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Feather River Bulletin
Quincy, California
October 20, 2010     Feather River Bulletin
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October 20, 2010

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Feather River Bulletin Michael Schoff's Gold Mountain holdings Gold Mountain - Nakoma/golf course bankruptcy trusteeship 56 parcels 8timeshare weeks 9 assortments of personal property and defaulted tax bills Purchased May 2010 by Michael Schoff for $900,000 plus approximately $893,000 in back taxes, penalties and interest At the time of the sale, Assis- tant Tax Colrector Julie White estimated accumulated tax due at about $909,000. Several of the 56 parcels were reassessed in 2006 and again in 2009 by Plumas County Tax Assessor Chuck Leonhardt to reflect bank- ruptcy values as well as market fluctuations. Of the 56 parcels, three are of particular importance: the Nakoma clubhouse and restaurant and two parcels encompassing the golf course. (See chart) Gold Mountain lots Remain- ing unsold lots purchased from three entities (including two banks), $3 million. Number of lots unknown, not a part of bankruptcy. DRAGON, from page 1A So, will the Dragon blast or get the best of new owner Michael Schoff?. Five months after the sale of Nakoma, Schoff has paid $205,000 to Plumas County, the remainder of the indebtedness in dispute between the two. Schoff requested deferment of his opinions and discussions of the tax issues until after he returns from a European busi- ness trip later this month. The fSllowing article is Part I of a two-part series. The first part will focus on the county's perspective, as well as a nar- rative of the events thus far. Schoff and Nakoma Associ- ates will be featured in the second part, appearing in ear- ly November.o it ' :   la3J JII HLIIILU ,LJLI.UHII LLLI MIIIWIIIIliilU Wednesday, Oct. 20, 2010 9A AXES, from page 1A golf course. After the bankruptcy trustee's sale, Schoff brought other figures to the assessor's office that he be- lieved had not been consid- ered. He also wanted to point out vole damage and broken pipes in the golf course and significant damage to Nako- ma's roof and interior, also due to broken pipes. As a result, Leonhardt not only reassessed the three properties downward (see Charts), he went back three years and lowered the Val- ues for those years as well. That is as far back as the law allows for after-the-fact re- assessment. " That impacted the back taxes by lowering them and refiguring penalties and in- terest. Some interest was re- duced in that fashion. In addition, after re-as- sessment, a property owner has 30 days to pay minus all penalties and interest for the reassessed years. Julie White, assistant tax collector and tax collector- elect, calculated $60,236.14 in interest and penalties were erased for those three years and those three properties. Schoff paid the county $205,820.61 for those four years and took out a pay- ment plan on the 2004 and 2005 defaulted taxes. The payment plan is divid- ed into five equal annual payments (includes 1.5 per- cent interest) of $55,042, with the last payment due April 2014. The lower valuations have other impacts as well. Plumas County Auditor Shawn Montgomery admit- ted many impacts of the na- tional economic reversal are only beginning to become apparent locally. How Proposition 13, using lower real estate Values, plays out in the future is un- certain. Currently, the Nakoma Golf Resort is valued at less than one-quarter of its 2004 assessment. At a 2 percent allowed in- crease per year (if not sold or improved), simple math would mean that it would take 200 years to reach its former value. It's a "compound world"; in reality it would be less time, but still well beyond human life expectancy. That significant issue can be expected to affect all county budgets in California in the near and ongoing fu- ture. market value similar to oth- er property." Once a property is re-as- sessed, it becomes tax collec- tor Susan Bryant-Grant's job to figure out the bill and keep track of penalties and interest, as well as to config- ure payment plans. White said the villas and timeshares at Gold Moun- tain have also been recalcu- lated to Schoffs advantage. Far-flung effects White spent a great deal of "How in fairness can we .single out one wealthy taxpayer for such relie00. " Jack Ingstad County Administrative Officer In Nakoma's case, much of the latest devaluation is due to damage. Leonhardt will revisit the case when the damage is repaired and re- flect that improvement in its value Par for the course But golf course communi- ties have been declining in recent years and may never regain the value they once had. Leonhardt said, "As a gen- eral rule, golf courses have been over built around the country. Many of them were built to attract buyers for subdivision lots in develop- ments similar to Nakoma. "A correction in the real estate market and overall economic contraction have