POWDR loses in court, Vail will take over PCMR lease

[Spyderman]

Rogman,

No truer words ever written! You've nailed it.

[Knut]

There are an awful lot of million dollar condo owners and business's whose properties are now basically worthless.
Any further posturing is not going to solve anything,just more animosity.
Its time to put on the big boy pants, make a fair deal for the base area and move on.
Daddy knows it, he's one step ahead with the Snow Bird deal.

There will be some sort of deal worked out for the base area. Sooner rather than later.
They don't have a choice.

[jimmywilson69]

I have a friend who's father in law lives slope side in Park City i'm curious to hear what his take is on this.

[Bubba]

I'm trying to imagine the conversation over family dinners at the Cumming household.

John: Dad.....you know that resort you bought me in Park City as a toy to play with?

Ian: Yes son.....what about it?

John: Well......I made this little mistake on the lease and now a judge says I can't play with it any more.

Ian: You WHAT? You idiot! OK....I'll buy you a new one.

[hillbangin]

I still think there's a conspiracy theory to be had.

Vail runs Park City West for Talisker ( I can't call it The Canyons - it's not a freaking Canyon - its Okemo west )

Talisker Owns the PCW land and most of the mountain at PCMR

Talisker won't sell the PCMR land to PWDR because they like Vail's $25Mil better

PWDR doesn't re up the lease because they 'forgot'

Old Man Cummings buys Snowbird - but doesn't put it under PWDR

Vail wins the lawsuit

Downtown Park City is not slopeside anymore because PWDR owns the land at the bottom and parking

SOOOOOOOOOOOOOOOO

Who has the hammer now - Vail or PCMR ???

PCMR is going to get a fortune for the land - and invest it in the Bird.

And so much for One Utah - they'll both have howitzers at the pass pointed at each other.

[RENO]

Bottom line is that the Cumming family will make millions from this mess no matter how this crapola turns out. All the regular customers like us will be talking about how John Cumming screwed up and what an idiot he is on all the message boards while he rapes Vail or Talisker for millions to buy him out. Yeah, what a dope he is! I wish I was as dumb as him!

[jbkmart]

Looks like they're actually digging in for the long haul:


PCMR Statements on Court Ruling
May 21, 2014

Powdr released the below statements in response to the Court’s ruling on the parties’ summary judgment motions.

Statement on PCMR from John D. Cumming, Chief Executive Officer of Powdr
We respect the Court’s decision but at the end of the day it doesn’t change the fact that Vail and PCMR can and must resolve this dispute. For that to happen, both parties will need to sit down at the table, negotiate in good faith, and come to a rational agreement. We are committed to doing exactly that, which is why we have made repeated offers to buy or lease the disputed property for an amount far in excess of market value. But let me be clear: we will not walk away and allow a Vail takeover.

To date, there has been no response to these offers. By picking up where Jack Bistricer and Talisker left off in demanding we sell PCMR at terms they dictate, Vail is demonstrating a fundamental misunderstanding of what this litigation could yield for them. That may explain their willingness to acquire the Canyons at a premium and its corresponding desire to get PCMR on the cheap, but it does not change the basic facts at issue: even if Vail ultimately prevails in this litigation, it cannot possibly operate a resort on the leased property. They do not own the adjacent lands and facilities that are essential for ski operations to take place. And they are not for sale.

Our community has become one of the world’s premier ski destinations because each of our three resorts – PCMR, Canyons, and Deer Valley – offers a unique ski experience, and because we compete with each other for guests. A Vail takeover would diminish what we collectively offer to guests. They may boast of their domination of other communities but that flies in the face of what has made Park City so successful.

We know this dispute has created uncertainty and tension within Park City. We remain hopeful that a rational resolution can be made. In the meantime, we are going to continue to do what we’ve done for the past 50 years: focus on delivering the best possible guest experience, make continued investments like Woodward Park City, and be a responsible part of a community that makes Park City an incredible place to work and live.

