David Zatz, owner of the company, sent a letter to condominium owners Friday morning announcing a partnership with Phoenix Realty who will take equity ownership in the company.
As part of the new arrangement, Zatz is requesting owners agree to sign a three-year contract. Under the terms of that contract, owners will receive 75 percent of all rental revenue after fees and commissions. The company will hold at least 50 percent of advanced deposits in trust. Owners will be paid back for owed money in four installments of 25 percent, plus interest, with the first payment coming one month after signing. The three following payments will be made on March of each year through 2012.
But while owners willing to speak on the record are hard to find, they do want it said that they don't like being told the conditions upon which they'll receive money owed them.
Jim Jenkins, an owner in All Seasons who has only done rentals for one year, wants the company to acknowledge that.
"It doesn't matter to me that he's promised if I sign up with him for a new contract he will pay me for the old one. He still owes me the money whether I sign up with a new contract or not," he said Monday. "I think generally speaking, people in the rental program feel the same way. That's our money and he owes it whether or not we sign." Although people on homeowner association boards have expressed patience and loyalty to Zatz in the past, none of those same people wanted to be quoted or could be reached for this story.
They're not the only ones. Zatz himself has not returned three requests for interviews in the past two weeks. Because of the silence, it is unclear if Zatz has a proposal for paying back owners who choose not to sign another contract.
Two owners filed in small claims court against the company on June 1, one for $2,000, the other for $5,650.
Detective Robert DeBotelho with the Park City Police Department said their investigation of a fraud and theft complaint against the company on May 8 for unpaid rental income is ongoing.
DeBotelho said he's mostly waiting to see what Zatz does to resolve the issue himself.
County attorney David Brickey said that's wise because like other disputes over failure to pay for a product or service, the best cure for everyone is a civil resolution. It's sound advice to wait and see what happens, Brickey said.
"As far as we're concerned, we're looking at it on an individual level," DeBotelho said.
In addition to the letter sent Friday, Zatz included the new contract to read and presumably sign as well as a "contract comparison matrix" comparing the services and promises offered by his company to those offered by ResortQuest, Lespri and Park City Lodging to argue that his company is worth sticking with.
In the letter, Zatz promotes his proposal as a good resolution.
"This is good news for all," Zatz wrote in the letter. "The contract we have provided is a big departure from our previous contract based largely on the feedback we have received from unit owners and the changing rental management playing field in Park City."
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