Investors wanted: bring your millions and civic duty to Gunstock

Private-public partnership requires patient partner

There is money to be made for the right partner for Gunstock. However, the right partner can't be too concerned with making big money.

In the "request for information" that Gunstock Mountain Resort plans to publish soon in local and statewide newspapers as well as ski industry publications, Gunstock General Manager Greg Goddard makes it clear that any potential private-sector partners will have to maneuver through a bevy of priorities, and profit-making isn't on the list.

The request for information document is intended to invite private equity or real estate holding firms to send in suggestions as to how they might be able to partner with Gunstock to add amenities in keeping with the stated goal of transforming the ski mountain into a four-season destination resort.

"The declared purpose of the Gunstock Area Commission is to operate, maintain, develop, improve and promote Gunstock Mountain Resort for recreational purposes, and to further the public interest thereby," reads the request. Throughout the request, the interests of the general public and county residents are mentioned, as is maintaining a good relationship with the county government and protecting the scenic and historic characteristics of the property. It almost sounds as if it was written in a way to deter a potential partners who would be interested in achieving the largest and fastest return on their investment.

"It's going to be a fairly complicated process," said Goddard in an interview yesterday. Because Gunstock is owned by the citizens of Belknap County, and has received federal and state grants, any project proposals would have to be approved by several layers of approval processes, including passing muster with the people of the county.

So, who would be willing to take on such a complex project, while accepting a lesser profit for all the trouble? Goddard said, "It would have to be someone who is interested in the recreation industry and recognizes the uniqueness of this property, and someone for whom making the biggest profit isn't the most important factor."

This certainly isn't the first time that private dollars have been invested in a public project, but given the unique ownership structure of Gunstock — administered by Goddard, with the five members of the Gunstock Commission providing fiscal management, and bottom-line oversight by the Belknap County Convention — Goddard said he couldn't think of another example to use as an organizational model. "We're really kind of plowing our own road in more ways than one."

That being said, he's not concerned that Gunstock won't find a partner for the dance.

Part of his assuredness is because of Peter Knight, president of Connecticut River Valley Holdings. Knight said his company specializes in real estate holdings and public-private partnerships. In such cases, he acknowledges that "your life is ultimately easier" when choosing a less complicated, more straightforward investment. But not everything can be measured in dollars. "The impact that you're able to have in concert with the community is significant. Is this the highest profit scenario? No, almost never," Knight said. When asked why he would get involved anyway, he said it would be "tremendously interesting and gratifying." It's not all altruism, though. "There will be some economic gain. We wouldn't step into a partnership to lose money."

Knight, who has experience in the skiing industry, said he has a vision for Gunstock that is greater than what is currently on the mountain. He declined to say exactly what he would propose, saying he would wait to see what the public and other local parties suggest would be a benefit to the greater community.

What would a private partnership with Gunstock look like? Goddard said he's not exactly sure what would be the best arrangement, but he's sure that a "synergy" could be created to benefit both the ski mountain and new business ventures.

For example — and this is just hypothetical — if a private firm approached Gunstock with the concept of a grand resort hotel and conference center, Gunstock could draw up a long-term site lease that would allow the private partner to build and operate the hotel, paying Gunstock annually for the use of the land. Because Gunstock already employs people to plow snow in the winter and maintain the grounds in the warmer months, then the arrangement could be written so that Gunstock's employees provide those services for the hotel's grounds, too.

Having a hotel on the grounds would not only be a boon in terms of the yearly lease payments, the guests would also be likely to buy lift tickets, rent equipment, and buy food at the ski mountain.

In an effort to increase activity year-round, one of the amenities Goddard has suggested is a golf course. Gunstock's grounds crew could assist with maintaining the greens and fairways, and the general manager said many ski pros work as golf pros during the summer.

These are simply examples of how such a relationship might work, he was careful to emphasize. In any partnership, Goddard said the first step would be a market study to see what amenity would be most successful for both parties and palatable for the community.

This will be the eleventh year for Goddard as Gunstock's general manager. He spend about as much time as the director of finance and administration for the mountain resort prior to that. He still lives in the Gilford house he grew up in, just a short distance from the mountain. For Goddard and the Gunstock Commissioners, proposing this change will undoubtedly bring about more headaches. "We would like to keep doing what we're doing, we just don't see a long-term viability in it anymore."

In a good year, Gunstock will see gross operating revenues of about $7.5–million. In recent years, due to poor skiing weather, the annual gross revenues have been about $6.5-million, the level at which Goddard said the resort is "treading water."

One of the difficulties for Gunstock is that is currently seen by most as a one-day destination. Visitors can decide on the very day of their visit if they'll go, depending on the weather. Compare that to destinations further away, or ones that require lodging with deposits, which guests plan weeks or months ahead of time. For those destination resorts, their guests still show up even if the weather is poor.

In an average winter, Gunstock sees about 170,000 skiers and about 20,000 tubers — tube riders that is, not potatoes. Another 25,000 will come to the resort, but won't take to the slopes or tube hill.

With development of RV camping sites and summer events like Ribfest, SoulFest, Oktoberfest and the Timberman triathlon's Timberfest, summer visitors are up to 80,000 per year. However, for a resort in an area known for warm weather recreation, Goddard would like to see more people at Gunstock whether it's cold outside or not.