Saddleback Mountain Sale

[peakbagger]

Far more information $5,500 a pop from condo owners.

https://bangordailynews.com/2019/12...owners-to-pitch-in-on-resorts-revitalization/

One more link with even more detail, Renovated lodge and future hotel

https://www.theirregular.com/articles/close-to-closing-the-deal/

 

[egilbe]

Do they really think condo owners are part of the distressed community?

 

[Mike P.]

Do they really think condo owners are part of the distressed community?

It's all relative, their condos have lost value, You can't get college kids to rent them for parties through Airbnb, You can't move Saddleback closer to population centers so the value is likely to remain low, they feel distressed. (I understood what you meant for people with 2nd homes, although not everyone who owns a vacation condo or timeshare is living fat off the hog)

Before I wrote a $5,500 check I'd want to talk to my tax accountant and a lawyer to be sure this payment would be deductible on my home state and federal taxes. (Thinking just on Federal, maybe) If this plan fails, I am a pessimist at heart, do I have any legal recourse or are the developers likely to file Chapter 11 & I might get pennies on the dollar. $5,500 in small bills makes very good kindling.

There are very few places one would call population centers where Saddleback is the closest ski destination. In many cases, places like Loon, Bretton Woods, Stratton, Killington are closer or offer more in either terrain or amenities. Is Saddleback a partner with other resorts in Maine so I can ski at Sugarloaf one day and then Saddleback another? It's about an 50 minutes to drive from Sugarloaf to Saddleback. Almost 90 minutes from the Sunday River area. Assuming they don't impact the AT corridor, I wish them well, I am pessimistic they will get the economic development that prospective buyers and owners are hoping for though.

 

[peakbagger]

up date, looks like the deal is closing this week.

https://www.boston.com/news/skiing/2020/01/27/heres-the-latest-on-saddleback-mountain-in-maine

 

[Scubahhh]

Mike P.: I get wha tyu['re saying about geography, but bear in mind that what you have to offer is important, too. For example, Bretton Woods is much further from the flatlands than Loom, Waterville, etc., and through the dreaded Franconia Notch to boot, and kicks all their butts every year.

 

[egilbe]

$23.5 million? I thought the Berry's wanted to sell it for around $7 to $10 million? And another $38 million in investments after the purchase? Its going to be 100 years before they break even.

 

[Mike P.]

up date, looks like the deal is closing this week.

https://www.boston.com/news/skiing/2020/01/27/heres-the-latest-on-saddleback-mountain-in-maine

There's an optimist born every other minute.... I wonder who floated the insurance policy, if I am reading that right, if the policy was written for a payment of 2.5M that's a pretty pricey cost.

I would expect some type of request for approaching the AT Trail corridor again and with the current group in charge of the Interior, it may be the best chance a real estate developer to make gains at the lost of the AT.

 

[Vermonster]

I think the Berry's got $6.5 million
Hopefully the improvements strike an appropriate balance.
After this (poor) winter, many businesses in the Rangeley area are really hurting from lack of snowmachine business and challenging conditions for forestry. Saddleback opening in December 2020 might encourage a few on the edge to hold out.

Press Herald Story: https://outline.com/uhwfjv

 

[peakbagger]

An update, work is actually being done on site which is something that cannot be said for previous developers. The employment approach is definitely innovative

https://www.mainebiz.biz/article/despite-pandemic-saddleback-resort-relaunch-remains-on-track

 

[peakbagger]

The resort had ribbon cutting Saturday. They are supposed to be open for skiing today with the new lift running.

Time will only tell if the new business model is going to succeed where past ones did not. It usually takes about 3 years for the financials to settle out. My guess is this season will be rough but if there is the "rush to rural areas" that some analysts predict will be a long term result of the pandemic then perhaps they can capture some of it. Part of the business plan is to put in very large commercial solar array to build up some "green cred"

 

[Mike P.]

We'll see how the rush to rural areas pan out in the long term. There certainly was a rush out of buildings where you share an elevator. (a small room shared by everyone in the building and guest, potentially 1,000's where everyone touches the same control panel - A case for installing verbal controls)

I don't think this group is looking at leaving cities for Northwest Maine, they think Litchfield County is the boondocks. I think they need to make people believe it's a worthy destination for a week long trip. I can ski Saddleback and then Sugarloaf for a change, then what? With the virus, there is no need for a large fine dining or Après ski location, this will need to be there in time though to attract people. Is there a way to develop an attraction that takes advantage of the large open lakes in winter? Are my only choices snowmobiling or ice fishing? How about a clear covered/heated party barge that can be pulled across the snow and ice? Is there any shopping in the towns on the lake other than the Stratton General Store? (Wish I had bought that "Where the F(*^ is Stratton Maine T-shirt )

 

[peakbagger]

Don't shoot the messenger I think North Conway and Lincoln south of the notches and possibly Franconia Littleton have a higher chance of "rush to rural" than Saddleback but I am not their target audience as I do not ski and "rushed to rural in 1987.

