Big Burke announcement

[VTKilarney]

So what does it mean when they say that the Q Burke project is "still under state suspension"?

 

[thetrailboss]

So what does it mean when they say that the Q Burke project is "still under state suspension"?

Probably they can't raise money/market.


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[burski]

my prediction, the Q burke hotel does not get fully completed by this group, hopefully they at least get thru the remainder of this year and get one side of the hotel open and the main common areas. I would be amazed if any future projects happen at Burke by this group. This will be a long ugly battle, its almost certain there is illegal activity here, whether it will ever by proven and anyone will ever be proven guilty is another story. Hopefully this group goes away, Burke has been made a bit better and someone else comes in to finish/operate the hotel and resort.

 

[River19]

my prediction, the Q burke hotel does not get fully completed by this group, hopefully they at least get thru the remainder of this year and get one side of the hotel open and the main common areas. I would be amazed if any future projects happen at Burke by this group. This will be a long ugly battle, its almost certain there is illegal activity here, whether it will ever by proven and anyone will ever be proven guilty is another story. Hopefully this group goes away, Burke has been made a bit better and someone else comes in to finish/operate the hotel and resort.

Sadly this possibility is beginning to come into my consciousness as well......when you think about how Ponzi-type schemes typically fall apart and apply that lens to this whole saga....some pieces start to fit.

Inability to quickly produce financial documents which should be readily on hand (ie. they shouldn't have to create them)

Multiple complicated inter-related entities with the same small group of people involved with all of them

Previously supportive business partners distancing themselves from the group when some things start to get a little unclear...

Total inability to even come up with a plan to return investors money let alone being able to do it

Every regulatory body near these projects throwing out the caution flag and wanting to dig in but running into barriers to doing so

Maybe some of this explains while an obviously over matched Jr. was put in charge of things.......

And maybe the whole thing is a conspiracy theory and everything is on the up and up.....but usually where there is smoke, there is fire.

And there has been smoke for a while around this thing......

 

[thetrailboss]

So I just read that article. Damn, not good at all. I love how they downplay it as "a voluntary" investigation. Doesn't sound too voluntary. And I also love how the State now realizes that they could be in trouble too and are distancing themselves.

I sincerely hope that there is nothing wrong here, but it is sad that the State wasn't properly overseeing things initially. It could have avoided a lot of trouble.

This line is particularly disturbing for Burke fans:

The Department of Financial Regulation has asked the developers to also hold money in escrow for Q Burke and suggested that the developers could get a bridge loan for the project. Stenger and Quiros have balked at the idea, insisting that it will “cripple” the project’s ability to continue construction.

“DFR has requested all projects use an escrow account but realizes that in the case of QBurke Resort Hotel the project is already underway and that escrowing funds would not work for an already under construction project,” Stenger said by email. “We are working with DFR right now cooperatively to assure the review is complete and construction funds are fully available to the project.”

It perhaps explains the slow progress.

 

[burski]

Wow, not a good day for Burke news, just heard that long time BMA headmaster is leaving BMA after this winter to take over Vail's academy

 

[from_the_NEK]

 

[VTKilarney]

I've been saying for months now that the only way out of this mess is to sell.


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[deadheadskier]

Hopefully Peaks buys it. I'd love to have Burke and Jay on my season pass.

A man can dream

 

[River19]

But condo values are up !!!!!!

 

[mbedle]

Sell what, a half finished hotel on a 20 year struggling ski resort? Plus the hotel is a separate entity from the ski area (albeit owned by the same people). It might end up like Bolton and have two different owners (the base is separate from the ski terrain). The worst possible thing they could do at this point is stop construction on the hotel. If I was a regular visitor to Burke or owned a home there, I would be praying right now that this doesn't fail.

 

[DoublePlanker]

Who would buy it and inherit all these problems? I think the problems have to get sorted out before somebody would buy it. Unless they can sell some assets clean.

 

[VTKilarney]

You are assuming that a purchaser would pay the construction cost. With my scenario they would pay pennies on the dollar. It's better for an investor to get something than nothing. Ask the folks at Jay how their exit plan is going.


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[VTKilarney]

You have to wonder what will become of their multi year snowmaking plan.


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[BenedictGomez]

Agreed, but I am not sure where Vtdigger is getting their numbers and how accurate they are.

Lets hope they're not accurate for Burke's sake.

So I just read that article. Damn, not good at all. I love how they downplay it as "a voluntary" investigation. Doesn't sound too voluntary.

It's not. The SEC doesnt knock on your door and ask, "pretty-please?" - that's not how it works.

Hopefully Peaks buys it. I'd love to have Burke and Jay on my season pass.

A man can dream

MTN could outbid SKIS if they both sought it. Jay Peak on the cheap with all the capital improvements would be a boon, but I'm not really sure anyone would want Burke. If it was forced in a package deal, they could try to sell-off Burke though.

 

[fbrissette]

just heard that long time BMA headmaster is leaving BMA after this winter to take over Vail's academy

That must have been a difficult decision to make...

 

[thetrailboss]

You have to wonder what will become of their multi year snowmaking plan.


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Unfortunately, like a lot of things at Burke, it is "multi-year" which does not mean guaranteed.

 

[thetrailboss]

It's not. The SEC doesnt knock on your door and ask, "pretty-please?" - that's not how it works.

Exactly! The $22k in "donations" to Mr. Shumlin stopped the state oversight; but the Feds are a different story. Nothing lately from the "Washington" Delegation about how awesome Stenger et al are.

 

[thetrailboss]

A perhaps well-timed Email just came from Q proclaiming:

Things have kicked into high gear and we now have anywhere from 300 construction workers (plus) onsite daily to keep our target opening date of December 11th. Some highlights from our construction company, PeakCM include:
* Framing for the South West balcony roof overhand is complete.
* Boilers in the main mechanical room have been installed.
* Sprinkler rough-in is complete in the west wing attic.
* Fireplaces and heat pumps have been installed in the West residential floors.

 

[steamboat1]

A perhaps well-timed Email just came from Q proclaiming:

I read that, likely in this thread, several days ago.