reduced the number of golf rounds played in many mar- kets and stressed the finan- cial statements of the cours- es that are in business. "Regionally, l am told there are a number in bank- ruptcy and foreclosure at this time. I am continuing to try to follow the sales data and expect the need to do so for the foreseeable future. "Owners of courses are en- titled to the benefit of the lower assessment of either Proposition 13 or current time gathering data for this article and explaimng proce- dures to benefit public un- derstanding. She and Montgomery ex- plained how the devalua- tions impacted not only Schoff and county budgets, but service districts, schools and hospitals. Plumas Coun- ty is a "teeter" county, Mont- gomery said, which means the county fronts the pay- outs to special assessments. "It is based on charge, not on collection," Montgomery said, and a special reserve trust is set up to maintain that ability. When Nakoma taxes went unpaid, the county stepped in and paid from its reserve. In that district: Plumas County, Plumas County .Flood Control District, Mo- hawk Valley Cemetery, Por- tola Cemetery, Eastern Plumas Health Care, Gold Mountain Community Ser- vice District and all the school districts (including Feather River College). They were, of course, paid at the higher rate of valuation. With reassessment, their allotments were also re- duced, because now they had been overpaid. Next year's tax receipts are reduced by the amount previously over- paid to the agencies. Montgomery said the county could not do that for the school districts, because the state then had to pick up the difference and the state was not willing to do that. In that case, Plumas County must "eat the difference." Districts' payments are paid through a complicated "factor" system; property de- valuation affects the fac- tored amount. In Gold Mountain CSD's case, its factor fhis year has decreased by 2,405 percent, resulting in negative $16,000. The county does not take money from CSDs, so, again, the county must "eat it." By comparison, Mont- gomery said the next CSD in line to show a decline was a decrease of 4 percent, nowhere near the 2,405 per- cent experienced by Gold Mountain. All the entities listed above were impacted: EPHC, for examDle, experienced a 2.4 percent decline, consider- ably smaller because it has a broader tax base than just Gold Mountain. Ongoing negotiations Isaac Rothschild, attorney for Schoff, has submitted a proposal to Plumas County offering two approaches whereby the Nakoma tax bill could be further reduced. In essence, the county has re- spectfully declined. In his response, County Counsel Craig Settlemire said, "It is our understand- ing that your client know- ingly bought the property from the bankruptcy trustee as to the accrued taxes, penalties and interest and undoubtedly received a low- er price giving credit for such encumbrances. "Now your client seeks to be credited for such taxes, penalties and interest a sec- ond time." Plumas County Chief Ad- ministrative Officer Jack In- gstad also weighed in on the issue. "Although the CAO doesn't have the authority to reduce taxes, it is my opin- ion such a reduction would k. Schoff holdings Plumas and Sierra counties Gold Mountain-Nakoma golf course bankruptcy trusteeship, 64 parcels Purchased for $900,000 plus approximately $893,000 in back taxes, penalties, and interest (see breakdown) Gold Mountain - remain- ing unsold lots purchased from three entities, total- ing $3 million. Number of lots unknown, not a part of bankruptcy trusteeship. Feather River Inn, Blairs- den, 58 acres, plus 37 acres adjacent to Mohawk Ranger Station Purchased from University of Pacific June 2005, $2,975,000 Additional 18 acres and home, purchased from pri- vate landowner, $990,000 Sprague motelresort in Cromberg, four acres on Highway 70 Purchased in 2006, $1,400,000 Parcel - Airport and relat- ed, Plumas County Valued at $42,656 Calpine Ranch, Calpine, Sierra County, 544 acres, existing home (3,250 sq. ft.) barn, oUtbuildings Pur- chased in 2005, $3,250,000 be a gift of public funds. The county budgeted $375,000 in tax penalty revenue this fis- cal year. Without that in- come, the county will be forced to consider additional reductions to public safety, libraries and other commu- nity services. "How in fairness can we single out one wealthy tax- payer for such relief?." Editor's note: Schoff's opin- ions and proposals for set- tling the question of defaulted taxes will appear in a second article in early November. Joseph Aasved Bill Abramson Joel Allen Andy Anderson Terryann Arceo-Pate Todd Aylward Susie Barker Ron Barker Bob Battistom Terry Bergstrand Dina Bertoli-Graham Paul Bianco Kerry Bowling Junior Bozeman Virginia Bozeman John Breaux Will Broad Steve Brown Susan Brown Cobey Brown Doyle (Gene) Butler Linda Butler Bill Carlson Richard Cannichael Loretta Castleberry Kenny Chance Robert Choate Amanda Clainnont Bonnie Clark Julie Clark Troy Clark Steve Clark Mike Clark