As reported by the Park Record, Vail Associates has upped its bid for The Canyons in Park City. In addition to the purchase price of $110M, Vail has offered a 30 percent interest in the net cash flow to Vail arising from the ownership and development rights held by American Skiing Company. Vail representatives estimate that this interest could produce up to $650M in incremental cash to ASC through 2020.
According to Vail Resorts CEO, Robert Katz, the value of future development rights at The Canyons could reach $2.5 billion.
However, officials at American Skiing Company insist that the definitive binding agreement with Talisker will be honored. They consider it “unfortunate” that Vail Resorts did not submit its offer sooner.
Meanwhile, Wolf Mountain Resorts Managing Partner, Kenny Griswold, says that he will withhold the consent of Wolf Mountain on the transfer to Talisker, but would consent to a transfer to Vail. Wolf Mountain leases The Canyons property to ASC.
Hopefully, this issue will get resolved shortly, as the ski season approaches. We have already purchased our passes to The Canyons for the upcoming season which is scheduled to open on November 17th.
For any questions on the Park City real estate market, please contact us at www.jimandbillie.com.