Cannon Mountain...thoughts

[thetrailboss]

FWIW from the Concord Monitor:

Editorial Comment: http://www.concordmonitor.com/article/258674/leave-cannon-in-states-capable-hands?CSAuthResp=%3Asession%3ACSUserId%7CCSGroupId%3Aapproved%3ABA4A9537C4BF4594E11F4B09D8217743&CSUserId=94&CSGroupId=1

General Manager's view: http://www.concordmonitor.com/artic...F4594E11F4B09D8217743&CSUserId=94&CSGroupId=1

 

[Puck it]

FWIW from the Concord Monitor:

Editorial Comment: http://www.concordmonitor.com/artic...F4594E11F4B09D8217743&CSUserId=94&CSGroupId=1

General Manager's view: http://www.concordmonitor.com/artic...F4594E11F4B09D8217743&CSUserId=94&CSGroupId=1

Not going to happen at all. The whole park would have to be lease due to the intertwining.

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Threecy on!!!!!!

 

[threecy]

The lease of Cannon Mountain starting in 2012-2013 has been included in the State Senate budget proposal today. Sen. D'Allesandro proposed an amendment to HB2 which would remove the lease from the proposed budget. The amendment was defeated.

 

[thetrailboss]

DeVivo on the importance of Cannon to the system:

We operate Cannon Mountain and Franconia Notch State Park as a singular operating unit, with shared assets, resources, personnel, costs, maintenance and infrastructure. They operate unlike any other New Hampshire state park and generate nearly 60 percent of the annual revenue of the entire park system.

As to separating from FNSP:

Cannon is the epicenter of New Hampshire's flagship state park. To separate the ski area from the park itself would have serious negative long-term operational, logistical and financial effects on both the park and the state parks division.

The park's headquarters, IT infrastructure, management team and primary maintenance facilities are located at Cannon.

Hidden costs:

Additionally, the costs associated with freezing our rates, zeroing our budget and entering a lease may quickly add up to nearly $2 million during fiscal years 2012 and 2013.

Philanthrophy:

We're also concerned over the millions in potential losses in discounts and philanthropy that may affect New Hampshire residents and organizations over several decades during a leasing agreement.

 

[threecy]

The New Hampshire State Senate has just passed HB2. Included is the lease of Cannon Mountain.

 

[Cannonball]

I'd like to see Threecy and Sen. Morse go toe-to-toe.

Morse says NH has to lease Cannon because it can't afford to compete with private ski areas.

Threecy says NH has to lease Cannon because it unfairly outcompetes private ski areas.

 

[threecy]

Summary of Cannon discussion in the State Senate today (per the online audio feed):

- Funds not available to adequately invest in the area moving forward.
- Environmental damage involving Mittersill noted.
- $50K of lease revenues to be allocated to NH Search & Rescue, reducing burden on hunters and anglers.
- Ski school being paid ~$30K in benefits.
- Questions about financial documents raised, including winter expenses recognized in summer in recent years, inflating winter financial results.
- No depreciation appears to be recognized, potentially inflating ski area results by $250K-$500K.
- Potential increase in leased Cannon skier visits (Sunapee used as comparison) would boost rooms and meals tax revenue.
- Amendment to remove Cannon lease from HB2 was defeated by a large margin. HB2 passed by large margin.

 

[thetrailboss]

The New Hampshire State Senate has just passed HB2. Included is the lease of Cannon Mountain.

Not to get into politics, but Lynch will veto it.

 

[threecy]

Not to get into politics, but Lynch will veto it.

Governor Lynch does not have a line item veto.

The House will have to approve HB2 as amended by the Senate. If passed, it will go to the Governor. If the Cannon lease remains in the budget, the Governor would have to veto the entire budget. Republicans have a veto-proof majority.

 

[thetrailboss]

Governor Lynch does not have a line item veto.

The House will have to approve HB2 as amended by the Senate. If passed, it will go to the Governor. If the Cannon lease remains in the budget, the Governor would have to veto the entire budget. Republicans have a veto-proof majority.

I'm sure that the conference committee will iron it out and that Lynch will put pressure on to make sure it does not make it to him.

 

[threecy]

I'm sure that the conference committee will iron it out and that Lynch will put pressure on to make sure it does not make it to him.

17 of the 24 State Senators voted to keep the lease in the bill today.

 

[deadheadskier]

So, have you bought your bottle of champagne to celebrate with threecy?

 

[Puck it]

Wow

 

[thetrailboss]

FWIW Pages 99-100 of this document spell out the proposed process to have it leased by July 1, 2012.

 

[riverc0il]

Whatev, they are only halfway there. There actually has to be a company out there that thinks they can achieve a good enough Return on Investment (let alone actually profitability) given how tight the state will likely wind up that lease. Can Cannon be leased profitably if they assign all the costs and improvement to the leasor AND require the leasor to keep Cannon a so called value and continue to offer resident and mid-week discounts? Who is going to take this one?

 

[thetrailboss]

And if I am reading the Governor's original proposal correctly, if I am to assume that the zeroed out items for Cannon mean a cut in funding, then it would appear that he had proposed leasing it out as a way to cut expenses....unless I am reading it wrong and it is zeroed out to indicate break even (and no funds needed). (search the document by "Cannon")

 

[AdironRider]

Bummer.

Im with Riv though, hopefully the lease never goes through thanks in part to threads like this showing what a "bad deal" a Cannon lease is.

 

[jack97]

Bummer.

Im with Riv though, hopefully the lease never goes through thanks in part to threads like this showing what a "bad deal" a Cannon lease is.

I think the proponents against privatization needs the tree huggers to mobilized. Make it such that a lease will restrict real estate development. Then it does become a bad deal for a private company.

 

[Cannonball]

Sorry Old Man.

This still seems like a LONG way from being a reality. But just in case, I've been going over the upsides as outlined by Threecy:

- All the same deals. discounts, and offers will be in effect because they'll be written into the lease agreement.
- The State will keep all of the 'good parts' (tram, flume, summer ops, etc) and only lease out the 'bad parts' (ski ops, management, ski school).
- The leasee will pay huge sums to the State during good years AND bad years.
- The huge sums from Sunapee lease will go into something other than an historic ski area
- That overpriced Mittersill lift that the state paid too much for will be someone else's problem (although the state already bought it)
- Small ski areas all over the state will come to life as the oppressive thumb of a state-run area is lifted

 

[riverc0il]

Real estate is already impossible since it is all government owned land. The only possible real estate development could happen would be a buy out of Mittersill (which seems unlikely per sikskier's comments earlier in this thread) or further development down the road from Mitt towards Franconia, but that can absolutely never be anything close to slopeside because Mittersill's boundaries are constrained per the agreement to allow Cannon to reopen it within its original footprint only. I'm not worried about the land. Unless Cannon allows, as part of the lease, development at the base area but I can't believe that. I bet even Cannon lease supporters also appreciate Cannon as unspoiled by modern resort real estate. Or at least most...

Threecy already commented at length that provisions could be included in the deal to ensure Cannon continues on in certain respects.... be it resident pricing, mid-week deals, lack of grooming at Mittersill, no trail widening, etc. But for all of those rules added to any lease.... it would make it less appealing to lease. At a certain point, Cannon "works" the way it does because it is run by the park system.

We'll see what happens. A little nervous but unless I get kicked off the mountain for skinning or hiking Mitt when it is closed or whatnot, as I proposed earlier, perhaps not much will change for the worse?