Killington Peak.
The snow says it all! 

OK... I must be getting old.

For the last several years, the Killington resort has run a viral marketing campaign in an attempt to attract people to the resort. As most of the advertising dollars for Killington had been siphoned away by the parent company, ASC, in an attempt to stay solvent, the Killington Resort was left pursuing a low cost approach involving email news letters (aka "The Drift) and email snow reports. One can argue the effectivity of the campaign, visitors to Killington have steadily declined during the period, but every now and then something sneaks into the report that stops you in your tracks. Todays report caught my eye...which actually is what it is supposed to do.

Buried inside todays snow report you will find the comment.."Make sure you check out the Mountain Dew Vertical Challenge today and if you're looking to get steezy yourself check out Bear Mountain terrain parks on Bear Trap, Dream Maker - which features 20 progressive hits, rails and boxes - and the 430-foot long Superpipe!" Seems pretty marketing oriented... a list of features, an event, a call to action... wait a minute... "steezy".. what is that?

A quick google search provides the answer "a SNOWBOARDER term that combines the word "Style" with "Ease" to create the act of doing a trick with style and ease to make it done with super steez. A rider with steez would be referred to as "steezy" whether it be because of his/her sick tricks, gangster aparrel, or watevs". ??? Huh???Gangster snowboarding ??? at Killington???? This is how we bring people to Killington ???

There are a lot of curious things going on in the marketing of various activities across the country, including the snow sports industry. There is even a standard term, "Gangster Marketing", which describes what the Killington Snow Report is trying to accomplish. But do "Pop Culture Gangsters" read the Killington Snow Report and then decide to come to Killington for the day??? Or do their mother and fathers? Think about that one.

"It's all about the snow...." Let it snow!

East Falls
It did not look that crowded
when I skied it 90 seconds earlier! 

Unfortunately, we did not get 6 inches of fluff from the precipitation last night, so Mary did not wake me up for the first morning chair. But when my alarm went off at 9:00 AM (I did go to bed at 3:30 AM the night before) and I saw a brilliant blue sky, I needed to escape the inn for a trip to the mountain. By 10:00 AM, I was putting my boots on beside the Snowdon Quad and I was ready to go.

It was just a quick one hour journey around the mountain this morning. For those of you interested in a quick loop, I took the Snowdon Quad to ski East Falls. From there, I took the Canyon Quad for a run down Launch Pad to Middle Superstar to Low Road to the Needles Eye Chair. From the Needles Eye Chair, I looped down Needles Eye back to the Needles chair, for a run down Bitter Sweet to the Superstar Chair. Off the back of Superstar, I wandered around to get over the the South Ridge Triple. From South Ridge, I crossed back for a run down Cascades, back to the car in the parking lot. 6 chair lifts, plus or minus 15 miles of skiing, on mostly blue and black trails. A nice little work out with a little sight seeing thrown in.

Conditions on the mountain today were pretty good, considering all of the snow and holiday skiers we have had the last week. Crowds were very light for a Friday. I literally skied on to every lift without stopping. Of course, I stayed away for the K1 base area, and the Skye Ship mid station to avoid crowds.

The weather looks like it will be perfect for skiing and riding all weekend. Light snow is forecasted for tonight and tomorrow to keep the surfaces fresh with intermittent sunshine to brighten things up. Let it snow!

Storm Clouds over Killington Peak.
White stuff in the forecast! 

It's winter time in Killington. I should be out skiing!

The good news for Mary and I this Presidents Holiday week is that the inn has been pretty busy. The bad news is that we have not had an opportunity to get up on the hill for a few runs down the mountain. And I miss it.

Oh sure....We have been getting outside for walks around the block, or to move snow around the inn with various contraptions. But it is not the same. There is a certain exhilaration that occurs when you are cruising down the mountain that is not satisfied by just being outside in the cold mountain air. Anyone who has more than casually strapped skis or a board on their legs knows what I am talking about.

Of course, I can hope that the clipper coming thru tonight would dump at least 6 inches of fluff on us. Then I could declare tomorrow a powder day and go to the hill without guilt. We can all hope! Let it snow!

In the last 24 hours, more information is starting to filter out concerning the sale of Killington by the American Skiing Company (ASC) to SP Land LLC. The Rutland Herald has several good background articles on the sale and on Killington and Pico published in todays paper. The Salt Lake City Tribune has also published an article from a Utah perspective. Around town, of course, it is basically the only thing people are talking about. Rumor and speculation still abounds, so I think a little local perspective is in order.

First --- what we know...

1. On or before April 30th, ASC intends to sell the remaining assets of Killington and Pico Ski Resorts to SP Land LLC for $83.5M plus debt transfer.
2. SP Land LLC is a privately held corporation that is an affiliate of SKI Partners which is an affiliate of E2M Partners. All are private equity companies. There will be little further public comment from any of them unless they want to make information available.
3. SP LAND LLC moved it's president, Steve Selbo, to Vermont in 2004 as part of the original acquisition of land from ASC in a previous ASC restructuring. Mr Selbo has been investing time in the community since then working with ASC in an attempt to reach agreement to proceed with developing those properties.
4. Developments discussed publicly have included a Ski Village at the base of Killington, and various condominium, hotel, and private home developments. To date, no development has taken place. At this point, Act 250 permits have not been submitted to the state of Vermont.
5. While many have questioned the $83.5M price for the Killington and Pico Resorts, one must remember the original $58.5M investment by SP Land. That brings the total value to ~$142M, not including any SP Land operating expenses since 2004, for what most people call the Killington and Pico Resorts.
6. ASC has publicly stated that they will operate Killington to high standards through the close of the purchase agreement on or before April 30, 2007.
7. While not mentioned in the ASC filing to the SEC, in public statements ASC has made it known that Powdr Corp, a privately held corporation, will be forming a partnership with SP Land to operate the Killington and Pico Ski Resorts.

