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Chester Progressive
Chester , California
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November 10, 2010     Chester Progressive
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November 10, 2010
 

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2A Wednesday, Nov. 10, 2010 Chester Progressive, Westwood PinePress Nakoma back taxes: The Schc, ff perspective Photo by Diana Jorgenson In a statement submitted to the Portola Reporter Oct. 22 after Part I came out, Michael Schoff addressed issues raised by the Oct. 20 article's re- counting of the current status of taxes owing for the Nakoma Golf Resort. Proposals for eUminating penalties and interest ac- cruing had been submitted to the county and are the subject of the accompany- ing article. The rest of his press release is verbatim. "Instead of taking an ad- versarial position, Schomac believes the county adminis- trators should appreciate the fact that we are trying to make formerly economically unviable properties produc- tive and beneficial to the county, homeowners, in- vestors and the general public. It is our belief that many in the community at large share this opinion. "It is sad to see Plumas County, a place with such natural beauty and unreal- ized potential, remain largely impoverished. Having spent nearly every summer in the Sierras since I was a youngster, I spearheaded Schomac's investment in Plumas County because I love it here. In 2005, I set out to revitalize the Graeagle area with the acquisition of the Feather River Inn, which was on the brink of ruin. Earlier this year the Nakoma Golf Resort, having suffered through almost six years of bankruptcy, was acquired with the same objective in mind. As a direct result of the experience Schofiaac had with our redevelopment efforts at the Feather River Inn, our investment commit- tee was adamantly opposed to further investment in Plumas County. As an article The Indian Maiden statue (Nakoma), complemented by the Indian Warrior stat- ue (Nakomis), is located in a reflecting pool at the en- trance of the drive to the Nakoma Clubhouse inside Gold Mountain. The pair of statues was created by Frank Lloyd Wright to go with the Nakoma architec- tural design: models of the statues adorned his office desk. The maiden is all curves while the warrior statue is linear and angular. "Nakoma" means "1 do as I promise" in the Chippe- wa language, Gold Moun- tain promotional literature irlforms us, and the infor= ...... mation was repeated in the .... .... appearing in this same edition (Oct. 20) outlined, the High Sierra Rural Alliance sued the county for its prepa- ration of an environmental impact report for the redevel- opment of that historic property. Although it was the county that prepared the report, they told us they would not defend the action unless Schomac paid the legal expense. We agreed to do so. After a process that has gone on for years now, the matter has finany come before the judge. "Regardless of this costly litigation and delay with the Feather River Inn, I persuaded the committee to go along with the purchase of the Nakoma Golf Resort. Their approval had a condi- tion: I was to come out of a 14-year semi-retirement to personally supervise the project. I willingly did so. "During the six years Nakoma was in bankruptcy, the county has charged penalties and interest on the delinquent taxes ranging be- tween a low of 18 percent and a high of 28 percent per year. In an interest environment of 2 percent to 3 percent, that appeared to us as unjust enrichment. This exorbitant penalty and interest burden is simply not manageable in the face of the significant deferred maintenance and operational losses Schomac is facing. In our opinion, it is not unreasonable that we are asking the county to accept full payment of all past due taxes, but with some con- sideration of eliminating or reducing the penalties and interest. "There is considerable merit to the county helping Schomac keep Nakoma flour- ishing. The one-time mitiga- tion of penalties and interest we asked the county to con- "Craig Settlemire's claim that Schomac was given a lower price by purchasing the bankrupt properties subject to the property taxes is simply misleading. The bankruptcy court records clearly show that there was no credit as Mr. Settlemire claims." press announcement issued at the purchase of Nakoma by Nakoma Associates LP last April. The announce- ment looked forward to "a new and milder course" at Nakoma Golf Resort and expressed hopes for a har- monious working relation- ship and mix of facilities between the Nakoma Golf Resort and Feather River Inn. Michael Sch0ff sider is a small fraction of the future sales, occupancy, property and other taxes that will be generated to the county, year in and year out, not to mention the ripple effect the revitalized resort operations will have on revenue generation for the county (new employment, in. creased tourism, new home purchases, more commercial and residential develop- ment). As a result, we believe the county should be doing everything in its power to help Schomac make our resorts operational. "It is true that Plumas County is a'teeter' county, meaning that when property taxes are not paid, the county draws from reserves. When the Nakoma properties were brought out of bankruptcy, Schomac offered to pay an of the delinquent taxes in fun, without discounts and with- out objecting to the past as- sessments on the properties, even though they had been overvalued based upon mar- ket conditions at the time. "It was the penalties and interest that we were hoping the county would mitigate. The county would have been made whole, except for any cost they had while drawing funds from reserves. Schomac agreed to pay an of those costs, as well. "It is also important to focus on jobs. Plumas County is suffering from a failing tourist economy which is a contributing reason of why there is so much welfare, unemployment claims and general apathy throughout Rs communities. "Immediately after Rs purchase in April of this year, Schomac employed dozens of people to work at the Nakoma Golf Resort, not to mention engaging new banking relationships, archi- tects, engineers, construction trades and other businesses, services and vendors who will be impacted and stimu- lated by our efforts. At full operation, the employment at the resort is expected to exceed 