Rutland Herald
After a several years’ legal battle, Powdr Corp., reached an agreement to sell Park City Mountain Resort to Vail Resorts for $182.5 million.
Powdr had been embroiled in a legal dispute over the resort’s leased land that threatened Powdr’s continued operation there.
Park City was the anchor resort of Powdr’s stable of ski areas. But Solimano said it will be business as usual at Killington and Pico this season.
“Killington Resort and Pico Mountain will not be affected by Powdr’s decision to sell Park City Mountain Resort to Vail Resorts,” Solimano, president and general manager of Killington Resort and Pico Mountain, said in a statement. “Rather, this positions Powdr, which owns and operates Killington and Pico, well for future growth and success.”
SP Land Co. is in the permitting process to build a ski village at the base of Killington.
Steve Selbo, president of SP Land, said the sale of Powdr’s Utah property won’t have a ripple effect on the village plans.
“We’re stuck in Act 250 right now,” Selbo said. “It (Park City) really hasn’t affected us one way or the other and I don’t think it will affect us in the future either.”
Parker Riehle of the Vermont Ski Areas Association said the end of the legal dispute and sale of the Utah resort should benefit Killington.
“We see nothing here that would affect the operations or ownership of Killington Resort,” said Riehle, the VSSA president. “In fact, the way I view it, this certainly moves Killington to the very forefront of Powdr’s ski areas and really makes them the preeminent resort in their portfolio and I see that as certainly a positive thing.”
John Cumming, Powdr’s owner, is selling Park City’s assets, including the base area, parking, lower ski terrain and lifts, water and snowmaking to Vail. The base parking lands have approved zoning for approximately 687,000 square feet of residential and commercial development.
“First and foremost, we are very pleased to bring a permanent end to this dispute and provide assurance to the guests and employees of PCMR, and to everyone in the Park City community, that they no longer have to worry about any disruption to the operation of the resort,” Rob Katz, chairman and chief executive officer of Vail Resorts, said in a statement. “This has been a difficult period for everyone involved, and I commend John Cumming and Powdr Corp. for helping to find a solution to this situation.”
Ski Area Management, an online magazine, quoted Cumming as saying, “Selling was the last thing we wanted to do, and while we believe the law around this issue should be changed, a protracted legal battle is not in line with our core value to be good stewards of the resort communities in which we operate.”
Vail, which already operates The Canyons, next door to Park City, intends to merge both resorts for the 2015-16 ski season, which would create the largest ski resort in the U.S., with 7,000 acres of skiable terrain.
Powdr found itself in trouble three years ago when it failed to renew its lease with Talisker Land Holdings on time. A Utah court ruled that Talisker could evict Powdr, raising the specter that the resort would not open this season. Just last week, Powdr agreed to post a $17.5 million bond, clearing the way for the resort to open while Powdr appealed the judge’s ruling.
The sale of Park City leaves Powdr with eight ski areas: Copper Mountain, Colo.; Killington, Pico, Vt.; Mount Bachelor, Ore.; Boreal, Nev.; Las Vegas Ski & Snowboard; Gorgoza Park, Utah; and Soda Springs, Calif.
Vail Resorts Inc. operates Vail, Beaver Creek, Breckenridge and Keystone in Colorado; Heavenly, Northstar and Kirkwood in the Lake Tahoe area of California and Nevada; Canyons in Park City, Utah; Afton Alps in Minnesota and Mount Brighton in Michigan; and the Grand Teton Lodge Co. in Jackson Hole, Wyoming. RockResorts, a subsidiary, manages luxury hotel properties. Vail Resorts Development Company is the real estate development and construction subsidiary.
Vail Resorts is publicly traded on the New York Stock Exchange (MTN). Vail closed Thursday at $85.75 a share, up $8.98.
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