AREA ROUNDUP
Ski area expansion at all-time low
There were exceptions, of course, but even these did not change the generalization that little happened. The opening of the huge Mary Jane complex at Winter Park, Colo—an 80 per cent increase in total ski terrain, served by three major double chairlifts—is actually the culmination of a building program that was committed much earlier.
Most capital expansion went to snowmaking—a reflection of an understandable desire by banks to hedge their ski area bets.
There is a long list of reasons given for the standstill: uncertainty about the economy, environmental constraints, threat of gasoline shortage, drying up of land and condominium sales. Mostly, however, the reasons can be stated simply with the one word: Money.
A good season in the east enabled many areas to recoup from the previous two disastrous years, but little was left over for expansion. Banks were too busy pulling in their ski area horns to consisider new opportunities, and venture capital was not exactly rushing to the ski area field.
Also overhanging the scene was the spectre of bankruptcy and “financial re-organization” in the east. (Ski area appraisals for banks became an income staple for some consultants.) Giant Mt. Snow was locked in a massive and complex tug-of-war between creditors, underwriters, investors and management. In financial circles this had a depressant effect: “If it can happen to Mt. Snow after its best season ever, what hope is there for the industry?” The truth, of course, was much more complex than that.
On the bright side, there are many who think the ski industry is better positioned for profitable operation than ever before, and that the rising operating costs now represent the biggest problem. One major resort operator put it this way: “We know the business is there, we know the market is growing at a time when competition is not, and we are slowly getting better utilization of our expensive facilities. Now we just have to price our product right and keep a lid on expenses. There is no reason we shouldn’t be profitable.”
There were other favorable indicators to point to. Ski shop indebtedness was well down and inventories under control. The domestic tourist business did well this summer. People shopped for bargains and did not travel as far afield as they used to, but travel and vacation they did. Advance bookings looked extremely good, and the ski publications were enjoying the benefits of fatter ski resort promotion budgets.
The Winter issue of SAM will again carry a summary of new lift construction, but in the meantime, here are some of the highlights not mentioned above: A 2,036 vertical foot chair at Aspen’s Snowmass . . . an 1,838 vertical foot lift from the town of Telluride straight up to the upper slopes . . . Vail’s first triple chair as well as a beginner’s chair . . . Devil’s Head in Wisconsin adding a triple chair, as is Alpine Valley . . . Killington in Vermont is replacing the 1959 double chair to the summit with one that about doubles capacity . . . at Maine’s Surgarloaf a 1,465 vertical foot chair is being installed . . . at Squaw Valley a replacement chair goes up KT-22, a new chair to be called “Searchlight” replaces the lifts on Little KT-22 and the present Exhibition chair is being substantially re-built . . . Snow Summit in southern California has added a fourth chair, a 1,000-ft. long quad.
Aspen expands in Canada
The Aspen Skiing Corporation announced that it entered into a preliminary agreement with a major Canadian financial institution for the joint operation and further development of the Fortress Mountain resort area near Banff, Alberta, subject to final approval by the Province of Alberta of Aspen Skiing Corporation’s participation.
The joint venturers spent over $1,000,000 this summer to upgrade and expand the existing facilities. Included in this program is a new triple chair lift, housing for approximately thirty employees, expanded parking facilities and road improvements. When taken over, the area had two Doppelmayr T-bars, a double chair lift and a 50-room hotel situated at the base of the skiing facilities. The mountain operation will be under the direction of the Aspen Skiing Corporation, with Hugh Smythe, formerly with Whistler Mountain, Briish Columbia, as the ski area manager.
In making the announcement, D.R.C. Brown, President of the Aspen Skiing Corporation, stated that the existing political climate in Colorado in general, and in Pitkin County in particular, discourages additional investment in recreational development, and that the Aspen Skiing Corporation is desirous of expanding its operations in areas where tourist oriented development is considered an asset to the economic and social base of the community.
Stratton names Tarinelli manager
Vermont’s prestigious Stratton recently named Donald Tarinelli, 45, as general manager and executive v.p. “Tink” Smith assumes the post of president vacated by departing Harvey Clifford.
The appointment culminates a six-month period of top-management scrambling that saw the departure of four key executives. In addition to Clifford, there was marketing director, Dick Lechthaler, his successor, David Meinertz and chief engineer John Layman. Also confusing the picture was the appointment of NSAA executive director, Cal Conniff, as general manager, followed by his change of mind and decision to stay with NSAA.
