THE SNOW INDUSTRY LETTER
July 17, 2012 Vol. 34, No. 29
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FRIENDS OFJUNEMOUNTAIN TAKE MAMMOTH CEO TO TASK
At a meeting last Tuesday night called to discuss the fate of JuneMountain, CA, the CEO of parent Mammoth Mountain Ski Area, Rusty Gregory, may as well have been wearing a bullseye on his back, according to the Mammoth Times. Mammoth’s decision to close June for the summer and next season has rallied residents and faithful JuneMountain regulars who are calling upon Gregory to find a way to keep the mountain open.
About three hundred JuneMountain residents and friends poured into the JuneLakeCommunity Center to protest the proposed closing of JuneMountain Ski Area. Everyone from schoolchildren to former—and first—JuneMountain manager Bud Hayward took the microphone.The schoolchildren, who have been holding lemonade sales to help June stay open, gave Gregory about $150 toward the cause. Hayward invoked the name of Mammoth’s iconic founder. “I know Dave McCoy and I know Dave McCoy would not be doing this today,” he said.
When Gregory spoke, he said, “I’m here to stand before you and take full responsibility for my actions and I am sorry I was not here to face you the day it was announced.” He said the reason he made the decision to close JuneMountain in the first place, and the reason why it was so abrupt, was due to intense pressure from MMSA’s banks and lenders.
An important aspect of the meeting was that it was the first opportunity for Gregory to get in front of the community and allow them to “express their feelings to me,” Gregory told TSIL. “I really heard the pain and anguish the community is going through.”
But he also took the community to task. “My question is, what the hell is [your vision] for JuneMountain? We need a clearly defined future.” For the ski area to open again this year, he said, there needs to be a way to “break even” this year—and there needs to be a clear vision for the future.
That didn’t sit well. Many community members, including JuneLake’s County Supervisor Vikki Bauer, said the community had worked for the past six years on a vision and that it was ready to go.
Gregory said that for JuneMountain to be successful, he believes two main things are needed - year-round air service and adding another 1,000 beds to the JuneLake bed base, or “at least the option that they could be added in the future.” He said the break-even issue could be solved with between $1 million and $2 million - the current annual losses at June.
He told TSIL the chances that June will open next winter are “very unlikely,” although “you never say never.” He said he had been in meetings with community leaders to talk about a viable plan for June, and that they have made “a good start.” At this point, part of that plan is figuring out how to mothball June so that it is in condition to reopen when the time comes – and Gregory seems confident that the time will come.
There are other issues as well. If June is shut down, it will be in violation of a U.S. Forest Service special permit. Gregory said they are working with the USFS and the community on a sustainable plan to make money. June has lost money for 26 years, he said, and they need to do something different. Ultimately, he said, they need to attract more visitors.
In any case, he would like to get the bullseye off his back. “It would be nice to be a little more popular around here,” he said.
NEW YORK’S GREEKPEAK FACING UNCERTAIN FINANCIAL FUTURE
Financial woes have cast doubt on a 2012-13 ski and snowboard season at central New YorkState’s GreekPeak, according to published reports. An emergency $200,000 loan from the Federal Deposit Insurance Corp. is keeping the resort open, at least for the present. But without another $1.6 million, the upcoming ski season could melt away.
Facing a staggering $35 million debt to a failed Tennessee bank following construction of an indoor water park and other amenities including the resort’s Hope Lake Lodge, GreekPeak's owners are struggling to secure additional loans.
U.S. Senator Charles “Chuck” Schumer (D-NY) held a press conference at the resort Monday, urging the FDIC to expedite its review of GreekPeak’s $1.6 million loan request to the agency.
Greek Peak President Al Kryger agreed the financing is critical, but so is the time factor. Regardless of the FDIC’s decision, Kryger was optimistic the resort will not interrupt its operations. “We’ve looked at what we’d have to do,” he said. “If they force us into bankruptcy, the season passes will still be honored and so will our school Learn-to-Ski program presales.”
GreekPeak employs nearly 300 people in the summer months and more than 1,000 during the winter. Read more at
STRUGGLING UTAH RESORT PLANS TO BE OPEN NEXT SEASON
The new owners of Eagle Point, Utah's most remote ski area, said they will open for a third winter despite the challenges of drawing skiers hundreds of miles from Las Vegas and Salt Lake City, according to published reports.
Eagle Point - formerly Elk Meadows/Mount Holly - was closed for eight years before the managers of a New York-based hedge fund took it over in 2010. Chief executive and co-owner Shane Gadbow said he's spent millions of dollars to upgrade the ski area and lodge - despite scant business.
