Shames buy deal reached
THE GROUP wanting to buy the Shames Mountain ski facility says it has reached a deal with current owner Shames Mountain Ski Corporation.
A statement on the co-op's website indicates a purchase agreement is now being worked out by respective lawyers.
The co-op also indicates it is working on a solution to what had been a sticking point – an outstanding loan with the provincial government and unpaid royalties from ski lift revenues owed the province.
The ski corporation owes the provincial government $560,745 – $419,994 for a tourism development loan taken out years ago and $147,751 in unpaid royalties from chairlift revenues.
Co-op officials were unavailable for comment but Shames Mountain Ski Corporation president Gerry Martin confirmed that a purchase agreement is in place.
“I remain confident we'll have a successful resolution,” said Martin.
He said he was hopeful the co-op could assume responsibility for the mountain's operation by the end of the month if not sooner.
“This is all very doable,” said Martin.
He was hesitant to speak of any resolution to the $560,745 owed by the corporation to the province, citing commercial confidentiality.
But he did say the ski corporation would reduce its $1.2 million asking price by the equivalent amount of debt it could deal with.
My Mountain Co-op has been trying to raise $1.2 million to buy the mountain and $800,000 for improvements since last winter.
It so far has raised approximately $375,000.
The co-op had asked the Prince Rupert, Terrace and Kitimat municipalities and the Kitimat-Stikine regional district for $200,000 each.
Prince Rupert and Terrace have both said no while Kitimat and the regional district have yet to make a decision.
But Terrace councillor Bruce Martindale said he will ask his fellow council members for support in giving the co-op $91,000 that is part of an unexpected provincial government grant received in June.
That motion will be dealt with when council next meets Aug. 22.