SUMMIT DEVELOPERS ON A MERRY GO ROUND-DESPERATELY TRYING TO GRAB THE BRASS RING?

It's a genuine piece of Americana, seldom found in amusement parks these days. Riders, usually children, mount  the merry go round's outside horses, leaning out precariously to grab the ring from an outstretched metal device- the brass ring sought, as it guarantees a free ride. Most, if not all, of the rings turn out to be pot metal; these are gleefully flung at a clown with an open mouth. Children are seemingly just as happy with the losing rings; they have gotten to do something mildly dangerous (lean), and they have gotten to pitch something that made noise- kid pleasers both.

On the other hand, developers on Merry Go Rounds, riding the carousel of financing, publicity, and governmental entitlements processes, seek the brass ring, the golden ring,  and the platinum ring.  Sometimes the rings they seek just aren't there- perhaps someone failed to fill up the ring dispenser, or perhaps the roundabout they're riding has horses that go down  when they're supposed to go up. 

Down, like our economy. Those who follow the financial pages are well aware we have a liquidity crises- despite the Fed, and now the Bank of America riding their glossy white horses in to the rescue, well, those horses are trapped on the same economic Merry Go Round, and the ride isn't over yet.  The bear rides the same Merry Go Round, and it seems he's been having quite a ride lately. As a result, there's not a lot of money to loan for purchasing timeshares and second homes, the apple of the eye of Sierra developers.

Another name for Merry Go Rounds is Flying Horses.  There's an old English saying, "If wishes were horses, then beggars would ride." Leaving out the noxious classism, the jist of this is "just because you want it, you don't get it".  The flying horses developers ride are saddled with all their expectations of  financing, governmental entitlements, and, ultimately, profit. Just sometimes, though, reality gets in the way. Money is drying up faster than a  Sacramento sprinkler puddle on a hot day.  Governmental entitlements are having to pass the global warming reality check. Profit? Your guess is as good as mine. 

Our erstwhile friendly Donner Summit developers, Todd Foster, Kirk Syme, and investors, collectively known as Royal Gorge LLC, have been frantically grabbing at rings. Financing- no one knows how well they're doing, as their project is not publicly traded. Investors may be justifiably wary after Kirk Syme's bridge-burning exercise in Monday's Sierra Sun.  Publicity- I don't think so- if the best publicity they could conjure up this week was their plaintive complaint in the Sierra Sun that all the community and environmental groups on the Summit didn't want to talk to them (surprisingly not true)...please, maybe someone needs to review what PR is supposed to do. The platinum ring of government entitlements, the stamp of approval from the Placer County Board of Supervisors will take years of working the system, with the possibility that it could be snatched away at the last minute by successful court challenges to their large proposed development.

When developers buy, as Royal Gorge LLC did, a functioning, world class cross country ski resort, and adjacent  parcels of land, none of which was zoned for condominium development, they shouldn't expect to cut to the front of the Merry Go Round line.  When they have failed to establish water supplies, and sewage disposal methods that don't  involve drastic change to the existing infrastructure, and damage to the fragile environment, they should not expect a free ride. Maybe, just maybe, what they purchased was pot metal in terms of development potential, and they should stop chasing the brass ring, have some candy corn, some cotton candy, and, well, enjoy all the lovely corn snow.

KTG