News Roundup: All Good Things

News Roundup: Grants

News Roundup: Alterra, Boyne, Powdr and Vail

News Roundup: Early August

Pacific Group Resorts Bids $58 Million for Jay Peak

The Jay Peak Receiver today filed a motion to enter a sale agreement with Pacific Group Resorts, Inc., a Park City-based operator of five North American ski areas. Importantly, the proposed sale process allows for bids from other companies in excess of PGRI’s $58 million offer. “The time has come for the Receiver to sell the Jay Peak Resort,” wrote Akerman LLP, the law firm appointed to oversee Jay Peak and related assets after the Securities and Exchange Commission uncovered widespread fraud. “When the Receiver took over the Jay Peak Resort in April 2016, it was on the verge of collapse having little money and making very little profit,” receiver Michael Goldberg wrote. “Now, after more than six years, the Jay Peak Resort is significantly more profitable and hundreds of jobs have been saved. The Receiver attributes this success to his top notch management team and the dedicated employees who work tirelessly to make Jay Peak one of the greatest ski resorts in the country,” The Asset Purchase Agreement does not include Burke Mountain assets, which are currently part of the same receivership.

It’s not clear how long the sale process will take but under the agreement potential bidders would have 30 days from the time the District Court approves bid procedures to submit offers. If qualified bidder(s) beyond Pacific Group emerge, a private auction would take place shortly after the bid deadline. Should another buyer prevail, Pacific Group would be paid a breakup fee of $1.25 million plus expenses from the sale proceeds. “Other parties have expressed interest in purchasing the Jay Peak Resort over the past few years, however, only Pacific Group Resorts, Inc. has been willing to submit a binding bid,” notes the motion. “The Receiver is hopeful that perhaps another bidder will surface at the auction.”

No matter who ends up with Jay Peak, the sale will certainly have season pass implications. Pacific Group Resorts currently operates Mt. Washington Alpine Resort on Vancouver Island, Powderhorn Resort in Colorado, Wisp Resort in Maryland, Wintergreen Resort in Virginia and Ragged Mountain Resort in New Hampshire. None of those mountains currently participate in the Epic, Ikon or Indy multi-mountain passes. Jay Peak on the other hand is the single largest Indy Pass resort by redemptions.

After news of the potential deal surfaced, Pacific Group Vice President and Chief Marketing Officer Christian Knapp tweeted “The possibility of Pacific Group Resorts, Inc. purchasing Jay Peak Resort is extremely exciting and would be an incredible fit for our company, but by no means is it a done deal. Filing the APA is one more step in an extraordinarily long process that started more than 3 years ago.”

News Roundup: Gunstock & More

Park City Mountain Appeals Lift Approval Revocation

Park City Mountain on Wednesday appealed the Park City Planning Commission’s decision to revoke approval of the permit to upgrade the Silverlode and Eagle chairlifts, which were scheduled to be built this summer. “The City Planning Director made the right decision to issue this permit, supported by her extensive, four-month-long analysis and the advice of three outside experts,” said Sara Huey, Vail Resorts Senior Manager of Communications in a statement. “There is no evidence that she made a mistake, and we believe her decision will be upheld in this next step in the process.” Silverlode was scheduled to become Vail Resorts’ first eight passenger and first D-Line chairlift in North America and Eagle was to be a detachable six with a mid unloading station. The appeal was filed in District Court.

Four citizens appealed the initial approval, arguing the project should not have been approved by administratively by city staff. They also questioned the degree to which the new lifts would increase traffic and said the mountain’s parking mitigation plan was insufficient. The residents’ appeal was granted by a vote of 3 to 1 at a June Planning Commission meeting. “While we disagreed with the outcome, we respect the right of four residents to appeal the Planning Director’s decision and likewise we have the right to appeal the Planning Commission’s decision,” continued Vail’s statement today. “In parallel with this appeal, we, of course, remain committed to working with the City to explore options to ensure that the resort moves forward with these important replacements of equipment that was installed many decades ago.”

While the process plays out, Doppelmayr and Park City are placing lift equipment which has already been delivered into storage. When I stopped by last week, parts were being sorted and loaded onto trailers.

