Jay, Burke and EB-5

Holy crap - they need 7 to 11.5 Million just to cover the off season?  This is exactly what I warned about 3 years ago in my posts - that Jay was building a overhead monster that they would not be able to keep afloat in the off season.

Given that I take back what I said - I doubt Vail or anyone else will want to buy Jay.  This looks pretty bleak and they may not be able to operate going forward with that much overhead.

Harvey wrote

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

Many of those comments seem be contrary to what's in the declaration

Facebook post
The Jay Peak Tram may or may not need to be overhauled. Additional engineering review is slated. Funds exist for either result.

Declaration
Moreover, I have been informed that the gondola system, which is needed to transport skiers to the top of the Jay Peak mountain, requires major and immediate repairs to meet the State of Vermont's safety standards. The system is 52 years old

facebook
 Funds have been secured to operate the resorts as normal

Declaration
My assessment of the ski resort operations after examining the financial records
available to me and meeting with former CFO George Gulisano and the accountants and
management company I retained to examine and manage Jay Peak, is that the ski resort
operations are currently losing money and in danger of not having sufficient funds to continue
operating beyond the very immediate future
Because we are entering the slow season, we expect very little in the way of cash from ongoing guests. By way of example, there were only seven rooms occupied at the Jay Peak Hotel when I was there on April 14, 2016

So operating as normal losing money

Facebook
Local contractors awaiting payment are likely to be compensated prior to investors, but that is pending court approval

So they may get paid

Coach Z wrote

Holy crap - they need 7 to 11.5 Million just to cover the off season?  This is exactly what I warned about 3 years ago in my posts - that Jay was building a overhead monster that they would not be able to keep afloat in the off season.

Given that I take back what I said - I doubt Vail or anyone else will want to buy Jay.  This looks pretty bleak and they may not be able to operate going forward with that much overhead.

Goldberg said they needed to state though to keep the money out of Quiros's embezzling pockets. Although that number sounds large, I am sure there will be income during this time to offset whatever they need as well. Hopefully 10mil takes them through when skiers start showing up again though. If you're right and I'm wrong there won't be a buyer for Jay.

And I'm never wrong.

An interesting opinion:

http://www.skitheeast.net/zanders-take-biased-for-bill-eb5000/

Harvey wrote

An interesting opinion:

http://www.skitheeast.net/zanders-take-biased-for-bill-eb5000/

I can't get behind that opinion at all. It is basically taking the opinion that the ends justified the means (i.e. a huge build up and new "toys" for Jay and Burke along with massive economic growth is acceptable even if people were defrauded and businesses aren't getting paid for many honest days worth of work on active projects). Did Bill go into this intending for this to happen? No way, I don't question the guy's heart or his motives. And I am sure his partner was more active in fraud aspect of this. But at some point, Bill had to have known and didn't take action. I can get behind not lynching the guy before we get more details. But I think discussing the issue and the possibilities is open game. And quite frankly, it doesn't look good regardless of how strong Bill's heart is and the great reasons he started the projects. Bad things have happened and he was at the top when they happened. No one feels bad for billionaire bankers who screwed up with other people's money. I get it, Bill was doing all this to help the region economically (I am sure personal gain was part of the reason too). But the buck has to stop somewhere. Looking forward to hearing Bill's side of the story but he doesn't get a pass just because his heart was in the right place and the region benefited economically.

Yeah, that whole article is a farce. Who wrote it his mom?

This statement is ridiculous. They're stating since there was no gov't oversight they shouldn't be held accountable.......laughable

"Being held liable for the fact that government has no idea what is going on within their own program, retroactively, is stupid"

https://vtdigger.org/2016/04/27/goldberg-obtains-funds-to-keep-jay-peak-going/


Jay Peak Resort has enough money to operate through the off-season, according to Michael Goldberg.

“I can guarantee we have enough money to fund the operations, to pay the employees,” Goldberg told reporters at a press conference with state officials on Wednesday. He also said Burke Mountain has a potential buyer. Both ski areas are in federal receivership

Goldberg told the court that “overall the hotel is profitable,” but Jay Peak has had a tough time staying on top of costs for day-to-day costs, the ski area owes hundreds of vendors, the gondola system needs to be repaired and a sewage treatment system was never built.

Profitable because it doesn't pay for the shit it uses? No mention of paying contractors and vendors

What I sense is that Bill was/is really well liked and people are having a hard time wrapping their heads around this.  "How could he do that? I don't believe it."

skimore wrote

 

Profitable because it doesn't pay for the shit it uses? No mention of paying contractors and vendors

Isn't that great that corporate America can get away with this shit......what if you and I tried that. Hell I'd have a lot more money if I didn't pay my bills.

What is happening with the sewage if the treatment system wasn't built?

Hey one of the worse business fraud dudes is about to get nominated by the GOP - OrangeTopTinyHands!

they should scrap the tram and turn the summit into skin access, and for the high rollers snowcat access for a fee

The Zander guy is a joke.  The govt oversight was lax but that is not an excuse for committing massive fraud.  It's like saying no one was watching so it's ok to steal something.  Q has a shady past and Bill should have clearly known that Q was up to no good.  Either Bill was in on it or he had an obligation to say something to stop it.

I totally disagree that Jay and Burke got new toys and are better off.  There was not one improvement to either ski area itself.  Hotels don't count.  The first 100 rooms were a benefit to Jay.  After that all those beds and infrastructure just adds costs in the off season they have no way to cover.

I cant wait to go to the kingdom this year, get drunk at the tiki bar and scream FQ!  

ScottyJack wrote

I cant wait to go to the kingdom this year, get drunk at the tiki bar and scream FQ!  

Be careful...you know you can't handle more than 2 beers!

skimore wrote

Yeah, that whole article is a farce. Who wrote it his mom?

hahahahahhahahahahahahahahahha

Just wait it will come out - the Q guy has organized crime ties and was threatening to Kill Bill if he opened his mouth.  

Harvey wrote

What I sense is that Bill was/is really well liked and people are having a hard time wrapping their heads around this.  "How could he do that? I don't believe it."

I am not a Jay person, hate to admit it but never been there but I know people who have been Jay birds for a long time and they love Bill, apparently he is the real deal - at least this is what my contacts say. He may have been sucked in but his heart is in the right place. I don't have first hand knowledge but I put faith in the people I know and they still support Bill.

So where does that leave us. Well, a lot of the infrastructure put in will probably go by the wayside, sold at pennies on the dollar. Fall in disrepair over time. Real estate will drop like a stone, about a year or two (maybe three) will be a god time to buy. But Jay is an anomaly in the NE, lots of natural snow and a great mountain. It will survive but probably go back to it's former self.  

PeeTex wrote

Well, a lot of the infrastructure put in will probably go by the wayside, sold at pennies on the dollar. Fall in disrepair over time. Real estate will drop like a stone, about a year or two (maybe three) will be a god time to buy. But Jay is an anomaly in the NE, lots of natural snow and a great mountain. It will survive but probably go back to it's former self.

Sold at pennies on the dollar would mean more money leftover from some deep-pocketed chain to maintain more than adaquetely.

Between you, Coach, and Sno it's like the golden triangle of Gloom, Doom, and Groom sometimes.