The rumors started long before the public announcement and the Town of East Burke, Vt., hunched up its shoulders against the hard times to come. Burke Mountain was closing. It had been the driving force in a village of fewer than 500 residents since lifts were built in the late 1950s. Yes, it had changed hands several times, but this was a foreclosure and winter without skiing would be sad.
Jody Fried and Billy Turner, co-owners of Bailey’s and Burke country store, were not so certain the loss of the mountain was preordained. They had an idea and over the course of a few months contacted potential partners in preparation for the auction. They also launched a publicity campaign to bring greater awareness to the public at large.
“For four weeks I did nothing but try to interest others in a community-based ski area,” Fried said. “I grew up skiing on this mountain and I wanted the same thing for my kids.”
Fried and Turner also consulted with Ford Hubbard, whose 11 years of experience with Burke Mountain operations helped develop a business plan. It described operating the mountain as a bare-bones public ski area. The mountain, which has a quad, a triple and two surface lifts, could not compete for business with other Vermont and New Hampshire giants. East Burke had no ski town nightlife or expensive shopping. And there was no real estate to speak of. To be successful despite 2,000 feet of vertical and 180 skiable acres, the plan had to be different. Public skiing became the focus and the ski area’s market niche would depend on the area’s ability to sell small-town friendliness. It would take an amazing alignment of the planets to pull together the ingredients for success.
But at the public auction on September 16, 2000, there were three major components up for sale—the mountain operation (including snowmaking on 75 percent of terrain), the cross-country ski area and about 125 condominiums, which were ultimately sold individually.
The auction guidelines were unusual. Each of the three major elements would be auctioned separately and also as one entity. Should an individual want the entire holding, the bid would have to exceed the sum of the three winning separate-entity bids by 10 percent. In other words, a premium was required to purchase the entire operation.
Fried’s group was unsuccessful. Furthermore, an anonymous bidder purchased the rights to the mountain operation consisting of 1,500 acres in a lease-hold arrangement with the State of Vermont and another 600 acres including lifts, lodges and related equipment. What the bidder intended to do was unknown. Would he subdivide? Would he log the mountain? Fried approached the bidder’s agent and showed him his business plans. They talked about possible cooperation and Fried felt there was still a chance for public skiing at Burke.
The bidder’s agent also approached the Burke Mountain Academy (BMA) whose primary concern was to maintain a training facility for its ski racing program. The academy was wary that a public ski operation might create a financial burden for the school. “Once we were able to discuss the financial aspects of running the operation, we began to feel more comfortable,” says Kirk Dwyer, who became BMA’s headmaster in June of 2000. As a result, Burke 2000, L.L.C. was formed and the bidder conveyed his option to purchase to BMA. Once all the papers were signed, it became the only ski racing school in America to own a complete mountain operation. The academy would remain in East Burke and Burke Mountain would once again be open for public skiing.
There was, however, one small condition: The mountain would open for public skiing only if the funds needed to cover expenses could be obtained before the season. This meant the academy had to sell almost twice as many season passes as had been sold the previous year. Some members of the BMA’s board of directors were skeptical. In 2000, nearly 800 season passes were sold. The target was set at 1,500 season passes. Just to make it interesting, the passes had to be sold in six weeks to ensure enough time to prepare for public skiing for the 2001 season. Could twice as many passes be sold without lengthy promotional time? It was time for a full-court press.
At an October public meeting attended by more than 400 people, BMA officials detailed their plan, explaining they intended to sell the mountain operation in the future. And in order to interest the right buyer, they said, the community would have to show its support for Burke mountain by buying season passes. Individual adult passes were priced at $479; gold (corporate) passes were offered at $999. Other discounted prices were also announced. One person stood up and said he would buy 10 corporate passes. Bill Stenger, the president of Jay Peak, which is about an hour and a quarter away, sweetened the pot by announcing that the season pass would also be honored at Jay Peak. Skiers would get two mountains for the price of one.
“Burke Mountain has been around for a long time and it’s been economically important to the region,” said Stenger. “It was the right thing to do.” Cannon Mountain and Bretton Woods, N.H., also jumped in, offering pass holders three free day passes. So started the campaign to demonstrate public support for Burke Mountain. But passes had to be sold fast.
Fifty volunteers conducted the sales campaign. Numerous services were donated such as printing, radio and TV advertising and graphic design. Free, daily newspaper coverage tracked the effort. A Web page was designed and donated. Public service announcements played on Vermont radio stations. Merchants displayed posters in their shops. Thirty thousand publicity pieces were stuffed and mailed. Many radio advertisers concluded their own purchased airtime ads with a reminder of the season pass sale. Auto dealers distributed passes with auto purchases. The local racquet club offered a month’s membership to anyone who bought a season pass. Area employers offered a subsidy for employees to purchase passes. The list goes on. Everyone who could pitch in did so.
In the final two weeks leading up to the deadline of November 15, a flurry of activity sent the number over the top and the 2001 season was assured. BMA wanted to begin race training in early December. The opening date for public skiing was set for December 15.
Dick Andross, who was general manger at Cannon, was hired as general manager of the Burke Mountain Operating Co. in mid-November. Andross understood the need to reduce costs to make a public ski season feasible. Installing utility-grade generators to supplement electrical service to power snowmaking equipment reduced costs during peak power demand. The generators were obtained and installed in four weeks. Staffing was reduced to keep costs down. Half of all administrative positions were eliminated as the area would operate in winter rather than all four seasons as had been the case, and the marketing budget was slashed from $250,000 to $25,000. But operations expertise was needed, so Ford Hubbard was called out of retirement to become the mountain manager, a position he will resume this fall after a summer of part-time work.
Virtually every operational need was obtained at a discount from local merchants who wanted to help save Burke Mountain. This assistance included discounted fuel oil, a reduced rate for electricity, use of a vehicle from an area dealer and free sand for road sanding. Other cost savings were implemented so the mountain operation could become as lean as possible and still be efficient, as outlined in the original business plan. Management used Fried and Turner’s plan as a framework for their operating plan, which is now being developed with an eye toward modest improvements.
With all the hard work, a little luck would be in order and it came in the form of plentiful natural snow during the 2000-2001 season. BMA training began the first week of December and public skiing started right on schedule. Apparently, the planets remained in alignment as the entire season’s snow was the best in recent memory.
“The stars lined up for us in November and stayed that way,” said Andross. “We couldn’t have written our own weather forecast and had it turn out any better. We kept telling Ford Hubbard he had sold his soul for the weather we had last winter.”
What did the final numbers show? Well, season pass sales, targeted for 1,500, actually came in at 2,300. Ski pass revenue exceeded $785,000 and in its first year of operation under BMA, the mountain met its expenses. The academy is feeling very good about the first year’s outcome and is now reconsidering its earlier plan to look for a buyer.
“Right now we’re developing a long-term plan for the area,” said Andross. “This season’s results have given us the confidence that we can be successful. We’re thinking about some projects and we’ll be talking with interested parties about possible real estate relationships.”
According to Hubbard, in the 1950’s, the original Burke Mountain organizers passed the hat and community cash contributions helped open the mountain. In similar fashion, another round of community support has helped to keep it open. Some things change but others, like community support for Burke Mountain, remain the same.