Error Pauses Bergman Bowl Construction at Keystone

Keystone Resort has apologized and halted some work on the Bergman Bowl expansion due to a mistake made by the construction team. “An area that was supposed to have a minimal construction route was instead approached as a temporary construction route. This was due to a misunderstanding by our construction team, for which we take full responsibility,” read a statement from Keystone Vice President and General Manager Chris Sorensen released this afternoon. “Keystone Resort has a long history of successful partnership with the U.S. Forest Service on projects that provide guests the opportunity to enjoy outdoor recreation within our National Forest. We take this mistake seriously, and at their direction have paused some work at the site while the USFS conducts an assessment to determine next steps,” he continued.

The expansion encompasses 555 acres with 16 new trails and is one of the largest capital projects in the United States ski industry this season. Leitner-Poma was in the process of building the six passenger Bergman Express, set to top out at 12,282 feet in elevation. Keystone’s statement did not specify whether it was resort employees or a contractor that made the mistake. “We deeply regret the impact this unauthorized construction activity has had on the environment that our team works carefully to protect every day. At this time, we do not yet know if this will impact the opening of lift-served terrain at Bergman Bowl this season,” said Sorensen, who promised to keep the public informed.

The Bergman project is part of the Epic Lift Upgrade, a push to build or replace 21 lifts across 14 Vail resorts in 2022. Two large lift projects at Park City were already dropped from this year’s program due to a successful appeal by local residents.

News Roundup: Contract Awards

Gunstock Shuts Down Following Management Resignations

New Hampshire ski area Gunstock ceased most operations today following a contentious public meeting last night. The county-owned resort’s management resigned en masse, citing treatment by a group of citizens appointed to oversee the ski area. Tom Day, Gunstock’s President and General Manager, tendered his resignation along with other managers including the Chief Financial Officer, Director of Human Resources, Director of Marketing, Director of Resort Services, Director of Snow Sports and Director of Facilities. One of five Gunstock Area Commissioners also resigned. The Laconia Daily Sun reported employees’ exits from the property were overseen by the Belknap County Sheriff’s Department this morning.

The five Gunstock Area Commissioners are appointed by Belknap County’s State Representatives. The Commission has become increasingly involved in day-to-day operations of the ski area in recent years. “Obviously there’s been a lot of change and a lot of you think you can do the job to be able to run the resort,” said Day at the beginning of the meeting. “I know there’s been some discussion about what my role is as far as who runs the ski area and who doesn’t. I feel that my role here is diminished and you probably don’t need me,” he said, offering to stay for two weeks to facilitate a transition.

The ski area, which features five chairlifts and a 1,600 foot vertical drop, has not required taxpayer funds for operations the last 12 years and remits 1.75 percent of its revenue to the county. Just last year Gunstock reported record revenue and season pass sales and announced a major expansion project including new terrain and lifts.

New Hampshire Governor Chris Sununu, himself a former ski resort general manager, criticized the commission and offered support to employees. “Gunstock is truly one of the jewels of the lakes region, but what has been happening over the last year surrounding the Gunstock Area Commission’s inability and unwillingness to work collaboratively with the management team at Gunstock is deeply concerning,” the Governor wrote. He went on to offer employees jobs at state-owned Cannon Mountain or the Parks Department should a resolution not be reached at Gunstock.

The mountain’s summer activities, which include lift rides on the Panorama Express, a mountain coaster and zip line, are closed until further notice. “We truly apologize for any inconvenience this may cause our guests,” said a notice posted on Gunstock’s social channels and signed by Gunstock Mountain Resort Employees.

Update: Thursday afternoon the Gunstock Area Commission issued a statement condemning staff members for resigning and pledging to reopen as soon as possible. “At the Gunstock Area Commission’s monthly meeting last night, the GAC planned discussions with management about ongoing expansion plans. Instead of discussing those plans, the GAC was met with an unsolicited and spontaneous resignation by senior managers and a commissioner,” the statement read. “In light of last night’s unprecedented actions, the GAC is developing plans to ensure Gunstock’s continued operations as seamlessly as possible. Gunstock has an important legacy in the ski industry’s history and the GAC intends to maintain that legacy,” the Commission wrote.