Some more questions for CBMR after the Snodgrass decision…

“We have to re-evaluate everything…”

We asked Crested Butte Mountain Resort Chief Operating Officer Ken Stone to answer some other questions concerning the impact of the recent decision from the Forest Service to deny the Snodgrass proposal. Here are his responses.

 

Crested Butte News (CBN): How will the company go about appealing Forest Supervisor Charlie Richmond’s decision? Is a lawsuit likely?
Ken Stone (KS): We are currently evaluating the options that are available to us and despite what the letter indicates, we believe this decision is appealable. If you look at the history of the Muellers, you will see they have faced other obstacles in the past and have prevailed.

CBN: What does it mean for the immediate future of the ski resort?
KS: Immediate future is a nice oxymoron. But there will be no change to our plans for this winter. Our business plan is in place for this season and we will continue on that path.

CBN: Is there a plan to downsize current operations? Will the resort cut back on opening terrain? Will base area projects be delayed? Will the upcoming seasons be shortened, etc.?
KS: There are no plans at this time to change anything at the resort. Certainly the business levels and skier visits we reach this winter will determine how we adjust our plans, and that’s something we do every year.

CBN: Will any of your employees be immediately impacted?
KS: Directly or indirectly this winter, there won’t be broad impacts. Not this winter. As we go forward, we will have to determine the impacts to our business.

CBN: Can anything be done over there on Snodgrass at all now? Will CBMR still groom the road up Snodgrass?
KS: Snodgrass remains in our permit area and still has the same Forest Service designation for lift-served alpine skiing on it. We will continue to have access this winter for groups and for individuals who wish to backcountry ski on Snodgrass.

CBN: Plan B?
KS: The NEPA process would have given us a Plan B as far as finding out various alternatives. At this point, we are exploring what we can do to address this decision. Our Master Development Plan dovetails to future development on Snodgrass. Our current plans are designed for ski area expansion.

CBN: I have heard CNL (the ownership group of the resort) had money set aside specifically for Snodgrass development. Will any of that money now be spent on current mountain improvements?
KS: There is money set aside for Snodgrass development by CNL. That capital money is specific to Snodgrass. No additional projects are earmarked with that commitment. Any future projects will be evaluated on their own merits, and have to have a good return on investment in order to use CNL funds.

CBN: What is the future of the North Village?
KS: The North Village has always been a long-term project and stands on its own. The plans remain the same for the North Village with or without lift-served skiing on Snodgrass.

CBN: What does this do to the relationship between CBMR and CNL?
KS: This decision doesn’t change our relationship with CNL in any way. They are disappointed with the decision like we are, but we continue to have a productive relationship and full support from CNL.

CBN: It seems the Forest Service decision makes this resort akin to Monarch as opposed to a place like Telluride… is that the new future?
KS: We certainly have to look at our competitive position in the ski resort arena and so does the community at large. We are a destination resort. We have already crossed that threshold.
It does make us look at things differently in the long term. In the last few years, we have adjusted our business model to try to achieve longer stays and return visits by our guests. It will be that much harder with a dependence on just the current mountain product. We have to look and re-evaluate everything we do.

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