Deer Valley holds onto title

SKI Magazine readers give DV top spot, again
by Nan Chalat Noaker, Record editor
Posted: 09/15/2009 05:26:42 PM MDT

If Deer Valley employees have been tight lipped this week, but now they can brag all they want. Deer Valley has been named the best ski area in North America by the readers of SKI Magazine for the third year in a row. Staffers celebrated quietly earlier this week but were asked to keep the news under wraps until the formal announcement was released. According to Deer Valley President Bob Wheaton, the resort topped five categories including Guest Services, Slope Grooming, On-mountain Food and Dining. As always, Wheaton deferred all of the credit for the honor to his staff. "I am very pleased and proud of the staff that earned this award," he said. Each year, SKI Magazine sends 20,000 ballots to its readers and also collects votes online. According to Wheaton, Whistler Blackcomb in British Columbia, Canada earned the No. 2 spot and Colorado's Vail took third. In the 20-plus years that SKI has been conducting the poll, only Vail has matched Deer Valley's hat trick.

Park City bankers explain credit crunch

Jumbo loans were popular with speculators, now investors won't buy them
by Andrew Kirk, OF THE RECORD STAFF
Posted: 07/31/2009 04:21:38 PM MDT

Ask any Realtor or home builder how they're doing and they often say the same thing: clients can't get "jumbo loans." Those are home loans that exceed a $729,750 limit set by Congress as the maximum amount for loans guaranteed or purchased by the federally-chartered Fannie Mae and Freddie Mac.
That's a relatively small sum when shopping for a stand-alone house in Park City. Before last September, home-financing companies used to brag about their ability to find loans for nearly any amount.
That is because mortgages are usually sold to investors. Before the credit crisis, there were many types of investors. Now, there are few to speak of unless the loans are guaranteed by Fannie Mae and Freddie Mac which still buy the majority of mortgages in America.
But unfortunately for Park City home shoppers, the Federal Housing Finance Agency (FHFA) sets limits on the size of loans they can buy, hence the distinction "jumbo," explained Brad German, spokesperson for Freddie Mac.
The irony is it's a great time to get a smaller loan.
"Wells Fargo has made more loans in the first six months of this year than they have in years. Money is available, plentiful and inexpensive. And it's absolutely true," said Rick Klein, sales manager for Mountain Summit Mortgage, an affiliate of Wells Fargo.
"Frontier remains a very active lender," said Marc Estabrook, president of Frontier Community Bank. "Year to date, we've funded nearly $32 million in loans."
Riley Risto, vice president and branch manager at Mountain West Bank, explained the problem this way: Commercial mortgages; jumbo mortgages; construction loans; and home equity loans or lines are much harder and more expensive to obtain; loans for residential developments; and loans for timeshares, fractional ownerships and condominiums to be used for nightly rentals, are all but impossible to get.
"Unfortunately, these segments make up a significant portion of Park City's real estate market," he said.
Klein said borrowers for the types of loans listed above are "under much more of a magnifying glass today."
It wasn't hard to qualify for a loan in the past, Estabrook said, and those days are gone.
Because the FHFA is backing smaller loans, investor banks are still buying them and local banks are still supplying them. But because there is no security in buying loans not approved by the FHFA, global investors aren't interested, Klein said.
Risto said he believes a correction in the market is necessary and warranted. He said there was a false boom created by a policy of artificially-low interest rates set by the Federal Reserve. The market was alright with "toxic assets" because they moved quickly through the system to companies like Countrywide, then on to the general investing public. Now banks and secondary-market investors "are being highly scrutinized by auditors and analysts for their concentration levels and risk management."
It may seem odd that large loans going for large houses would be trusted less than average homes going to regular Americans in the midst of a recession. Common sense might suggest that someone who can afford a $1 million house is more trustworthy than a blue-collar working trying to buy a $200,000 condominium. After all, job losses are still predicted.
But Risto explained that jumbo loans were popular among real estate investors.
In the old system, a plumber could just declare his income at $1 million a year and qualify for a $1-million loan so he could flip a house. Inexperienced contractors and novice investors suddenly became residential developers during the boom and got loans to create subdivisions. After the credit crisis last September, lenders were left holding loans for over-priced homes and half-completed neighborhoods.
Klein said the result of this national trend is that if banks lend jumbo loans, they've got to keep them. Even if a bank can afford to do that, they're going to price those loans at a higher rate.
Estabrook said his bank has been making those loans and has been keeping them. But a bank that size can only make so many of them.