Tarinelli has owned a house at Stratton for 11 years, and five years ago founded the Stratton Mountain School. For the past 10 years he has been a vice president of his father’s firm, Palmer Tarinelli Construction Company. His daughter, Debbie, is a U.S. Hopeful Squad racer.
Litter patrol at White Pass
The Department of Ecology of the State of Washington sponsored the first Ski Litter Patrol last spring at White Pass. The program was “designed to help the White Pass Company keep their slopes clear of unsightly debris and to create a greater awareness of the litter problem.”
Skiers participating in the clean-up included members of the U.S. Olympic Ski Team, and many other volunteers.
Aspen to pay quarterly dividends
The Aspen Skiing Corporation announced the commencement of a policy of regular quarterly dividends, with the declaration of the first quarterly dividend at the rate of 10 cents per share, payable on September 15, 1975, to shareholders of record as of the close of business on September 1, 1975.
SAM believes this is the first pure ski resort operation to start a regular dividend policy.
ASSOCIATIONS
Tramway Authorities gather for meetings
Leaders of the aerial tramway industry throughout the world gathered June 23-27, 1975, in Vienna, Austria for the 4th International Congress of Transportation by Rope and the General Assembly Meeting of the International Organization for Transportation by Rope (OITAF). The Congresses, which are held at six-year intervals, are significant to aerial tramway interests throughout the world.
The international congress drew over 400 industry leaders representing all facets of ropeway transport. Presented to the Congress for review and discussion were 124 papers, of which three were from the U.S. They ranged from highly technical problems of wire rope and tramway design to the legal and administrative considerations of ropeway operations in Europe and in America. Simultaneous translations were available to participants in five languages.
The Congress was well attended by aerial tramway interests from North America. Among those attending were John Fetcher representing NSAA; tramway engineers Robert Heron, Samuel Bonasso, Winston C. Robbins, Stanley H. Froid, Janek Kunczynski, and Beat von Allmen; Robert N. McLellan, John E. Hoegg, Robert E Swanson from Canada; Oliver L. McKenney, Milton W. Jones, Robert E. Ficker, and Werner Auer, aerial tramway operators; and Daniel F. O’Connor, wire rope specialist. Papers were submitted to the Congress by Charles F. Dwyer, Kenneth M. Bankstone, and Daniel F. O’Connor from the United States.
The General Assembly Meeting of OITAF was significant to aerial tramway interests outside Europe. The assembly ratified constitutional changes to authorize formation of satellite groups on the continents around the world. The action by the world-wide aerial tramway group culminated activities initiated over five years ago and spearheaded by Charles F. Dwyer and the late Robert Kinney from the United States. Objective of the continental section are to facilitate participation in the activities of the parent organization with its headquarters in Europe, and to enhance the benefits of membership for those outside Europe.
The North American Continental Section of OITAF (OITAF-NACS) will be the first to activate. In spite of close organizational ties and similr objectives, OITAF-NACS will be an independent, non-profit organization encompassing all those indivuals, firms, and organizations interested in planning, construction, and operation of wire rope transport facilities in North America. Its primary objective will be advancement of the ropeway transport industry.
Organizational efforts and the initiation of activities by OITAF-NACS will continue under the interim officers and active members. Charles F. Dwyer, P.E., United States Forest Service, is president; Samuel G. Bonasso, P.E., consulting engineer, is vice-president; and, Robert Heron, P.E., is secretary-treasurer. Inquiries regarding the new organization may be directed to the president at: USDA, Forest Service, 11177 West 8th Avenue, Box 25127, Lakewood, Colorado 80225-(303) 234-3841
ACQUISITIONS
Harvey Clifford new owner of Glen Ellen
Harvey Clifford, with a long history of prominence in the ski world that includes a successful racing career for his native Canada, seven years as general manager of Mt. Snow and a like period running Stratton, is the new owner and operator of Glen Ellen ski area in Fayston, Vt. His newly-formed Glen Ellen Resorts Ltd. purchased the area from Commercial Investment Trust of New York.
The area, which sits astride a ridge cheek-by-jowl with Sugarbush and Mad River areas, boasts the highest peak in the Green Mountain National Forest, rising to 4,083 feet, some 2,650 vertical feet above the base area of Glen Ellen.
