Ski Areas Look to Local Governments to Sustain Operations

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SAM Magazine—Kensington, Minn., June 2, 2015—Under the strain of tighter profit margins, two ski areas in the Midwest are looking for local government funding to continue operations.

In Minnesota, the Douglas County commissioners recently voted to investigate turning Andes Tower Hills, currently owned by brothers Vern and Paul Anderson, into a non-profit, city-owned operation. The Andersons plan to operate the area through the 2015-16 season, but are considering options for the future. The ski hill reportedly draws between 35,000 and 55,000 visitors each season.

Long-term, the Andersons propose donating the land and equipment to the county, which would operate the 193-acre area as a 501(c)(3) non-profit organization. There would be no immediate cost to the county, but the plan would require creation of an operating trust fund.

While the concept received initial support from the commissions, some expressed concerns over the loss of $18,000 in annual property taxes, as the land would become tax exempt, and over insurance and liability issues.

Supporters cite the recent revival of Detroit Mountain near Detroit Lakes, Minn., as a model. That area reopened last fall after being shuttered since 2004. The non-profit Detroit Mountain Recreation Area (DMRA) purchased the area and has invested about $8.5 million. The facility has been donated to the city of Detroit Lakes, but the property is managed by DMRA. (Ed. note: SAM will present an in-depth look at Detroit Mountain in an upcoming issue.)

Meanwhile, in Traverse City, Mich., commissioners approved a $1.5 million pledge for a new lodge and parking lot at the city-owned Hickory Hills ski area. The vote came after avid local skiers and riders conducted an email campaign asking commissioners to dedicate funds for up to two years with a goal of raising $3.9 million. As part of the funding plan, the committee and local supporters have 24 months to raise a matching $1.5 million needed to claim the city funds.

Tim Werner, a city commissioner and member of the advisory committee, told his fellow commissioners that the funds were necessary in order to avoid closing the area entirely.

Laura Ness, president and co-founder of the nonprofit group Preserve Hickory, also urged approval. "People always respond when we ask for help for Hickory," Ness said. "This community loves Hickory, and this plan is what the community wants. We had over 1,000 people involved in the master planning process."