In a written statement, the pilot reported that he performed a normal cold-inflation of the balloon. He instructed the passengers to board and prepared for flight by arranging lines. The balloon was suddenly overcome by a gust of wind, pushing the envelope into a tree. The pilot elected to abort the flight due to increasing wind speeds. The balloon was suddenly dragged upward by the wind, but several rotation vent lines remained entangled in the tree. As the lines became taut, they ripped a section of material from the envelope, resulting in several long vertical tears (4 to 5 yards in length). The pilot opened the burners in an attempt to gain control. As the balloon's airspeed increased to the wind speed, it descended and the basket collided with the wall of a building. It was again pulled up by the wind, and the pilot again applied heat to gain control. The balloon descended, and collided with a tree. The basket came to rest about 20 feet above terrain. The pilot added that there were no preimpact mechanical malfunctions or failures with the balloon. He stated that the weather information he gathered via the Flight Service Station (FSS) did not predict wind gusts.