Topics of a general nature regarding snowsports, which don't easily fit into one of our other Liftlines categories. This is also the place to post Letters to the Editor.
Tue Aug 23, 2016 11:16 am
Red Mountain, BC is bucking the season and offering regular folk to become equity partners.
Here's my interview with their owner.http://www.mrablog.com/fight-the-man-ow ... rd-katkov/
Tue Aug 23, 2016 12:18 pm
Didn't have time to listen to the video interview just yet, but the things I've read on the intent including the official announcement would have me not investing (even if I was a local) anytime soon. Starting with the current owner setting it up to retain majority ownership and thus complete control. It's also rather unclear what form the investments will take. LLP? Stock?, etc... nor is it very clear what precise benefits there would be for any level of investing; including no dividends, etc...
I wish them luck as we need to keep as many places lights on as possible; but I've seen both success and failure in such efforts to go public, er... crowdsource a ski resort. Seems like a lot of work left to go and many, many details that remain to be divulged. Buyer beware.
Wed Aug 24, 2016 3:14 pm
In the first 24 hours of the campaign, over $1 Million has been pledged. https://www.startengine.com/startup/red-mountain-resort
Wed Aug 24, 2016 10:43 pm
My question is why do they need to do this? An independent owner/operator can choose to run the mountain as he/she sees fit. Does Red need a cash inflow?
This is an area I've skied in several seasons. I totally get that Red is an area where the culture should stay the way it is. It doesn't need high speed lifts because the lifts climb steep terrain and give you good vertical for the ride time (Taos is another example of this). I also see little in the way of lift lines. I don't see major capital needs here. Snowmaking? It wouldn't help all that much in the type of terrain Red has.
I have Red at 115,000 skier visits per season, don't recall where I found that number. Hopefully that's enough to pay the bills. In terms of commercial appeal, Red has some strikes against it.
1) If you're not a strong skier, terrain is very limited.
2) Access is tough. For Canadians it's via Castelgar (nickname Cancelgar). Yes, Spokane is a cheap gateway less than 3 hours away, but the fact remains that most Americans won't cross the border for their ski trips, and when it dawns upon them that they can, they go to Whistler or Banff. I read somewhere that Americans comprise 6% of interior B.C. skier visits.
3) Snow conditions are average for a destination resort, but areas with that demanding terrain need to be well above average for consistency (see Taos, Crested Butte for similar challenges). Red's snow is distinctly inferior to competitors Whitewater and Fernie much of the time.
Despite caveat #3 above, I was already aware that Red had an excellent 2015-16 snow year relative to most of western North America (one of only 4 areas in my data more than one standard deviation above average). So I'm not surprised to hear of record skier visits. This provides reassurance that the current crowdsourcing outreach is not due to immediate financial distress.
Wed Oct 12, 2016 1:19 pm
Here's a follow up interview with Red Mountain's owner Howard Katkov. http://www.mrablog.com/checking-red-mou ... rd-katkov/
They have now surpassed $4.5 Million in pledges from 1,200 different investors in the first 6 weeks.
Wed Oct 12, 2016 11:26 pm
Is there a transcript? Sitting at the computer it's much more efficient to read than watch video.
I wish them well. Red Mt. is the real deal. Unlike some MRA ventures, there is a lot of world class terrain and big mountain skiing directly lift accessible here. I have been there in 5 different seasons, and I'm sure there will be more.
Sat Oct 22, 2016 2:58 am
Tony Crocker wrote:My question is why do they need to do this? An independent owner/operator can choose to run the mountain as he/she sees fit. Does Red need a cash inflow?
Yes...word is they're broke and there are rumors afoot that they may not open...but I seriously doubt that.
Construction was halted months ago on the Hotel which now serves as a monument to ill conceived planning.
Bottom line...the current ownership group are a clump of idiots
Sat Oct 22, 2016 2:11 pm
I see, another example of overextension in building vacation real estate.
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