EB-5 VISAS FUND JAY PEAK, BURKE MOUNTAIN DEVELOPMENT

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Publish Date

10/02/2012

SAM Magazine—Jay, Vt., Oct. 2, 2012—Jay Peak and Burke Mountain resorts will get a share of a $500 million investment of EB-5 visa funds that will transform the economy of the state’s “Northeast Kingdom." The overall development plan will bring new industries and a hotel/conference center to the town of Newport and expand the region’s airport, in addition to the expansions at Jay and Burke.

Bill Stenger, president of Jay Peak and a longtime proponent of the EB-5 program that Congress in September extended for three more years, said that most of the funds for the varied developments will come from the EB-5 program, which has already injected $125 million into Jay. The program allows foreigners to invest a minimum of $500,000 in U.S. projects that create new jobs; in return, if the job creation proves sustainable after two years, the investors receive permanent visas for themselves and their families.

The new development plan apportions $170 million to Jay Peak Resort to fund new lifts, trails and hotel complex by 2015. Burke will receive $108 million, including $1 million in snowmaking upgrades for the upcoming season, along with four new mountain lodges, also slated for completion in 2015. Burke’s snowmaking improvements include a new 800 hp compressor and more than 100 efficient, low-e and fan snow guns, some of which are replacing outdated, older models.

Stenger and Jay Peak co-owner Ariel Quiros purchased Burke earlier this year.
 

Comments

WOW why not?

Important to rememebr your ansestors came over on a boat and invested far less that the 500,000 being required for these VISA s- Give these people a chance at the American dream- They may have worked hard to put aside these sums of money and now they to can live the dream- Hard work and a positive attitude- a few failures Builds character and makes the great American entrepreneurs(Thats FRENCH) that we need in our sociey again- We can not all become rich with .com schemes- We have lost all of our manufacturing to China- Lets start building our great country again. HORRAY for some incentive to invest- we need it

And that Folks

Joe Hussein lost money? You may want to check those figures again. If you build it they will come. We will see. Jay still is no closer to the major markets as it was before they pumped in all the out of country money into the place. Where and when will the shoe fall off this foot? Only time will tell.

Numbers:

Not for nothing but if these guys are due to get $278MM that could be extrapolated to having 556 different "investors," FOREIGN investors, who just might get a bit concerned when their "investment" proves to be hopelessly underwater.... or rather hopelessly under hundreds of inches of that famous cold Jay Peak pow and icy Burke granular we occasionally read and hear about. Of course, if your true intention is to just gain citizen access to the USA, the half a $MM won't really mean all the much.... or will it? Nick and crown, it would be interesting to do a followup on how this works out and WHO actually gained citizenship from these crazy E5 Visa funds in the "Northeast Kingdom." I love that moniker... it's so HOPEFUL sounding, but at the same time fills me with foreboding. It's like calling the place the "Emerald Kingdom" or something. Where is the f'ng Wizard???

eb5

Good news Jacob Jones you too can get your fill of EB5 money if your business plan is sound and you spend some time looking for Asian (mafia) investors. The pilot program is over and the Obama admin hailed the program a success. So much so the President has recently signed a law making the program permanent... yippee

EB-5

Will be looking for Visa $. 1/2 a million for a visa. Government has to spend it on somthing. With the debt we now have this program should run very dry very soon.

visa

I can't help but think in this day and age how perhaps people who may not really care for all of us here in the US (think 9-11) may find this as an easy loop hole to enter the country "legally" because they made a $500K investment in America, regardless of what part of the country.. and got a "free visa"?? to come here and do whatever it is they please... Just a thought? Foreign investment is good, but I see some red flags.. Sure there must be background checks, etc. I grew up skiing at Burke and Jay and am glad to see the areas improve. This just seems a bit sketchy with "buying your way into our country".

And that, folks....

