Mount Sunapee Leaseholder – CNL eyes liquidation of ski properties

Leaseholder of Mount Sunapee Ski resort eyes liquidation of ski-mountain properties

Should the State consider Mount Sunapee Resort’s (MSR) proposal to expand ski terrain on the western side of Mount Sunapee State Park?

CNL’s recent financial picture is one of precipitous decline. It’s share valuation has gone from an initial offering of $10 declining to $5.42 on 11-29-14, to 10 cents on 12-5-14. The owners, CNL Lifestyle Properties, Inc., are pursuing liquidation strategies of their ski-mountain properties.

Wouldn’t it make more sense to table the “west bowl expansion” until the owner’s financial picture becomes clear?

Who would pay for the infrastructure of this ski-terrain expansion?

CNL’s Steve Rice recently stated on 12/09/2014, “As owners we have always been the entity that has invested in new lifts, new base lodges, snowmaking expansion, and other infrastructure in our ski resorts,” but with the current share value at 10 cents, it is hard to imagine where the money is going to come from.

There are too many problematic and unanswered financial questions as to the future of MSR. The State should not be pressured to make a decision when so much is at stake.

CNL Lifestyle Properties is burdened with outstanding mortgages, not just the mortgage on MSR, but other ski-resort mortgages as well (17 total resorts with 4 ski villages). CNL is not looking at the effects on any particular ski resort or the effects on the local community. Ski-resorts are just one part of their overall portfolio, which included 48 golf courses that were all sold this year.

The current financial situation of CNL warrants review by the State to determine its qualification to continue as lease holder of MSR. The expansion needs to be tabled. It is certainly not in the public interest at this time, nor even in the States financial interest, to approve long-term plans regarding our State Park with such unstable financial owners. Please write to express your concerns to: Jeffrey.Rose@dred.nh.gov.

Sue from Newbury, N.H.

[Added note by FOMS: In 2008, the owners of the Mount Sunapee ski area lease, the Mueller’s Triple Peaks LLC, sold (with a lease-back arrangement) their three mountain resorts–Okemo, Crested Butte and Sunapee–to CNL Lifestyle Properties, LLC, a Florida-based real estate investment trust, for a reported $132 million.]

 

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