Yes InDEEDy

Well, just a little tidbit today from some documents on file with Placer County

Well, first off, we had a look at Construction Deed of Trust, Assignment of Leases and Rents and Security Agreement (Including Fixture filing )- made by Royal Gorge, LLC, Rainbow Holding Company, Ltd., A Limited Partnership, Royal Gorge Partners, A California Limited Partnership, and Royal Gorge Lands Partners, a California General Partnership, to First American Title Company, of Reno, Nevada, in favor of Bank Midwest N.A., of Kansas City, Missouri for the loan amount of $17,000,000.  Serene Lakes economic gnomes (not quite gnomes of Zurich class) have run some magic numbers. 

Talk on the trails has been that in June of 2005, Royal Gorge LLC paid or contracted to pay $34 million for the Royal Gorge Lands, and Rancho Monterey lands (inclusive of Rainbow Lodge, but not Ice Lakes lodge). Tax assessment records show those lands and property improvements to be worth $13.9 million.  The applications for liquor licenses also recorded with Placer County, show they paid $20.1 million for the business value (good will and assets) of the Cross Country Ski operation and Rainbow Lodge (which we believe to still be on the market for $7 million).  $13.9 million plus $20.1 million adds to the magic  $34 million.

The aforementioned loan of $17 million represents a 50% loan on that purchase--it's hard for a developer to get larger than a 50% loan on unentitled property, as there are too many uncertainties involved in getting permission from counties to develop. (problems like no water source and inadequate sewage disposal do tend to get in the way)

The documents show that Royal Gorge LLC, Rainbow Holding Company, LTD, A Limited Partnership, Royal Gorge Partners, A California Limited Partnership, and Royal Gorge Lands Partners are all the same, all owned by Todd Foster and Mark Foster, aka Foster Royal Gorge LLC,  and Kirk Syme,  aka Woodstock Royal Gorge LLC.

Well, that's all for today.  Three questions though.  Why hasn't the 5 acres of Summit Lodge, valued by the county in 1986 at under $1,600 been reassessed? Why, in the pre-application document to Placer County, did Royal Gorge refer to lands they owned or "controlled"?  And why, in at least two news articles, did Mr Livak, project director for Royal Gorge LLC, complain about what a money loser the Cross Country Ski Resort is,  when Foster, Foster, and Syme paid over $20 million for the business value of the resort?

KTG