The resort, which is three and a half hours from Salt Lake City, is offering free skiing and riding to any California resident for the entire 2012/2013 season. In addition, any guest can ski free every Thursday in January.
SKI AREA DEVELOPMENT THREATENS MONTANA RESEARCH AREA
A 900-acre research natural area in Montana that studies the alpine larch has been the focus of controversy over the proposed LoloPeak ski area, according to published reports. To gain access to the best skiing off LoloPeak from his property, BitterrootValley rancher Tom Maclay wants to build a tram through the heart of the research area.
There is no place in the country where the cold-hardy tree grows better than on top of the Bitterroot mountain ridge that leads to LoloPeak. As far as anyone can tell, the Carlton Ridge Research Natural Area is one of a kind in the United States. There have been at least 15 scientific studies that produced publications since 1963 that used information gathered at Carlton Ridge. The latest was completed in 2011.
Maclay’s supporters have suggested the research area could simply be moved to another area where alpine larch is present. Retired Forest Service researchers Steve Arno and Clint Carlson say that’s not possible.
"In the past, I don’t believe we’ve done a very good job of explaining what’s at stake,” Arno said. “We talked about the area’s beauty and the interesting hybrids that are found there. We haven’t really stressed the importance to science.”
SUMMER VISITORS FLOCKING TO WESTERN MOUNTAIN DESTINATIONS
Momentum for vacations at mountain destinations throughout the western U.S. has continued to show increasing strength in both occupancy and daily rate, according to the latest data released by the Mountain Travel Research Program.
The average on-the-books occupancy for the month of June among participating mountain destinations was up 17% compared to the same month last year while the average daily rate climbed 3.9% for the month. “It appears that record-breaking heat across most of the country is providing additional incentive for people to head to the cooler temperatures in mountain resorts and that activity is serving to offset the negative impact of early season wildfires, particularly in Colorado,” said Ralf Garrison, director of MTRiP.
The monthly report also tracks the upcoming six months and as of June 30, the remainder of the summer and fall look equally promising with July up 9.65% compared to last July. For the six-month period (July-December), year-over-year occupancy is up 10.6% compared to the same time last year. Gains are being reported in four of the six months (July-October). November and December are currently both down compared to last year at this time.
The report also monitors economic indicators and provides analysis on their potential impact on participating mountain destinations. “While there continues to be a lot of fluctuation in the various economic indicators that we track as part of our monthly analysis, it is pretty clear that the lower level of consumer confidence isn’t having a negative impact on the mountain lodging community so far,” said Tom Foley, operations director for MTRiP.
PENNSYLVANIARESORTBUILDING REPLACEMENT LODGE AFTER FIRE
A southwestern Pennsylvania resort has broken ground on a new, larger ski lodge to replace one destroyed in a February fire, according to published reports. Officials at Nemacolin Woodlands Resort say the new Sundial Ski Lodge at MysticMountain will be 6,000 square feet larger than the lodge that burned on Feb. 12. A December opening is planned.
The new lodge will include bowling alleys, arcade games and a larger restaurant. The ski lodge is but a small part of the sprawling 2,000-acre resort in FayetteCounty, about 40 miles south of Pittsburgh. The resort includes two golf courses, two five-star hotels, condos, townhouses, dining and a private airstrip.
SOCHI WINTER OLYMPIANS WILL WEAR ‘MADE IN USA’ UNIFORMS
The brouhaha over Ralph Lauren’s made in China uniforms for the U.S. Summer Olympic teams has led to plenty of public outrage and political gesturing. It has also prompted a promise from the company regarding the 2014 Winter Games.
Ralph Lauren said in a press release that it was "honored to continue our longstanding relationship with the United States Olympic Committee in the 2014 Olympic Games by serving as an Official Outfitter of the US Olympic and Paralympic teams. … We have committed to producing the Opening and Closing ceremony Team USA uniforms in the United States that will be worn for the 2014 Olympic Games."
In a separate prepared statement, the U.S. Olympic Committee said: "We take seriously the concerns we've heard from members of Congress and the American public regarding the U.S. Olympic Team's Opening and Closing Ceremonies uniforms." However, the uniforms are already being distributed to the athletes, and it's too late for a change to be made for the London events, the USOC said.
"We are absolutely committed, however, to working with our sponsors to ensure that the concerns voiced are addressed," the statement continued. "To that end, Ralph Lauren has agreed to domestically manufacture Team USA's apparel for Opening and Closing Ceremonies for the 2014 Olympic Winter Games."
Just out of curiosity, how much of the clothing you own is made in the U.S?
