Industry News
On Friday, September 5th, 2014 a Utah District Judge stated that Park City Mountain Resort (PCMR) would have to post a $17.5 million bond to operate the Park City ski resort during the 2014/15 winter season. If they don’t post this bond, they’d be evicted and would not be able to open the ski resort this winter.
Yesterday, PCMR agreed to pay the $17.5 million to operate this winter. This is great news as it means that the ski resort will be open this winter.
PCMR is appealing the ruling that they have to move out and Vail is going to move in. The payment of this bond will give PCMR a year to work on their appeal.
If you’ve missed out on all the new surrounding this Park City/Vail/Talisker mess here it is brutally summarized:
Why is all this happening?
Because PCMR made an enormous clerical error and failed to renew their lease on time in 2011. They were two days late when they submitted their lease renewal on May 2nd, 2011. That’s it, as simple as that. Biggest clerical error in ski industry history? Most likely. Especially since they were enjoying the best deal in the ski world paying only $150,000 per year. Most ski resorts pay around $3-4 million per year to lease this much land.
Talisker is being hard on PCMR by not letting them renew a couple days late, but this is most likely about money. Talisker likely said: “Ok, you’re lease is late, no biggie, but we want $4 million per year now instead of $150,000 per year, cool?” Then PCMR likely said: “No way, not cool. See you in court!”
PCMR threw the first stone by suing Talisker once negotiations to renew the lease failed. Talisker then called Vail Resorts on the phone and said “Hey, Vail, if you take care of this lawsuit, we’ll give the lease to you.” Vail responded by saying “Oh, nice one.” And that takes us right up to the June 20th, 214 eviction of PCMR.
Last week, a judge stated that PCMR could pay $17.5 million to operate for the 2014/15 winter season. Yesterday, PCMR agreed to pay and will operate this winter while they continue their appeal.
