Gunstock leaders suggest study on privatization

GILFORD — The commission that runs Gunstock Resort has offered to form a study committee examining whether it makes more sense for a private operator to manage the ski area.

Gunstock Area Commissioner Stephan Nix announced the offer at the County Delegation meeting on Wednesday before the delegation voted, 14-2, to authorize the resort to borrow $600,000 in anticipation of revenue to come during the ski season.

The delegation took no immediate action on the idea of studying private operation. The county owns the ski area. Some delegation members, including Rep. Norm Silber, have said a private operator could run it more efficiently and at a greater benefit to taxpayers.  

Reading from a commission resolution, Nix said, “The study should include but not be limited to whether privatization is beneficial, financially viable and legally possible.”

He said it has been a decade since the issue was studied.

“There have been economic changes, political changes and environmental changes regarding running a ski area,” he said.

Silber, who along with Rep. Ray Howard Jr., voted against the revenue anticipation note, said that under enabling legislation for Gunstock, the area pays just $6,585 in property tax. If the tax were based on the area’s overall assessed value, that total would be $246,813.

The full property tax payment could be realized if a private operator were brought in, Silber said.  

In an interview Thursday, he said he voted against the interim loan because he questions whether it was truly needed.

“Every year, it’s dark consequences if you don’t agree to more borrowing,” he said.

He’s convinced the ski area could be better run by “business people instead of government bureaucrats.

“What are the proper government functions – public safety, police and fire protection, then roads and then schools, and there is a lot of debate about that,” he said.

“Where on the list of proper government functions do you see running a ski resort that charges a lot of money?”

Revenue anticipation notes have been routinely approved in past years, but the loan authorization failed to get the required two-thirds support at a delegation meeting in June.

Nix said weather alternating between scorchingly hot and rainy over the summer reduced off-season revenues and made it necessary to again request the loan. The money is needed for repairs and maintenance as well as getting the resort ready for the winter season.  

Gunstock General Manager Greg Goddard said the money was badly needed. Current cash on hand is about $100,000.

“We’re basically in a hand-to-mouth situation right now,” he said.

Several people in a packed crowd at the County Delegation meeting said denial of the revenue anticipation in June was short-sighted and spoke of the importance of maintaining the ski area.   

Diane Hanley of Gilford said the ski area must be properly maintained.

“For those who want to privatize it, how you going to sell it if you allow it to go down the dumper?” she asked.

Heidi Pruess, a downhill skier who competed in the 1980 Winter Olympics, said Gunstock was important in her success.

“If we lose this resource over something this silly — it’s just ridiculous,” she said.