Statement on Litigation from Alan L. Sullivan of Snell & Wilmer for Greater Park Company and Greater Properties, Inc.
Park City Mountain Resort is disappointed that the Third District Court for Summit County ruled in favor of Talisker and Vail on claims related to the leases, right of first refusal and ban on sale. While we are respectful of the Court, we believe there are significant factual disputes which require a trial and at the appropriate time we intend to appeal these rulings. We have always anticipated a lengthy legal process to resolve this litigation. We are committed to ensuring that PCMR has its day in court so it can show that it acted responsibly and in good faith and that its right to use the lands at issue has been extended.

In the meantime, we expect that PCMR will operate business as usual for the 2014-15 season. We believe that no action affecting the operation of the Resort can occur until the appeals are completed, which is likely to take at least another year. Vail’s motion for partial summary judgment on their unlawful detainer counterclaim, which requests the eviction of PCMR from the upper slopes of the mountain, puts the cart before the horse: the litigation must be allowed to reach its conclusion first. The Court has scheduled a hearing on the unlawful detainer counterclaim for June 19.

[Bubba]

Looks like they're actually digging in for the long haul:


PCMR Statements on Court Ruling
May 21, 2014

Powdr released the below statements in response to the Court’s ruling on the parties’ summary judgment motions.

Statement on PCMR from John D. Cumming, Chief Executive Officer of Powdr
We respect the Court’s decision but at the end of the day it doesn’t change the fact that Vail and PCMR can and must resolve this dispute. For that to happen, both parties will need to sit down at the table, negotiate in good faith, and come to a rational agreement. We are committed to doing exactly that, which is why we have made repeated offers to buy or lease the disputed property for an amount far in excess of market value. But let me be clear: we will not walk away and allow a Vail takeover.

To date, there has been no response to these offers. By picking up where Jack Bistricer and Talisker left off in demanding we sell PCMR at terms they dictate, Vail is demonstrating a fundamental misunderstanding of what this litigation could yield for them. That may explain their willingness to acquire the Canyons at a premium and its corresponding desire to get PCMR on the cheap, but it does not change the basic facts at issue: even if Vail ultimately prevails in this litigation, it cannot possibly operate a resort on the leased property. They do not own the adjacent lands and facilities that are essential for ski operations to take place. And they are not for sale.

Our community has become one of the world’s premier ski destinations because each of our three resorts – PCMR, Canyons, and Deer Valley – offers a unique ski experience, and because we compete with each other for guests. A Vail takeover would diminish what we collectively offer to guests. They may boast of their domination of other communities but that flies in the face of what has made Park City so successful.

We know this dispute has created uncertainty and tension within Park City. We remain hopeful that a rational resolution can be made. In the meantime, we are going to continue to do what we’ve done for the past 50 years: focus on delivering the best possible guest experience, make continued investments like Woodward Park City, and be a responsible part of a community that makes Park City an incredible place to work and live.

Statement on Litigation from Alan L. Sullivan of Snell & Wilmer for Greater Park Company and Greater Properties, Inc.
Park City Mountain Resort is disappointed that the Third District Court for Summit County ruled in favor of Talisker and Vail on claims related to the leases, right of first refusal and ban on sale. While we are respectful of the Court, we believe there are significant factual disputes which require a trial and at the appropriate time we intend to appeal these rulings. We have always anticipated a lengthy legal process to resolve this litigation. We are committed to ensuring that PCMR has its day in court so it can show that it acted responsibly and in good faith and that its right to use the lands at issue has been extended.

In the meantime, we expect that PCMR will operate business as usual for the 2014-15 season. We believe that no action affecting the operation of the Resort can occur until the appeals are completed, which is likely to take at least another year. Vail’s motion for partial summary judgment on their unlawful detainer counterclaim, which requests the eviction of PCMR from the upper slopes of the mountain, puts the cart before the horse: the litigation must be allowed to reach its conclusion first. The Court has scheduled a hearing on the unlawful detainer counterclaim for June 19.

One would expect them to say nothing less. They'll appeal, and the time for appeal will allow them to operate this coming season. After that, and on the assumption they lose their appeal, where do they go? Vail can connect the two and operate independent of the base area, leaving Cumming with little to run plus having a local community that pissed off at his blocking convenient access to the mountain. Good luck with that.

