Vail Gets Approval for $50M for PCMR Plan

Vail Resorts Receives Approvals for its $50 Million Capital Improvement Plan at Park City Mountain Resort

Creates largest ski resort in U.S. with upgraded lifts and restaurants
Most impactful capital program in history of U.S. ski industry

PARK CITY, Utah — Mar. 26, 2015 — Vail Resorts, Inc. (NYSE: MTN) announced that it received unanimous approval from the Park City Planning Commission to implement one of the most ambitious and impactful capital plans in the history of the U.S. ski industry for the 2015-16 season. The plan would establish the connection between Park City Mountain Resort and Canyons Resort, creating the largest single ski area in the country with more than 7,300 acres of skiable terrain, and complete a number of critical upgrades to the infrastructure of both resorts. Park City’s approvals follow approvals from Summit County, Utah’s Synderville Basin Planning Commission in February.

“This plan for Park City and Canyons will completely transform the experience at both resorts and throughout this world-class community,” said Bill Rock, Park City Mountain Resorts chief operating officer. “We want to thank the Planning Commissions and staffs at both Park City and Summit County, and all the community members who provided ideas and support throughout the approval process.”

Components of the $50-million capital plan include:

The Interconnect Gondola. An eight-passenger, high-speed two-way gondola from the base of the existing Silverlode Lift at Park City to the Flatiron Lift at Canyons. The gondola will also have an unload at the top of Pine Cone Ridge to allow skiers and riders the opportunity to ski into Thaynes Canyons at Park City via gated ski access or to the Iron Mountain area at Canyons through new trails that will be created from Pine Cone Ridge. This will mark the first gondola at Park City Mountain Resort since "The Gondola" was dismantled in 1997.

Upgrade of King Con and Motherlode Lifts at Park City. The King Con Lift will be upgraded from a four-person to a six-person, high-speed detachable chairlift and will increase lift capacity to this very popular ski pod. The Motherlode Lift will be upgraded from a fixed-grip triple to a four-person, high-speed detachable chairlift, also increasing lift capacity. Both upgrades will reduce crowding, lift lines and improve the guest experience.

New Snow Hut Restaurant, upgrades to Summit House Restaurant at Park City and expansion of Red Pine Lodge Restaurant at Canyons. The plan calls for building a completely new Snow Hut restaurant at the base of the Silverlode Lift and next to the Park City terminal for the Interconnect Gondola, with 500 indoor seats and a top-of-the-line kitchen and culinary experience. The plan also includes an upgrade to the "scramble" area inside the Summit House restaurant to improve the flow of diners and increase seats. At Canyons, the Red Pine Restaurant will be renovated to accommodate an additional 250 indoor seats. This upgrade follows the recent renovation and increase of 150 seats to the Cloud Dine restaurant at Canyons.

Snowmaking and other improvements. The plan features additional snowmaking on two trails in the Iron Mountain area of Canyons which will become increasingly central ski terrain given its proximity to the Interconnect Gondola. The plan also includes almost $5 million of "catch up" maintenance and upgrades at Park City, given the lack of spending at the resort over the past few years. This “catch up” maintenance spending is in addition to the normal annual maintenance capital for the two resorts of $5 million, which will be undertaken this year as well.

Like putting lipstick on a pig

just don't put thru the connection to LCC to keep the masses where they belong over in PC

Coach Z wrote

Like putting lipstick on a pig

just don't put thru the connection to LCC to keep the masses where they belong over in PC

I agree 100%...No need to go out west if your destination is PC...

The more I think about this over time, I get the odd feeling that the attorney or accountant who failed to send the lease renewal might have been "paid" to do it.    Wonder what his bank account or realestate listings look like today.   Maybe some of that 50M will slip into his pocket, or his brother's. ;)


Could be a good Sunday night movie..... PC lease attorney walks into his boss's office to ask for a raise....NO.  Scene #2  Our man is sitting in the bar crying over a beer.  The GM for Vail saddles up...."what's up"........

Harvey wrote

The gondola will also have an unload at the top of Pine Cone Ridge to allow skiers and riders the opportunity to ski into Thaynes Canyons at Park City via gated ski access or to the Iron Mountain area at Canyons through new trails that will be created from Pine Cone Ridge.

This piece is actually the best part of the the announcement. Can't say its worth $50 mil but that is some pretty sweet terrain that is now only accessible via a 30 minute hike from the top of Jupiter bowl (or similar hike from the canyons side).

I have been one of those who spoke poorly of PC in the past. Its still not my favorite place in Utah, but I did gain a new level of appreciation for it this year. I liked the canyons even better. 50 mil is a lot of money. So is $120 lift ticket.

