Peak Resorts Inc. has received commitments from overseas investors to finance $52 million in improvements at its Mount Snow ski resort in southern Vermont.
The company, which operates mountain resorts across the U.S., announced it had received commitments from overseas investors to fully subscribe its $52 million EB-5 capital raise for Mount Snow and had $48.3 million in escrow as of August 25.
EB-5 is an investor visa program administered by the United States Citizenship and Immigration Services (USCIS) to stimulate the U.S. economy through the creation of jobs and capital investments in U.S. companies by foreign investors. Investors in EB-5 programs must file petitions, known as I-526 Petitions, with the USCIS seeking approval of their suitability. Approval typically occurs between 12 and 18 months from the initial I-526 Petition filing date. Once the USCIS approves an I-526 Petition submitted by one of the company's EB-5 investors, all offering funds may be released from escrow. Peak Resorts noted that it continues to await approval by the USCIS of the first I-526 Petition for this project, which was submitted May 2014.
Capital raised via Mount Snow's EB-5 offering will fund two separate construction developments– Mount Snow's West Lake Water and Carinthia Ski Lodge Projects. The West Lake Water Project includes the construction of a 120-million-gallon water storage pond for snowmaking, three pump houses and other associated infrastructure. West Lake will increase snowmaking water storage by six times, enabling Mount Snow to open more trails earlier in the season and increase the snowmaking capacity on existing trails. Construction of the West Lake Water project began in February 2015 and is expected to be completed prior to the 2016-2017 ski season.
“We started construction of the West Lake project at Mount Snow this summer because of investor interest in the offering and our comfort with the potential timing for USCIS approval,” said Timothy D. Boyd, president and CEO, Peak Resorts. “We continue to expect approval of the first I-526 Petition in the near future.”
Poised to triple terrain, quadruple lodge
“This first construction project, once completed, will allow Mount Snow to open each ski season with as much as three times more of its terrain open. It will also allow Mount Snow to eventually cover 100 percent of its trails with snowmaking. Mount Snow's terrain and snow coverage is already exceptional. Completion of this snowmaking capability should help us gain an even greater share of the healthy ski market in this region.”
The Carinthia Ski Lodge Project consists of a new three-story, state-of-the-art ski lodge that will replace an existing 50-year-old lodge at the base of the Carinthia Slopes at Mount Snow. Construction on the new lodge is expected to begin in 2016. Totaling approximately 36,000-square-feet and more than four times the size of the existing lodge. The new lodge will house several food outlets, a rental shop, retail and convenience store and other skier services. The new lodge has been designed so the interior can be modified during the off-season to host conferences, weddings and other groups, and it will serve as the hub for upscale accommodation and recreational facilities that the company plans to build as part of the Mount Snow master plan.
The EB-5 capital raise of $52 million is part of an overall $66 million infrastructure improvement plan for Mount Snow, explained Richard K. Deutsch, VP, business and real estate development.
“This is the first phase of the Mount Snow master development plan approved by the state of Vermont in July 2011,” Deutsch said. “Construction of both the Carinthia Ski Lodge and West Lake will not only improve the ski experience for our guests, and in the case of the ski lodge create additional opportunities for year-round business and revenue, but both projects also include components designed to contribute to environmental improvements. Peak Resorts makes a great effort to be a responsible custodian of the environment, and we think our guests value those efforts.”
