The New York Times reports on the bitter lease dispute that threatens to shut down Park City Mountain Resort in Utah. As this case shows, leasing adds unnecessary complexity to operating a ski area.
Read The Times story to learn more.
There's not currently a Cannon Mountain lease bill before the New Hampshire state Legislature. But we know lease proponents still aim to privatize the mountain, which would effectively carve out part of Franconia Notch State Park and turn it over to the private sector.
Like all state parks in New Hampshire, no money from the state's general fund is allocated to Cannon. New Hampshire state parks are funded only by revenue from user fees. Cannon is the largest single source of revenue for Franconia Notch State Park and the Division of Parks and Recreation. And it generates more than a third of the annual revenue of the entire park system.
Cannon has produced an average annual operating profit of more than $500,000 each year since 2007, when a new management team took over with a mission to make the mountain profitable.
August 20, 2014
December 5, 2013
WMUR Story Touts Benefits of State Owned Cannon Mountain
"Hi. I'm a New Hampshire resident and I'd like a 25 percent discount on my season pass, please."
Try that at any ski area in the Granite State and you'll be laughed out of the season pass office. Except at New Hampshire's state owned and operated Cannon Mountain, where by law state residents get 25 percent off their season pass as long as they order it by Dec. 14.
This and other benefits of continued state control of Cannon were mentioned a WMUR story by Paula Tracy. You can read the full story by clicking here.
"If you are a New Hampshire resident, you own a ski area, and a pretty nice one. New Hampshire is cool that way," the story begins.
We couldn't have said it better.
May 5, 2013
Despite 'Avalanche' of Opposition, Lease Talk Resurfaces in Concord
Although there is no Cannon Mountain lease bill before the Legislature -- and an "avalanche" of opposition helped kill the lease bill last year -- there's still lease talk going on in Concord.
In this Union-Leader story from today, which noted the state treasurer's common sense recommendation that the state use Cannon revenue to pay down the Cannon Mountain Capital Improvement Fund's accumulated deficit of $372,000, state Sen. Jeb Bradley discussed leasing.
Bradley said that while he does not plan to file a lease bill, he believes that the state should consider whether it should remain in the ski business. Significantly, the senator told the newspaper that he has backed off from leasing in the face of "strident opposition" both in Concord and the Franconia region. "I was climbing uphill with an avalanche coming down at me," he told the newspaper.
State Treasurer Catherine Provencher told the newspaper that Cannon operates at a profit and that Cannon revenue funds the rest of the state park system. "Our parks fund was intended to be self-supporting, so I have to say Cannon and the Hampton meters pay for an awful lot of our system of parks that we can all enjoy," she told the newspaper.
"The New Hampshire model is that we have a few parks that support the rest of the parks system," state Parks and Recreation Director Phil Bryce told the newspaper. The state is fortunate to have "special places like Franconia Notch State Park, like Hampton Beach ... fantastic places, so they can generate that revenue to support the rest of the parks system."
This year Cannon will send $650,000 to the state park system and another $50,000 to state Fish and Game to help fund rescues.
In this Union-Leader story from today, which noted the state treasurer's common sense recommendation that the state use Cannon revenue to pay down the Cannon Mountain Capital Improvement Fund's accumulated deficit of $372,000, state Sen. Jeb Bradley discussed leasing.
Bradley said that while he does not plan to file a lease bill, he believes that the state should consider whether it should remain in the ski business. Significantly, the senator told the newspaper that he has backed off from leasing in the face of "strident opposition" both in Concord and the Franconia region. "I was climbing uphill with an avalanche coming down at me," he told the newspaper.
State Treasurer Catherine Provencher told the newspaper that Cannon operates at a profit and that Cannon revenue funds the rest of the state park system. "Our parks fund was intended to be self-supporting, so I have to say Cannon and the Hampton meters pay for an awful lot of our system of parks that we can all enjoy," she told the newspaper.
"The New Hampshire model is that we have a few parks that support the rest of the parks system," state Parks and Recreation Director Phil Bryce told the newspaper. The state is fortunate to have "special places like Franconia Notch State Park, like Hampton Beach ... fantastic places, so they can generate that revenue to support the rest of the parks system."
