One Steamboat Place at the base of Steamboat Ski Area is in foreclosure, but the developers said they and their investors are confident in their ability to restructure the debt.

Photo by Matt Stensland

One Steamboat Place at the base of Steamboat Ski Area is in foreclosure, but the developers said they and their investors are confident in their ability to restructure the debt.

Bank files for foreclosure on One Steamboat Place

Development group CEO vows to work through loan restructuring

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One Steamboat Place, which broke ground in summer 2007, went into foreclosure Wednesday with $100 million owed to seven lenders.

— One Steamboat Place, the mountainous luxury condominium project adjacent to the Steam­boat gondola, went into foreclosure Wednesday with $100 million on its original construction loan owed to seven lenders.

The developers said they and two large investors have been in the middle of negotiations with the banks to restructure the outstanding construction debt.

Reached during a business trip to San Francisco, Timbers Resorts CEO David Burden said the news of the foreclosure took him by surprise.

“I was shocked to hear this,” Burden said. “I immediately e-mailed the biggest (of the) lender(s) in New York and asked, ‘Are we negotiating in good faith? Does this mean you think our negotiations are not going well?’ Their reply was that this is standard procedure, the loan has matured and they have to take this action, although our talks are promising.

“If this is standard procedure, it’s a tactic. I’m sorry; the standard procedure doesn’t make sense. At least give us a few ski seasons.”

Routt County Trustee Jean­ne Whiddon confirmed late Wed­­nesday afternoon that she had filed a notice of election and demand against SV Timbers LLC, the development entity related to Timbers Resorts based in Carbon­dale. The date of a foreclosure sale has not been set, but Whiddon estimated it would be in mid-March. Timbers would have until within 15 days of the sale date to formally file its intent to cure or redeem the foreclosure.

Burden confirmed that the $100 million was due in full at the end of October. He said that given the real estate economy, he’s thrilled that the project is closing in on $80 million in sales and thinks there are more sales in the pipeline for winter. He added that all of the contractors and subcontractors who participated in the construction of One Steamboat Place have been paid.

Burden said SV Timbers is not broke; the development group includes two multibillion-dollar companies who believe in the project, and together, they have $50 million in non-debt equity they aren’t about to abandon. Instead, they’ve made it plain to the banks that they will inject more capital into the project.

“We and the investors are stepping up in a big way,” Burden said. “I’m positive we’re working this out. My partners are willing to invest many million, but only on certain terms. ... We’re very confident we’ll get this loan restructured.”

Beyond a restructuring of the debt and resolution of the foreclosure filing, Burden said his investors are intent on providing seller financing for unsold condos because they understand that is a sticking point in the market right now. Typical original asking prices for whole-ownership condos were $1 million to $2 million. A $4.45 million sale closed in late 2009. There was a $3.05 million sale in early October.

Burden emphasized that the promissory notes involved in the foreclosure are on unsold residential condominiums only, not the commercial condominiums or the common areas in the project.

He added that One Steamboat Place is a stand-alone limited liability company. The development has a strong homeowners association, and although the developers represent a majority of the HOA and carry a corresponding share of the HOA fees for the 465,000-square-foot building, those fees have been funded by sales.

One Steamboat Place broke ground in summer 2007. It posted $15.25 million in sales during its first round of closings in November 2009. The project includes 80 large condominiums with 38 whole-ownership vacation homes among them.

Community reaction

Mark Scully, the Colorado representative for the developer of Howelsen Place and Alpenglow in downtown Steamboat, expressed doubt that One Steamboat Place would get to a foreclosure sale, though he added that he has no direct knowledge of the development’s finances.

“OSP is a world-class project and asset to Steamboat,” Scully said. “Timbers Resorts is a world-class company. The (notice of election and demand) is just part of a formal process for working through loan issues in today’s world. They will get through it.”

7 banks

A bank in Germany with New York offices, WestLB AG, holds the biggest share of the debt at $58 million. The same bank originally loaned Timbers $130 million in a “global note” in October 2007 and promptly began spinning off portions of that debt to other banks including Western Slope bank group, Alpine Bank, which is one of the creditors listed in the foreclosure filing with $25 million of the development’s debt. Others are CoBiz Bank, $15 million; TD Banknorth, $20 million; MT&SB, $10 million; RBA, $7 million; and Morgan Stanley, $30 million.

