Receiver Announces that Burke has a Stalking Horse Bid and Deal will Close by End of 2024

[RH29]

So yesterday I talked to family who are in the Kingdom and work in East Burke. The situation at the Mountain is worse than advertised. There is no more food service at the Sherburne Lodge. Instead they have a food truck. The Sherburne Lodge is also in rough shape. Tamarack is not really a going entity (and has not been for a while). The J-Bar is not opening this season due to a mechanical problem. So, ala Vail, it has been removed from the website so that Burke can report 100% open for lifts. The grooming has been "terrible". Lots of trails half-groomed, and those that are groomed are not done well, so you have to ski and ride with care. East Bowl, Powderhorn, and some other classic trails are no longer groomed. And while there are races on the weekends, trails are closed midweek for "training". So lots of locals are not happy and conditions are "dog shit". Now I understand the petition as well as the article. It's not good.

This is very good info to know. I was thinking of doing a split Burke/Jay next weekend, but probably won't bother with Burke if their main product (which Jay lacks in), long and uncrowded cruisers, is in the shitter.

 

[thetrailboss]

This is very good info to know. I was thinking of doing a split Burke/Jay next weekend, but probably won't bother with Burke if their main product (which Jay lacks in), long and uncrowded cruisers, is in the shitter.

When were you going to go? If Burke gets more snow then things could change. But the folks I know love the groomed narrow trails and so far these have not been good.

 

[Big Wave Dave]

This is very good info to know. I was thinking of doing a split Burke/Jay next weekend, but probably won't bother with Burke if their main product (which Jay lacks in), long and uncrowded cruisers, is in the shitter.

When were you going to go? If Burke gets more snow then things could change. But the folks I know love the groomed narrow trails and so far these have not been good.

This was Saturday mid day.. It snowed most of the day Sunday and again last night with snow almost every day this week. Groomers are in fine shape. Sherburne Lodge is a mess for sure. But otherwise I would say Burke is skiing pretty much like it always has. Thin spots are thin. Stuff like bear den and ledges and graham slam (natural snow) are great. Wind blown stuff like Doug’s drop or the thin choke points on powderhorn are early season thin. It’s worth the trip for ripping groomers this weekend was a blast.

 

[B-Eastski]

Some observations:

1. I don't feel that the Receiver deserves as much criticism as the author outlined. The alternative would have been Burke shut down. His obligation is to protect the assets for the defrauded investors. The problem is that he has about $50 million of defrauded investors and a resort that has a purchase offer of $10-13 million. The one legitimate criticism is that the sale is taking too long and that the value of the resort is dropping. I agree.
2. On that note, the author answered the question of "why is this taking so long" without realizing it. That is there are too many cooks in the kitchen on this deal. She disclosed that BMA's easement was recently amended and enlarged. She also disclosed the Homeowners Association. Then you have the 100 defrauded investors. Then you have those 100 defrauded investors who at least want a Green Card and need Burke to create X number of jobs. On the "Storm Podcast", Jon Schaefer himself alluded to this fact that there are too many complicating factors in this deal so he pulled out. This article explained some of those other factors.
3. The understanding on the ground was that "the interested bidder" was always Don Graham and his kids. Now we learn that the bidder was another BMA family--Mark Greenberg. I've never heard of him. It was not surprising to me that Graham didn't take any calls from the author. He keeps a very low profile. Perhaps the Grahams are silent partners for Greenberg--both literally and metaphorically. I don't know of Greenberg's track record on other projects. Does anyone know him?
4. The identity of Greenberg's "partner" still remains a mystery. "Greenberg has a partner whose family owns ski resorts and has experience with turnarounds and expertise in quality snowmaking." That sounds exactly like the Schaefer Family but, if Jon was telling the truth, it ain't them anymore as he said in 2023 that they were out of the deal. As to other partners, I guess that could describe Boyne, but I don't see Boyne as having much interest considering how much is needed to invest in the resort. Reading in between the lines, it does not sound like Pacific Group either. So this remains a big "?"
5. AR is correct about the summer business and mountain biking. My late Uncle, "the original trailboss" thought that the mountain biking crowd was an odd bunch for business. He commented that it was common to see folks come for the weekend with $10,000 bikes but sleep in their cars or in tents at the campground and eat raman. It is an interesting juxtaposition. I laughed when he said that back in 2017 or so, but from what I have seen, he is right. The last few summers when we have returned to Vermont I have spent most of the time in Burke. In 2023 we stayed a week at the Burke Mountain Hotel. In town one sees out-of-towners with decent cars but expensive bikes and gear. Yes, they buy beer and food, but most were not staying at the Hotel. During our week, a fair amount of the Hotel was empty, largely due to repair work for the flooding incident that they had earlier that year. There were a couple small conventions that had some overnight guests (from in-state), a few bikers, and a few others. But it was not overrun by bikers. We got a pretty good deal on our room as well. So, yes, there is MORE summer business now than there ever has been, but it is not gangbusters nor enough to probably entice someone to invest a lot of money. Perhaps if "they build it, they will come", but folks have been saying that about Burke for 40 years.....
6. The context as to why BMA, and Willie Booker in particular, were mentioned is interesting. It appears that at some event a condo owner complained to Booker about BMA's impact on operations. In fact, BMA can often, without any real warning, close a ski trail for training. When they train on the Dipper's it closes down most of the terrain on the east side of the mountain. That is a legitimate complaint. The fact that BMA's easement is over 50 pages is a real shock. The details about the snowmaking base depths was also interesting. But without BMA there is no mountain. In the 25 years or so that the Dippers have been in existence, extensive trail closures for races and training have been a recurrent problem and one for which I don't see an easy solution.

