Teton Pass won’t open this winter without a buyer
By Melody Martinsen, Acantha editor
Teton County Development Corp. officials are working with the owners of the Teton Pass Ski Area to try to find someone to purchase or take over operation of the ski hill west of Choteau.
Meeting at the Choteau City Office on Sept. 3, TCDC listened to two ski area owners, Dan Naylor and Stoney Burk, and Rocky Mountain District Ranger Mike Munoz who outlined the issues and the concerns.
Teton Pass, located near the West Fork of the Teton River on a lease through the Lewis and Clark National Forest, is owned by Naylor, Burk, Bob McCarthy and Ron Collyer, all of Choteau.
The present owners — all of whom have other full-time jobs or interests — want to sell the business for the outstanding debt and closing costs and to move on.
TCDC is trying to help with that process in hopes of getting new owners on board before the coming ski season — otherwise the ski hill probably will not open for the 2009-10 season.
In addition to the meeting here last week, ski hill representatives will also take their plight to a meeting of the Pondera Port Authority in Conrad, and TCDC board member Corlene Martin will request assistance from the Sweetgrass Development Corp. and the Great Falls Regional Development Authority.
Naylor said his group has operated the ski hill for 10 years and has invested heavily, replacing most of the equipment, updating the lift, rebuilding the draw works and paying $50,000 for the development of an expansion plan.
The ski area is burdened by long-term debt in the form of a loan through Citizens State Bank. The remaining balance is $220,000 at 7.5 percent interest. In good years, Naylor said, the owners made principle and interest payments and in bad years just interest payments.
Without the debt, he said, the ski area pretty much pays for itself, generating between $120,000 and $160,000 a season.
This year, the owners decided they no longer have the energy to continue to run the hill. Naylor said they will do all the preparatory work so that it could open this winter, but if no one buys it, they plan to shut it down. He also said they would be willing to train new owners.
“Without anyone helping us, we will not open the hill this year,” he said.
He noted that the hill employed 20 seasonal workers each winter and averaged 100 skier visits a day. The typical operating season — weather (snow-depth) permitting is from late November to April 15. The facility’s 20-year lease with the Forest Service ends in 2024 — if the facility stays open. If it does not, it could lose the lease within five years.
Burk said, “If the community is not interested, then we’re going to have to liquidate. It’s just that simple.”
TCDC President Lyle Hodgskiss complimented the investments the group has put into the hill and said he hopes they find a buyer. “There’s been a fair amount of money spent on improving the property and the business over the 10 years,” he said.
The debt, relative to the lift and the assets, is just a fraction of the money that has been invested over the years. “It would really be a shame for that to go by the wayside. Once it’s gone, it’s gone, you’ll never get it back up there,” he said.
Munoz said the ski area has been in operation for most years since its inception in 1969. The area encompasses 407 acres and has a current expansion plan.
“We would like to see this 39-year legacy continue into the future,” Munoz said. “We stand ready to work with the current owners and any qualified buyers to help facilitate the continuing operation of the area.”
He said the annual fee for the lease is 1.5 percent of the ski area’s adjusted gross revenue. When there is no revenue, he said, the charge is $2 per acre or about $814 a year.
He said the Forest Service has no “hard and fast” rules on how long the lease would remain in effect if the ski area closed. If the ski area owners keep the lift in good condition so that it is usable, the ski area could sit in non-use status indefinitely. On the other hand, if the lift were to become unusable, the lease would likely be terminated. The decision to terminate the lease would be made by U.S. Forest Supervisor “Spike” Thompson.
He also noted that if the area is not sold, then the owners would have to remove all physical improvements from National Forest Land. If that happens, he said, the chances of another ski area ever going in are slim since new ski area development is hyper expensive.
TCDC board member Paul Wick suggested the ski area explore whether a member-owned cooperative company would be a possibility. Martin said Sweetgrass could offer assistance in that research.
Burk emphasized that the group just wants to pay off the debt and see new owners for the hill. The group does not want to have to liquidate the ski area.
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Teton Pass won’t open this winter without a buyer
Started by Peter, Sep 09 2009 03:21 PM
8 replies to this topic
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Posted 21 October 2009 - 09:58 AM
Update on Teton Pass
OCT 14 2009
Teton Pass Ski Area Seeks New Owners
By MICHAEL BABCOCK (Great Falls Tribune)
Teton Pass Ski Area west of Choteau will not open this year unless somebody buys the 114-acre recreational facility.
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"It is not going to open with the current ownership," said Dan Naylor, one of five Choteau businessmen who own the area. "We are going to have it ready to open it if someone wants to step in and buy it from us."
Teton Pass is a small day-use area on the Rocky Mountain Front that has 26 runs and two chairlifts. The area includes a day lodge, restaurant, ski school and rental shop. It also includes a three-phase development plan previously approved by the U.S. Forest Service, under which the owners could expand the intermediate and expert terrain.
The area is listed with Bucks Inc., a Choteau-based real estate business, for $279,000.
