A complicated purchase agreement has been revealed between owner Nick Piazza and the non-profit Yellowstone Recreation Foundation regarding the sale of Sleeping Giant Ski Area last year. Details of the sale were made public at a meeting of county commissioners last Tuesday during an equipment transfer between the county, YRF and Piazza.
Although Piazza bought the ski area for less than $ 100, his continued investments have been significant. This was a purchase based on future potential rather than the current value of the ski area.
“The installed infrastructure that is part of the mountain has no resale value,†said James Klessens, CEO of Forward Cody. “It will cost more to remove it than it is worth. “
In addition, the mountain has never made a profit since it reopened in 2009, recording an annual deficit of around $ 200,000. Although Piazza had no vision of the mountain turning into a cash cow, he vowed to “do his best to keep it functioning,” he said.
And because of this, the Yellowstone Recreation Foundation offered Piazza a token purchase price of less than $ 100, President Rob Overfield said, with the understanding that Piazza would take over the management of the mountain and all related expenses. in the future. Although Piazza keeps all the money the mountain earns, YRF is still technically considered a back-up owner.
“Whether it’s a private sector or a nonprofit doesn’t make any difference to any of us in the community,†Klessens said. “It is a viable entity.
YRF retains the right of first refusal if Piazza decides to sell the ski area; he must first offer it to YRF before entering into a deal with a potential buyer.
“When Nick came along it seemed the most sensible and viable (to do) to have mountain running as a whole with good financial backing,†Overfield said.
Under the mountain’s rental agreement with the Forest Service, the agency can order that all equipment be removed from the mountain and returned to “the natural state” if business operations remain dormant for more than eight months. If Piazza ceases or plans to cease mining the mountain without selling it, the parties have agreed that YRF can repossess the hill.
Overfield said that while there had been no official public notice regarding the possibility of purchasing the ski area in this manner, he said that in his opinion it was common knowledge that YRF was looking for someone. ‘one to take back the mountain.
“I don’t know if it was common knowledge or not, but the whole community knew we were struggling to find another option to exploit,†he said.
Continue in the future
Overfield said that at the time of the purchase, there was an expectation that Piazza would invest in the mountain, a stipulation that Piazza saw as just a cost of doing business.
“As we became more familiar with the asset, we realized that not making these kinds of investments was not going to make it sustainable,†Piazza said. “Everything we do is with the idea of ​​making it a sustainable asset over the long term.
“Investing in infrastructure is almost a donation on our part. “
Since the takeover of Sleeping Giant, Piazza has invested in a new yurt, new rental equipment such as skis and snowmobiles, and exterior lighting. This fall, he purchased two new snow machines for a total of $ 150,000, added 30 additional lights for night skiing and invested $ 70,000 in essential maintenance on the Bighorn lift.
“There’s a lot of work that has been done on the elevators that hasn’t been done in decades,†Piazza said.
The mountain was originally a private business, but became a non-profit when Jim Nielson organized the sale of Keith Dahlem and his family’s Sleeping Giant to YRF.
Ownership of the mountain’s pre-existing snowmaking equipment and ski lifts actually belonged to Park County and Forward Cody until last Tuesday’s County Commissioners meeting. At this meeting, the commissioners unanimously approved the transfer of the magic carpet, sheep ski lift and snowmaking equipment to YRF, which in turn will hand over the equipment to Piazza.
Park County was the intermediary agent for state grant funds after Forward Cody helped raise $ 1.1 million in local contributions to match a $ 500,000 Business Ready community grant from the Wyoming Business Council in 2010 which was devoted to mountain infrastructure. The money passed through the county as a transfer, but Forward Cody was considered the owner of the property and paid taxes every year, Klessens said.
“Because of the grant money, Forward Cody took a stake to protect the interests of the state,†Klessens said.
At the Commissioners meeting, this equipment was transferred in its entirety to Forward Cody, who will transfer ownership to YRF and then to Piazza.
“The whole community has come forward to make this deal happen,†Piazza said.
Klessens said that the eventual transfer of this equipment to Piazza was part of the terms agreed upon when purchasing the mountain.
“They had the best year they ever had last year. We expect this to continue, â€Klessens said.
