Vail Resorts buys Park City
for $182.5 million in cash
BROOMFIELD, Colo. — The uncertainty that has created jitters in Park City, Utah, has ended. Vail Resorts announced today it has purchased Park City Mountain Resort from Powdr Corp for $182.5 million in cash, subject to certain post-closing adjustments.
The acquisitions includes all assets, including the land used for ski terrain at the resort held by Ian Cumming, and certain base parking lands, which have approved zoning for 687,000 square feet of residential and commercial development.
Powdr retains the Gorgoza tubing operation, located 10 miles away.
With the acquisition, all aspects of the previously disclosed litigation with respect to PCMR have been settled and this dispute will no longer pose any future threat to disrupt the operation of the resort, according to a press release posted at the Vail Resorts website.
Powdr owns roughly the bottom third of the mountain and had leased the top two-thirds of the mountain from Talisker, the owner of Canyons. However, Powdr failed to a perfunctorily renew its annual lease for the property as required by terms of the lease, as had been specified by a previous owner of the property. The lease terms were considered extremely favorable to Powdr. Talisker then set out to evict Powdr.
A year later, Vail Resorts took over Canyons in a $25 million-per-year deal and also the litigation against Powdr. In May, a judge sided with Vail. The two sides then went into mediation while towns people nervously awaited confirmation that the ski area would continue to operate this coming winter.
Vail Resorts said it intends to operate Park City Mountain Resort as a stand-alone ski area this year, as the ski area has been operated in past winters, but will connect it with the Canyons for the 2015-2016 ski season.
With that connection, the two will become the largest single ski resort in the United States with 7,000 skiable acres, now larger than Vail’s flagship operation, Vail Mountain. The interconnection is subject to regulatory approvals.
However, PCMR will also be included in the Epic Pass for the 2014-2015 ski season.
Blaise Carrig, president of Vail Resorts, will act as interim chief operating officer for the resort.
Park City Mayor Jack Thomas said the city is “pleased there is a resolution that secures our community’s economic future. We have come to know Vail Resorts’ organization and look forward to a collaborative working relationship with its CEO, Rob Katz, and his team.”
Thomas went on to recognize the founders and current owners of Park City Mountain Resort. “We will be forever grateful for the vision and foresight of Edgar Stern, Nick and Craig Badami, John and Kristi Cummings, as well as Jenni Smith and the thousands of employees over the years who have contributed to the success of Park City Mountain Resort and this amazing town we are privileged to call our home.”