Jay, Burke and EB-5

Adk Jeff wrote

Although Vail could be a game changer for Burke, Burke would not be a game changer for Vail.  Jay, on the other hand, could be a game changer for Vail.

Nailed it, Jeff.

The market is so vast in the north, that I don't think Tremblant has to worry at all about cannibalizing their market. Although I do believe that Jay is an iconic enough mountain to warrant Vail showing interest in a first EC acquisition. It would also make sense because there is overlap in the demographic that goes to Jay with the people who take trips out west.

Usually mountains in distress with little leverage go for pennies on the dollar, but if a bidding war opens up it could help out the old management a bit. Hard to see Jay not opening next year. Burke may simply not be a viable ski-resort, I would not be surprised to see Vail Resorts spin it off to Burke Mountain Academy for a dollar if they ended up with it.

As usual, who ends up with it will depend on price, and in this case what the state may wish to see happen for the investors that lent funds.

It may be all for the better and someone like Vail with deep pockets will buy the place, bulldoze all the glades, put in mega snowmaking and a bunch of high capacity lifts

skimore wrote

It may be all for the better and someone like Vail with deep pockets will buy the place, bulldoze all the glades, put in mega snowmaking and a bunch of high capacity lifts

This will please the all knowing Snoloco.

skimore wrote

http://digital.vpr.net/post/documents-show-feds-were-quiros-long-state-launched-probe

Great article, Skimore. Q is totally unglued and this keeps getting stranger and stranger. But, as HST said: "when the going gets weird, the weird turn pro."

That last quote in previous article by Q seems like some other heads could roll

Gov't incompetence at its best

http://www.wcax.com/story/31766397/lawmakers-question-administration-after-alleged-fraud-in-nek

Moulton says the state stopped charging the Jay Peak and Q Burke developers a recurring monthly fee six to nine months ago out of concern they would use misappropriated funds to pay.

Concerns did lead state authorities to suspend the developers fundraising at one point, but allowed those activities to resume once they could guarantee the cash would be spent on legitimate business expenses.

Don't know if this has been referenced already, haven't had time to go through all the posts on this. But Fortune magazine had an article titled, " The dark disturbing world of the Visa for sale Program". in it's 7/24/14 edition. It is a good read and interestingly they have a link to an article labeled "Five by EB-5" which they were touting as success full EB-5 projects.  The very first one is on Jay Peak shown as a "Signature EB-5 Success".  

http://vtdigger.org/2016/04/20/senior-accountant-stenger-told-him-new-investors-would-fund-prior-projects/

former senior accountant at Jay Peak Resort told the SEC that he became aware in 2010 that the resort developers commingled and misused investor funds.

I just keep seeing the old jay hotel and no crowds....  Belfry on the way home.  the good old Jay.  

ScottyJack wrote

I just keep seeing the old jay hotel and no crowds....  Belfry on the way home.  the good old Jay.

I miss that Jay.  It rocked!  

We went there every year from about 2002-2007 as our daughter went to school and lived in Plattsburgh. Haven't been since the "improvements" were added. I think we'd miss the "Old Jay" also!

Wow.

http://www.burlingtonfreepress.com/story/news/2016/04/25/jay-peak-could-close-q-burke-may-never-open/83501858/

I would not be surprised to see the hotel at Burke become Burke Mt Academy's new digs and the ski area become a racing only affair.

They have such a small market I don't see how that hotel can be supported and it will be a big boat anchor around any attempt to profitably operate the ski area.  

Jay will separately be purchased by Vail, Powdr or Intrawest

Better reporting here.

http://www.tetongravity.com/story/news/jay-peak-will-not-close-and-other-updates-about-the-alleged-vt-ponzi-scheme

Some mud being splashed on the Bern in that article

Seems to me that the Burlington Free Press may be a better source than Teton.  Operating funds are going to be tough to get in the present circumstances.

I would not buy a season pass uniting you know who is going to own and operate the ski area next yr as the new owners will not be assuming the liabilities of the current crooks.

Coach Z wrote

Seems to me that the Burlington Free Press may be a better source than Teton.  

LOL. That is why they walked back and changed the click bait headline.

Yes this:

raisingarizona wrote

http://www.burlingtonfreepress.com/story/news/2016/04/25/jay-peak-could-close-q-burke-may-never-open/83501858/

...became this:

"Court-appointed manager scrambles to save ski resorts"

That's the funny thing about publishing, the link will rat you out. Noone wants to change urls because it's work.

The Q has been removed from Burke.

No More Q

http://www.wptz.com/news/expenses-could-force-jay-peak-to-close-receiver-says/39208846

Receiver Michael Goldberg said if more money is not obtained, he could be forced to shut down operations at Jay and eliminate any possibility of Q Burke opening, according to court paperwork filed in Miami.

"Moreover, as of the date of this filing, there may be no investor funds available to satisfy the outstanding contract lien, obtain a Certificate of Occupancy and open the finished hotel that is a part of the Q Burke Entities. Nor are there funds available to cover the day-to-day operating expenses of the property," court papers said.

Looks bleak

https://www.scribd.com/doc/310514981/Michael-Goldberg-Declaration


7. The combination of the account and financial statements paint a very bleak financial picture. The Receivership entities have very little cash, and numerous upcoming

expenses that will quickly use up available cash and, if additional money is not obtained, force

the Receiver to shut down operations at Jay Peak and eliminate any possibility of Q Burke

opening. This is a very different situation than the one claimed by Arid

l Quiros in his sworn

investigative testimony before the SEC

12.

Furthermore, I learned that due to reduced revenues during the 2015-16 winter ski

season because of warm weather and little snow, the Jay Peak Resort did not generate as much

cash as last year, and not nearly enough to meet its expenses for the upcoming off season. I

believe that Quiros was aware of this — in fact the Jay Peak Resort had been attempting to obtain

a line of credit or bridge loan of at least 4 million with the same bank so Jay Peak would have sufficient cash flow to finance operations through the upcoming off season. Under the terms of that proposed agreement (which was not executed before the Court appointed me as Receiver),

the assets of Jay Peak would secure it. I have been informed by the Resort managers that the

Resort needs between 7 million and 11.5 million to finance its operations and be kept open through the current off season.

https://www.facebook.com/wintrymixcast/posts/990737131003701