PolarisCobra

Balsams News - Can't be good

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This is the content of an email I got today. I really do hope they can figure out a way to get opened up again in some form. 

 

THE BALSAMS CONTACT US
mail?url=https%3A%2F%2Fthebalsamsresort- mail?url=https%3A%2F%2Fthebalsamsresort-

THE BALSAMS-VISION.

 

FOR IMMEDIATE RELEASE

DIXVILLE, N.H. (August 27th, 2018)

"The Balsams Resort redevelopment team, through its lead lender Service Credit Union (SCU), has withdrawn its application for a loan guarantee through the New Hampshire Business Finance Authority (NH BFA). Despite collectively working with all parties for several months to find a collaborative solution to advance a $28 million Tax Assessment Bond with a State of New Hampshire Loan Guarantee, the conditions ultimately required by the Authority do not allow SCU and the Balsams to proceed.

SCU, the state’s largest credit union, began working with The Balsams in the spring of 2017, filling the role of lead lender relating to the $28 million loan. An application was submitted by SCU to the NH BFA in December 2017. After spending many months working through the Authority’s process, the withdrawal results from positions taken by the NH BFA on loan guarantee conditions that were unfortunately not contemplated by The Balsams and are inconsistent with its historical understanding of the proposed transaction."

To learn more, please feel free to click here to read the entire press release.

Sincerely,
The Balsams Team

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That does not sound very good, hope they bring the place back on line, love that place, great people, great sledding

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2 hours ago, PolarisCobra said:

This is the content of an email I got today. I really do hope they can figure out a way to get opened up again in some form. 

 

The NH-BFA was reluctant to assist here because they questioned the economics behind the project. The BFA would guarantee the $28 million loan, and "all property taxes paid on all future Balsams real estate assets will service the $28 million loan." The town, county, or state will not get any property tax proceeds, the money will go towards improving the cash flow of the corporation building the project. Does that sound like a government subsidy to you? Talk to a commercial bank lender about the long term economics of ski areas. The money isn't in the slopes and lifts; it's in the condos, houses,  and restaurants built on the site, and those things, and the people that support them,  require government services.

 

The future of outdoor winter sports is in question. It isn't only snowmobilers who should wonder what their sport will look like in 10-20 years.

Edited by jhwentworth

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Heard for a reliable source that Les Otten was anticipating the sale of nearly a billion dollars in real estate.

Plan is for a four season resort, so not 100% dependent on winter sports.

I agree they need to make the numbers work without state help.

If I had known it would sell for $2m I would have figured out how to buy it and run it as it was. Golf course alone is worth $7m, or that's what it would cost to build it.

Buildings were fine, but not good enough for fancy NY guests at $400 a night. Sledders and normal folk would have kept it full for $100 a night, even with crappy old furnishings.

Over 7500 beautiful acres, golf course and ski slopes for $2M. AMAZING. Just drop the elite appeal and drop the prices.

Edited by metaluc
typos and spell checker bogus corrections

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Rode up through there a few weeks back, what a shame. Beautiful area. 

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On 8/29/2018 at 8:43 PM, metaluc said:

Heard for a reliable source that Les Otten was anticipating the sale of nearly a billion dollars in real estate.

Plan is for a four season resort, so not 100% dependent on winter sports.

I agree they need to make the numbers work without state help.

If I had known it would sell for $2m I would have figured out how to buy it and run it as it was. Golf course alone is worth $7m, or that's what it would cost to build it.

Buildings were fine, but not good enough for fancy NY guests at $400 a night. Sledders and normal folk would have kept it full for $100 a night, even with crappy old furnishings.

Over 7500 beautiful acres, golf course and ski slopes for $2M. AMAZING. Just drop the elite appeal and drop the prices.

Maybe you'll get your chance.  

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Unfortunate they have sold off or torn down much of what was needed to make it viable without a large additional investment. All the ski lifts and equipment, kitchen equipment, and furnishings are gone. The factory was demolished and the back buildings. Not sure what shape the golf course is in. Sitting idle for so long without maintenance has taken its toll.

 

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ICG    3

 

Sad   but reality strikes that the developers have gutted the project at the expense of putting the place back online as cheap as possible...

 

Or  just maybe  they never intended to put it together,  but to have a sell of of the assets piece by piece?     It would still make a hefty profit.

 

 

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In a 1988 shareholders' letter Warren Buffet said if you aren’t certain that you understand and can value your business far better than Mr. Market, you don’t belong in the game.  As they say in poker, "If you’ve been in the game 30 minutes and you don’t know who the patsy is, you’re the patsy.”

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