An Independent Beast

By Katie Brinton, Senior Editor, SAM 

In late August, news circulated that Powdr was selling Killington Resort / Pico Mountain in Vermont to a group of local investors. By late September, “The Beast of the East,” which had been owned by a conglomerate since the mid-’80s (first S-K-I, then American Skiing Company, and most recently Powdr), was officially “fiercely independent,” as the media release to passholders put it. 

The investors. There was a certain element of kismet to the deal. Phill Gross, one of the lead investors in the new ownership group and the co-founder of Adage Capital Management, knew Powdr founder John Cumming from their shared work on the U.S. Ski and Snowboard Foundation board of trustees. When Powdr purchased Killington / Pico in 2007 and toyed with the idea of shutting down the resort’s Skyeship Gondola, Gross, whose home is served by the gondola, was instrumental in working with Cumming to keep the lift spinning. Seventeen years later, when Cumming was considering selling the resort to an independent group, Gross was the person he called. 

“He reached out to me and said, ‘I think it’s the right time, and you’re the right person to put something together.’ And I said, ‘Well, I’ll try,’” says Gross. Gross’s first phone call was to Michael Ferri, vice president of the Killington Mountain School (KMS) board of trustees and the co-owner of Valvoline Oil. “Although I was a little uncertain about whether we could do this, [Ferri] was like, ‘We have to do this, whatever it takes.’” That’s how it all started, says Gross. 

The appetite for involvement was significant, he says. “When the publicity came out in August, we did have more people interested than we could accommodate. … Everybody wanted to be part of something really exciting and historic.” Despite the fact that the investment returns in the ski industry “aren’t necessarily the greatest,” says Gross, folks loved the idea of having a stake in their home hill.

Gross and Ferri found the sweet spot with a group of 16 investors: 14 different Killington families, as well as Powdr and the developer of the forthcoming Killington village, Great Gulf, which both have minority stakes. 

Closing the deal. Unlike, say, Alterra’s acquisition of Colorado’s Arapahoe Basin, which has been held up since February by a routine but cumbersome Department of Justice review, the Killington / Pico deal closed quickly. 

Notably, the sale was completed with zero net debt. (While the group did borrow some funds for added flexibility, says Gross, “The key is we raised the entire purchase price with 100 percent equity, so that debt is more than offset with equity from the investors.”) 

“The fact that we got to the point where [they] bought it with no debt is really, really remarkable,” says Killington / Pico president and general manager Mike Solimano. “We’re starting from a point where we’re borrowing some money to do capital investment as opposed to borrowing money to pay for the resort, which is usually where it goes south.”

Capital plans. The new owners have earmarked $30 million for capital improvements over the next two years. Most of the money will support snowmaking and lift upgrades: 1,000 new low-energy HKD tower and fan guns (500 ahead of this season, and 500 ahead of 2025-26); a redesign of the learning area at Pico, which will include a new covered surface lift; new Leitner-Poma cabins for the Skyeship Gondola; and the ski area’s first Doppelmayr lift, a detachable six-seater to replace the existing Superstar Express Quad. New mountain bike trails are also on the docket.

It’s to Killington / Pico’s benefit that the new investors aren’t looking for an immediate return, Solimano says. “They’re not really doing this to make money particularly. That’s why I think it works.”

The new owners have committed to reinvesting all profits back into the operation over the next 10 years, but that’s not to say Killington / Pico is transforming into a nonprofit or co-op. 

“When I say that, it’s not that they don’t want to make money,” Solimano explains. “We have a bunch of aging infrastructure, and they want to see that investment made. And the belief is that we can keep growing, [although] not growing in terms of that many more people on busy days. As you invest in it, we can hopefully make better returns. And the more money we make every year, then we have more to put back in the resort. So, it becomes kind of a self-funding machine.”

It was clear to Gross and the other investors that Powdr’s investments in the resort’s facilities and infrastructure have paid off. “When they built the Peak Lodge and the K-1 [lodge] and put in the Snowden six-pack, the customer experience was much better, but so were the operations. So that got us down the path of, ‘Let’s just reinvest as much of the capital as they need into growing the mountain,’” says Gross.

Growth strategy. Solimano holds up the K-1 lodge, completed in late 2022, as an example of the strategy going forward. “We charge more for food in K-1 than we do at Bear [Mountain] or Snowshed, but last year, 50 percent of our [food and beverage] revenue ended up at K-1. It shows, as you improve, that people are willing to pay, and the value proposition changes.”

“We’re not going crazy upscale,” he says, adding that improvements to the resort don’t mean the season pass price is going to, say, double. But, “we’re not going for volume,” he says. The resort is already plenty busy—too busy—on a Saturday. The goal of the investments, he says: to make the operation more profitable and deliver a better experience, without making it more crowded.

