community Center
to watch rapid-fire bidding for the castle, which is listed on the National Register of Historic
Places.
Five online would-be buyers were placing their bids from Alabama, California, Georgia,
Florida and Colorado. The three other bidders were in the room clutching their neon-green
registration cards.
"This is just another castle chapter. I bet Mr. Osgood is chortling," said Ken Johnson, a
former castle owner who came to the auction because he is writing a book about the castle
and John Cleveland Osgood.
Osgood was the coal baron who at the turn of the 20th century built the castle, where he
entertained the likes of John D. Rockefeller, J.P. Morgan and President Theodore
Roosevelt.
Osgood called the castle Cleveholm Manor, as part of a utopian industrial village he
developed for the workers in his coal mill.
When the coal market collapsed, the castle was empty for years before it became an on-
again-off-again hotel and site for weddings and other events.
At the auction Saturday, dozens of Redstone residents seemed as tense as the bidders
because the fate of their small town is so tied to the castle.
Their nervousness will have to continue. The buyer has five days to add another $200,000
to his original $200,000 in earnest money and up to 45 days to close on the property.
If the buyer backs out, then the second-highest bidder, a man from Aspen, will get a chance
to buy the castle.
Redstone residents take comfort in the fact that the castle itself can't be developed, torn
down or substantially changed. A coalition of historical societies created an easement
agreement the new owner will have to obey.
Residents said they are heartened that the castle may now get the extra care it has needed.
"These buyers came in with their eyes wide open," said Peter Martin, attorney for the
Redstone Historical Society.
"I assume we'll be glad to be working with them."
Staff writer Nancy Lofholm can be reached at 970-256-1957 or nlofholm@denverpost.com .
http://www.denverpost.com/Stories/0,1413,36%257E53%257E2772652,00.html
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Previous articles:
The Redstone Castle is up for auction
Saturday, March 19, 2005
2:00 p.m
Located on 150 acres only 45 minutes from Aspen, 30 minutes from Glenwood Springs and
15 minutes above Carbondale on Hwy. 133.
Castle access is only available thru scheduled tours.
Join us and step back in time...
Industrialist John Cleveland Osgood came to Colorado in 1882, and some say he hasn’t left.
Osgood and his second wife, Alma, are said to make the occasional trip from beyond the
grave to the Redstone Castle, the enormous home they occupied during the rise of Osgood’
s Redstone coal mining operation.
Cleveholm Manor, the 42-room Tudor-style mansion that Osgood built as the fifth wealthiest
man in the country, was completed in 1902. After purchasing a mining claim in the Crystal
River Valley for just $500, Osgood set up the entire town of Redstone as a community for
the men who would mine the land’s coal.
Hundreds of people still tour the castle each year, to hear the story of Osgood, his
succession of three wives, the dissolution of his coal empire and the continuing saga of the
castle.
Someone with such a strong tie to a place may leave behind an impression: Castle
caretaker Sue McEvoy says John Osgood loved cigars, and she and many others have
smelled cigar smoke during moments alone in the mansion.
Osgood’s first wife, romance writer Irene, died before the castle was completed. His second
wife, Alma, was known as “Lady Bountiful” by Redstone villagers because of her generosity.
During the castle’s time as a lodge, some guests reported smelling perfume or the scent of
lilacs in winter when they stayed the night in Alma’s room.
When the mansion was put on the market in the 1980s, potential buyers brought in
psychics to probe for evidence of paranormal activity. McEvoy says the “experts” didn’t
seem to find much, although there were reports of a “presence” in the Teddy Roosevelt
Suite.
Even so, McEvoy says workers at the castle believe John Osgood and Alma come back to
check on the mansion they lost.
“I have often had people on the tour who said their mother, aunt or grandmother worked for
the owners in decades past,” McEvoy says. “Once a woman told me about a housekeeper
who saw someone in the mirror in Lady Bountiful’s room, and refused to ever come back.”
McEvoy tries not to think about the strange tales while walking through the darkened
mansion, especially when the eyes of John Cleveland Osgood’s portrait in the entry hall
follow her up the stairs.
“I have a certain respect for this house,” she says.
www.redstoneinn.com
info@redstoneinn.com
970-963-2526
Toll Free (800) 748-2524
The Aspen Times, Saturday-Sunday, November 1-2, 2003
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OSGOOD CASTLE/CLEVEHOLM
Redstone vicinity
National Register 06/28/1971, 5PT.553.2
Also known as Cleveholm, the sprawling forty-two room mansion is located approximately
one mile south of Redstone. Designed for John Cleveland Osgood, under the direction of
the New York architectural firm of Boal & Harnois, the residence was completed in 1903.
