machski
Well-known member
Not a done deal and this lower opener bid could open the flood gates to Alterra or Vail bidding in amongst others.
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Jay Peak bombshell
- Thread starter VTKilarney
- Start date
Smellytele
Well-known member
My concern with the ragged owners is they have been saying they were going to add another peak for how long now?
Pacific Group Resorts Bids $58 Million for Jay Peak
The Jay Peak Receiver today filed a motion to enter a sale agreement with Pacific Group Resorts, Inc., a Park City-based operator of five North American ski areas. Importantly, the proposed sale pr…
liftblog.com
$58 mill seems awful low.
If I remember correctly Jay wanted somewhere in the neighborhood of 150 to 200 mill originally which included the real estate as well.
it's not remote at all. It's under 2 hours from Montreal. It is basically Hunter for Quebecers. Except closer.
Edd
Well-known member
Really good question. The current pass gives unlimited access at Ragged, Powderhorn, and Wisp, Wintergreen with blackout days, and 7 unrestricted days at Mt. Washington in BC. The relative closeness of Jay would need to be addressed. Jay being what it is, a more expensive pass is going to have to be created.
How much was invested in Jay with hotels, waterparks, etc? Seems like pennies on the dollar.
mbedle
Well-known member
282 million for all the Jay Peak projects
machski
Well-known member
Of course, Jay could not use EB-5 $$ for on hill improvements/expansion as it would not create enough long term jobs. Oh wait, that system worked so well for all the base lodges etc.....Not as long as Jay has talked about the West Bowl! Sounds like a good marriage.
drjeff
Well-known member
The longer it sits in receivership, the more realistic the price gets to what the real number actually is, verses what the full investor recoup dream figure was. Remember that little caveat we often glance right over in the disclosure about making an investment and there being a risk of loss of the investment money and that not all investments appreciate in value over time?
Still though seems that even if some other group outbids Pacific for Jay before an actual deal closes, that if the final price is either what the currend bid is, or not that much above it, unless there's some funky "Bobby Bonilla" type clause in it (Google Mets Bobby Bonilla Day if you don't get the reference
) thatthe new owner will be getting a good deal, and one thta likely will allow them to run a profitable entity
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mbedle
Well-known member
Does anyone have any idea how much money is currently in escrow to buyout the Jay Peak investors?
VTKilarney
Well-known member
Any investor knows that some serious money needs to be spent on the mountain itself. All of these new hotels are great, but nothing was done to the mountain itself.
No matter how you slice it, EB-5 proved to be a good way to waste millions of dollars. It's nice that Jay Peak got some improvements, but these investors are going to take a nasty haircut.
The town tax coffers are also going to take a hit. From the article: Jay Peak was valued on the town grand list at $121 million. Resort officials later appealed, arguing that its actual value was about half that amount. In a settlement, the town and resort settled at an assessed value of about $85 million.
No matter how you slice it, EB-5 proved to be a good way to waste millions of dollars. It's nice that Jay Peak got some improvements, but these investors are going to take a nasty haircut.
The town tax coffers are also going to take a hit. From the article: Jay Peak was valued on the town grand list at $121 million. Resort officials later appealed, arguing that its actual value was about half that amount. In a settlement, the town and resort settled at an assessed value of about $85 million.
ss20
Well-known member
That's my concern as well. As @Smellytele said, Ragged has had trails cut on Pinnacle for 10 years now without any further advancement. That's a pretty major red flag- not just financially but leadership as well. To sink the costs of planning, approval, and trail cutting, without evidently never having enough capital to finish the job with a lift, snowmaking, and grading.... well that's just a bad look and shows management may be one to bite off more than they can chew.
Yeah, Jay needs a ton of high-capital projects. A detachable replacement for bonnie, a ton of snowmaking improvements, and a replacement for the Flyer all need to be undertaken in the next 10 years. While still running the money sink of a tram. Hopefully they can manage, I wish them the best.
slatham
Well-known member
First off, not sure if current ownership was involved in that initial trail cutting.
But on a storm skiing pod cast, the GM made no commitment. Further, he noted the difficulty of having separate pods requiring a lift in each to run to access. During the week there is not the demand, yet it’s difficult to shut down a full pod. The new terrain in question is yet another separate pod requiring the lift to run to access. From a daily operations standpoint, not cost effective.
ss20
Well-known member
Same ownership as today cut the trails. As to it not being cost-effective.... those numbers should've been run before cutting trails, imo. It's just a weird chapter in a mountain that has done quite well in the past 10 years and is gaining something of a cult following among the local community and beyond.
mbedle
Well-known member
I believe the west bow expansion was put on hold by Vermont until the streams were remediated.Not as long as Jay has talked about the West Bowl! Sounds like a good marriage.
mbedle
Well-known member
I believe that expansion was put on hold due to the downturn in the economy and a decision to expand snowmaking was more important at the time. This was taken from a resume of a person that worked on this expansion project:
Ragged Mountain Resort Expansion, RMR Pacific, LLC. Danbury, NH (2008-Present).
Normandeau provided natural resource delineation and comprehensive evaluation of environmental effects of Ragged’s proposed expansion of its ski terrain, snowmaking capacity, residential units and golf course. Normandeau also helped Ragged negotiate a mitigation solution and provided permit applications for a major permit from the NH DES Wetlands Bureau and an Individual Permit from the U.S. Army Corps of Engineers Section 404. Both regulatory agencies agreed to issue a 10-year permit, based on detailed design for the early phases of the project and master-plan level design on later phases. On-going work includes expanded impact areas and permit amendments as the economic environment shifts, with proposed modifications to ski and golf areas, and snow-making water supply and storage issues. Project Manager.
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