Integral to that growth strategy is Great Gulf’s development of a new slopeside village. Initial elements of the project, such as the installation of new municipal water infrastructure and the reconstruction of the resort access road, are already underway. Its centerpiece will be a new 85,000-square-foot base lodge, which will be complemented by upwards of 110,000 square feet of retail and dining space and some 650 ski-in / ski-out condos and townhomes. 

“When you put that together with what Powdr has done …  you can get pretty excited about what Killington’s going to be like when [the village is] all done in 5, 7, 8, 10 years,” says Gross. (The first phase of occupancy for the village is slated for some time between Q4 of 2027 and Q2 of 2028.)

The additional real estate represents a real opportunity for Killington. “When the village gets built out, it’s going to be a different mountain,” says Gross. “It’s going to be one that probably has a good chance of gaining a lot of market share if we can spread the [skier visits] out to weekdays. And that’s what ski-on, ski-off real estate will do.” Gross anticipates a robust rental market.

Board oversight. As for growing the business while managing the crowds, Gross says the how is up to Solimano and his team. “They’re the experts. They’re going to decide how to deal with that.”

The new owners intend to leave the operation of Killington / Pico to the existing management team. A nine-person board will meet twice a year, once to approve the budget and once to approve capital spending for the following year. “The board’s definitely going to have some input,” says Gross, “but we’re letting them run the mountain.” 

Gross and the other investors were assured by SE Group during due diligence that the operation was in good hands. “[SE Group] came back to us and said, ‘This is among the best teams in the business. If you’re going to do this, make sure you keep the team on board.’ That’s a very comforting thing to know for somebody who knows nothing about running a ski area,” says Gross. “All we’re really going to do is keep the capital in the Killington region and let Mike run the mountain the way they always have.”

Pros and cons. The shift to independent ownership brings risks and opportunities, says Solimano: “There are always pluses and minuses.”

On the upside, there is an increase in nimbleness. “I think [among] the pieces that are the positives for us is we can move quicker,” he says. “So I think that, to me, it’s a more entrepreneurial environment, which I think is really fun.”

Killington / Pico was also already largely a standalone operation, he says, in that it had a robust team and wasn’t overly reliant on consolidated Powdr services prior to the sale. So, there will be no scramble to bring things in-house that had previously been outsourced. 

But the operation has lost a safety net, so to speak, in the transition. As an independent, says Solimano, “You live and die off your own cash flow, and if you have a couple bad years, you’ve got to make sure you can balance that. … There’s always a little more security as you get bigger that you can weather some of those things.” That the new owners acquired the resort without debt and are prepared to reinvest in it certainly alleviates some of the financial pressure.

Unique? It is for these reasons that Killington / Pico is, perhaps, uniquely well-equipped to transition from conglomerate to independent. And that makes it less likely that Killington’s trajectory will be replicated in the sale of Powdr’s other resort assets currently on the market: Eldora, Colo., Mt. Bachelor, Ore., and SilverStar, B.C.

For one thing, it appears Powdr sold Killington / Pico at a discount. “It’s clear they could have sold it for more,” says Solimano. “Everybody wanted this resort.” 

In an open market bidding system, he says, “my impression is it would be harder for some of the other resorts to figure out a local deal. I just think it’s very hard to compete with some of those big groups.” 

“I’m reasonably sure that there was a financial sacrifice for the sake of letting the locals own the mountain,” says Gross. But Powdr was ready to sell, and Gross and Ferri were able to move quickly to put together a deal. 

In the end, “It was the right thing to do,” says Gross, for Killington / Pico and for Powdr.

Thoughts From MT2030

Fellow SAM team member Karolyn Towle and I had the opportunity to attend the Mountain Towns 2030 Climate Solutions Summit in Jackson Hole, Wyo., Oct. 14-16. Launched in 2019, it’s an annual gathering of community leaders, ski resort personnel, elected officials, climate experts, and stakeholders from in and around mountain towns working together to achieve zero carbon emissions by 2030. 

Karolyn and I don’t think of ourselves as environmental activists, although we both love the mountains and worry about the devastating impacts of climate change—and we both felt changed by the summit.

Mountain communities, which often rely heavily on outdoor recreation, are feeling the sharp edge of climate change. While facing that reality can be frustrating and daunting, the summit offered an optimistic and energized vision of the future. 

A keynote from Dr. Ayana Elizabeth Johnson asked us to imagine, “What If We Get It Right?” (also the name of her book) when it comes to possible climate futures. That reframe of the challenge before us set a positive, bipartisan, and action-oriented tone for the rest of the conference.

