CNL Purchases Mountain High

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SAM Magazine-Wrightwood, Calif., July 24, 2007-Mountain High has become the latest addition to the CNL resort stable. CNL Income Properties, Inc., has purchased Mountain High for $45 million from Valor Equity Partners. Current management remains in place, with a 20-year lease with the option of two 10-year renewals.

Karl Kapuscinski, president of Mountain High Associates, called this a "win-win-win" situation. Valor gains equity from the sale, the management team will continue to operate the area with a secure, long-term lease, and CNL gets a guaranteed yearly eight to 11 percent return on its investment (lease terms start at just over $4 million a year).

CNL has quickly become a major player in the ski industry. It began making acquisitions in 2004; it currently owns four former Booth Creek resorts (Loon Mountain, N.H., Northstar-at-Tahoe and Sierra-at-Tahoe, Calif., and The Summit at Snoqualmie, Wash.), two former Boyne USA resorts (Brighton, Utah, and Cypress Mountain, B.C.) and 50 percent of Bretton Woods, N.H. It also owns the commercial real estate in many Intrawest villages.

Another benefit: having CNL as an owner is almost like having an in-house bank. "They want us to invest, because that adds to our rental payment," Kapuscinski said. their revenue; it's like having a built-in bank. also: it's long-term stability, as we have the lease. we've been thru three sales in the past 10 years.


Lift Operations Manager

Last season, even with the lack of snow, there were a lot of positive changes happening around the resort. Now with the new ownership and the resources associated with that, the momentum of last year is just going to keep on going. All of us in the lift ops department are very excited about what the future holds for us, and our guests.

How does CNL profit from investment?

How does CNL gain if Mountain High invests? I'm not familiar with their business model but I would have to guess the lease includes a percentage of revenue. More investing means more revenue. Or alternatively, the investment funds could come from CNL (like a loan) and Mountain High would have to pay interest back to CNL. Does anyone know what is likely?

Snowboard Director

Congrats to Karl and company on the sale! All of us employees look for some positive improvements to the facilities in the resort in the very near future!