Jay Peak Article on New Base Lodge

[JPTracker]

An interesting article in the New York Times on how Jay Peak is financing their new hotel. The have put together a group of 35 foreign investors who each put up $500,000 as an investment in the Hotel in exchange for a permanent green card through a government EB-5 program. Also in return each investor owns 1/35 of each of the 57 units in the hotel, after 5 years will have the right to sell them and is entitled to a two week stay in the hotel each year. This is Jays way of upgrading their base area without spending any of their own money.

It also states that Sugarbush is also using this program.

 

[thetrailboss]

Interesting.

 

[TheBEast]

Given the turmoil in the credit markets this sounds like a very good financing option for them.

Real question in my mind if how this new expansion will change the current "vibe" at Jay Peak?

At least they've got a management team that's committed to the place and isn't necessarily driven by some larger parent company.

 

[riverc0il]

At least they've got a management team that's committed to the place and isn't necessarily driven by some larger parent company.

MSSI is the parent company of Jay. Though President Stenger has been firmly committed to expanding the bed base to ensure the long term viability of the resort for a while so I wouldn't be surprised if this is resort driven.

Interesting way of financing the whole thing and certainly puts to rest rumors that Jay Peak is being sold but rather is just giving part ownership of the hotel to foreign investors. Buying citizenship for $500k investment in our economy, talk about an interesting way of adding free money to the economy. And then add 35 high income people to our income tax systems and they will be purchasing goods and services in this country as well at top dollar given $500k is not an issue to them. Hard to see a negative aspect to this deal and sounds like one we will see a lot more of in the future given the way the dollar is trading.

 

[hiroto]

... put up $500,000 as an investment in the Hotel in exchange for a permanent green card through a government EB-5 program.

With that kind of money, I would also insist on permanent season pass.

 

[coreybyrnes]

very interesting... anyone have issue with the fact that these super rich foreigners are essentially beating the system by shelling out a lot of money for a green card?

goodbye jay peak...

 

[deadheadskier]

... anyone have issue with the fact that these super rich foreigners are essentially beating the system by shelling out a lot of money for a green card?

It's pretty common practice in places outside of the US. About four years ago, I was kicking around the idea of heading to Australia or New Zealand to work for a year. If you were over the age of 29, unless you were in a profession of which they had a high need for...doctor, nurse...etc......they required a pretty substantial deposit, I believe it was 100K, to be made and held in escrow at a National Bank to get a year Visa. Apparently, both countries have rather generous welfare systems and a lot of dead beats try and get into their countries and just slack off and live off of the system.

Also of note, both countries would give Visa's to people who invested a certain amount in property there, like 300K. They essentially welcome wealthy retirees to live there. This is not the case in the US. My parents had good friends from England who bought a retirement property in Florida at an exclusive gated community, so big bucks. They got a two year Visa, but were not allowed to renew even though they had a son in Junior High School. They are now only allowed to spend 6 months out of the year there and must return home.

 

[ccskier]

very interesting... anyone have issue with the fact that these super rich foreigners are essentially beating the system by shelling out a lot of money for a green card?

goodbye jay peak...

Sorry, have to comment on this one. I will try to not get "political". If you are here in this country to make a difference then so be it. Citizenship as with most things can be bought. At least they are doing it the right way and are willing to pay the price to do so instead of sucking up all of our tax dollars. Jay Peak is my home mountain and I welcome their money. 35 investors is not going to damage the "vibe" of Jay, it is not Stowe and can never be Stowe. Jay is too far off of the beaten path to get too swanky. Having a vibe and running a business may not always go together, but it has to be done.

 

[JPTracker]

MSSI is the parent company of Jay. Though President Stenger has been firmly committed to expanding the bed base to ensure the long term viability of the resort for a while so I wouldn't be surprised if this is resort driven.

