Detroit Mountain Recreation Area 2010 Feasibility Study Conducted

Transcription

Detroit Mountain Recreation Area
2010 Feasibility Study
Conducted by Members of the Board of Directors,
Detroit Mountain Recreation Area, Inc.
Executive Summary
A rare and historic opportunity exists for Becker County to acquire a 200-acres piece of
land, formerly used as a private downhill ski area, and designate it as a general public
four-season recreation area.
This vision, to create one of the most unique county recreation areas in Northwestern
Minnesota, is now underway and includes a diverse mix of outdoor recreation
opportunities.
Thanks to the assistance and tremendous support from the local community, the
successful preparation of the Detroit Mountain Recreation Area Feasibility Study is now
complete and presented herein. Formed in February of 2010 with a vision to make the
Detroit Mountain Recreation Area a reality, Detroit Mountain Recreation Area, Inc.
(“DMRA, Inc.” ) is a 501(c)(3) non-profit organization with elected board members
comprised of a diverse collection of local business owners and professionals who are
passionate about building a healthy and economically viable community through outdoor
recreation. DMRA, Inc. is dedicated to assisting Becker County in creating a long-term
management and operation plan consistent with the Becker County Master Recreation
Plan.
It is important to note the DMRA Feasibility Study was completed with limited resources
and on a voluntary basis, and not intended to address all concerns or questions that may
arise. DMRA, Inc. would, however, request first opportunity to provide additional
information or research data should the county request such information.
The study herein reviewed a select number of development opportunities for the 200-acre
site. The opportunities were included based on input from community members, site
characteristics, potential for educational programming, positive impact on health and
wellness, access, affordability, and economic stimulus to the area.
While the development opportunities reviewed in the study are certainly not the only
possible public uses identified for the site, they do provide a representative sample of the
most prominent proposed activities. From that review, the study draws the following
conclusions:
ii








Alpine Skiing, snow boarding and tubing could be offered with additional
improvements to the facility and equipment.
Minimal improvements and additional equipment would be necessary to offer
Nordic skiing, snow shoeing, hiking, birding, mountain biking and a picnic
grounds.
Horseback riding, camping, interpretive trails and disc golf could be offered with
varying degrees of additional improvements.
The optimal ownership and operating structure for the development of Detroit
Mountain Recreation Area as not only a ski area offering alpine skiing, cross
country skiing, snow boarding and snow tubing but also non revenue generating
activities such as hiking, camping, mountain biking and other amenities is some
form of public private “Partnership” that will permit the land to be owned by a
public entity such as Becker County, Erie Township, the City of Detroit Lakes or
some Joint Powers entity created by those governmental entities, while providing
for operation of the amenities that require significant infrastructure investments
and incur operating expenses, labor and insurance costs to be undertaken by a
separate for profit business or non profit organization.
Private operators can attract private investment, non profit operators can attract
charitable donations. Both types of operation can benefit the public, without
creating another public bureaucracy with additional public employee expense,
political interference with management and an uncertain level of continuing
financial support from the public operator.
The initial investment made by the public for land acquisition is an investment
with minimal or no risk. The land over time is unlikely to decrease in value and,
given its location, will more likely appreciate in value even without the private
investment in infrastructure that will result from the development of the ski
operations by a private operator. If nothing were to be done to the site other than
to make it a county park, it will still be a valuable asset and attraction our
community can offer.
Our community is and has traditionally been a destination for visitors. To remain
competitive in that area, the community needs to continually build on its
competitive advantages and attract new visitors. In short, the community needs to
give people a multitude of reasons to visit. This facility has the potential to create
a destination not only for one or two winter activities, but for year round
recreational activities that offer residents and visitors a positive experience in the
Detroit Lakes area.
There will be few, if any, direct operational costs to the public; and, over time the
operation may be able to return some operating revenue to the public in the form
iii
of payments under a lease or management agreement as an offset to the loss of
real estate taxes.



