Jay Peak bombshell

[drjeff]

thanks Scotty!

here's the text for those who don't want to click and scroll

4. Court documents show Jay Peak leaders "actively engaged" in sale discussions​

Jay Peak ski resort's leaders are "actively engaged" in sale discussions with several potential buyers, according to recently filed court documents.

Michael Goldberg, the court-appointed receiver who runs the resort, wrote in Friday's filing that draft purchase agreements have been exchanged — though he didn't say how many.

The process of selling the ski resort ground to a halt last year due to the pandemic. Goldberg restarted the search earlier this year.

Jay Peak has been managed by Goldberg since 2016, after owner Ariel Quiros and developer Bill Stenger were accused of misappropriating more than $200 million from foreign investors.

- Liam Elder-Connors

I wouldn't hold my breath on any sale announcement yet, Pretty sure depending on how one looks at the term "actively engaged" that it could of been used to decsribe things for a couple of years now.

Plus, I am guessing that in terms of Jay Peak news, "actively engaged" in sale discussions sounds better than still involved with fraud investigations!

Get some definite closure with the fraud situation, get the border with Canada once again fully freely open to get Jay's sizable Monteal area market heading there in normal numbers again, and then what I am guessing is still a figure that a buyer would pay verses what the group overseeing things now is still looking for for those who took financial losses with the EB-5 fraud, will probably reach a resoultion and new owners will be announced

 

[thetrailboss]

I believe they are separate

They are indeed separate. Burke's Hotel still needs to create enough jobs in order to get the investors their Green Cards. Also they want to get things on firmer footing operationally and financially before trying to market it.

 

[thetrailboss]

I wouldn't hold my breath on any sale announcement yet, Pretty sure depending on how one looks at the term "actively engaged" that it could of been used to decsribe things for a couple of years now.

Plus, I am guessing that in terms of Jay Peak news, "actively engaged" in sale discussions sounds better than still involved with fraud investigations!

Completely agree on both counts. As to my read of the news, I think it is merely passing offers back and forth. Folks forget that the receiver gave an idea of what he "wanted" to get for the resort and the numbers were pretty damn high. Unfortunately, he has to set a high demand because he has a lot of people to pay back and to try to make whole. So I think that there is no deal really close, at least yet. As to players, no doubt the usual suspects are looking but they are looking for a firebrand deal. I think it is going to be sitting for a while longer. The Receiver can't get that U.S. Border reopened fast enough.

As to the news spin, absolutely an effort to distract from the sentencing hearing that is coming. As pointed out, miraculously certain public officials have yet again dodged another bullet.

And one thing I have meant to comment on is that I went to Jay this summer with my 9-year old daughter on a rainy day to hit to water park, so here is a brief report.

It was my first visit since 2003. Yes, 2003. Back then I was a Jay/Burke Passholder. No hotels, no Pumphouse, no ice arena, no golf course. Stateside Chalet was a dump. Hotel Jay was basically a chalet with guestrooms. The town? Surprisingly almost exactly as I remember it-- a gas station and a couple stores. Troy? Same. No real big development. Once you started up the hill though I noticed that a couple of former "independent" hotels are now Jay property, presumably for staff housing. So the big EB-5 development work was largely within the boundaries of the resort. I figured I would see at least a few spin-off developments, but nothing really.

The main base area is honestly pretty damn impressive. The hotels tower above, surprisingly, the same dirt parking area that I remember. I think there is a parking garage/structure but it was not as extensive as I would have expected. I wish I had videoed my daughter's reaction when we walked into the Pumphouse--she was stoked. We were there from 11am until 2pm when it closed. As it was a Sunday they had a limited open time. They had A LOT of staff supervising things. I've been to my share of waterparks and this one was the best. The staff were all friendly to me and my daughter. The price we paid was reasonable. We went into the waterpark store and I was looking for souvenirs and Jay/Pumphouse Swag. It was pretty picked over. Other items had been in stock for a while. Yet the prices, honestly, were damn cheap in my opinion. I bought a new swimsuit, not because I needed it but because I liked it, for $15.00. I was expecting twice if not three times that. It was evident that this retail outlet was being throttled back to control costs, but man, if they had my size in other items I would have bought more.

Food, also, was decent. Typical resort fast-food that appeals to kids. The prices were reasonable and perhaps even underpriced. Service was good.

The Park itself was well laid out and had plenty of tables and chairs. Business was brisk, but not busy. A lot of locals and folks staying at the resort from what I heard and saw. No french spoken as the border was shut (it was July). As I am not in the same shape as I was 20 years ago, the Big River and hot tubs were my speed but I did a couple of the water slides. I liked how they went outside the building and came back in--that was pretty cool. No way was I trying LaChute The Big River was long enough and had enough rapids to be fun and entertaining on multiple loops while my daughter played on the slides and with kids in other areas.

My daughter tried the Flowrider. She did not realize that she needed me to sign a release, but the lifeguard was awesome and helped us out. He even stopped to give her a bandaid for a tiny cut on her knee. He could have been a dick but he was extremely patient and great. Once we got the release signed he did a great job showing her how to boogie board and she had a blast. Again, he could have just not even cared, but he was doing a great job with guests and allowing them to enjoy the experience on their own terms instead of rushing them through.

Bathrooms and locker areas were simple, clean, and easy to use. The Bar upstairs was pretty cool, but I did not partake.

I went to a similar indoor waterpark recently in Rapid City, South Dakota that is over 20 years old and it was not the same size or caliber. And it cost more. I was telling my wife, "man, we need to take you to the Pumphouse!"