This year Cannon will send $650,000 to the state park system and another $50,000 to state Fish and Game to help fund rescues.
Cannon Mountain Turns Healthy Profit in 2012-13 Season, Advisory Commission Told
Cannon Mountain reported an estimated operating profit of up to $900,000 during the 2012-13 ski season, mountain General Manager John DeVivo told the Cannon Mountain Advisory Commission last month.
Since fiscal 2008, the mountain has generated an average operating profit of $515,000 annually.
For the 2012-13 season, skier visits were up 25 percent from the prior (and relatively snowless) season and were within 3 percent of Cannon's record season. The mountain's revenue was up 23 percent while expenses were down 1 percent vs. the prior season.
The commission discussed ways to pay down the Cannon Mountain Capital Improvement Fund's accumulated deficit of $372,000. The CMCIF is funded by annual lease payments from Mount Sunapee Ski Area, which the state leased in 1998 in order to fund capital improvements at Cannon. The annual payments from Mount Sunapee have totaled $372,000 less than what the $6 million revolving CMCIF has spent in bond issuances since 1999.
State Treasurer Catherine Provencher, state Sen. Jeb Bradley and State Parks & Recreation Director Phil Bryce pledged to work together to craft legislation that would direct Cannon's annual surplus to paying down the CMCIF debt, supporting the state parks budget and to pay for improvements at Cannon.
Cannon plans $717,000-worth of capital projects this summer, including $400,000 for snowmaking improvments, $167,000 for water and power upgrades and $150,000 to replace the Peabody Express Quad haul rope.
To read the advisory commission meeting minutes and get all the financial nitty gritty, click here.
Since fiscal 2008, the mountain has generated an average operating profit of $515,000 annually.
For the 2012-13 season, skier visits were up 25 percent from the prior (and relatively snowless) season and were within 3 percent of Cannon's record season. The mountain's revenue was up 23 percent while expenses were down 1 percent vs. the prior season.
The commission discussed ways to pay down the Cannon Mountain Capital Improvement Fund's accumulated deficit of $372,000. The CMCIF is funded by annual lease payments from Mount Sunapee Ski Area, which the state leased in 1998 in order to fund capital improvements at Cannon. The annual payments from Mount Sunapee have totaled $372,000 less than what the $6 million revolving CMCIF has spent in bond issuances since 1999.
State Treasurer Catherine Provencher, state Sen. Jeb Bradley and State Parks & Recreation Director Phil Bryce pledged to work together to craft legislation that would direct Cannon's annual surplus to paying down the CMCIF debt, supporting the state parks budget and to pay for improvements at Cannon.
Cannon plans $717,000-worth of capital projects this summer, including $400,000 for snowmaking improvments, $167,000 for water and power upgrades and $150,000 to replace the Peabody Express Quad haul rope.
To read the advisory commission meeting minutes and get all the financial nitty gritty, click here.
October 23, 2012
Where North Country Candidates Stand on Leasing Cannon Mountain
As North Country voters consider their choices for state Legislature, we thought you'd like to know where the candidates stand on the potential leasing of Cannon Mountain to the private sector.
Here is what the candidates for House District 2, which includes Franconia, Lisbon, Lyman, Monroe and Sugar Hill, have told us:
Denis Ward
Republican Candidate
I think the old expression "if it ain't broke, don't fix it" applies quite well here. Though I think there are places where the NH government could gain efficiency by enlisting the help of the private sector, I don't think Franconia Notch State Park is one of them. I would not support privatizing Cannon Mountain.
Rebecca Brown
Democratic Candidate
So far, leasing is more a way to tackle the state's fiscal issues than a way to serve the interests of the community and the park. I will oppose any attempt to solve the state's fiscal issues on the back of Cannon Mountain - just like I oppose Northern Pass as an attempt by PSNH to solve its financial woes on the back of the North Country. If the leasing issue continues to be brought forward, we need to put that question into the context of a master plan for the entire Franconia Notch State Park. A master planning process needs to be driven by the needs of the park, Franconia and the rest of the local community, and it needs to recognize and respect the park's history and intent, as well as the economic and financial factor.