In the process of assigning portions of the original debt, the loan grew to $165 million.

David Baldinger Jr., managing broker/owner of Steamboat Village Brokers, agreed with Scully that the foreclosure filing against Timbers may be very different from the familiar foreclosure process in which a homeowner loses a home.

“In this case, it could be a way to negotiate and trade debt,” Baldinger said. “It could be a way to get all the lenders to the table and reorganize the debt. In some ways, governance — who’s in charge of the debt — is as important as the asset.”

Baldinger said it’s possible that consumer perception of the resort condominiums at One Steamboat Place would not change, regardless of how the foreclosure proceedings are resolved. However, he added that it would be a plus if Timbers still managed the project coming out the other side.

“It’s still too early to tell how the market will internalize a reassignment of debt, but the quality of the asset is most important to buyers,” Baldinger said. “From a market standpoint, the project is still fantastic.”

Comments

greenwash 3 years, 5 months ago

I wouldnt believe a word any of these realtors have to say. Gimme a break.

Have a walk around the building....Its already cracking and failing in many spots...Shoddy constuction and poor material choices.

But Oh some poor realtor (no pun intended) will tell you how great it is....

How Naive so many people are.

Be patient prices havent bottomed yet.

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TWill 3 years, 5 months ago

Another typical greenwash statement. Negative comments (especially directed towards real estate matters) from this coward should surprise no one.

But I am curious to hear of what "shoddy construction" and "cracking and failing" the high end construction expert (moonlighting as a snide alter-ego poster) references. While you're at it, greenie, maybe you could enlighten us on how the struggling real estate market makes this a better community for any of us to live and for you to gutlessly comment on.

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boathappy 3 years, 5 months ago

Bravo TWill. Thank you for your very appropriate response.

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blue_spruce 3 years, 5 months ago

greenwash:

do you actually hope for the market to go lower? man, that realtor / person must have broken your heart!! so much hate!

breath.

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greenwash 3 years, 5 months ago

OK TWill I wil ltry to bemore positive....Edgemont is a much superior project and product.....And Yes I was badly burned by several realtors in town. Our town will survive but it wont be because of the real estate market.

Sorry if I offended you..

I also aggree with blue spruce....Drill Drill Drill.

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housepoor 3 years, 5 months ago

I'm all for being optimistic but when you hear a comment like: "Baldinger said it’s possible that consumer perception of the resort condominiums at One Steamboat Place would not change, regardless of how the foreclosure proceedings are resolved."

As you SERIOUS? I'm suprised he didn't throw in there "We live in a lifestyle community and are immune the economic pressures facing the rest of the country"

Try and be a little realistic, please...........

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seeuski 3 years, 5 months ago

Poor greenwash was "badly burned by several Realtors". NO, you were burned by your own stupidity if nothing else. When did personal responsibility for ones business decisions become the fault of others? Did you read what was at the top of the contract?

I do agree with one thing that greenwash said, "Be patient prices havent bottomed yet."

True that, because we have a moron in the White House and the Fed is monetizing our debt. Anyone paying attention knows we are seeing the inflation and the devaluation of the dollar that we were warned of.

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seeuski 3 years, 5 months ago

And to those that mock Sarah Palin for her stance on energy Independence, are you happy that we are funding the Brazilians, Mexicans and others in their oil exploration while POTUS blocks the USA from it's own? Ingenious.

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Troutguy 3 years, 5 months ago

We import almost twice as much crude oil and total petroleum products from Canada than any other nation. Brazil doesn't even crack the top 10 in oil exports to the U.S. This year, Colorado is on pace to issue the second most drilling permits in state history. Inflation was running at 1.2% in October of this year, much lower than the last decade's average of 2.6% Anyway, what does any of this have to do with One Steamboat Place going into foreclosure.

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seeuski 3 years, 5 months ago

Ask those that I was responding to. Why the drill,drill,drill stuff?

But since you asked. If the POTUS allowed this Country to use it's own resources, whether it be energy or manufacturing we would be in A dramatically better economic predicament than we find ourselves and this article would most likely not have been written. The Unions have made manufacturing in the USA a thing of the past. Autos, clothes, food etc. etc. Thanks SEIU.

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Bill Dalzell 3 years, 5 months ago

Classic comments. Turning OSP foreclosure article into comments about Obama and the Whitehouse, much less insinuating that you know anything about Greenwash's past dealings. A bit hard to take anything you say seriously.

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Scott Wedel 3 years, 5 months ago

Realtors represent the seller not the buyer. Anyone that does more than one real estate transaction without understanding that needs to get a clue.

That said, how often a realtor knowingly misrepresents a property is almost comical. You could post daily logs of the lies told that day by realtors. They act as if zoning and nonconforming uses are nonissues. What to hear how easy it is to annex? Talk to a realtor. And so on.

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seeuski 3 years, 5 months ago

BillyD and Scott, greenwash himself said he was "badly burned by Realtors in this town" so there is the answer for BillyD, and sorry you don't see the continuing and worsening economic mess and terrible leadership of this POTUS as a factor in the sales and value of real estate in this Country, which would include the OSP property.

And Scott, you make so many errors in your comments and here is another. The Agency that Realtors have with clients is plainly stated in the buyers or sellers contract. Don't just let your imagination get the best of you, learn the truth before you opine. As far as some in the business being dishonest, yes certainly there are examples, but to paint the whole community of agents that way is unfair. That would be like saying all future POTUS's will suck because the current one does.

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blue_spruce 3 years, 5 months ago

good - i am usually just having fun! these blogs are WAY too serious, and i aim to be funny...most of the time at least.....however, you should look up some of greenie's comments in the past - he's crazy about anything to do with "realtor". i think he has PTSD or something. on one hand i feel kinda bad for the guy, but i just get the feeling that he enjoys seeing more pain for the valley. anything to hurt the “realtors” - and unfortunately everyone else too! we are all in this mess together, like it or not....

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housepoor 3 years, 5 months ago

See, What law has Obama changed that wasn't in place when Bush was in Office other than the temp offshore dilling ban that has now been lifted?

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Bill Dalzell 3 years, 5 months ago

"sorry you don't see continuing and worsening economic mess and terrible leadership of this POTUS as a factor in the sales and value of real estate in this Country, which would include the OSP property."

No I don't. Just for the record I am actually fiscally conservative and more left leaning on environmental and education issues. I probably agree with you on some issues, but that being said I think most of this mess is due to lending practices that were set up over a long period of years fueled by wealth and greed found in both parties. In any event, I think we will slip back to values that were similar to 2004, as that is when all of this artificial appreciation started to take place.

My main point was that you are discrediting your opinions by plugging Palin and placing blame on the whitehouse in relation to OSP.

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seeuski 3 years, 5 months ago

Yea BillyD, we agree on the lending practices that were imposed on Banks by Congress through the enhancement of the Community Reinvestment Act that was passed under the leadership of one Jimmy, peanut, Carter. Barney Fwank and Chris, Countrywide, Dodd were the Congressional leaders that pushed legislation forcing Banks to make loans they otherwise would not have approved to people who could not pay them back. This transfer of wealth was a Socialist plan to take from the rich and give to the poor, how? By using Fannie/Freddie ie. the Taxpayers(so called rich people) to guarantee these loan instruments. Fannie/Freddie is now on the hook for about 96% of the outstanding mortgages in the US. So BillyD, we don't agree on this... "I think most of this mess is due to lending practices that were set up over a long period of years fueled by wealth and greed found in both parties." The word "greed" has been used over the years to describe the Capitalist system by those wishing big Government would run things through a Socialist euphoric idealistic system. Capitalism is NOT failing, it is the Social engineering policies that have been dragging down our economic system, Capitalism has been the biggest success in human history while Socialism has failed everywhere it has been practiced, just look at many Countries in the European union and now look at California. Students are rioting because the State can't afford to operate it's school system without raising tuition and freezing employee salaries. This is proof that when people are under the spell of believing they have a right to some level of pay or cost for a service and it is taken away they riot as in Europe. This nanny state mentality will bring chaos when the system can't provide as desired. As far as my opinion of Sarah Palin and your claim of me being discredited for it, who is the authority that decides who is worthy? Not you nor others like blue_spruce, your opinion of my opinion means nothing except to those who hold your same opinion.

My question to you testing your claim of being a fiscal Conservative is, who best to run the USA, Palin or Obama?

I rightfully blame this WH for it's policies which have exasperated a bad situation, on purpose.

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trump_suit 3 years, 5 months ago

Do you get brownie points from Fox for using O'Reilly's word of the day? Or are you just being craven?

