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Seeking A Level Playing Field In New York Isn't Easy
By Craig Altschul
November 05, 2007
Peter Harris is the long-time owner of the privately held Song Mountain Resort in Central New York. He told The Industry Report's Bob Niedt, N.Y./N.J. regional editor for OnTheSnow.com, this story:
"One day, a former employee at Snow Ridge, a private ski area I formerly owned in the Adirondack Mountain foothills, talked about skiing at the state-owned resort of Gore Mountain. He had a $99 season pass there, so I asked him, 'why don't you ski where you work?' He told me he couldn't pass up the deal."
The issue for Harris and a number of other private ski area operators in New York, Niedt points out, is one of how much money the state pumps into the ski resorts it owns. It long has been a sore point.
The issue even drove Harris out of Ski Areas of New York, the trade group that represents 39 ski areas in New York state. But now that the state is on the edge of a multimillion expansion of its Belleayre Mountain Ski Center in the Catskills, some of the larger ski areas that still belong to Ski Areas of New York are starting to feel the pressure. They are not quiet about it.
"There is an advantage for the state to run some things," said Scott Brandi, recently name president of Ski Areas of New York. "It doesn't have to run them for a profit." New York state owns toll highways and port authorities, and they can run those but, again, the state doesn't have to make money, Brandi told The Industry Report.
Similarly, the Olympic complexes the state runs in the Lake Placid area, as well as Gore Mountain, can be operated, maintained and upgraded - and still lose money. The private ski area operators argue they can't compete with that.
"What really burned me when I had Snow Ridge," said Harris, "was people would come into my office and say, 'Hey, Gore has a new chairlift' or 'Gore added snowmaking' or something similar and 'Why aren't you doing that?' Many people don't realize the state runs Gore, Whiteface, and Belleayre."
Those lift ticket and season-pass prices were also an issue, but Harris and others say they sense the state-owned facilities are backing off on the cheaper tickets and passes.
"If Gore charges $40 and Snow Ridge charged $35, I couldn't compete," said Harris. "If Gore charges $85 and I charged $35, I could compete."
Harris sold Snow Ridge several years ago. He now is concentrating on Song Mountain where he is a bit more isolated from the direct competition of the state-run ski areas. Still, Neidt points out, they're both a day trip away for many New Yorkers.
SANY's Brandi says he's confident the state facilities "are thinking in the best interest of the taxpayers. Some ski area operators don't think they are."
Only California has more ski areas than New York. But the Empire State competes for skier visits with the lure of New England resorts in New Hampshire, Vermont, Massachusetts, and Maine. New York exports many skiers to New England, something Brandi says needs to be addressed by the state and by Ski Areas of New York members.
Brandi notes that Sunapee, the New Hampshire state-owned ski area, was turned over to private operators Tim and Diane Mueller on a lease and turned a profit. But, all still isn't happy a few states away, with the Mueller group suing the state to allow expansion.
New York state isn't even considering that kind of thing now, Niedt reports, but the state-run ski areas, and the money being pumped into them, certainly has the attention of SANY's members who operate larger, private areas.
It's an issue that Brandi and SANY has to tread on lightly, since its membership includes the state-run ski areas.
"The Belleayre project has certainly brought this to a head," said Brandi. "With the expansion of Belleayre including $27 million in state money, our membership felt that it was time to make a decision. Not one that would fracture the organization, but would bring the dilemma more visible to our governor (Eliot Spitzer). He talks about the Upstate economy. We think we are critical to the Upstate economy."
Brandi knew the challenge that was in front of him when he took the SANY job last June. "We need to build a solid financial base to allow us to fund efforts on legislative, promotional, and other issues," he said then. "We will be exploring our options in this regard. New York State government is a very dynamic institution and, as such, it requires ongoing monitoring and an active presence. We will continue to expand our efforts and message in Albany."
What's the answer? More promotion of the downhill riding industry, pushed by state advertising campaigns, could be one route, Brandi believes. Another is persuading the state to give private ski areas tax breaks on purchasing more energy-efficient equipment, from lifts to snowmaking machinery.
There may be one hidden benefit to the fact that the group is looking at trying to get the playing field leveled. Ski Areas of New York may grow - by one.
"I am actually considering rejoining," Harris told Niedt.
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Comments
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the government should stay out of all business activity that competes with the private sector.
the privately owned businesses
pay taxes and have made significant investments in their operations only to have the government move in and compete with them on an un-even playing field.
government owned ski areas have, in the past, offered deep discounts and often times provide inferior products. why should the public (taxpayers)fund a risky
business like skiing. the politicians should spend their time fixing the health care crisis, repairing our bridges and roadways and provide basic services such as police and emergency services.
government has no place being in the ski business |
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Posted by: gregg confer | November 5, 2007 11:21 AM
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