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Jay Peak Busted by SEC as Ponzi!

indiggio

By indiggio
in Other Mountains

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Ride Delaware ? Bronze Medalist

Ride Delaware ?

Posted
Posted

This doesn't surprise me at all. It all seemed to good to be true. While it has increased tourism to the NEK, there is a right and wrong way to do things. This was the wrong way. The ends don't justify the means. I'm glad they figured it out when they did.

  • 2 weeks later...
Ride Delaware ? Bronze Medalist

Ride Delaware ?

Posted
Posted

Sugarbush took $20 mil from the EB-5 program and appears to have done it completely above board. They needed it for all the new base facilities to make it a viable mountain. They didn't have the skier visits and infrastructure to justify bank financing, so that was their only option. The new base area condos/townhouses (Rice Brook & Gadd Brook) have been going to pay off those 40 EB-5 investors, not into Win's pocket. He has always been very open about his business. He recently stated that 18 have been paid off and that more will be when the Gadd Brook residences begin to sell.

Ride Delaware ? Bronze Medalist

Ride Delaware ?

Posted
Posted

What kind of income do you think Win at Sugarbush makes???

I have no idea. I'm sure he is salaried, but to what degree his income is remains a mystery. Considering that his grandfather was a founding member of Merrill Lynch and he was executive VP, I can't imagine that he is struggling.
Ride Delaware ? Bronze Medalist

Ride Delaware ?

Posted
Posted

They can, just no summit access. The article I read made the situation with the tram seem very "saddlebackish".

 

 

Sent from my iPhone using Tapatalk

My understanding is that the Saddleback lift and the Jay Tram are completely different.

 

Jay supposedly had the $$$ set aside for the repairs they knew needed to be done. Quiros then used those funds on some other frivolous personal expenditure and hoped that EB-5 money could be generated to cover that (even though it is not an acceptable expense under the terms of the EB-5 program). The tram supposedly needs these fixes in order to pass inspection.

 

On the flip side, Saddlebacks lift was inspected and was ready to go. Despite its age, the lift had a complete overhaul relatively recently and could have operated into the future. Unfortunately, the Berry family was tired of pouring their own money into the resort and didn't feel it could make a profit without increased lift capacity. They wanted to find financing instead of using their own money, but due to the financial facts, couldn't justify the loan. They tried to force the hand of the government for a guaranteed loan by saying they wouldn't open and the economy would struggle, but the government didn't bite. Saddleback sat idle with a perfectly operational lift and the economy (both ski and snowmobile related) struggled.

Johnny Law Bronze Medalist

Johnny Law

Posted
Posted (edited)

My understanding is that the Saddleback lift and the Jay Tram are completely different.

 

Jay supposedly had the $$$ set aside for the repairs they knew needed to be done. Quiros then used those funds on some other frivolous personal expenditure and hoped that EB-5 money could be generated to cover that (even though it is not an acceptable expense under the terms of the EB-5 program). The tram supposedly needs these fixes in order to pass inspection.

 

On the flip side, Saddlebacks lift was inspected and was ready to go. Despite its age, the lift had a complete overhaul relatively recently and could have operated into the future. Unfortunately, the Berry family was tired of pouring their own money into the resort and didn't feel it could make a profit without increased lift capacity. They wanted to find financing instead of using their own money, but due to the financial facts, couldn't justify the loan. They tried to force the hand of the government for a guaranteed loan by saying they wouldn't open and the economy would struggle, but the government didn't bite. Saddleback sat idle with a perfectly operational lift and the economy (both ski and snowmobile related) struggled.

 

Bingo

 

Saddleback could have opened they chose not to. Jay will be open too much money around to throw it away on bullshit. NEK gov't entities will pony up the necessary backing on 4mil worth of loans if necessary.

 

Outside of VR and shit the mts that work are those in which the P&L's are rounding errors in a much much larger enterprise, think Aspen resorts. Ski Co is owned by the Crowns who are JPMC and General Dynamics a couple mil loss or profit is essentially irrelevant to their situation.

 

If your hill isn't going to be owned by one of the mega conglomerates and isn't a one off cash cow type dealio your only future is to be owned by one of those types.

Edited by Johnny Law

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