Reminiscent of a 16th century Tudor manor house in its overall appearance, towers,
turrets, and oriel windows are among the most interesting architectural details. First and
second story walls are of cut and coursed red sandstone, while the third story and gable
ends are covered with wood shingles. Osgood first traveled west in 1882 and found his
riches in Colorado coal fields. He founded the Colorado Fuel Company, which he later
merged with Colorado Coal and Iron Company to form the powerful Colorado Fuel & Iron
Company, commonly referred to as CF&I.
REDSTONE INN
0082 Redstone Blvd.
National Register 03/27/1980, 5PT.553.1
The inn originally functioned as part of the model community built by John C. Osgood for
the workers associated with his nearby coke producing and coal mining operations. The 2½-
story wood frame building was constructed in 1902 for the primary purpose of housing
bachelor miners in somewhat elegant surroundings. A large square clock tower, which
incorporates a red sandstone base; extensive cross-timbering; and a steeply pitched
pyramidal roof, rising a full story above the apex of the building's roof are among the
distinctive architectural details.
http://www.coloradohistory-oahp.org/programareas/register/1503/cty/pt.
htm
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More stories and info:
Online auction of Redstone Castle will be a first
Friday, February 11, 2005
By Nancy Lofholm
Denver Post Staff Writer
The historic Redstone Castle will be sold next month in a groundbreaking online IRS
auction to help recoup losses in Colorado's largest-ever fraud recovery case.
The red sandstone castle, which was built in Pitkin County in 1902, will be auctioned March
19.
The auction will originate from Glenwood Springs, but bidders from across the globe will be
able to take a crack at owning the antique-filled castle so long as they have Web access
and a $100,000 deposit.
John Harrison, a spokesman for the Internal Revenue Service, said it will be the first IRS
auction of its kind in Colorado, and could be an agency first. "We're hoping to get interest
from around the world," he said.
The castle was built along the Crystal River by steel and coal baron John Cleveland
Osgood. But bust followed boom, and Osgood abandoned the luxury castle. It sat empty for
years until it landed in private hands in the 1950s and was operated as a hotel into the
1990s.
In 1997, a Canadian company bought the castle but defaulted on the loan. The property
was then sold at foreclosure auctions in 1999 and 2000 - the last time to the buyers who
landed it in the middle of troubles with the federal government.
The IRS seized the property in 2003 in connection with an investment scam that provided
money for the castle purchase.
Harrison said the IRS opted to auction the castle because it is charged with recouping the
highest amount for the victims. The agency hopes to beat the $6.3 million sale price of
2000.
Overall, the IRS hopes to recoup about half of the $56 million taken in the scam. That
money will include the castle sale and the sale of $2 million worth of race cars the
defendants also purchased. The IRS also seized $17 million in cash.
The castle is on state and national historic registers and last year was named one of the
state's most endangered places by Colorado Preservation Inc.
One preservation group floated the idea of saving the castle by selling off portions of the
159-acre property.
The IRS has been working out details of a historical easement, but Harrison said it is
possible a new owner could develop part of the property out of the direct view of the castle.
Debbie Strom, a partner at the nearby Redstone Inn, said saving the historical integrity of
the castle is a top concern. The castle is a standing lesson on the West's boom-and-bust
history, she said, and noted that the history lesson isn't over yet.
"The castle is like living history," she said. "We don't know what the next chapter will be."
For more information, visit www.treas.gov/auctions/customs/redstone01.html.
Staff writer Nancy Lofholm can be reached at 970-256-1957 or nlofholm@denverpost.com .
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In 2000 Debbie and Leon Harte purchased the castle for $6 million. But three years later,
after an extensive investigation, the Internal Revenue Service seized the castle. Investors in
the Harte’s Tranquil Options, LLC, claimed the Hartes had promised returns but instead
used their money to buy the lavish castle.
The fate of the castle, seized by the IRS in 2003, remains undecided. The historic mansion,
formally known as Cleveholm Manor, is an important tourist draw in tiny Redstone, and
residents there hope public access to the castle can be maintained.
Preservation enthusiasts fear the stately castle could be sold at auction to the highest
bidder and closed to the public, or its elegant furnishings sold off in piecemeal fashion.
The IRS allowed tours and weddings at the castle last summer and intends to do so again
this year, said the IRS’ Harrison.
Its ultimate disposition is a pending matter in U.S. District Court, which could order that the
castle be sold to help pay restitution to the victims.
“We have some people who have submitted written offers to purchase the property,”
Harrison said.
The castle was named to Colorado’s 2004 Most Endangered Places list to publicize its
uncertain future. Colorado Preservation Inc. compiles the list annually to call attention to
historic sites that are in jeopardy.
Coal baron John Cleveland Osgood built the lavishly furnished, 42-room Tudor mansion
between 1899 and 1902. It sits on a hill above what was his industrial town of Redstone.