The article raises more questions than answers overall I

Some observations:

1. I don't feel that the Receiver deserves as much criticism as the author outlined. The alternative would have been Burke shut down. His obligation is to protect the assets for the defrauded investors. The problem is that he has about $50 million of defrauded investors and a resort that has a purchase offer of $10-13 million. The one legitimate criticism is that the sale is taking too long and that the value of the resort is dropping. I agree.
2. On that note, the author answered the question of "why is this taking so long" without realizing it. That is there are too many cooks in the kitchen on this deal. She disclosed that BMA's easement was recently amended and enlarged. She also disclosed the Homeowners Association. Then you have the 100 defrauded investors. Then you have those 100 defrauded investors who at least want a Green Card and need Burke to create X number of jobs. On the "Storm Podcast", Jon Schaefer himself alluded to this fact that there are too many complicating factors in this deal so he pulled out. This article explained some of those other factors.
3. The understanding on the ground was that "the interested bidder" was always Don Graham and his kids. Now we learn that the bidder was another BMA family--Mark Greenberg. I've never heard of him. It was not surprising to me that Graham didn't take any calls from the author. He keeps a very low profile. Perhaps the Grahams are silent partners for Greenberg--both literally and metaphorically. I don't know of Greenberg's track record on other projects. Does anyone know him?
4. The identity of Greenberg's "partner" still remains a mystery. "Greenberg has a partner whose family owns ski resorts and has experience with turnarounds and expertise in quality snowmaking." That sounds exactly like the Schaefer Family but, if Jon was telling the truth, it ain't them anymore as he said in 2023 that they were out of the deal. As to other partners, I guess that could describe Boyne, but I don't see Boyne as having much interest considering how much is needed to invest in the resort. Reading in between the lines, it does not sound like Pacific Group either. So this remains a big "?"
5. AR is correct about the summer business and mountain biking. My late Uncle, "the original trailboss" thought that the mountain biking crowd was an odd bunch for business. He commented that it was common to see folks come for the weekend with $10,000 bikes but sleep in their cars or in tents at the campground and eat raman. It is an interesting juxtaposition. I laughed when he said that back in 2017 or so, but from what I have seen, he is right. The last few summers when we have returned to Vermont I have spent most of the time in Burke. In 2023 we stayed a week at the Burke Mountain Hotel. In town one sees out-of-towners with decent cars but expensive bikes and gear. Yes, they buy beer and food, but most were not staying at the Hotel. During our week, a fair amount of the Hotel was empty, largely due to repair work for the flooding incident that they had earlier that year. There were a couple small conventions that had some overnight guests (from in-state), a few bikers, and a few others. But it was not overrun by bikers. We got a pretty good deal on our room as well. So, yes, there is MORE summer business now than there ever has been, but it is not gangbusters nor enough to probably entice someone to invest a lot of money. Perhaps if "they build it, they will come", but folks have been saying that about Burke for 40 years.....
6. The context as to why BMA, and Willie Booker in particular, were mentioned is interesting. It appears that at some event a condo owner complained to Booker about BMA's impact on operations. In fact, BMA can often, without any real warning, close a ski trail for training. When they train on the Dipper's it closes down most of the terrain on the east side of the mountain. That is a legitimate complaint. The fact that BMA's easement is over 50 pages is a real shock. The details about the snowmaking base depths was also interesting. But without BMA there is no mountain. In the 25 years or so that the Dippers have been in existence, extensive trail closures for races and training have been a recurrent problem and one for which I don't see an easy solution.

