CNL TEES UP ANOTHER ONE
Even as it bought the Triple Peaks resorts (see page 16), CNL Income Properties was extending $68 million in financing to partner Boyne Resorts in a deal that includes the option to purchase Big Sky, Mont., in 2010, for $74 million. The current deal refinanced some of Boyne USA’s existing credit facilities, giving Boyne capital for investments or acquisitions. Boyne’s Steven Kircher told SAM the company expects to invest some of that capital at Big Sky itself, but that economic and business conditions will determine how quickly, and in what ways, the company puts its capital to work. Might that include the long-rumored takeover of neighbors Moonlight and/or The Yellowstone Club?


BUDDY, CAN YOU SPARE $300 MILLION?
In real estate, timing is everything. And both the Yellowstone Club, Mont., and Tamarack Resort, Idaho, ran into financial issues during the credit crunch. In fact, both resorts have had to file for bankruptcy protection.

It hasn’t stopped either from opening for the season. In fact, both started up the lifts on Dec. 12. Tamarack filed for protection last February, claiming it owed more than $300 million, including $262 million to Credit Suisse (CS). CS provided $10 million to keep Tamarack open through the end of January, with the expectation that it will provide additional millions to keep the area operating for the entire season. At Yellowstone Club, CrossHarbor Capital Partners, whose founder Sam Byrne is a member of the club, provided $20 million to fund this winter’s operations. That puts CrossHarbor at the head of the line in bankruptcy court, to the great alarm of Credit Suisse--which in this case is owed $307 million, give or take--and had been tussling with CrossHarbor to fund this winter’s operations. The bankruptcy judge ruled that Credit Suisse was unable to come up with the necessary short-term funds, and approved the CrossHarbor loan. The short-term result is that the Club has more than enough cash. But the CrossHarbor loan has a large string attached: Yellowstone Club must have a confirmed reorganization plan by March 31 or immediately commence the Club’s sale. The property was appraised in June for $778 million, but is probably worth considerably less currently.

A third Intermountain resort, Moonlight Basin, was scrambling for financing, too. Its financier, Lehman Bros., has itself gone belly up, after providing $165 million to Moonlight in the past year. Moonlight laid off 81 employees in October, then hired back 15 in November. Still, the area opened on Dec. 12, and claimed it will be business as usual this winter. Are winter resorts, like banks and car companies, worth bailing out?


ROUGH TIMES AT INTRAWEST, VAIL RESORTS
The credit crunch has impacted the biggest and most established destination resorts, too. Intrawest was saved from financial limbo in late October when owner Fortress Investment Group managed to refinance its $1.8 billion purchase of Intrawest at the last moment. Still, with advance reservations down at its destination resorts, the company announced layoffs (rumored at 200), though no figures were reported.

Vail Resorts, which revealed that its advance bookings were off by 23 percent through November, laid off 50 full-time employees, eliminated 92 unfilled seasonal positions, froze executive compensation, and suspended payments into the employees’ 401(k) plan. At the same time, hundreds of VR’s Q visas--cultural-exchange visas, which the company sought for instructors who were shut out of the H-2B quota--were held up by the U.S. Citizenship and Immigration Services. VR didn’t expect to obtain those visas for this winter season. Even so, an undisclosed number of Q visas were issued to VR employees, and the resort said it had been able to fill its open positions. Perhaps because it needed fewer employees to serve its shrinking clientele?


JUST WHAT DETROIT NEEDS
Never underestimate the ingenuity of American entrepreneurs. New Hampshire's Waterville Valley is teaming with Zipcar, a provider of cars on demand by the hour or day, to offer Boston skiers and snowboarders a more affordable way to hit the slopes. In addition to Zipcar’s low daily rate--about $69, including gas, insurance and 180 miles--guests who arrive at Waterville get $15 off the price of adult or college student tickets and lesson packages. They also receive discounted rental gear ($27 a day). To promote the concept, this month Zipcar and Waterville Valley are offering $30 lift tickets to students who carpool via Zipcar, and ski/snowboard rentals for free on a non-holiday weekday.

