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Greek Peak's future in question

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cms711
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Posted: Jul 14, 2012 - 1:52 PM GMT

Sorry to see this even come up...but it looks like we may be losing a ski area in the near future. This was just made public this week, but I had a feeling things weren't going as planned based on the delay of the new lift install and other on-mountain upgrades. It was supposed to go up last year but was delayed due to 'financial reasons' but they said it would definitely go up in 2012. Then, when users posted several comments online about 'how's progress on the new lift?', not one received a reply...looks like this may be why.

Article is linked and copied below as the P&SB has the articles/day quota for viewing.

Greek Peak's future in question



VIRGIL -- Next ski season at Greek Peak, the region's largest ski area, could be wiped out.

Failure to obtain a loan to replace existing financing from a failed Tennessee bank could doom the operation. Tennessee Commerce Bank, with headquarters in Franklin, held millions of dollars in loans for the Virgil operation.

U.S. Sen. Charles Schumer, D-N.Y., is expected to make a stop at the Cortland County resort late Monday morning to make an appeal to the Federal Deposit Insurance Corp. to expedite a loan review for the beleaguered company.

"Greek Peak desperately needs the FDIC loan approval to ensure its over 1,000 employees can stay on the job this upcoming ski season," according to a statement from the resort issued Friday night.

At the time of the bank closing, Greek Peak President Al Kryger said the company owed about $35 million on several loans, according to its own tally. The company had loans with Tennessee Commerce in the ski area, the hotel, the water park and the adventure center, Kryger said. The resort has undertaken several expansion and development projects during the past few years.

The bank was closed by federal regulators in late January, leaving the Greek Peak financing in limbo. At the time, Greek Peak representatives believed they could secure alternative financing, and were confident the bank's failure would have no impact on its operations.

But the bank's failure, combined with an unseasonably mild winter that led to a business decline, caused the current financial crunch.

"Greek Peak is now seeking additional financing that would allow it to keep its doors open next winter," the resort said in the statement.

Federal regulators are now reviewing the resort's financial condition to determine if the successor bank can grant a new loan to the operation. Schumer is expected to request that the FDIC expedite that review and "explore every viable option to keep Greek Peak open next ski season."

The area is popular among skiers in the Binghamton, Elmira and Ithaca region.


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jb66
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Posted: Jul 14, 2012 - 2:02 PM GMT

1,000+ empoyees??? Is that correct? That seems huge.

Sad to see.
newman
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Posted: Jul 14, 2012 - 2:06 PM GMT

Is this just the bank failing or GP doesnt have money? It always scares me when ski areas spend so much investment on summer, and hold off on winter needs. It makes me think when Sugarloaf spend all the money on golf and didnt invest in snowmaking. A bad move of the time.
cms711
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Posted: Jul 14, 2012 - 2:11 PM GMT

I think it's a combination of both. I always said the same thing, why are they bothering in summer investment when they have lackluster snowmaking and deteriorating on-mountain infrastructure. It appears that their plan was to create a year-round resort first, then use that money to dump back into the ski area. Only problem is, with the terrible winter we had and the failure of the bank, they have to rely on the summer aspects to make up for the losses before turning a profit, which I don't think they can do.

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Posted: Jul 14, 2012 - 2:34 PM GMT

Quote:
1,000+ empoyees??? Is that correct? That seems huge.

Sad to see.


I would think alot of that number is part time seasonal. Like instructors, cafiteria, etc. Some of the jobs may not be GP employees, like hotel housekeeping and restaurant staff. Other businesses affected by the loss of winter tourists.
obienick
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Posted: Jul 14, 2012 - 5:30 PM GMT

This was made public about 3 months ago and I had posted a link to an article about it.

Basically Greek Peak's bank in Tennessee (I forget the name) went bankrupt. When this happens the FDIC takes over control of the assets of the failed bank. A buyer purchased most of the assets of the bank, minus some loans. Included in these unpurchased assets were all loans for Greek Peak totaling ~$45M (the cost of the hotel/conference center/adventure center). If no buyer is found, the FDIC starts a 6 month review process on whether to keep or call the loans. Basically this review process would be up in October, right before ski season.