LAW
Colorado Tramway Board challenged
The right of the Colorado Passenger Tramway Safety Board, the agency which monitors ski lift operation in the state, to license lift engineers is being challenged in Denver District Court.
William F. Jewett Jr., an engineer with Lift Engineering Inc., of Carson City, Nev., is seeking an injunction barring the board from denying him qualification to design and install lifts at state ski areas. Moreover, he is challenging the board’s authority to act in any such qualification. The ultimate decision could very well render ineffective the very act under which the board was established in 1965.
Jewett claims the board has no statutory authority for licensing lift engineers under the wording of the act. He contends that even if this were the case, the Colorado legislature made an unconstitutional authorization of legislative authority in so doing. Even should these two contentions be denied, Jewett holds that no meaningful standards as to who should be licensed have been established by the board.
The outcome of the suit could determine whether the tramway board does, indeed, have review authority over lift engineers or whether the entire tramway act, because of its vagueness, has any meaning at all. Several other states have used the Colorado act as a model.
Lift accidents bring O.S.H.A. scrutiny
Colorado ski areas could face closer scrutiny under the Occupational Safety Hazard Act following two employee deaths within five days at Vail and Copper Mountain.
The first, Aug. 4, occurred at Vail when a chain holding a lift tower being loaded in a parking lot snapped, causing the tower to fall on a Vail Associates employee.
Then on Aug. 8, a chair derailment on a Copper Mountain lift injured three employees, one fatally.
The Colorado agency which administrates the act investigated both accidents and its report is pending. It is expected to recommend that both ski areas take advantage of safety program instruction made available through the O.S.H.A.
Further, Homer Matlock, acting supervisor of Colorado O.S.H.A., indicated he is working with the Colorado Passenger Tramway Safety Board to implement a cooperative agreement by which O.S.H.A. would monitor lift safety as it relates to employee use.
Under O.S.H.A., Matlock’s agency is required to inspect every employer within five years. But he said that given proper funding, he hopes to accelerate inspections to once each year.
While no one will say outright that the two accidents will cause any change in the relationship between O.S.H.A. and Colorado ski areas, Matlock allowed, “It has given us the impetus to complete this agreement with the tramway board.”
Ski areas have not come under strict O.S.H.A. scrutiny in the past, perhaps because they are routinely checked by lift designers, the tramway board and the U.S. Forest Service.
N.Y. operators’ Suit dismissed
The $2.9 million lawsuit (Spring SAM) filed in U.S. District Court on Feb. 20, by private New York ski areas against state operated ski areas, has been dismissed.
The suit had been filed by ten plaintiffs, representing six ski areas, an equipment corporation, two individuals and Associated Ski Areas of New York.
The plaintiffs had sought relief of $2.9 million in a declaratory judgment on the grounds that low fees charged by the State of New York had deprived them of their property in violation of the Fourteenth Amendment of the United States Constitution.
In his memorandum decision of August 26, Judge Foley noted, “In my judgment, the failure of the complaint to allege any violation of a right recognized under the Constitution mandates the dismissal of the complaint.”
Michael Brandt of Glens Falls, president of West Mountain Corporation, said the plaintiffs plan to appeal the decision to dismiss to the U.S. Appeals Court. Brandt said it was felt that the lower court would dismiss the law suit since normally lower courts do not like to “make” law and such cases are decided in higher jurisdictions.
Judge Foley, who is known for his well thought out decisions with a touch of humor and realism, took the opportunity to pass along a note to the ski industry.
“The ski industry,” he noted, “is subject to many economic ups and downs which are directly related to the amount of snow and its quality during a given winter. In recent times, all ski slopes, public and private, have suffered due to a chronic lack of snow both in quantity and quality; bad weather has not yet been recognized as a valid basis for a civil rights suit. Plaintiffs cannot reasonably blame competition from state ski facilities as the sole cause for their plight. And if the instant suit is any indication of their snowmaking ability, ski conditions should improve considerably for them in the coming winter.”
Although the plaintiffs lost a round in the courts, there was considerable satisfaction when the State subsequently raised lift tickets across the board, including a $100 increase in season passes. It was widely assumed that there was cause-and-effect between the well-publicized law suit and the ticket increase.
