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Show Litkjdfion Settles Around Popular Bullfrog Resort Bullfrog Marina, on Lake Powell, is currently involved in two lawsuits. One was instigated by the marina against the National Park Service. The other was instigated by shareholders, and is against the marina. ' Claiming a loss of nearly $500,000 in 6 of its 10 years of operation, the suit against the NPS asks to have the terms of a special franchise fee charged the marina extended. According to the information, the NPS signed a 20-year contract with Bullfrog Marina Corp. in 1966, and a franchise fee of 2.2 per cent of gross receipts of the previous year was agreed to. The franchise fees were waived in 19, 1970 and 1971, and a reduced franchise fee of .25 per cent was agreed to for 1972-76. However, the suit says that when Bullfrog asked for an extension of this lowered rate for 1977 it was refused. ' The suit also says that in its 10 years operation, Bullfrog Marina has had profits in only 4 of the years, and that these total $151,896. A projected unaudited loss during 1976 at the facility is $30,000. The marina is, in addition to the franchise fee reduction request, asking for a court order stopping the NPS from starting termination action, and court review of the actions taken by the government. Suit Against Bullfrog Later a second suit was filed in federal court by 7 minority shareholders of the marina against the officers and majority holders of the organization. Filed by Calvin and Wendell Black, James P. and John B.- Rigg, Eugene 'Shumwey, George Petty and James Terrell, tne suit alleges discrepancies in the proposed sale of the facility to Nevada casino owner Del Webb Corp. Defendants are E. R. "Zeke" Dumke, president of Bullfrog Marina; Richard Reuling, Lincoln White and Western States Management Corp. Del Webb Corp., which is not a defendant in the suit, offered to pay Bullfrog $1.4 million for the firm's shares, the suit says. The action claims the defendants have issued millions of shares of stock to themselves at prices below book value, and that they intend to sell these shares to Del Webb Corp. The suit further claims the defendants defend-ants have issued shares of Bullfrog in exchange for shares of stock in temporary other firms for the purpose of avoiding payment of federal income taxes on gains realized. ' The plaintiffs are asking for a temporary restraining order hailing the defendants from taking possession of a $400 thousand payment from Del Webb Corp., along with damages to determined. determin-ed. Del Webb Corp. has Arizona interests and also owns the Sahara Hotel and casino, among others, in Las Vegas. Judge Aldon J. Anderson has been assigned to both of these cases. |