Pennsylvania’s Snö Mountain On Auction Block July 17
Financially troubled Snö Mountain (formerly Montage) http://www.snomtn.com in Scranton goes on the auction block July 17, 2012 in what’s called a “Sheriff’s Sale” as National Penn Bank of Boyertown has reportedly foreclosed on the ski area.
The troubles first surfaced last fall when rumors were fairly rampant that the ski area would not open for the winter season. It did open as owners said a refinancing deal was in the works.
The ski area and a waterpark called Snö Cove are owned by Snö Mountain LLC, with Denis J. Carlson, Charles Hertzog, and Edward Reitmeyer listed as borrowers, according to the Times-Tribune newspaper.
The bank claims it is owed $6,654,473 in principal on a $7.5 million mortgage signed in 2009 and renegotiated in 2010.
The auction is set for 10 a.m., July 17, with the 388.94-acre resort and water park apparently first on the sale list. A successful bidder, if sold, will be responsible for all unpaid bills. The resort has what the newspaper describes as a “well-documented” history of financial troubles. There are reportedly $1.5 million in unpaid bills. Electrical services were cut off for three weeks in October.
Should the ski area not sell at auction – a strong possibility because of the financial “baggage” it carries -- it would like go to a judicial sale next February.
Meanwhile, there are questions about whether Blue Hills Ski Area, just outside Boston, Mass. will open next winter. It had been operated by Campgaw Ski Area in Mahwah, N.J. Calls to the ski area suggest checking the resort website for updates.
What It Means: The situation in Scranton comes as no surprise. It was a close call last winter and any relief in refinancing seems stalled at best. The Blue Hills situation deals more with a lease-operating package. Stay tuned.
Photo: Snö Mountain Ski Area