Haystack / Hermitage news

[Glenn]

Not sure if our neighbor was paid. I'm going to guess yes as all of this took place a few years back and he was working in CT for some before all this stuff went down up there.

Jeff,
We can't find a plumber in the Bratt area. No one returns calls. We had a father and son come out for an estimate...then radio silence. Our neighbor is contractor up there. He said finding plumbers is next to impossible.

 

[drjeff]

And the "patient" has a pulse!

[FONT=&quot]"Members OK deal to bring back ski resort[/FONT]

[FONT=&quot]The Hermitage Club at Haystack Mountain. [/FONT]
[FONT=&quot]KRISTOPHER RADDER - BRATTLEBORO REFORMER [/FONT]
[FONT=&quot]Posted Thursday, September 6, 2018 7:54 pm [/FONT]
[FONT=&quot]By Chris Mays, Brattleboro Reformer[/FONT]

[FONT=&quot]DEERFIELD VALLEY — Hermitage Club members voted 209-165 to pay a higher annual due and move forward with a deal that would bring a private ski resort back to life again this winter. [/FONT]

[FONT=&quot]"Overall, I am pleased with the results, as the majority voted in favor of the plan," Harper Sibley, company president, wrote Wednesday in an email to members. [/FONT]

[FONT=&quot]Out of 525 members, 151 did not vote, according to results shared in his email. And one member said financial projections indicated that more than 400 members would need to pay their dues in order for the project to work and they would collectively need to spend $4 million during the season. Dues would go from $9,500 last year to $15,000 this year. [/FONT]

[FONT=&quot]Hermitage officials have been trying to put together a "restructuring" package after its private ski resort at Haystack Mountain, a golf course, four inns and several townhouses were foreclosed on by mortgage holder Berkshire Bank in February. Hermitage properties also were closed down by the Vermont Department of Taxes the following month for failure to make tax payments. [/FONT]

[FONT=&quot]Oz Real Estate of New York City is expected to commit more than $50 million to company "restructuring," and a board of directors will be created with two board members appointed by Oz, two appointed by Hermitage founder Jim Barnes and four appointed by club members, according to the club member. Barnes would no longer own the majority of the company under the plan; Oz would own 30 percent, members would own about 41 percent, Barnes would own 27 percent, and vendors and contractors could convert debt to about 1 percent. [/FONT]

[FONT=&quot]Sibley called the members' feedback "very helpful" as his team reviews its next steps with lenders, advisers and representatives from Oz. [/FONT]

[FONT=&quot]"We will continue to work with this information over the next several days as we formulate a final plan for membership review," he wrote. "To set expectations, please understand that these meetings are comprehensive and do take time and we would project to have more information for the membership to review by Monday." [/FONT]

[FONT=&quot]Sibley said members were asked whether they support the restructuring via a non-binding straw poll, which had been done electronically over the long weekend. [/FONT]

[FONT=&quot]"Even more importantly, 85 percent or $78.7 million of the investment capital voted in favor of the conversion," wrote Sibley, referring to three groups previously created for Hermitage investments. [/FONT]

[FONT=&quot]His email says that members of the $100,000 Club who invested $100,000 at a clip for a combined $23 million said yes to the plan and another set who contributed $8.5 million collectively said no. The group who helped purchase the Barnstormer chairlift, whose members invested a combined $2.1 million, supported the plan. Investors who provided a total of $3.9 million did not. The group who bought secondary memberships in the form of a five-year loan had members who invested a combined $3.1 million in support, and members who invested a total of $2.3 million did not. [/FONT]

[FONT=&quot]The club member said support from about 80 percent of each group of investors would be needed to move forward according to financial projections provided by the company, and that did not appear to happen. The idea, the member added, is to replace large amounts of debt with equity or ownership in the company. [/FONT]

[FONT=&quot]The voting results show Barnes' debt to be about $54 million. Overall investment in debt conversion is said to be about $78.7 million with him and $28.6 million without him. [/FONT]

[FONT=&quot]Sibley did not respond to an email for comment by press time. [/FONT]

[FONT=&quot]There is a hearing scheduled for Oct. 25 in Windham Superior Court, Civil Division to discuss reports submitted by the receiver appointed by the court to preserve properties under the Berkshire Bank foreclosure. [/FONT]

[FONT=&quot]Reach staff writer Chris Mays at cmays@reformer.com, at [/FONT]@CMaysBR[FONT=&quot] on Twitter and 802-254-2311, ext. 273."[/FONT]

 

[sull1102]

While I think they'll be able to hire enough employees to get things running, management is going to almost have to sell themselves during job interviews with anyone worth two pennies to get some half decent people working there this winter. I am glad to see the place likely reopening, would be sad to drive by the place all winter completely shut down. They really need to get out there soon though and start mowing etc.