This facility will not require tax revenue to operate and no tax increases will be
necessary. Development and operating expenses will be generated by donations
and revenue generating activities.
Development of this facility will not occur without public involvement. While it
is reasonable to expect donations and operating revenue to finance infrastructure
development and to pay operating costs, revenue will be insufficient to pay those
costs and pay debt service on land acquisition costs. Private enterprise cannot
purchase the land, invest in infrastructure, pay debt service, pay operating costs
and recover a reasonable rate of return.
The time to act is now. If the land is sold to a private party for private use the
potential community asset will be lost. There is no better time than now. Fifty
years from now the community will remark on the foresight our County
Commissioners had in acquiring the land.
Over time, the value of the facility will increase as will its potential to foster private
investment in additional infrastructure. As the infrastructure is developed, the value of the
public’s initial investment will grow with minimal or no additional public investment.
The public, in general, will benefit from the additional recreational opportunities offered
by the facility. These opportunities are both in the form of revenue generating activities
such as skiing, snow boarding and snow tubing, as well as other non-revenue generating
activities afforded by the new public park. Further, it creates an additional draw - a
reason for tourists and other visitors to come to the Detroit Lakes area.
This facility will also create another source of private employment for area residents, and
has the potential to generate additional capital investment in area businesses to service
the draw. Rental shops for skis, snow boards, and bicycles, can be operated by private
companies both on and off site. A recreation area creates the market for recreational
equipment, including bicycles, ski, and snow board equipment. The initial public
investment has the capacity to spawn the growth of public enterprise and give our local
residents one more reason to live in Becker County - and our visitors one more reason to
spend their vacation dollars in our community.
iv
DETROIT MOUNTAIN RECREATOIN AREA
2010 Feasibility Study
Prepared for
Becker County, Minnesota
May 2010
v
TABLE OF CONTENTS
1.0
Project Goals and Objectives ................................................................................ 2
1.1
Objective of the Feasibility Study ........................................................................ 2
1.2
Mission and Vision............................................................................................... 2
2.0
Site Overview .......................................................................................................... 3
2.1
DMRA Location ................................................................................................... 3
2.2
Access & Arrival .................................................................................................. 4
2.3
Zoning .................................................................................................................. 7
2.4
Physical Description ............................................................................................. 7
2.5
Infrastructure, Equipment & Systems .................................................................. 8
3.0
Development Concept .......................................................................................... 11
3.1
Winter (November- March) ............................................................................... 12
3.2
Spring & Fall (April-May & Sept-Oct)and Summer (June-August).................. 15
4.0
Ownership and Operating Structure ................................................................. 19
4.1
Private Ownership and Private Operation .......................................................... 19
4.2
Public Private Partnership (PPP) ........................................................................ 20
4.3
Public Ownership and Public Operation ............................................................ 24
4.4
Summary and Recommendation ........................................................................ 25
5.0
Industry Overview ............................................................................................... 27
5.1
Demographics and Trends .................................................................................. 27
5.2
National Ski Areas Association.......................................................................... 28
5.3
Ski Resort Information: Minnesota and Surrounding Area ............................... 30
6.0
Comparative Financial Analysis and Pro Forma ............................................. 32
6.1
Estimated Ski Area Start-Up Cost ...................................................................... 33
6.2
Foundation Development [501(C)(3)] ............................................................... 33
6.3
Grant Funding .................................................................................................... 34
6.4
Fundraising ......................................................................................................... 34
7.0
Appendix A - Detroit Mountain Focus Group Summary ................................ 36
8.0
Appendix B – Nordic Ski ..................................................................................... 39
9.0
Appendix C – National Ski Areas Association .................................................. 41
DMRA Feasibility Study
1
1.0 Project Goals and Objectives
1.1 Objective of the Feasibility Study
Detroit Mountain is located in the heart of Detroit Lakes, Minnesota. The original ski
resort was family owned for many years before closing. In an effort to examine
possibilities for re-opening and enhancing opportunities for the area, a grassroots effort
grew quickly resulting in the current feasibility study. The current study outlines the
development concept for the Detroit Mountain Recreational Area. The report includes
economic considerations, current ski industry overview, financial projections, and resort
comparisons. The information in the study will lay the groundwork for determining the
future of DMRA.
1.2 Mission and Vision
The mission of Detroit Mountain Recreation Area, Inc. is to promote sound
environmental recreation and educational programming to develop the health and
wellness of children, families and communities.
2
2.0 Site Overview
This section provides a description of the proposed recreation area, Detroit Mountain
Recreation Area (DMRA), and an overview of the site.
2.1 DMRA Location
The proposed site location of Detroit Mountain Recreation Area (DMRA), currently
identified as Lookout Properties, consists of three parcels totaling 259.72 acres (Parcel
No. 100502000, 100503000, and 100505000). The parcels preside in the southeastern
area of Becker County, Minnesota, which are located in Erie Township and are found in
th
the northwest and northeast quarter (1/4) of Section 31-Township 139 on the 40 Range.
th
th
The property is bound by 170
Street to the north and defined as 29409 170
Street
Detroit Lakes, Minnesota. See Exhibit 2.1 Location Map:
Exhibit 2.1.1 Location Map
Parcel No. 100502000 consists of 195 acres and encompasses the east half (1/2) of the
east half (1/2) of the northwest quarter (1/4) and the northeast (1/4) of section 31, less 5
acres.
Parcel No. 100503000, consists of 5 acres and encompasses the southeast corner of the
north half (1/2) of the northeast quarter (1/4) of section 31, the previously said less five
acres of parcel no. 100502000.
Parcel No. 100505000, consists of 59.72 acres and encompasses the north 19.72 acres of
Lot 2 and the west half (1/2) of the east half (1/2) of the northwest quarter (1/4) of section
31.
3
Exhibit 2.1.2 Parcel Location Map
2.2 Access & Arrival
DMRA can be accessed at two entrances from three trip-generating locations.
2.2.1 Arrival via Minnesota State Highway 34
The main entrance on Mountain Road can be accessed from Minnesota State Trunk
Highway 34 (MN34) via Otto Zeck Road. Otto Zeck Road is a twenty-six foot wide
gravel surface that is currently maintained by Erie Township.
MN34 provides safe arrival through a State maintained major arterial; which, junctions in
the City of Detroit Lakes with both U.S. Trunk Highway 10 (US10) and Minnesota State
Trunk Highway 59 (MN59). This designated access arrival provides proficient travel for
trip-generation source locations from the west (Fargo-Moorhead) via US10, the north
(Thief River Falls) via MN59 and the south (Fergus Falls/I-94 Corridor) via MN59.
Although passing the recreation area westbound along US10, trip-generation source
locations from the east (St. Cloud) via US10 would still be designated to utilize MN34
via US10.
It is recommended that access to DMRA via MN34 be the designated arrival route, see
Exhibit 1.3 Designated Arrival Route.
4
2.2.2 Arrival via Mountain Road
The proposed recreation area, DMRA, can also be accessed via Mountain Road from
Detroit Lakes. Predominantly an access route for local residents, this route is not
recommended as it historically has compromised the safety of travelers due to both
vertical and horizontal curve alignments. Mountain Road is not highly prioritized for
snow removal in the winter and with the close proximity of the edge of the gravel surface
to adjacent wetlands, travelers have unintentionally left the travel corridor multiple
documented times.
2.2.3 Arrival via Tower Road
Tower Road is a convenient arrival route due to its junction with US10; however, the
vertical curve alignments and stopping sight distances along the corridor are not adequate
and do not support trip-generation attraction traffic volumes. Also, the DMRA can be
accessed from Tower Road; however, at this time the access is within private property.
Exhibit 2.2.1 Designated Arrival Route
2.2.4 Mountain Road Entrance
The original entrance to DMRA is located on the north side of the property and can be
accessed from 170th Street, also known as Mountain Road. The Mountain Road entrance
5
is serviced by a twenty-eight foot wide gravel surface that conveys traffic from the access
point southeasterly through the property along the west-southwest base of Detroit
Mountain. It is recommended that the Mountain Road entrance remain the dedicated
entrance at this point as both the entrance to the proposed recreation area and the travel
corridor within the property from this entrance are in a safe and sustainable condition.
2.2.5 Tower Road Entrance
The property may also be accessed from the south on Tower Road from the 2006
construction of a twenty-four foot wide gravel surface from Tower Road north to the
existing lodge. The purpose of the drive was to provide access for properties of a
potential development within the proposed recreation area and the John and Mary
Bekkerus property. Currently, this access point is a private drive in ownership of John
and Mary Bekkerus which at this time is not being considered as part of the proposed
recreation area. Although the Tower Road entrance provides access from U.S. Trunk
Highway 10, this entrance will have to be re-evaluated at a later point, and time due to
ownership rights and safety concerns.
Exhibit 2.2.2 Designated Entrance
6
2.3 Zoning
Erie Township is predominantly agricultural zoned, 83% of the 1,239 parcels in Erie are
agricultural, see Table 1.1 Erie Zoning Distributions. Currently, parcel no.’s 100503000
and 100505000 are zoned agricultural and the larger parcel, parcel no. 100502000, is
zoned High Density Residential.
It is recommended that the DMRA is zoned recreational and held by Becker County for
tax exemption. This is similar to the Becker County Fairgrounds, the City of Detroit
Lakes participation in a public/private partnership with the Kent Freeman Arena, and the
Minnesota Flyers Gymnastics.
Zoning the proposed DMRA recreational, would maintain consistency with adjacent
parcels and have no adverse effect on people or land uses.
2.4 Physical Description
The proposed DMRA currently consists of 259.72 acres of rolling hills, forests, pastures,
trails, wetlands, and accessibility travel corridors that connect to common interest
structures and parking facilities. The intent of the recreational area supported by DMRA,
Inc.’s mission is to maintain four season recreation and its existing natural topogr aphy.
2.4.1 Existing Terrain
Most recently, the proposed recreation was minimally impacted by a recent attempt to
develop the property into high density residential area. Several storm water ponds were
constructed to accommodate water quality and rate control requirements by the Pelican
River Watershed District for their proposal of increased impervious surfaces.
Prior to the previously mentioned intent of the owners, the proposed recreation area was a
ski resort owned and operated by the property owner. The topographic terrain of the
property includes rolling hills surrounding Detroit Mountain (top elevation 1620 feet with
a 186-foot vertical drop) covered by deciduous forests with light underbrush and grass
forest floor. The slopes of Detroit Mountain are covered with short grass and separated
7
by lines of deciduous trees. The slope of the terrain across the property ranges from five
(5) to thirty (30) percent. The north side of the property contains a fresh water emergent
wetland and both natural and pre-developed trails migrate throughout the entire property.
2.4.2 Soils
The more predominate soil on the property is a Snellman-Sugarbush complex according
to the NCSS Soil survey map, see attached. Snellman-Sugarbush is recognized as a well
drained soil within the soil type group “B” and an infiltration rate of 0.6 inches per hour.
Exhibit 3.4.2 Soils Map
2.5 Infrastructure, Equipment & Systems
The proposed DMRA site previously operated as a ski area under the current owners and
a majority of the infrastructure, equipment and systems remain operational.
8
2.5.1 Infrastructure
The infrastructure within the property has been updated as recent as 2004 and most of the
original 1957 infrastructure remains in place today.
2.5.1.1Structures & Facilities
The original lodge was constructed in 1977 as a stick frame construction. The lodge
consists of 5,200 square feet.
In 1995 the west side of the facility was entirely
rehabilitated including new concrete, flooring, rafters, and sheeting. The west side of the
facility; which was the rental shop included the installation of automatic glass sliding
doors. Directly east of the lodge is a steel building utilized for storage of equipment, the
structures integrity is sound at this point. Also, located on the facility is the ski patrol
house located east and north of the lodge, the facility was utilized as a base for the
volunteer National Ski Patrol.
2.5.1.2Power Utilities
DMRA site is serviced by a three-phase power source supplied by Wild Rice Electric
th
from the north at 170
Street, 1200 feet east of the main entrance. The three-phase
power is adequate to supply any recreational, commercial, and/or residential needs.
Power is conveyed south through the property to the top of Detroit Mountain where it
splits and continues both south and west, servicing ski lifts and light poles. From the
south line, the power travels west once arriving at the bottom of Detroit Mountain and
carries services to the well house and lodge.
2.5.2 Equipment & Systems
The DMRA accommodates both ski lift and artificial snow production equipment and
systems.
2.5.2.1Surface Ski Lifts
Two of the five ski lifts remain operational today. The handle tow lift on “Begginer”,
–
southeast side of Detroit Mountain remains in operation and is powered by the three
phase electrical source. Also in operation is the t- bar lift located between “Alpine” and
“Face”, and runs from the top of the mountain southeast. Both lifts would need to be
inspected for safety and quality. The lifts have been defined as operational; however, they
have not been in operation since 2005.
9
2.5.2.2Artificial Snow Production
The heart of the artificial snow production system is a well located at the south east base
of the mountain. Previously, a 500 gallon per minute pump serviced up to four snow
production machines servicing the entire area. Water pumped from the well house is
conveyed via both sub-surface and at-surface pipe. Specifically, water is conveyed via a
3” cast iron watermain from the well h ouse both east and west. At the east point the
watermain bears north and ascends Detroit Mountain through a 3” aluminum water main
where then bears west and descends to the west base of Detroit Mountain, bottom of
“Face”
Exhibit 3.5.1 Infrastructure Location
10
3.0 Development Concept
Recreational development opportunities are numerous for the Detroit Mountain area. The
area would support a great number of activities and opportunities due to the overall land
area mass, terrain, and proximity to an urban center. The fact the area formerly held a
fully operational ski area cannot be overlooked and would be a mistake not to include
when considering future land uses. To only look at the area for the single use of
skiing/snowboarding would also be a mistake and greatly restrict the year round potential
and added benefits to the local community.
Review of development opportunities for the purpose of this study will include those that
are economic in nature such as revenue generating, job creating, and a benefit to the local
economy through patronage of service providers such as hotel accommodations,
restaurants, fuel, and various other goods suppliers. Also reviewed are non-economic
based secondary benefits. Outdoor recreation research over the past 30 years has
demonstrated both onsite and offsite benefits that visitors and individuals in communities
attain from living near public recreation areas. These benefits can be best viewed in terms
of increased quality of life. In addition to increased quality of life, public outdoor
recreation areas provide a vehicle for promoting educational opportunities in the area for
health, wellness, and environmental stewardship.
To better understand the potential uses of the area a public focus group was held April 8
at the Detroit Lakes Campus of the Minnesota State Technical and Community College
to assist in the completion of the Development Concept section of the Detroit Mountain
Recreation Area Feasibility Study. The event was promoted for one week prior through
radio, newsprint, and the internet via facebook.com. Approximately 30 area residents
participated.
th
Four groups of eight participants were formed and asked to complete an outline that
directed the groups to list potential activities, user months, facility requirements, visitor
usage, staffing needs, environmental impact, educational opportunities, fee structure, and
concerns and benefits. A space for identifying supporting user groups and organizations
and additional comments was also provided. Participants were given 45 minutes to
complete the outline.
All suggested uses and activities were evaluated for their compatibility with the mission
statement, the overall site location, environment, and other uses. Similar uses or
activities available within a 25 mile radius were reviewed for competition as well as
support.
Summary of Data Collected

57 different uses and activities were identified.

10 of those uses were identified as four season, 36 uses were identified as three
season, 7 were identified as winter only, 3 as summer only, and 1 spring only.
11

22 uses and activities would require paid staffing and another 12 would provide
volunteer opportunities.

