Killington Town Hall Sign 

At a meeting last night in the Killington town offices, executives from Powdr Corp, Chris Nyberg, and SP Land LLC, Steve Selbo, met with the Killington Board of Selectmen to discuss their views on the operations of the Killington Resort. According to people directly involved in the meeting, the overall presentation indicated that the resort would be operated with more focus, aimed at improving overall profitability of ski operations.

A note widely circulated around town this morning from a meeting attendee, and quoted with permission below, commented that Powdr Corp plans discussed last evening included the following:

1. Powdr will make modest capital investments next year, in areas that will not be totally evident to most people. (Note from Bill.. In prior public statements, Powdr had stated that they will be spending much of their time and initial development dollars improving resort infrastructure to enhance the guest experience. But many of the improvements would, by their nature, be invisible to resort guests.)

2. Skier visits will probably drop, as a reaction to higher prices and fewer give aways. All programs involving free skiing, including programs involving local students will be reexamined.

3. Powdr's emphasis will be on higher margins from fewer skier visits, resulting in more profits(higher yield per skier).

4. Future capital investment will be funded from profits/cash flow. Funding will be at a maintenance level until profits make more possible.

5. Major lift improvements will wait for profits. Adjustments might occur in lifts where it makes sense to accomodate/enhance skier traffic and improvement of skier enjoyment.

6. Marketing will be done by a small group of highly skilled people. The effectiveness of marketing dollars will be closely monitored and scutinized to assure payback to the ski resort.

7. Internally managed and run programs will be favored over outsourced/local contracts.

8. Emphasis will be on winter, not summer guest traffic.

9. The interconnect is probably at least five years away, more likely 10 years , based on profitability/turnaround/ real estate sales.

10. Impact of lower skier traffic will not be the primary concern. More emphasis will be placed on higher margin busines with fewer guests. Fewer guests will not mean that less emphasis will be placed on real estate development. Real estate development may be focused on high end real estate/ high margin business.

11. Real estate development is a 25 year project. A lot needs to be done to get it started. Partners wil be considered in high risk investments.

12. Powdr and SP Land have minority investments in each others business..

From the perspective as a Killington business owner, it is too early to tell what this all means. On the one hand, I totally understand the need to drive the resort to profitability. That is the only way, long term, for a business to sustain itself. I also appreciate the need to immediately improve segments of the resort operations which may not be directly visible to resort guests, provided that the net effect is to improve the overall guest experience.

It is hard to react to the comments concerning skier visits and marketing, as both have been declining in recent years under previous resort management. In recent years, with the advent of a variety of very low cost seasons passes, ASC had changed the nature of the resort, resulting in an increase in day skier traffic and a decline in long term visitors. Those changes did not improve the resort. In my opinion, as an innkeeper, re-aiming the resort to providing a quality experience for people spending multiple days visiting the resort is a good thing, if that is the message Powdr is trying to give. Only time will tell...So it goes.

P.S. Don't forget your sunscreen.

Johnny Boys Pancake House
on the Killington Road 

Since we have returned from Ireland, the weather at Killington has been very good. So having a rainy day today was not a bad thing. Instead of an 8:30 AM tee time this morning at Green Mountain National, the group I was scheduled to play golf with got together at a great place for breakfast on the Killington Road, Johnny Boys Pancake House. I went the traditional Bacon and Eggs route (sunnyside up). Within the group we also had an omelette, pancakes, and a Johnny Boy - something like Eggs Benedict only with a jalapeno cheese sauce replacing the hollandaise.

Of course at breakfast we solved all of the worlds problems (we should be congratulated for that) as well as comparing notes about what is going on around town. The biggest thing on deck in town, of course, is the new ownership of Killington. Nothing new to report on that front, as the new owners have taken a decidedly low profile. Rumor has it that season pass prices will be released for the next ski season later this week, but other than that it is very quiet in town.

At the inn, the day without golf has helped me catch up with some of the other items on my plate. Most of my work at the inn over the next couple of weeks will be related to re-opening the restaurant at the end of the month, as well as menu preparation for the upcoming Killington Wine Festival in the middle of July. Until then, if you get out on the course in the near future, keep it in the fairway, and don't forget the sunscreen.

