Moosehead Ski Area Proposal

[egilbe]

Thank you

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[peakbagger]

Chris, that was one of the beauties- the design of the rail car was heavy, so momentum was easily achieved. Pedaling easy, wheels steel and real so you got the wonderful clickety-clack as you rolled. If I could have pedaled home to NH, I would have. Peakbagger, so much would be gained if the rail trail between Gorham and Pondicherry was hardened. The Friends of Pondicherry did a good job (so far) on the popular section from near the airfield in Whitefield. I suggested once to the Trails Bureau district chief in your town, that he should encourage one of his outfits to convert an ATV into some semblance of a Thomas wagon to keep alive a nod to the rail history of the trails and add a tourist interest; he thinks I'm crazy. My billionaire dream would be to run railcarts from Cottage Street in Littleton up to Whitefield for ice cream, then on to Pondicherry.

My guess on how and why the Moose River and Randolph section gets little love is the ban on ATVs west of the parking lot in Gorham. I think snowmobile dollars were spent to deal with the washout east of the beaver ponds this year but expect a mutiny if a dime of ATV money was spent on this stretch. I have heard once or twice Randolph folks comment that they desperately need to keep Randolph functional as a town so they can control what it going on in its borders. Its difficult as the year round resident base is quite low to fill all the required positions. The reasoning goes if Randolph ceases to be a town, it would be annexed by Jefferson and Gorham or the county and those living there would loose control of what is going on in their backyards. The contempt for ATVs by some residents and summer property owners is quite deep. The ATV crowd in Gorham that bullies the selectman and any one else opposed to ATVs, is pretty open with their contempt for Randolph's ATV trail ban and have attempted end runs around it in the past. My guess is unless its federal or private money any state money for hardening this stretch would get amended to add ATV use and that would not fly. Its the logical place for Ice T money to be used but that precludes snowmobile use and expect they will not give up that stretch..

Folks I have talked to who have ridden the cross NH trail have universally given the stretch shared with ATVs from the Gorham ATV lot to to turn off to Hogan Road very bad reviews for surface as the ATV traffic turns it into choking dust in dry conditions and rutted and bumpy the rest of the year. I have suggested to more than few to bypass the official route and ride along RT2 with its narrow shoulders to the railroad trestle and walk across the pedestrian bridge then take the road to the dam and then upriver to the second bridge to avoid the ATVs to the maximum amount possible. Of course once they get to Hogan road, those with road bikes are not to thrilled with its condition. Its another "if you build it they will come" concepts. Lay out the route put up a few markers and get some free publicity and let someone else worry about the real work of getting funding and buy in of all the parties.

 

[NHClimber]

I vote to lay down rail from Gorham to Pondicherry. What's old should be new. Then break out the rail riders. I like what Fryeburg did -- keep the rail and have a bike path next to it. Maybe time to buy the rail line from Whitefield to Groveton. Ripping up rails is ripping up history. I am rambling...

 

[peakbagger]

An update on the Moosehead Ski Resort proposal. The Finance Authority of Maine (FAME)is lending the money to rebuild the resort.
https://92moose.fm/maine-ski-resort/

This article from a few weeks ago has more details
https://observer-me.com/2021/03/24/news/tif-could-be-part-of-moosehead-lake-ski-resort-project/

I dont think any entity has ever made money on actual resort operations on the site despite many who have tried. Its definitely not a ski area that is good for daytrips from urban areas

Over the years FAME has been involved with several high profile failures of major projects. Generally the developers end up skimming some profits off the top before the project goes bellyup. Banks are desperate to make commercial loans these days given very cheap federal fund rates. If a commercial entity is not willing to lend on a good project, it usually means that the when FAME steps in its very risky project.