100 employees; not just in hospitality, but in the areas of personal services, sales, maintenance, house- keeping, construction, and food and beverage. WRh unemployment in Plumas County hovering around 16 percent, we cannbt under- stand the county administra. tors' apparent obstructionists behavior. "Schomac demonstrated a huge leap of faith in taking on the distressed Nakoma Resort, just as wb did when we purchased the Feather River Inn. Almost everyone familiar with the Nakoma Golf Resort and the Feather River Inn realizes that these are largely philanthropic efforts at this point as there is little chance that the signif. icant investments Schomac has made in Plumas County will be recouped, let alone provide any return. "The inability of the county administrators to act cooper- atively and fairly will mean more job loss, more residents relocating and more dollars spent outside the community because of a lack of services. That's something this com- munity cannot afford. "Logging, lumber mills and railroads can no longer be counted on as the economy's backbone in Plumas County. It is tourism and the various forms it takes that should be the new focus. Schomac is frilly engaged in bringing the concept of "Stay and Play" to the fore- front of this effort. With the historical aspects of the century-old Feather River Inn together with the unique architecture of the Frank Lloyd Wright-designed club- house at the Nakoma Golf Resort, there is a great oppor- tunity for these two major resorts to once again being the shining beacons for Plumas County. "It could be just the catalyst needed to jumpstart the local economy. Schomac's carefully thought-out strate- gy can become a reality wRh a little help and support from a county which will benefit the most." On behalf of Michael Schoff, Nakoma Associates LP, and The Schomac Group, Inc Editor's not P1umas County Administra rive Oloer Jack Ingstad oonfirmed there was a legal agronent with Schomac to oover legal ex- penses for litigation related to the Feather River Inn but disagreed that the EIR was a oountydocument, saying that Schomac's California Environmental Quality Act la wyers had examined Rand approved it as well. Who owns Nakoma/Gold Mountain? "Aordihg't'o:AsfistantTa'x the Schomac Group is tile,: COllector JuiCe White; three of .... owner of the Feather River the parcels included in the bankruptcy sale of Gold Mountain properties are as- signed to W. Michael Schoff and the others are all listed to Nakoma Associates, LP. When the question is raised as to who are the principals of Nakoma Associates, LP, the re- sponse is that it is "a Michael Schoff and family affiliated entity." In other local ownerships: ARE YOU READY FOR SOMf FOOTBALL? TM Joinus every Monday Night Drink- Specials and Free Appet,zers I,/ , ) /!, x,cAm IestAuAmt 159 Main St., Chester 258-2262 IS Thanksgivinl at the t. Bernard Lodge t Bring your family and enjoy a Traditional Thanksgiving feast" Nov. 25th * lpm till Thanksgiving Day Featuring: Glazed Ham, Roast Turkey, Corn Bread Stuffing, and all the Trimmings, including soup, salad and assorted desserts Inn, and Michael Schoff is listed as owner of the Long Valley Resort. Schomac owns the Calpine ranch in Sierra County. The press statement from Michael Schoff quoted above was presented as representing The Schomac Group, Inc. as well as expressing Schoff's personal sentiments. W. Michael Schoff began Schomac Group, Inc., with Tucson, Ariz., headquarters, in 1974. According to its website: Adults: 624.95 3 - 12 yrs.: s19.95 under 3 yrs: free Please call for reservations 258-3382 "It is a privately held real estate investment, develop- ment and management com- pany that has sponsored over 100 syndicated and private and limited partnerships, and has joint ventured as many properties, with both institu- tions and private individuals. "For the past 30 years, our success has been based on a disciplined and timely ap- proach to the acquisition and disposition of assets, financ- ings and asset management. Our seasoned and professional management align their goals Order prescriptions on-line, e-maih chester@lassendrug.eom NEED A DrNTIST? COMr 8El BRAD NORD, D.D.00 and his friendly staff PROVIDING PREVENTATIVE, RESTORATIVE & COSMETIC DENTISTRY ,., Now accepting Care Credit ,-, We accept many dental insurances New Patients Welcome 624 Main Street, Cheater Phone us at: (530) 258-3655 with our investors by having a vested interest in every invest- ment," professes the Schomac Group, Inc. SGI has holdings in several states and past ventures have included the management of a $212 million self-storage company, sold in 2006. Online Self Storage sold in 2009. The company has a background in the management of apart- ment and office complexes as well. It also invests in real estate. In California, in addition to the Plumas and Sierra properties listed above, the in- vestment groups own an $18 million + ranch with 249 acres in Los Olivos, Calif., and "less than 500" acres nearby, which are enrolled in the Williamson well as having interests in Sacramento. In Gold Mountain, Schoff stated last April, at the time that he purchased the bankruptcy assets, that he was undergoing a $3 million purchase of the remaining unsold lots, a purchase from three entities. The number of lots is unknown, and Schoff said that the sellers prefer to keep the information confi- dential. When asked if the other Plumas County property taxes were paid, Schoff replied, "It is my understanding that the Feather River Inn and Long Valley Resort properties are unpaid, awaiting the outcome of the litigation between the HSRA (High Act; 45 acres in the Santa Sierra Rural Alliance) and the Lucia Preserve in Carmel; and county." a motel outside Los Alamos as Sales Tax E-File Individual Business Non-Profit Bookkeeping Payroll Notary Taxes Mary Cheek, EA, CPA Certified Public Accountant Licensed to practice by the IRS 258-1040 Over 18 years expedence  f ,,130 Willow St., Chester (Next to Chevron) MaryCheekCPA@FrontlerNet.Net Peace of mind is as dose as the nearest New York Life agent i Oalo lazzarono, LUTCF At CA 0705421 New York Ufe Insurance Company 3716 lakeside Drive Suite 200 Reno, NV 89509 (776) 67 dllmroneQR.newyodd.com 2010 New York Lift lmtmmcc Company, $1 Madlmn Acnu, New York. Ni t 10010 SMRU 00409007CV (Exp. 0611 I) AGY-1547 100272 To send a legal: typesetUng@plumasnews.com To send an advertisement: mail@plumasnews,com