The My Mountain Co-op initiative opened its doors at the Kwinitsa House on the corner of Hwy16 and Eby St. March 3. There’s Richard Eckert filling out a form to buy a share

Ski co-op group pushes for lower purchase price

The non-profit group that wants to buy Shames Mountain wants the federal and provincial governments to write off hundreds of thousands of dollars in outstanding loans owed by the private company that has the ski operation for sale.

  • Mar. 9, 2011 8:00 a.m.

The non-profit group that wants to buy Shames Mountain wants the federal and provincial governments to write off hundreds of thousands of dollars in outstanding loans owed by the private company that has the ski operation for sale.

If that happens, the sum My Mountain Co-op will pay for the ski operation would be reduced an equivalent amount by the Shames Mountain Ski Corporation from its current asking price of $1.29 million.

As it is, the co-op is currently looking to raise $2 million to buy Shames and have a cushion for capital and operating expenses.

Shames Corp. president Gerry Martin says part of the complex deal revolves around an unpaid loan that dates back to the late 1980s to when the mountain opened under its current ownership structure.

When we were getting the money together to open the mountain, there was a joint federal provincial loan program called the tourism development agreement loan program, and we were part of that,” said Martin.

The original $550,000 loan amount was to have been paid back over 10 years with a final lump sum due at the end.

We made 10 years worth of payments, but when it came to the lump sum payment, we deferred that, and that’s what they’re (Friends of Shames) asking for forgiveness on,” he said.

Martin estimated the outstanding amount is now between $375,000 and $400,000.

Co-op representatives have already recruited the Kitimat-Stikine regional district for help in making their loan forgiveness pitch to the federal and provincial governments.

Regional district directors decided to write a support letter during a meeting Feb. 25.

It’s in our best interest to see if we can get those loans reduced, forgiven written off….because that will reduce the purchase price,” said co-op representative member Linda Parker.

Martin also made it clear the potential price drop applies to only the co-op; any other entity would have to pay the list price.

The ski corporation also owes money for land use fees, which comes in the form of paying two per cent of its lift revenue to the province each year. Martin said there were some outstanding dollars owed on that, but doesn’t think the province will be willing to forgive these annual payments.

Although unable to comment directly on the matter, a spokesman for the natural resource operations ministry, which is owed that money by the Shames ski corporation, said it would require “all outstanding royalties, taxes and any other monies owed to the province would be paid in full prior to our approval of an assignment of the operating agreement to a new purchaser.”

David Currie said the province feels there would have been no purpose serviced in closing down the financially-troubled hill, especially since the owners are trying to sell it.

The province supports community ski hills throughout the province and we recognize that smaller ski hills, like Shames Mountain, are important contributors to the quality of life in rural areas,” he said.

Other ski areas have financial challenges from time to time so the ministry works with them to develop payment plans to they are able to stay an ongoing entity,” Currie continued.

My Mountain Co-op representatives have yet to officially appear before city council but the mayor and council have already signaled their intentions of providing some kind of help.

The city is already providing the co-op free office space for six months.

As of late last week, the co-op had raised more than $25,000 in membership and donations. The money is being put in a trust and will be returned if the purchase falls through.

 

 

 

 

 

 

 

 

 

Just Posted

TDCSS to end on-campus daycare service

NWCC committed to finding licenced provider to fill space

Terrace teen honoured at Commonwealth writing competition

Ariadna Sullivan among 12,000 entrants vying for top awards

VIDEO: Researchers rely on drones to survey aftermath of B.C. wildfires

UBC researchers are using aerial drones to study the historic 2017 wildfires in the province

Rent continues to rise in Prince Rupert, drops in Terrace

A report from Canadian Mortage and Housing Corporation shows the average rent has risen by $132

Cops targeting risky behaviour, auto crime

Holiday campagaigns aim to keep roads safe, valuables protected

Pool upgrade on budget, slightly behind

Completion is set for March 30, and opening will likely be late-April, early-May

‘The Last Jedi’ opens with $220M, 2nd best weekend all-time

As anticipated, the movie fell shy of the opening weekend for J.J. Abrams’ 2015 franchise reboot

2 couples tie the knot in Australia’s 1st same-sex weddings

West Australian couple Anne Sedgwick, Lyn Hawkins have been together for 40 years

B.C. concert promoter bans Nazi symbols at shows

A man was witnessed making a Nazi salute during a heavy metal show at Pub 340

EDITORIAL: Putting #MeToo to work in your workplace

Workers from top to bottom need to stand together against the bully of sexual harassment

Owl found dead after eating rat poison leaves B.C. woman concerned

After finding the owl on her Surrey property, Christine Trozzo says the poison is a concern for kids

Change to CPP death benefit panned as insufficient to cover funeral costs

Funeral Services Association of Canada lobbied governments to raise the value to $3,580

#MeToo at work: Employers play a role in fixing culture of sexual harassment

B.C. workplaces are getting ahead of being the next MeToo debacle, calling on experts to train staff

B.C. woman brain injured in crash as a baby gets $1.1 million in damages

Trial heard the woman was 16 months old, being carried by her mother when they were both hit

Most Read