What we don't know...
1. After the closing date, how will the Killington and Pico resorts be operated?
2. What are the equity splits, if any, between SP Land and Powdr Corp? In other words, how much skin is in the game for each?
3. How much will be invested in the current ski infrastructure to improve the Killington/Pico ski experience? What will be the rate of that investment?
4. How will Killington and Pico be marketed to the public in the future?
5. When will the overall plan to develop Real Estate around the resort be publicly presented?
6. When will Act 250 permits be submitted to the state of Vermont?

Of course, what we don't know, we may never really know as all of the companies that will be involved in the future of Killington and Pico are private firms. However, while the specific details may not be completely transparent, the Killington and Pico resorts are very public places. Under the new owners, it will be very easy to determine their level of investment in the community, just as in the last few months it has been very easy to understand that ASC has been un-investing in the community. Killington is long overdue for a turn around. It will be fun to live here while it is all happening.

American Skiing Company announced the sale of the Killington and Pico Ski Resorts, plus all other properties in the Killington area including the Wobbly Barn to SP Land Company for $83.5M. The deal, which also includes the assumption of $5M in debt by SP Land is set to close by April 30. Public details of the transaction have been posted with the Securities and Exchange Commission and can be viewed in the SEC's Edgar database.

SP Land is an LLC who majority owner is Eiger Investments. SP Land was formed in 2004 to acquire the development rights to real estate in the Killington area to develop a Village and other properties at the base of Killington. It acquired the real estate, valued at $58.5M from American Skiing Company during a financial restructuring in May 2004. At the time, it was reported that Killington LTD, the operating company for the Killington Resort wholly owned at the time by ASC, held a 25% stake in SP Land.

While no other information on the sale has been provided publicly, we have been receiving calls from friends who work at the resort who have participated in meetings this morning to announce the transaction. Previously, it was rumored that Powdr Corp of Park City Utah would be purchasing Killington from ASC. While Powdr Corp is absent from any of the public pronouncements, employees are being told in some of the meetings that Powdr Corp will be brought in by SP Land to help operate the resort, after completion of the transaction in April.

It should be an interesting spring. Let it snow!

3:45 PM Update - Letter from B.J. Fair CEO of ASC to ASC Employees
with more information on sale and role of Powdr Corp

To: All ASC Employees
From: B.J. Fair
Date: 2/20/07
Re: Sale of Killington and Pico

It is with mixed emotions that I inform you that we have entered into a definitive agreement to sell the Killington and Pico resorts. We had hoped to announce this transaction simultaneously with Mount Snow and Attitash, however extended negotiations prevented us from doing so.

As was the case with our other recently announced sales, this decision was not made in haste nor ever taken lightly. Since our real estate restructuring in 2004, it became apparent that future real estate development at Killington and the resort operations would be best controlled by a single owner. Our ongoing discussions with SP Land and their current interest in the real estate at Killington led to their purchase of the Killington and Pico resorts for $83.5 million, plus $2 million of capital leases as well as other liabilities.

Though challenging from a personal and professional perspective, it is in the company's best interest to realize the opportunities created by the performance of our resorts and the current favorable market conditions. While parting with the Killington and Pico teams will be difficult for many of us, the value created for the company's stakeholders is tremendous and will leave us with substantial liquidity to focus on our remaining operations in Maine and Utah. As I wrote to you on Friday, the sale of five of our resorts will have a significant impact on our organization. I want to reiterate that we are aware of these impacts, and we will be meeting with employees as soon as possible to discuss these changes.

The transaction is expected to close by the end of April. Concurrent with the closing, SP Land and Powdr Corp. will have formed a new venture to operate Killington and Pico. Powdr Corp., based in Park City, UT, is an established operator of six winter resorts in the western U.S. Prior to the close of the sale, Killington and Pico and all of our other resorts will continue to operate under the normal course of business without interruption. We will work with the SP Land and Powdr teams during this period to facilitate a smooth transition at Killington and Pico.

With winter a bit late in arriving in the East, many guests will be arriving for the first time at our resorts in the coming days. Our guests have come to expect a very high standard of each of our resorts, and we will continue to offer the same service that has become of hallmark of ASC. Again, I am counting on your professionalism, consideration and support as we work through this transition period. Thank you.

B.J. Fair
President and CEO

Killington Peak 

As I look out my office window, I see beautify snow capped mountains with a bright blue cloudless sky. It looks warm and inviting. What a total fake out!

Stepping outside to take the snow stake picture this morning, I was greeted with -2 degrees and a very blustery wind. When I drove up to the mountain to take a picture of Killington peak, I encountered more of the same. Inn guests and friends did go out this morning for a few runs, but most made a hasty retreat to the various Killington base lodges, or their favorite mid day watering hole. All of this is supposed to pass this evening as a clipper system moves through the area. Of course, while it will get warmer for tomorrow, snow and clouds will return, replacing todays bright sunshine. Let it snow!

Snow Falling at Birch Ridge 

Presidents holiday weekend is in full swing at Killington with light snow continuing to drape the area in a blanket of white.

While I have not had the opportunity to get out on the slopes in the last 2 days, my friends are reporting that once the mountain worked through wind delays on Saturday, that skiing and riding were fantastic. Of course, because of the wind, some of the conditions were variable. Waist deep powder is being reported from most of the less travelled woods trails and various secret stashes. Superstar on the other hand has been scoured clean by the wind so in comparison to most of the other trails it is skiing a little slick. Devils Fiddle and Vertigo and Ovation were all reported open with good coverage. Overall, it should be a great holiday week for skiing and riding at Killington. Let it snow!