I certainly see where you figure there is something missing.
And I am not shocked there is some kind of paper trail with taxes. I can't say I would have known where in the VT state documents to go for the info. saminfo.com is a site I check periodically to catch interesting tidbits, but an article from 2006 is before my interests had grown enough to pay attention to something like that.
I would suggest three possible, and I think very reasonable answers to the money potentially coming off the books.
#1 Powdr is taking the expected cut for a corporate parent company that has very little income outside of its subsidiaries. Alphabet isn't making money, it is Google bringing home the bacon in that model. So the question is how much do the offices and management at Powdr take from every resort for the company president to have a fat paycheck and cover all those other expenses.
#2 If Killington does not see certain infrastructure spending as critical at the moment, the best use of the money would be to be paying down the mortgage with extra principle payments. That would make you more secure in future lean years, and pad the profit margin so you can pay for major improvements just on that years cash flow alone. But the money also does not build a war chest.
#3 Lodge improvement are crazy expensive, and a debt free option would be to build a war chest and then pay the thing off.
I have only been skiing Killington regularly since I moved to the area, so that only covers the last three ski seasons. In that time they have build the Peak Lodge, did a major snowmaking upgrade, and build most of the new summer stuff at Snowshed. I suspect the Peak Lodge was in the $10-15m range easily, with Stratton spending $9 to add another floor to their base. In three years there have been three major investments. It seems the pattern is likely to be that come next year we will see another investment. I think the key optic this year is that the investment was in summer activities rather than a skiing element. But timing, cash flow, and ROI probably made expanding the summer offering a smart move.
Mt Snow, Stratton, Okemo, Stowe, even Sugarbush with the new Valley House are certainly putting pressure on Killington to do something. Let's give it another year, and see what happens.