Interesting way of financing the whole thing and certainly puts to rest rumors that Jay Peak is being sold but rather is just giving part ownership of the hotel to foreign investors. Buying citizenship for $500k investment in our economy, talk about an interesting way of adding free money to the economy. And then add 35 high income people to our income tax systems and they will be purchasing goods and services in this country as well at top dollar given $500k is not an issue to them. Hard to see a negative aspect to this deal and sounds like one we will see a lot more of in the future given the way the dollar is trading.

I do not think this is driven by MSSI at all. This is purely driven by Bill. It is because MSSI will not invest in Jay that Bill has gone to these lengths to get changes made at Jay. I believe that the golf course was also financed this way.

As far as Jay being sold I do not see how this changes any thing. In fact it shows that MSSI is not interested in Jay, since they haven't invested in any of these improvements. I think that Bill is committed to improving Jay any way he can and that the sale of Jay Peak is totally independent of this.

Sorry, have to comment on this one. I will try to not get "political". If you are here in this country to make a difference then so be it. Citizenship as with most things can be bought. At least they are doing it the right way and are willing to pay the price to do so instead of sucking up all of our tax dollars. Jay Peak is my home mountain and I welcome their money. 35 investors is not going to damage the "vibe" of Jay, it is not Stowe and can never be Stowe. Jay is too far off of the beaten path to get too swanky. Having a vibe and running a business may not always go together, but it has to be done.

Did you miss the part the the second hotel and water park will be financed by 150 EB-5 investors.

 

[ccskier]

I know, but I don' see that happening for a while.

 

[riverc0il]

Regarding the side stepping of the system because of money, I had considered this initially. After all, lots of people want to be United States citizens (a testament to our fine country) but many can not get in. These guys get to jump the line because they have money? Absolutely. They are going to be contributing strongly to economic development. Hotel One at Jay will provide lots of employment and contract work building the hotel in addition to tons of seasonal employment and much needed good paying year round work as well as Jay continues to develop into a four season resort. Perhaps these guys are jumping the line and side stepping the system due to wealth, but they are contributing strongly to economic development which I think justifies the side step in the citizenship process. Win-Win for everyone involved and I do not really see any down sides.

Jay is going to change, I am convinced of that. What I foresee is a sharp contrast between a swanky new Hotel One versus run down Stateside (and the Hotel for that matter). Swank Hotel One will have a spa (maybe masseuses, weight rooms, hot tubs?)... but men's urinals Stateside were not working recently (LOL inside joke!!--since fixed). The contrast is going to be interesting. Same thing is happening at Stowe with the Mansfield Lodge... a classic and rustic versus the monstrosity going in over at Spruce (Jay seems similar on scale *blech*). Same thing at Burke between the mi-Burke and the Sherburne featuring the Tamarack Grill. Bush North versus Bush South, etc. Lots of examples of the contrast between posh upscale new buildings and run down classic old school buildings.

Any one seen the Jay Peak ad featuring the woman in the hot tub? That hot tub is coming soon to Hotel One at Jay Peak. "If you're not here for the mountain, you're not here"? That may only apply to folks not staying at the Hotel One.

 

[snoseek]

^^^^^^^^^^^ They have women at Jay Peak? That must be new.

 

[deadheadskier]

^^^^^^^^^^^ They have women at Jay Peak? That must be new.

AND improved

 

[ccskier]

^^^^^^^^^^^ They have women at Jay Peak? That must be new.

Yeah, but they all have beard to keep warm.

 

[JPTracker]

The problem with Stateside is that is on leased property. Jay does not own it. They own all the land over at Tram side and the West Bowl. There is nothing major in there plans, except for lift upgrades, happening over at Stateside.

 

[riverc0il]

^^^^^^^^^^^ They have women at Jay Peak? That must be new.

No no no... the woman was in the ad. And it was an old woman... like 70s-ish.

 

[snoseek]

No no no... the woman was in the ad. And it was an old woman... like 70s-ish.

Silver fox? good times!

 

[ccskier]

Silver fox? good times!

Silver fox's are mad steezy yo!