Trust You suck, I ski to blame Obama for the One Steamboat Place Foreclosure. All we are missing is Mr Akin applying the Tea Party platform to this local issue and for someone, anyone on the right to tell us what they are going to cut to balance the budget. Anyone?

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weststmbtres 3 years, 5 months ago

First off I'm middle of the road politically. I've voted for republicans and democrats in every election since I turned 18. On this issue I happen to agree with Billy. The problems we are suffering through are mostly because of overinflated real estate values caused by relaxed lending standards and requirements made by HUD in the early 2000's, not the policies of the current adminstration. Oil was the other driving factor. Our wars, among other things, helped oil prices to skyrocket and hence caused raw material prices to rise. Replacement cost of homes went up 15-20% on that fact alone. Values followed right along with replacement costs.

I've been employed in real estate related businesses in Colorado for almost 20 years. (never as a realtor greenwash so I don't want any of your snide remarks) I own my home and love where I live so I personally don't have a need to jump in and buy a new home right now. However, If I was even slightly thinking about purchasing, I'd say the time is now. Prices are near the bottom and rates have never been lower. Rates are not going to stay low. We can all see rate increases coming. The Bush administration doubled the national debt and this administration just keeps spending. We are going to have to pay back the money sometime and it's not going to be cheap. Even if home prices drop a few more percentage points, a small increase in the interest rate on your loan means you are going to end up paying more for the house if you keep waiting for the sales price to drop.

We, the American consumers are the only people that are going to get us out of this mess. Not this administration or any other administration.

In my opinion it wouldn't have mattered one bit which party won the presidential election. We'd still be here in 2010 spending exorbitant amounts of money trying to recover from the downward slide that started in 2005 and 2006. Laying blame on the current administration for the problems that we saw coming for the last few years of the previous administration is exactly that, laying blame and nothing else.

One more thing thats been bugging me; Everybody in Steamboat wants to keep rating the health of our real estate market against 2007 as the benchmark because that was our best year. We saw it at the roundup last week. I think 2007 should be written off as an anomaly. Just throw those numbers in the garbage and forget about them. Look at the deeds recorded in the clerks office in 2007. The last six months of the '07 boom saw very little outside influence. It was one local buying and flipping properties to another local. Some of these properties flipped 2-3 times that year and many of the people doing the flipping already owned other properties.

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housepoor 3 years, 5 months ago

"I rightfully blame this WH for it's policies which have exasperated a bad situation, on purpose."

Oversimplification of complex issues to present your own position or opinion in a favorable light. Rupert Murdoch Fox News and Seeuski in a nutshell.

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weststmbtres 3 years, 5 months ago

I don't buy into seeuski's ideas that HUD policies in the 90's were to blame.

Example of the HUD changes and requirements I'm talking about.

http://archives.hud.gov/news/2004/pr04-035.cfm

These 1 million low to moderate income families for the most part received subprime loans that brought our banking system to a screeching halt in 2007 and nearly crashed the entire financial system in the US.

This change correponded directly with the increase in subprime lending shown in the chart at the following link. Note the immediate decrease in home ownership rate. Many subprime loans went into foreclosure almost immediately after Alphonso's changes in 2004.

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weststmbtres 3 years, 5 months ago

Sorry for the blind reference to Alphonso, He was the secretary of HUD that took over after that crackpot Martinez left.

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JusWondering 3 years, 5 months ago

Housepoor says: "What law has Obama changed that wasn't in place when Bush was in Office other than the temp offshore dilling ban that has now been lifted?"

Are you serious? Are you kidding me? Are you that ill-informed?

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housepoor 3 years, 5 months ago

Just, We are taking about energy policy here..........which one has he signed?

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JusWondering 3 years, 5 months ago

What hasn't he signed that did not have implications to energy policy (I am not just talking about bills presented to him by legislators)? Seems like everything he signs has an earmark for either energy or public schools. There are some really good nuggets in some of it, the problem is the baggage and cost that comes with it.

RANT* But typical of the car-wreck generation (Clinton, Bush, Obama) you are in the driver's seat with your foot on the accelerator driving toward the brick wall thinking that we are all invincible.

