R.I.P. Greek Peak

The beginning of the end:

SCHUMER: WITHOUT QUICK ACTION, CORTLAND'S 'GREEK PEAK' SKIING, SUMMER RESORT IN JEOPARDY - OVER 1,000 JOBS AT RISK; CALLS ON FDIC TO SPEED UP LOAN REVIEW THAT COULD KEEP THE PEAK OPEN AND EMPLOYEES ON THE JOB THIS UPCOMING SKI SEASON

In Personal Letter To FDIC Chairman Gruenberg, Schumer Calls on FDIC to Expedite Its Review of Greek Peak Loan Application and Leave No Stone Unturned - Without Loan Cortland Jobs Could Melt Away.  Last Winter's Lack of Snowfall Put Greek Peak in Financial Crunch - Resort Needs Loan to Keep Doors Open Until Winter.

Schumer: Greek Peak Needs Immediate Lift To Make It To Next Ski Season

On MONDAY, JULY 16th AT 11:00 AM, at the Greek Peak Mountain Resort in Cortland, U.S. Senator Charles E. Schumer will urge the Federal Deposit Insurance Corporation (FDIC) to expedite a loan review made by Greek Peak, the Central New York tourist destination, located in Cortland County. Greek Peak desperately needs the FDIC loan approval in order to ensure its over 1,000 employees can stay on the job this upcoming ski season. Greek Peak's current troubles mounted last winter, when the lack of snowfall led to a slow ski season. Then, earlier this year, Greek Peak's primary lender failed, and was taken into conservatorship by the FDIC.

Greek Peak is now seeking additional financing that would allow it to keep its doors open until next winter. As conservator, FDIC must approve any new loans, and is currently reviewing the company's financial condition. Schumer will request that the FDIC expedite its review and explore every viable option to keep the well-known Central New York ski lodge destination and resort open and allow it to prepare for the next ski season.  

Schumer will highlight the important role Greek Peak has played in Central New York and Cortland County. The regional ski and lodging resort employs over 1,000 people in the winter months and during the summer employs nearly 300 people. Schumer will discuss the thousands of people that flock to Greek Peak year-round and the important role it plays in the Cortland County economy, bringing in families from around Central New York during all four seasons.

Schumer will be joined by Cortland County Chamber of Commerce Executive Director, Bob Haight, the owners of Greek Peak and employees as he makes his case for the swift loan review.
 
DATE: Monday, July 16, 2012
TIME: 11:00AM
PLACE: Greek Peak Mountain Resort
            2177 Clute Rd Cortland, NY 13045

Friggin knew that GD  stoooopid hotel would take down my little ski hill...i'm real pissed about this

That would suck...good luck Camp.

If the marketing director did a better job last year to let people know there was good skiable snow, despite the weather/lack of natural snow, and maybe posted some pictures and daily updates on Facebook, they might have had more skier-visits last year. I think the management and marketing has fallen short. Hopefully they will find new people to run and market the ski area.

I don't think GP will close. Someone will run the place. It can make money, if it is managed better.

Powderqueen wrote

If the marketing director did a better job last year to let people know there was good skiable snow, despite the weather/lack of natural snow, and maybe posted some pictures and daily updates on Facebook, they might have had more skier-visits last year. I think the management and marketing has fallen short. Hopefully they will find new people to run and market the ski area.

I don't think GP will close. Someone will run the place. It can make money, if it is managed better.

100% agree, we had GOOD SNOW to ski on last year...Skier visits were down everywhere last year, you can't help that when people don't have snow in their yard. Top that with a multi-million dollar boat anchor and THERE IS YOUR PROBLEM. Not the snow like they want everyone to believe.

@ HPD...thanks for the well wishes. Not all to be lost tho, Labrador is only 10 miles away

Edit: and Lab doesn't have a stoooopi hotel either

This is disappointing, but it might be best if Greek Peak was bought by someone who actually cares about skiing.  Like PQ said, more promotion of the ski conditions should have been made.  I skied probably 3-5 days per week up there this past winter, and only on 2 of those days did it truly suck, with icy conditions.  The rest of the days were perfect, soft, spring-like conditions.  They are way too wrapped up in promoting that hotel and adventure center.  They should have concentrated on the foundation the place was built on:  skiing.  

Here's their plea on FB

https://www.facebook.com/GreekPeakMountainResort

PDQ I just learned that if you want to link to a specific post on FB you click on the TIME underneath that post:

http://www.facebook.com/photo.php?fbid=10150987597207900&set=a.170943697899.120092.165706732899&type=1

Here's the text:

On Monday, July 16 at 11am Senator Charles Schumer will hold a press conference in the lobby of Hope Lake Lodge & Indoor Waterpark at Greek Peak Mountain Resort. Schumer’s visit is aimed at urging the FDIC to make a decision soon regarding the loan approval process.

The decision is a critical step in helping the resort move forward into the 2012-2013 ski season. Schumer plans to highlight the important role Greek Peak has played in Central New York and Cortland County. The resort employs over 1,000 people and has a history of bringing families to the area for over 50 years.

I don't think GP will cease skiing operations.  Just my gut.

What a mess. What financial institution is going to take on this kind of re-financing loan.

So sad. If the worst happens and there is no skiing this winter at Greek, I wouldn't be to sure that seasons pass buyers would get a refund.