In House District 14, which includes parts of Littleton and Bethlehem:
Brad Bailey
Republican Candidate
Did not reply to our requests for information
Doug Grant
Democratic Candidate
I cannot help but see the resemblance between privatizing Franconia Notch State Park and running Northern Pass through the White Mountain National Forest. In both cases land belonging to the people in perpetuity is to be turned over to a private group of developers. I could go on and on but I will keep this statement brief. Let me be clear - I am totally opposed to this plan.
Senate District 1:
Jeff Woodburn
Democratic Candidate
Democratic Candidate
He opposes leasing and sent us a link to something he wrote for the NH Business Review:
http://jeffwoodburn.com/?p=294
Debi Warner
Republican Candidate
Did not reply to our requests for informationDebi Warner
Republican Candidate
Here is what the candidates for House District 2, which includes Franconia, Lisbon, Lyman, Monroe and Sugar Hill, have told us:
Denis Ward
Republican Candidate
I think the old expression "if it ain't broke, don't fix it" applies quite well here. Though I think there are places where the NH government could gain efficiency by enlisting the help of the private sector, I don't think Franconia Notch State Park is one of them. I would not support privatizing Cannon Mountain.
Rebecca Brown
Democratic Candidate
So far, leasing is more a way to tackle the state's fiscal issues than a way to serve the interests of the community and the park. I will oppose any attempt to solve the state's fiscal issues on the back of Cannon Mountain - just like I oppose Northern Pass as an attempt by PSNH to solve its financial woes on the back of the North Country. If the leasing issue continues to be brought forward, we need to put that question into the context of a master plan for the entire Franconia Notch State Park. A master planning process needs to be driven by the needs of the park, Franconia and the rest of the local community, and it needs to recognize and respect the park's history and intent, as well as the economic and financial factor.
In House District 14, which includes parts of Littleton and Bethlehem:
Brad Bailey
Republican Candidate
Did not reply to our requests for information
Doug Grant
Democratic Candidate
I cannot help but see the resemblance between privatizing Franconia Notch State Park and running Northern Pass through the White Mountain National Forest. In both cases land belonging to the people in perpetuity is to be turned over to a private group of developers. I could go on and on but I will keep this statement brief. Let me be clear - I am totally opposed to this plan.
October 17, 2012
Cannon Earns High Marks in Ski Magazine Guide...And Reader Touts State Control
The annual Ski Magazine resort guide is in, once again with kind words for Cannon, which ranked No. 17 in the East. We particularly liked one reader's comments: "Great history, challenging trails, killer views, good value. A skier's mountain; love the vibe. Please, please, please remain state-owned and managed."
To read the guide, click here.
October 10, 2012
Gubernatorial Candidates Reveal Positions on Potential Leasing of Cannon Mountain
As New Hampshire voters consider their choices for governor, we thought we'd pass along where the candidates stand on the potential leasing of Cannon Mountain to the private sector. At a travel and tourism forum this month, Ovide Lamontagne said he favors exploring lease options for Cannon. Maggie Hassan's campaign said this month that she opposes leasing Cannon.
August 20, 2012
State Inspection Finds No Major Erosion Concerns at Mittersill
One of the concerns the pro-lease camp raised during this year's leasing battle was over erosion at Mittersill. We're told that an inspector from the state Department of Environmental Services hiked the entire Mittersill work road with Cannon management last week and identified no major erosion concerns whatsoever.
Nonetheless, the inspector is working with Cannon to craft an erosion-control plan for the Mittersill work road, which is something that the Department of Resources and Economic Development agreed to do in negotiations with the state Senate earlier this year.
Nonetheless, the inspector is working with Cannon to craft an erosion-control plan for the Mittersill work road, which is something that the Department of Resources and Economic Development agreed to do in negotiations with the state Senate earlier this year.