Charlie Brunell
driving the ball on Hole #11
at Green Mountain National Golf Course. 

Yesterday, Mary and I had the privilege to play in the Jeff Hadley ALS Golf Tournament at Green Mountain National Golf Course. Jeff was the first head professional at Green Mountain. Unfortunately, he succumbed last year to ALS, Amyotrophic lateral sclerosis, sometimes called Lou Gehrig's disease.

(For those of you who did not have a chance to meet Jeff, he was a dedicated golf professional, an ardent promoter of summer in Killington, and a really nice guy. Killington is a very small community. Jeff had many friends here and is truly missed.)

Yesterdays tournament at Green Mountain saw approximately 175 players tee off to support ALS research. All proceeds from the tournament, including the $125 entry fee and proceeds from a silent auction are being dedicated to fund research into identifying a cure for Familial ALS, the type of ALS which unfortunately is genetically passed through Jeff's family.

At the tournament, Mary and I paired up with Nina Tasi and Charlie Brunell, former owners of the Fox and Pheasant Inn. We were joined by Mark Larrabee, head professional at Eastman Golf Course in Grantham New Hampshire. I am happy to report that our team carded a 61 for a net 50, taking first place net for the tournament.

While yesterday does not make up for the loss suffered by Jeff's family, it was a very nice day to pay homage to a true gentleman who shared with all of us his love for the game of golf.

Peter Lynch looking in the cup
for his ball on Hole #7
at Green Mountain National Golf Course. 

Congratulations go out to Peter Lynch who shot a hole in one this morning on the par 3 Hole #7 at the Green Mountain National Golf Course. From the white tees, with an 8 iron, under beautiful blue skies, Peter's ball hit the front of the green, took 2 bounces, seemed to stop briefly, then disappeared from view into the cup.

Witnessing the event, and sharing a celebratory beverage on the 19th hole later in the day, was Howie Barbash, Norm Holcomb, and Bill Vines (aka yours truly). It was a really nice day for a round of golf. Congratulations Pete!

Gus O'Connors Pub, Doolin Ireland 

Note from Bill: Mary and I were fortunate to be able to visit Ireland on vacation earlier in the month of May. This posting is the 4th and final posting of a 4 part series on our adventure.

For our last 2 full days in Ireland, we bid Killarney goodbye and headed out through the Irish countryside to a little seacoast town in county Claire called Doolin for a stay at a charming B and B called Daly's House. The initial part of the trip was uneventful. The road between Killarney, Limerick, and Shannon is actually a real divided highway in many places.

Ennistimon cascade in Ennistimon Click to enlarge

To the west of Shannon, we left the divided highway and once again proceeded down what passes for numbered highways in Ireland. About 20 kilometers west of Doolin, we arrived at the town of Ennistimon where we decided to do lunch. Ennistimon is a little village that is stuck in time. There are huge developments taking place on the resort beaches to the west of Ennistimon. We saw many cars loaded with wind surfing equipment. But Ennistimon did not try to cater to the traffic that was passing through it. The town has several nice little pubs, which did not appear to serve food mid-day, and a nice little restaurant where Mary and I sat and relaxed for a few minutes. Just behind the village is a moderately sized waterfall complex called the "Cascade". In days gone by, the village used water power in its now empty small factories. At some point, I expect it will become a regular stop for people touring Ireland, but for the time Mary and I were there, we had the walk along the waterfalls all to ourselves. And we did not have to pay a 10 euro admission fee to boot.

After lunch, we headed back out to complete our day's journey to Doolin. We had about 20 kilometers to go, and felt pretty good right about now about our skill in navigating the Irish countryside. Just as we entered Doolin, we stopped by the side of the road to pull out the directions to Daly's House. While parked on the side of the road, a car raced towards us....Big Wack... our side mirror was now torn off the car and in pieces. The car that hit us sped off, never to be seen again. (If you see a gold colored Ford in Ireland with no right side mirror...Call me!) Oops.. we did not have the extra insurance. Luckily, there was no other damage, and more importantly no one was hurt. We were able to settle with Hertz for just over 200 Euro's when we brought the car to Shannon the next day.

