Balsams Update - Go Big or Go home

[peakbagger]

The Berlin Sun reported that the county commissioners did a preliminary vote supporting the project. The claim is the county will have no financial contribution to the project, they will need to certify that the project is needed to support economic development in the area (which is true). The bonds will be tax exempt bonds sold to the open market with Goldman Sachs marketing them and Provident managing the project. There will be a public hearing by the county after the beginning of the year. Generally at this stage porjects move quick or flame out.

My guess if Provident breaks ground that there will be other annoucements on ski area development soon after.

 

[NHClimber]

Interesting that Goldman is involved. Wouldn't have expected them to have taken an interest. Perhaps ESG-related as previously mentioned. Would be good to see something happen here. Baby steps would be fine.

 

[peakbagger]

This appears to be the strongest financing attempt to date. (but the devil is the details) Prior versions were trying to use county money for infrastructure upgrades as a substitute for some of the owner's equity (skin in the game) was bogus and in theory that was why the investors never would hand over details to the state for review to get access to state economic development bonds.

No mentions of a Tax Incremental Financing district,(yet) or the need for county money, (yet) and the state does not need to issue non recourse bonds. No doubt there has to be some strong connections between the Balsams developers and Provident on the balance of the development (retained by Balsams current investors). My guess is if the balance of development does not happen, at some point Provident ends up with the whole property. If their balance sheet is big enough to handle the investment it may be best as they are probably in it for a longer term than Les. Note Les has a new partner that seems to be in it for the long term who bought out Dan Dagesse the prior co-owner.

 

[NHClimber]

Well, if I had Gates’ or Musk’s money, I’d buy it and if I had to run it at a loss then so be it. Would want to just do something positive for the northern NH community and keep some history alive.

 

[peakbagger]

Indepth Nh has slightly more detail. The "devil" may be starting to appear

http://indepthnh.org/2021/12/13/coos-county-commissioners-back-balsams-resolution/

It mentions the TIF district where all the taxes from the new development gets plowed back into the project. That could be an issue with the count but my guess is they will live with it as long as County coffers are not going to get raided. It also says the Provident investment will attract other investors implying that there will be other investments. If the Provident deal is linked to multiple other finance efforts being successful it could all fall like a house of cards.

More info from Andrew's post on Mt Agassiz

Page 8

https://bloximages.newyork1.vip.tow...-11ec-8360-573f6fe67a3f/61ba359a0cec2.pdf.pdf

First-phase components, though, remain the
same and include an expansion of the Wilderness
SkiArea with new lifts and snow-making; renovating the historic Dix and Hampshire houses; building the new Lake Gloriette Hotel and conference
center; revitalizing the Panorama Golf Course;
adding Nordic baths, a retail marketplace, and fine
dining and culinary offerings; and a Planned Unit
Development for the future development of up to
4,600 four-bedroom equivalent lodging or residential units.

 

[peakbagger]

The Berlin Sun (paywall) has an article with an update on the Balsams project. The lead is that the state has been asked to get rebuilding a public road, Golf Links road on the 10 year highway plan. This was part of the original deal with the state to assist the project by rebuilding the road (last estimate 2.3 million most likely more now) and then handing it off to the resort. The state agreed previously but will would spend the money unless the project was financed. It wasnt so the road fell off the plan. The developer clams they have 10 million in new deposits and a total of 27 million in deposits for units plus additional investments in founder shares. The claim is the paperwork for the bond for the entire project is being finalized but it could take several months which would imply a 2023 start to construction.

The Provident Group that is going to fund and own the initial hotel and conference center had also proposed a similar investment at the Big Moose Ski area in Greenville Maine. That project has been in the news of late, the current owner who has already agreed to sell the resort to a new group is being fined 4.1 million for violations of agreements with the state of Maine regarding harvesting timber. The new developers were trying to bypass state regulations on holding public hearings regarding the redevelopment of the resort trying to use an outdated plan. In general, that project seems to be stalled which is probably a plus for the Balsams project.