Sharon Clark Jim Clatte Patty Clawson Michael Clawson Paul Cortez Theresa Crews Anna Day Robert De La Riva Bernice Dean Cary DeMars Joe Dietrick Duff Dupont Nina Dupont-Stone Ernie Eaton Kim Eliason Elizabeth Farr Rex Fisher Cheryl Fonseca Joey Fowler John Frazier Julie Frier Michael Furry. Virginia Gabora Linda Gamberg Mike Gamberg Derek Gay Katie Gay Gary Gottlieb Darlene Griffith Marian Haid Jim Harper Jennifer Haverfield Califomia United Homecare Workers Jeremy Inman Ray Irons Joel's Automotive Steven Jones, Tom Joyce Attn, PAID POLITICAL ADVERTISEMENT Elect Jon Kennedy , Supe00isor District S "I'm wondering what it will be like to have a real County Supervisor in District 5. One with a little bounce in his step, one that will say, 'what about the people?' One that will find out the need and do something about it. It is time for some new blood and a vision for growth. A mover, a shaker and a red tape shredded! ... With today's economic struggles, sleeping on the job can't be tolerated. I say Vote for Jon Kennedy! He is wide awake and wants to serve YOU in YOUR district and represent YOUR interest in Plumas County." ~Andy Moser "1 have known Jon for a long time. I have always admired his 'Can Do' attitude and when Jon says he will do something, he follows through like all great leaders. Its time for a change - Vote for Jon... YES HE CAN, YES HE CAN" -Gus Kyriakos It factor "...As a creative, ambitious entrepreneur, dedicated parent, former fireflghter and active member of our community, Jon combines a broad base of real-life experiences with a deep concern for the success of our county .... In life, many have the aptitude to become leader, but few have the "it factor' necessary to accomplish great things. Jon has this intangible ingredient, plus the desire tO listen and offer encouragement and empathy to others." -Jeremy Inman "Jon Kennedy is a hard working honest man. If you want someone in office who is more interested in working for the people ~Cr Frier "1 am writing this letter in support of Jon Kennedy for county and professionally. The Kennedy family has been a permar rare opportunity to elect a local, big-hearted, intelligent JP Kennedy supervisor, we can rest at night knowing I -Dr :han politics, then he is the one to vote for." ig Phillips id in need supervisor. I have known Jon (JP) for many years, both personally tent fixture of Plumas County since the early 1900s .... We have a nd passionate ally to represent Plumas County. And if we elect e will fight for us the same as he fights for his good friends." ,ff Dupont Best of hearts "1 have known Jon Kennedy for many years .... From my point of view, I see Jon Kennedy as a very intelligent individual with a strong knowledge of civics and finance. I believe he has the best of heart } and would be an effective and levelheaded Plumas County supervisor." -Jot, Trul, "Over the past several weeks there have been many cre However, none have touched on Kennedy's natural m position he is seeking .... Achieve real solutions for ~Nina nny Moore t amazing 5ible letters in support of Jon Kennedy for District 5 supervisor. ,=diation and problem solving skills, which are essential to the "eal problems, vote for Jon Kennedy, District 5 supervisor." )upont-Stone W'e need "...I believe that Jon is running for office for all th, state of our county, educating our children, hel fresh perspective that only Jon Kennedy can pro -Antoine; Mail-In Voters: Absentee Ballots must be receivec Jon Kennedy 836-1674 .= right reasons: He cares! He cares about the economnc ;)ing local businesses and public safety. We need the 'ide:We need Jon Kennedy for Supervisor of District 5." te Quesenberry Carol Joyce Kimberlee Kayton Kim Kayton Gehrig Kemp Dick Kennedy Wendy Kennedy Edward Kennedy Troy Kennedy Bob Kennedy John Kennedy Starra Kennedy Rowdy Kennedy Jason Klemesrud Erin Klemesrud Karen Kulm Paula Lawrence Sandra Lee Dan Leonhardt Jason Lewis Mike Lewis David Ludington Mike Manit Tim Marquette Lori Marquette Calla Marshall Tad McCormick Mitch McCormick Jennifer McQuarrie Lorne McQuarrie Axin Meisenbeimer Brad Miller Jenny Miller Judy Moore Johnny Moore Paul Moore Andy Moser Cindi Moser Eric Nogleberg Michael Peters Loft Pini Ambrose Pollock Michele Pollock Mario Pometta Darrell (Red) Powell Sherry Prosser Heather Prosser Michael Quesenberry Antoinette Quesenberry Angel Quinn Kelly Quinn Stacy Saez Alex Saez Tim Schooler Joyce Sears Lilian Seizer Mallary Skidmore Joseph Soldis Mike Summerfield Cliff Sutton John Svendsen Tara Turner Jennie Turner Wilson Estres Wellings Ryan Wellings Jamie White Ted Williams Linda Williams Tiffany Williams Ben Windle Arthur Wolf Zoe Wolf Nonna Wood by Election Day, Nov. 2. PostmarksDO NOT COUNT. P.O. Box 147 Graeagle Paid for by the Committee to elect Jon Kennedy, Supervisor District 5, 2010. I mlll@lilllllIldlllllll lllllltlNllllll00!ll]l00llllllll]lli|lltlllllllnlaHllllmlmlm ]l00l0000lll00l|l! El i IIl111 Bi lie ] Wtll llll,{i00lllil00llBunniHIl-0000ii00-i00i