Rental Car sans passenger side mirror Click to enlarge

Fresh from our little excitement, we arrived about 10 minutes later at Daly's House in Doolin. Daly's House is run by Susan Daly, a strong petite irish woman. She greeted us with a cup of tea, called the police for us to file and accident report, and told us about the area. One of the main reasons to visit Doolin is the Irish Music played in the several pubs in town. As I was getting thirsty, Susan directed us to take a 100 meter walk down the lane to Gus O'Connors pub. (Susan, by the way, used to be the owner and head bar maid in the place prior to selling it several years ago.)

Gus O' Connors Pub is one of the most famous pubs in Ireland. It is reputed to be the home of Irish music, and it is truly a special place. Each night, in the center of the pub, a table is left empty with a reserved sign on it. Local musicians wander in with their instruments and sit at the table, The bar tender provides them with their favorite beverage, usually of the malt variety, but I also saw a lot of hard cider. And then the musicians start playing. Irish folk songs, various ballads, bar patron requests, you name it, who ever is sitting at the musicians table plays what ever they want. Our first night in Doolin we got to O'Connors about 6:00PM. We actually wound up sitting at a table with another couple from Vermont. Many, many Guinness, and Jameson's later, we stumbled out around 1:00 AM. If the other couple did not have a plane to catch back home in the morning, I think we might have gone all night. O'Connors is that type of place. If you go to Ireland, and are in County Clare, it should not be missed.

Gus O'Connors Pub In Doolin Click to enlarge	Irish Singers In Gus O'Connors Click to enlarge

The next day, feeling surprisingly spry, we headed out to tour the countryside. Our first stop was the scenic Cliffs of Moher. Rising about 800 feet out of the North Atlantic, the Cliffs of Moher provide a stunning commentary about the linkage between Ireland and the sea. Rising straight up, the Cliffs are filled with all kinds of nooks and crannies which provide nesting space for countless sea birds. One sad point about our visit to the Cliffs was the commercialization of the area. Susan Daly told us when we returned to her guest house that the Cliffs receive over 1 million visitors per year. The European Union has just completed a $31 Million Euro project (about $40M at current exchange rates) to build a visitors center and walkways set back off the Cliffs to handle the crowds. While we were there, it was relatively peaceful and uncrowded with only a few tour buses in the parking lot, but the development along the Cliffs to handle visiting crowds is massive.

The Cliffs of Moher Click to enlarge

As a side note, I am sure that some development was necessary. The EU did not remove the old pathway on the edge of the Cliffs. I would imagine, that if 1 million people have been visiting it for a few years, more than a few tourists experienced a 800 foot dive off the cliff edge into the Atlantic. But no more.

After our visit to the Cliffs, we headed north down some very small country roads out into the Burren. The Burren, or "Rocky Land", is a vast plateau of limestone deposits stretching from the sea several miles inland in Country Clare. The limestone deposits are scarred by channels scoured by rain. Over the years, the channels have accumulated small amounts of dirt, in which many strange small flowers have taken root. Scattered throughout the Burren are ancient settlements. As the rock is basically impenetrable, you will also see the remains of ancient burial chambers spread out across the Burren.

in the Burren Click to enlarge

On our way back through the Burren, we took the coast road from the village of Black Head. I have driven the Pacific Coast Highway, so I have seen roads built on the sea coast in mountainous areas, but the views from Black Head to Doolin were out of this world. The barren, foreboding, other worldly Burren was to your left. The deep blue, wave cresting, boiling Atlantic was to your right, many times literally hundreds of feet down from the car door. It was a beautiful way to finish our tour around the southeast of Ireland.

That night, we headed back to Gus O'Connors for one last taste of the good stuff made by Irish brewers. With our vacation coming to a close, we were both relaxed and exhilarated at the same time. We had navigated through Ireland. Met a lot of very nice fellow innkeepers. Tasted our fill of various Irish nectars. Like all vacations, it was too short, but it was also time to go home to Killington.