MARKETING
Survey released on Sugarloaf skiers
Tourism Research Associates, which developed the ski lift interview technique, has completed a study of the Sugarloaf, Maine, skier. The 109-page report is available for $15 per copy from TRA, 220 Middle Street, Amherst, Mass. 01002.
The study, which derives from personal interviews on the Sugarloaf lifts (including two T-bar interviews!) between January 5 and February 2, investigates demographic, attitudinal and ski activity aspects of the Sugarloaf skier. With the area’s permission, TRA also included questions on marijuana usage.
Results are shown as totals, as well as broken out by students versus non-students. (There was a high incidence of students during the interview period).
Equipment brokerage firm is organized
Hugh Knapp, formerly sales manager of Snow Machines Inc., has formed the equipment brokerage firm of Knapp Associates, with headquarters at Box 598, Lakeville, Ct., 06039.
Knapp is handling all types of equipment used by ski areas. This includes lifts, over-snow vehicles, snow-making equipment, ski equipment for the rental operation, office equipment. “Our job is simply to bring buyers and sellers together,” says Knapp. “In the past it has not been all that easy to sell a used piece of area equipment, even if there is a potential buyer just down the road. They just didn’t know about each other. The key to our program is communications, and we are providing it through a toll-free number (800-243-2844) and a monthly publication of listings called “KA Equipment News.”
Simultaneously, Knapp announced that Beardsley Publishing Corp., publishers of Ski Area Management, would handle the publishing of KA Equipment News. A subscription publication mailed first class on a monthly basis, it will cost $15.00 per year. Three or more subscriptions at one area will be charged at $12.00. An order accompanied by payment will reveive an additional $1.00 discount.
“Among other benefits,” said David Rowan, publisher, “we believe this publication will help stimulate sales of new equipment by moving the used equipment more efficiently.” The first issue of KA Equipment News is scheduled for October.
Study released on Breckenridge skiers
“The Breckenridge Skier,” a research project based on 486 lift interviews at Breckenridge Ski Area last March, has been released, and is available for $10 per copy from the Business Research Division, University of Colorado, Boulder, Colo. 80302.
Prepared under the supervision of Chuck Goeldner, director, the 67-page study contains in-depth analysis and cross-tabulation of data, and has no less than 92 tables.
The general areas covered are: 1) the characteristics and demographics of the Breckenridge skier; 2) transportation characteristics; 3) accomodations; 4) ski vacations; 5) expenditures; and 6) ratings of the Breckenridge experience by respondents.
Computer ski communications to be tested theis winter
A prototype network of a computerized communication system between ski resorts and the public will be tested this winter in the Southern California area by Pacific Distribution Systems.
Utilizing CRT (cathode ray tube) units located in resorts and in ski shops or other ski related businesses, the system provides current information displays.
At the resort terminal an operator types, on a standard keyboard typewriter which is part of the CRT, such information as snow reports, weather, road conditions, ticket sales, activities, lodging availability etc. The information is fed into a central timesharing computer via a telephone line network where it is “on call” almost instantaneously by any viewing terminal located in a ski shop or any other place having the CRT unit.
The CRT viewing display is similar in concept to airline screens showing current arrival and departure schedules now in use at major airports.
The communication system, designated SKICOM by Pacific Data Systems, is being designed to replace present voice taped snow reporting systems which some mountain and ski shop operations use. Besides allowing ski resorts to provide instant snow reports, SKICOM will provide both resort and ski shops with unlimited potentials for data processing services particularly for advanced ticket sales.
More information on this timesharing computer, which could be used nation-wide in the future, and also information on the test system being conducted this year in the California area can be had by writing SKICOM, Pacific Distribution Systems, 10911 Reagan Street, Los Alamitos, Ca. 90720.
Forest Service publishes aerial tramway primer
Chuck Dwyer, chief cableway engineer for the Forest Service, has prepared a book entitled “Aerial Tramways, Ski Lifts and Tows—Description and Terminology.”
It is intended as “a primer on the subject of aerial passenger tramways for Forest Service personnel who are newly assigned to activities associated with these transport systems.” However, as Dwyer points out, it may be equally useful to area managers for their training programs, to state tramway authorities for indoctrinating their inspectors, to manufacturers conducting maintenance seminars and to others in the ski area industry.