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[jaytrem]

Out of 525 members, 151 did not vote, according to results shared in his email. And one member said financial projections indicated that more than 400 members would need to pay their dues in order for the project to work and they would collectively need to spend $4 million during the season. Dues would go from $9,500 last year to $15,000 this year.

That's quite a jump from the original $5000-ish dues. Definitely going to be more exclusive if it happens. At that price I don't think it's really a wise choice for the $200K-ish earners they initially targeted. I wonder how many of the 151 are just walking away at this point.

 

[slatham]

That's quite a jump from the original $5000-ish dues. Definitely going to be more exclusive if it happens. At that price I don't think it's really a wise choice for the $200K-ish earners they initially targeted. I wonder how many of the 151 are just walking away at this point.

Depends on whether is a permanent increase to $15k or a one year deal - like an assessment- to raise money for the deal? In any event I hope it works and they can open this winter. Whether you like it or not, it's better for all of us that it be open.

 

[Smellytele]

Not sure where it is actually goes from here because "The club member said support from about 80 percent of each group of investors would be needed to move forward according to financial projections provided by the company, and that did not appear to happen".

 

[heiusa]

I spoke to a member Saturday and he said that they did not get enough members to commit to spending the money to open this season. They need 400 members and only 200 committed.

He thinks the place will be sold for pennies on the dollar and that they are looking for an angel investor to save the place.

 

[Smellytele]

I spoke to a member Saturday and he said that they did not get enough members to commit to spending the money to open this season. They need 400 members and only 200 committed.

He thinks the place will be sold for pennies on the dollar and that they are looking for an angel investor to save the place.

The other 200 didn't want to throw good money after bad...

 

[drjeff]

Depends on whether is a permanent increase to $15k or a one year deal - like an assessment- to raise money for the deal? In any event I hope it works and they can open this winter. Whether you like it or not, it's better for all of us that it be open.

The $15k annual dues number is one that I heard multiple members talk about the last couple of season's as to what a REALISTIC dues standpoint for what they were getting should be

The reality is as well that many members of the Hermitage Club are also paying annual dues, probably at or above that 15k number to a country club or yacht club (or maybe even both) as well

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[Smellytele]

The $15k annual dues number is one that I heard multiple members talk about the last couple of season's as to what a REALISTIC dues standpoint for what they were getting should be

The reality is as well that many members of the Hermitage Club are also paying annual dues, probably at or above that 15k number to a country club or yacht club (or maybe even both) as well

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Seem only half are willing to pay the 15k

 

[cdskier]

Seem only half are willing to pay the 15k

Even less than that. They have 525 members and need 400 of those to commit (76% of overall members). At this point, only 209 voted in favor...that's slightly under 40%.

This article almost seems to contradict itself. It tries to put a positive spin on a vote that doesn't get you near what you need. I'm not seeing any clear next step in the article based on that voting result.

Interesting spin for the president to say "the majority voted in favor of the plan" when in reality over 60% either were against it or didn't vote. Anyone have any insight into why so many members (~30%) didn't vote at all?

 

[drjeff]

Even less than that. They have 525 members and need 400 of those to commit (76% of overall members). At this point, only 209 voted in favor...that's slightly under 40%.

This article almost seems to contradict itself. It tries to put a positive spin on a vote that doesn't get you near what you need. I'm not seeing any clear next step in the article based on that voting result.

Interesting spin for the president to say "the majority voted in favor of the plan" when in reality over 60% either were against it or didn't vote. Anyone have any insight into why so many members (~30%) didn't vote at all?

From what a member friend of mine, who i was tailgating with at the Patriots game on Sunday said, he felt that the speed at which this all came together (as he put it, it was less than a week from when he received the e-mail explaining things and when he had to respond with his vote) combined with what I'm sure is some added skepticism and wanting to do some thorough due diligence before voting, likely effected the total vote totals.

