Park City hotel assets slated for tax auction
May 1, 2018
Six properties tied to Main & Sky, a hotel along Main Street, are scheduled to be sold later in May in a County Courthouse sale of parcels with unpaid property-tax bills, a rare case in the post-recession era involving such a high-profile Park City property.
Main & Sky, still widely referred to by the former name Sky Lodge, occupies a sought-after corner at the intersection of Main Street and Heber Avenue. A firm known as Argentum Sky LLC owns the six properties.
According to the Summit County Auditor's Office, $419,765.74 was owed on April 24. The total includes $353,259.57 in unpaid property taxes, $56,174.67 in interest, $8,831.50 in penalties and $1,500 in fees. Summit County Auditor Michael Howard said property taxes have not been paid on the parcels since 2012. An attorney representing Argentum Sky LLC said the six properties are commercial spaces and no residential interests are involved.
In a report drafted for the Summit County Council, Howard details proposals for a payment schedule crafted by his office and the Argentum Sky LLC side. The County Courthouse's proposal calls for the owner of the properties to pay the taxes, interest and the penalties by 10 a.m. on May 17. Doing so would remove the properties from the sale later that day. An alternative offered by the County Courthouse calls for the taxes, interest and penalties to be paid on an installment plan of $22,000 each month starting in August with a balloon payment in the final month.
The Argentum Sky LLC side provided a counteroffer for repayment. One of the firm's proposals calls for it to pay $353,259.57 to cover the unpaid property taxes at once. The proposal requests the County Courthouse waive the interest and penalties. The other one involves paying the back taxes and interest at a rate of $22,000 per month starting in August with a balloon payment at the end. The second proposal requests the penalties be waived.
The county auditor in an interview outlined that unpaid property taxes have broad impacts on public entities that rely on the revenue. Property taxes paid within Park City are distributed to entities like City Hall, the County Courthouse and the Park City School District. He said there could be budget shortfalls as a result of unpaid property taxes.
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Howard said his office treats property owners the same, indicating paying taxes is a "shared public good."
"Do I like having to do this? No, I don't," he said.
State records identify Kenneth Abdalla as the manager of Argentum Sky LLC. He has been active in Main Street real estate in the years since the recession. Joe Wrona, an attorney who represents the Argentum Sky LLC side, addressed the Main & Sky issue in a prepared statement.
"Ken Abdalla and his wife have been in the process of winding up their marriage for the past few years, and they have been struggling to decide how to divide up their family's various real estate holdings and other assets. As is so often the case when marriages are dissolving in Park City, they have not been able to agree on who should be responsible for paying the carrying costs for various assets while they have debated which one of them will ultimately be given the equity from those assets. With regard to the Sky Lodge assets, they obviously need to pay the taxes that are owed, and they will do so," the statement said.
The Summit County Council is scheduled to address the situation on Wednesday, May 2, with the possibility of a vote at the meeting. The meeting is scheduled to start at 2:15 p.m. in Coalville with the discussion about the Main & Sky properties slated to begin at 4 p.m.