Industry News
In 1995, Betsy Pratt, longtime owner of Mad River Glen, Vermont, made the bold decision to sell the ski area to the skiers, by way of a co-op. At the time, the co-op could only raise enough money to buy the ski area itself, and the Pratt Family retained control of some 1,100 acres next to the ski area that was included in the initial land acquisition in 1948. Pratt gave the co-op a right of first refusal, should someone else ever try to buy that land. Since then, the land has sat undisturbed, being used informally by sidecountry and backcountry skiers in the winter and hikers in the summer. Now, an offer to buy the land has triggered a mad dash inside the co-op to decide if they can and want to purchase the land themselves.
The original offer came to the Pratt Family from Lyme Mill Brook LLC, an anonymous family foundation managed by Lyme Timber Company. The offer price is $2.5 million, which the Mad River Glen Board of Trustees indicates is likely a fair price, and would include putting a majority of the 1,100 acres into a conservation easement. The terms of the co-op’s right of first refusal require the co-op to make a “substantially similar offer,” meaning they would have to come up with $2.5 million, as well as committing to significant conservation.
At emergency board meetings on October 29 and November 10, members expressed a strong desire to try and purchase the land, describing it as a “once-in-a-lifetime opportunity” to secure the land next to Mad River Glen. A majority of the land must be put into some kind of conservation easement, but that still leaves over 500 acres that could potentially be developed right next door to the ski area. Lyme Timber Company, who could manage the land if Lyme Mill Brook LLC purchases it, is self-described as a “private timberland investment management company” with a strong interest in preservation, and owns or manages more than 1.3 million acres of working forest, and offers up a strong commitment to recreation and conservation alongside sustainable timber harvest on thousands of acres in their holdings. Many attendees of the two board meetings found the anonymous nature of Lyme Mill Brook LLC and their undefined intentions unsettling, though General Manager Matt Lillard suggested that Lyme Mill Brook LLC were quite interested in preserving the skiing and outdoor recreation experience. At the end of the November 10 meeting, the board voted to exercise its right and pursue purchasing of the 1,100 acres.
To complete the sale, Mad River Glen will have to come up with a lot of money, and financing discussions were at the heart of the discussion about purchasing the land from the start. The discussion was lively and a wide range of ideas were discussed. Lillard expressed hesitation over making the purchase with debt, but other alternatives including fundraising from shareholders, internal loans, selling more shares in the co-op, seller financing, and debt serviced by the shareholders instead of the ski area. One member mentioned that Betsy Pratt had provided financing to the co-op for their initial purchase of the ski area. Each member would have to pay $1,100 to purchase the land outright, or would have to pay between $120-$600 per year to finance a loan, depending on the terms, or some combination. A Collaborative Fundraising Committee report from November 15 indicated that $435,000 had already been raised in just a few weeks.
Securing the 1,100 acres next to the ski area would offer many possibilities for future projects at Mad River Glen, including terrain expansion, adding snowmaking capacity, and more summer recreation opportunities. As a co-op with a strong commitment towards skiing, Mad River Glen has a big advantage over other types of ski areas in that it does not necessarily need to make money off of the land it would add to its operation. Still, fundraising and financing could prove challenging, but the enthusiasm and commitment from the attendees of the two emergency board meetings is remarkable. Even on such an accelerated timetable, it could be a few months before the purchase is finalized. For now, Mad River Glen skiers (sorry, snowboarders) can enjoy their almost 50 inches of snowfall this season and dream of the possibilities right next door.
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