Jay Peak and Q Burke Mountain Resorts have new management today courtesy of the federal government. In a joint press conference with Vermont’s governor and state regulators this morning, the U.S. Securities and Exchange Commission released an 81-page complaint alleging Q Resorts Inc. owner Ariel Quiros and CEO Bill Stegner defrauded investors and misused $200 million over the past eight years in a “Ponzi-like” scheme.
Operators of Vermont ski resort allegedly misused millions of dollars raised through EB-5 program https://t.co/I4F94eBdct
— U.S. Securities and Exchange Commission (@SECGov) April 14, 2016
The EB-5 Visa program gives foreign investors permanent U.S. residency in exchange for investing $500,000 and creating jobs at American businesses. Funds are supposed to be used for specific projects such as the snowmaking expansion at Mt. Snow. At Jay Peak, Mr. Quiros and Mr. Stegner raised $350 million with 700+ investors from 74 countries for seven different projects. At least $200 million of that money was instead redirected to pay off loans used to buy both ski mountains, purchase a condo for Quiros at Trump Place in New York and pay personal income taxes. “The alleged fraud ran the gamut from false statements to deceptive financial transactions to outright theft,” said Andrew Ceresney, Director of the SEC’s enforcement division.
State of Vermont diagram showing the alleged flow of funds.What does this all mean for the ski operations? The SEC froze assets yesterday and appointed Kansas City-based Leisure Hotels and Resorts to operate Burke and Jay. The company has no ski resort experience but owns numerous hotels in the Midwest. Jay’s Communications Director said this afternoon that Quiros and Stegner no longer have any authority to conduct business or direct operations until the case has concluded.
Longtime Chief Marketing Officer Steve Wright has stepped in as General Manager for now an
As rumored for weeks, Grand Targhee confirmed yesterday on Facebook it will replace the aging Blackfoot double chair with a fixed-grip quad over the summer. The Doppelmayr-built lift will increase capacity by 40 percent and run in an improved alignment, although it will be slightly slower than the old lift. Targhee’s Director of Marketing said in a release, “The entire resort team is excited to replace and upgrade the Blackfoot chairlift. The resort ownership is committed to reinvesting in the resort with ongoing improvements that enhance the guest experience. This is the largest and most visible of many recent capital investments.”
Some will miss Blackfoot’s double diamond loading and unloading ramps, others will not!
Blackfoot is a Riblet center-pole model that’s faithfully served skiers for 42 years. The lift is 3,236 feet long with a vertical rise of 1,200′ and hourly capacity of 1,300. A non-profit in Valdez, Alaska is hoping to buy the lift to create that region’s first lift-served ski area. With a new Blackfoot, Grand Targhee will have four modern quad chairs. The resort also plans to add a third high speed quad in the near future on Peaked Mountain in the area currently used for cat skiing. Removal of Blackfoot begins this week although Targhee will spin its other lifts through April 24th. With this announcement, new lifts in North America are pacing above last year, with 30 projects already announced and hopefully many more to come.
Peak Resorts’ financial footing reportedly worsens amid staff layoffs, reduced operations and spending cuts. The company owns 14 resorts across the Eastern U.S.
Le Relais also has 2 liftsnewly listed (these are being removed to make way for a new six pack.)
LST signs La Plagne to launch the company’s first detachable lift next winter. MND Group CEO Xavier Gallot-Lavallee commented, “We are delighted to announce the initial commercial success of our brand new range of detachable chairlifts. The new contract signed with SAP, a subsidiary of leading ski resort operator Compagnie des Alpes, confirms the benefits of the innovative technology that we have developed and positions MND as a leading market player.”
LST will debut unique new detachable chairs and terminals for a new six-pack chairlift in La Plagne.
Cesar Dockweiler is the General Manager for Mi Teleferico, the growing state-owned gondola network in Bolivia’s capitol city. This week, he’s in Switzerland visiting suppliers working on the Blue and White lines for La Paz, which are about 75 percent complete. Throughout the trip, Mr. Dockweiler has been tweeting updates from CWA and Fatzer to his more than 3,000 followers.
Pictures from CWA show how workers still make gondola cabins one at a time and largely by hand. Because the company builds on demand, even a lift with just four cabins can have its own custom design.
Paso2: las estructuras de lo que serán las cabinas blancas se almacenan esperando su preparación para el pintado. pic.twitter.com/8Yh7eS2ZqI
Apologies for the lack of posts this week, I’m on a ski vacation.
Snowbird granted unanimous approval to build two chairlifts, a new gondola and upgrade the Mineral Basin Express. A zip line will share towers with the gondola in Mary Ellen Gulch.
Boyne Resorts buys 77 acres on Snoqualmie Pass for an improved connection between Summit Central and Summit West that could someday include a new chairlift.
In other Snowbird news, the two-month project to replace the Aerial Tram’s track ropes begins April 18th.
Big Snow America is the latest incarnation of the snow dome at New Jersey’s Meadowlands hoping to be the United States’ first indoor ski slope. The latest plan pegs an opening next year. Doppelmayr CTEC completed two lifts for the project – a quad chair and a platter – back in 2008 that have yet to carry any skiers.
Whistler Blackcomb’s market capitalization surpassed $1 billion last week as its stock reached an all-time high on the Toronto Stock Exchange. Already North America’s largest and most visited ski destination, the company today unveiled a $345 million capital plan, the largest in its history. On-mountain improvements are only part of the initiative which also includes new four seasons attractions, base area revitalization and additional real estate development.
The Magic Chondola will connect Blackcomb base to Base II.
The big lift news is Renaissance Phase One will include a new chondola to replace the Magic Chair connecting the Blackcomb Daylodge to Base II, where a 16,300 square foot waterpark and skier services building will go up. The park and chairlift will be just one component of a new Blackcomb Adventure Park with a mountain coaster and more. The chondola will be open day and night to connect the key destinations at both ends. I suspect W-B will also expand hours on the first section of Excalibur to create a true gondola transit system between the Blackcomb base areas and Whistler Village.
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