Bolton paid $4.15 million in wake of sagamore sale

BOLTON LANDING While the sagging economy may have prompted the sale of the Sagamore Resort, the town of Bolton is reaping a windfall from the transaction. Bolton town government deposited a check for $4 million last Thursday as their portion of the proceeds of the recent sale of the property from Green Island Associates to Sagbolt LLC, Bolton Supervisor Kathleen Simmes said. Also, the town is scheduled to receive another unexpected bonus of $125,251 in the next several months from the transaction from mortgage tax revenue. Were sitting on top of the world right now, Simmes said about the windfall. All I can say about this is Yeeaaaay! The $4 million was paid last month at the closing of the sale, as a repayment of a $5.27 million loan in 1984 from the town to Green Island Associates to help bankroll the resorts redevelopment. The town had received the sum from the federal government as an Urban Development Action Grant, and the money was intended to be used as a permanent revolving loan fund. A negotiation years later of this Sagamore debt, at the time of a mortgage refinancing, resulted in Green Island Associates promising to repay 20 percent of the net proceeds of any sale of the resort up to a cap of $4 million. Due to the recent $88 million sale price, the town received the $4 million maximum. TD Banknorth notified the town Monday the money had been deposited two business days earlier, Simmes said. Were going to be talking with our financial advisors on where to put this for the short term, then well be putting it into a special account and forming a committee to consider economic development options. The unexpected bonus of $125,251 headed toward town coffers is from mortgage tax revenue. In buying the historic, sprawling upscale resort, Sagbolt borrowed a little more than $25 million from Yellowstone Acquisitions Corp., and the mortgage is subject to the countys mortgage tax. Sagbolt paid the 1 percent mortgage tax amounting to $250,502. The payment was made the day the mortgage was filed Sept. 30, one day before the mortgage tax was raised by Warren County law from 1 percent to 1.25 percent, county Clerk Pam Vogel said Monday. Of this sum, $125,251 will be going soon to the town of Bolton, $62,625 will be going to the county, and $62,625 will go to the state, Vogel said. If the company had waited one day, it would have faced $62,625 additional in mortgage taxes, she said. The new 1/4 percent mortgage tax increase on all mortgage transactions in the county from Oct. 1 on will be going to Warren County, increasing their share of the mortgage amount to one-half percent of the borrowed amount. Monday, the town board had plans on welcoming Ike Wolgin of Green Island to present a ceremonial $4 million check to commemorate the $4 million loan refund. Simmes said this sum was large for a town with an annual budget of about $5 million. You can be sure were not going to spend this money willy-nilly, she said.

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