Normally, things work out when a bank fails like this, and I certainly hope someone will buy up Greek's $45M in loans. The reason this is now finally making "big" news (and the reason for the email blast to pass holders) is Sen. Schumer is using Greek Peak as an example to try to pass a bill streamlining this review process. He's having a press conference in the lodge on Monday.
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Posted: Jul 14, 2012 - 5:33 PM GMT
Edited: Jul 14, 2012 - 5:33 PM GMT

Quote:
It always scares me when ski areas spend so much investment on summer, and hold off on winter needs. It makes me think when Sugarloaf spend all the money on golf and didnt invest in snowmaking. A bad move of the time.



Greek has only spent a few million on summer activities. Most of the $45M has gone to the hotel. Bed base is always needed before other improvements can be justified. And summer improvements are needed for the bed base. I have heard good things about the hotel, and it was so well-used in its first season (2009-2010) that they were already thinking for expansion of it!
obienick
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Posted: Jul 14, 2012 - 5:35 PM GMT

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Some of the jobs may not be GP employees, like hotel housekeeping and restaurant staff. Other businesses affected by the loss of winter tourists.


Certainly the cafeteria is run in-house. If you look at your receipt is says "Peak Inc.," which when you look up on the NY Secretary of State's website, is the holding company for Greek Peak. I do not know about housekeeping but I imagine it too is in-house.
obienick
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Posted: Jul 14, 2012 - 5:53 PM GMT
Edited: Jul 14, 2012 - 6:04 PM GMT

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I always said the same thing, why are they bothering in summer investment when they have lackluster snowmaking and deteriorating on-mountain infrastructure.


Lackluster snowmaking? In an average year, they rarely need to rely on their snowmaking as much as they did last year. They get a lot of lake effect from Cayuga lake. And the "notch" they are in is a magnet for snow. Go 3 miles west on NY-392 and there often is a lot less snow.

Could they have more fire-power? Yes. They currently pump at 3000 gpm. But as a comparison, SR only pumps at 8200 gpm from their source and 9000 gpm on-mountain. I'd love thicker lines and closer hydrants so a trail could just be flat out blasted, but they make it work. Their trails are very-well graded to open on the thinest cover necessary.

Last year they bought 5 of the new-designed Ratnik Snow Giant IIs to make more snow at warmer temperatures. It paid off I think. New Low-E guns would be nice, but unlike many areas, they aren't really pressed on compressors as they have so many fan guns.

From my best guess their arsenal is:
- 11 Ratnik Snow Giant II
- 3 really old-school A/W guns that look like shotguns
- 2 even older-school A/W guns that are very small, clearly vintage as they are only brought out on the coldest of nights
- 5 or so Ratnik Sky Giant II which are routinely moved among Fields, Stotic and Trojan
- 3 HKD Genesises
- 2 automatic TechnoAlpin guns, one located at the base, one located mid-mountain at bottom of Elysian Fields
- 8 or so Areco SuperSnows, two of which are automatic and mounted at the old tubing park
- 10 or so SMI Wizard Kids
- 1 SMI PoleCat Kid
- 2 diesel generators for fan guns to make snow on trails without power
- plus whatever they bought for the new tubing park.

Unlike other ski areas, Greek is very frugal and cost-effective with their snowmaking, and go out of their way to say "we've stopped snowmaking on X date because we've made enough to get through the season." They routinely are the first to open in the CNY area and for a matter of fact, they were THE ONLY ski area in CNY last year to fire up guns during the week before President's day vacation, which allowed them to stay open a week longer than other resorts nearby. The only reason they closed was because we had a week of highs in the 70s-80s which melted through the snowpack extremely fast.

In an average year, it doesn't matter too much, but last year, they showed the locals who's boss.
cms711
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Posted: Jul 14, 2012 - 6:17 PM GMT
Edited: Jul 14, 2012 - 6:18 PM GMT

Quote:
I always said the same thing, why are they bothering in summer investment when they have lackluster snowmaking and deteriorating on-mountain infrastructure.


