Was Loon Sold? Or Is It Being Expanded by a Third-Party?

[thetrailboss]

The News Article

It refers to Centex wanting to expand capacity of the ski area to over 9,000 skiers per day It also mentions that this is, the "first ski area for the company," so did they buy the resort? If so, what are the implications? :blink: Also, doesn't this sound vaguely familiar? Southern Real Estate corporation getting into the ski business?

 

[ctenidae]

SOunds to me like they've got a joint deal going- Centex builds and sells the housing, and buys Loon new lifts and trails with the proceeds, and pockets the remainder. Could be a good deal, and avoids the the ASC-style problems. This way, the ski area handles skiing, and the real estate developers handle the real estate. Makes sense, at least on the face of it.

 

[Vortex]

I'll see if I can find it. The union leader had and article also. Loon remains part of Booth creek. The land sales gave them capital to expand. The trail boards all have the expansion listed know and a firm date as opposed to saying future expansion.

 

[ctenidae]

http://www.southpeakresort.com/landing/siteplan.html

 

[Vortex]

Sorry could not find the linc.

 

[blankout]

Union Leader Article

Here's the Union Leader article:

Loon Mountain plan includes 900 new units

By PAULA TRACY
Union Leader Staff
Sunday, Jan. 29, 2006
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Lincoln – GOV. SHERMAN ADAMS created Loon Mountain in 1966 to save a broken down mill town on the edge of the forest, and over the past 40 years, that has been accomplished.

Loon Mountain is a ski destination resort for the metro Boston area, offering big mountain skiing on more than 2,000 vertical feet in the White Mountain National Forest.

In the past 25 years, efforts to expand the trail system have been met with environmental opposition, mounds of federal paperwork and then at the end when the government approved expansion five years ago, there was no money to go forward.

But now Adams’ dream for a vibrant ski area is about to be extended with a whole new mountain about to be cut with new lifts, trails and slopeside lodging by the winter of 2007-08.

On Oct. 3, 2005, the Dallas-based Centex Destination Properties purchased $6.7 million worth of land from Loon Realty Corp. to build 54 single family home sites.

The sites are located near the Gov. Adams’ lodge area and along the Pemigewasset River and will be sold for about $300,000 a lot.

The money from the sale of the lots, just the first phase of what could become 900 units of housing to the south, will fund a new high-speed lift, seven trails, a new base lodge and parking in an area that used to be known as South Mountain, but is to be known and marketed as South Peak.

“Finally,” said Rick Kelley, general manager of the ski area. “Finally.”

Loon Mountain is owned by Booth Creek Ski Holdings of California, which also owns Mount Cranmore and Waterville Valley ski resort.
Expansion history

A protracted battle to expand the ski area on to about 1,000 acres of White Mountain National Forest to the south of the existing resort began in 1984.

Environmentalist Roland Dubois and RESTORE: The North Woods took their appeal all the way to the U.S. Supreme Court and held the project up on water withdrawal issues. The ski resort received federal forest service approval to expand on to South Mountain in 2001.

Booth Creek, the California-based owner of the ski area, did not go forward with the plan, but instead waited to find a real estate partner to help capitalize the plan.

Centex Destination Properties entered as the buyer last year.
Upscale builder

Centex is a nationwide builder of upscale second and retirement homes, mostly at golf courses and on waterfront in resort destinations, mostly in the south. This would be Centex’ first ski area.

Centex communities include Hawaii, The Hollows in Austin, Texas, Bear Lake Reserve in North Carolina, Tidelands in Palm Coast, Fla., and V at Lake Las Vegas in Nevada.

Ed Brisson, vice president of operations for the Northeast for Centex, said they have closed on phase one of the property only and a master plan is in process. What current information is available is at southpeakresorts.com.

“We have been working with Loon now for a year,” he said. There are to be built 54 home sites with ski-in, ski-out at the base of the new South Peak expansion area.

“We are in master planning process for the development of over 311 acres with upwards of 900 units of housing, including condo hotel, resort condos, town homes and single-family ski-in, ski out,” he said. “We are submitting master plan for the town. . .Lincoln has sewer and all the utilities are there,” he said.
Forest Service permit

The ski terrain expansion will be done by Loon and abiding by the Forest Service and permit.

The trails would be expanded enough for the daily comfortable carrying capacity of 6,100 skiers and riders would move up to 9,100 a day.

Rick Kelley, general manager of Loon Mountain, said things are about to change with more terrain and lifts.

Skiers in the 2007-08 season will find a new base lodge for skier services at South Peak, a detachable quad to be known as the Lincoln Express lift that will connect the areas, he said.

Three of seven trails over the phase of the plan will be cut and ready with snowmaking by the 2007-08 winter. That will add 40 acres of skiing.

All of that has been permitted by forest service, state and town.
Making snow

Snowmaking will use water from an existing pump and additional connector pond for low flow times, Kelley said. The pipe project is expected to start in spring.

The new mountain will have 1,540 vertical feet of skiing, mostly intermediate and expert. Another 118 acres will be in the next 10 years.

“We are extremely pleased to have Centex on board and doing this project with us,” said Kelley. “We have one chance to do this right. We have a company in place that can do this,” he said.

The land deal was due, he believes, to “the fact we are two hours from Boston and big mountain skiing is second to none. It’s our biggest asset. . .”

Kelley said: “They totally understand the way to develop. You are selling an experience, a lifestyle, and they totally understand that.”
Enthusiasm

“It is rare you have an opportunity to pair up like this,” Brisson said. “Loon has such a great reputation and its accessibility to the market is excellent,” he said.

Brisson said he would not favor a large retail component for the master plan on the land his company now controls.

“The town of Lincoln already has a lot of retail. We are not going to be concentrating on that. We would see what would be an amenity to guests in the South Peak area with restaurants and limited number of shops,” he said.

 

[Vortex]

Thankx you. Blank out.