Osgood entertained such notables as John D. Rockefeller, J.P. Morgan and President
Theodore Roosevelt at the castle.
Aspen Times - March 17, 2004
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Bidder's Conference to be held on March 11th, 2005 at Redstone Inn
in conjunction with IRS-CI
Terms of Sale | Floorplan | Virtual Tour
DETAILED INFORMATION PACKAGE
COMING SOON!
Please Check Back Here to Download it for FREE, or for more information about
purchasing a CD.
Additonal Photos: Click Here
Auction
Saturday, March 19, 2005
2:00 p.m.
Auction Location
The Glenwood Springs Community Center
100 Wulfsohn Road
Glenwood Springs, CO. 81601 980-384-6301
Directions to this Auction Site are: From Denver/Vail, Take 1-70 West to the West
Glenwood Springs Exit #114. At Stop Sign, turn Left onto Midland Avenue. Continie on
Midland for approximately 1.5 Miles, and turn Right into the Community Center.
Registration
Saturday, March 19
1:00 - 2:00 p.m.
Property Preview
March 5, 6, 10, 11, 12,
14, 18 & 19
By Appointment Only.
*Note: In order to schedule an appointment a letter of credit must be sent to EG&G 7723
Ashton Avenue, Manassas, Virginia 20109, Attn: Jessica or faxed to 703-361-3671 Attn:
Jessica.
Deposit
$100,000 cashier's check
(made payable to EG&G Tech Srvcs Inc/ USCS)
Cashier's checks made payable to the bidder's name CANNOT be accepted
Auction Location:
The Glenwood Springs Community Center
100 Wulfsohn Road
Glenwood Springs, CO. 81601 980-384-6301
Redstone Castle
58 Redstone Boulevard
Redstone, Colorado 81662
Furnishings & Antiques included with the castle parcel.
A Bidders Conference will be held March 11, 2005 at the Redstone Inn, Redstone, CO. at 7:
00 p.m.
The properties will be offered individually like listed above and then in any grouping or
choice that the bidders prefer. The highest offer will then be presented to the Government
for their approval. Bidders wishing to bid on multiple properties should bring checks in
increments. Checks must be cashier's checks made payable to EG&G Tech Services
Inc/USCS
Download: Online Bidder Registration - Coming Soon!
Formerly known as Cleveholm Manor, built in 1897 on 72 acres,
15 Bedrooms, 11 Baths, Library, Maids Room, Nursery, Coachman Quarters,
Dormitory, Walk-in Vault, Game Room, Wine Cellar, Elevator,
Armory. Frontage along the Crystal River, and More!
Questions about this property?
E-mail: realproperty@egginc.com
Sale #05-66-895
http://www.treas.gov/auctions/customs/redstone01.html
LIVE ONLINE BIDDING
If you cannot attend the auction in person, you will be able to bid on all lots in this auction
online. Via a simulcast, online bidders will be able to bid competitively with the bidders
physically at the sale in real time. All online bidders must pre-register by visiting our website
at http://www.treas.gov/auctions/customs/redstone01.html and clicking on the simulcast
auction registration link. You will be prompted to review the Terms and Conditions of Sale
and agree to said Terms in order to establish a user name and password. To complete the
registration process, you must print a copy of the registration form and mail it with the
appropriate deposit per property as follows made payable to EG&G Tech Srvcs Inc/USCS.
Cashier’s checks made payable to the bidder’s name CANNOT be accepted:
The Redstone Castle and 72 Acres: $100,000 cashier’s check
The Carriage House and 36 Acres: $50,000 cashier’s check
The Stable Complex and 42 Acres: $50,000 cashier’s check
The Victorian-style Home: $25,000 cashier’s check
Please note that Internet bidders will be required to register online no later than Monday,
March 14, 2005, and the appropriate deposit per property as stated above must be
received no later than Wednesday, March 16, 2005, at the following address: EG&G
Technical Services, Department of the Treasury Seized Real Property Support, 7723
Ashton Avenue, Manassas, VA 20109, Attn: Real Property Sales.
At the conclusion of bidding, if the winning bid comes from an online bidder, an e-mail will
be sent to the successful bidder confirming the bid amount. The successful bidder must
acknowledge receipt of the notice and supply the information requested to validate the bid
acceptance. This acknowledgement confirms the price offered by the bidder and is subject
to acceptance by the Government. Final payment and closing will be in accordance with the
Terms and Conditions of Sale as set forth herein. Unsuccessful internet bidders’ deposits
will be sent to the bidders by certified mail or overnight delivery service within five (5)
business days after the sale.
Copy and paste this link for a virtual tour of the Redstone:
http://ts.rtvpix.com/tour/BU/tour.view.php?utl=BU-1735-PWVN3I-01
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