... was the supreme apologia for this whole boondoggle. I'd be in agreement JT if the numbers weren't so staggering - unjustifiably and uneconomically so - and if the program itself was not borderline predatory salemanship combined with ever so (really - read this stuff) appallingly vague terms and conditions. Loan or investment? It appears it's an INVESTMENT. So naive and trusting foreigners with aspirations of pursuing the "American Dream" ("God, this is great stuff America is made of!!!!" Your words, not mine....) will sink God knows how many millions of unrecoverable dollars into third, even fourth-tier ski "resorts" in the "northeast Kingdom." That's what they call the frigid and isolated realm of northern VT, right? C'mon, I'm no curmudgeon and I believe in - LOVE, in fact - the American ski industry. This is a MUCH worse version of the proven failed business models of the "late, great" IDR and ASC and Yellowstone Club and etc. Wrong scale, wrong timing, wrong pretense, bad "investment." By accepting and spending these hundreds of millions of dollars, good 'ol Bill Stenger is no better an accomplice - in fact, he's much worse - than the carnival barkers and self-aggrandizers like Tim Blixseth, Les Otten, Joe Hussein, Bob Brennan, etc. who have lost countless millions of dollars for their "investors" over the years. Does the ski industry need yet another whopping financial failure in the making? Please. Even if it is on the backs of unsuspecting American citizenship-seeking wannabes.

Little more Global vision little less narrow mindedness...

The "Godforesaken little northern VT resorts" are actually quite close to many. They just happen to live on the other side of the border! Hats of to Bill and crew for finding creative ways to get $ for development, promote regional growth, and at the same time bring in more reasonable candidates for citizenship. Hopefully these investors discover that the USA is not only a great country to invest in, but also a great place to immigrate to. I do agree that this option would do great to find it's way to other areas in the US....God, this is great stuff America is made of!!!!

Part Deux

This is a short follow up. I did just a smattering of Googling (that sounds weird, don't it???;^) of "International Fund" and "EB-5 Visa Funds," etc. It's a pretty sketchy bunch of websites out there that actually promote these programs and more or less, with bad grammar and vagueness and mumblety-speak, sell the idea of getting a sweet US Visa in exchange for participation in the "program." Regardless of how obscure and incredible the "program" is, it's still illogical and uneconomic to dump this amount of money into two remote, northern VT ski areas!

Old News?

Bill said it back in class Fall of 2008. He showed our intro to ski resort mngmt class his 10 year plan for Jay and explained how EB-5 works. Each step on his 10 year plan has taken place and more. Back in 2008 he also spoke about establishing a state of the art biomedical facility in the NEK. So not to say this is old news but the foundation was know years ago. Bill had traveled all over the world to find the investors for Jay. I'm curious if these new investors have already been found and if other ski areas around the country are able to utilize EB-5 like Bill has.

Are you kidding?

Of course I have no idea what this "EB-5 Visa Fund" is. No one else does, either, because if they did they would be all over it. If these Godforsaken little northern VT resorts can poach.... let's see: $170 +$108 (plus another $125? I'm a bit dazed from these numbers since we are talking $$MILLION$$) = a minimum of $278,000,000.00 and dump it all into a hotel, lifts, lodges, snowmaking... COME ON!! It's insane. I assume the money has to be paid back at some point, right? Nothing against Jay or Burke or Bill Stenger or the state of Vermont, but this is ridiculous. YOU CAN'T GET TO THESE PLACES EASILY AND THIS IS FLUSHING MONEY DOWN A GIANT TOILET! In this economy? With the demographics of the ski industry what they are?? I need to find out RIGHT NOW about how to get my hands on some EB-5 Visa funds. I have a great idea for a ski area re-development in northern Idaho (Bogus Basin) that I think will do wonders for creating jobs that "prove sustainable after two years." Wait! I could see this taking place in the Uintahs of Utah/Wyoming, too (Wolf Creek Pass). How about revitalizing Berthoud Pass.... they don't need snowmaking or any stinking fancy lodges. How about this money gets used to finance the "refreshing" or "revitalization" of countless down and out little ski resorts that could survive - because they are convenient to get to!! - but simply never had the horsepower to stay ahead of ski area demographics and economics? I'm thinking of: Ski Plattekill (in NY); Big Tupper; Magic Mountain (VT)... or was it Haystack? We could rationalize finally upgrading PIco (POWDR isn't going to....), modernizing Hidden Valley (take your pick: PA or NJ! Both!!!). We could actually boost vast segments of the ski industry's former successful niche ski areas that succumbed to crappy weather, high overhead and marginally stronger competition with - gulp! - $280MM large! I'm sorry to be the turd in the punchbowl here, but "investing" this amount of money into Jay and Burke gives other government boondoggles a GOOD name!

All the Power

All the power to you, Bill. Admired you in the classroom while at LSC, whereas now within your visions as you continue forward with the changes/updates for both Jay Peak and Burke Mountain. Personally, I haven't been up your way in quite a while, but numerous voices (i.e. past classmates, friends and etc.) have spoken highly of your developmental improvements at Jay.

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