I have been doing some research on Mr. Peterson and the Malan's Basin property involved with this proposed project. I don’t know if any of this is significant or completely accurate because I am not a professional and I have 0 experience reading property descriptions and plate maps. I hope someone on this site will double check me and post a response. I believe the property Mr. Peterson purchased are the following parcel #'s:
- 05-001-0001
- 05-001-0003
- 14-109-0002
I did a business entity search on the Utah division of corporations web site and found a few hundred listings for Salt Lake Exchange Accommodations LLC. The only difference between them being a # change. Incidentally Salt Lake Exchange Accommodations 154 LLC's business license expired on 05/09/06 . Most all of these business entities including 154 name Ray M. Beck as the registered agent and manager. Mr. Beck, a Salt Lake attorney, is apparently the poster boy for IRS section 1031 code, like kind exchanges , a tax deferment loophole for real-estate investors.
As someone who found the original gondola proposal intriguing I am disgusted at what it has become. I hope that this information is not new but might help put together the puzzeling quandary that is being push upon the citizens of Ogden.
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Comments anyone?
11 comments:
IRS 1031 exchanges are pretty common. They are mostly used by people that are taking the build up equity in their homes and trading up to more expensive homes. Under this exchange, you can roll your profits in one home into the costs of another so that you do not have to pay a big chunck to the IRS when you sell your house and buy a bigger one. Ultimately when you sell the new house, your cost basis for tax purposes will be based on your original cost for the original house.
This code can also be used for sheltering some money when trading down in house values. It also applies to rental properties and other real estate investments. In order to qualify, you must trade into a "like" property. For example if it is a single family home, you must trade for same. If a rental property, the same.
The third party aspect is that some one other that the seller and buyer must hold the money until the whole set of transactions are competed. This is mostly done by title companies or bank trust departments. the purpose is to prevent people from retro-actively claiming this benefit. You must declare the whole thing in front!
It is a section of the code that is used by a wide range of property owning individuals and is a real benifit to them. It also obviously is one that is regularly abused by real estate operators and other hustlers.
So, the question is, is Peterson's lawyer known as a 1031 attorney, or an attorney that abuses the 1031 code? What say ye info insider?
That's great research work! However, as much as I'd love to use any of it as ammo, unless there's something else there, it might not do us any good. Of course a real-estate speculator is going to have a lawyer who specializes in real-estate tax on the payroll.
Also, as much as I'd like to, I never mention the status of C.P.'s marriage. I mean, what does that have to do with the L.O. camps' lies and propaganda?
I'd really like to know what the guy's net worth is. Does anybody know if he ever ran for office, and hence had to make public his tax records? This "$500 million investment" B.S. is really annoying, and hard to kill. People I talk to make it sound like Jolly Ol' Saint CP is going to go around and hand out million dollar bills to the orphanages and schools of the city just because. Welcome to Utah, capital of white collar crime....
Don't people realize he couldn't find real financial backers for the M.B. resort, and then his team of whiz kids hit upon the sale of the public bench one evening after too much green jello? Don't the folks on the bench w/ the Lift Ogden signs in their yards realize that the two things which make their property more valuable than the same property elsewhere is the low traffic density and proximity to open space? Don't they realize they are advocating the end of the things that makes their property valuable in the first place?
Now available! West side of Harrison prices at a convenient East side location!
Welcome to Utah. Please turn off your brain.
Your humble blogmeister elevated the above article from the comments section because it raises a variety of interesting questions. Thanks for the research, V! (and thanks for the "attorney" link, DIan).
First, Peterson's attitude toward his property tax and corporate franchise fees demonstrates a certain "laxness," and raises the question of whether he would diligently perform the many promises he's been squawking about.
Secondly, he's been absolutely silent about the means by which he intends to acquire our Mt. Ogden Parkland property. Could a land-swap be part of the plan? The fact that he seems to be working with a property exchange specialist may be telling.
Blessed Mayor Godfrey and others have also repeatedly mentioned "annexation" of the Malan's Basin parcels. This would make little sense unless the nit-wits on nine secretly expect that Ogden City will ultimately own the property through a swap.
So many questions...
So few answers.
Well, until we know if Peterson has any money of his own, one speculates that his bucks come from his wife.
So, to me, Mercy's question about his marriage is valid. If, like John Kerry, his claim to business fame and FORTUNE comes from marrying into money, and he is divorced...does the money tree wither?
From the scuttlebutt, CP is about as popular with Earl Holding as the proverbial skunk at a garden party.
I say "good job' to the slueths, V and OzBoy.
Hey anonymous, we really should do lunch some time.
"Welcome to Utah. Please turn off your brain."
