Ski hills revitalize
The lingering effects of the 2008 economic downturn continue to play out for ski resorts, which are looking at long-term investments in their properties to be competitive.
While the financial crisis of 2008 stalled the market for ski hill residences, it created opportunities for investors to rethink properties.
For example, Northland Properties Corp.’s acquisition of Revelstoke Mountain Resort in 2009 was undertaken with an eye to the project’s long-term potential while Red Mountain Resort in Rossland forged ahead with development of a second peak in 2012 while scaling back residential development.
The resort market has yet to fully rebound, but the strength of Alberta’s economy is giving Panorama Mountain Village – located just three hours from Calgary, 25 kilometres west of Invermere – the confidence to revamp its plans and pursue several million dollars worth of investments.
Acquired in 2010 by a group of investors led by Rick Jensen of New Dawn Developments Ltd., Panorama – like many hills – is under developed relative to the 4,000 acres it controls, 300 acres of which it owns outright.
It could easily double the size of its operations within that area, and a new official community plan – the first since the mid-1990s – is looking in that direction.
Jensen said remaining profitable during the downturn was difficult, but measures were instituted to cut costs rather than staff (the resort employs about 450 people).
Steve Paccagnan, Jensen’s successor as president and CEO, is overseeing an ambitious residential development that’s attracting buyers from neighbouring Alberta; a new $4 million clubhouse is planned for the resort’s Greywolf golf course, while $2.7 million will be spent on ski hill infrastructure in advance of the 2014-15 ski season. A new 37-unit lodge is also planned.
“We’re realistic. We know there was an economic downturn,” Paccagnan said.
“We have capacity ... and we want to focus on asset utilization.”
Within the next three to five years, Panorama plans expanded conference facilities and commercial space. Beyond that there are hopes for a hotel development at the foot of the hill.
Key properties
A visit to southeastern B.C. is a good reminder of how intertwined this province’s economy – including real estate – is with that of Alberta.
Alberta is the single biggest source of buyers for new and resale properties in the Invermere area, according to Paul McIntyre of Panorama Real Estate Ltd.
The buyers he’s seeing are typically younger and flush with oil patch cash.
They’re succeeding aging Baby Boomers, who are easing out of the market now that their children are gone and their own lives are slowing down.
Alberta buyers have become accustomed to visiting local ski hills in winter and lakes in summer; Lake Windermere also boasts a 15-kilometre long ski track that has added to the tourist appeal.
While plans for Jumbo Glacier Resort remain contentious, proponents are counting on 2,000 to 3,000 visitors a day at peak season, a hint of the region’s tourism appeal.
Visitors are so important to the region that Destination B.C. Corp. and Kootenay Rockies Tourism recently supported a visit by Alberta travel and sports writers to Panorama (yours truly tagged along with a contingent of real estate writers at the invitation of dhz Media Inc., which handles media relations for the resort).
The importance of younger tourists – and their decision to spend cash on the region’s recreational properties for their families’ enjoyment – is highlighted in a recent Ernst & Young report.
The generation now entering its 30s will account for more than half of all workers by the end of the decade and in turn spend the most on travel and leisure activities.
On hold
One property that isn’t about to sell is Tofino’s Pacific Sands Beach Resort.
The venerable family-owned property made headlines when DTZ Barnicke Victoria Ltd. listed it last fall. But despite strong interest from within B.C. and around the world, the bid process that concluded October 31 has not yielded a sale.
“We received considerable feedback and a number of expressions of interest, but no one has yet proposed a price that is strong enough from the sellers’ perspective,” said Randy Holt, vice-president of DTZ Victoria.
Holt said with Pacific Sands posting some of the strongest revenue in its 40-year history, its owners are reviewing marketing options for the property.