Jim Bouma at Bucks Inc. confirmed the price Tuesday.
"That would buy it," he said. "There definitely are some lookers, but it is a pretty big undertaking and a lot of work is involved."
The current owners have operated the ski area for about a decade. Before that, it sat idle for a year or two, and before that it was operated as Rocky Mountain High Ski Area.
"We started out with eight principals, with three of us doing all the work," Naylor said. "We have had it for about 10 years. We got it back on its feet and we got it into a position where instead of a one-year lease, we have a 20-year (Forest Service) lease.
"We are tired and we need to focus on our own businesses, and the ski area needs someone to focus on it."
Teton Pass Ski Area Inc. owns the ski area. The corporate stockholders are Naylor, Ron Collyer, Bob McCarthy, Stoney Burke and John Stoltz.
"A guy could make money on it," Naylor said. "Our balance sheet shows $6.4 million worth of stuff up there. We just want to get out from under the debt and we want the ski run to be open and we don't want to be the ones doing it.
Naylor said there are several parties interested in the ski area but "whether (a sale) will happen this year or not, I cannot say."
"We pursued all this new money floating around our nation, we have met with several community development groups and we have mulled over the co-op procedure," Naylor said. "We are not closing the door to any ideas."
Naylor said the ski area averages about 110 skier visits per day and has been open between 45 and 60 days each year. A skier visit consists of one skier skiing one day.
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"Normally we have around 5,000 skier visits per year," Naylor said.
Teton Pass experienced its busiest season in 1978, when it recorded 12,000 skier visits. That was a good snow year and the year that professional skier "Billy the Kidd" visited the ski area as a promotional event.
Naylor said whether the ski area opens this fall will not affect its Forest Service lease.
"As long as we keep our lift and our operations in order, we are fine," he said.
Rocky Mountain Front District Ranger Michael Munoz said the owners of Teton Pass must maintain the facilities and the ski lift to the American National Standards Institute requirements to keep the lease.
Munoz said that as long as the facilities are maintained to standards, the owners could take years to sell the operation.
"The major thing they have to do is to meet public health and safety standards," Munoz said.
http://www.greatfall...s#pluckcomments
Another smaller article from OCT 13 2009
http://www.greatfall...i-Area-for-sale
OCT 14 2009
Teton Pass Ski Area Seeks New Owners
By MICHAEL BABCOCK (Great Falls Tribune)
Teton Pass Ski Area west of Choteau will not open this year unless somebody buys the 114-acre recreational facility.
Advertisement
"It is not going to open with the current ownership," said Dan Naylor, one of five Choteau businessmen who own the area. "We are going to have it ready to open it if someone wants to step in and buy it from us."
Teton Pass is a small day-use area on the Rocky Mountain Front that has 26 runs and two chairlifts. The area includes a day lodge, restaurant, ski school and rental shop. It also includes a three-phase development plan previously approved by the U.S. Forest Service, under which the owners could expand the intermediate and expert terrain.
The area is listed with Bucks Inc., a Choteau-based real estate business, for $279,000.
Jim Bouma at Bucks Inc. confirmed the price Tuesday.
"That would buy it," he said. "There definitely are some lookers, but it is a pretty big undertaking and a lot of work is involved."
The current owners have operated the ski area for about a decade. Before that, it sat idle for a year or two, and before that it was operated as Rocky Mountain High Ski Area.
"We started out with eight principals, with three of us doing all the work," Naylor said. "We have had it for about 10 years. We got it back on its feet and we got it into a position where instead of a one-year lease, we have a 20-year (Forest Service) lease.
"We are tired and we need to focus on our own businesses, and the ski area needs someone to focus on it."
Teton Pass Ski Area Inc. owns the ski area. The corporate stockholders are Naylor, Ron Collyer, Bob McCarthy, Stoney Burke and John Stoltz.
"A guy could make money on it," Naylor said. "Our balance sheet shows $6.4 million worth of stuff up there. We just want to get out from under the debt and we want the ski run to be open and we don't want to be the ones doing it.
Naylor said there are several parties interested in the ski area but "whether (a sale) will happen this year or not, I cannot say."
"We pursued all this new money floating around our nation, we have met with several community development groups and we have mulled over the co-op procedure," Naylor said. "We are not closing the door to any ideas."
Naylor said the ski area averages about 110 skier visits per day and has been open between 45 and 60 days each year. A skier visit consists of one skier skiing one day.
Advertisement
"Normally we have around 5,000 skier visits per year," Naylor said.
Teton Pass experienced its busiest season in 1978, when it recorded 12,000 skier visits. That was a good snow year and the year that professional skier "Billy the Kidd" visited the ski area as a promotional event.
Naylor said whether the ski area opens this fall will not affect its Forest Service lease.
"As long as we keep our lift and our operations in order, we are fine," he said.
Rocky Mountain Front District Ranger Michael Munoz said the owners of Teton Pass must maintain the facilities and the ski lift to the American National Standards Institute requirements to keep the lease.
