Mt Sunapee deal dead

[ski_resort_observer]

It appears the deal to expand MS is dead, at least for the time being.

http://www.concordmonitor.com/apps/pbcs.dll/article?AID=/20050525/REPOSITORY/505250338/1031

 

[thetrailboss]

Moving this to skiing...

 

[riverc0il]

General Manager Jay Gamble said Monday that it no longer makes sense to put money into the resort now that plans to develop slope-side condominiums and a third base-to-summit chairlift have been thwarted. He said the state's denial is "disparaging to us, and it minimizes everything we try to do here and dampens our enthusiasm for new investment."

this statement more than anything proves that the opposition to the expansion was in the correct spirit as the development proposal itself was certainly not in the correct spirit. especially interesting is the statement that "enthusiasm for new investment" has been "dampens" which to me suggests that the ownership doesn't want to put money into sunapee if real estate is not an option. which begs the question was this the unspoken MO from the beginning. that statement does much to support some of my suspicions, the whole proposal was slimey to me and i am not one to normally oppose ski area development. generally, i think too many restrictions are in place and the tree huggers go too far (said despite considering myself very concerned about the environment).

"The deal of a century seems to come along every other week,"Gamble said. He would not specify what those offers were but said they make investing in Mount Sunapee seem less appealing.

 

[Angus]

The product up at Sunapee has vastly improved since the mountain was leased out by the state. From the press article, it appears that the payments to the state are partially based upon the # of skier visits or most likely $$ receipts. It would be interesting to understand whether or how the company is incentivized in the contract to improve facilities (make capital investments in lifts/snowmaking, et cetera). I'm sure the lease is available via some sort of state "open record" statute.

With that said, previously I've speculated that the real estate side of the ski business is what separates marginally viable areas from those that provide a healthy return.

With that said, it's open to speculation that the current sunapee lease terms without the prospect of additional development will not have the upside that the muellers are seeking and they may try to disengage themselves from the lease and/or just maintain the current level of service (which would be fine with me!) I think the purchase of crested butte is a real turn-around situation that is probably occupying most of their time.

In addition, it is my impression from another article that sunapee in recent years with the new management team has been a bit of a cash cow for the state which has allowed them to make capital improvements throughout the state park system.

 

[riverc0il]

In addition, it is my impression from another article that sunapee in recent years with the new management team has been a bit of a cash cow for the state which has allowed them to make capital improvements throughout the state park system.

yup, especially at cannon which i consider my home mountain. so in the long run, this development could better help the state park system and cannon, which is interesting to consider given my own opinion of the situation...

 

[Charlie Schuessler]

It is my understanding that the Okemo Operators could & would run a profitable ski mountain at Sunapee…from all appearances it is exactly what they have done…THEY informed the State, it's citizens and the local communities to that all has been going well...

It’s been no secret that for the last four years the mountain operators have been buying land around the State Park (causing most people to speculate that they were going to make a real estate killing) and for the last nine months or so they have been lobbying government bureaucrats and elected politicians to permit them more privilege than they negotiated…

And because they made an enormous entrepreneurial (gamble) investment in off-site real estate, and finally figured out they are not getting another sweetheart deal from the State, they are pouting and making unclear threats/promises…they are only hurting themselves including their political backers and financiers…

I've never been a Friend-of-Craig (former Governor Benson) but when he lost the election he tabled the topic for Governor Lynch to be the heavy...and for that I'm grateful...