Huntsman's Deer Valley compound: yours for $55 million

Now on the market, it is 'truly the crown jewel of Deer Valley,' agent says
by Jay Hamburger OF THE RECORD STAFF
Posted: 07/31/2009 04:21:59 PM MDT

Deedee Corradini, the real estate agent listing the Huntsman family compound in Deer Valley, says...

Jon Huntsman Sr., the industrialist and father of Gov. Jon Huntsman Jr., has put his Deer Valley compound on the market, asking $55 million for what is among the prime pieces of real estate in Deer Valley.
The listing agent, Deedee Corradini, said it has been on the market for approximately two months, but there had been little publicity when it was offered for sale. The compound covers nearly 64 acres of land at 5000 Royal St. There is a mansion on the property and there is development potential on other parts of the land.
"It's one of a kind. Everybody says my property is one of a kind, but this truly is," Corradini said, calling the compound "truly the crown jewel of Deer Valley."
The compound covers three parcels, with there being development potential on each of them. They are:
a 40-acre piece of land with one house. The 20,000-square-foot house has 12 bedrooms, 16 bathrooms, a swimming pool, a fitness room, a game room, an artificial pond and an artificial waterfall. It was built in 1989. There is the potential to build another 14 houses on the 40 acres.
a 20-acre parcel where six or seven houses could be built.
a 3.61-acre parcel where one house could be located.
Huntsman wants to sell the three parcels to one buyer, Corradini said. She describes options for a buyer that include continuing to use the house and land as a family compound, keeping the house and selling the other land to developers or building on the other land themselves.
"There are people who want this kind of property. We just have to find them," Corradini said, adding that there are "many potential buyers."
She did not predict what the bids will be, though. She said Deer Valley and Park City have become sought-after places for businesspeople and celebrities.
Corradini said the Huntsman family has not used the compound regularly in recent years, prompting Huntsman to put it on the market. She said Huntsman has been spending more time in Driggs, Idaho, a small city close to Jackson, Wyo., that is becoming popular with people buying vacation properties. Huntsman is a key figure in the Huntsman Springs real estate development there.
Lincoln Calder, the president of the Park City Board of Realtors, said there has been at least one top-dollar sale in the area this summer, with a place in The Colony that had been listed at $23.8 million selling. He is unaware of the sale price, though.
Calder did not discuss the prospects of the Huntsman compound selling, but he said the property it is a rarity in Park City.
"It's a very unique piece of property and will take a very unique buyer with the ability to purchase it," Calder said.

County sets final deadline for Canyons golf course

Landowners who don't comply may lose development approvals
by Nan Chalat-Noaker, Record editor
Posted: 07/31/2009 04:22:10 PM MDT