Munoz said that as long as the facilities are maintained to standards, the owners could take years to sell the operation.
"The major thing they have to do is to meet public health and safety standards," Munoz said.
http://www.greatfall...s#pluckcomments
Another smaller article from OCT 13 2009
http://www.greatfall...i-Area-for-sale
This post has been edited by iceberg210: 21 October 2009 - 11:00 AM
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Posted 01 August 2010 - 08:33 PM
New ski area owner plans improvements
Story Published: Aug 1, 2010 at 10:00 PM MDT
CHOTEAU, Mont. (AP) — The new owner of Teton Pass Ski Resort west of Choteau says $3 million will be spent during the next two years to improve the ski area.
Nick Wood of New Zealand bought the ski area on Thursday for just under $300,000.
Wood says he plans to build two new lifts to add 250 more acres of skiing and an additional 400 vertical feet.
The former owner of one of the largest Internet service providers in New Zealand says he also plans to repair existing lifts and renovate all the buildings.
Story Published: Aug 1, 2010 at 10:00 PM MDT
CHOTEAU, Mont. (AP) — The new owner of Teton Pass Ski Resort west of Choteau says $3 million will be spent during the next two years to improve the ski area.
Nick Wood of New Zealand bought the ski area on Thursday for just under $300,000.
Wood says he plans to build two new lifts to add 250 more acres of skiing and an additional 400 vertical feet.
The former owner of one of the largest Internet service providers in New Zealand says he also plans to repair existing lifts and renovate all the buildings.
- Peter<br />
Liftblog.com
Liftblog.com
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Posted 02 August 2010 - 03:51 AM
Great news indeed!!! More info on their website...
http://tetonpassresort.com/
Going to be open 7 days a week which is nice.
http://tetonpassresort.com/
Going to be open 7 days a week which is nice.
Skier, on 01 August 2010 - 08:33 PM, said:
New ski area owner plans improvements
Story Published: Aug 1, 2010 at 10:00 PM MDT
CHOTEAU, Mont. (AP) — The new owner of Teton Pass Ski Resort west of Choteau says $3 million will be spent during the next two years to improve the ski area.
Nick Wood of New Zealand bought the ski area on Thursday for just under $300,000.
Wood says he plans to build two new lifts to add 250 more acres of skiing and an additional 400 vertical feet.
The former owner of one of the largest Internet service providers in New Zealand says he also plans to repair existing lifts and renovate all the buildings.
Story Published: Aug 1, 2010 at 10:00 PM MDT
CHOTEAU, Mont. (AP) — The new owner of Teton Pass Ski Resort west of Choteau says $3 million will be spent during the next two years to improve the ski area.
Nick Wood of New Zealand bought the ski area on Thursday for just under $300,000.
Wood says he plans to build two new lifts to add 250 more acres of skiing and an additional 400 vertical feet.
The former owner of one of the largest Internet service providers in New Zealand says he also plans to repair existing lifts and renovate all the buildings.
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Posted 02 August 2010 - 08:49 AM
Skier, on 01 August 2010 - 08:33 PM, said:
New ski area owner plans improvements
Story Published: Aug 1, 2010 at 10:00 PM MDT
CHOTEAU, Mont. (AP) — The new owner of Teton Pass Ski Resort west of Choteau says $3 million will be spent during the next two years to improve the ski area.
Nick Wood of New Zealand bought the ski area on Thursday for just under $300,000.
Wood says he plans to build two new lifts to add 250 more acres of skiing and an additional 400 vertical feet.
The former owner of one of the largest Internet service providers in New Zealand says he also plans to repair existing lifts and renovate all the buildings.
Story Published: Aug 1, 2010 at 10:00 PM MDT
CHOTEAU, Mont. (AP) — The new owner of Teton Pass Ski Resort west of Choteau says $3 million will be spent during the next two years to improve the ski area.
Nick Wood of New Zealand bought the ski area on Thursday for just under $300,000.
Wood says he plans to build two new lifts to add 250 more acres of skiing and an additional 400 vertical feet.
The former owner of one of the largest Internet service providers in New Zealand says he also plans to repair existing lifts and renovate all the buildings.
Good news for skiers in Montana....
as the saying goes "If you want to make a SMALL fortune in the ski business...start with a LARGE one".
Dino
"Things turn out best for the people that make the best of the way things turn out." A.L.
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Mountain Operations
Posted 02 August 2010 - 09:42 AM
Good news for skiers in Montana....
as the saying goes "If you want to make a SMALL fortune in the ski business...start with a LARGE one".
Dino
[/quote]
As one Bean Counter once said: "We're here to make dollars; not cents"
...Mike
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Posted 02 August 2010 - 05:16 PM
mikest2, on 02 August 2010 - 09:42 AM, said:
as the saying goes "If you want to make a SMALL fortune in the ski business...start with a LARGE one".
I recently noticed how much our new owner looks like "DB Cooper (photo attached). Hmmmm.
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