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March 2014

Blue Pages :: March 2014

MOUNT SNOW USE OF EB-5 VISA NO SNOW JOB... OKEMO REAPS REWARDS OF EFFICIENCY... SNOWBOARDERS V. ALTA: FIGHTING WORDS... COMMUNITY HILLS GET THE LOVE... OLD OWNERS NEVER DIE, OR EVEN FADE AWAY... UPSCALE CLOTHING RENTALS ROCK!... WEATHER AND LAWSUITS AND STRIKES, OH MY!

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MOUNT SNOW USE OF EB-5 VISA NO SNOW JOB
Mount Snow’s plan to use the EB-5 visa program to finance a 120-million-gallon water storage pond for snowmaking and a new 36,000-square-foot base lodge for guest services looks like a smart use of this immigrant investor program. Critics doubt that it will increase employment to the extent the EB-5 program requires. But considering the resort’s impact on the entire Deerfield Valley, with hundreds of businesses between Wilmington and Mount Snow, it’s a sensible plan.

The $52 million project will increase Mount Snow’s current snowmaking water storage by nearly 500 percent and allow the resort to open more terrain earlier in the season. It will also shorten recovery time after thaws. That alone will bolster the region’s economy.

The construction of the new Carinthia Ski Lodge, which will include a restaurant, bars, and convenience store, paves the way for a small condo development at the park-oriented Carinthia pod. The addition of 100 condos seems like a realistic goal, as well as a source of new jobs.

Will all this create (or preserve) the minimum of 10 jobs per investor that the EB-5 program requires? Perhaps not at the resort itself, but it’s likely to support dozens of jobs in the valley. Will it support the 100 or so jobs that the project will need? There’s reason to believe the chances are good. Mount Snow’s offering is under the oversight of the state of Vermont EB-5 Regional Center, which has had a hand in successful projects at Jay Peak and Sugarbush.

OKEMO REAPS REWARDS OF EFFICIENCY
As many sources have been reporting lately, it pays to institute green practices. In February, Okemo received more than $93,000 for its latest environmental steps, in fact. Efficiency Vermont, a nonprofit organization appointed by the Vermont Public Service Board, paid that sum in recognition of Okemo’s purchase of energy-efficient snowmaking guns and upgrades to its pumping stations and snowmaking infrastructure, along with installation of time controls on lift-shack heaters and LED lighting upgrades at the Jackson Gore Inn.

And that tidy sum is in addition to all the cost savings the improvements will generate.

SNOWBOARDERS V. ALTA: FIGHTING WORDS
Regardless of the outcome of the lawsuit snowboarders filed against Alta in mid-January, one thing is clear: there’s still plenty of animosity between skiers and riders, despite decades of interaction. On message boards and blogs, the same old arguments keep reappearing and reappearing.

On our saminfo.com page, the comments have been less vitriolic. Some, regardless of the commenters’ snowsliding instruments of choice, have suggested the money being invested on both sides of the current lawsuit could have been better spent on improving the skiing and riding at resorts instead.

The lawsuit itself faces a murky future. Attorneys on all sides of the issue agree that the case comes down to whether Alta’s policy violates the equal protection clause of the 14th Amendment. Much as snowboarders might disagree, it’s likely that the courts will rule that snowboarding is not a fundamental right. That being so, as long as Alta can prove it has a rational business reason for its no-riders policy, it’s likely that the courts will rule in its favor. While the plaintiffs’ attorneys believe that they can make a case that Alta’s policy is not rational, many third-party legal experts say that the burden of proof is on the plaintiffs, and that there’s a good chance that Alta can argue successfully that its snowboard ban has been good for business, and is therefore rational. In a legal sense, anyway.

COMMUNITY HILLS GET THE LOVE
Small-town ski and snowboard hills have been in the news a lot lately. Last issue, we wrote about four in Maine (“Little Areas that Could,” January 2014 SAM). There are several small Western areas that are struggling and looking for the community (or others) to take over, too.

