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Show WESTERN AMERICANA Serials Order Dept. University of Utah 84112 SM.Utah J j Condominium Development in 1973 accounted for Condominiums 9.3 percent of the approximately in Salt starts Lake, Davis housing and Weber Counties. This is slightly below the national figure of 11 percent. Weber County leads Salt Lake and Davis Counties in the percentage of condominium starts to total housing starts. This data was verified in conversations with Weber County planning and zoning officials, who stated that subdivision development in Weber County is rapidly being replaced by condominium development. The economic advantages of conversion for both the apartment owner and the home buyer are sizeable, and are particularly attractive at the lower end of the housing price range, i.e., under $20,000. Increases in land and construction cost have effectively eliminated the construction of homes priced under $20,000, but through conversion, apartment dwelling units in this price range can be made available to home buyers and sizeable profits can be realized by apartment owners. Garden and townhouse units have been the basic type of condominium built in Utah. Two-- and three bedroom units dominated the building configuration, with very few 1 bedroom or four bedroom units. The amenities offered by condominium developments have become almost standardized. Swimming pool, club house, and tennis courts are offered in most developments. The future for condominium development in Utah appears very bright. Condominiums should enjoy d more acceptance as land and construction costs continue to soar, pushing developers and home buyers into the condominium market. The recreational faculties, property maintenance, and security provided by condominium complexes are becoming very attractive features for many new home buyers. wide-sprea- See Details Page 6 In This Issue - Mr. SALT LAKE CITY, UTAH District Director, V. Roland Wise, ' IRS, for Utah announced today that Mr. James L. Oys has been appointed to the position of Chief, Audit Division, Salt Lake City District. Mr. Oys succeeds Mr. Ned Miller who retired. A career government official, Mr. in Oys began his IRS employment Los in Revenue a Agent as 1962 Angeles. After holding increasingly in Washresponsible positions there, ington, D.C., and Richmond, Virginia, he was selected for the Western ProRegional Management Careers receive individuals which gram in specialized training in preparation for higher level appointments. . Legals Probate New Partnerships Births Bankruptcies Bountiful Power Building Permits Business Licenses Business Telephones Third District Court Supreme Court Decisions Suits ..... ....... IRS Get New Chief in Audit Division SERIALS ORDER DEPT. Divorces MONDAY, OCTOBER 14, 1974 The Economy: Condominium Developments In Utah Supreme Court Decisions tffiu SALT LAKE CITY, UTAH VOLUME 1, NUMBER 27 Condominium developments are becoming an increasingly important factor in the housing industry. The rapid increase in construction and land cos'ts is pushing not only developers but also home buyers into the condominium market. Last, year condominiums accounted for 11 percent of the approximately 2,000,000 twelling units built in the. United States and it is predicted that they will represent 15 percent of new dwelling unit starts in 1974. Is the Utah housing industry experiencing the same trend? It is the purpose of this article to answer this question and to determine past and present condominium activity, the total stock of condominiums, the characteristics of condominium developments, and the outlook for future condominium development in Utah. The high concentration of population and construction activity along the Wasatch Front makes it possible to generalize about Utah's housing industry, particularly with reference to condominiums, by an analysis of condominium developments in ' the Wasatch Front counties. Since well over 85 percent of all condominiums in the state have been, built in Salt Lake, Weber, and Davis Counties, this study is limited to those three counties. Over 60 condominium developments were surveyed in the three counties to determine the supply of condominiums, the price range, amenities offered, and units planned. "NlVTRSiry OF , Marriages Liens Mortgages Trust Deeds Quit Claim Deeds Warranty Deeds Water Service New Corporations Attorney General Opinion Tax Liens Murray Power Murray City Court . '. Uniform Commercial Code Filings . 2 3 3 3 4 4 5 5 5 5 6 8 9 9 10 10 10 10 11 11 12 12 14 14 14 14 Washington M ore Optimistic than Public sometimes conflicting diagnoses, the recent presentation to the House President indicated in his summit Budget Committee. Greenspan arguspeech that he would propose fiscal ed that the upsurge in prices has remeasures against inflation and not flected pressures on the Federal Reserve to accommodate much larger follow the difficult path of structural change. But the fiscal path itself is increases in the money supply than it would ordinarily sanction. The likely to be difficult, given his promise to cut $5 billion from an strongest source of pressure has been swollen the tremendous acceleration in prifind and also budget funds to offset the impact of surging vate business' demand for bank loans the opposite side of the coin from prices on the poor and aged. Some the of even the doubt inability of private business to possibility analysts reaching the present projection of meet its credit needs in the capital budget deficit for fiscal markets. That development in turn has reflected the increasing premp-- ' def1975, reasoning that a tion of basic savings flows by various icit is more likely on the basis of ssion-affected levels of governments. Thus, the criand receipts affected in any element tical expenditures. Still, the budget cutting effort program must be a reduction of govseems