Meanwhile despite the federal bankruptcy manager last October announcing that there were several interested parties to buy the Jay Peal resort no announcements have been made to sell it.

The Balsams has not gone back before the Coos County planning board to restart the permitting, there were several items that had been put on hold previously that would need restarting. My guess is if and when the bond package hits the street that this process will restart as if required the Balsams to fund several studies. No doubt the original estimates for the project have gone up.

 

[NHClimber]

The wheels on the bus go 'round and 'round, 'round and 'round, 'round and 'round...

 

[peakbagger]

https://www.youtube.com/watch?v=Jdf5EXo6I68

 

[NHClimber]

Ha Ha. Exactly. Too bad, though.

 

[peakbagger]

The state legislature voted to make the road improvements that had been part of the original financing package with conditions. This would upgrade a marginal public road somewhat internal to the proposed resort and then hand it over to the resort.

Here are the conditions

5 Department of Transportation; Dixville-Colebrook Road Project. The department of
transportation is authorized to proceed with the road project named Dixville-Colebrook, project
number 40518, subject to the following contingencies:
I. The department of transportation shall not commence construction on project number
40518 until such time as all approvals necessary for the road project are received and financing is
secured.
II. Financing must be sufficient for the redevelopment of the resort facility and property
formerly known as "the balsams grand resort hotel" and for the commencement of commercial
operations at the former resort facility.
III. Prior to construction of project number 40518, the towns and/or county shall execute an
agreement with the department, agreeing to take ownership of the road with responsibility for
continuing maintenance and repairs.
IV. Construction costs and other project costs associated with project number 40518 shall
not exceed $4,100,000. The governor is authorized to draw a warrant for the necessary sum out of
any money in the treasury not otherwise appropriated, for construction costs and other project
expenses. The appropriation shall be non-lapsing. Project costs shall not be charged to the highway
fund.

 

[peakbagger]

Time to "go big" again, the Balsams is before the Coos County planning board to expand the Balsams ski area on October 19th in Gorham. They were before the planning board recently to get approvals around the hotel properties. Looks like Les is making another run at it.

 

[peakbagger]

Wow the Coos County Planning Board actually posted material before a public meeting. If you want to know what the proposed Balsams Ski Area Expansion will look like its on the planning board website

Here is teaser of the overall site planhttps://www.cooscountynh.us/sites/g/files/vyhlif4291/f/pages/map_j_-_overall_ski_area_site_plan.pdf There is an expanded set in the package

If you want more, here is link to the entire batch https://www.cooscountynh.us/planning-board/pages/dixville-capital-ski-area-site-plan-2022 This is the Phase 1 proposal but my guess is it would not be built out. The Gondola and ski back bridge over RT 26 are quite interesting but logical as the distance between the hotel and the ski area was a prior hassle.

Looking at the proximity to the existing wind turbines, that is lot closer than what I remember for buffers when the wind farm was permitted. I heard from reliable sources that the wind farm has had a few incidents where ice chunks being flung or dropped off the blades have crushed things. Not sure how often but a ski helmet is not going to do much for protection from a large ice chunk.

 

[peakbagger]

Pending permit approval the Balsams rep stated that the plan is if they get the permitting in place that the new ski trails will be logged this winter with lifts and gondola and ski back bridge over RT 26 being built next year. The permit they are seeking is only the first as it does not request approval for actually opening the ski area to the public as they do not have those plans in place in enough detail. They commented on the ice throw issue. They were in negotiations with the prior owner of the wind farm but subsequently the wind farm was sold and the new owner will not return calls. The state permit requires a 1100 foot buffer which would effectively prevent a ski trail from being used in icing conditions. The actual landowners of the land impacted by ice throw have different and shorter distances in their agreement with the wind farm. They have to submit an operations plan on how they will handle potential wind throw during icing conditions.