Healthcare: We are now spending twice as much (per capita) on healthcare than any other nation. My take; give you as mmj as you want and put you in a home (I think you used to call them communes) with the rest of your peers and let you toke your way into oblivion; it'll be cheaper than anything else we would do. I would even be for putting a grow garden in every nursing home for you; just stop thinking you need to run things.

National Defense: Since when did we become the world's police all under the guise of spreading democracy? We spend more than the next 14 countries combined... for what benefit? So that some Islamic extremists can run OUR OWN aircraft into buildings, attempt to build bombs out of nail polish remover, and try to send toner cartridges to hurt us? Invest in the national guard and let the rest of the world handle their own problems.

Social Security: Don't even get me started on that one. You stole part of my retirement funds for your earmarks. Besides, it was NEVER meant to be your ENTIRE retirement income.

Oh yeah, and NONE OF YOU want to pay for any of it??? Typical of the car wreck generaton (nearly 77 million strong) that is used to filing bankruptcy every few years, throwing away marriages, or just walking away from resposibilities.... is it any coincidence that the greatest increase in bankruptcy filings is now coming from the newly retired? Spoiled little brats that never grew up!

But the good news... I would predict life expectancy to go down for them; they can only hope and pray that their kids don't realize how bad their parents have Sed them... especially when it comes to decisions later in life. *END OF RANT

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weststmbtres 3 years, 5 months ago

The gist of my post is that until 2004 subprime lending was kept at around 5-7 percent of the loans issued. In 2004 the Bush administration decided to increase that almost 4-fold to over 20%. Prior to 2004 if x% of the subprime loans went into default it still wasn't enough to sink the ship. Then nearly a quarter of the loans we were giving in 2004, 2005 and 2006 were subprime because of the loosened government oversight of the Bush administration. All of a sudden when the same x% of those loans go into default it is enough to sink the ship.

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pitpoodle 3 years, 5 months ago

Silly me, I thought the Clinton administration was to blame. Uh oversight is the job of Congress.

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JusWondering 3 years, 5 months ago

Placing blame on Bush is like placing blame of the entire civil war on slavery. What about the idiot American public applying for loans that they knew they could not afford because home ownership was a right? What about the educatonal system not teaching basic fnancial literacy to the idiot American public? What about the greedy mortgage underwriter looking at the commission for underwriting the loan? What about the real estate agent convincing the buyer that home values will always go up to get the sale? What about the banker that believed they could pool enough of this crap and sell it as something that is of value? What about the 401k investor looking to fund their retirement only through capital appreciation instead of saving $$ that lapped up the crap that the banker created?

No single person is to blame here. Even myself... I am to blame. When I sold my last home in 2006 for 55% over what I paid for it in 1999 to an individual that I knew would be foreclosed on (it took less than 4 months) I knew without a doubt the impact that would have. My real estate agent gave me the proceeds check and told me to run to the bank so I could beat Contrywide's foreclosure process.

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JusWondering 3 years, 5 months ago

Oh yeah, what about the unheeded warnings by MANY experts that the real estate bubble was about to pop?

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weststmbtres 3 years, 5 months ago

I'm not arguing that earlier administrationas should not share in the blame. They put the systems in place for subprime lending. In defense of the Clinton, Bush 1, Reagan and Carter admins, they kept it in check. However, it was the administration in 2004 that let the system run rampant. If any of you attended the roundup you heard the same thing from Karen Mayfield last Thursday.

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JusWondering 3 years, 5 months ago

Is Karen Mayfield an economist or a product provider? 'nuff said.

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seeuski 3 years, 5 months ago

To those who have no idea what the heck they are talking about here is the evidence that the Democrats used strong arm tactics as the Republicans tried to reign in Fannie/Freddie. As usual the Democrats shot the messenger, Regulators, for sounding the warning bell. Racists was the buzzword as usual. http://www.youtube.com/watch?v=_MGT_cSi7Rs

Benefactors: http://www.youtube.com/watch?v=usvG-s_Ssb0&feature=related

Barney Fwank comes clean: http://www.youtube.com/watch?v=BC88oo...

Tax and spend, a Democrats life. http://www.youtube.com/watch?v=u1Mazj...

Watch it for yourself: http://www.youtube.com/results?search_query=barney+frank+says+fannie+was+in+trouble&aq=f

And Bush did what? http://www.youtube.com/watch?v=cMnSp4...

