Big Burke announcement

[KustyTheKlown]

If powdr or boyne bought jay and Burke and max passes them, I am a happy man

 

[fbrissette]

There will not be a quick resolution, this will probably drag out for a few years.

I fully expect Leisure Hotels and Resorts to manage Jay Peak and Burke for a few years till they figure out who owns what exactly.

 

[VTKilarney]

I am reading through the state complaint now. There is an interesting line. It refers to some statements that Stenger has made "under oath." I wonder when he provided sworn testimony?????

 

[VTKilarney]

I'm willing to bet the amount a condo can fetch has dropped at least 30% based on this news alone.

 

[fbrissette]

The best chance is for a buyer to stop forward.

How the hell do you sell a resort when you don't even know exactly who owns it now that we've learned that it was fraudulently bought with EB5 money ?

 

[thetrailboss]

From the Complaint regarding AnCBio:

The first six projects for which the Defendants xaised money were all part of a ski
resort and accompanying facilities located clear Jay, Vcrmant. The most recent project, for
which the Defendants continue to raise money from unwitting investors, purports to be for a
nearby $110 million biomedical research center that the Defendants have operated as neaxly a
complete fraud. The offering documents the Defendants axe providing to investors in that project
are rife with material misstatements and omissions. These include bogus claims that the
Defendants are in the process of obtaining Food and Drug Administration approval for the
research center's products. In reality, the Defendants have not undertaken the necessary steps to
begin the lengthy and cuinbersoine process of getting rDA approval. Further exacerbating their
misstatements, the Defendants have baselessly projected hundreds of millions of dollars in
revenue from the xesearch.ceiiter — projections based on FDA approval they have done virtually
nothing to obtain.

http://www.sec.gov/litigation/complaints/2016/comp-pr2016-69.pdf

 

[VTKilarney]

I am reading through the state complaint now. There is an interesting line. It refers to some statements that Stenger has made "under oath." I wonder when he provided sworn testimony?????

I just answered my own question. The testimony was given to the SEC.

 

[SLoMo]

How the hell do you sell a resort when you don't even know exactly who owns it now that we've learned that it was fraudulently bought with EB5 money ?

I was just thinking about this. So, if Q bought it fraudulently with money that wasn't his to use, then wouldn't his purchase be null and void? Does the property then belong to the state? Just wondering, but if so might not be a bad thing at some point for the NEK'ers looking to co-op the resort.

 

[from_the_NEK]

The terrain at SB is vastly superior to Burke..l.

It is?

 

[BenedictGomez]

Cant wait for the Jay Peak / Burke episode to come out in a few years.

 

[from_the_NEK]

I was just thinking about this. So, if Q bought it fraudulently with money that wasn't his to use, then wouldn't his purchase be null and void? Does the property then belong to the state? Just wondering, but if so might not be a bad thing at some point for the NEK'ers looking to co-op the resort.

I think it belongs to the EB5 investors, somehow.

The answer is somewhere in the bowl of spaghetti.

 

[SLoMo]

I think it belongs to the EB5 investors, somehow.

The answer is somewhere in the bowl of spaghetti.

I thought that at first, however the purchasing contracts they sign are for a specific entity and project, that if unfinished, they lose rights to, no? So would the state be at that bottom of the bowl then?

 

[Sick Bird Rider]

Well, at least they will have an excuse to delay the West Bowl project for another 20 years.

I too am wondering if I should still buy a season pass for Jay next year? Deadline is May 9 for the early bird pricing. I can pay in Canadian money, which makes it a pretty good deal right now. Hmmm.

Good reporting AZers, this thread has been a great resource for keeping up with this crazy story.

 

[tnt1234]

I'm willing to bet the amount a condo can fetch has dropped at least 30% based on this news alone.

Was just talking to a friend about this....

 

[tnt1234]

Well, at least they will have an excuse to delay the West Bowl project for another 20 years.

I too am wondering if I should still buy a season pass for Jay next year? Deadline is May 9 for the early bird pricing. I can pay in Canadian money, which makes it a pretty good deal right now. Hmmm.

Good reporting AZers, this thread has been a great resource for keeping up with this crazy story.

I think Jay will some how be open....burke I would worry about. Obviously, I really don't know anything about how these things work, but Jay just seems like a much better asset, so a more likely grab should the govt. put it up for sale at the end of this.

 

[VTKilarney]

I too am wondering if I should still buy a season pass for Jay next year? Deadline is May 9 for the early bird pricing. I can pay in Canadian money, which makes it a pretty good deal right now. Hmmm.

Purchase if you can stomach risk.

 

[from_the_NEK]

Sounds like Steve Wright is running the show at Jay. He knows what he is doing. Buying a pass there is probably pretty safe.

 

[VTKilarney]

Paragraph 142 of the State's complaint:
"GSI then sold seven acres of land to the AnC Bio Limited Partnership for $6 million. An independent appraisal obtained by the SEC estimated the value of the seven acres of land sold to be $620,000."

 

[mbedle]

As far as Q Burke, the difficult part is the resort was purchased with EB-5 investor money. However, those investors either are part of an LP on the stateside projects or part of the original investors who's LP was dissolved by Steiger. Some or all of them may not want anything to do with the Q Burke Resort. I personally would not want to take my money out of a Jay Peak entity and put it into a failing ski area. The hotel is a completely different company and those investors are being someone protected by the state oversight. Of course their return on investment is dependent on the hotel opening and the ski resort running. I wonder if this is going to turn out like Ascutney with a closed ski area and a hotel operated independently.

 

[Mojo K]

A little off topic, but weather this weekend looks perfect...there's a bike race this weekend...Kingdom Trails will open soon...and we'll have the patio open at the Foggy Goggle Saturday ( I think Mike is a couple weeks out ?) All of us doing business here in East Burke thank you all for all the support we've had while the mountain has suffered. Hope to see you soon.