38 activities support the goal of providing healthy fitness activity or educational
opportunities.

11 activities or uses have potential for creating an annual event or attraction for
the area.
Survey Comments

Local academic institutions could be involved in the education process,
specifically in the sciences and recreational development. Students help with
design and layout.

Scout organizations participate in service projects.

Condo/timeshare with access to facilities. Rental cabins similar to Andes Tower
Hills.

Chalet used for visitor/nature center, weddings, reunions, business retreats.
Input was open and varied. A complete list of suggested activities and uses can be found
in Appendix A. Because this feasibility study was completed by DMRA, Inc., all
suggested uses and activities were evaluated for their compatibility with the mission
statement. The following section is a review of some of the initial outdoor recreational
activities DMRA, Inc. feels are viable based on compatibility with the mission statement,
expressed community need, supported by local community members
or recognized
citizen organizations, and have the potential to offer economic stimulus to the
community. Again, this provides a sampling of development possibilities and is not
intended to be an inclusive or definitive list.
3.1 Winter (November- March)
3.1.1 Alpine (Down-Hill) Skiing and Snowboarding
The primary winter time activity for DMRA centers around both skiing and
snowboarding. The area was originally developed for this use and has undergone
significant site improvements over the years to accommodate adequate ski and
snowboard activity. The area also includes a lodge structure, and two support buildings
as well as two surface lifts. The electric motor for one lift was replaced in 2000 and is
believed to be operational with little investment. Additional inspection of equipment and
structures is needed and was beyond the scope of this study. See, 6.1 Operation Costs,
Section six provides detail on additional infrastructure and operating expenses.
12
The popularity of the sport and the current industry trends can be found in section 5.0. In
short, the 2007/08 end of season survey conducted by the National Ski Areas Association
1
noted that the season brought over 60 million visits to resorts nationwide.
Snowboarding compliments downhill skiing by providing an equally exciting snow sport.
Snowboarding has been one of the fastest growing sports in the United States over the
last decade. It is often described as “surfing” on the snow a nd holds the interest of over
seven million participants nationwide. The sport does not require any additional
infrastructure or requirements to a mountain, unless desired. Snowboarding includes both
freeride and freestyle forms. Freeride, like skiing, involves simply descending down ski
slopes. Conversely, freestyle involves jumps, spins, the halfpipe and other “terrain park”
activities. Specialized snowboarder facilities and terrain parks do not require large-scale
mountains. For example, the General Manager of Mountain High in southern California
notes:
My market doesn’t much care whether the hill is 300 or 3,000 vertical feet, it’s
the quality of the park and the innovation of the terrain features, coupled with
convenient access and aggressive pricing that draws the rider market. I can offer
2
that here, one hour out of LA, and I can do it with man made snow.
With its tremendous growth in popularity, most ski resorts now have dedicated terrain
parks for freestyle snowboarding.
Supporting organizations include National Ski Area Association (NSAA), Midwest Ski
Area Association, Midwest Collegiate Ski and Snowboard Association, National Ski
Patrol NSP, United States Collegiate Ski and Snowboard Association (USCSA), United
States of America Snowboard Association (USASA).
3.1.2 Nordic (cross-country) Skiing
Similar to alpine skiing, Detroit Mountain has been developed for Nordic skiing and has
had extensive site development for this activity. The site is well suited for Nordic skiing
due to the abundance and variety of trails and close proximity to additional trail systems.
Becker County is home to several Nordic ski trails and Nordic ski centers. The county
currently maintains trails at Dunton Locks County Park and the new Mountain View
Recreational Area which opened fall of 2009. The trail use varies from skiers just
learning to ski to skiers that are training for marathon citizen races or high school and
1
NSAA, RCA, Incorporated (2006). 2006/07 Ski Resort Industry Research Compendium: A
summary of major research projects conducted for National Ski Areas Association. Retrieved
April 28, 2010 from https://www.nsaa.org/nsaa/members/0607-research-compendium.pdf
2
Kapuscinski, K. (2005) in BBC Research & Consulting (2005) Retrieved April 28, 2010 from
https://www.nsaa.org/nsaa/members/research/docs/2005-industry-update-ff.pdf
13
collegiate competition. The cost of maintenance is relatively low in comparison to many
other winter activities.
Nearly 700 miles of cross country ski trails are located throughout the state of Minnesota.
They are primarily maintained through the DNR Cross-Country Ski Trails Grant-in-Aid
Program, which was created by the State Legislature in 1973 and is funded from the sale
of cross-country ski trail passes. Eligible projects include cross-country ski trail
development, maintenance, winter grooming and trail administration, among others.
Bodies who may apply for aid include counties, cities, townships and private trail
3
organizations sponsored by a local unit of government
Minnesota is home to several national and international recognized Nordic ski races each
year, such as the Mora Vasaloppet, the Pepsi Challenge in Biwabik, the City of Lake
Loppet in Minneapolis, and the Minnesota Finlandia in Bemidji, to name a few. These
events draw thousands of state and local recreational skiers to national and international
elite racers.
Minnesota has a large network of Nordic skiers ranging from recreational day skiers to
Olympic competitors. Minnesota has the largest high school sanctioned Nordic ski
program in the country and a large well organized youth skiing program. Nordic skiing
has numerous benefits to offer an active population. Nordic skiing is a low impact
aerobic exercise that most people can enjoy in the wintertime.
According to a 2008 study 2.6 million Nordic skiers spent an average of 7.8 days skiing
during the 2006-2007 season. Of these 2.6 million skiers 49.3% were female and 50.7%
were male. The typical Nordic skier is college educated between the ages of 35 and 54
4
with a household income of over $100.000.00 per year. Further demographic
information on Nordic skiing can be found in Appendix B.
Supporting organizations include Cross Country Ski Areas Association, Minnesota
Nordic Ski Association, Prairies Edge Nordic Skiers, Midwest Collegiate Ski and
Snowboard Association, National Ski Patrol NSP, United States Collegiate Ski and
Snowboard Association (USCSA).
3.1.3 Snow Tubing
Although this activity was not previously offered, Detroit Mountain has adequate terrain
to provide snow tubing use. An existing surface lift could be utilized for this activity. A
study conducted by the NSAA noted that small resorts are able to differentiate
3
Hulls, M. (2007). DNR
http://newsite.mnnordicski.org
4
Maintenance
Forecast.
Retrieved
Feb.
Wiesel, Jonathan. “Demographics of Cross Country Skiers 2007 Calendar Year”.
August 2008.
28,
2010
from
Nordic Network.
14
themselves and reach out to children and families with varied forms of snow related
activities. In 2005, it was noted that more than 40 percent of ski areas responding to the
5
NSAA survey offer snow tubing. Tubing and similar low skill level programs provide an
outdoor activity that the whole family can do together regardless of experience or athletic
ability. There are no specialized clothing requirements and costs are modest. Most
importantly, tubing and similar activities introduce new participants to outdoor winter
recreation with the prospect of conversion to boarding and skiing.
Supporting organizations include NSAA, Midwest Ski Area Association
3.2 Spring & Fall (April-May & Sept-Oct)and Summer (June-August)
3.2.1 Mountain Biking
According to The Economics and Benefits of Mountain Biking, by the number of
outings, biking is the favorite outdoor activity of children ages 6-17 years. It also
continues to be a growing outdoor activity among all user groups. Once thought of as a
sport made up of twenty-something males, the demographic is consistent with skiing and
snowboarding according to Rob McSkimming, VP of Business Development for
Whistler/Blackcomb Resort. In America there are more mountain bikers than golfers, 50
6
million to 29 million.
The economic impacts of Mountain Biking are as impressive as their numbers. Mountain
Biking delivers an estimated $26 billion to the American economy. Both regionally and
nationally, the greater the number of areas located in close proximity, the greater the use.
In an IMBA survey of destination mountain bikers, the second highest ranked item of
7
importance was the number of trails. Providing additional trails within Becker County
that compliment already existing trails at Maplelag and Mountain View will translate into
greater use and extended visits to the area.
A strong example of investment in mountain bike trails systems is Cayuna Country State
Recreation Area in Crow Wing County. As part of their multiple use plan, they are
building 37.5 miles of single track mountain bike trails. It is estimated to bring 300,000
8
annual visitors and have an economic impact of $3.1 million
5
BBC Research & Consulting (2005) Retrieved April 28, 2010 from
https://www.nsaa.org/nsaa/members/research/docs/2005-industry-update-ff.pdf
6
International Mountain Biking Association and Shimano American Corporation (n.d.). Retrieved 10 April
2010 from http://www.nemba.org/documents/ShimanoEconImpactsDocument
7
Ibid.
8
Richardson,
R.
(2010)
Peddling
pedals
pays.
Retrieved
1April
2010,
from
http://www.brainerddispatch.com/stories/050110/bus_20100501005.shtml
15
Supporting organizations include International Mountain Bike Association (IMBA) and
the Minnesota Off-road Cyclist (MORC). The Minnesota Mountain Bike Series,
(MNMBS), formerly the Minnesota State Championship Series, grew 30% in
participation in 2009 from 2008. Additionally, the Wisconsin Off Road Series (WORS) is
the largest mountain bike series in the nation.
3.2.2 Camping
The Detroit Mountain area has potential for both semi-primitive and pull up camp sites.
Many regional and county parks within the state offer limited semi-primitive camping
and vehicle camping for a daily fee. It is the recommendation of DMRA Inc., that further
research be conducted to optimize the number of available sites while limiting
environmental impact.
A review of available camping within close proximity to the urban center of Detroit
Lakes offers limited choices and appears to demonstrate a need for additional tent
camping in semi-primitive settings. Current camping vendors include The American
Legion Camp Ground, Country Campground, Long Lake Campsite and RV Resort, and
Shorewood Campground on Long Bridge Road. Three of the above listings offer tent
camping. None of the above sites offer primitive or semi-primitive tent camping in a
natural setting.
It is presumed if semi-primitive tent camping were offered on Detroit Mountain a daily
