Intrawest to be paid after Games
 
Heavily indebted operator of Whistler Blackcomb will get 'millions
of dollars' for venue use
 
David Ebner
 
In 1991, Whistler Resort became the first mountain resort outside of
the USA to be named #1 by a major American ski magazine. Five years
later, in 1996, it became the only resort in history to be
simultaneously named #1 by Snow Country, SKI and Skiing Magazines.
In March 1997 Whistler Mountain Ski Corporation (which owned
Whistler) merged with Intrawest Corporation (which owned Blackcomb)
to create one of the biggest resort complexes in the world. Whistler
Blackcomb/Intrawest
 
 
Olympics organizers in Vancouver are on the hook for millions of
dollars to pay Intrawest ULC for use of Whistler Blackcomb, but a
payment to the heavily indebted resort company isn't expected until
well after the final gold medal is awarded.
 
The payment is the "make whole" element of a long-standing agreement
between Intrawest and VANOC to use Whistler Blackcomb north of
Vancouver as an Olympic venue. A part of Whistler Mountain hosts
alpine ski races this month, and the bobsled-luge-skeleton track is
near the base of Blackcomb.
 
Such "make whole" deals are typical between Olympics organizers,
winter or summer, and privately owned facilities.
 
While the exact money involved hasn't been disclosed, it will be
"millions of dollars," Vancouver Organizing Committee deputy chief
executive officer Dave Cobb said last October after the organization
put out its annual report.
 
When Vancouver bid for the Olympics early last decade, the estimated
cost was between $5-million and $30-million.
 
Normally, Whistler Blackcomb will see more than 15,000 people on the
mountains on a February day, a number expected to be at least halved
during the Feb. 12-28 Olympics even though most of the terrain will
be open to skiers. The impact has already began, with almost no day
parking available for skiers as of Feb. 1, and zero during the
Games.
 
For Intrawest owner Fortress Investment Group LLC, the embattled New
York hedge fund operator and private equity investor, the money
won't arrive soon enough to help fend off creditors, who are
threatening foreclosure and have planned an auction of Intrawest
assets on Feb. 19, in the middle of the Games.
 
The Olympics are not expected to be affected if the auction does
occur.
 
VANOC will "fully honour" the deal with Intrawest, the Olympics
organizer said in a statement. Bill Jensen, CEO of Intrawest, said
the company is looking forward to a "successful Olympic Games" and
has "every confidence" VANOC "will honour its financial
commitments."
 
"That agreement," VANOC said in its statement, "includes a
make-whole element that addresses the financial impact on Whistler
Blackcomb as a result of staging the Games. This will only be
finally determined well after the Games are over."
 
The existence of the deal has been known for years, as is the case
for a similar deal with Cypress Mountain on Vancouver's North Shore,
which was closed last month and is host to freestyle skiing, ski
cross and snowboarding.
 
Speculation about Whistler and Intrawest has swirled because of
Fortress's money problems and gossip was sparked anew after a Jan.
30 report in the tabloid New York Post. The story cited one unnamed
source that said Fortress is demanding $90-million (U.S.) from "the
Canadian government" before the Games start, or it will sue.
 
Fortress bought Intrawest in 2006 for $2.8-billion in a heavily
levered buyout at the top of the real estate bubble. It has missed a
debt payment and has sold two of Intrawest's 10 winter resorts to
help sate lenders.

David Ebner