[Big Bob]

Bottom line is that the Cumming family will make millions from this mess no matter how this crapola turns out. All the regular customers like us will be talking about how John Cumming screwed up and what an idiot he is on all the message boards while he rapes Vail or Talisker for millions to buy him out. Yeah, what a dope he is! I wish I was as dumb as him!

I would be surprised if they paid him a $100 million for the base area. That is what he has in the place. If they do give him that much, he's the winner!

[shortski]

leaving Cumming with little to run plus having a local community that pissed off at his blocking convenient access to the mountain

That would never happen. Powdr has always been customer centric......... we are the Elephant you are the bird. Karma it shows no favoritism. How's it feel to take one where the sun don't shine.

Suck it up. Admit you royally screwed up and move on. Drag this out and the Park City citizens will run you out of town. What will your Camp Woodward be worth if no one comes.

[hillbangin]

leaving Cumming with little to run plus having a local community that pissed off at his blocking convenient access to the mountain

That would never happen. Powdr has always been customer centric......... we are the Elephant you are the bird. Karma it shows no favoritism. How's it feel to take one where the sun don't shine.

Suck it up. Admit you royally screwed up and move on. Drag this out and the Park City citizens will run you out of town. What will your Camp Woodward be worth if no one comes.

This is all a negotiation now - They are going to try to torch Vail for as much dough as they can.

[snoloco]

What really pisses me off about this debacle is that this is the second time that the Park City area has brought Killington down. The first time is when ASC overreached by building The Canyons in the late 90's and early 2000's. If it wasn't for that mess, the Pico interconnect would have been built and lower Sunrise still open. Powdr is still fixing some of the problems caused by ASC's bankruptcy. The last thing we need is for this lawsuit to cause bankruptcy again. Powdr ought to just cut their losses and sell the base area to Vail for a high price so that they can move on and focus on their other resorts such as Killington.

[steamboat1]

not my words.

"The lessee is the Greater Park City Co., a subsidiary of Powdr Corp. Powdr's liability is limited to the extent of its equity interest in GPCC. That limitation of liability is the primary reason corporations exist at all. Powdr is not a party to the litigation.
In the event, after a final, unappealable judgment is reached, Talisker is awarded significant sums, that becomes a liability of GPCC. If GPCC files Chapter 11, Talisker stands along with others to whom GPCC may owe money as an unsecured creditor. Neither Powdr nor the Cummings are liable for a cent."

[hillbangin]

not my words.

"The lessee is the Greater Park City Co., a subsidiary of Powdr Corp. Powdr's liability is limited to the extent of its equity interest in GPCC. That limitation of liability is the primary reason corporations exist at all. Powdr is not a party to the litigation.
In the event, after a final, unappealable judgment is reached, Talisker is awarded significant sums, that becomes a liability of GPCC. If GPCC files Chapter 11, Talisker stands along with others to whom GPCC may owe money as an unsecured creditor. Neither Powdr nor the Cummings are liable for a cent."

Powdr's liability is limited to the extent of its equity interest in GPCC

We don't care about the Cummings - we care about how much this is going to effect Powdr and Killington.

No improvements this year because of this train wreck in Utah.

The Cummings will still have jets and yachts when this is done.

We just want 2 new lifts, a new base lodge, and some frigging pavement on the access road - less money than 1 jet.

[Mister Moose]

Powdr's liability is limited to the extent of its equity interest in GPCC

We don't care about the Cummings - we care about how much this is going to effect Powdr and Killington.

No improvements this year because of this train wreck in Utah.

The Cummings will still have jets and yachts when this is done.

We just want 2 new lifts, a new base lodge, and some frigging pavement on the access road - less money than 1 jet.

Sorry, but this makes no sense at all.

The Vail/Talisker/PCMR suit is not a liability case. It is a landlord/tenant issue. POWDR stands to lose value in its real estate holdings, and a loss of future income from losing the lease to the ski area land. There is no large liability award looming.

What the Cummings do with their toys does not affect Killington. Do you sell your toys when a small project at work at a subsidiary goes bad?

And your 1 jet is more than 2 lifts, a base lodge and a mile of 4 lane road is way out of whack. Not that comparing a random list of capital investments to the price of a jet makes any sense either.