August 8, 2012
Franconia Notch State Park Earns Spot on List of Nation's Top Parks
Franconia Notch State Park, which as you know includes Cannon Mountain, was named the No. 2 state park in America on Adventure Journal's list of America's 20 Best State Parks. To see the list, click here.
Let's hope that the state's elected officials continue to recognize the importance of keeping the park intact and keeping Cannon Mountain under state control.
Let's hope that the state's elected officials continue to recognize the importance of keeping the park intact and keeping Cannon Mountain under state control.
July 13, 2012
Park City Mountain Lease Dispute: Just Another Reason Leasing Cannon Is a Risky Proposition
A lease dispute had threatened to force Park City Mountain Resort to close for the upcoming season. They've agreed to a short-term deal to open this winter while they resume negotiations for a new long-term lease.
This is just another example of why leasing is a bad idea - and one that's fraught with risk for Cannon Mountain, its skiers and riders and the North Country.
To learn more about the Utah lease fiasco, see this report from SnoCountry.
This is just another example of why leasing is a bad idea - and one that's fraught with risk for Cannon Mountain, its skiers and riders and the North Country.
To learn more about the Utah lease fiasco, see this report from SnoCountry.
June 9, 2012
SB217 Dies in the Legislature
What was left of SB217, the Cannon Mountain lease bill, has died in the Legislature after the Senate disagreed with an unrelated amendment the House tacked on the bill last month.
The final version of the bill called for the creation of a hiking corridor over Mittersill and on to the summit of Cannon. The lease, master plan and veterans memorial aspects of the bill were stripped from the measure last month while it was in the House.
Thank you for your support, email, letters and phone calls to state lawmakers. We're told that it made a difference!
While leasing is dead for this year, we're willing to bet that the issue will come up again. Recent calls to privatize Cannon have come from the Senate. With a full third of the Senate membership not running for re-election, it's anyone's guess what that will mean for Cannon and Franconia Notch State Park. Gov. John Lynch, who has always opposed leasing Cannon, also is not seeking re-election.
The final version of the bill called for the creation of a hiking corridor over Mittersill and on to the summit of Cannon. The lease, master plan and veterans memorial aspects of the bill were stripped from the measure last month while it was in the House.
Thank you for your support, email, letters and phone calls to state lawmakers. We're told that it made a difference!
While leasing is dead for this year, we're willing to bet that the issue will come up again. Recent calls to privatize Cannon have come from the Senate. With a full third of the Senate membership not running for re-election, it's anyone's guess what that will mean for Cannon and Franconia Notch State Park. Gov. John Lynch, who has always opposed leasing Cannon, also is not seeking re-election.
May 10, 2012
House Committee Strips Lease Language from Cannon Mountain Lease Bill
The House State-Federal Relations and Veterans Affairs Committee today stripped SB217, the Cannon Mountain lease bill, of its lease, Franconia Notch State Park/Cannon master plan and veterans memorial sections, leaving only the original hiking corridor language intact.
It also attached unrelated legislation to the bill. The measure will face the full House on May 15.
To see the amended bill, click here.
This potentially means the end of lease talk for this legislative session. But it also might mean that the issue will be brought up again next year.
'Whistleblowers' Find Long-Established Glade at Mittersill
If you emailed Sen. Jeb Bradley about his Cannon lease bill, you probably got a reply last week that concluded, "whistleblowers have recently brought to my attention significant tree cutting for glade skiing high on the mountain. I brought this presumably unauthorized cutting to the attention of the Division of Parks, which is currently investigating."
The senator was concerned because the area in question is above 2,500 feet on former Forest Service land that's habitat for the Bicknell's thrush, a small songbird.
It turns out that the senator discovered the glade known as Bunny Slope Direct or Pony Slope Direct, which has been around for about two decades.
The senator was concerned because the area in question is above 2,500 feet on former Forest Service land that's habitat for the Bicknell's thrush, a small songbird.
It turns out that the senator discovered the glade known as Bunny Slope Direct or Pony Slope Direct, which has been around for about two decades.
May 4, 2012
Did N.H. Lease Mount Sunapee for Below Fair Market Value?
