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Show Park Record Thursday, April 23, 1987 Page A3 n r n UAUIJIU Fridays and Saturdays LAULSo '-.nam iff " , , . ..ft From left, water attorney Steve Clyde and financing consultant IX Kent Michie describe their scenario for resolving Summit Park water problems. County creates Summit Park water district with resolution by HEIDI WEST Record staff writer The future for Summit Park water is looking a lot rosier these days, as no objections were raised to a homeowners plan discussed at a public meeting Tuesday night to form a special service district. Seated in tiny chairs normally reserved for kindergartners at Parley's Park Elementary School, homeowners listened as water attorney at-torney Steve Clyde and financing consultant D. Kent Michie (both hired by the homeowners) described the scenario they had in mind for resolving the water problems Summit Sum-mit Park has been experiencing for years. The citizens would become a governing body with limited powers by forming the district, said Michie, who noted that would then qualify them for low-interest loans from several state agencies. If the district wanted to acquire the existing, privately owned Summit Park Water Company, andor improve the water storage and delivery system, they would also be able to issue tax-exempt bonds . The loans, obtainable from the Utah Board of Water Resources, the Utah Safe Drinking Water Committee, Commit-tee, and the Utah Community Impact Im-pact Board, could be repayable over as many as 40 years and at as low an interest rate as zero, said Michie. Although the homeowners are presently negotiating with the water company for a purchase price and other conditions, and so would not release these numbers, Clyde mentioned men-tioned bringing the system up to speed would run "about a half-million half-million dollars." One resident complained he and his family had only had water for "two or three days" in the last billing bill-ing period, yet had been asked to pay the full $30.30 by the water company. "Boiling snow gets real old," he said. The same resident asked Clyde and Michie why the subdivision wasn't equipped with a water supply "built to code." "I don't know why we have to pay for these so called improvements," he said. Clyde replied Summit Park was built in the '60s and "probably met the code then." But, he added "it had not been kept up." Clyde said the water company was a utility, and so should have gone to the state Public Service Commission (PSC) periodically to request rate increases in-creases to make necessary repairs. But they didn't, he said, noting "their management style has been less than adequate." In 1985, the Summit Park Water Company applied for a huge rate increase in-crease from $13.29 to $82.90 per month. Residents protested and the PSC granted an interim increase to $30.30 in July 1985. This rate is still in effect, and hearings slated to discuss the final increase have been postponed pending the outcome of the homeownerwater company negotiations. Meanwhile, the homeowners have been' experiencing turbid (cloudy) water, broken lines and no tap water at times. Their system is currently rated as "not approved" by state health, Michie said Tuesday. "That is the worst category, and carries some economic consequences," he said, commenting the FIIA will not carry loans in areas without approved water. "This district is the best possible solution to you as homeowners," said Clyde, who laid out options available to residents. "You could go to the rate hearing and get money owed to you." The strategy would cause the company to fold, said Clyde, and that would mean homeowners would probably have to buy it out of bankruptcy a procedure pro-cedure which would have the same results and take longer than the recommended strategy of buying it outright. "Or the company may stay healthy and find an outside investor," in-vestor," he continued. Clyde noted the company would still have to increase in-crease its rates to make improvements. im-provements. Under the preferred strategy of forming the district and taking over the water company, the homeowners would "be in control," he added. Residents agreed. "This is the best way we can go," said Richard Hoffer, a Summit Park homeowner who said he "had looked at the situation situa-tion over the last year a nd a half . " "There is nothing else we can do about what happened in the past," he added. Summit County Commissioners Jim Soter and Tjjmi Flinders agreed to pass a resution forming the special service district Tuesday. Their action begins a 15-day formal filing period for any who wish to protest pro-test the district. If the required majority ma-jority of property owners do not object, ob-ject, homeowners will then be free to form a district governing board and explore financing options Demise of mountain lodge is delayed, ski area official says by JOHNKINCH Record staff writer A building demolition permit for the old Silver King Boarding House (Mid-Mountain Lodge) has been issued by Summit County for the .J'ark-Cityki Area-. But, according to Phil Jones, president of the ski area, the building will not be demolished on April 27, as originally planned. "We have the demolition permit, but we're going to delay a bit. Not for very long, though," Jones said. In the last two weeks Jones has been talking to some Park City business people who are interested in buying the building. At the Historic District Commission Commis-sion Meeting on Monday, Park City Planner, Suzanne Mclntyre, said Jones and Craig Badami, ski area vice-president, have been discussing moving the building to a different location and using it as a restaurant. The 90-year-old structure, which once served as an eating hall for Silver King miners, was used by the ski area for a short period as