The case was continued until next planning board meeting in mid November assuming the Balsam's fills in some requested information predominantly how the gondola and ski back trail will cross over RT 26. Assuming the requested information is supplied, the board than can go into a public hearing o approve this phase. The planning board was not equipped with projection equipment, so it was somewhat difficult for the public (myself) to follow some points. Luckily, I had reviewed what was put up on the website in advance (some members of the board had not) but as is typical of these meetings last minute handouts of new information was handed out to bord members that have not been posted. They claim that the orders for lifts and gondolas will be released soon but there is significant work to be done in the field prior to coming up with detailed design.

It was commented that at least initially there will be no base lodge at the ski area, all access will be from the new hotel. At a later date they will come back to the board to discuss the use of the existing lodge.

 

[maineguy]

Looking at the proximity to the existing wind turbines, that is lot closer than what I remember for buffers when the wind farm was permitted. I heard from reliable sources that the wind farm has had a few incidents where ice chunks being flung or dropped off the blades have crushed things. Not sure how often but a ski helmet is not going to do much for protection from a large ice chunk.

These turbines were built before anti-icing systems were available?

 

[JustJoe]

Looking at the proximity to the existing wind turbines, that is lot closer than what I remember for buffers when the wind farm was permitted. I heard from reliable sources that the wind farm has had a few incidents where ice chunks being flung or dropped off the blades have crushed things. Not sure how often but a ski helmet is not going to do much for protection from a large ice chunk.

That's an interesting observation. Looking the the map, if I'm reading it correctly, there's one proposed trail in between the 500/837' distance from turbine. A chunk off ice could easily be hurled that far. Yeah, that will leave a mark.

 

[skiguy]

That's an interesting observation. Looking the the map, if I'm reading it correctly, there's one proposed trail in between the 500/837' distance from turbine. A chunk off ice could easily be hurled that far. Yeah, that will leave a mark.

Not uncommon for certain trails to be closed when certain conditions warrant it at any ski area. Not to mention lift closures. So is this really a big deal if conditions are monitored properly?

 

[peakbagger]

There is legal notice in the Berlin Paper that the Coos County Planning Board is having a public hearing on the major Balsams Ski Resort expansion. The Balsams has been working with the planning board for a few months to get the application in order. The claim at an early meeting was that they planned to start cutting the trees in the ski trails, lift lines and other areas of the expansion this winter.

Unfortunately it looks like they will miss out on the expected big eclipse tourism boom next year.

 

[NHClimber]

There is legal notice in the Berlin Paper that the Coos County Planning Board is having a public hearing on the major Balsams Ski Resort expansion. The Balsams has been working with the planning board for a few months to get the application in order. The claim at an early meeting was that they planned to start cutting the trees in the ski trails, lift lines and other areas of the expansion this winter.

Unfortunately it looks like they will miss out on the expected big eclipse tourism boom next year.

Are they trying to open the ski area prior to anything happening with the hotel? Admittedly, I haven't paid much attention as I thought the hotel was relatively DOA.

 

[peakbagger]

The "official" story from what I have read is that the Balsams developer is in chicken and egg situation. A separate entity whose past projects are predominately hospitals and senior health care facilities has committed to build the first resort hotel building either leasing or owning the land under the new building (the old one has been determined unsuitable for the conversion to the new resorts goals (high end condo/hotel)). The financier of the condo /hotel calls the investment a "mission". The balance of the resort property and the ski area will be financed and operated by the Balsams group using financing they claim to have lined up. The resort will be serviced by tram that starts in the resort building on the North side of Rt 26 to the ski area base and there will be return ski run back from the ski area going over a new bridge over RT 26 and ending at the hotel. So effectively the new mission will be the base lodge for the expanded resort. Note that the missionhas not applied and has not received final site plan approva by the planning board. The Balsams owners claimed at the first of several meetings that the lifts are on order but cannot be detailed designed until the terrain is cleared. The fate of the two projects is intertwined. This public hearing appears to be for the ski area expansion only, the Balsams is at risk if they spend dollars on the ski area as not included are any actual public accommodations or approvals for facilities that are located at the yet to be applied and approved "mission".

 

[NHClimber]

Thanks. Sounds like the usual morass.