camping fee of $10-$20 per site would be collected. Additionally, primary occupancy
would likely come from those using the area for other activities. During holiday
weekends and weekends with local special events that draw additional tourists, demand
would increase.
3.2.3 Hiking
Hiking, like a number of outdoor recreational activities, continues to become more
popular. With little to no cost to participate, and the increased emphasis on becoming a
healthier nation, it is not a surprise. Hiking is also popular because it is both a group and
individual activity, appealing to a broad spectrum of people.
With over 200-acres, Detroit Mountain would be an ideal location for hiking trails due to
the mixed difficulty terrain and ability to customize trail length. Detroit Mountain is
unique from other hiking trails in the area due to the elevation gain and ability to offer
overlooks and vistas. It was recommended by the focus group that an observation deck or
tower be incorporated and this could be a heavily promoted destination for trails. Detroit
Mountain is an important historical point. It is significant to local history and dates to the
Anishinabe people who used the mountain top to watch over their land.
Supporting Organization: Minnesota Rovers Outing Club
16
3.2.4 Horseback Riding
The state of Minnesota has 19 designated horseback riding trails within the state park
system. Trails vary in length from 5 to 75 miles. There are an additional 13 state
designated trails of varying length and terrain. Of the 13 trails, only the Heartland Trail is
located in the Northwest portion of the state. With proper trail management practices,
DMRA, Inc. feels the area may be able to offer limited on-site use.
The Becker County Mounted Posse has expressed interested in being able to use the area
as a training, meeting and staging area. With support and involvement of this group,
equestrian educational opportunities could exist. They have committed initial financial
assistance in the amount of $3500 for site, facility and trail development along with
ongoing support through fund raising activities.
Supporting organizations include Becker County Mounted Posse and Trailblazers Saddle
Club
3.2.5 Bird Watching, Wildlife Viewing, Nature Walking
Bird watching is an activity that has high participation rates among all age groups. Based
on a 2001 US Fish and Wildlife Service (USFWS) survey, 18.5 million Americans
actively view birds away from home with a total of 46 million birders. Minnesota has the
fourth highest participation rate of all states. The top reported viewing location is public
9
woodland areas.
Another USFWS survey, "2006 National Survey of Fishing, Hunting, and WildlifeAssociated Recreation" reported wildlife watching (where birding is the lion's share), the
trends were all headed upward. From 2001 to 2006, the increase in both around home and
away-from-home wildlife watching rose, respectively, 8% and 5%. Of the 71 million
people who enjoyed wildlife watching in 2006, almost a third (32%) took trips more than
10
a mile away from home.
Nature walking is often associated with both bird watching and wildlife viewing. It is
also considered a less strenuous form of hiking. Walking in nature has a number of
therapeutic advantages such as stress reduction, improving overall health and wellness
and when incorporated with interpretive signage can be educational.
If Detroit Mountain were a public recreation area, all of these activities would be
provided at little or no cost. The 2001 USFWS survey best illustrates the economic
impacts of providing these activities near an urban center According to the 2001 USFWS
9
La Rouche, G. (2002) Birding in the United States: A Demographic and Economic Analysis. Retrieved 5 March
2010 from http://www.fs.fed.us/outdoors/naturewatch/start/economics/Economic-Analysis-for-Birding.pdf
10
National survey of fishing, hunting, and wildlife associated recreation. Economics and Statistics
Administration. Retrieved 5 March 2010 from http://www.census.gov/prod/2008pubs/fhw06-ia.pdf
17
survey, an estimated $32 billion in retail sales, $85 billion in overall economic output,
11
and $13 billion in state and federal income taxes. These national numbers are believable
in light of the success of Detroit Lakes Festival of Birds, an annual four day event now in
th
its 13 year.
Supporting organizations include Minnesota Audubon Society, Agassiz Audubon
Society, National Audubon Society, and Pine to Prairie Birding trail
3.2.6 Disc golf
Frisbee golf has been a steadily growing sport and outdoor activity since its creation in
the 1960’s. There are over 3,000 courses in the US with 17 in North Dakota and 147 in
12
MN. The City of Detroit Lakes has its own 9 hole course that sees hundreds of visitors
each week during peak seasons.
Two notable 18 hole courses in Minnesota are located on ski areas. One at Giants Ridge
(Biwabik, MN) and the other at Hyland Ski and Snowboard Area (Bloomington, MN).
Disc golf courses are ideally suited for ski areas due to the elevation change, availability
of acreage, and the ability to design the course around existing structures and terrain.
Most courses are available to play for little or no cost due to the minimal infrastructure
cost. Courses require a small throwing tee pad and a metal basket. An average 18 hole
course will take three hours to play and cover up to three miles of walking. Given this,
the health benefit to cost ratio is superior.
Although disc golf courses may generate little to no on-site revenue there is an economic
benefit. In 2007 the Great Lakes Disc Golf Club was a host partner for the 2007
Professional Disc Golf Association (PDGA) Amateur World Championships in
Milwaukee. Over 500 competitors from around the globe participated. The weeklong
event provided a tremendous boost to the popularity
of Milwaukee disc golf and
generated over $1 million for the local economy. Small annual disc golf events like this
are common at well designed courses and attract 200-300 participants. These two to three
day events incorporate competition in disc golf, freestyle Frisbee, and ultimate Frisbee.
Supporting organizations include Minnesota Frisbee Association, St. Cloud Disc Golf
Club, North Dakota Disc Golf Association (NDDGA), and the Professional Disc Golf
Association (PDGA)
11
La Rouche, G. (2002) Birding in the United States: A Demographic and Economic Analysis. Retrieved 5 March
2010 from http://www.fs.fed.us/outdoors/naturewatch/start/economics/Economic-Analysis-for-Birding.pdf
12
2010. About Disc Golf page (2010). http://www.pdga.com/
18
4.0 Ownership and Operating Structure
One issue facing the potential development of Detroit Mountain as a viable recreation
area is the choice of the optimal ownership and operating structure. While there are a
multitude of possibilities, most community recreation areas fit into one of the following
three categories:
1.
2.
3.
Private Ownership and Private Operation
Public Private Partnership (PPP)
Public Ownership and Public Operation.
This section of the study will focus on the advantages and disadvantages of each of these
categories.
4.1 Private Ownership and Private Operation
This is the structure that was used by Detroit Mountain during its past operation. The
property was owned first by private individuals and eventually by members of the same
family group, some of whom continue to have an ownership interest in the property.
Capital was raised through revenue of the operation and through private bank financing.
The owner/operators were responsible for payment of real estate taxes, insurance and for
all other employee and operational costs. See the historical data section of this study for
information on past operation of Detroit Mountain.
Examples of other regional ski areas using this structure are:
4.1.1 Andes Tower Hills (Alexandria)
This area is owned and operated by a family owned corporation on land that is owned by
that corporation but has been in family ownership for many years. There are no land
acquisition costs. Fees are charged for all of these activities. Since this is private
property, there is no public access. The property pays real estate taxes in the
approximate sum of $11,638.00 (2010) and insurance for operations. Capital
improvements are financed through operations revenue and commercial bank loans.
Andes Tower Hills is operated as a private for profit business.
4.1.2 Buena Vista (Bemidji)
The land upon which the ski area sits has been owned by the same family since 1936 and
thus there are no land acquisition costs. Since this is private property, there is no public
access. The property pays real estate taxes in the approximate sum of $4,864.00 (2010)
and insurance for operations. Capital is raised through operations revenue and
commercial bank loans. Buena Vista is operated as a private for profit business.
19
4.1.3 Advantages
Private ownership and private operations remove all risks to public entity. Private
ownership and private operation can have obvious benefits if the cash flow is sufficient to
generate profit in excess of capital and operating costs. In both of the examples noted
above, there are no land acquisition costs and thus no debt service payments for land
acquisition drawing upon revenue, leaving the revenue of the operation available for
capital investments in infrastructure, maintenance, utilities, insurance, real estate taxes
and employee costs.
4.1.4 Disadvantages
Public entity loses all control of maintaining area as being open to the public. The
negative consequences of this type of structure arise when the revenue from fee based
activities is not sufficient to pay the ownership and operation costs such as debt service
on land and capital improvements, employee costs, utilities, insurance and real estate
taxes. Recreational facilities that would otherwise provide a valuable public service
either do not exist or cease to exist because they cannot generate sufficient profits to pay
necessary debt service and operating costs. At its heart, this is the reason for the failure
of the previous Detroit Mountain. This type of structure also results in a focus on only
those recreational activities for which fees can be charged and effectively collected,
omitting a wide spectrum of public recreation that would otherwise benefit the health and
welfare of the community. The task is to find an ownership and operational structure that
can reduce ownership and operational costs in order to reduce the operating revenue
necessary to make the facility viable and to enable the facility to offer activities that do
not necessarily afford the opportunity to generate revenue.
4.2 Public Private Partnership (PPP)
A PPP is a collaborative, mutually beneficial venture between two or more partners in
pursuit of jointly agreed upon goals, with a division of risks and labor based on the
contributions and expertise of each partner.
The following goals were set for the investigation and analysis of Public Private
Partnerships (PPP) for the Detroit Mountain Recreation Area (DMRA):

Maintain long-term public ownership of the Detroit Mountain Recreation Area
(DMRA): viewed as part of the public’s basic strategy of ensuring the full public
benefits of the DMRA as part of the public’s recreational network.

Ensure provisions for quality, effective recreational opportunities: controlled
through fundamental ownership or contractual structuring.