Wolf Mountain Resorts LC has until Oct.1 to turn over the necessary easements and drop all legal impediments to construction of an 18-hole golf course at The Canyons or risk losing development approvals for a 35-lot subdivision that was part of the original development agreement for the resort. Wolf Mountain is the underlying leaseholder of much of the resort.
Once Wolf removes its roadblocks, other landowners in The Canyons Specially Planned Area have until this coming May 1 to begin construction on the long-awaited course, and until May 1, 2013, to open the course to the public, or all further development at The Canyons involving those entities will be suspended.
According to a 52-page report issued by interim Summit County Manager Brian Bellamy on Thursday, the county has exhausted its recourses for expediting the project, and is setting a new, hard deadline.
The American Skiing Company, Utah (ASCU)'s original development agreement with the county promised a completed public golf course by 2002 in exchange for specific development approvals for several landowners at the resort, but disagreements over the exact outline of the course put the project in legal limbo. As a result, the developers say, they were unable to obtain financing to move forward on the $11 million project.
Bellamy's report details the long, convoluted history of the proposed golf course, beginning with the original development agreement between Summit County and ASCU in 1997 and including the amended agreement in 1999, the soft default and suspension of plats and building permits in 2002, two "standstill" agreements allowing ASCU deadline extensions in 2003 and 2004, Wolf's refusal in 2006 to execute the deeds or sign the plats for the golf course, a redesign of the golf course to exclude Wolf's property, the county's lawsuit and subsequent settlement with Wolf, the sale of The Canyons to the Talisker Corporation, Wolf's lawsuit against Summit County and the county's counterclaim, Wolf's notice of intent to file a lawsuit contesting all of the golf course properties, and finally last June's public hearing that allowed each participating entity a chance to air its grievances and requirements.
The county's apparent willingness to take a tough stand and rescind the development agreement if the parties can't come to an agreement seems to have made a difference.
On Friday, after reading Bellamy's report, Kenny Griswold, principal partner of Wolf Mountain said, " Our negotiations with the county over the past month have been productive and Wolf looks forward to the start of construction on the course next summer." He added, "We look forward to doing our share I think it will be spectacular."
And on behalf of Talisker, attorney David Smith released this statement: "Talisker looks forward to the timely implementation of the County's findings on the Golf Course to be built at the Canyons. With the addition of the golf course and other planned improvements, Talisker will create a world-class all-season resort."
In addition to Wolf Mountain, the county's deadline applies to: ASCU; the Resort Village Merchants Association; Willow Draw, LC; the D.A. Osguthorpe Family Partnership and several other landholders.
On Friday Bellamy told The Record that he is "thrilled to see that people are willing to bury the hatchet to get this going." He added that he is "very optimistic" the landowners will meet the new deadlines.

Bernanke Says Fed Policies Are Sowing Recovery

JULY 22, 2009
By JON HILSENRATH

Federal Reserve Chairman Ben Bernanke made a guarded declaration of success Tuesday before a skeptical and sometimes combative audience, saying Fed policies had helped to set the stage for a modest recovery this year.

In his semiannual testimony to Congress on the economic outlook, Mr. Bernanke laid out the case that growth is returning, saying businesses and consumers could be nearer to a resumption of spending after wrenching cutbacks. He also turned up the heat on Congress and the White House to get budget deficits under control or risk damaging the recovery.
"Aggressive policy actions taken around the world last fall may well have averted the collapse of the global financial system," Mr. Bernanke opened in his prepared testimony, adding later, "many of the improvements in financial conditions can be traced, in part, to policy actions taken by the Federal Reserve to encourage the flow of credit."
Michael Feroli, an economist at J.P. Morgan, called it, "one of the most pointed defenses of the Fed's actions so far" in the current crisis. It had a starkly political undertone, coming as lawmakers consider whether to rein in the Fed's autonomy in response to its controversial decisions in the crisis.
As markets reeled six months ago, the last time he formally briefed Congress on the economy, Mr. Bernanke offered a bleak outlook and vowed to use "all available tools" to stimulate growth.
The Fed projects the economy will be growing again by year end and will expand at a modest pace between 2.1% and 3.3% in 2010. But the job market -- another of the big risks to the outlook -- is expected to lag far behind, with the unemployment rate stalled well above 9% through 2009. The drag of high unemployment, Mr. Bernanke warned, could be a weight that holds back consumer spending and growth.
Investors were heartened that Mr. Bernanke made clear the Fed doesn't plan to raise interest rates from near zero until the job market shows clearer signs of improving and until the other kinds of economic slack -- like unused factory capacity -- are brought down. The Dow Jones Industrial Average rose 67.79 points, or 0.8%, to 8915.94. Prices on inflation-sensitive 10-year Treasury notes rose, pushing their yield down to 3.477%.
Mr. Bernanke also detailed his plans for how he will withdraw -- when needed in the future -- the hundreds of billions of dollars of cash the Fed has pumped into banks. The money went into banks to stop the market meltdown but could cause inflation if not withdrawn in time.
Though lawmakers were mostly respectful toward the Fed chairman, his reception showed he has a long way to go to win over congressional skeptics.
Lawmakers have attacked the Fed's rescues of big financial firms like American International Group Inc. and Bank of America Corp. Now they are considering proposals that would remake the way the central bank operates after the crisis. One popular proposal would subject Fed policy to congressional audits, something Mr. Bernanke strongly opposes. A plan by President Barack Obama would give the Fed more power to oversee big important banks, but many lawmakers are reluctant to add to the Fed's responsibilities.

