Business leaders fear power struggle could disrupt Gunstock

Some business and community leaders fear a squabble between local state representatives and the commission in charge of county-owned Gunstock Mountain Resort could disrupt ski area operations just as the winter season approaches.

The Belknap County Legislative Delegation is expected to consider on Tuesday whether some members of the Gunstock Area Commission should be removed from office in a dispute that comes after a record-setting financially successful year at the mountain.

Gretchen Gandini, who chairs the Gilford School Board and grew up skiing at Gunstock, said the potential removal and replacement of commissioners Brian Gallagher, Gary Kiedaisch and Rusty McLear seems odd.

“An abrupt change in leadership will likely result in good, long-term staff -- as well as those considering seasonal employment -- taking their skills elsewhere,” she said.

“Why would someone want to work where those in charge were just removed by a delegation that has no experience managing a ski area?”

Rep. Mike Sylvia, the chairman of the all-Republican legislative delegation, sent a letter to the county representatives last week saying a meeting would be held Tuesday to consider actions of the commission that he said may have run afoul of state statutes.

Sylvia, who has not returned requests for comment, said in his letter that no public testimony would be allowed at the public meeting, just as no public testimony was allowed last month when the delegation also discussed Gunstock in a public meeting.

Sylvia expressed concerns about the way Commissioner Peter Ness was treated and questioned whether the commission was following open meeting laws.

Last month, four commissioners asked the delegation to remove Ness over allegations of insulting behavior toward resort employees and an alleged conflict of interest involving attempts to sell his software to the resort.

The delegation denied that removal request, 11-5. Now, Sylvia says it may be necessary to remove three of the commissioners who brought the request: Brian Gallagher, Gary Kiedaisch and Rusty McLear. The term of a fourth commissioner, Russ Dumais, has since expired and he has been replaced.

Karmen Gifford, president of the Lakes Region Chamber of Commerce, said the resort is a longtime community asset, a big driver of tourism and a major employer. She said political squabbling in its governance is something best avoided.

“It bothers me when I see a lack of meeting in the middle and a lack of respect in conversations,” she said.

Bill Cutillo, an owner of Path Resorts, which includes Steele Hill Resorts, Center Harbor Inn and Summit Resort, said that over the years, he has watched Gunstock’s finances rise and fall. Under the current commission and resort management, the ski area has been thriving, he said.

The commission also has major expansion plans, including a doubling of skier terrain, a hotel, a road to the top of the mountain and amenities at the summit.

“As of late, all of us, everybody, has been very thrilled about the potential of Gunstock getting on track to becoming a year round destination for the entire community. The Gunstock Commission has some of the most talented people ever on board.”

Kiedaisch directed the Sunday River Ski School in Bethel, Maine, was a vice-president at Waterville Valley Resort and was president and chief executive officer of the Stowe Mountain Resort in Vermont. He also had stints as chief executive officer at Bolle Sports Eyewear, Bauer Nike Hockey, The Coleman Company and the Igloo Products Corp.

McLear is a developer who changed the fortunes of Meredith and turned the town into a waterside tourist destination with hotels, restaurants and retail. He and Alex Ray built the Hooksett Welcome Centers.

Gunstock President and General Manager Tom Day began as a lift attendant at Waterville Valley Resort and worked his way up to general manager. He was later general manager of the welcome centers.

“These guys, their reputation speaks for itself, their career and performance speaks for itself,” Cutillo said. “They’ve put together quite a team and the performance of that property has been indicative of that, but they also recognize the property is at a crossroads and has to be run in a different manner than in the past. It has to be run like a sustainable business.”

Cutillo said he’s outraged by the idea that the delegation might seek to shake up the commission. Under Gunstock’s enabling legislation, the delegation appoints commissioners but is only supposed to remove them for “cause,” a term that’s open to interpretation.

Rep. Norm Silber finds fault with bonuses the commission approved for some Gunstock staff after the successful season. He says the resort’s tax exemption means the county is not receiving what it would receive in payments that would be made if a private operator were allowed to run it on a leased basis.

He has introduced legislation that would give the delegation control of Gunstock’s budget, which is now controlled by the commission.

“These guys are playing with fire and they are doing that with a political motivation,” Cutillo said. “If Gunstock gets screwed up, that has a massive negative effect on what happens with our business.”

He said the present leadership has presided over good financial performance, which he feels could turn negative if new leaders are brought in.

Gunstock officials said in a news release that last season had record-breaking sales, the most skier visits ever, the most night tickets sold, the most season tickets sold, the highest revenue to date and that the resort would send more than $220,000 to the county under a state law requiring it to remit 1.75 percent of its gross operating income.

Gus Benavides, a realtor and a member of the Gilford Select Board, said the resort is being run effectively. He and his family have ski passes and like to hike in the area in the summer. As a realtor, he said Gunstock and Lake Winnipesaukee are the two big draws for people looking to invest in real estate.

He declined to comment directly about the conflict between the delegation and the commission other than to stress the importance of allowing the public to comment.

“It’s always been my strongest goal as a selectman to provide every resident the opportunity to have their voice heard,” Benavides said. “We go out of our way to allow residents to speak on any issue before the board.”

While Sylvia has said no public testimony will be taken at the Tuesday meeting, those who wish to make comments may do so by emailing or calling delegates. Email addresses and phone numbers are at www.belknapcounty.org/county-delegation.