 

[David Metsky]

I can ski Saddleback and then Sugarloaf for a change, then what?

The terrain, especially the glades, at both of those ski areas can skiers entertained for a week, no problem. There is a vast amount of uncharted terrain in Casablanca (Saddleback) and Bracket Basin (Sugarloaf) that skiers love.

Neither mountain is huge on apres-ski amenities, but they are skiers mountains for sure.

 

[maineguy]

We'll see how the rush to rural areas pan out in the long term. There certainly was a rush out of buildings where you share an elevator. (a small room shared by everyone in the building and guest, potentially 1,000's where everyone touches the same control panel - A case for installing verbal controls)

I don't think this group is looking at leaving cities for Northwest Maine, they think Litchfield County is the boondocks. I think they need to make people believe it's a worthy destination for a week long trip. I can ski Saddleback and then Sugarloaf for a change, then what? With the virus, there is no need for a large fine dining or Après ski location, this will need to be there in time though to attract people. Is there a way to develop an attraction that takes advantage of the large open lakes in winter? Are my only choices snowmobiling or ice fishing? How about a clear covered/heated party barge that can be pulled across the snow and ice? Is there any shopping in the towns on the lake other than the Stratton General Store? (Wish I had bought that "Where the F(*^ is Stratton Maine T-shirt )

I agree. There's nothing to do in Northwest Maine. Please tell all your friends this.

 

[Hillwalker]

I agree. There's nothing to do in Northwest Maine. Please tell all your friends this.

Yes, please let everyone be aware that all we have for entertainment are hordes of Black Flies and armies of Deer Ticks. And we all voted for hombre naranja.

 

[peakbagger]

Hard to set up a business model for apre ski that only runs 4 months a year. Killington and Sugarloaf try and there is a revolving door of businesses on resort owned land But most of the businesses are empty for 8 months a year. The holy grail is a 4 season resort but it just doesn't seem to be working for the more remote resorts. Les Otten is pegging his business plan on 4 season, his wrinkle is to have ATV traffic for the non winter season period.

Saddleback never did much base development, they depended on businesses in Rangeley which does have summer traffic from the Lake and winter snowmobile traffic.

 

[egilbe]

If Maine Huts and Trails ever becomes financially viable again, there is no reason why the x-country trail system can't continue to Saddleback. It does need a couple more huts to make the trail system longer. It would be a good long distance hiking tail, too.

 

[ChrisB]

Hard to set up a business model for apre ski that only runs 4 months a year. Killington and Sugarloaf try and there is a revolving door of businesses on resort owned land But most of the businesses are empty for 8 months a year. The holy grail is a 4 season resort but it just doesn't seem to be working for the more remote resorts. Les Otten is pegging his business plan on 4 season, his wrinkle is to have ATV traffic for the non winter season period.

Saddleback never did much base development, they depended on businesses in Rangeley which does have summer traffic from the Lake and winter snowmobile traffic.

I think the formula for ski area survival these days is second home real estate development of town houses and condos, with skiing secondary. Saddleback is well placed for that given the popularity of the Rangley area in summer.

 

[peakbagger]

I agree, MHT made a pivot in that direction to tie into Rangeley and was planning the next hut in the Caribou Valley. The big Navy base to the west cut out the logical connection to Saddleback and Saddleback Lake so unless the Navy allowed a trail to go through their base (highly unlikely) the trail would have to head north of Redington over into the Nash Stream drainage and then west to Rangeley north of Saddleback. My guess is that it would be a new hut In Caribou Valley and at least one more to get close to Rangeley. Probably academic until MHT finds a way out of their hole.

The new owner of Saddleback has stated that additional housing is an essential part of their plan. I do not know how much land they ended up owning but the original development owned a lot of land down to and including Saddleback lake. There were some land sales by the resort on the lake over the years so I am unsure what is left. Given Sunday River's recent success in selling out a high end ski home development in record time, no doubt the Saddleback developer is hoping lighting strikes twice.