Letters to the Editor
May 13, 2009
Over the past few weeks I have read Park Record articles and editorials concerning both property management companies defaulting on contractual requirements by not paying moneys due owners and, in Deer Valley Lodging’s case, also bouncing checks. I do not own property managed by either company and therefore my perspective is somewhat different
I was appalled when reading in The Park Record (April 22-24) the excuse given by Deer Valley Lodging concerning April 7 payroll checks that "would not cash." Their excuse, according to The Park Record, was quoted as, "We did not expect the run on the bank that occurred yesterday where a high volume of payroll checks were cashed." How insulting to employees whose checks "would not cash." Deer Valley Lodging wrote checks with insufficient funds, which is breaking the law.
In letters to unit owners dated March 27 and April 10 respectively, David Holland Lodging stated that not paying owners moneys owned was "due in large part to the severe national economic crisis" and "in past years when we did not meet our rental projections we were able to use our reserves and borrowed funds to make up the temporary shortfall." In other words, a downturn in business and the inability to get credit are the primary reasons for default of contractual obligations.
It is obvious that management does not set aside the owners’ portions of rental funds, but uses them for other expenses and at the end of the month pays owners with reserves or borrowed money when shortfalls occur. This co-mingling of funds, while not illegal in the state of Utah for this type of enterprise, is certainly a poor business model. Also, January and February 2009 statements from David Holland Lodging to at least one owner showed a list of deductions for utilities and HOA dues subtracted from the total owed to that homeowner. At the date of those letters, the utilities and HOA dues, in fact, were not paid.
What is called "a run on the bank" as an excuse for bounced checks, or "national economic crisis" and inability to use "borrowed funds to make up the temporary shortfall" as an excuse for defaulting on contractual obligations sounds familiar. It is, of course, taking money from one person to pay another, depending on borrowed money to pay obligations and, when this fails, using the economy and a run on the bank as excuses for defaulting on contracts and bouncing checks.
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In summary, it’s logical that this is unethical, poor business and probably more.
Dr. David C. Ludema
Pinebrook roads need repaving
I invite all of Summit County to take a drive through the roads of our area: Pinebrook. The roads are full of potholes, crumbling pavement, overlays, patches that are in disrepair, hammered bump-outs/speed bumps and, last of all, filthy and crumbling with leftovers of past slurry seals. It is time the county begins to think about an actual repaving of roads such as Wagon Wheel Way, Pinebrook Road, Buckboard Drive and Ecker Hill Drive. Having Derrick Radke tell a neighbor that it "keeps the traffic slowed down" is out of line! Our property values are even further depreciating because of neglect and poor care of our roads. Water drains across the road on Wagon Wheel Way causing a slick ice patch that many a teen has slid off the road! PLEASE consider repaving the roads in Pinebrook and not just crumbling overlays of that disgusting and nasty slurry seal that ends up in all of our homes and yards!