Copies are available from the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402. Order by title as well as by stock number 0101-00400. Price is $1.80 in the U.S., $2.25 for Canadian and foreign orders. A quantity discount of 25 per cent is available for 100 or more copies mailed to a single address.
Ski information service started
A specialty information service to the ski industry was announced by Dan Matthews, coordinator of the ski area management program at Humber College in Ontario, Canada.
The service, the basic cost of which is $60 for a year’s subscription, is designed to keep the area managers current on what Matthews calls “the mountain of information” assembled over the last four years of research and collection.
According to Matthews, subscribers will get up-to-date supplier information, technical bulletins, technical reviews of industry-related books and reports and also the availability of industry data in many subject areas that have been assembled.
For more information, write Ski and Resort Management Information Service, 1444 Fisher Avenue, Burlington, Ont., Canada.
PEOPLE
Willy Schaeffler recovering “very satisfactorily” from major heart surgery, and returns to area consultancy. . .Bob Donner and Craig Smith promoted to co-managers of the lodge at Sugar Loaf Village, Cedar, Mich. . .Kenneth Johnson new manager at Chestnut Mt., Galena, Ill. Dave Arriola, formerly marketing director at Heavenly Valley, goes to same position at Crested Butte. . .Max Dercum, ski school director at Keystone since the area’s inception in 1969, has retired. His replacement is Rod Carnie, co-director for the past two years. . .Ray “Skeeter” Zoberski, most recently marketing director at Grand Targhee, is names v.p. and publicity director for the Professional Freestyle Association. . .At Park City, Utah, Stein Eriksen becomes ski school director, replacing Phil Jones, who was named mountain manager. . .Dean Anderson is named manager of planning and development at Utah’s Snowbird. . .Earl Hanson, formerly business manager for the U.S. Ski Team, becomes president of the Utah Ski Association. . .At Wyoming’s Grand Targhee resort, Roger G. Miller is new marketing manager, and Gene Palmer, the ski school director, is named mountain manager. . .Peter F. Kirkpatrick appointed NASTAR marketing director . . . Howard Liverman is new general manager of Goldmine, Cal.
SUPPLIER NEWS
Snow Systems to market Snow Fury
Snow Systems Engineering, of Toronto, Canada, has announced the signing of an agreement with RAB Engineering, also of Canada, to market the RAB Snow Fury “internal mix” snowmaking gun. Snow Systems also markets its own “external mix” Blizzard Maker snow gun.
Ken Nesbitt, president of Snow Systems, said, “The combination of these two types of guns offers a great deal of design flexibility” in planning complete systems for ski areas.
Accumatic to Reliable
Charlie Nebel, president of Accumatic Timing Labs, has announced the appointment of Reliable Racing Supplies, of 624 Glen St., Glens Falls, N.Y. 12801, as distributor of their dual timing system. The firm has been providing ski race timing systems since 1957.
Reliable Racing also distributes a variety of ski items, including “Easy Fencin’,” all sorts of racing supplies for both alpine and nordic events, and track-setting sleds.
The firm is headed by former ski racing star, Tom Jacobs.
SMI appoints Baker eastern distributor
Snow Machines Inc. announced that their new eastern distributor will be Matt Baker, of McAfee, N.J., previously with Great Gorge ski area.
Jim VanderKelen, president of SMI, said “SMI is pleased to have Matt on board. His extensive knowledge of all three snowmaking systems, his experience in operating 30 SMI units and his enthusiasm is available to eastern areas to help with any and all snowmaking problems and decisions.”
Baker added that, “with the cost of energy going out of sight, I welcome the opportunity to explain snowmaking technology and economics to ski areas.”
Savage resigns from Hall Ski-Lift
Phillip D. Savage, who joined Hall Ski-Lift Co. in 1962, resigned from the company on September 1. He had served as vice president and later as president, and had long been on the company’s board of directors.
The move was connected with the current level of new lift construction and the shift by Hall to diversification.
“Our business has changed from 100 per cent ski lifts to 50 per cent heavy duty handling equipment,” says Victor Hall. “We can no longer justify a ski lift sales manager, and Phil decided for personal reasons not to come full-time to our Watertown operations.”
Savage was the first president of Ski Area Suppliers Association, and is currently a director of that organization. He said he had no specific plans for the immediate future, but hopes he will stay connected in some way with the ski industry.