Allocate operating and revenue risks away from the public entity to the maximum
extent possible: must be commensurate with the potential to allocate rewards to
the public entity.
20

Make the greatest use of private sector financing opportunities: revolves around
leveraging private funds for infrastructure improvements and operations.
Examples of Public Private Partnership (PPP) facilities in the Detroit Lakes area include
the Detroit Country Club, Detroit Lakes Community and Cultural Center, Legion
Campground, and the Detroit Lakes Airport.
Numerous ski resorts and a variety of recreational facilities are owned by public entities
such as the state, county or a municipality and operated by private entities. These
facilities are not limited to ski areas but include National/State Parks with various
amenities such as lodging, dining or equipment rental operated by private
concessionaires, public golf courses, public campgrounds and community centers. These
facilities are typically open to the public on a no fee or fee basis, with certain amenities or
activities operated by a concessionaire that can be confined to a limited location where
there can be gate control in order to charge additional fees for use. It is beyond the scope
of this study to investigate and compare all of these various types of recreational
facilities.
The consistent theme running through all of these examples is public ownership of the
land and physical improvements with private operation of all or a portion of the
recreational facility by a private for profit business or a non profit organization through
use of a lease or a management agreement that achieve a proper balance of risks and
benefits. The land is either already owned by the public or acquired by the public
through donation, purchase or tax forfeiture. The infrastructure is constructed and
installed through a combination of public financing and donations and is thereafter owned
by the public. The private for profit or non profit organization operating the facility uses
the revenue of the operation to pay operational costs such as employee expenses,
maintenance and insurance and, if revenue is sufficient, may also contribute to the cost of
capital investments in infrastructure and payment of real estate taxes or some other lease
fee or management fee to the public owner. Non profit operators may also have access to
tax deductible donations if they are structured as a 501 (c) (3) entity.
The key here is that the operating entity does not have land acquisition costs, and thus no
debt service payments for land acquisition drawing upon revenue, leaving the revenue of
the operation available for maintenance, utilities, insurance, employee costs and perhaps
capital investments in infrastructure.
Regional examples of community ski areas using this structure are:
4.2.1 Mount Itasca (Coleraine/Grand Rapids)
Mount Itasca is operated since 1906 by Itasca Ski and Outing Club, Inc., a Minnesota non
profit corporation on land that is owned by the City of Coleraine. Since the land is
owned by a municipality, there are no land acquisition costs and no real estate taxes
generated. The non profit corporation generates revenue and uses that revenue to pay
maintenance, employee costs and other operating costs, capital improvements and
21
insurance. Capital is raised through donations and membership fees. This is primarily a
winter facility, but as municipal property is it open to the public and available for hiking
in the summer. See Section 6 of this study for financial information (do we have this?).
4.2.2 Ski Gull (Brainerd)
Ski Gull is operated by Ski Gull, Inc., a Minnesota non profit corporation on land that it
leases from the State of Minnesota and from a private conservation club. Since this is
partially private property, there is no public access. The property pays real estate taxes in
the approximate sum of $3,434.00 (2010) on the privately owned property and insurance
for operations. Capital is raised through operations revenue, bank loans and donations.
Ski Gull is operated as a 501 (c) (3) charitable organization. The organization pays a
lease fee to the owner of the private property and to the State of Minnesota. See Section 6
of this study for financial information.
4.2.3 Detroit Country Club
Nearly one hundred years ago in 1916 members of the Detroit Lakes community had the
foresight to see the need for a golf course to provide recreation to local residents and to
provide an attraction to visitors in this growing tourist community. Through a variety of
means including purchase and donation land out side of the City was acquired by the City
of Detroit Lakes and the Detroit Country Club was born. Over the years facilities have
been developed, expanded and infrastructure created by use of a combination of
operating revenue and loans from the City of Detroit Lakes. The Detroit Country Club is
operated by non profit corporation under a management agreement with the City of
Detroit Lakes.
4.2.4 Legion Campground
The area of the City of Detroit Lakes known as the Legion Campground has been owned
by the City of Detroit Lakes for many years and operated as a seasonal campground by
the American Legion. The property generates revenue for the American Legion Club
under a set fee management agreement with the City of Detroit Lakes that also provides a
set amount of revenue to be paid to the City. Excess revenues are held for capital
improvements.
4.2.5 Detroit Lakes Community and Cultural Center
This is the most recent example of a Public Private Partnership (PPP) within the City of
Detroit Lakes. The land upon which the facility exists was originally owned by the
Detroit Lakes school district and later transferred to the City of Detroit Lakes when a new
school was constructed. It remains owned by the City. After years of disuse the facility
was expanded and improved by a partnership between the City of Detroit Lakes and
Holmes Center, Inc., a Minnesota non profit corporation formed for that purpose.
22
Donations assisted with the construction and development of the facility and continue to
assist with the cost of continuous operations.
4.2.6 Wething Field
Although not a pubic recreation area, this is the regional airport facility owned by the
City of Detroit Lakes and operated through a Joint Powers agreement between the City
and Becker County. All real property and facility improvements are owned by the public.
The joint powers commission leases certain facilities to a private fixed base operator that
operates the airport on a for profit basis.
4.2.7 Advantages
Incentive clauses can be included to ensure proper operations and the public entity is
removed from some risks. The benefits of this type of structure are primarily the
possibility for public access, availability of non revenue generating recreational activities
in addition to the ski operation (such as Mt. Itasca offers), the potential for reduced
operating costs due to no land acquisition costs or debt service, limited or no real estate
taxation, and the potential for recreational use immunity from tort liability or municipal
tort liability limits so that those non revenue generating public recreational activities can
exist. In effect, this structure can permit the area to be a public park offering both
revenue generating activities and non revenue generating activities, with the potential tort
liability for those non revenue generating activities limited. The scope of recreational
activities can be focused on public service and the benefit to the health and welfare of the
community rather than limited to those that result in revenue generation. This type of
ownership and operational structure can reduce ownership and operational costs by
limiting or eliminating real estate taxes in order to reduce the operating revenue
necessary to make the facility viable. Insurance costs to the operating entity can be
focused on the ski, snow board and tubing facilities operated under a lease or
management agreement. In addition, a non-profit organization may have the capacity to
raise capital through charitable or other donations in addition to operational revenue.
4.2.8 Disadvantages
Down sides to this type of structure usually focus on organizational continuity, a lack of
access to capital investment and commercial bank financing that a private for profit
owner would have, and the loss of real estate tax revenue as a result of the public
ownership of the property and infrastructure. These negative consequences can be offset
by provisions in the lease or management agreement that provide for public
representation on the board of the lessee or management company and that dedicate
operational revenue to operational costs and capital investment with any excess revenue
paid to the public owner.
This type of ownership and operational structure is not new to the Detroit Lakes area. As
noted above, Public Private Partnerships (PPP) already exist and have existed for many
23
years in the area as a means to accomplish a public service or create a local amenity that
the public deems worthy, but that does not promise the potential for sufficient revenue
and profit to entice private enterprise to provide the service.
4.3 Public Ownership and Public Operation
The most common examples of recreational facilities owned and operated by the public
are public parks. These facilities may or may not charge an entrance fee or use or
participation fee for some specific amenity. Often the public will be encouraged to
purchase an annual pass for access to the facility or some sort of daily or annual vehicle
pass. Examples include national parks and monuments, state parks and campgrounds,
some alpine ski areas and many public access trails used by cross country skiers and
others, county parks and municipal parks.
Local examples of these facilities include the Dunton Locks County Park, Mountain
View Recreational Trails (County), the Detroit Lakes City Park and the Detroit Lakes
City Beach, tennis courts, Pavilion and Recreation Center. In these local examples
limited fees are charged for participation in certain activities at the recreation center and
for use of the pavilion. However, fee revenue is minimal. Lack of effective gate control
or enforcement makes it impossible to generate direct revenue from these amenities.
However, these facilities do provide a valuable service to the residents of the community
and an attraction to visitors, with the secondary benefit that those people utilizing the
facilities do also support local businesses, thus
generating jobs and secondary tax
revenue.
There is at least one example of a ski area both owned and operated by the public:
4.3.1 Giants Ridge
This facility, located near the iron range town of Biwabak, is owned by the Iron Range
Rehabilitation and Recovery Board (IRRRB), a State of Minnesota agency funded by
taconite taxes. The land was originally in private hands but was purchased by the IRRRB
in 1984 with the goal of diversifying the area’s economy and t
o encourage tourism.
While the ski area is both owned and operated by the IRRRB, to some extent the area is
increasingly taking on the characteristics of a Public Private Partnership (PPP) in that
resort’s food and beverage
while owned by the IRRRB, the golf courses as well as the
operations are managed by a private for profit corporation. The private corporation pays
the IRRRB a base fee plus a share of the gross revenues. Another local concessionaire
manages the rental and repair shop for the ski area as well as canoes and kayaks during
the summer, paying a percentage of gross revenues to the IRRRB. In addition, the
lodging facilities are owned and operated by a private company on IRRRB land under a
long term lease arrangement. This type of structure has been successful in that it permits
private investment in the amenities and reduces labor costs versus the labor costs incurred
by the IRRRB in running the ski area. Long term goals for the IRRRB are to transition
the ski operation to a private operator as well.
24
4.3.2 Advantages
It would collect all revenue directly. Public ownership and public operation fosters
public access and is effective to establish and promote the availability of non revenue
generating recreational activities that would not be available but for the direct
involvement of governmental entities. These facilities offer the public an amenity and
are protected either fully or partially by recreational use immunity from tort liability and
the municipal tort liability limits, without which these non revenue generating public
recreational activities would not exist. In effect, this structure is best suited to public
parks. Whether those public parks offer both revenue generating activities and non
revenue generating activities is a decision the public owner must weigh, with the trend
being that revenue generating activities are more and more being operated not by the
public entity, but by a private for profit or non profit entity under a lease or management
agreement. This leaves the facilities that cannot generate revenue to be a public service
offered and operated by the public for the benefit of the health and welfare of the
community.
4.3.3 Disadvantages
The public entity would assume all risks and/or costs associated with the success and/or
failure of DMRA. Down sides to this type of structure usually focus on relatively high
labor costs and inflexibility as to management decisions, political interference and lack of
stability due to budget fluctuations of the public entity that owns and operates the facility.
4.4 Summary and Recommendation
4.4.1 Private Ownership and Private Operation
Private ownership and private operation removes all risks to public entity. However, the
public entity loses all control of maintaining the Detroit Mountain Recreational Area as a
resource for the entire community. The possibility of Detroit Mountain being bought by
a private entity and being used for purposes other than as a valuable community resource
is very high. Another risk is that the private entity, if they were to open it as a
recreational facility, would eventually experience the same failure as the previous owners
did. Smaller recreational areas such as Detroit Mountain are more sensitive to down turns
in seasonal events, due to the burden of their initial investments. It is very likely that the
wide spectrum of public recreation that would otherwise benefit the health and welfare of
the entire community would be lost forever.
4.4.2 Public Private Partnership’s
Public private partnership disadvantages include the possibility of not finding the correct
balance of risks and benefits between the public and private entity or not capitalizing on
the strengths and weaknesses of each entity. With a properly negotiated contract these
concerns can be minimized. The advantages of a Public Private Partnership include
maintaining the Detroit Mountain Recreational Area as a resource for the entire
25
community at a low risk to the public, while providing profit generating resources to a
private entity and the possibility of generating numerous benefits to the public entity
including capital, economic growth and jobs all the while protecting a long term asset and
one of the more valuable resources in Becker County.
4.4.3 Public Ownership and Public Operation
Public ownership and public operation advantages include that it would collect all
revenue directly and would protect the Detroit Mountain as a long term asset and
valuable resource. However, public ownership and public operation would put the risks
and/or costs associated with the success and/or failure of DMRA solely on the public
entity. Down sides to this type of structure usually focus on relatively high labor costs
and inflexibility as to management decisions, political interference and lack of stability
due to budget fluctuations of the public entity that owns and operates the facility.
4.4.4 Recommendations
Recommendations include a type of Public Private Partnership (PPP) to be negotiated
between potential private for profit or non-profit operators and the public entity that
invests in the ownership of the land that will become the recreation area. There are
merits to a lease and merits to the use of a management agreement. It is beyond the
scope of this study to weigh those relative merits, but it is clear that the use of some form
of Public Private Partnership (PPP) is both a necessary requirement for the development
of the Detroit Mountain Recreation Area and the optimal arrangement for its future
success.
26
5.0 Industry Overview
This section provides an overview of the nation’s current ski industry.
5.1 Demographics and Trends
Although the ski industry has decreased in the number of resorts over the last 20 years,
(from 727 to 481), the sheer number of skiers has increased. The following highlights
important industry facts:








