Shames sale in final stages
THE SHAMES Mountain Ski Corporation is now negotiating the finer points of its sales deal with a local non-profit group following shareholder acceptance of general terms, says its president.
Gerry Martin said shareholders approved of an August letter of intent last week with My Mountain Co-op to take over operations of the Shames Mountain ski facility.
“We can now go ahead and complete the purchase agreement according to the letter of intent,” he said.
The deal, so far, calls for the co-op to pay the ski corporation $550,000 over the next several years.
The co-op has approximately $380,000 so far but also needs money for operating expenses this fall leading into a winter opening.
No money has yet changed hands and there is no formal closing date set, Martin said. He said there is no doubt there will be skiing on Shames Mountain this winter.
“Absolutely. That’s the whole reason for this exercise,” said Martin.
The ski corporation has been trying to sell the ski facility for several years after absorbing years of losses and had decided to close it this year had a buyer not been found.
The corporation had originally wanted just under $1.3 million but agreed to drop the price if it could sever a $560,000 debt it owes the provincial government.
Of that amount, $419,994 is for a tourism development loan taken out years ago and $147,751 is in unpaid royalties owing the province for the use of Shames Mountain.
Martin said negotiations between the corporation and the province are underway to deal with the loan.
“We have to finish that up and it’s moving forward,” he said.
The remainder of the debt could be taken on by the co-op and that’s a subject of negotiations between the province, the ski corporation and the co-op.
The royalties take the form of two per cent of the revenues from the ski facility’s chairlift.
While a sales deal is not yet completely final, the ski corporation has been transferring its operations files to the co-op.
“Yes, we’ve been doing that and there’s been stuff on the computers, too,” said Martin.