It's Official: Burke Has Been Sold to GINN

[bigbog]

.....

Instead of the expansionistic horizontal designs of ALL Condos and Projects, elliminating the "Wild" in wilderness....it would be kind of nice to see some vertically-challenged housing designs. Yes, design some upper-ended stuff for the more wealthy, but I think the Japanese have the right ideas... 8), at least for the masses.. Ponderoza-style housing

 

[thetrailboss]

Here is the official press release from the mountain about the sale:

Press Box Articles
EAST BURKE, VT. – (November 29, 2005) – The Ginn Company announced today that it has acquired the assets of the Burke Mountain Ski Area from Burke 2000, llc, an entity established by the Burke Ski Academy to oversee the ski operations at the mountain. The purchase includes the ski area operation and 750 acres on which the resort is situated.
Renovations to the ski area have been ongoing through Burke 2000 in preparation for the opening of ski season. The Ginn Company anticipates all renovations will be completed in time for a Dec. 10 opening.
While the purchase does not include Burke Mountain Academy or any of its land or infrastructure, it does secure the future of the venerable institution. The Ginn Company will establish an endowment for the academy and ensure that training slopes are well maintained. Easements associated with the purchase ensure the Academy will be able to continue to train and race at the ski area.
Focus on the regional community will not change as a result of the transaction. In addition to the Academy continuing to use its slopes, local high schools, Lyndon Institute and St. Johnsbury Academy, will continue to train and race at Burke. Burke’s renowned school program, with over 50 participating schools from Vermont and New Hampshire, will continue to be a cornerstone of the ski area’s commitment to the area in which it operates.
“We are thrilled with the acquisition of Burke Mountain,” said Bobby Ginn, president and CEO of The Ginn Company. “We share the community’s pride in this pristine area and appreciate the nearly 50 years that Burke Mountain has served skiers from around the world.”
Burke Mountain celebrates its 50th Anniversary this season. In its first season, 1955/56, the “skiing governor”, Joe Johnson (Republican) dedicated Burke’s new, then state-of-the-art Poma lift, declaring Burke, “… Vermont’s newest ski area.” On December 17th, 2005, current governor, James Douglas (Republican), will visit Burke to dedicate its new Sherburne Express high-speed quad chairlift.

December 3rd 2005

Also, snowmaking is underway on Lower Warrens, Bear Den (which one is unclear) and High Meadows.

 

[thetrailboss]

The Caledonian Record spoke with Bobby Ginn who detailed his plans for a "Quality Resort." :blink:

They also had THIS editorial about the plans.

 

[thetrailboss]

And Ginn is making good on his promise of more advertising...Burke was just mentioned on VPR...

 

[riverc0il]

i can't believe they only sold the resort for 3 mill. seriously!?!?! ginn is going to make hundreds of millions of dollars off their investment in only a few years. this is a no brainer for ginn as long as people poney up for the real estate. the market may be stalling, but i have no doubts that millionaires will come out of the wood work to pony up for a semi-private resort golf course type thing.

nice pic of the moose antler chandeller on the front cover today! it's in the link trailboos attached.

i have also heard burke underwriting on VPR even before the official sale was finalized. an obvious marketing tactic i am surprised burke did not capitolize on before. NPR has always had a very well educated and well off listening audience, perfect target market for a four season resort.

they can have the real estate, they can build their golf course, they can ritz and glitz the lower base lodge, and do all that resorty stuff. as long as the character of the ski area is largely unchanged, fine by me. and ticket prices kept reasonable, i want that too. they can make their millions for all i care, just keep the skiing real.

i saw the new brochure and trail map yesterday. two thumbs up! look out world, hear comes burke. ready or not! :lol:

 

[thetrailboss]

Ginn says that the failure of previous owners was 'lack of planning' and I'd have to disagree. They all had plans, but no money and not deep enough pockets to sustain the operation for the long haul. Some of these plans were too farfetched (Bear Kingdom's Bavarian Castle Idea) and some were reasonable and just not financed (Kitchell and Company's idea of original buildout in the 1980's and Northern Star's efforts in East Bowl and overall).

So the 'Kingdom in me makes me skeptical...'cause the last owners were well financed but they did not want to keep losing money. :-?

This case is distinguished in a number of ways:

• 
  (1) Ginn has the money UP FRONT and is making that clear.
  
  (2) Ginn (presumably) has made more changes BEFORE taking complete ownership of the mountain. From what I saw there had been more improvements made this past summer than in the last 20 or so combined. That should bring results. It is the first NEW lift in nearly 20 years as well.
  
  (3) Ginn recognizes that 'there is no real substantial Burke market' and that this will be something they will have to build. Seems kinda no-nonsense about this and they seem to have their sleaves rolled up.
  
  (4) Unlike other operations, these folks are destination resort experts. That is what Burke needs. Northern Star was a conglomerate of interests and Andy Holmes had SOME experience in recreational marketing. Bear Kingdom was in it for money laundering. Dwinell (if I got that right) was in it for real estate only.
  
  (5) The price paid to BMA ($3 million) PLUS an endowment is the highest paid for the mountain in its history. Northern Star paid $1 mill or so in 1995. BMA bought the 'core ski area' for about $500,000 if not less...I can't seem to remember the exact price.
  