The 2007/2008 ski season welcomed over 60.05 million skier/snowboarder
13
visits.
There are approximately 6.4 million skiers and 5.2 million snow borders in the
14
United states.
The average age of participants is 36.5 years. Skiers of the Baby Boom generation
15
and their parents make up 33% of al skiers.
Although it varies by region, men make up a little over have of the ski market;
women, 40-49%.
In the 2007/2008 season, 72% of skiers had incomes greater than $50,000/year
and 48% greater than $100,000/year. This is a helpful demographic b/c this target
can be accessed for real estate development, amenities, and terrain
16
improvements.
This may also relate to skiers being large consumers of ski/snowboarding
17
equipment and accessories such as skis, boots, and clothing.
Skiers tend to be regular travelers and are willing to travel to enjoy skiing.
18
The sale of season passes has increased 150% from 1998-2002 which translated
into increased skier/snowboarder visits. Pass holders ski/snowboarder twice as
much as non-pass holders; 25 days for season pass holders as compared to 11
19
days for non-pass holders.
13
National Ski Areas Association: Kottke National End of Season Survey; 2008
Ski Area Citizens’ Coalition (2008). National Ski Industry Demographics and Trends 2008. Retrieved
April 1, 2010 from www.skiareacitizens.com.
15
National Ski & Snowboard Retailers Association: Snowboarding and Skiing Participation; 2006.
16
Ski Area Citizens’ Coalition (2008). Nationa l Ski Industry Demographics and Trends 2008.
17
Formichelli, M. (2010) Skiers: Hitting the Slopes. Retrieved from www.tarketmarketingmag.com
18
ibid
19
National Ski Areas Association: 2002/03 National Demographic Study; 2003.
14
27
5.2 National Ski Areas Association
The National Ski Areas Association (NSAA) is a trade association for ski owners and
operators. It represents 325 alpine resorts that account for more than 90 % of the
skier/snowboarder visits nationwide. The NSAA is an important source for future
information for Detroit Mountain. The association provides the following information
and tools:





Annual ski industry statistics
Annual conferences and tradeshows
Bi-monthly industry publication
State/Federal Government affairs
Educational, employee, and management information (i.e., industry regulations
and compliance, environmental regulations, state regulatory requirements, resort
operation material).
The current feasibility study was able to access a limited amount of information from the
association by paying membership fees. However, much of the financial and statistical
details are only available at cost and therefore out of the scope of this project. Below is a
20
summary of the Economic Analysis report which is an annual research project
conducted annually by the NSAA. Two additional annual report summaries can be found
in Appendix C. Full reports are available for a fee by the NSAA.
5.2.1 Economic Analysis of US Ski Areas.
This study documents economic and financial trends and patterns of interest in the ski
resort industry both nationally and regionally, with an emphasis on revenues, expenses,
and margins assets, liabilities, and shareholder’s equity; revenue and expense per skier
visit; return on equity and operating profit on fixed assets; and other financial ratios and
21
measures.
Key Highlights

Overall Increase in Average Gross Revenue. In 2006/07, average resort revenue
grew by 2.7 percent, to a total of $23.0 million per resort on average (indicative of
lift ticket pricing strength, greater penetration in certain departments such as
lessons, food & beverage, retail efforts and up-selling guests).
20
21
NSAA (2006) Research compendium – A summary of major research projects. Retrieved April 4, 2010
from www.nsaa.org
28

Strong Profitability Figures. Industry-wide, operating profit increased to $5.7
million per resort from $5.5 million, an increase of 4.2 percent. Overall operating
profit margin was 24.8 percent nationally, up slightly from 24.4 percent the prior
year. As well, pre-tax profit rose to $2.8 million per area (up from $2.7 million);
pre-tax profit margin increased to 12.3 percent from 12.1 percent in 2005/06.

Strong Performance. Largest resorts up 29.2%; other three sizes up between 1317%.