essential, for reasons detailed ernment claims on private savings by Alan Greenspan, Chairman of the flows, through reduced spending by Council of Economic Advisers, in a Federal agencies and by agencies as well. The President and his 800 Sherpa guides unfurled the flag at the economic summit, but now they face the more difficult task of leading the economy down from the inflationary heights without tumbling into the crevasse labelled recession. Along the way, they must face a voting public whose mood has been characterized as shifting from sullen to mutinous. According to the latest Gallup poll, seven out of ten persons believe that the economic situation will worsen during the next six months, and almost half expect a 1930's-styl- e depression to develop. The tone of the Washington summit meeting and the preceding series' of minisummits was not as pessimistic as the mood of the general public, inflation-- $ll-billio- n rece- inflation-- ry general consensus could be reached not surprisingly in view of the variety of conflicting diagnoses presented at the various conferences and for that matter the discussion frequently veered away from Public Enemy No. 1, inflation, to a host of other evils, primarily recession! Still, the summit meetings provided some momentum behind the Administration's legislative proin line with due next week, gram, Senator Mansfield's comment, "The time for words, macro or micro or whatever, is at an end." off-budg- et Monetary Path Inc. Appoints New Assistant Vice President anti-inflati- Causes of Crisis attributed the severe and protracted inflation to a e misfortunes. collection of The lengthy list included: the coincidence of a worldwide business boom; the impact of a series of major crop ' failures on the world food supply, . plus the disappearance of stabilizing crop reserves in this country; the worldwide shortage of industrial materials because of the inadequate capacity expansion of the past decade; the new bargaining power of Arab oil producers after the disappearance of U.S. surplus capacity; and the distortions created by wage and price controls imposed without a one-tim- nt g Fiscal Path Responding to these varied and Many of the summit conferees recognized the validity of this line of argument, with its corollary of a continued program of fiscal and monetary restraint, but others pressed for an immediate easing of monetary policy in order to forestall a major recession. These statements highlight the fact that monetary policy is not an either or proposition, but rather a sophisticated weapon capable of acting within a broad spectrum from extreme ease to extreme tightness. The money supply has increased at a 5M percent someannual rate so far this year annual rate what below the of the preceding three-yea- r period and the growth has been even slower in the past several months. In recent weeks, however, Federal Reserve market actions nave indicated a more moderate stance, exemplified by a of over 2V4 drop since in rate on the percentage points Federal funds (overnight bank bans of idle reserves). Other policy actions have made the same point, and have been buttressed by Chairman Burns' assertion of the Fed's determination to avoid a credit crunch. To repeat, the mood of the summit conference was somber, reflecting the widespread belief that inflation is an exceedingly difficult problem that will take time, to overcome. But some historical perspective may be useful. The nation has experienced several bouts inflation in the past of double-digi- t generation, during the World War II period and again briefly during the Korean War. (For exampb, the general price index increased 12 percent in 1942, was suppressed by wartime controls for several years, but again rose by 12 percent in both 1946 and 1947.) In each case, the inflationary episode eventually came to an end, with the easing of worldwide business-cycle pressures, the expansion of industrial capacity, and the moderation of previously expansionary monetary and fiscal policies. If treated in the same way, the inflation of the 1970's will one day be seen as an fortunate historical episode rather than a permanent change in the nation's economic structure. -- . iriid-summ- fully developed wartime control machinery. In each situation, too, speculative hoarding accentuated the price upsurge. Other experts blamed the inflation on basic changes in the structure of the U.S. economy, such as the growth of nationwide unions, the increasing concentration of industry, and an overzealous dedication to policies which put a low ceiling on unemployment and a floor under prices.' Most importantly, many conferees attributed the severity of the problem to a worldwide conjunction of excessively easy monetary and fiscal policies. Governments, by providing too much money and too much stimulus to purchasing power, eventually fueled a worldwide price explosion. The over-lonretention of the system of fixed exchange rates created vast flows of funds from the U.S. overseas and made it impossible for other major industrial countries to control their domestic money supplies. ' n $20-billio- but was still decidedly somber. No Many participants ; Michael Gardner The Board qf Directors of Equities, Inc. announces the appointment of Michael C. Gardner as assistant vice ' president. Mr. Gardner is a 1972 of the University of Utah graduate with a Bachelor of Arts degree in accounting. He formerly was employed by a Salt Lake City financial service firm as branch manager. He also was empbyed by First Security Bank in its BankAmerkard collections department. He is married to the former Judith Evans of Eugene, Oregon. The couple has one son. W. Bruce Woodruff, president, commented that Mr. Gardner's employment would assist Equities, Inc. in improving services in secondary real estate financing (purchase and resale of real estate contracts). er . William Burke , |