Pajarito Mountain in Los Alamos, N.M., is one that is exploring community ownership. Its owner, the Los Alamos Ski Club, has endured two low-snow seasons and finds its financial situation untenable. The Club’s preferred option at the moment is to transfer ownership to Los Alamos County. Ski area manager Tom Long says the concept has the County’s support, but there are many details to be resolved. In early February, the club’s membership voted overwhelmingly to pursue alternative ownership possibilities, including a handover to the County. Even dissenting members agree that there are several improvements that the County or a private for-profit owner could pursue, including additional snowmaking and broader summer operations.

In Casper, Wyo., the city council has supported efforts to upgrade Hogadon Ski Area, freeing funds earmarked for design and cost estimates to be used for actual construction of a new ski patrol and skier services building. The city may have been encouraged by the area’s nearly fourfold increase in visits and pass sales this winter. Also in Wyoming, Antelope Butte ski area has made progress toward reopening, with a great deal of help from the volunteer-driven Antelope Butte Foundation. The group has teamed with the Mountain Riders Alliance (MRA), the organization dedicated to making a positive change in the mountain resort industry by supporting the health and sustainability of smaller, community ski areas, to assist with the reopening effort. MRA currently manages Mt. Abram, Maine, and hopes to create a minimal-impact ski and ride area at Manitoba Mountain in Alaska.

Old Owners Never Die, Or Even Fade Away
He’s back. Les Otten, creator/visionary of American Skiing Company, has agreed to work with the owners of Balsams Wilderness Ski Area as they seek to reinvent and relaunch one of the more unique resorts in New England. The Balsams lies in extreme northern New Hampshire, and it is served by one of New England’s grand old resort hotels, a survivor from the Gilded Age and the early industrial days in the U.S. How will Otten help them spend the $35 million they plan to invest to renovate the hotel and resort? Stay tuned.

UPSCALE CLOTHING RENTALS ROCK!
Yes, there were lots of cool new products at the annual SIA Snow Show in Denver, as usual. (See page 38 for a few specifics.) But perhaps the most surprising innovation we encountered was GetOutfitted.com, a startup apparel rental service.

GetOutfitted rents top-of-the-line ski and snowboardwear from The North Face, Patagonia, Obermeyer, and others. Renters can go online, check out the many options for outerwear and accessories, and make selections. GetOutfitted sends the apparel to any destination, and guests simply send it back when they are done.

Founder Julian Flores created the company to fill a need--his need, originally--for occasional use of specialty apparel. He didn’t want to buy gear for every sport he wanted to try, but found he couldn’t rent it, either. And he found that there were too many choices to easily make buying decisions, even if he were so inclined. In addition, he was unwilling to purchase all this stuff and have it sit in a drawer for most of the year. He wanted really good, current, functional gear, but only for those times he actually needed it.

The company has discovered that plenty of other people were of a similar mind. GetOutfitted has seen success beyond its expectations this season. It launched in November, and has quickly developed a following in the Northeast and Southeast as well as many Western destinations. GetOutfitted is gearing up for continued expansion, and hopes to partner formally with resorts and lodging companies for the coming season.

WEATHER AND LAWSUITS AND STRIKES, OH MY!
As if Mother Nature, climate change, and a difficult financial climate were not enough challenges, a few resorts are getting pushback from some of their best external and internal customers.

Stowe Mountain Resort, through its subsidiaries that manage the Stowe Mountain Lodge, were sued by the Lodge’s condo owners over HOA and service fees. The Lodge and owners agreed to a fee reduction of as much as 26 percent, and that owners will have greater representation in the Lodge’s governance.

At Le Massif de Charlevoix, Quebec, employees at the mountain (but not including those working on the resort’s hotels and trains) voted for the right to strike over terms of their labor contract. The vote approved up to five days of strikes, which could be divided into hours and used for any interval the union chooses (think mini-strikes at key peak time periods). Management had been in negotiations with the union on a variety of cost-cutting steps since the beginning of the season, but the two sides were unable to come to an agreement. The resort continued operating after the vote, and Le Massif officials pledged to continue to seek a solution that will satisfy both parties.