Danzilla wrote

Harvey wrote

The gondola will also have an unload at the top of Pine Cone Ridge to allow skiers and riders the opportunity to ski into Thaynes Canyons at Park City via gated ski access or to the Iron Mountain area at Canyons through new trails that will be created from Pine Cone Ridge.

This piece is actually the best part of the the announcement. Can't say its worth $50 mil but that is some pretty sweet terrain that is now only accessible via a 30 minute hike from the top of Jupiter bowl (or similar hike from the canyons side).

I have been one of those who spoke poorly of PC in the past. Its still not my favorite place in Utah, but I did gain a new level of appreciation for it this year. I liked the canyons even better. 50 mil is a lot of money. So is $120 lift ticket.

I don't know. This high altitude lift arms race is enabling gaper nation to access some pretty dangerous terrain. A lot of people have died in the so called backcountry outside of the Canyons, and I'll bet they didn't have a clue. I've watched a parade of gapers, including little pizza wedging kids climb off of the Imperial bowl chair at Breck to some difficult stuff, including the Lake Chutes, which you had to spend 45 minutes hiking to ten years ago.
Not sure what the solution is, because I can't imagine how to stop Mr. And Mrs. Texas and Oklahoma after two or three beers from doing something stupid. I'm pretty sure that's a daily occurrence in some of their lives. I blame most of the ski porn most watch during après ski, too. Dangerous inspiration.

Benny Profane wrote

I don't know. This high altitude lift arms race is enabling gaper nation to access some pretty dangerous terrain. A lot of people have died in the so called backcountry outside of the Canyons, and I'll bet they didn't have a clue. I've watched a parade of gapers, including little pizza wedging kids climb off of the Imperial bowl chair at Breck to some difficult stuff, including the Lake Chutes, which you had to spend 45 minutes hiking to ten years ago.
Not sure what the solution is, because I can't imagine how to stop Mr. And Mrs. Texas and Oklahoma after two or three beers from doing something stupid. I'm pretty sure that's a daily occurrence in some of their lives. I blame most of the ski porn most watch during après ski, too. Dangerous inspiration.

The gate to the OB stuff at the Canyons says "You May Die". Not sure how much more notice you can give someone. That is uncontrolled back country terrain. This is in bounds, currently controlled terrain. I agree on people getting in over their heads but you can't fix stupid.

Pine Cone from War Zone - This view only shows the first couple runs indicated on the trail map below.


Pine Cone area on the current trail map:

is that like 700 vert?

I agree with the comments of Canyon's warning "you can die"     The problem is hyperbole. On the opposite side of a well known such gate is a very easy bowl with easy woods that will take you right back inbounds.    The location of the terrain and gate is such that it makes sense, it has to be exactly where it is.   A wrong turn and you can get into some very bad stuff.  However, take my kids (for example) who would be much like the Texas or OK, fellows previously spoken of.    Once they pass the gate that says they might die and then see how "easy" the terrain is---IN THAT ONE SPOT---they may venture further bolstered by their achievments into very bad situations.      

Canyons would do well by implenting a guided BC day.  Guide just shows clients skill level and routes, does not guarantee how well they ski or the conditions.   As noted, a $120 lift ticket paying dude would likely add 40- 80 bucks to take a tour, starting easy and getting harder.  As in some European ski clubs, you then get graded and move up the ranks so that you don't have to ski inbounds first to be tested etc.  Would likely help in court.....we offered this service and warn our customer's don't go alone and "you can die".  



Sadly, there is never an easy answer when it comes to owner, managed BC and permissions. Cite Slides conversation.     Even if a jury should not (by law) to give an award, there are still considerable defense costs for every suit, frivolous or not.    With the death of a rich gal/guy being worth millions, I never am surprised by the new ideas or issues brought.    $40 lift ticket bring low end,low budget (me)  suits.   $120 lift tickets bring "I got powerful attorney friends or family" suits.  Stereotype time:  The low end skiers who ride at $120/day resorts ski/board like we all want to ride some day.   Its the doctors, oilmen, lawyers and accountants who will fall, get hurt and sue.      

ml242 wrote

is that like 700 vert?

Yes. Same for most of the terrain off the jupiter and mckonkeys lifts at PC. Short and steep.

I:)skiing wrote

The more I think about this over time, I get the odd feeling that the attorney or accountant who failed to send the lease renewal might have been "paid" to do it.  