"The Fed's made some big mistakes," Rep. Spencer Bachus of Alabama, the ranking Republican on the House Financial Services Committee, said before Mr. Bernanke started talking. "Historically, the board has done a poor job of identifying and addressing systemic risks before they become crises."
Mr. Bachus pointed to the near-collapse of CIT Group Inc. as the latest example -- it became a bank holding company under Fed supervision last December and required a private-sector rescue this week.
When Mr. Bernanke said congressional audits would expose the Fed to dangerous political pressure, the bill's sponsor, Texas Republican Rep. Ron Paul, shot back, "It's not like it's not politicized now."
Mr. Bernanke had a different critique of his own -- for Congress and the White House. Earlier this year, the Fed chairman supported the $787 billion fiscal-stimulus plan that passed against Republican objections. Tuesday, the Fed chairman said lawmakers now need to focus on reining in government budget deficits over the long run.
A deficit-reduction plan, he said, could yield immediate benefits in the form of lower long-term interest rates and improved business confidence. If the White House and Congress failed to produce a credible plan to reduce the deficit in the long-run, he warned, "we risk having neither financial stability nor durable economic growth."

"He laid out the Fed's exit strategy and basically said, 'Alright, let's see your exit strategy,'" J.P. Morgan's Mr. Feroli said.
The budget for the current fiscal year released by the White House's Office of Management and Budget in May projects the deficit will total more than $1.8 trillion in the 12 months ending Sept. 30, or 13% of gross domestic product.
Some investors worry the Fed will be forced to help the government finance its growing budget deficits by ramping up its purchases of U.S. Treasury bonds. By speaking out against the deficit, the Fed chairman staked out ground as an independent actor.
Still, he put his hands on a political football. Republicans used his deficit concerns to argue against Mr. Obama's fiscal-stimulus plan and the president's effort to rewrite health-care laws, which could fatten the deficit further still. Mr. Bernanke said lawmakers needed to find ways to hold down government health-care spending.

People's Clinic to move and expand

Services and need for volunteers will increase
Kristina Eastham, Record contributing writer
Posted: 07/21/2009 04:20:31 PM MDT

As the People's Health Clinic is seeing an increase in demands for its services, the move to a bigger facility couldn't come at a better time.
The non-profit clinic, which provides health care for uninsured people in Summit and Wasatch Counties, will be moving from their 1,800-square-foot building on Kearns Blvd. to the new Summit County Public Health Center. Located near the Park City Medical Center and the USSA training facility, it will provide 5,000 square feet of space to the PHC. Services will begin being offered at the new location the first week of December.
With that much additional space, the clinic will be able to expand its services to the public as long as they can find more volunteers to donate their time.
"We can always use more volunteers," said Nann Worel, director of development for the PHC. She emphasized the need for physicians and mid-level providers like physician's assistants and nurse practitioners. "With the new building, we'll have an even greater need."
With a declining economy and increased unemployment, the PHC is seeing an increased demand for its services, especially from people with chronic illnesses like diabetes or hypertension who have lost their health insurance with their jobs.
"Right now we're up 37 percent in patient visits over this time last year and with the new building we'll have more capability," Worel said.
To encourage volunteers, the PHC has started the Take Two and Call Me in the Morning Campaign, which asks local physicians and mid-level providers to donate two hours a month to the clinic. This minimal amount of time, if given by all local physicians, would meet the increasing needs of the uninsured community.
Other ways the PHC is meeting increased needs is by offering new services. Last August they expanded their services to include a physical therapist, Krista Clark, who volunteers her time one evening a week during the winter and one evening every other week during the summer.
She owns her own practice in Midway, Wellsprings Physical Therapy, and is sharing her 25 years of experience in orthopedic manual physical therapy, a sub-specialty emphasizes hands-on treatment to determine the root of the pain.
"I decided to volunteer there because I think physical therapy is an important part of the health care system, and especially when cost-effectiveness is a prime consideration," Clark said.
Generally, in Utah, physical therapy is an entry point into the health care system, meaning it does not require a referral, and can prevent costs associated with test and prolonged medicine use. Physical therapy's proactive approach often helps patients heal more quickly. At the PHC, patients generally see a physician before seeing Clark, who deals with "sprains and strains," that include a lot of back, neck and knee injuries. Patients require services for anything from ski and snowboard injuries to joints that are "irritated from repetitive stress in life," Clark said. "Then I teach them exercises and I teach them body mechanics and how to care for themselves [in order to] stay healthier."
The PHC is also bringing in two local acupuncturists, Melissa and Wyatt Krajewski, who own the local Longevity Acupuncture and Oriental Medicine. The Krajewskis started volunteering their time last week, but, according to their website, are furthering their acupuncture studies in Japan until early August.
Worel said while the clinic's greatest need is for physicians, they welcome licensed volunteers with any specialty who are willing to donate their time.
"They're such wonderful people to work with; both the staff there and the patients," Clark said. "I think as a profession we need to be aware of giving back."
For more information on the People's Health Clinic, visit them online at peopleshealthclinic.org or call 615-7822.