Mary and Bill hoisting a glass goodbye to Ireland at Gus O'Connors Pub Click to enlarge

The next morning, Susan Daly cooked us our final Irish breakfast of the trip, we settled our bill, and headed out one last time down little Irish country roads. At about 1:30 in the afternoon, our plane took off from Shannon Airport for the trip across the Atlantic. By 4:30 PM, after just under a 6 hour flight, we were through customs and in our car heading back to Vermont.

I do miss the pubs. I need a Guinness!

Mizenhead Light Station,
the southwest tip of Ireland 

Note from Bill: Mary and I were fortunate to be able to visit Ireland on vacation earlier in the month of May. This posting is the 3nd of a 4 part series on our adventure.

As we left Kinsale on our 5th day in Ireland headed towards Kerry and the Friars Glenn Country House, we still did not have a true appreciation of Irish country roads. We only had about 200 kilometers to travel on the route we had planned for the day. For a number of reasons, it is a ride we will not soon forget.

Molls Gap at on the road to Killarney Click to enlarge

It started out calmly enough. The route we selected aimed us at Mizenhead Light Station, the furthest point southwest in Ireland, before turning north for the ride through the mountains to Kerry. As we are tooling through the Irish countryside, the roads started to get very narrow. By the time we got to Mizenhead, the road was barely 1 lane wide. Mary had a firm grip of the sissy handle on the passenger side as many time we were careening into the bushes on the side of the road to accommodate oncoming traffic. With about 20 kilometers to Mizenhead, the road narrowed again. It was basically a path that sheep would take between fields. And this was a numbered highway twisting around seaside cliffs. I spotted a tour bus about 1 km ahead of us heading in the same direction. For once in my life, it was a welcomed sight. I sped up to get snuggle right up behind the bus. It did a great job of clearing the road for the last 15 kilometers to the light station.

The scenery at Mizenhead Light Station is breathtaking. Set on jagged cliffs jutting out into the Atlantic, you can get a real sense on how the ocean has shaped life in Ireland. The western Irish coastline is basically a collection of cliffs, with little bays and protected harbors interspersed amongst the rocks. Mizenhead Light Station was originally built to guide mariners around the southern tip of Ireland as they crossed the Atlantic from the states headed towards Kinsale and Cork.

Friars Glen Country House in Killarney, County Kerry Click to enlarge

From Mizenhead, we turned north on our way to Killarney. Our route took us across the Caha Mountains and the Macgillicuddy Reeks, passing through the principle towns of Bantry and Kenmare along the way. This part of Ireland ranges from lush green farms to desolate mountain peaks devoid of color. There are any number of mountain gaps and passes which were traversed along the way, as well as several mountain tunnels. While being a pretty ride, because the roads were through the mountains it was also quite tiring. Our little rental car was breathing hard in several places as we crested some mountain peaks. Not to mention the constant shifting required to negotiate the many mountain switchbacks. We were very happy when we reached Killarney.

Muckross House In Killarney Click to enlarge

We stayed in Killarney at the Friars Glen Country House. It is a beautiful 10 room bed and breakfast on the outskirts of Killarney right beside Muckross House and Gardens. Mary Fuller, the innkeeper, was gracious beyond belief, providing us with delicious morning breakfasts and afternoon tea. Once she found out we were innkeepers in Killington, she made sure that she took our brochure, as she and her husband always take a ski vacation each winter.

Killarney is a rich environment for a visitor. There is just so much to do. We were getting tired of driving, so we decided not to drive the famous "Ring of Kerry". Instead, we spent most of the time hiking around the area. Next to Friars Glen was the Muckross House and Gardens, set on Muckross Lake. The grounds of Murkross House feature a 10 KM walk around the lake. It was just a delightful day. And we were walking on little Irish roads instead of driving on them.