And the guy who owned Powdr Corp. just bought stake in Snowbird, and Deer Valley bought Solitude, and they're trying to get approval to run a lightrail from downtown SLC, up LCC, through the mountain into BCC, and through the mountain again into PC.

But I'm sure none of this is related.

"Ski City, USA."

I would think rail up LCC would be a good thing.  You guys have a huge pollution issue there which really would make me reconsider living there.  My allergies go berserk every time I go to SLC

What is the local take?

I:)skiing wrote

The more I think about this over time, I get the odd feeling that the attorney or accountant who failed to send the lease renewal might have been "paid" to do it.    Wonder what his bank account or realestate listings look like today.   Maybe some of that 50M will slip into his pocket, or his brother's. ;)


Could be a good Sunday night movie..... PC lease attorney walks into his boss's office to ask for a raise....NO.  Scene #2  Our man is sitting in the bar crying over a beer.  The GM for Vail saddles up...."what's up"........

He didn't get a cent.

He was the SVP/CFO who was fired April, 2008 (almost 3 years before the leases needed to be renewed) and left the leases in his desk. Nobody in upper management took responsibility for the leases (including the new CFO). The weekend they realized they had a problem in April, 2011, they called the fired CFO (over 3 years later) and he said to check my desk - which is where they found the leases. Nobody had even cleaned out his desk. There were rumors that the ex-CFO was fired because he would not manipulate the financial reports in a way to boost upper management bonuses. He was with Powder for almost 9 years.

The CFO that didn't know when his leases expire nor where they even were should have been fired on the spot

Wow, that's unbelievable. I hadn't heard that version of the story X.

I definitely see a Sunday night movie.    Even if it is fiction.
   
-------------------

CFO had no obligation to remind the company of the lease renewals.   All this is on the company who obviously ran their company poorly.    

However, how sweet would it be had the CFO proactively known about these dates and had a calendar on his fridge....each day that passed, he put an X through it with an evil laugh....

And no one has said what that CFO is doing right now, big house in the hills?   LOL.   Not saying he was wrong in any way.   Scene 3  Our fired CFO has waited 2.9 yrs and is now  sitting in a dimly lit bar, he mentions to an Exec at Vail......"hey, I have this calendar on my fridge, in 10 days I can tell you something that may make your head spin"   I have this off shore account in the Caymens....want to fly me down there for some R&R?    

I love it....sorry to steal the thread but it is just too rich.    

Coach Z wrote

The CFO that didn't know when his leases expire nor where they even were should have been fired on the spot

I meant the current CFO that dropped the ball.  He should have known when the leases expire and if he didn't have them should have put on a search for them

Coach Z wrote

I meant the current CFO that dropped the ball.  He should have known when the leases expire and if he didn't have them should have put on a search for them

You better believe it!  Especially if he was in the job for three years.  Does he still have his job?

Coach Z wrote

What is the local take?

My personal take:

This place already gets tracked out enough. We don't need anymore uphill capacity - whether that's up the canyon or up the mountain (they're planning on replacing wildcat with a high speed quad  )

don't PC LCC.

The 2008 announcement noting the  hiring Jennifer Botter as CFO of Powdr. She is not longer CFO.
http://www.skinet.com/skiing/financial-acumen/2008/07/powdr-corp-names-jennifer-botter-chief-financial-officer

I wrote this on May, 22, 2014:
"The notice to renew the lease was due on Mar 1, 2011, and the extension gave PCMR until Sat, April 30, 2011, to renew. On April 30, VP of Finance (Powdr) Elizabeth Paul  was renewing some credit with a lender. The lender knew about the renewal of the  lease and asked to see it. Paul had no idea about the renewal. The recently departed CFO, Jennifer Botter had no clue when she was called.  Jenni Smith, President of PCMR, had no clue. John Cumming had no clue. They called their lawyer, Cary Jones, (office in LA) and he looked for the document in LA and could not find it. He flew out to Park City on Sunday to try and figure out what to do. At some point somebody thinks to call former CFO Richard DesVaux (terminated in 2008!) and he tells them to check his desk. That is where the documents were found. It was rumored that he was canned for questioning the timing of some financial reports relating to bonuses. He later testified that he also had the dates on his Outlook calendar because of the importance of the lease renewal.

PCMR back dated the renewal letter they sent to Tallisker on May 3. Then the fun started.

PCMR still owns the base area. It would be almost impossible for Vail operate the skiing without access thru the base area. PCMR has threatened to remove the lifts on the leased land. What a mess."

http://forum.nyskiblog.com/Utah-court-hands-Park-City-Mountain-Resort-to-Vail-td4040672.html