A 1996 federal report found that the U.S. Forest Service wasn't getting fair market value for special use permits it grants to ski areas that lease federal land. The General Accounting Office report said that the Forest Service was getting less than 3 percent of revenue from the holders of special use permits -- such as ski area leases -- while states received between 5 and 15 percent of revenue generated for similar uses of state-owned land.
The lease for Mount Sunapee, which came less than 18 months after the federal report was issued, includes a small annual base rent payment to the state, plus 3 percent of gross revenues.
With other states receiving between 5 and 15 percent of revenues for leasing their property, this suggests that New Hampshire is not getting fair market value for the Mount Sunapee lease. And if that's the case, it shortchanges the state park system and Cannon Mountain while providing a sweetheart deal for the leaseholder, CNL Lifestyle Properties, which is now North America's largest owner of ski areas.
The Mount Sunapee lease payments help fund capital improvements at Cannon Mountain. The rationale for leasing Mount Sunapee was to eliminate the need for state-funded capital improvements at both mountains, while retaining the state-run Cannon as an integral part of Franconia Notch State Park. (For background on this topic, click here.)
Although this arrangement is far from perfect -- and one can question the wisdom of using one state park as an ATM for another -- it has addressed Cannon's capital needs. But SB217 puts this in jeopardy by threatening to lease Cannon and diverting Mount Sunapee lease payments for purposes not spelled out in the legislation.
House Committee Takes Critical Look at Cannon Mountain Lease Bill
The House State-Federal Relations and Veterans Affairs Committee took a very critical look at SB217, the Cannon Mountain lease bill, during its hearing yesterday. Members will vote on the bill on May 10.
April 29, 2012
House Veterans Committee to Review Cannon Mountain Lease Bill on May 3
The House State-Federal Relations and Veterans Affairs Committee will hold a public hearing on SB217, the Cannon Mountain lease bill, at 9:30 a.m. on May 3 in Room 203 of the Legislative Office Building in Concord.
If you'd like to let the committee know your feelings about the veterans aspects of the bill, you can attend or email them at HouseState-FederalRelationsandVeteransAffairs@leg.state.nh.us
The bill calls for the creation of a privately funded veterans memorial to the south of the Aerial Tramway building and relocation of the Kinsman Ridge Trail trailhead.
When it was created in 1928, Franconia Notch State Park was dedicated as a war memorial.
If you'd like to let the committee know your feelings about the veterans aspects of the bill, you can attend or email them at HouseState-FederalRelationsandVeteransAffairs@leg.state.nh.us
The bill calls for the creation of a privately funded veterans memorial to the south of the Aerial Tramway building and relocation of the Kinsman Ridge Trail trailhead.
When it was created in 1928, Franconia Notch State Park was dedicated as a war memorial.
April 19, 2012
House Committee Passes Cannon Mountain Lease Bill
The House Resources, Recreation and Development Committee this week passed SB217, the Cannon Mountain lease bill. The full House is expected to take up the bill on April 25.
The committee passed the bill as is, meaning that it still calls on the agency that manages state parks to develop a master plan for Cannon Mountain and Franconia Notch State Park. The Department of Resources and Economic Development worked with the Senate to include the master plan provision in the bill.
At the Resources, Recreation and Development Committee hearing earlier this month, the bill's prime sponsor, Sen. Jeb Bradley, said he wanted the master plan provision removed from the bill, citing its cost.
The committee passed the bill as is, meaning that it still calls on the agency that manages state parks to develop a master plan for Cannon Mountain and Franconia Notch State Park. The Department of Resources and Economic Development worked with the Senate to include the master plan provision in the bill.
At the Resources, Recreation and Development Committee hearing earlier this month, the bill's prime sponsor, Sen. Jeb Bradley, said he wanted the master plan provision removed from the bill, citing its cost.