The article raises more questions than answers overall I think.

Do not let the podcast fool you! Locally the rumor is Jon is interested and is involved in the bidding. His issue is the Hotel. The Hotel has structural issues and is never filled to capacity. He is a ski guy and would turn Burke into more of a gem than it is. He is not a real estate guy and the hotel is a major draw back.

 

[snoseek]

That hotel is so outta place. Especially when sitting in mid burke looking down.

Anyhow the place is top notch today. Its been quite some time since I've skied here and I'm sold such a good vibe.

 

[thetrailboss]

Do not let the podcast fool you! Locally the rumor is Jon is interested and is involved in the bidding. His issue is the Hotel. The Hotel has structural issues and is never filled to capacity. He is a ski guy and would turn Burke into more of a gem than it is. He is not a real estate guy and the hotel is a major draw back.

I’ve heard that the Hotel is the sticking point.

 

[deadheadskier]

I wonder what the cost and feasibility of converting the hotel to condos is if occupancy is such an issue.

 

[LuckyStrike]

I was at Burke for the first time on Saturday. Amazing facilities. Best ski area chicken caesar i've ever had ( @1/3 the ticket price). It has all the NE indy clichés going for it except for the fact that it's impossibly flat at the bottom. Ive never had to kick around as much as I had to kick around at Burke. I'm a highly proficient one legged snowboarder but it was way too much for me. Oh, and stay out of the east bowl and the associated glades if you're on a board (no matter how tempting).

 

[B-Eastski]

I’ve heard that the Hotel is the sticking point.

I wonder what the cost and feasibility of converting the hotel to condos is if occupancy is such an issue.

The problem (per the rumors) is the foundation has structural issues the hotel is also sinking slowly.

 

[thetrailboss]

The problem (per the rumors) is the foundation has structural issues the hotel is also sinking slowly.

Settlement is a common issue with new buildings. A certain amount is to be expected. I had not heard that this was an issue.

From my POV the bigger issue is that it is a $50 mill facility with not enough business and that is mandated to generate a certain number of jobs for the EB-5 investors.

 

[jimmywilson69]

Is it really necessary to create those damn jobs at this point? The whole thing was a fraud. Move on from it...

 

[thetrailboss]

Is it really necessary to create those damn jobs at this point? The whole thing was a fraud. Move on from it...

In order for the investors to get the Green Cards, yes. That is a big deal. The Receiver was trying to get an exemption.

 

[Edd]

That hotel is so outta place. Especially when sitting in mid burke looking down.

Anyhow the place is top notch today. Its been quite some time since I've skied here and I'm sold such a good vibe.

Had two midweek days there a couple of years ago while everything was open. Incredible skiing, love how the trails are cut. Burke rules.

 

[deadheadskier]

In order for the investors to get the Green Cards, yes. That is a big deal. The Receiver was trying to get an exemption.

Personally, I think the government owes these folks their green cards due to their own negligence in monitoring the program that allowed the fraud to transpire.

Getting there the way the program was designed is now never going to happen.

 

[thetrailboss]

Personally, I think the government owes these folks their green cards due to their own negligence in monitoring the program that allowed the fraud to transpire.

Getting there the way the program was designed is now never going to happen.

I completely agree. Again, my understanding was that the Receiver was pushing for the Government to grant to Green Cards.

 

[jimmywilson69]

Ok I didn't realize that the green cards weren't granted yet

My guess with the current administration that no freebie green cards are going to be granted

 

[B-Eastski]

Settlement is a common issue with new buildings. A certain amount is to be expected. I had not heard that this was an issue.

From my POV the bigger issue is that it is a $50 mill facility with not enough business and that is mandated to generate a certain number of jobs for the EB-5 investors.

Settling is sometimes common when it is a very small amount at the beginning an inch or two tops. the building has been there a while and is still settling. I happen to be involved in building bridges for a living and settling is not okay with a building that size. It can cause major issues.

 

[B-Eastski]

Ok I didn't realize that the green cards weren't granted yet

My guess with the current administration that no freebie green cards are going to be granted

Lets blame Trump

 

[thetrailboss]

Settling is sometimes common when it is a very small amount at the beginning an inch or two tops. the building has been there a while and is still settling. I happen to be involved in building bridges for a living and settling is not okay with a building that size. It can cause major issues.

So how much has it settled and where?

 

[jimmywilson69]

Lets blame Trump

Just making an observation that the former administration would've been more open to rubber stamping some green cards. I think its pretty obvious this administration won't be.