PSIA/AASI CONFERENCE FOCUSES ON CERTIFICATION STANDARDS
The Professional Ski Instructors of America/American Association of Snowboard Instructors announced it is hosting a fall conference to focus on its national certification standards. The conference takes place October 25–28, 2012, at Copper Mountain, CO.
The primary objective, said PSIA-AASI Professional Development Manager Earl Saline, is to establish a consistent interpretation of the national certification standards across the association. Representatives from each division will participate in training sessions led by PSIA-AASI Team members and other experts. Activities will include on-snow skiing and riding along with indoor work and training sessions.
For more information and details, e-mail the PSIA-AASI Professional Development Department .
CANADIAN PENSION PLAN ACQUIRES MAJORITY STAKE IN HELLY HANSEN
The Ontario Teachers’ Pension Plan has agreed to a acquire a majority ownership stake in Helly Hansen Group AS through its private equity division, Teachers’ Private Capital, according to published reports. While terms of the transaction are not being disclosed, Teachers’ is to acquire approximately 75% of Helly Hansen from Altor Fund II, which is to retain a 25% equity stake in the company.
Reports that Altor was shopping the company emerged in December. Sources had speculated that several retailers, as well as VF Corp., Jarden Corp., PPR and Columbia Sportswear might submit bids. In late January, press reports speculated potential suitors included private equity firms.
Headquartered in Oslo with approximately 500 employees, Helly Hansen had revenues of NOK 1,576 million ($211 million) in 2011. Teachers', the largest single-profession pension plan in Canada, had $117.1 billion in assets as of December 31, 2011.
PEOPLE, PEOPLE
Longtime U.S. Ski and Snowboard board memberWhiting Russell "Whitey" Willauer, 81, died Friday, July 13. He was president of the USSA from 1982-87, then served on the U.S. Olympic Committee board from 1987-94, and was also actively engaged in the International Ski Federation (FIS). At the 1980 Olympics in Lake Placid, he served as assistant chief alpine steward. He was Chef de Mission at the 1990 Winter Pan American Games in Las Lenas, Argentina, assistant Chef de Mission at the 1992 Albertville Olympic Winter Games and Chef de Mission at the 1994 Paralympic Winter Games in Lillehammer. The USSA awarded Willauer its highest volunteer honor, the Julius Blegen Award, in 1988. Ten years later he was honored with the Bud and Mary Little Award for his lifetime of service to both the USOC and FIS. Services have been scheduled for 11 a.m. at St Paul's Episcopal Church in Nantucket on Friday, July 20 with a reception to follow at the Nantucket Yacht club. The burial will be private. …The Pacific Northwest Ski Areas Association Board of Directors announced the selection ofJohn Giffordas its new president. Gifford will assume his duties on August 15. Gifford spent the last 14 years at Stevens Pass Mountain Resort, serving as general manager for the past 10 years. …The U.S. Ski and Snowboard Association namedLester Kelleras regional alpine development director. …Jodie Silvawas named vice president of marketing and sales for Winter Park Resort, CO…TransWorldSNOWboarding announced thatJohn Poulinis the new associate editor. …Chris Saylorhas been promoted to the position of Ski + RideSchool director at Okemo Mountain Resort, VT. …Karl Kapuscinski, President and CEO of Mountain High Resort, CA, and Stevens Pass Mountain Resort, WA, announced new management structure for the two companies.Michele Royhas assumed the role of chief financial officer and senior vice president for the two areas.Paul Bauerhas taken the position of chief operating officer overseeing all operations and environmental affairs at both Mountain High and Stevens Pass.John McCollyhas been named chief marketing officer and will oversee the sales, marketing, and business development for the two companies.Bill Bourton, who had been serving as interim general manager, has been officially named general manager of Stevens Pass Mountain Resort.Chris Danforthhas accepted the position of vice president of sales & marketing at StevensPass, whereJoel Martinezis the newly appointed VP of operations;Sarah Larsonis VP of resort services andMatt Troskeywas named VP of human resources. At Mountain High,Ben Smithhas moved up from vice president of resort operations to general manager andRobert Chaconhas taken on the role of VP of mountain operations. …Polartec announced Monday that its president and CEOAndrew Vecchioneplans to step down and hinted the business will go up for sale. ...SnowboardersJamie AndersonandShaun Whitetook home ESPYs for Best Action Sports Athletes at last week'saward ceremony in Los Angeles.
This week’s Facebook links include Kim Kircher’s blog post on “Getting Out Alive,” a somewhat related article from the New York Times on how climate change is making avalanche prediction more difficult, ESPN’s take on renewal energy at ski resorts, and the unlikely alliance between mountain bikers and snowmobilers fighting a Tahoe wilderness expansion. Read them at You can also follow us on Twitter @TSILeditor.