California Resorts to Sue USFS?
If we’ve learned anything from the Sierra Club and others like them it’s that there’s nothing like a law suit to focus the attention of an otherwise distracted agency like the Forest Service. So it is that California Ski Industry Association (CSIA) is on the point of taking USFS into Federal Court over the provisions of the agency’s Sierra Framework, the master plan for administering the national forests in that region. The nub of the problem in the words of CSIA’s Bob Roberts: “They are imposing old growth standards on developed recreation facilities.” Interesting, because even USFS officials agree this may be the best way to move this crucial forest plan forward.
Major New Resort for Idaho?
There’s buzz over WestRock Lake Cascade, a luxurious, four-season resort projected for development in west central Idaho. It would be largely on state land and the major hurdle right now is to get approval from the state land board, a five-member body that includes the state’s highest elected officials. Grand opening is projected for the Winter of 2005; projected cost is $1.15 billion. Yes, that’s with a “b” and it would buy a golf course, a village, 2,000-plus condo units, lots of infrastructure and 1,100 skiable acres served by six 6-packs, a detachable quad, a signature 33-passenger funitel and some surface lifts. Interesting. It was a little over 10 years ago that the Valbois Resort project was announced, essentially in the same place and with similar plans, but with a different footprint and down the ridge on Forest Service land. Five years later it had died, financially unable to continue.
Though the public seems to be pretty much polarized into equal pro and con numbers, the morning line betting is that the project will get the green light from the state, if only because the Governor wants it to demonstrate support for the rural economy, beset as it is by the collapse of logging. The vote is expected in April, perhaps earlier.
The question marks include: 1) Is there really a case for it in a flat skier market? 2) Doesn’t it have the same accessibility problems (a 100-mile drive on twisty Rte 55 from Boise) Sun Valley has, but without that resort’s 67-year-old brand? 3) What about that stink in late summer when algae bloom in the shallow waters of adjacent Lake Cascade? The developers have compelling answers to two questions, including 1) the state’s commitment to improve that highway; and 2) hydrologists project the snowmaking will improve, not degrade the lake, thanks to a gigantic, newly-discovered aquifer. But the first question can be debated.
An interesting detail: snowmobiling is BIG in those parts and the developers have left no stone unturned in lining up local support from that community. Clubs are being consulted for starters and there are plans for a garage and fueling station at the summit. This could provide the ultimate test of how happily ski and snowmobiling cultures mix.
Important Musical Chairs in D.C.
For ski areas that are wholly or partly on public land, the chairman of the House Resources Committee is a key person. So when the current chairman, James Hansen (R-Utah) announced he would not seek reelection—a surprise even to his own staff—it can matter a lot. Says NSAA’s Geraldine Link, “We’ve had a good relationship with Jim Hansen. We’ve spent a lot of time with him. And it matters a lot who succeeds him.” On straight seniority, it would go to Jim Saxton (R-NJ), but the slot usually goes to a westerner. Don Young of Alaska already has the transportation committee, so he’s out. Best outcome would be Scott McInnis (R-CO), a friend of skiing and of recreation generally. But being ninth in ranking, he may be a stretch. And how is the decision made? Officially, by Speaker Hastert and the Republican Conference. It’s sort of a tribal thing.
Pelican Butte Is Moot
After years of studies and impact statements, the developers of Pelican Butte ski resort in Oregon’s Winema National Forest have laid the $37 million project (nine lifts and 54 runs) to rest by withdrawing its special use permit application. Jeld-Wen Inc., the would-be developers, faced insurmountable odds: U.S. Fish and Wildlife opposed it, Northern spotted owls and bald eagles nest in the region, shortnosed suckers and Lost River suckers live in the lake and the mountain is a sacred site for the Klamath tribes. The project’s tireless environmental coordinator, Kurt Schmidt, is now at nearby Warner Canyon, where guests are delighting in the area’s first chair, a “new” triple from Deer Valley. (See also page 24.)
Canada Lynx (Groan!) Issues Again
Quite apart from whatever environmental virtue there is in being pro-lynx, that wily cat has been systematically used by conservation idealogues to beat up on the snowsports industry in Colorado. Sensing a new opening, it is now Colorado Ski Country that is suggesting the whole issue and the attendant regulations be revisited by U.S. Fish & Wildlife. This is in the wake of the “faux fur” episode in which seven wildlife biologists were accused of hanky-panky for submitting bogus fur to the labs studying the threatened animal. They insist they were testing lab accuracy, but Idaho’s Senator Larry Craig cried foul: “If they hadn’t been caught, you might have seen entire forests shut down on a false premise,” he bloviated. Colorado Congressman Scott McInnis plans a congressional hearing.
Victimized by Success?
The quirky, proud attitudes of Vermont’s Mad River Glen and its signature bumper sticker “Ski It If You Can” have earned it recognition and an iconic stature. But sometimes a slogan can be too successful. No problem with the regulars and the family business that sustain it, but try selling the image to new groups and families. So now there’s an effort by the resort’s skier-owners to soften that image and convince families that they can indeed ski Mad River.
Resort Credit Ratings Under Review
After 9/11, the four rated ski resort stocks were placed on review by Moody’s Investor’s Services for possible downgrade. The review, completed in January, resulted in the rating on the $200 million of Vail Resorts’ bonds being lowered a notch, as was the rating for its overall debt. On American Skiing Company, $280 million of debt was lowered to as low as Ca, the second-lowest grade before default. The lowering, however, preceded ASC’s sale of Steamboat. The rating on Booth Creek Holdings’ $133.5 million notes was left unchanged as were Intrawest’s debts. However, a “negative ratings outlook” was also assigned to Intrawest, which means it will be reviewed later. Among other concerns, the financial community worries about the impact on ski resorts of post-9/11 fear of flying. The biggest impact of a lowered rating comes in increased borrowing costs.
Score Two More for Boarding
Park City announced in January it would offer some segregated runs—some for skiers, some for riders. It lasted just six days—somewhat longer than most thought it would. And on February 1, Perfect North Slopes, Ind., finally opened its slopes to snowboarders. Let’s see, we’re now down to Taos, Deer Valley and Mad River.
Ad Lineage Drops for Ski Publications
Ski and Skiing magazines dropped 16.6 and 10.9 percent respectively in advertising pages over the first five issues of the current season. But more alarmingly, they were down 35.7 and 41.1 percent respectively on the January issues. The first four issues were not impacted by 9/11, so any drop was probably attributable to the downturn of the economy. But that January hit may well reflect the travel fears from 9/11.
Resort Ownership: Who’s Eying What?
Readers of these Blue Pages know we never engage in spreading idle gossip. We’re too sophisticated as journalists to do so, too proud and experienced. That is why we would never report on speculation heard in the seedy alleys adjacent to the corridors of power. If we didn’t hold the line on this, we might find ourselves reporting on such nonsense as Les Otten preparing to buy back Sunday River and Sugarloaf from American Skiing Company. And we would find ourselves giving ink to the supposed rationale for this move: that he is burnishing his Maine image for the U.S. Senate run he plans. One thing would then lead to another and we would be wallowing in such absurdities as the Bass family’s plan to cut losses on its ASC investment by hunkering down with the genuinely bright prospects of The Canyons in Utah and unloading the balance. Pretty soon we would be forced to give currency to the theory that the Crowley family would be scarfing up Mt. Snow, while Stowe’s GM, Hank Lunde, would be returning to Killington at the head of a consortium with backing from Killington’s founder, Pres Smith. And Oh, Heavenly! We’ve quite forgotten Vail’s role.