Eat, drink, and tarry at new places in Park City

New establishments, owners and managers coming to Summit County this summer
by Andrew Kirk, OF THE RECORD STAFF
Posted: 07/21/2009 04:20:16 PM MDT
La Casita is gone from Main Street. Reyes Adobe, also a Mexican restaurant, will take its place...

Park City's food and drink scene will be slightly different this winter as several establishments have changed owners or are brand new this summer.
The economy has forced some owners out, but is also presenting opportunities for fresh blood to come in and try their hand.
The Beaver Creek Inn
The Beaver Creek Inn in Kamas is under new management. Stephanie Hardy said she plans on improving the quality of food, lowering prices in consideration of the current economy and staying open longer hours.
Spruce
Food service for the now-open Dakota Mountain Lodge at The Canyons will be provided by Spruce, a San Francisco-based American restaurant that strives to buy local, organic ingredients.
"It uses seasonal produce," explained spokesperson Karey Walker. "Whatever Utah has to offer, the chefs will source ingredients for the day's menu so the menu changes for what's available."
The company has other locations in California, and this will be their first in the Mountain West.
Slated to open July 29, the restaurant will be open to the public, to guests of the lodge and will provide food service to Golden Door Spa guests as well.
"We're very conscious of the Earth," she said.
Lindzee O'Michaels
Lindzee O'Michaels took the place of Kristauf's Martini Bar on lower Main Street.
Co-owner Steve Liebroder said their goal is to carry the highest quality beer and spirits in Park City. The establishment is also stocked with many games, both real and virtual.
Open since May, the bar has already gained a loyal following.
Jupiter Bowl
Summit County's first bowling alley has been long awaited and anticipated. Jupiter Bowl at Newpark Resort has already applied for its liquor license and according to Chris Retzer with the developers it is slated to be open by Thanksgiving. If delays occur, the bowling alley will definitely be ready for this coming ski season.
Reyes Adobe
La Casita is gone from the 710 Main Street plaza next to Reef's Kitchen and Oishi Sushi Bar. In its place, Robert Reyes is opening Reyes Adobe.
The interior is under renovation and he expects to be open in about five weeks. La Casita's kitchen equipment and furniture were all about 10 years old and Reyes said he wants to update everything.
Reyes Adobe will be a Mexican restaurant, but he's bringing in the chef from The Sky Bar and will be offering higher-end cuisine.
"He has great food," Reyes said. "It's going to be different from everything in the valley right now."
It will offer popular favorites, but will not be a taqueria, he said.
Reyes said he has 25 years of experience in the restaurant business, as does his chef.
"We're pretty savvy," he said.
Café 52
The recent changes to Utah's liquor laws have inspired management at The Stag Lodge at Deer Valley to open Café 52. The lodge has always had a private club serving alcohol for owners and guests in the lodge, but it has been granted new status to be a private restaurant, said Scott Sandlin, front desk manager.
Renovation was done to upgrade the facilities and Sandlin said they're pleased to offer more in the space to owners and guests.
Café Trang
Café Trang on Sidewinder Drive changed owners, but the restaurant is still in the family. Gwen Nguyen recently took over from her sister-in-law Vickie Tran. Nguyen said she's expecting no major changes the public will notice.