Shames sales deal not yet finalized

THE SALES deal to sell the Shames Mountain ski facility to new owners had not been finalized as of last week.

THE SALES deal to sell the Shames Mountain ski facility to new owners had not been finalized as of last week.

Instead, My Mountain Co-op is operating the mountain through a lease with the Shames Mountain Ski Corporation.

“We’ll be operating under a sub tenure agreement until a deal regarding the provincial loans is settled,” said founding director Jon Hopper.

“It basically allows us to operate on their behalf,” said Hopper of the arrangement the co-op has made with the ski corporation.

“We’re waiting to hear back from the provincial government.”

Hopper’s references are to two outstanding amounts of money owed to the provincial government by the Shames Mountain Ski Corporation.

The first, more than $420,000, is for a tourism development loan taken out by the ski corporation years ago to help set up its facilities on the mountain.

And the second, in the $150,000 range, is for unpaid lease payments owed to the province. The annual lease payments amount to two per cent of the facility’s ski lift revenue.

The ski corporation is in negotiations with the province to eliminate or dramatically reduce the amount of money owed for the tourism development loan.

Meanwhile, the co-op has said that it is willing to take on the outstanding lease payment obligations.

Officials last week from the provincial finance ministry, which is looking after the tourism development loan, and from the forests, mines and natural resources ministry, which is responsible for crown land leases, said there was no change in either situation.

My Mountain Co-op, building on a regional membership base, began raising money nearly a year ago to aid in its purchase of the ski facility.

A first business plan, requiring $2 million to satisfy a purchase price of $1.2 million and to provide money for maintenance and other expenses, was adjusted to reflect a lower purchase price negotiated by the co-op with the ski corporation.