Red Mountain Resort is gauging public interest in community ownership.
Why is the resort doing this? It sounds like Red needs some capital for on-hill improvements and is offering the public the opportunity to buy in. It worked for Shames in Terrace, BC a few years back with its My Mountain Co-op initiative, where the public rescued their beloved ski hill from disappearing. Can it work for Red?
To find out more, read below and visit http://www.redresort.com/
From Red Mountain:
RED Mountain, the oldest ski resort in Western Canada, is dropping into the history books this week. The fierce, independent mountain that is the first stop on B.C.’s famous Powder Highway is bucking the trend of MegaResort mergers and acquisitions and taking its next capital campaign to the people via the internet.
Yep, for the first time ever, skiers and snowboarders can actually be an owner of a worldclass resort through equity crowdfunding without needing either a high net worth or a deadly credit rating. RED is calling this campaign “Fight the Man. Own the Mountain.”
That’s right – OWN: The mountain, the chairlifts, the lodge, snow making – every asset of what we have. (Think of it as “Shred Equity”…) “RED started as a ski club that was owned by the community,” explains RED CEO Howard Katkov. “You can feel it in the spirit of the place, the camaraderie, the spark. We have done everything in our power these last 12 years to keep that flame alive and this StartEngine.com campaign is simply the latest expression of our intent to keep RED independent and thriving.
Our shared community values and the current consolidation of the resort industry make NOW the perfect time to help save this ‘endangered species’. We’re ‘ReBooting’ the Red Mountain Ski Club Community Ownership Model from 1947—only this time the clubhouse will have wireless!”
RED is coming off its Best Fiscal Year Ever with deep snow and sales up across all major categories. The last few years have seen the resort truly enter the big leagues by opening Grey Mountain (~1,000 acres new terrain!), launching the four-season Get Lost Adventure Centre, and the Legacy Training Centre to underscore RED’s reputation for breeding ski racers who make mercury look like molasses. This newest campaign is aimed to continue this momentum, keeping this grand adventure real and sustainable for years to come.
All monies raised for this campaign will go toward improving the adventure here at RED – plans will include remodeling the Paradise lodge; additional run development for expanded cat skiing on Mount Kirkup; building a new restaurant, clubhouse, and overnight on mountain cabins at the top of Grey Mountain; and the extension of the Silverlode chair to allow access to both Granite Mountain and Grey Mountain. For spring and summer activities, we’ll be building a multi use trail for hiking and mountain biking from the base area to the top of Grey Mountain connecting to the Seven Summits trail system. Your Investment will also support the creation of an annual local academic Scholarship fund for higher education
Shredders currently face a resort landscape with a very different topography from even a decade ago. Many independents have lost their original tourism base to larger destinations sharing points, perks and/or ownership with one another and are struggling to survive. Every month sees deeper consolidation. It’s turned into a game of RISK as big players snap up struggling urban hills and far-flung destination resorts in an attempt to dominate the slippery parts of the globe. To cite just one glaring example, Vail Resorts has lassoed Park City, UT, Perisher, AUS!, and tiny Wilmot Mountain, WI in the last couple of years — and now this month Whistler, BC! — and shows no sign of calling it quits.
Luxury shopping malls at the base. Water parks. Covered escalators to the lift line. @*&#!*% cappuccino concierges?! All of this ‘growth’ is funded by skiers—whether they want it or not – pricing out many regular ski families and the local mountain communities themselves (ironic, huh). RED is keen to turn this corporate tide before it’s too late.
“RED is an endangered species within the resort world,” says Katkov. “We have the snowfall vert and world-class terrain to go boot-to-boot with the Big Guys, but have consciously maintained our mom ’n’ pop/weird uncle feel for over 100 years. Think of this as a family investment. We do.”
Round 1, which goes live August 23rd, is deemed “Test the Waters,” and parties can express interest in the investment without handing over any actual loot now or later. (Imagine a hyper-convoluted “Like” Button that is 100% risk-free. Put down $1,000 or $10,000 – no commitments.) If When Test the Waters gains sufficient interest, RED will file an offering statement with the SEC in the United States and prepare a Canadian offering memorandum to launch with real dollars, actual equity, and unique perks sure to appeal to ski and snowboard enthusiasts especially.
“We’re gonna be the Green Bay Packers of the ski world!” jokes Katkov. “And, just like The Pack or Bernie Sanders or whichever underdog inspires you, we’re really looking to our hardcore fans to throw down here – we’re talking ownership after all. We’ll happily take the big bucks—bring it!—but we have intentionally set our minimum at a very low $1,000 to entice hardcore skiers and snowboarders who might not have a High Net Worth—even if some of them have the ‘high’ part on lockdown…”
“We aren’t just keeping it real for us,” he adds. “We’re keeping it real for everyone. This is serious. That’s why we call ourselves a Keystone Species. We believe that keeping a place like RED thriving betters the sport for everyone in a time where families that love this mountain lifestyle are feeling disrespected and dejected. Skiing and snowboarding should never become elite sports. So we hope you’ll join us—in any way you can—to ‘Fight the Man. Own the Mountain.’”
Proposed Investor Benefits:
Part ownership of the entire resort and assets
Limited edition custom skis
Access to overnight cabins atop Grey Mountain
Supports an annual fund for local education
More to be announced…