a restaurant until the end of the 1986 ski season. Jones said the location was too poor for business, so they closed the restaurant. And now the building is an obstruction for snow-moving equipment which needs to pass on the road near it. The Park City Ski Area decided to tear the building down after it concluded con-cluded it interfered with snow equipment equip-ment and might obstruct a new lift going in the area. The building was too costly to insure, move or renovate, it also said. On March 30, David Hampshire of the Park City Historical Society discussed the fate of building with the Historic District Commission, and the following week with Phil Jones. Jones said he was more than willing to do what had to be done to save the building, but the ski area would not bear the cost. The Historic District Commission Commis-sion which does not have legal jurisdiction over the building because it's outside the city limits has contacted several people and businesses to help save the building. Mclntyre said J.J. Johnson & Associates, a Park City architectural architec-tural and engineering company, has donated its skills to study the feasibility of relocating the building. Ed Osika, vice-president of United Park City Mines Company which leases the land the building sits on to the ski area, is willing to help. Jim Ivers, who was worked at the Silver King Mine as an engineer, will research the history of the boarding house along with Hampshire. Mclntyre said the Historic District Commission is encouraged with the progress being made. "We're going to explore the pluses with this," Jones said. "We'll know in the next three to four weeks." IFA bonds still attract county by HEIDI WEST Record staff writer It's unclear whether the back-tax-collecting authority created by the Utah House of Representatives this session can issue tax-exempt bonds, but even if the bonds have to be taxable, tax-able, "they are still attractive and there is still a market for them," ac-cording ac-cording to Summit County Treasurer, Glen Thompson. Thompson, who along with bond attorney, Blake Wade, and investment invest-ment banker, David H. Miner, Tuesday Tues-day asked county commissioners to form the interlocal finance authority (IFA) set up by HB 249, had informed inform-ed them last week there may be a major roadblock. According to an article in Bond Buyer magazine, counties in Michigan the state which pioneered the idea of bonding for back-taxes "stopped selling special debt issues called delinquent tax notes because of fear that the Internal In-ternal Revenue Service may no longer view the securities as tax-exempt." tax-exempt." Although Wade speculated the counties "may have found some way to gain arbitrage (investing money raised by bonds for profit)," Miner explained to commissioners this week that the IRS simply "wants to reconsider its position" on a private letter ruling it issued for the Michigan case in 1978. Despite the confusion over whether the IFA can issue taxable or tax-exempt bonds, Thompson advised advis-ed the commissioners to take the next step to create the authority, The resolution to form the IFA would then be mailed to all of the county's taxing entities to ask if they would like to be a part of the bonding agency. Since the entities have 30 days to decide whether or not to join, Thompson told commissioners that not going forward with the resolution resolu-tion would result in lost time. It will be up to the IFA board whether or not to issue bonds if they are indeed ruled to be necessarily taxable, he said. Miner explained taxable bonds would have to be issued at interest rates two points higher than tax-exempt tax-exempt bonds. And, those who purchase pur-chase the bonds would have to pay yearly taxes on them. But despite the changes, Thompson Thomp-son said his research on the issue indicated in-dicated issuing "taxable bonds would be a viable alternative." Thompson also told the Record that one of the positive aspects of taxable bonds would be that "there would be no link to the $5 million limit" imposed by the IRS on local governments for borrowing and investing in-vesting at a profit. The IFA could theoretically invest as much money as it could borrow for high returns. The commissioners agreed to pass a resolution creating the IFA, and signed letters to all the county's taxing tax-ing entities asking them to indicate their interest. 5 PM THE YARROW A tempting story set in cozv restaurant, starring alusciousbutfetofprime rib, seafood special of theweek, vegetable and potatodishes,satadsand fresh fruits. Running time. 5-10:30 p.m. OH'A-S'H-Slingersewesup another umnspireddinnennadrab and drafty diner. gpM (f$ GIMME A STEAK! A raw. acheapsteakhouse. 6,3 soupysagaof-goingouttodmner". BPM oMIAMiRlCECrime Tubbsdiscoveritgoesagainst theirgraintobeoverchargedand underfed.so they roller sleeves to prove that buffets MOVlE-"AViewtoaOIH.'' esBondlRrMooreiruns isbunsorfhopingfoketchupto nemesisGrace Jones, ww relishesmakingthemasseseat 9PM Angelafindsherselfsuddenly a,oneafterservingyet another creative-chickendinnerathome. All-you-can-eat UFFET- Fridays and Saturdays 5-1 0:30 p.m. Don't miss our other specials Lunch Break A great meal deal! Monday-Saturday 11:30 a.m.-4:00 p.m. $2.95 Nightly Dinner Special Your choice of meat or fish Daily 5:00-1 0:30 p.m. $4.95 Sunset Steak Dinner Daily 5:00-1 0:30 p.m. $5.95 Sunday Brunch Eggsorcise your hunger Sundays 11:00 a.m.-2:00 p.m. $12.95 Seniors $9.95 Children $5.95 Park City's Gathering Place Resort Hotel & Conference Center 1800 Park Ave. 649-7000 H CHAMBER E PARK CITY BUREAU Wishes to Thank Deer Valley Resort Park City Ski Area Park West and the entire business community for their outstanding contribution to Park City's '86-'8 7 season. -pirirjiiu. m Chamber of CommerceConvention & Visitors Bureau |