Quote:
Lackluster snowmaking? In an average year, they rarely need to rely on their snowmaking as much as they did last year. They get a lot of lake effect from Cayuga lake. And the "notch" they are in is a magnet for snow. Go 3 miles west on NY-392 and there often is a lot less snow.

Could they have more fire-power? Yes. They currently pump at 3000 gpm. But as a comparison, SR only pumps at 8200 gpm from their source and 9000 gpm on-mountain. I'd love thicker lines and closer hydrants so a trail could just be flat out blasted, but they make it work. Their trails are very-well graded to open on the thinest cover necessary.

Last year they bought 5 of the new-designed Ratnik Snow Giant IIs to make more snow at warmer temperatures. It paid off I think. New Low-E guns would be nice, but unlike many areas, they aren't really pressed on compressors as they have so many fan guns.

From my best guess their arsenal is:
- 11 Ratnik Snow Giant II
- 3 really old-school A/W guns that look like shotguns
- 2 even older-school A/W guns that are very small, clearly vintage as they are only brought out on the coldest of nights
- 5 or so Ratnik Sky Giant II which are routinely moved among Fields, Stotic and Trojan
- 3 HKD Genesises
- 2 automatic TechnoAlpin guns, one located at the base, one located mid-mountain at bottom of Elysian Fields
- 8 or so Areco SuperSnows, two of which are automatic and mounted at the old tubing park
- 10 or so SMI Wizard Kids
- 1 SMI PoleCat Kid
- 2 diesel generators for fan guns to make snow on trails without power
- plus whatever they bought for the new tubing park.

Unlike other ski areas, Greek is very frugal and cost-effective with their snowmaking, and go out of their way to say "we've stopped snowmaking on X date because we've made enough to get through the season." They routinely are the first to open in the CNY area and for a matter of fact, they were THE ONLY ski area in CNY last year to fire up guns during the week before President's day vacation, which allowed them to stay open a week longer than other resorts nearby. The only reason they closed was because we had a week of highs in the 70s-80s which melted through the snowpack extremely fast.

In an average year, it doesn't matter too much, but last year, they showed the locals who's boss.


I'm not saying they don't have snow guns or snowmaking, but if you compare to many areas (not necessarily CNY), their overall capacity is what is lacking. They may be able to open early if temps cooperate, but in doing so, they usually open with 1 'run' (2 trails; Fields & Stoic) plus the alpha slope with minimal snow. With no natural snow, it took months to open every trail that had snowmaking capability. Areas like Camelback, Blue, etc (Yes, I know they have to rely heavily on snowmaking due to little/no natural snow) can blow on 4-5 trails at a single time, allowing for more terrain to open much faster. Like you've said and I'm sure seen, I frequently see 3-4 hoses connected to try to blow snow on a trail without hydrants or few hydrants. While they're trying, it just isn't as efficient as it could be.

Adding high tech guns like the Ratniks are nice, but to me, it's like putting lipstick on a pig. Using a system put in over 30 years ago without any upgrades besides snowguns, isn't going to stack up when mother nature fails.


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Chris Shumeyko- Lafayette College Ski Team Coach
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Posted: Jul 14, 2012 - 6:38 PM GMT

Ok 22 fan guns and 23 or so tower or ground guns. How fast do you think that will cover 220 acres? That amount of guns would be short changing Toggenburg. I would also hope management doesnt hope to include that lake effect snow in the snowmaking plans. If it comes good. If its early and deep beter. If it sits all season, its a lottery win. How long has it been since natural snow made a big difference in trail count and closing day for more than a weeks time at that place?
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obienick
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Posted: Jul 14, 2012 - 7:37 PM GMT
Edited: Jul 14, 2012 - 7:55 PM GMT

Quote:
They may be able to open early if temps cooperate, but in doing so, they usually open with 1 'run' (2 trails; Fields & Stoic) plus the alpha slope with minimal snow. With no natural snow, it took months to open every trail that had snowmaking capability. Areas like Camelback, Blue, etc (Yes, I know they have to rely heavily on snowmaking due to little/no natural snow) can blow on 4-5 trails at a single time, allowing for more terrain to open much faster. Like you've said and I'm sure seen, I frequently see 3-4 hoses connected to try to blow snow on a trail without hydrants or few hydrants. While they're trying, it just isn't as efficient as it could be.