This idea could spread: Zipcar provides city dwellers a variety of vehicles at affordable prices--5,500 vehicles, in fact, in 28 North American states and provinces. The service has more than 250,000 members, and we bet those numbers are growing.


OKEMO MAKES LEARNING FREE
One way to increase area visits is to give them away for free. For the first time, anyway. That’s what Okemo did weekdays Dec. 1-19, and it passed out 2,000 packages. Some went to skiers who were trying snowboarding for the first time, but still. Okemo got the chance to train new instructors, show off the efficiency of its new HKD snowguns, and build community bonds. Not to mention gaining the loyalty of all those true newcomers.


GARAGE SALE IN VAIL
Yes, but it’s Vail, in the Founders garage, and what’s for sale is not some old discards, but one parking space. For $500,000. And for a good cause: the ski racing career of Sarah Schleper, a former U.S. Ski Team star who now competes and campaigns on her own. Dad Buzz Schleper is selling the space because sponsors aren’t exactly lining up to cover Sarah’s expenses, which include travelling with her young family, since she hasn’t competed since 2006 due to a knee injury. But she is trying to get back to form so she can race in the 2010 Olympics, and she’s trying to do it outside the usual Ski Team system.

Why $500,000? “That's what I think the going rate is,” Schleper said. “Parking is going up in Vail, and it's a block from the Vista Bahn.” He could be right; the last Founders space went for $350,000. So, why not?


SNOW REPORTS COME TO THE IPHONE
Yes, the iPhone universe includes winter resorts. The North Face and Apple have launched a new free iPhone application that provides skiers and snowboarders with up-to-date weather and map information, including current and expected snowfall and detailed daily forecasts. The app will also help aficionados get to their favorite resorts and find their way around them once they arrive. A Locate function presents driving directions through Google Maps, while the Trail Maps function shows the lay of the land via high-res images. Users can select, save and arrange their favorite winter resorts for easy and quick reference, and access additional information through links to the NOAA Climate Prediction Center, as well as resort-specific Websites. Coincidentally, The Snow Report will also include a The North Face store locator and customizable background images featuring The North Face athletes.


HOW GREEN IS YOUR SHUTTLE?
Very green, if you’re taking the Colorado Green Shuttle from Denver to the I-70 resorts. The Green Shuttle offers Colorado’s first carbon-neutral mountain service. It uses cutting-edge straight-vegetable- oil (SVO) technology in a custom Ford Excursion to whisk up to seven passengers to the mountains without using a drop of gasoline.

SVO technology is one way to cut greenhouse gases and the effects of global warming. The vehicle is “carbon neutral” in that the plants grown to make the vegetable oil absorb more carbon dioxide than is released by burning the oil. Plus, it’s renewable. And cost-effective: luxury service to Vail, including DVD movies and beverages, costs just $400 (less than $60 per person). The bottom line is, customers can enjoy a plush trip and feel clean and green at the same time. Now, if they could only fly planes using this stuff, they’d really have something.


WHAT IS EVERYBODY WAITING FOR?
Destination visits across western North America were off by 20 percent through November, and the prospects weren’t good for improvement, according to data from MTRiP. MTRiP guru Ralf Garrison says that the pace of reservations in November was off 25 percent from the previous year, highest of the fall months. Room rates were down about 4 percent, but with occupancy falling, lodging rates were likely headed down as well.

Since snowfall was still below average in many parts of the West, it’s possible that skiers and riders were simply waiting to see if and where the snow comes. But reservations for the Christmas-New Year’s holiday were off by 25 percent in some resorts just three weeks out, and that suggests it will take some mighty great snowstorms to jumpstart business. If, instead, resorts are forced to discount heavily, will they risk alienating their loyal customers who booked early at the highest prices of the season? This environment may well challenge destination resorts to review their entire business model.