Longer-Term Improvement for Industry. Gross revenue has grown by 21.5
percent (average of 4.3 percent per
year), operating profit by 27.9
percent
(average of 5.6 percent per year), and pre-tax profit by 66.4 percent (average of
13.3 percent per year).
Increase in Total Revenue per Skier Visit. One of the most important metrics for a
ski resort is total revenue per skier visit – or how much money, on average, the
resort brings in per customer. This season, industry averaged $74.94 in total
revenue per skier visit, up strongly from the year prior ($67.93, up 10.3 percent).
Increase in Ticket Prices. Lift tickets are the single largest revenue producer for
the industry. Average rose again this season for both adult and children. This
trend has continued over the last several years with no ill effect.
Balance Sheet Accounts. Overall, average assets and liabilities were up compared
to last season.
Makeup of Revenues and Expenses. The average proportion of total revenue from
lift ticket sales has been steady around 46 percent. Most major revenue centers
increased average gross departmental revenue this year, including lift tickets (up
1.5 percent), lessons (up 10.2 percent), retail stores (up 2.2 percent), and food &
beverage (up 2.2 percent). Declines were evident in rental shops (down 2.1
percent) and accommodations (down 1.4 percent). In general, operating expenses
grew in the ski resort industry (up 2.2 percent on average), though less than gross
revenues (up 2.7 percent). Thus, as a percent of revenue, some expense line items
actually declined, most significantly insurance, depreciation, and payroll taxes; on
the other hand, interest, direct labor, other direct, and cost of goods sold increased
as a percent of revenue.
Summer Revenues. Nationally, 77 percent of ski areas report revenue from
summer operations. The average proportion of total revenues from
summer
operations among all reporting ski areas is 7.6 percent. Among those ski areas
with summer revenues (excluding the 23 percent without summer operations),
average revenue during the summer months was $2.8 million.
Improvement of Debt to Cash Flow measured 2.09 years in 2006/07, an
improvement from 2.17 years in 2005/06. This result means that the industry as a
29
whole would take two years to retire its current level of long-term debt at the
current levels of cash flow. This ratio has been relatively stable for the past three
years (around 2.00), suggesting a more secure and stable financial position for the
industry as a whole.
5.3 Ski Resort Information: Minnesota and Surrounding Area
MN Ski
Areas
Afton Alps
Andes
Tower
Hills
Size Acres # Lifts
300
18
45/900
4
Buck Hill
45
Buena
Vista
16 runs
Elm Creek
Winter
Recreatio
n Area
multiple
Giants
Ridge
36 runs
Hyland
Ski and
Snowboar
d
multiple
Lutsen
Mountain
92 runs
Mount
Frontenac 17 runs
Mount
Kato
19 runs
Powder
Ridge
15 runs
7
Ski Gull
Spirit
Mountain
Quanda
Mountain
Welch
Village
13 runs
3
24
8
Wild
Mountain
multiple
Location
Hastings,
3 carpets MN 55033
1 carpet
Alexandria,
MN 56343
Burnsville,
MN 55306
4
Bemidji, MN
terrain pk 56601
6
Maple
Grove, MN
55369
Biwabik, MN
terrain pk 55708
6
8
6
8
7
6
37 runs
10
23
10
other
Bloomingto
n, MN
55438
crpt/terrai Lutsen, MN
55612
n
Frontenac,
terrain pk MN 55026
Mankato,
terrain pk MN 56001
Kimball, MN
terrain pk 55353
Nisswa, MN
56468
Duluth, MN
terrain pk 55810
Hill City, MN
terrain pk 55748
Welch, MN
terrain pk 55089
Taylors
Falls, MN
terrain pk 55084
Distance
From DL
Season
Pass
Single
Day
Tubing
Summer
235
439/319
40/29
X
X
93
339/289
35/30
X
X
226
385/295
38/28
X
92
160/220
27/32
X
189
199
15
X
X
211
by season
X
X
215
199
306
by season
X
X
269
by season
280
220/1000
20/33
X
X
157
189/279
22/35
X
X
105
155/200
27/47
204
225/705
18/29
X
118
246/574
20/52
X
X
252
by season
32/47
214
260/360
22/40
X
X
15
30
WI Ski Areas Size Acres # Lifts
Coffe Mill
Ski Area
Granite
Peak
Mont du
Lac
The
Whitecap
Mountains
Trollhauge
n
10 runs
2
other
crpt/terrai
n
Location
Wabasha,
WI 55981
Distance
From DL
Season
Pass
Single
Day
287
200/700
15/30
400
244/944
30/40
210
n/a
Tubing
Summer
29-Dec
X
X
X
75 runs
10
8 runs
1
Wausau,
terrain pk WI 54402
Superior,
terrain pk WI
43 runs
22
runs/90
ac
6
terrain pk Upson, WI
312
693/1122
22/45
X
3
Dresser, WI
terrain pk 54009
238
340/890
25/41
X
321
200/300
30/40
X
327
181/269
35/47
334
n/a
15/22
X
238
n/a
20/32
X
249
180/520
2-/25
MI Ski Areas
Big
Powderhor
n Mt
Indianhea
d Mt
23 runs
8
25
8
Bessemer,
2 terr.pks MI 49911
Wakefield,
terrain pk MI 49968
X
ND Ski
Areas
Bottineau
Winter Park
40
5
Frost Fire
10 runs
2
Huff Hills
10 runs
4
Bottineau,
North
Dakota
Walhalla,
North
terrain pk Dakota
Mandan,
North
Dakota
X
X
31
6.0 Comparative Financial Analysis and Pro Forma
Comparative Performance Projections (with similar resorts)
Detroit Mountain - Pro Forma
Scenario 1Scenario 2Scenario 3Scenario 4Scenario 5Scenario 6Scenario 7
Operations Lift Tickets
$71,125
$80,016
$88,906
$97,797
$106,688 $115,578 $124,469
Operations-Season Pass$100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000
Operations -Rental
$49,245 $55,401 $61,557 $67,713 $73,868 $80,024 $86,180
operations Tubing
$26,737 $30,080 $33,422 $36,764 $40,106 $43,448 $46,790
Operations- Ski School $3,559
Operations - Concessions$41,542
Fundraising Donations $50,000
Programs
$30,456
Gaming
$6,757
Total Sales
$379,421
Concessions
$20,771
$4,003
$46,735
$50,000
$34,263
$7,601
$408,099
$23,368
$4,448
$51,928
$50,000
$38,070
$8,446
$436,776
$25,964
$4,893
$57,121
$50,000
$41,877
$9,290
$465,454
$28,560
$5,338
$62,314
$50,000
$45,684
$10,135
$494,132
$31,157
$5,783
$67,506
$50,000
$49,491
$10,979
$522,809
$33,753
$6,228
$72,699
$50,000
$53,298
$11,824
$551,487
$36,350
Gross Profit
$358,650 $384,731 $410,813 $436,894 $462,975 $489,056 $515,138
Advertising and Promo
Bank Service Charges
Contract Services
Dues and Memberships
Education and Training
Insurance Expenses
Interest Expense
Leases
Permits
$5,459
$141
$5,808
$878
$1,203
$17,286
$2,627
$12,515
$612
$5,872
$141
$6,247
$878
$1,203
$18,593
$2,826
$13,461
$612
$6,284
$141
$6,686
$878
$1,203
$19,899
$3,024
$14,407
$612
$6,697
$141
$7,125
$878
$1,203
$21,206
$3,223
$15,353
$612
$7,109
$141
$7,564
$878
$1,203
$22,512
$3,422
$16,299
$612
$7,522
$141
$8,003
$878
$1,203
$23,819
$3,620
$17,245
$612
$7,935
$141
$8,442
$878
$1,203
$25,125
$3,819
$18,190
$612
Repairs and Maint Outside
$17,490
Meals and Ent
$1,118
Mileage Reimbursement $2,805
Merchant Fee
$2,944
Postage and Deliver
$1,277
Printing and Reproduction$1,306
Professional Fees
$11,223
Real Estate Taxes
$5,957
Repairs and Maint Buildings
$13,326
Supplies Expense
$7,517
$18,812
$1,202
$2,805
$3,166
$1,374
$1,405
$11,223
$6,407
$14,333
$8,086
$20,134
$1,287
$2,805
$3,388
$1,470
$1,504
$11,223
$6,857
$15,340
$8,654
$21,456
$1,371
$2,805
$3,611
$1,567
$1,603
$11,223
$7,308
$16,347
$9,222
$22,778
$1,456
$2,805
$3,833
$1,663
$1,701
$11,223
$7,758
$17,354
$9,790
$24,100
$1,540
$2,805
$4,056
$1,760
$1,800
$11,223
$8,208
$18,361
$10,358
$25,422
$1,625
$2,805
$4,278
$1,857
$1,899
$11,223
$8,658
$19,369
$10,927
Telephone and Internet $2,677
$2,677
$2,677
$2,677
$2,677
$2,677
$2,677
Utilities
$28,142 $28,142 $28,142 $28,142 $28,142 $28,142 $28,142
Wages and Salaries
$130,572 $140,441 $150,310 $160,179 $170,048 $179,917 $189,786
Total Expenses
$272,885 $289,907 $306,928 $323,950 $340,971 $357,992 $375,014
Net Ordinary Income
$85,765
$94,824
$103,884 $112,944 $122,004 $131,064 $140,124
32
6.1 Estimated Ski Area Start-Up Cost
Operational costs were estimated by Paul Nordland, General Manager of Eagle Ridge
Resort, Lutsen, Minnesota.
Description
Price
06 Pisten Bully PB200 Terrain Park Edition groomer/2700hours
$ 135,000.00
Snow Guns used
$
30,000.00
Revamp pump house and pipeline
$
25,000.00
Revamp electrical for snow making
$
10,000.00
Skis
$
30,000.00
Ski Boots
$
25,000.00
Poles
$
5,000.00
Snowboards
$
8,000.00
SB Boots
$
5,000.00
Ski/SnowboardTunimg Equipment
$
25,000.00
Borer Handle Tow
$
40,000.00
Safety signage, bamboo, fencing etc.
$
5,000.00
Ski Patrol Equipment
$
5,000.00
Terrain Park Features
$
5,000.00
Lift ticket print and tracking system.
$
17,000.00
Tow Rope
$
10,000.00
Tow Rope
$
10,000.00
Total
$ 380,000.00
6.2 Foundation Development [501(C)(3)]
Developing a fundraising model for the DMRA will be necessary for initial costs and
annual operations, as noted in the pro forma. With this in mind, one of the initial
decisions of the DMRA grassroots group was to establish an organization with 501c3 IRS
status. As such, the following steps have been completed.
The DMRA was organized to help explore the feasibility of re-opening Detroit Mountain
as a year round recreational area. The group consists of 15 board members. The officers
and members are noted below. By June 2010 the 501-c-3 nonprofit status application
paperwork will be filed with the Internal Revenue Service. Articles of Incorporation have
been created and reviewed with appropriate signatures of incorporators. In addition, bylaws have been approved and are currently in place.
33
Board Members
Officers:
Jeff Staley, president
Mark Fritz, vice president
Cyndi Anderson, secretary/treasurer
Chris Bergen
Bob Bristlen
Steve Daggett
Dan Josephson
Aaron Lauinger
Ron Paskey
Charlie Ramstad
Steven Schmit
Tony Schmitz
Shelly Stowman
Milt Wilson
Deb Wimmer
6.3 Grant Funding
Funding for fitness initiatives has become more prevalent as awareness on obesity in
America has increased. First lady Michelle Obama launched her initiative called Let's
–a
Move in early February. Noting that one in three children is overweight or obese
daunting statistic continues to be highlighted in the media. The dollars the first lady
22
proposed to address the issue is $10 billion over 10 years.
Exploring grant possibilities
will be an important strategy for the DMRA to be successful. Initiatives on fitness are
just one area to explore. To date, the DMRA group has identified other potential
opportunities.
Otto Bremer Foundation $200,000
Legacy Amendment Funding $100,000
USDA (RBEG – Rural Business Enterprise Grant) $99,000-$250,000
Mardag Foundation $50,000
Detroit Lakes Area Community Foundation $10,000-$50,000
6.4 Fundraising
Developing a fundraising model for the DMRA will be necessary for initial costs and
annual operations.
22
Givhan , R. “First lady also aims for fitness priority for kids” The Washington Post. Washinton, D. C. (February 24,
2010).
34
At present, no fundraising has been conducted; however, there have been individuals and
organizations who have expressed interest in supporting funding efforts. For example, the
executive director of SkiDUCK contacted the DMRA group noting the following
To help you succeed in bringing Detroit Mountain back as a community resource,
SkiDUCK will commit to raising $10,000 of their the next 10 years to give financially
underprivileged children in the Detroit lakes and surrounding communities the
23
opportunity to learn to ski and snow board
As noted on their website, SkiDUCK is a non-profit organization dedicated to “enriching
the lives of disabled and underprivileged children by sharing the joys of skiing and
24
snowboarding”
23
24
Lunde, C. Offer of support for Detroit Mountain – SkiDUCK. Facebook posting. 25 Feb 2010.
Lunde, C. Home page. (n.d). SkiDUCK retrieved 3 May 2010 from www.SkiDUCK.org.
35
7.0 Appendix A - Detroit Mountain Focus Group Summary
th
The focus group was held April 8 at the Detroit Lakes Campus of the Minnesota State
Technical and Community College to assist in the completion of the Development
Concept section of the Detroit Mountain Recreation Area Feasibility Study. The event
was promoted for one week prior through radio, newsprint, and the internet via
facebook.com. Approximately 30 area residents participated.
Four groups of eight participants were formed and asked to complete an outline that
directed the groups to list potential activities, user months, facility requirements, visitor
usage, staffing needs, environmental impact, educational opportunities, fee structure, and
concerns and benefits. A space for identifying supporting user groups and organizations
and additional comments was also provided. Participants were given 45 minutes to
complete the outline.
All suggested uses and activities will be evaluated for their compatibility with the
mission statement, the overall site location, environment, and other uses. Similar uses or
activities available within a 25 mile radius will be reviewed for competition as well as
support.
Completion of the focus group will determine a cost/benefit analysis of each proposed
use or activity that meets the above requirements.
Data Collection