Yes, Fields --> Stotic + Alpha and Boardwalk is their traditional opening terrain, but I have seen many times where they are making snow on 5-6 different routes.

Lwr Alcmene and Lwr. Illiad share a line. Is that trouble? No, because they are 5 feet from each other. Upr. Alcemene and Fields share a line, but once again, they are 5 feet from each other. And same with Wendy's Way/Stotic.

The trouble spots are:
- the rock cut on Karyatis where there is no pipe (they push the snow there = minor)
- Marathon (drag hoses = minor: Wachusett drags hoses a further distance for Upr. Balance Rock)
- Upr. Mars Hill (pipe leading to one hydrant for whole trail, but that pipe must be manually connected to the pipe on Zeus with hoses across the trail). This is a major issue they need to work on, simply extend the pipe up the trail from Poseidon and add valve work to Zeus so no hoses across the trail.
- the clusterf*$# of Odyssey (many pipes horizontally through the woods from Illiad. You know they're blowing snow Odessy when you see the short hoses that connect the hydrants on Illiad. One air hydrant from the Illiad line to one air pipe over to Odyssey; one water hydrant on the Illiad line to one water pipe over to Odyssey

If they just laid pipe on Odyssey, connected Karyatis, they'd be all set to run 4 routes on the main face instead of two. But that may not work if the lower Chairs 1/1a/3 greens are run off a low-head pump. They can run both routes off of Chair 2 at the same time, and Can run both lines on Chair 4 and the spur to Chair 5 at the same time.


Quote:
Adding high tech guns like the Ratniks are nice, but to me, it's like putting lipstick on a pig. Using a system put in over 30 years ago without any upgrades besides snowguns, isn't going to stack up when mother nature fails.


Yea, the Ratniks aren't super high-tech since they are non low-E A/W guns but they are more efficient than older A/W models. If the bank didn't fail, Chair 1a was supposed to be replaced for last season, and snowmaking improvements and a HSQ to top of 4 with a summit restaurant for this upcoming season. But we had a disastrous financial crisis, and it effects are still affecting all walks of life, including recreation.
obienick
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Posted: Jul 14, 2012 - 7:49 PM GMT
Edited: Jul 14, 2012 - 7:53 PM GMT

Quote:
Ok 22 fan guns and 23 or so tower or ground guns. How fast do you think that will cover 220 acres? That amount of guns would be short changing Toggenburg. I would also hope management doesnt hope to include that lake effect snow in the snowmaking plans. If it comes good. If its early and deep beter. If it sits all season, its a lottery win. How long has it been since natural snow made a big difference in trail count and closing day for more than a weeks time at that place?


IDK what you mean by Toggenburg in that case. Togg has permantly mounted HKDs. Greeks 45 or so guns can move all around the mountain. And fan guns put out more snow and throws it farther than A/W guns. So if you're trying to say Greek doesn't have enough guns, those fan guns really should count as 2-3 guns. Also, don't believe all the hype you read. As much as I love Greek, it is not 952' and is not 258 acres let alone 214 with snowmaking. But it is certainly much bigger than Togg.

But ... 3000 gpm is 27 acre-ft of snow per day assuming you can use all water for 24 hours. Greek pulls right from the stream at the base, which never seems to have flow issues, and returns all unused water.

IMHO, their issue isn't capacity, but hydrant location. They are 150' to 200' apart, even on their signature early-season route.
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Posted: Jul 17, 2012 - 12:24 AM GMT

The place always annoyed me. Their trail map for 10 plus years has showed their coming soon future expansion. At least Killington stopped showing the inter connect when a delay became obvious. They showed pictures of the water park in the brochure 2 years before ground breaking. I found it miss leading. They desperately need a HSQ; the lifts are annoyingly slow. The 2 largest western NY areas: Bristol has 2 HSQ's and Holiday Valley has 3. To keep up with the competition they need one or two. I do agree their snow making has been OK and they have opened first many times and sometimes they are last to close. I would go there much much more if I could get up the hill faster. Pricing is weird... a season pass costs about the same as 5 lift tickets. Just my 2 cents.
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Posted: Jul 17, 2012 - 12:48 AM GMT
Edited: Jul 17, 2012 - 12:49 AM GMT

