Big Burke announcement

[thetrailboss]

The single biggest reason not to be seen as an arrogant dunce in an industry and 50 mile radius is....... staffing.

None of this other stuff you are discussing comes in even a close second. Resorts have zero chance of forward progress if the 10-20 key positions around the resort turn over constantly and get filled with lesser and lesser talent, that still turns over. The actions of the owner control this directly and thus dictate the success or failure of their vision. In hospitality, a leader cannot lead without a strong, committed and unified team. Otherwise they are leading a slow boat to somewhere.

Plenty of (usually newbie single owner) resorts have struggled with this over the years, but as long as there is enough money, time can heal the wounds, and perhaps that time is soon.

+1


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[Big Wave Dave]

I wouldn't sell yet as the stock can't get any lower .....

really? Guess you missed the bankruptcy auction then.

 

[SnowDogWax]

We need snow way to much time on our hands...

 

[the original trailboss]

really? Guess you missed the bankruptcy auction then.

I was there?

 

[thetrailboss]

We need snow way to much time on our hands...

+ 1

 

[thetrailboss]

This may be of interest:

http://www.theatlantic.com/business...et-wealthy-foreigners-buy-citizenship/406432/

 

[thetrailboss]

So just saw on the Cal Rec that Burke is appealing the tax valuation of the (incomplete) Hotel Q to the state. I can't see the whole article because it is behind a paywall, but if I had to guess the town valued it to include the (partial) improvements to the land and Q thinks it should be $0 increase because the Hotel is not done and worth $0 as a business.

 

[Smellytele]

So just saw on the Cal Rec that Burke is appealing the tax valuation of the (incomplete) Hotel Q to the state. I can't see the whole article because it is behind a paywall, but if I had to guess the town valued it to include the (partial) improvements to the land and Q thinks it should be $0 increase because the Hotel is not done and worth $0 as a business.

I thought this was already posted in this thread

 

[thetrailboss]

I thought this was already posted in this thread

I think that is the first round of appeals to the Town; now they are in Superior Court I think.

 

[VTKilarney]

I don't have the article in front of me, but my recollection is that the appeal is to the state's Division of Property Valuation and Review. You have the choice between filing the appeal with the state agency or with the local superior court. It's interesting that they believe that they have a better chance with the state than with the local judge sitting in their own county.

IMHO it's a losing argument. Property has value even if it is not yet open and generating income. Someone looking to build a hotel would pay more for a new, partially built hotel than a vacant lot. That's just common sense. But apparently they want expect sense to be thrown out the window.

 

[DoublePlanker]

I think it sucks they have to pay taxes on a property under construction that is not generating revenue. Its only going to hurt the business which is hurting enough already. Taxes suck.

 

[VTKilarney]

I think it sucks they have to pay taxes on a property under construction that is not generating revenue. Its only going to hurt the business which is hurting enough already. Taxes suck.

The valuation wasn't that much - especially in light of the overall construction cost. They chose to build the hotel. They should have expected to pay taxes on it even if it wasn't completed. Nobody likes paying taxes, but this was completely foreseeable.


.

 

[SnowDogWax]

They knew what the tax situation was and if not shame on them. But I do agree taxes suck.

 

[faQ]

Taxes do suck, but if I were to say...pour a foundation, with the intent to build on it someday, the town would tax me on that improvement. If you were only taxed on "finished" improvements, there would be a lot of "unfinished" buildings around here.


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[deadheadskier]

Taxes do suck, but if I were to say...pour a foundation, with the intent to build on it someday, the town would tax me on that improvement. If you were only taxed on "finished" improvements, there would be a lot of "unfinished" buildings around here.


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kind of like Mexico


My brother spends a lot of time in Mahahual. Many of the homes still have rebar coming out of the roof as they "intend" to add a second story. They don't have to pay taxes on the building as it's considered unfinished property.

 

[halfpintvt]

I took a look at their EB5 filing, they estimate that the hotel would be open 21 days the first year of operation and their property tax expense would be ZERO! The 2nd year of operation they estimate their property tax expense at $240,000 and each year after that they estimate their property tax expense to be $480,000. Bill Stenger has done business in Vermont for many years and knows the way property taxes work. I have no idea how he thought he would pay ZERO the first year and 1/2 the usual bill in the 2nd year. I guess they will be appealing their property value next year too!

 

[VTKilarney]

And on top of it they are wasting money on an appeal. Talk about doubling down on a bad idea.


.

 

[BenedictGomez]

I took a look at their EB5 filing, they estimate that the hotel would be open 21 days the first year of operation and their property tax expense would be ZERO! The 2nd year of operation they estimate their property tax expense at $240,000 and each year after that they estimate their property tax expense to be $480,000. Bill Stenger has done business in Vermont for many years and knows the way property taxes work. I have no idea how he thought he would pay ZERO the first year and 1/2 the usual bill in the 2nd year. I guess they will be appealing their property value next year too!

Are only 50% of the rooms projected to be open next year? That could logically explain why the estimate is 1/2 of the long-term estimate.

In terms of this year, however, that makes no sense. Based on their own partial estimate they'd generate a tax liability of roughly $13,800 for the 21 days of operation assuming you straight-line it.

 

[faQ]

I took a look at their EB5 filing, they estimate that the hotel would be open 21 days the first year of operation and their property tax expense would be ZERO! The 2nd year of operation they estimate their property tax expense at $240,000 and each year after that they estimate their property tax expense to be $480,000. Bill Stenger has done business in Vermont for many years and knows the way property taxes work. I have no idea how he thought he would pay ZERO the first year and 1/2 the usual bill in the 2nd year. I guess they will be appealing their property value next year too!

But...Stenger in not running things, Jr. is.


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[Smellytele]

And on top of it they are wasting money on an appeal. Talk about doubling down on a bad idea.


.

Kind of like Goodell