It just boggles the mind that people bury their heads in the sand and cling to their usual emotional political positions and ignore the facts that would keep this Country from going down these destructive roads ever again. Just amazing.

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seeuski 3 years, 5 months ago

Wow, by accidental timing trump I have your answer, and I am sure you will spew the usual FOX news lies as your answer. That dog died, find a new exhortation.

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1999 3 years, 5 months ago

hahahaha...I can't believe you use youtube as a credible .

bahahahahahahahahaha

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seeuski 3 years, 4 months ago

That's it? That's your retort? You would have been a perfect OJ Juror.

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Clearsky 3 years, 4 months ago

I want to live there. Maybe make it affordable housing? (adding a sense of humor)

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Troutguy 3 years, 4 months ago

See, if you're mind is so boggled by people clinging to their usual emotional political positions and ignoring facts that would keep this country from going down these destructive roads again, how do you feel about the GOP's positions on - Extending Bush tax cuts. Since they never created jobs or shrank the deficit, why should they be extended at all? They were set to expire for a reason. They were not paid for (the 2003 tax cuts were passed by reconciliation in the Senate while we were engaged in two unfunded wars, with Cheney casting the tie breaking vote). -Wall St. deregulation. Since the last 30 years of de-regulation helped create the mess we're in now, why de-regulate even more? How many financial collapses have we had since 1980? Think savings and loan fiasco, dot com bubble, housing, etc. How many finacial collapses did we go through from 1945-1980? How did our country ever prosper with tight regulations and 70%-90% top tax brackets?
-End the EPA. We now have cleaner air and water now than ever. Do you really think the mining and oil industries are going to self police themselves? Remember the Cuyahoga River? Colorado recently re-wrote the regulations on oil and gas drilling in the state. Naysayers said the industry would leave the state. Guess what? Colorado is on pace to issue the second most drilling permits this year. Ever. Guess that regulation did not harm the industry. These are all GOP ideas. And, if they regain power in 2012, they are going to do their best to enact all these policies. Is this what you mean when people ignore the facts and keep heading down destructive roads again. You're right. It is truly amazing.

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trump_suit 3 years, 4 months ago

Debating with Seeuski is a lot like playing tennis against a brick wall. Eventually the ball wears out, but the wall remains unmoved.

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jimmmmmm 3 years, 4 months ago

Excellent questions Trout, but its crickets around here if your looking for an answer. I'll answer for him, "Obama is a Marxist, Fascist, Socialist!!" There, I saved you some time Seeuski.

Couple more questions.

When does the trickle down begin?

How are we supposed to tackle this deficit that the conservatives whine about daily?

Did the rating agencies (i.e. Moody's) have anything to do with the housing meltdown? Seems to me that rating a triple B loan as an A loan might have been a big problem, but blaming the Democrats is much easier.

Your turn Seeuski.

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Troutguy 3 years, 4 months ago

The perfect hypocracy of the day comes straight from the GOteaParty. While they rant and rave about our rising defecits, they support extending tax cuts for the top 2% of earners without having to pay for them. Then they turn around and vote against extending unemployment benefits to those in need because, um, they're not paid for. So, to review here. Unpaid tax cuts for rich = good. Unpaid unemployment benefits to people who would spend that money right away, thus helping stimulate the economy, help keep them in their home, etc. = bad. And this is the party who will stop at nothing to gain control of our country.

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brian ferguson 3 years, 4 months ago

my favorite twill comment (from march 31 2009)

"I just dont understand the sense of entitlement many people feel around here with regard to thinking that they should be able utilize a world class resort (mt werner) just because you live close to it"

who shouldnt be allowed?

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TWill 3 years, 4 months ago

No one "shouldn't be allowed". The ski industry is in decline and needs to grow and expand its market base in order to survive.

I can't verify the accuracy of your quote, but I'm sure the reference made has to do with locals that think they should have free access to Mt. Werner or similar entitlements from SSRC.

Thanks for calling me out though.

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JLM 3 years, 4 months ago

Skiing --- which I admit to loving --- IS an elitist, expensive sport. So is general aviation and sailing and lots of other sports. They will all suffer during a recession but that's OK cause it is your money to spend. Or not.

