- 3 -
Towers was incorporated on May 22, 1979, and elected status as an
S corporation on December 29, 1986.
Petitioner also owned and operated marinas on Lake
Minnetonka in Minnesota through a number of wholly owned
corporations.2 To acquire the marinas, petitioner personally
guaranteed bank loans used to acquire the marinas and pledged the
mobile home parks as collateral. Initially, petitioner was
successful in the marina business. During a drought in 1988 or
1989, however, water levels at the marinas fell significantly.
Boaters began removing their boats from the marinas, and the
cash-flow from petitioner’s marina business practically stopped.
During the drought, Bonnevista and Castle Towers were
generating positive cash-flows from the mobile home parks. These
funds were used to help keep the marinas operating temporarily.3
Eventually, however, petitioner lost both the marinas and the
mobile home parks.4
2 These wholly owned corporations include: St. Albans Bay
Marina & Yacht Club, Inc.; Tonka Bay Marina & Yacht Club, Inc.;
Shorewood Marina & Yacht Club, Inc.; Maxwell Bay Marina, Inc.;
and Smith’s Bay Marina, Inc.
3 The record does not reveal the nature and amount of these
transactions.
4 The record is unclear as to exactly when or in what manner
petitioner lost these businesses, or exactly when any of the
various corporations may have actually gone out of existence.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011