I would have to ski at Elk Mtn. in PA, the closest for me after Greek Peak.

snowmonkey wrote

   They are way too wrapped up in promoting that hotel and adventure center.  They should have concentrated on the foundation the place was built on:  skiing.

Amen sister.....But if there’s a special on some pimento loaf facial scrub you can bet your ass you’ll know about it

the only good thing to come out of that hotel was meeting Gorgonzola

other than that the only thing it has done is make my property taxes go up and they aren't even paying theirs!!!!!

Geezus i'm all jacked up

Sorry Camp , i wondered when that bad business decision and timing was going to come home to roost . Lab is a great hill tho IF the peak packs it in .

Hopefully GP finds a skiing oriented management team that is IN TUNE with reality .
Real estate Fantasy Land is not in CNY.  

warp daddy wrote

 
Hopefully GP finds a skiing oriented management team that is IN TUNE with reality .
 Real estate Fantasy Land is not in CNY.

Wouldn't that be nice. Like others have said their direction is all wrong....i think they need to check their compass

Never skied there... back in the day, I ran many trail races that went up the side of Virgil Mt a/k/a Greek Peak to link to the Finger Lakes Trail.  Beautiful area.

Here's hoping they find their loan.  If anyone knows their original rationale for building the hotel, I'd be curious to know.  It sounds like a parallel to the Adirondack Club and Reserve at Big Tupper.  Huge development on a smaller mountain.

There is no rationale for building what they did other than Al Krygers dream. I'll say this, the place sure is beautiful.

"If anyone knows their original rationale for building the hotel, I'd be curious to know."

From what I heard in the past: Al Kryger tried to get a big loan from that Tennessee bank (which was closed by the FDIC), for building an 18 hole golf course and big hotel/lodge. Executives from the bank decided they did not want to finance the golf course hotel/lodge... but told Greek Peak they would be willing to finance - An Indoor Waterpark/Hotel/lodge.

I'm here in CNY for the weekend and the local paper (the Post-Standard, aka the Sub-Standard) didn't even cover the story in today's edition.

What really chaps me is when this comes crashing down, and it will (no way the FDIC will approve any kind of loan for a biz of this size losing money), we the tax payers of Virgil will end up paying for this fiasco.

Why would the tax payers have to pick up the tab?  Probably better to let them go bankrupt.  Someone else will be able to pick it up  at auction for a lot less money.  How is getting a bigger loan going to help mid term?
Those employment numbers they are throwing around seem way out of line.  Way way out.

Jamesdeluxe wrote

I'm here in CNY for the weekend and the local paper (the Post-Standard, aka the Sub-Standard) didn't even cover the story in today's edition.

James, Greek Peak is not really in the Syracuse market. It was in our paper and the Binghamton paper. It's just not big news in Syracuse.

One of my friends who grew up skiing GP, formerly from Binghamton wrote:

This is nothing for Big Al.  If anything, he'll come out of this better than before.  And I'm totally serious here.
If he was in default of loan covenants, that would be a problem.  But this he can instead blame on the financial crisis and out-of-state banks.
Sure, no other bank would ever sensibly lend to him.  But why do you think the Governor has railed against NY's umpteen development corporations or districts (or whatever they are)?  Some quasi-governmental something-or-other is sure to float some easy $$ to one of Central NY's finest "job creators" -- Al already has a U.S. senator on his side, and spinning these "the end is nigh" stories to the press will create a sense of crisis that will help him even more.
Meanwhile, gotta love the irony of a "ski resort" that has $35 million in recent debt yet hasn't made a significant capital improvement to the actual "ski" part of the "resort" since . . . hmm, the 1977 triple chair!  (Granted he did replace the t-bars with a double chair, and he did replace all but the towers of the yellow chair, but he probably got all that for free.)

scary situation for sure as the deadline for someone to assume the loan is sometime in august i believe. i personally think that the hotel/park developments are good things and think the incremental approach al has taken over the last few years is a sound one. could the marketing and management be better? sure, but this project has been a huge undertaking and  i think they've done a pretty good job overall. i guess that's why i invested in this adventure as an owner 6 years ago. while personally i'd love to see more on hill improvements, thats not what brings in most of the families that are spending the the real money. my son will tell you all about when he cant drop $50 a day in the park and arcade with the other kids while were heating up our frozen lasagne . unfortunately the reality is that us "core skiers" account for little significant revenue at most areas with our discounted season tix and a few beers at the bars. 6 years ago after i signed on up there the initial financing fell through and delayed the hotel project but it eventually came through. i have no idea what happens when your lender defaults during a bad snow year but the fact is the hotel/park  has had decent occupancy rates and it's a great hill so i'm confident i'll be having a few runs and beers with camp and the a18 gang and yukkin it up on the shuttle with snowmonkey this season!

btw i really need to get up there soon for a few spins around shindagin and hammond hill!

"scary situation for sure as the deadline for someone to assume the loan is sometime in august i believe."

Not sure about a hard deadline by the FDIC for GP to obtain alternate refinancing. I remember originally reading, when this first came out back in Feb. 2012 that Greek was given "6 to 8 months" to find a new lender. 6 months would be sometime in August and 8 months would be in October... BUT I was in a local ski shop in Binghamton and they had heard that the FDIC had given Greek a full year to refinance - If there is any truth to that, the deadline would be in Feb. 2013.