A community of climate champions will be necessary to collectively move the needle. To help build that community, SAM, NSAA, and Taos Ski Valley, with support from Jackson Hole Mountain Resort, SE Group, Brendle Group, and Pepsi gathered ski resort sustainability leaders for a pre-arrival meet and greet at the top of the Jackson Hole tram to ignite a community of diverse resort voices (pictured).

Many of these sustainability leaders are young and wear other hats at their resorts. They told us about their passion for the mountains, need for connection with fellow leaders, and hopes to bring smart, creative climate solutions to their communities. They want to get it right, we all do—and we left the summit with the feeling that through collaboration a safer future is possible. —Olivia Rowan, Publisher    

Speak Out: Why We Must Elevate Safety in the Ski Industry

Picture a perfect day on the slopes where you can trust that other skiers and riders are looking out for your safety, everyone practices Your Responsibility Code, and avoidable collisions are largely a thing of the past.

Over the past couple decades, skiing and snowboarding have grown in popularity, steadily bringing more and more people to the mountains, including people from more diverse backgrounds thanks to improved outreach and inclusivity efforts. 

It is an exciting time, but what training and resources are we providing to help both new and experienced guests exercise good judgment with the inherent risks that they take on? Are we providing a welcoming environment—or one that shouts “get out of my way” as soon as they start down the mountain?

As an industry, we must educate skiers and riders new and old with knowledge to reduce the inherent risks of skiing and riding and create a safer environment. There is a lack of education that the skiing and riding public receives and internalizes before hitting the slopes. Providing effective education, from basic etiquette to the effects of speed on stopping distance and what it means to be in control, is in everyone’s best interest. 

Some would argue that skiers and riders will figure these things out on their own over time. Well, some do, some don’t. Overall, there is a gap in basic safety understanding. Don’t believe me? Look up ski or snowboard collisions on Instagram or TikTok and read through the comments. For experienced skiers and riders who know the code, prepare to be shocked by the lack of understanding exhibited as skiers and riders chime in on who is at fault. (Hint: not everyone understands responsibility lies with the uphill person.)

Further, surveys from ski area insurers indicate that a guest’s biggest fear while skiing is being hit by another skier. Inquiries come to our ski safety organization, Snow Angel Foundation, from individuals and organizations hailing from across North America and Europe. All are asking: what can be implemented to reduce fear of other skiers’ and riders’ reckless behavior?

This level of fear should not exist, and it indicates that more must be done to improve the on-hill environment. Fortunately, we can accomplish this through concentrated efforts. Too many of us, guests and employees alike, tolerate disrespectful, dangerous behavior—and shouldn’t.

We all love the thrill of skiing and riding, and that keeps us coming back. However, ask anyone that skis or rides regularly if there is anything that they dislike about it, and you will hear some variation of “other skiers and riders skiing too close to me when passing” or “I’m being used as a human slalom gate.”

The only reason these behaviors persist is because we tolerate them and don’t intervene when they happen. This is understandable, to a point. It’s hard to intervene after the other skier or rider flies by; we might not see them again.

Still, collision risks can be mitigated with appropriate intervention strategies when they are reported or observed by mountain staff. Education prior to this behavior occurring is even more powerful, and there are several mediums that could be used to provide it. Our organization is happy to help in this regard.

That perfect day, where skiers and riders are looking out for each other’s safety and the mountain experience is more enjoyable, is very possible. The day that avoidable collisions are a thing of the past is attainable. Let’s make sure that everyone feels like the mountain is theirs to enjoy, no matter their skill level or background. Let’s make it more inviting to come back to the mountain day after day, by improving the safety culture. Let’s all work together to elevate safety in the industry.

Chauncy Johnson, 

Founder/Executive Director,

Snow Angel Foundation Inc.

Correction: “Check Yourself Before You REC Yourself,” SAM, September 2024  

The September 2024 article “Check Yourself Before You REC Yourself” erroneously stated that National Ski Areas Association (NSAA) public policy director Geraldine Link agreed with contributor Erika Kazi’s characterization that RECs are “a Band-Aid on sustainability efforts.” Link clarified, “I do not agree with Ms. Kazi’s characterization of RECs as a ‘Band-Aid’ on sustainability efforts. Many ski areas are taking on projects to reduce GHG emissions and electricity consumption in their operations, and they are also purchasing RECs to address Scope 2 (purchased electricity) emissions and support renewable energy development. In the 2023-24 season, our Climate Challengers reported that RECs contributed to a 20 percent reduction in Scope 2 emissions, which results in net emissions of 91,701 MT CO2e. This is significant. I would encourage your readers to review NSAA’s 2024 ‘Climate Challenge’ report … to better appreciate the role that RECs play in helping ski areas meet their renewable energy goals.” NSAA’s “Climate Challenge” report is available online at nsaa.org.

