|By ALAN WECHSLER, Staff writer
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First published: Sunday, March 29, 2009
LONDONDERRY, Vt. — It may take more than Magic to save Magic Mountain.
..... Three years ago, Sullivan, 44, a former ski racer and Connecticut lawyer, decided to get involved. With two silent partners, they leased the property and invested $850,000 in the resort. The original plan was to buy the resort, but in today's market the idea didn't seem feasible.
Instead they came up with the co-op idea.plan," he added.
I'm hopefull Magic survives, I remember skiing there as a child in the 60's. It was a premier area then, known for the impressive mile long chairlift. I'm also part of the problem in that I haven't skied there since '97. I settled farther north for bigger snowfalls.
Sullivan doesn't state in this letter what the purchase price would be, and that is the real crux of the matter. It's likely the major reason he and his investors elected to lease instead of purchase initially.
Magic is so far behind the other ski areas that it will take decades to "catch up", and likely if sucessful it will catch up by finding and serving a different niche. The purchase price needs to reflect this, and be sufficiantly low to allow capital investment out of annual revenues and still be able to weather lean years. If the owner is not willing to sell at such a price, the investors should walk. Good intentions aren't going to pay a mortgage that is too high.