News Roundup: Interior BC

Town of Nederland, Colorado to Buy Eldora

The Colorado town located closest to unincorporated Eldora Mountain Resort plans to purchase the mountain from Powdr Corporation by October. A signed term sheet comes after months of negotiation and work behind the scenes between Powdr and the Town of Nederland. Powdr will continue to operate the mountain for two years until a “coalition of Front-Range ski industry veterans” takes over. The town plans to quickly add summer activities, a first for the 63 year old mountain. “Nederland aims to turn Eldora into a year-round, community-driven asset– expanding recreation, sparking local jobs and outdoor industries, and weaving sustainability and social equity (i.e. workforce housing) into every run, trail, and event,” said an announcement from Nederland’s Board of Trustees. “These economic development opportunities will give the Town a long-needed, sustainable way to fund infrastructure.” Eldora will remain partnered with the Alterra-owned Ikon Pass as it has been since Ikon’s inception in 2018.

Eldora is one of five mountains Powdr placed on the market last summer. Killington and Pico in Vermont sold to a local ownership group while Mt. Bachelor, Oregon was eventually pulled off the market in April. SilverStar, British Columbia remains for sale. Powdr always planned to retain Boreal and Soda Springs in California; Woodward Park City and Snowbird in Utah as well as Copper Mountain, Colorado.

Once the Eldora acquisition is complete, Nederland plans to annex the ski area, which operates partially on private land and mostly in the Roosevelt National Forest. Annexation could add $1-2 million in annual tax revenue to the town’s general fund. Eldora’s 700 staff will eventually become municipal employees, offering new benefits to them. “To the Powdr team: Thank you for stewarding the mountain thus far,” wrote the town trustees. “We take our responsibility seriously and we are forever thankful for your belief in us to continue your legacy.”

The town plans to issue municipal revenue bonds backed by the resort’s earnings, not tax revenue for the purchase. The total sale price remains confidential. The mountain is profitable though and projections show the town could build a $10 million reserve in the first few years of ownership. “The Town will also be exploring opportunities for grants and private-sector dollars to help lower the total debt,” an FAQ noted. The sale is expected to close by the beginning of October if everything goes smoothly.

News Roundup: Contingency Plan

Killington to Replace Superstar Express and Upgrade Skyeship Gondola

The sale of Killington and Pico to local investors has closed and today the group announced their initial tranche of capital investments. Over the next 12 to 16 months, Killington plans to spend roughly $30 million to build a Superstar Express six pack, add 1,000 HKD low energy new snow guns and replace all 116 Skyeship Gondola cabins. Skyeship’s cabin storage facility will also be replaced in the near future. The current Superstar lift is the oldest detachable chairlift in New England, dating back to 1987 (tied with two other lifts at Killington/Pico and the Grand Summit Express at Mount Snow.)

The news comes just over a month since Powdr announced the sale of Killington and listing of three other resorts. “Over the next 10 years, our goal is to reinvest all the profits the mountain creates,” said Michael Ferri, one of two lead investors in Killington Independence Group, LLC, comprised of 16 total investors. “[Profits] will stay here in Vermont, they will stay here at Pico and they will stay here at Killington,” said Ferri.

A new Sigma Diamond cabin installed on the K-1 gondola, the same model Skyeship will receive.

Surprisingly after 37 straight lifts from other manufacturers, Killington selected Doppelmayr to construct the new Superstar Six. Unlike Killington’s Snowdon Six, the new lift will not feature bubbles. “There are a number of factors, but this lift is a relatively short ride which makes having bubbles on the lift less impactful, especially considering the added complexity of needing a storage barn for overnight storage of bubble chairs,” said Killington. Superstar has one of the longest winter operating schedules in the country, spinning for World Cup ski racing in November all the way until the end of the season in May or June. “The Superstar lift replacement will affect spring skiing this season and potentially the 2025 Stifel Killington Cup, noted Killington President and CEO Mike Solimano. “We do plan to make more snow in North Ridge to extend the season in the Canyon this year and are working with the lift manufacturer to finalize the construction plan for the lift before making the call on the Killington Cup,” he continued.

Skyeship Gondola, set to receive new cabins and a new maintenance facility.

Leitner-Poma will supply new cabins for Skyeship, the same Diamond model the K-1 Gondola received in 2018. “Many of our current operational challenges with [Skyeship] can be attributed to the older cabins,” noted Killington. “The challenges are exasperated by not being able to store the cabins in a heated building causing door opening and closing mechanisms to become frozen overnight.” All of these improvements are slated for the next two years with more expected to follow over the next decade.

News Roundup: Sold Out

Mt. Bachelor to Replace Idled Skyliner Express

The second six place chairlift in Oregon will debut for the 2023-24 ski season, Mt. Bachelor and parent company Powdr announced today. The larger detachable will increase capacity by 50 percent from the current Skyliner Express, which debuted in 1989 and has remained out of service this season due to technical issues. Mt. Bachelor and Doppelmayr will repair the aging high speed quad for the coming 2022-23 season before replacement begins a year from now.

“Since Skyliner went out of service the team and I, together with Powdr have been working parallel paths, first to try to get the lift repaired for the current season and second to either replace or repair the Skyliner lift in time for next winter,” noted President and General Manager John McCleod in a blog post. “As it turns out, we are going to do both,” he continued. “If there had been any way that we could have replaced Skyliner with a six-pack over the coming summer we would have done it, however by the time we began talking to lift manufacturers in January their production and installation schedules were fully committed for 2022.” The Lift Blog 2022 project count stands at 56 with 35 of those being new detachable lifts across North America.

Exact specifications for the new Skyliner are yet to be determined but it will become the largest lift investment in Mt. Bachelor’s history. A manufacturer was not publicly announced and Mt. Bachelor did not immediately respond to a request for comment on that.

News Roundup: Forecasting Demand

News Roundup: Race to Open

News Roundup: October Turns

  • Skiing is open this weekend in Alberta, Colorado, Minnesota, New Jersey Ontario and Wisconsin!
  • Garibaldi at Squamish releases new renderings of what could be a $3.5 billion project.
  • Searchmont holds off on making snow, offering lodging or selling passes and will only install one of the two Skytrac lifts it ordered due to Coronavirus.
  • In a rare interview, John Cumming tells the story of Powdr.
  • Big Snow and American Dream post promising attendance numbers after reopening.
  • The latest capacity management video from SAM and Snow Operating focuses on lift capacity math in the Covid era.
  • With two operating and five more under construction, Mexico’s capital region considers building even more urban gondolas.
  • The gondola network in Puerto Vallarta appears complete but surrounding theme parks and hotels have a long way to go.
  • Skeetawk has a trail map and will open for the very first time December 5th.
  • Only one of Shanty Creek Resorts’ two Michigan ski areas will open this winter.
  • Following the death of its owner, Granite Gorge does not plan to operate this year.
  • Frustrated at lack of investment, local business owners look into buying Mont-Sainte-Anne from Resorts of the Canadian Rockies.
  • A three gondola system connecting various points in Park City would cost an estimated $64 million to build with $3.5 million in annual operating costs.
  • The Freedom Pass comes back but with fewer participating resorts than in years past.
  • With revenue down eight figures, the Palm Springs Tramway takes out a $15 million loan.
  • French President Emmanuel Macron orders the country’s ski resorts closed until at least December 1st due to rising coronavirus cases.
  • Of 6,521 comments the Utah Department of Transportation received on Little Cottonwood Canyon options, 78 percent were pro-gondola.
  • Granby Ranch will reopen under new management December 11th with more than $1 million invested in lift maintenance and snowmaking.
  • Soldier Mountain gives another fire recovery update.
  • Technical Safety BC releases an incident report and technical analysis from the latest Sea to Sky Gondola incident (both are heavily redacted so as not to impede the ongoing criminal investigation.)
  • Camelback’s new Sunbowl Quad nears completion.

Following Cancellations, How Will Lift Construction Recover?

When Vail Resorts spelled out its suspension of operations in mid-March, the shutdown was hoped to last only a week.  Fifty days later, all 37 resorts remain shuttered and the company has borrowed more than a billion dollars to weather a possible extended recession.

Almost immediately, Vail Resorts postponed discretionary capital improvement projects including seven new chairlifts.  Vail is just one of numerous operators of lifts facing epic challenges due to COVID-19.  The impacts trickle down to suppliers, particularly global suppliers of large machinery like the Leitner Group and Doppelmayr.  While the two major lift manufacturers are of similar size and structure, their customers are incredibly diverse, from mom and pop outfits to governments, NGOs and Fortune 100 companies.

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As regular readers of this blog know, the lift business is not the same as the ski business.  Leitner-Poma, Skytrac and Doppelmayr USA have all completed projects for non-ski venues recently such as theme parks, zoos, stadiums and cruise ports.  Not only are these projects making up an increasing share of contracts, they tend to be large in scope and often include lucrative operation and maintenance deals.  Some of these non-traditional customers are in even worse shape than the ski business, more dependent on high guest densities and air travel.  Put another way, there is little chance the Walt Disney Company, Carnival Corporation or the Miami Dolphins would have signed to build their recent lift projects in today’s environment.  So-called “point of interest” projects may disappear entirely for a few years.

One bright spot could be urban transport.  The Portland Aerial Tram and Roosevelt Island Tramway have both remained operational throughout the pandemic, albeit at reduced capacity (the Portland Tram carries health care workers to three different hospitals and is about as essential as it gets.)  Large aerial tramways have been ceding market share to monocable, 2S and 3S gondolas, a trend which will probably accelerate with new personal space concerns.  With gondolas, each person or family can take their own cabin unlike on trains or buses.  There are lots of great concepts for urban gondolas in North America and infrastructure spending programs could finally get one or two off the ground.  Mexico already has a large urban gondola system in operation with two more under construction.

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