, those fan guns really should count as 2-3 guns. .[/quote]

In a winter like last year, those air waters were probably more productive in the warmer temps. Alot of nights around the east, snowmaking temps were low enough for fans or HKDs to be productive for just a few hours before dawn. Dont tell a snowmaker at Hunter a fan is equal to three other guns. You will get a long and detailed arguenent why they are not.
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Posted: Jul 17, 2012 - 3:15 AM GMT

Update from the Press & Sun Bulletin:

Link to article (P&SB gives you a free 7 day trial; reset your router if you can't connect)

Looks like they lost $1.6M last year and have gotten a $200k advance from the FDIC.

*Crosses fingers the FDIC allows their loans to proceed, else I'm out a pass.*
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Posted: Jul 17, 2012 - 3:28 AM GMT
Edited: Jul 17, 2012 - 3:37 AM GMT

Quote:
The place always annoyed me. Their trail map for 10 plus years has showed their coming soon future expansion. At least Killington stopped showing the inter connect when a delay became obvious. They showed pictures of the water park in the brochure 2 years before ground breaking. I found it miss leading. They desperately need a HSQ; the lifts are annoyingly slow. The 2 largest western NY areas: Bristol has 2 HSQ's and Holiday Valley has 3. To keep up with the competition they need one or two. I do agree their snow making has been OK and they have opened first many times and sometimes they are last to close. I would go there much much more if I could get up the hill faster. Pricing is weird... a season pass costs about the same as 5 lift tickets. Just my 2 cents.


Chair 1 and 1a are 3200 ft long. Chair 1 runs at 465 fpm (very standard!), or just under 7 minutes. You do not need a 1100fpm HSQ for that. Trails will be scraped off, more crowding on the front face which is already the most used part of the mountain, and much more expensive to operate. Everything spins 2-2.5x the speed which means any moving part needs to be replaced that much more often. Plus then add in the grips and all the extra sensors (rope position, grip pressure, etc.) and that the initial capital cost is 2x or more that of a new FG.

Yes, 1a is slower, at around 400fpm. I think it's that way as the motor was probably too small from Day 1 as it came second-hand. But they need to run it all the time as Chair 1 cannot slow for people needing assistance. Greek Peak has a huge adaptive program.

The whole idea of the HSQ to top of Chair 4 and extra pod over there is to get people to utilize that terrain more often. (I honestly think people are just too dumb to figure out where the base of Chair 4 is.) I love lapping Trojan or Mars Hill when people are waiting in lines at the bottom of Chairs 1, 1a, and 2. Also, as a pass holder, it's nice to park in that back lot, boot up, and immediately hit Chair 5 vs. plodding through the rutted main parking lot.

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Posted: Jul 17, 2012 - 7:22 AM GMT

I don't know the much about how well the waterpark/hotel is doing, and maybe it's doing great, but $35 million is a LOT of debt for a small ski area, with a fairly small market, that needs a major snowmaking overhaul, a new lift, and significant capital investment otherwise.

Killington was worth $82 million in 2007, and Sunday River and Sugarloaf COMBINED were worth $77 million in 2007. Is Greek Peak worth the same as Sugarloaf, or 1/2 of Killington? Not a chance, IMO.

I'm currently a Binghamton-based skier for much of the past two seasons (College). For an extra 20 minutes of driving, I can get far better and more reliable skiing at Elk.

It's a 700 vertical foot main face, and the other faces are 400 vertical feet with very outdated infrastructure and a layout that makes trying to ski the other parts of the mountain a frustrating chore, for extremely short runs.
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Posted: Jul 18, 2012 - 11:38 PM GMT

This really bums me out. Regardless of the antique lifts, Greek Peak is a great area, especially for beginners. IMO its one of the best beginner areas on the East coast. I've skiied there since the early 70s. In a good snow year, when 100% open, the place is great - powder days and nice woods skiing. If it goes under, this will be a huge loss for central NY.

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