After we dried off, we hit to arcade. My daughter burned through $10 in like 3 minutes. She had fun and the arcade was just the right size I thought. I did not want her lingering in there though.....

We then went to the Provisions General Store and had much better luck finding Jay swag. Again, a lot of sizes were missing but I was able to find what I wanted and I paid a reasonable price for what it was. I thought that the store was well-done. Quite a large retail space with groceries, beer, prepared food, souvenirs, and outerwear. From what I saw, food prices were at a bit of a premium, as expected, but not overboard. Massive improvement over what limited options they had in 2003. Nice that it was "one stop" with decent hours.

Last stop was over to Stateside. The new lodge and hotel there were beautiful but were dead. Essentially mothballed for the summer.

The one big thing that surprised me was that there are some really nice new buildings and the entrance road was re-engineered based on what I recalled it being, but overall there were a lot of dirt roads, dirt parking lots, no real landscaping, and old pavement. I told my family that I saw some really nice buildings, but I had a hard time seeing hundreds of millions of dollars in front of me (as we now know, a lot of that was "used" for other things for the Q). Compared to resorts out west, I would have expected paved roads, landscaping, and more of a "finished" presentation of the grounds. With the exception of the new Taxi Quad and a shortened Bonnie, the lifts are the same as they were in 2003 but now 18 years older.

Like Santa's Village and Schilling, the Pumphouse WILL be "must do" on our visits back to the NEK.

 

[VTKilarney]

I was telling my wife, "man, we need to take you to the Pumphouse!"

Too much information.

The one part of your review that I take issue with is that there are plenty of tables and chairs. When the Pumphouse is operating at capacity there are definitely not enough.

 

[mbedle]

The other thing that was interesting about the sale is that an auction will be conducted to determine who will purchase the resort. At least that what this sounds like -
The intent is to conclude a transaction, subject to Court approval, and after an auction process, as soon as a buyer is identified and an asset purchase agreement finalized.

 

[thetrailboss]

The other thing that was interesting about the sale is that an auction will be conducted to determine who will purchase the resort. At least that what this sounds like -
The intent is to conclude a transaction, subject to Court approval, and after an auction process, as soon as a buyer is identified and an asset purchase agreement finalized.

Good point. That makes sense considering that this is in receivership.

 

[deadheadskier]

Please God Noooooo!!!!

 

[fbrissette]

Well, at least this will be good for my condo value. I really did not think Vail was interested. I though it made a lot more sense for Alterra, but what do I know. Moving to BC soon anyway.

 

[fbrissette]

Looks like it was simply a Friday prank.

 

[deadheadskier]

I hope so. I know Steve can be a wise guy.

 

[thetrailboss]

Please God Noooooo!!!!

I would be surprised if they come to a deal this quickly. At least Steve has good taste in music.

 

[VTKilarney]

They certainly wouldn’t announce (or leak) a deal this way. If anything, it suggests that Vail is not a candidate.

 

[BenedictGomez]

Well, at least this will be good for my condo value. I really did not think Vail was interested. I though it made a lot more sense for Alterra, but what do I know. Moving to BC soon anyway.

Alterra was & is my guess; it makes too much sense (unfortunately).

 

[Hawk]

At this pont does it really matter who buys it?. To me, It was never the same once they put in all the amenites. Now the skier traffic is so increased that even the Jay Cloud cant keep up and the place tracks up by 11. I used to go a few times a year. Not any more.

 

[Hawk]

Alterra was & is my guess; it makes too much sense (unfortunately).

I agree with you but I think their plans must have changed since the finanials were tallied for last year. Hard to expand after loosing money I would think. Just a guess though. Who knows. Oddly enough, John Hammond said that the Alterra guys were in VT recently for the first time since they bought Sugarbush. You know Covid and all. They were impressed and talk about the potential. Interesting. I wonder if they did a covert mission North while they were here?

 

[deadheadskier]

At this pont does it really matter who buys it?. To me, It was never the same once they put in all the amenites. Now the skier traffic is so increased that even the Jay Cloud cant keep up and the place tracks up by 11. I used to go a few times a year. Not any more.

Answer this question. Would you rather Alterra or Vail own Sugarbush

 

[Hawk]

No your right. Alterra is better. I just liked the old Jay with smaller crowds, more pow and less tracks before those "Business men" destroyed the place.

 

[deadheadskier]

I miss those days too

 

[jimmywilson69]

in reality how sustainable was jay that way? Did they need a water park and an Ice rink ? most definitely not. but the place needs some better more modern lodging. If it wasn't for the damn fraud, they may have already been gobbled up by one of these ski corporations.

 

[thetrailboss]

I agree with you but I think their plans must have changed since the finanials were tallied for last year. Hard to expand after loosing money I would think. Just a guess though. Who knows. Oddly enough, John Hammond said that the Alterra guys were in VT recently for the first time since they bought Sugarbush. You know Covid and all. They were impressed and talk about the potential. Interesting. I wonder if they did a covert mission North while they were here?

Exactly.

As I posted a little while ago, Alterra lost more than $100 mill due to COVID for the 2019-2020 season (and are now suing their insurer). That's a huge chunk of change. Add to it that Vail dropped the price of EPIC to entice more business this season and it appears that it worked-at least to a certain point. Vail is publicly traded while Alterra is private, so their resources are limited. I really have a hard time seeing Alterra throwing a lot of money to buy Jay--at least not for the price that the Receiver wants.