April 11, 2012
Cannon Lease Bill Sponsor's Amendment Request Surprises House Committee and State Park Officials
Here’s a recap of yesterday’s House Resources, Recreation and Development Committee hearing on SB217, the Cannon Mountain lease bill. The bill calls for the state Department of Resources and Economic Development (DRED) to develop a master plan for Franconia Notch State Park and Cannon Mountain, including determining whether leasing Cannon to the private sector is in the public interest. It also would create a hiking trail up Mittersill and over to the summit of Cannon and develop a veterans memorial near the base of the Aerial Tramway.
Sen. Jeb Bradley, the bill’s prime sponsor, was not pleased that DRED estimated the master plan would cost $325,000. He claimed the agency could do an “internal” master plan within the confines of its existing budget. Bradley asked the committee to amend the bill by removing the master plan section and to move forward with just the hiking trail and veterans aspects of the bill. He also criticized the way Cannon is run and said it was clear that the leasing component of the bill was dead for this year.
Bradley’s amendment request seemed to surprise both the committee and DRED officials, who had worked with the Senate to craft a compromise bill that was acceptable to both sides.
April 10, 2012
Legislative Mischief Raises Its Head in House
The House committee hearing on the Cannon Mountain lease bill was interesting today, to say the least, as SB217's prime sponsor proposed major revisions to the amended bill.
The Department of Resources and Economic Development worked in good faith with the Senate to craft an amended bill it could support. The bill called on DRED to develop a master plan for Franconia Notch State Park and Cannon Mountain, including whether leasing the mountain to the private sector was in the public interest.
At the hearing today, prime sponsor Sen. Jeb Bradley urged the House committee to remove the master plan section of the bill, citing its cost, and once again criticized Cannon's management and business model.
Cannon supporters want the bill killed. Sen. Bradley wants it amended. And DRED, Cannon and the State Park System Advisory Council all argued that the master plan should remain a part of the bill.
Now it's up to the House Resources, Recreation and Development Committee to determine whether the bill should be amended, killed or sent along to a House-Senate conference committee. Stay tuned!
The Department of Resources and Economic Development worked in good faith with the Senate to craft an amended bill it could support. The bill called on DRED to develop a master plan for Franconia Notch State Park and Cannon Mountain, including whether leasing the mountain to the private sector was in the public interest.
At the hearing today, prime sponsor Sen. Jeb Bradley urged the House committee to remove the master plan section of the bill, citing its cost, and once again criticized Cannon's management and business model.
Cannon supporters want the bill killed. Sen. Bradley wants it amended. And DRED, Cannon and the State Park System Advisory Council all argued that the master plan should remain a part of the bill.
Now it's up to the House Resources, Recreation and Development Committee to determine whether the bill should be amended, killed or sent along to a House-Senate conference committee. Stay tuned!
April 9, 2012
Parks Agency to Support SB217
The agency that oversees state parks and Cannon Mountain will testify in support of SB217, the amended Cannon lease bill, during tomorrow's House committee hearing.
The Department of Resources and Economic Development (DRED) worked with the Senate to amend SB217 into something it can support.
While we still have concerns about the bill and its potential impact on Cannon and Franconia Notch State Park, it at least pushes off lease discussions until the middle of 2013.
Specifically, the amended bill:
In the past, DRED and the State Park System Advisory Council have opposed bills that called for leasing Cannon to a private operator.
The Department of Resources and Economic Development (DRED) worked with the Senate to amend SB217 into something it can support.
While we still have concerns about the bill and its potential impact on Cannon and Franconia Notch State Park, it at least pushes off lease discussions until the middle of 2013.
Specifically, the amended bill:
- Calls on DRED to develop a master plan for Cannon Mountain and Franconia Notch State Park, including an analysis of whether it is in the public interest to lease the ski area to a private operator.
- The master plan would be submitted to the State Park System Advisory Council before being submitted to the governor and Executive Council by July 1, 2013.
- Calls on DRED to develop a plan to ensure that ski operations of Cannon Mountain will become "self-funded" and "self-sufficient." This plan must be completed by Nov. 1, 2012.
In the past, DRED and the State Park System Advisory Council have opposed bills that called for leasing Cannon to a private operator.
Subscribe to:
Posts (Atom)