So throw it all together and I hope we have a winner.

 

[riverc0il]

great observations trailboss! lack of a good business plan is definitely not the reason for previous failures for sure. granted, it wasn't the grand resort style vision of GINN, but still the previous plans were not terrible. lack of capitol on hand and lack of creating a market certainly sunk burke. there is no reason a ski area with 2000' feet within three hours of boston should have any trouble creating a market. getting people to drive past closer options is a challenge, but it certainly isn't stopping people in the boston metro area from driving to places further away from burke such as jay peak, smuggs, stowe, sugarbush, okemo, mad river glen, etc. and MANY MANY places equally close or just about about as close such as kmart, bromley, stratton, etc. imo, the market is wide open for the taking, it simply is a lack of knowledge and market pressence. so many people didn't even know of burke's existance until some of us die hards went on a virtual internet crusade to spread awareness of one of new england's finest areas.

 

[thetrailboss]

Spreading the word...may we someday regret it? :roll:

Then again, the lifts would not be spinning if it weren't for grassroots efforts.

 

[ctenidae]

I'd say that a plan that was undercapitalized and didn't have a succesful marketing component qualifies as a bad plan. The old owners may have had all kinds of plans, but the fact is, they failed, and ar therefore, by definition, bad plans.

Not to say that GINN will do better, butit is a different plan. Agreed, too, that there's no good reason a 2000 foot mountain within 3 hours of Bostons shouldn't do just fine.

 

[riverc0il]

Spreading the word...may we someday regret it?

often times it is with a biting irony that we are forced to spread the word about areas we truly love because of their low prices and lack of trails only to bring more people which may eventually lead to higher prices and crowding. despite the implications of letting the word out about hidden gems, i have no hesitation or question about doing so and have been spreading the good word about places like burke, magic, black mountain, ragged mountain, saddleback, etc. since i have first skied there. partially influenced by my desire to see these ski areas thrive. also partially influenced by my honest and sincere belief that people are skiing at the big resorts not because those areas offer the best product, price, service, or fulfill skiers needs well, but rather because those areas have the best marketing budgets. having turned folks onto the lesser known areas and having had them thank me for putting the information out there was more than rewarding enough. i always ask myself, wouldn't i want others to clue me into an excellent experience i would truly enjoy? it is why i am outspoken about my great experiences earning turns. i could try to keep it a secret. obviously the more people joining the earn your turns movement means the harder it will be to find untracked snow. but there is something in that spirit that over rides my personal need for fresh snow. same with the spirit of mountains like burke over riding my need to enjoy an uncrowded mountain. as always, the caveat is bring the people to burke but do so without destroying the original character of the mountain that they could share in enjoying.

 

[Masskier]

Great article in the Burlington Free Press yeaterday.

http://www.burlingtonfreepress.com/...AID=/20051211/BUSINESS/512110301/1003/ARCHIVE

 

[Masskier]

Another article on Ginn

http://www.burlingtonfreepress.com/...AID=/20051211/BUSINESS/512110312/1003/ARCHIVE

 

[thetrailboss]

You forgot to add the grand-daddy of the series though:

http://www.burlingtonfreepress.com/...?AID=/20051211/BUSINESS/512110301/1003&theme=

$4-5 million invested on top of the $3 million purchase.

$5-7 million next year.

 

[Tin Woodsman]

My guess is that a quad in the East Bowl is pretty much inevitable at this point. The only question is whether they come in and mow down someof the best stashes to make way for broad boulevards that condo buyers would want in that fabulous terrain pod. IIRC, Ginn was very interested in the flat bench land below where the current traverse our of East Bowl is. If they plan to put housing there, then improvements aplenty will surely come along.

 

[riverc0il]

i agree, east bowl does seem inevitable, unfortunately.

 

[thetrailboss]

Here are some new pics of the work that has been done:

http://www.skiburke.com/gallery.html?stat=Image+Gallery&substat=Photos+of+the+Week&sstat=&ref=10

I like the pic of the Sherburne Express as well:

And the new snow guns on Carter Country:

 

[nek_crumudgeon]

Went to Tamarack at the rennovated base lodge last night at Burke. Way different than before in terms of decor, but the exact same layout. The food was very good, but the service was the really impressive part. Seems like Ginn is intent on impressing the 'ol locals like myself as well as newcomers.

Interestingly, most of the waitstaff are from local restaurants. Poaching? Who knows.

 

[thetrailboss]

Went to Tamarack at the rennovated base lodge last night at Burke. Way different than before in terms of decor, but the exact same layout. The food was very good, but the service was the really impressive part. Seems like Ginn is intent on impressing the 'ol locals like myself as well as newcomers.

Interestingly, most of the waitstaff are from local restaurants. Poaching? Who knows.

Welcome to the boards! Great to have another NEKer here...we might know each other...PM is in order.

 

[thetrailboss]

HERE is the new Burke Trail Map for those that have not seen it yet. Comments? I was originally opposed because it looked too 'busy,' but it does a nice job showing where the routes are, has great detail, and once again, like the old Burke Maps from the late 80's and the 90's it shows where the snowmaking is and where it is not. Here's to more great natural snow to open up the East S'yide for next week :beer: