State of Vermont Orders Jay Peak Tram Closed

The State of Vermont Passenger Tramway Division sent a letter Tuesday to Jay Peak Resort, ordering its aerial tramway shut down until significant upgrades are completed.  Jay Peak agreed last fall to make critical repairs to the tram with more upgrades to be completed this spring by Doppelmayr/Garaventa.  The State says Jay Peak has not completed these upgrades in advance of the summer season, hence the formal Order for Corrective Action sent this week.  The Jay Peak Aerial Tramway was built by VonRoll in 1966 and received new 60-passenger cabins in 2000.

On April 14, the Securities and Exchange Commission seized control of the resort from its owners, alleging a $200 million fraud scheme.  Florida attorney Michael Goldberg was placed in charge by a federal court and tasked with sorting out Jay Peak’s finances so the resort can be sold.  Jay reportedly lost $6.2 million last winter and Mr. Goldberg is looking for cost savings.  When asked about the upgrades needed to the tram a few weeks ago, Goldberg told the Burlington Free Press, “It kind of sucks that has to happen now.”  He also questioned Doppelmayr’s assessment of the tram, stating at a press conference, “we’re not even sure we have to fix the tram.  The company that tells us we have to fix it is also the one that will get the contract.”

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