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Second Professional Property Management Company, David Holland's Resort Lodging
 in the Park City and Deer Valley Utah Area, Fails to Make On-time
 Payments to Condominium Owners

By Andrew Kirk, Park Record, Park City, UtahMcClatchy-Tribune Regional News

April 8, 2009 - The slow year and nation's financial crisis continues to affect Park City's nightly rental industry.

David Holland Zatz, owner of David Holland Resort Lodging, confirmed Tuesday that he, too, sent a letter to about 300 condominium owners at the end of March announcing a temporary delay of payments.

"Funding I thought would be available to me wasn't. Not everyone has declined, so I'm still working on it," he said.

Zatz said he believes he'll know more in two or three weeks.

With 25 years in town, he navigated his company through the recession in the 1980s and the slowing following Sept. 11, 2001. The difference this time is that banks still lent money during those periods.

"It's just a different environment right now," he said. "We've weathered all the storms before. I'm confident we'll be able work through."

There are vendors affected as well as owners, but the accounts with Home Owners Associations are separate, he said.

Confusion regarding the delay of payments by Deer Valley Lodging continues two weeks after announcements were first made on March 25.

Premier Resorts marketing director, Bobby Foster said vendors are affected by the situation as well as property owners.

The economy has been affecting all aspects of travel, and vendors such as travel agents are especially hard hit. Airlines have been decreasing or stopping commissions to agents and more people are using do-it-yourself websites instead of agents.

Premier Resorts knows this well. Just

a few weeks ago the company closed down its own agency under the name Premier Travel.

The agency was based out of the same Park City office as Premier Resorts on Deer Valley Drive and was started to get guests better airline rates.

Changes in airline policies and Internet-use trends made the agency a losing enterprise, Foster explained.

Besides angry vendors, at least one set of owners have filed a lawsuit against Premier Resorts over the delay of payments.

Kim McGuire and John Kinnear are the developers of Trail's End at Deer Valley. The two filed a complaint in Third District Court against Premier Resorts on March 31.

The complaint states that Tail's End has a contract with Premier Resorts stating that if the company fails to pay by the 15th of each month, it is subject to a 1.5 percent monthly interest charge. Because the company failed to pay for February by March 15, the plaintiff's are requesting the court freeze the assets of the company until full payment is made.

McGuire and Kinnear said they are owned about $48,000.

Foster said Tuesday afternoon that after intensive, ongoing meetings, Premier Resorts President Barbara Zimonja is confident that she'll have positive news for condo owners within about 10 days.

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To see more of the Park Record, or to subscribe to the newspaper, go to http://www.parkrecord.com.

Copyright (c) 2009, Park Record, Park City, Utah

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