The reality is that the hard deadline for which they need to get pre ski season mountain prep aggressively going is rapidly approaching, especially when you factor in the legal proceedings that also need to be sorted out, so speed of getting a response from the members is of the essence

 

[sull1102]

Alright I am a little confused now. The article from the Reformer on pg61 says the members voted yes and that things are moving forward. The reality is that the majority either voted no or did not vote at all, likely due to ridiculously short notice of said vote. So where do we stand on 9/11/18 with the club less than three months away from when skiing operations usually begin? It sounds like the members that they currently have are not very willing to give that $15K. Can you imagine getting that email? Even Warren would be a little hesitant to just give the money away after the crap that went on last year from beginning to end.

 

[HowieT2]

15k/year seems low. is that per person? per family? does that include property taxes?

 

[Smellytele]

15k/year seems low. is that per person? per family? does that include property taxes?

It was only 9k so an increase of 66% is a large increase not knowing if this was only a bandaid that really isn't fixing the issues. I would assume it does not include property taxes and it is per household.

 

[jaytrem]

15k/year seems low. is that per person? per family? does that include property taxes?

If that's the standard membership you get 1 season pass and I think something like 80-100 lift tickets for your family and friends (I forget the exact number). Also you get greens fees I think for your family, assuming the golf course opens. Has nothing to do with property taxes. Everyone I know in the club already had a place before they joined, so don't know all that much about the properties the Hermitage build/sold.

 

[sull1102]

Property the Hermitage built/sold came with a year of membership and a discount for future years, but there were all kinds of games being played to make deals happen etc. "Would you be interested in buying if we include multiple years or an extra family membership for a friend?" I heard of that one first hand... The $15K is for the whole family unit to join for a year with lift tickets, unlimited golfing, a locker, gym, and lap pool at the Clubhouse, and comes with a boat load of lift tickets for friends and family. For $15,000 dare I say it's not a bad deal at all. You gotta figure a family of four is paying $2,000 for season passes to Mount Snow, a little more if the kids are a little older. Country Club membership is not cheap either, a decent club your easily in the thousands. Factor in the silly levels of exclusivity for the whole place and how much value is placed on that and the whole playground for rich vibe going. Suddenly it isn't that crazy.

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[drjeff]

Property the Hermitage built/sold came with a year of membership and a discount for future years, but there were all kinds of games being played to make deals happen etc. "Would you be interested in buying if we include multiple years or an extra family membership for a friend?" I heard of that one first hand... The $15K is for the whole family unit to join for a year with lift tickets, unlimited golfing, a locker, gym, and lap pool at the Clubhouse, and comes with a boat load of lift tickets for friends and family. For $15,000 dare I say it's not a bad deal at all. You gotta figure a family of four is paying $2,000 for season passes to Mount Snow, a little more if the kids are a little older. Country Club membership is not cheap either, a decent club your easily in the thousands. Factor in the silly levels of exclusivity for the whole place and how much value is placed on that and the whole playground for rich vibe going. Suddenly it isn't that crazy.

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As I have heard many of my member friends say multiple times over the years, they felt that what they got for what their annual dues were was a bargain. And as I posted before, many of them felt that the "realistic" annual dues should of been in that 15k range.

While not a small number for many to grasp, when you take a look at the amenities offered and the value that the time with one's family in a less crowded environment as the club sells itself on, it becomes a very reasonable price point for their target demographic, even if it seems absurd to others

 

[jaytrem]

Property the Hermitage built/sold came with a year of membership and a discount for future years, but there were all kinds of games being played to make deals happen etc. "Would you be interested in buying if we include multiple years or an extra family membership for a friend?" I heard of that one first hand...

Yup. Seems like lots of people negotiated stuff, then the word got out that you could negotiate and now everybody's membership is different. One guy I know got a group together and was able to get them all a lower price on the initiation fee. Must be a bear to keep track of. Streamlining to everyone paying $15,000 for say a family of 5 and X number extra tix would probably be a good idea. Not sure how that would all work with existing contracts if it's still technically the same company. Big giant mess!!! I just hope the ski area somehow survives one way or the other.

 

[Smellytele]

As I have heard many of my member friends say multiple times over the years, they felt that what they got for what their annual dues were was a bargain. And as I posted before, many of them felt that the "realistic" annual dues should of been in that 15k range.

While not a small number for many to grasp, when you take a look at the amenities offered and the value that the time with one's family in a less crowded environment as the club sells itself on, it becomes a very reasonable price point for their target demographic, even if it seems absurd to others

Obviously though a lot don't want to pay the 15k