Supplier News

SE GROUP hired industry veteran Michael van Eyck as senior resort analyst. 

KÄSSBOHRER ALL TERRAIN VEHICLES, INC., has appointed Liz Worgan to the role of marketing manager. 

Kelly Frey was promoted to the role of senior vice president of operations for FLAIK. 

The NEW ENGLAND SKI MUSEUM received a Cultural Facilities grant from the New Hampshire State Council on the Arts to cover a portion of the expenses needed for broadband enhancements, website redesign, and digital exhibit upgrades for permanent exhibits.

PNP SUPPLY reached a partnership agreement with DEMACLENKO that will support and expand North American distribution of TRM (Tiroler Rohre GmbH) ductile-iron pipe for snowmaking systems. 

Switzerland-based wire rope manufacturer FATZER AG has acquired Canada-based ROCKY MOUNTAIN LIFT SERVICES AND SUPPLIES INC.

AQUATIC DEVELOPMENT GROUP (ADG) was honored with two Leading Edge awards by the World Waterpark Association.

SNOWVANA, a Pacific Northwest consumer ski and snowboard show, expanded to Seattle this fall. It was the first pre-season consumer event held in the city since 2010.

Indy Pass and Entabeni Systems have purchased Black Mountain, N.H., with plans to transfer ownership of the ski area to a community co-op by 2025-26. Indy Pass also launched a new employee pass program for the 2024-25 season.

People News

The National Ski Areas Association has appointed Ski California president Mike Reitzell as its new president and CEO. ...  Amy Reents stepped down as ED of the Midwest Ski Areas Association.

In Colorado, Steamboat Resort promoted Nelson Wingard to the role of vice president of snowsports school and Corey Peterson to vice president of mountain operations. … Eldora hired Meg Ellison as its new human resources director and promoted Elly Orszulak to senior director of base area operations.

Jessica Jacobi was promoted to vice president – marketing, digital, and e-commerce for Aspen One. … Monarch Mountain appointed Chris Haggerty as its new general manager. … Shannon Buhler is now vice president and general manager of Keystone Resort. … Cindy Dady is the new CEO of Sunlight Mountain Resort.

Elsewhere in the West, Craig Cimmons was selected as the new general manager of Eaglecrest Ski Area, Alaska. … Alterra Mountain Company named Amy Ohran as the new president and COO of Palisades Tahoe, Calif.

Longtime Big Sky Resort, Mont., president and chief operating officer Taylor Middleton has stepped down to serve in a strategic advisory role for the company. Previous general manager Troy Nedved is the new president and COO. … Paul Barger joined Sundance Mountain Resort, Utah, as marketing operations and content manager.

In Canada, Andrew Rusynyk was named as general manager of Pass Powderkeg Ski Hill and the Pass Community Pool in Alberta. … Katherine Seleski was made project manager at Castle Mountain, Alberta. … Alterra Mountain Company promoted Elias Ortner to president and COO of Mike Wiegele Helicopter Skiing in British Columbia.

Out East, Mt. Abram, Maine, hired Shanta Hoff as its new director of mountain operations. … Cannon Mountain, N.H., promoted Jeff Collins to mountain operations director and named Evan Vomacka as ski school director. … Shawn Taylor is now general manager of King Pine, N.H. … Susan Donnelly was named as the new general manager of Mount Sunapee, N.H.  ... Oak Hill Outdoor Center, N.H., appointed Mike Hussey as its new general manager. 

Magic Mountain, Vt., has promoted mountain operations director Paul Maitland to general manager. … Jay Peak, Vt., named Dehlia Wright as its new communications manager and elevated Rob Riedl to ski and ride school manager. … Dave Kulis is now the operations manager for Bousquet Mountain, Mass.

French ski area operators elected Anne Marty as the new president of Domaines Skiables de France, the professional trade organization for French ski areas. She is the first woman to ever be elected to the role.

Obituaries

Daniel “DB” O’Connor died Oct. 7. O’Connor was the owner of Daniel O’Connor & Sons Wire Rope and O’Connor Ski Lifts, Inc. He traveled around the globe, splicing and inspecting cables for ski lifts and amusement rides. He also served on the National Ski Areas Association lift safety committee.

Colin Hackworth died in October. Hackworth was the founder of Nihon Harmony Resorts, owner/operator of Hanazono Ski Resort in Niseko, Japan. He also served as the CEO of the Australian Ski Areas Association for two decades, and was previously GM of Mount Hotham and later Falls Creek, Australia.

James Fleming Richards Jr. died Aug. 3. He was the co-founder of Maplelag, Minn., one of the top destination cross-country ski resorts in the U.S.