My guess is Les Otten is wishing the Balsams was a bit west over the Maine state line at this point. He had the same approach using state guaranteed loans for small part of the project and a Tax Increment Financing (TIF) district to have the potential increase in property taxes pay the bonds. The usual problem with TIFs is that the local services needed to support the facilities are not able to be funded since the property taxes can only be spent within the TIF. Unfortunately The NH version of FAME is far more conservative and wanted to see far more details on the Balsams project than Les was willing to show. Eventually the parties parted company.

 

[Mike P.]

An update on the Moosehead Ski Resort proposal. The Finance Authority of Maine (FAME)is lending the money to rebuild the resort.
https://92moose.fm/maine-ski-resort/

This article from a few weeks ago has more details
https://observer-me.com/2021/03/24/news/tif-could-be-part-of-moosehead-lake-ski-resort-project/

I dont think any entity has ever made money on actual resort operations on the site despite many who have tried. Its definitely not a ski area that is good for daytrips from urban areas

Over the years FAME has been involved with several high profile failures of major projects. Generally the developers end up skimming some profits off the top before the project goes bellyup. Banks are desperate to make commercial loans these days given very cheap federal fund rates. If a commercial entity is not willing to lend on a good project, it usually means that the when FAME steps in its very risky project.

My guess is Les Otten is wishing the Balsams was a bit west over the Maine state line at this point. He had the same approach using state guaranteed loans for small part of the project and a Tax Increment Financing (TIF) district to have the potential increase in property taxes pay the bonds. The usual problem with TIFs is that the local services needed to support the facilities are not able to be funded since the property taxes can only be spent within the TIF. Unfortunately The NH version of FAME is far more conservative and wanted to see far more details on the Balsams project than Les was willing to show. Eventually the parties parted company.

When Moosehead fails, who's on the hook for the FAME funds, it that a mix of banking partners and Maine taxpayers? If this was a great idea for making money, they would be beating commercial bankers away with a stick. As Peakbagger mentioned, it's not a day trip visit for Southern New England. How will they get NY and NJ skiers to bypass Stratton & Killington. There are just too many other closer options for CT and Boston unless it has something the other's don't have. It's not the topography.

 

[peakbagger]

Ultimately its the Maine taxpayer. Maine has a "proud tradition" of passing the buck down the line to the next administration. In the short term local contractors and suppliers are employed for the build out and local politicians are happy, then the developer opens up the resort with a big promo budget to get the traffic in and usually it takes a couple of years of operation before the books settle out. By that time the developers have made most of their fees and are onto greener pastures and then the payments slowly start to slow down until some triggering event shuts them down. By that time, the new administration blames it on the lack of review by the prior administration and the taxpayer eats it. Lawsuits are filed, but assets are long gone. The current owner got the place for fire sale as the prior owner had violated some agreements with the state, rather than live up to the agreements, he reportedly fire-saled it to a new owner who is on the hook to live up to opening the place back up.

The East Millinocket papermil mess several years ago was the last big debacle with state financing. Hundred of millions of dollars went to developer and through a complex set of transaction the money was distributed to the participants without a dime going to the project. The project lead went to court and it turned out that the only assets in his name was the money in his wallet, everything else including real estate and twin turboprop plane was all in assets he ultimately controlled but could not be attached. Here is flavor from subsequent legal action https://bangordailynews.com/2014/06...ave-a-bank-account-or-stake-in-gnp-thermogen/

Fame is lending money to the former Madison Paper mill to new owner that are making a cellulose insulating board that they claim is new to North America but suspiciously looks like an older product that fell out favor years ago.

 

[peakbagger]

The latest project has crashed and burnt. https://www.bangordailynews.com/2022/11/17/news/piscataquis/moosehead-ski-resort-project-halt/ The current owner got in trouble with the state for illegal timber harvesting. The same firm that has announced that they will build a hotel at the Balsams had announced a similar project t Moosehead. Maybe this puts a bit more priority on the Balsams project that is actively trying to get final permits for the ski areas expansion.

https://www.bangordailynews.com/2022/11/17/news/piscataquis/moosehead-ski-resort-project-halt/