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aichempty 3 years, 4 months ago

The Milton-Bradley game "Monopoly" has some interesting features which mirror real life economics. Basically, you win the game by accumulating real estate and charging rent to other players when they land on it. Although there is a matter of chance involved in it, in the long run, the more property you own and the faster you can raise the rents on it, the better your chance of winning. There comes a tipping point where one player has most of the money and only has to wait for the others to go bankrupt.

The game stops there, however. It does not continue on to the point where the recession sets in because people are homeless, jobless and everyone's property values fall.

There comes a point where the people with most of the money cannot spend it fast enough to sustain the economy. 1000 people spending $250 a week on groceries because they have jobs is a lot different than 2 people spending $500 a week on groceries because they have a lot of money. $250,000 in business cannot be offset by $1000 in business. Our system has put so much money into the hands of a few people that they cannot spend it fast enough to create all the jobs at all the lower levels which are required to sustain a viable economic system.

Huge salaries paid to CEOs would do much more for the economy if the same amount of money was used to pay more to the workers, or to hire more workers. Our tax system needs to contain incentives for business to pass more money along to workers instead of executives. The CEOs have optimized business into a system which depends on wealth that only a few people will have in the end, and that makes them non-sustainable.

Call it the "executive compensation bubble." The last time we had this kind of situation, unions came along and demanded better pay and benefits for workers. We were a net-exporting nation with international demand to make up the difference. Now, with all our labor and manufacturing jobs gone overseas, there are not enough low-level consumers to sustain the whole economy, and that's why small businesses are failing and people are losing homes and jobs as a result.

Drastic reform is required. Domestic manufacturing and extractive industries have to start meeting domestic demand so that we can put our own people back to work. We have shipped our prosperity overseas to China, Korea, Taiwan, etc. via our demand for manufactured goods, and that's why they are growing and viable economies while we are crashing.

As for locals expecting special treatment from ski corp, do the winos in Las Vegas get a discount at the casinos? Do the people staffing resorts in Mexico get to stay there at a discount? People around here should be thankful for the business ski corp brings to town, especially the ones who moved here to become "locals" so they could ski more.

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TWill 3 years, 4 months ago

Well said, aich- that's an unfortunate (but realistic) assessment of our general state of affairs both locally and nationally. Greed and Entitlement are the common denominators of each of your points.

Although, you're not suggesting that increased union presence would help us navigate any of our current challenges, are you?

Certain unions may have had their calling during the industrial revolution era, to keep workers safe and balance the power from being so one-sided in favor of management, the beneficial role of organized labor has run its course.

Modern day unions are nothing more than corrupt, bureaucratic obstacles to domestic economic growth and development. The current business model of organized labor has played a significant role in pushing manufacturing overseas and creating the economic and legislative mess we find ourselves in today.

Why? Well, that brings us back to that Greed and Entitlement thing. We could go round and round with it all day long (with a variety of topics) and end up with the same answer everytime. Maybe it’s just human nature and could be why Milton-Bradley’s “Monopoly” has been so popular for all these years?

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bob batts 2 years, 9 months ago

You guys are really scary.

This started out as a discussion about foreclosure at OSP and you have twisted it into a radical political discussion with several stupid tangents. Obviously you just want to rant and know nothing about OSP.

Let me now comment on the original topic. As an original fractional owner at OSP, I was of course very concerned about the foreclosure proceedings. It is basic fear of the unknown. We purchased early and are still glad we did as it is a premium property in a premium location so I am not worried about it's value in the long run. It is a property that will continue to be landmark of which the ski area will center it's self and continue to grow. As these foundation properties grow, they will also bring up the value of those secondary properties on the edge. There is always a demand for premium properties and I am still glad to be at OSP. Even in the difficult time of the past year there has not been ANY lack of service quality from the staff or building services. My property value unfortunately has gone down just like everywhere else in Steamboat, but when the economy finally turns around, OSP will be leading the pack for numerous reasons that are too many to list here. Mostly due to that it is run very well in a perfect location and now at more reasonable prices. The property has now been refinanced and can now get back to it's basics, taking superior care of it's owners and growing the business. That is what they have done numerous times all over the world.

If you can make an educated contribution regarding OSP, please do. If you are unable to stay on topic about OSP, take your anonymous radical political comments some where they might be appreciated.

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partylikeits2008 2 years, 9 months ago

Nicely said and well put Bob! OSP will lead the charge. It's just a shame that the original article made front page news and when all things were said and done with the restructuring it was found somewhere in the middle of the paper.

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