Parade in Dingle Click to enlarge

The one day it rained consistently during our whole trip, we decided to visit the Dingle Peninsula. Dingle is a little fishing village/artist colony about 100 km east of Killarney. The ride was very pleasant with charming little villages, picturesque farm vistas, and any number of ocean inlets and bays to attract ones attention. When we arrive in Dingle, there was a local festival underway with marching bands and street entertainers, all performing in a driving rainstorm pretending it was a beautiful sunny day.

All told, the Killarney area was a welcomed break from our driving tour of Ireland. We stayed in Killarney for 3 nights. We had a chance to settle in, visit many nice pubs and restaurants, and casually tour the area. It is one spot we would go back to the next time we visit the Emerald Isle, but probably with our golf bags instead of our driving gloves.

Golfers on the 8th hole on
the Green Mountain National Golf Course
at Killington playing in the
Thursday Night Scramble 

Putting the public relations debacle of the lifetime pass issue aside, I am very optimistic about Killington with the sale of the resort by ASC to SP Land and Powdr Corp on May 11th. Since February when the announcement was made by the American Skiing Company that they were going to sell Killington, I have received numerous requests from inn guests and blog readers to comment. As the ski season came to a close in April, I doubt that there was a single guest at the inn who did not ask a question about the then pending sale. With the successful completion of the sale, it is appropriate too look forward to the implications of Killington under new ownership.

In writing this, I have a couple of caveats which are important. First, other than synthesizing conversations that have taken place with many people over the last year about the future of Killington, I have received no formal briefing nor do I possess any direct knowledge about how the new owners, in particular Powdr Corporation, intend to operate the resort. Second, I do have a vested interest in the resort being operated successfully, as I am a Killington resident and business owner, being the innkeeper of the Birch Ridge Inn.

As background, let's look at the transaction which took place on May 11th. On that date, the American Skiing Company transferred all of the assets from all of the subsidiaries and corporations owned by ASC for both the Killington and Pico resorts to 3 different entities, MBT Killington LLC, AMSC Killington LLC, and SP II Resort LLC. In the process, ASC effectively ended the continuous chain in the business life of the resort starting with the Sherburne Corporation and including Killington LTD, and Ski LTD among others. MBT Killington and AMSC Killington are both entities created by Powdr Corporation to operate as yet undefined segments of the resort. (The MB stands for Mount Bachelor and the AM stands for Alpine Meadows, both of which are resorts currently owned by Powdr.) SP II Resorts LLC is the next generation of SP Land LLC. SP Land originally entered the Killington lexicon 3 years ago as part of a financial restructuring on some of ASC's debt. SP Land is publicly on record as taking responsibility for the future development and implementation of a Village at Killington, including both residential and commercial properties. Concurrent with the sale, Powdr Corp announced the appointment of Chris Nyberg as the new President of Killington responsible for mountain operations. SP Land reaffirmed the position of Steve Selbo as President with his charter to do real estate development. Missing from all of the announcements was any statement concerning the senior staff previously employed by ASC to run Killington, including the future of the president of Killington during ASC's ownership, Allen Wilson. Also concurrent with the sale was the transfer of all leases of public lands owned by the State of Vermont from ASC entities to the new resort owners.

It should be noted that both Powdr Corp and SP Land are privately held corporations with no requirements to report on their business activities to the general public. ASC is still a publicly held company. Documents relating to the transaction from ASC's side of the deal have been provided to the Securities and Exchange Commission and are available for public inspection on the SEC's Edgar online Database of corporate documents.

So what does this all mean for people who visit Killington (and guests who stay or dine at the Birch Ridge Inn)?

In simple terms it means that Killington is back!

Killington is a great winter and summer resort. In the 70's and 80's and most of the 90's, Killington was the premiere resort destination for skiing on the east coast of the US, bar none. When ASC purchased Killington 10 years ago from the resorts founder, Preston Leete Smith, ASC invested over $50M dollars in improving the resorts infrastructure. In particular, ASC installed new high speed gondolas, and built a water distribution system tapping the Woodward Reservoir in Plymouth VT to feed Killington's voracious snowmaking system. The last 5 years have not been kind, to say the least, to ASC and by association to Killington. ASC, in severe financial difficulty, had quite visibly cut corners on resort maintenance, operations, and marketing of the Killington resort. The new owners have made it abundantly clear through the local grapevine, and limited public statements, that they intend to restore Killington to a preeminent position as a destination resort.