So, so true...
Robin Hood in reverse REPUBLICANS at it again!!!. Lets take from the workers because their not smart. Us REPUBLICANS are anointed because we know best.
Lets build a convention ctr. It will attract businesses. Woooppps, that didn’t work. Tax payers cost Ogden City 300k, Weber County 400k, and Weber State Students 250k per year. Now let’s do a Rec. Ctr. That nobody can afford. Wooppps now lets build a Gondola that’s the answer ya. Ya. Ya. That’s almost as hot as my wife Morgan Fairchild. Ya she’s my wife Morgan Fairchild.
Come on Ogden City Administration stop screwing the cops, firefighters, and teachers. Their the most honorable profession. Give them the honest wage they deserve. Stop playing 2 evils make it right. Just because another city dumps on them you don’t need to dump on them too.
Oh I forgot; we need C.E.O pay, car allowances, special perks, and trips out of the county for the administration.
Unfortunately, Anonymous, these developments will raise property values on the East Bench because today's formula for property value is how much outsider's(read:Californian's with too much equity and too little brains) will pay for property. Californinan's have little basis for calculating property value as can be evidenced by the mangled and crowded mess that is that state and look at the values. I guess the more disgusting the air and the more you have to wait in traffic determines the greater value. Screw that formula. There is a house next to me that is owned out of state that is the most run down in the area if not the whole bench. Since I moved in it was occupied by no less than 6 renters with cars parked out to the street. It is now abandoned. The yard is unmowed and filled with dandelion and Dyer's Woad. Now it is for sale for more than I paid for my own gem less than a year ago.This is the kind of pride that out of staters bring to Ogden. They are the fifth owner in less than 5 years and have done nothing to contribute to the neighborhood and upgrade the property. Now they want some kind of RETURN!!!! I'm offering them demolision value so i can turn it into parkland and orchard.
Robin Hood---please turn on your brain. Ogden City is not the same as the Ogden City School District. Pay problems at both places, of course, but don't think they are the same thing. Study up!
So Chris Peterson also deals in tropical hardwood. While there is no evidence of sinister or rapacious methods, this business alone smacks of elitism and the hunger for the world's remaining premium handcraftable resources. Much of this hardwood may be cut from ranchlands being converted to grazing for McColonClogger's QuarterPounders. I do not see anything in his business statement that indicates any SUSTAINABLE management of these hardwood resources. They simply buy it from landowners who cut it down. There are a few hardwood suppliers from that region that specifically plant and harvest in a sustainable cycle. You can even contract your own trees to be planted and harvested 20 years later. CP surely has no use for these kind of sustainable and responsible business models.
Mutch:
One of the things that concerns me is the plan to sell 400 vactaion villas on the Mt. Ogden parkland property. These will be only intermitantly occupied, and I suspect that, as is the case in nearly all resort areas, break-ins will become a problem.
As for raising property values: possibly, but only if the Villa De Peterson development succeeds. If the upscale buyers at the prices he will want are there. That is by no means clear, since they will be buying in, at a high price, to a speculative "four season" resort that will not yet have been completed at the time they buy.
Not to mention competing condo and home sales [where you own the actual land, not just the footprint] in the resort area of Ogden's Hole [oops, excuse me: I meant of course The Upper Ogden Valley] with easy access to the ski areas and golf courses there. Why go spec on the Ogden Bench when you can buy for the same or less at an already successful development? Not to mention Snow Basin's hotel and condo development when it comes on line.
A failed development on the former park lands is not a pretty thing to contemplate. I have seen failed subdivisions and real estate developments on Long Island. They did not improve local property values.
A 1031 is called a "like-kind" exchange and can be used to "shelter" the profits made on Capital Gains from a real estate transaction. Smart play, really, by savvy investors. Not considered a "loop-hole," the 1031 was created to spur investment. If one sells a piece of commercial, then one had 90 days to "identify" the next purchase and another 90 days to finalize the purchase after the ID has been made. Profits from the Sale go into the purchase or into the bank, with the key being to purchase a commercial (like-kind) for MORE value and then moving on.
This eventually catches up with the investor, when and if he sells and does not buy, sometime in the future.
Usually the 1031 is used for secondary homes, investments such as "rentals," etc. How it plays within a City Corporation, I don't know. A "reversed" 1031 can be created to ensure that the purchase of a "hot" new property can be consumated PRIOR to the Sale of one's current property.
What with the elimination of the old "Tax Shelters" 10-15 years back, by the Congress, the 1031 has become the darling of the investment community and does in fact create an avenue for growth and keeping one's hard earned dollars in one's own pocket rather than giving much of the profits back to the IRS.
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