57 different uses and activities were identified.

10 of those uses were identified as four season, 36 uses were identified as three
season, 7 were identified as winter only, 3 as summer only, and 1 spring only.

22 uses and activities would require paid staffing and another 12 would provide
volunteer opportunities.

38 activities support the goal of providing healthy fitness activity or educational
opportunities.

11 activities or uses have potential for creating an annual event or attraction for
the area.
Survey Comments

Local academic institutions could be involved in the education process,
specifically in the sciences and recreational development. Students help with
design and layout.

Scout organizations participate in service projects.

Condo/timeshare with access to facilities. Rental cabins similar to Andes Tower
Hills.

Chalet used for visitor/nature center, weddings, reunions, business retreats.
36
Detroit Mountain Focus Group Results
Activity
User Months
1=Spring
2=Summer
3=Fall
4=Winter
Maple Syrup
1
Amphitheater
2
Water Park
2
Water Slide
Paid/
Volunteer
Staffing
Volunteer
Fee
Required
Concerns
NO
Benefits
Annual
Festival
Event for
Fee
Instruction
X
Instruction
X
YES
Cost
Paid
YES
Cost
2
Paid
YES
Cost/Liability
Outdoor Ice Rink
4
Paid
NO
Ski Jumping
4
Paid
YES
Cost
Fitness
Snowboarding
4
Paid
YES
Cost/Liability
Fitness
Snowmobile Trailhead
4
Paid
NO
Parking Space
Snowshoeing
4
Paid
NO
Tubing
4
Paid
YES
X-Country Skiing
4
Paid
NO
Fitness
Adventure Games
1, 2, 3
Paid/Volunteer
YES
Fitness
Alpine Slide
1, 2, 3
Paid
YES
Cost
Archery
1, 2, 3
Volunteer
NO
Liability
ATV Trailhead
1, 2, 3
Volunteer
NO
Parking space
Ball Rolling
1, 2, 3
Paid
YES
Liability
Basketball Courts
1, 2, 3
NO
Birding
1, 2, 3
NO
BMX
1, 2, 3
Volunteer
YES
Driving Range
1, 2, 3
Paid
YES
Frisbee Golf
1, 2, 3
NO
Fitness
Geocaching
1, 2, 3
NO
Education
Hiking
1, 2, 3
Horseback Trailhead
1, 2, 3
Horshoes
1, 2, 3
Interpretive Trail/Center1, 2, 3
Fitness
Fitness
Impact on Site
Volunteer
NO
Instruction
X
Education
X
Fitness
Fitness
NO
Fitness
NO
Education
NO
Fitness
1, 2, 3
Mini Golf
1, 2, 3
Paid
YES
Available Space
Moto-Cross
1, 2, 3
Paid
YES
Impact/Noise
Mtn. Biking
1, 2, 3
NO*
Fitness
Orienteering
1, 2, 3
NO
Fitness
Paint Ball
1, 2, 3
Picnicking
1, 2, 3
NO
Playground
1, 2, 3
NO
Fitness
Pow-Wow
1, 2, 3
NO
Education
YES
X
Parking Space
Kite Flying
Paid
X
Available SpaceInstruction
NO
Volunteer
X
Impact
X
Fitness
X
37
Detroit Mountain Focus Group Results
Activity
User Months
1=Spring
2=Summer
3=Fall
4=Winter
Paid/
Volunteer
Staffing
Fee
Required
Concerns
Impact
Benefits
Primitive Horse Camping
1, 2, 3
YES
Pump Track (Mtn.Bike)
1, 2, 3
NO
RC Cars
1, 2, 3
NO
Rock Climbing
1, 2, 3
YES
Cost
Fitness
Roller Skiing
1, 2, 3
NO
Impact/Cost
Fitness
Ropes Course
1, 2, 3
YES
Cost
Education
Sandboarding
1, 2, 3
Shooting Range
1, 2, 3
Trail Running
1, 2, 3
NO
Fitness
VolleyBall
1, 2, 3
NO
Fitness
Paid
Volunteer
Impact
Fitness
NO
Liability
Instruction
YES*
Zip line/Slack line
YES
Dog Park
1, 2, 3
1, 2, 3, 4
Fitness
YES
X-treme Roller Bladding/Mtn.
1, Boarding
2, 3
Liability
Fitness
Cost
Instruction
Volunteer
NO
Internet Café/Web Cam1, 2, 3, 4
Paid
NO
Meeting Space
Paid
YES
Volunteer
NO
Education
NO*
Education
1, 2, 3, 4
Natural Habitat Area/Preserve
1, 2, 3, 4
Observation Deck/Look Out
1, Tower
2, 3, 4
Observatory
1, 2, 3, 4
Primitive Camping
1, 2, 3, 4
Volunteer
Rental Shop
1, 2, 3, 4
Paid
YES
Restaurant/Dining
1, 2, 3, 4
Paid
YES
Sport Bubble
1, 2, 3, 4
Paid
YES
Annual
Festival
Event for
Fee
YES
YES
X
X
Education
Impact
Education
Cost
Fitness
*Fee if Chairlift Used
38
8.0 Appendix B – Nordic Ski
39
40
9.0 Appendix C – National Ski Areas Association
Annual Report summaries conducted by the NSAA. Full reports are available for a fee
25
on the NSAA website .
End of Season Survey tracking skier visit totals, distribution of skier visits by several
key segments (day/overnight, skier/snowboarder, adults/kids, etc.) days of operation,
snowfall, number of lifts, capital spending, lessons taught, lift tickets sold, and other key
operational metrics (information collected by region,







National visits down, impacted by weather. The 2006/07 saw a 6.5 % decline in
total visits compared to the five previous years. Abnormally warm temperatures
and below average snowfall impacted most areas.
Results varied in regions (regions are: pacific west, Rocky Mountains, midwest,
southeast, northeast). All regions except Rocky Mountains performed below its
ten-year average, including slightly in the Midwest (down 0.2 percent)
Operating days decline; delayed openings
and midseason closures common.
Average days open this season declined from 126 to 119 days, and every region
of the country reported shortened seasons
Peak day visitation soars. The ratio of peak day visits to average day visits, a
measure of the magnitude of peak-day visitation, increased nationally this season,
from 20 to 28 percent higher than the prior three-seasons.
Season pass usage and season pass sales grow (Midwest up 6 %).
Ticket yields and ticket yield ratios strengthen. The national average ticket yield
ratio(the ratio of average ticket revenue per skier visit to lead ticket price) rose to
54.1 percent this season from 52.6 percent in 2005/06 (Midwest, up 1.1 %).
Ski industry shows resilience, Despite down season. The 55.1 million visits
represent what would have been record years in 1990s.
25
41
National Demographic Study to track demographic characteristics of skiers and
snowboarders of the snow riding population for marketing and other purposes.
Key Highlights








Age of visitor base. Notes strong growth in the 45-65 and 65+
segments, Declines in younger populations which remains important to long term
health of industry.
Snowboarding participation, slight decline.
Related to the aging of the skier base, the proportion of visitors living in family or
empty nester households continues to trend up, while the proportion of singles
trends down.
Ability levels and years of experience in snowsports continue to trend up.
Season pass usage continues to rise, likely contributing to increased days of
participation and increased ability levels.
Average annual days of participation in total continued to trend up.
Loyalty to individual resorts (as measured by the share of total season visits taken
at a single resort) has continued to increase.
Helmet usage continues to grow.
Use of rental equipment continues to decline, partly as a result of increased ability
levels.
42

Detroit Mountain Recreation Area 2010 Feasibility Study Conducted

Transcription

Similar documents

Print and Share PDF Flyer

Lech and Zurs - Arlberg Ski Centre

Roy Parker - New Mexico Ski Hall of Fame

Our luxurious 5 bedroom townhome has magnificent mountain

Fred Olsen Brochure

Ski Club - Lake Michigan Catholic Schools

PDF - Blandford Ski Area

alpine skiing snowboarding xc skiing snowshoeing

2011 APBA Detroit Gold Cup Races

Stadl - Salzburg Region Resort Information Easy Access to Salzburg