In the near term, it is difficult to say what physical changes will take place at the resort. Any discussion on new lifts, or base lodges or village construction is purely speculative. Even though Powdr and SP Land are private companies, any activity they take in the construction area will be very visible publicly, starting with the myriad permits they would have to file with the Town of Killington and the State of Vermont. That not withstanding, I do believe that there will be significant cosmetic changes to the resort which should be visible to visitors very quickly in the form of a cleaner, freshly painted, more efficiently run operation, all aimed at immediately improving the Killington guest experience. ergo...Killington is back!

While it is natural to focus on the physical changes at Killington, I also perceive the potential for some significant, positive, unintended consequences of the break-up of ASC and the sale of Killington for Vermont, resorts in the Northeast, and the ski industry in general.

Over the last 10 years, the ski industry experienced mega consolidation. In the Northeast, ASC was effectively the largest single operator of ski resorts. This unfortunately had a corrosive effect on the ski industry, and travel and tourism in the northeastern US in general.

Prior to moving to Killington full time, Mary and I resided in the Boston area. In the 70's, 80's and early 90's, Boston saw intense competition from ski resorts to attract people to skiing, and to create a mindset of traveling to the mountains for recreation. Adults playing in the snow was the "in" thing to do. That message was constantly being reinforced by every ski resort via the marketing vehicles of the day including TV, radio, billboards, direct mail and ski magazines. In Boston, you could not get away from it. Killington, Mount Snow, Sugarbush, Stowe in Vermont were all household names. Ski 93 in New Hampshire became famous. And of course Sunday River and Sugarloaf in Maine were also trying to be invited to the party. Ski resorts genuinely competed for skiers. It sounds so basic.

But in reality, when ASC came along everything in the Northeast changed. In the Boston market, ASC effectively stopped advertising Killington, focusing the message on Sunday River instead. When ASC ran into financial difficulties, they significantly cut their advertising. Have you seen an ad for Killington produced by ASC in the last couple of years... No.. I though so. And guess what.. because ASC curtailed their advertising, the other Northeast resorts felt that they could cut back as well. So winter sports in the mountains fell from it's place front and center in peoples minds. The skiing population started to shrink as new skiers were not being added to the pool to make up for aging baby boomers departing the scene. The business of skiing for northeast resorts was literally going downhill, no pun intended. But I perceive that we are about to witness a change.

The demise of ASC has created an environment where intense competition should be re-ignited in the Northeastern US. Instead of one ASC entity marketing skiing with a highly segmented geographic message and very limited funding, there will be at least 3 new entities attempting to attract visitors (Mount Snow/Attash, Sunday River/Sugarloaf, and Killington/Pico). Because of the increase marketing of the now separate former ASC resorts, other resorts within the Northeast will have to turn up the volume of their marketing messages to be heard as well. And all of the resorts will be telling people to participate in winter sports, and visit the mountains of Maine, New Hampshire and Vermont. In the marketing business, getting your message out is what counts. More impressions generate more business. Hence the unintended consequence of the purchase of Killington by Powdr and SP Land, and the demise of ASC, in the near term should be a resurgence of the winter sports industry in the Northeast as people get saturated by marketing messages about winter resorts. Of course, early on there will be cannibalization of skier visits as one resort attracts a larger audience of existing skiers that in prior years had previously played at other resorts. But ultimately the renewed marketing efforts of the industry will grow the population of people participating in winter sports as a whole. In marketing speak, the pie will get bigger. The winter sports industry as a whole will benefit as well as the states of Vermont, New Hampshire and Maine as new visitors flock to the mountains. (or so I hope... I am an innkeeper afterall!)

It is impossible to tell how it will all play out as the new owners of Killington come to grips with the opportunity they have purchased. But life in Killington has just gotten a whole lot more interesting again. Come to Killington... it's a great place to visit. You might decide to stay a while. Mary and I did!