Rutland Herald
By
Bruce EdwardsSTAFF WRITER
| September 12,2014
KILLINGTON — The sale of Park City Mountain
Resort by the parent company of Killington and Pico will not place the
two Vermont resorts on shaky financial ground, Mike Solimano, the
company’s Vermont president, said Thursday.
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.