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Show MAY eh 1996 ay Did Brother of Park City Mayor Defraud the Resolution Trust Corp? By Christopher Smart The municipality then followed with a sudden six-month building moratorium — disallowing any construction of commercial buildings in the historic zone, prompting more questions about the mayor's role relative to his brother's building Although he has a reputation for a behind-the-scenes fixer at city hall, Mayor Olch has denied publicly that he had any involvement with municipal parking requirement reductions for his brother's building at 340 Main Street. Further, Brad Olch has said publicly that the timing of the building’s completion had nothing to do with decisions by the Park to City Council reduce heights and impose a building moratorium. The mayor has said he has ng financial interest in his brother's building at 340 Main Street. The mayor did not return phone calls to The Mountain Times According to a suit filed in US District Court for Utah, Michael Martin and Fred Moore, both Park City, allege that Jon and Janet Olch, and their partner, Henry Sigg, acting as agents of the PARK CITY — Jon Olch, the brother of Park City’s Mayor Brad Olch, now finds himself in a tangle of lawsuits surrounding property on the old mining town’s historic Main Street And although the mayor admits no wrong doing, some serious questions about the property reach toward city hall, located a scant 200 yards from the building in question at 340 Main Street. Two suits filed in separate courts in the past several months allege that Jon Olch, his wife, Janet Olch, and his partner, Henry Sigg, defrauded the federal Resolution Trust Corp. in order to obtain one of the last remaining open parcels of land on Main Street and then defrauded a shoe retailer in order to obtain funding to construct a building on the site. Interestingly, the Park City municipal government forgave Jon Olch some $50,000 of parking required for the building under a previous agreement Additionally, just months following the completion of the 35-foot building, Park City passed a 27-foot height limit. at PARK CITY, UTAH Where Sports are Fun and Improvement is Guaranteed BOYS & GIRLS « AGES 9-18 « ALL ABILITY LEVELS TENNIS GOLF BASKETBALL for girls VOLLEYBALL for girls RTC through their firm, Bald Eagle Realty, defrauded the agency by not selling the land at 340 Main Street to Martin, even though he was the high bidder at $337,000. The suit alleges that Jon and Janet Olch and Sigg arranged to have the land sold to Tim LaPage, Park City, for $335,000, who then sold it back lation of RTC regulations. In addition, the suit claims that Bald Eagle Realty took a 6 percent commission on the sale, as a broker's fee, which also amounts to fraud, the suit contends. The senior assets manager for the firm managing Utah properties for the RTC, had earlier instructed Jon Olch that his firm could not represent the RTC and buy the land, too, according to an Aug. 13, 1993 letter. Thomas P. Morton of the Denver firm of Coopers & Lybrand wrote to Olch: “It is for these reasons that we have made a decision to reject your purchase offer.” The suit says that Martin suffered financial damages of $1.1 million by not being allowed to purchase and develop the land. The land and building at 340 Main Street are presently being offered for sale by Bald Eagle Realty for $2.6 million. Neither Jon Olch nor Henry Sigg returned calls to The Mountain Times. Gordon Strachan, a prominent Park City had The attorney, earlier told Mountain Times that he did not represent Jon Olch in the matter. Several weeks ago, however, Strachan made comments to the local Park City radio station and weekly newspaper, concerning the suit. Strachan, who also has represented the mayor and the municipality on a number of occasions, said Jon Olch and Bald Eagle Realty had done nothing wrong in a radio interview. In a newspaper account, Strachan charac- SOCCER SOFTBALL for girls MOUNTAIN LeOeDeGrE MOUNTAIN AIR OUTDOOR SPORTS cou 1=800-NIKE CAMP Boulder Mountain (1-800-645-3226) Lodge, Inc., Box 1397, Boulder, UT 84716 PAGE to the Olches and Sigg five days later, in vio- ¥6 terized Martin as a poor loser who was attacking an upstanding citizen — Jon Olch — for no just reason. The US Attorney General has determined not to proceed against Bald Eagle Realty with any criminal prosecution, but wants to be involved in any settlement. A letter filed in federal court states: The “action may be dismissed only if the court and the Attorney General give written consent, to the dismissal and their reasons for consenting.” In a second suit filed in state court against Bald Eagle Realty, a Californiabased shoe retailer alleges that Jon and Janet Olch and Henry Sigg defrauded them in an apparent attempt to quali- fy for financing of a structure at 340 Main Street. In a pleading in 3rd District Court, the Olches and Sigg denied the allegations set forth by the Brown Shoe Fit Company. By contrast, they argue, it was Brown Shoe Fit that was intending to force them into a contract, the doc- ument says. According to the Brown Shoe suit, Sigg signed an agreement “basic lease provisions” on March Fit of 18, 1994 with Tom W. Brown that would allow the shoe store to take occupancy of the building in December 1994. In an Aug. 5, 1994 letter, Jon Olch wrote Brown, saying that Sigg had no authority to sign an agreement and that the agreement was used as a qualifier for a loan, according to the suit. “ (Jon) Olch stated the basic lease provisions was merely for a bank’s evaluation of a possible loan application,” the suit states. The “breach of contract” on the part of Jon and Janet Olch and Sigg has harmed Brown’s Shoe Fit Company, the suit alleges. The suit asks for unspecified damages to be determined by the court. Richard Burbidge, a Salt Lake attorney representing Bald Eagle Realty in the Brown Shoe Fit matter, said there was no breach of contract or fraud committed by Jon Sigg. The preliminary was not a binding explained. @ or Janet Olch Escape to picturesque Boulder Mountain Lodge, located at the junction of scenic Highway 12 and the renowned Burr Trail in Boulder, Utah. 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