The battle for Colorado skiers and snowboarders may be headed to court because of a dispute between industry giants Intrawest and Vail Resorts. Intrawest Corp. and the city of Denver on Thursday announced details of a deal that will bring $50 million in on-mountain improvements in the next 10 years to the city-owned Winter Park resort.

Violation of noncompetition agreement
Vail issued a statement challenging the deal, saying it may violate a noncompetition agreement it has with Intrawest as a condition of Intrawest's $400 million residential development at Keystone, owned by Vail Resorts. That agreement prevents Intrawest from developing real estate at nearby Colorado ski resorts it does not own.

Vail maintains the Winter Park deal breaches the agreement. Intrawest argues it will have a controlling interest in Winter Park, so the deal is permitted. "If we felt we were breaking our contract with Vail we wouldn't be in this transaction,'' said Gary Raymond, president of development for Vancouver, British Columbia-based Intrawest. He said the contract requires that Intrawest have a controlling interest in any resort where it plans to develop real estate.

Who pays the bills?
Raymond said Intrawest has controlling interest of Winter Park because it will be running the resort, paying its bills and taking all the risks. The city of Denver remains the owner. Porter Wharton III, Vail's senior vice president of public affairs, said "If Intrawest has indeed violated its contractual obligations, then we will be left with no choice other than to protect our company's interests by commencing litigation in the very near term,'' he said.

Resorts are BIG business
Denver contracted with Intrawest to take over Winter Park because the resort has struggled to compete with Vail and other areas that invest in high-speed lifts, equipment, snowmaking and amenities. Intrawest will operate the resort through to 2078. It paid the city $5 million last year and will pay $2 million annually for the next nine years. After that, Intrawest will pay $2 million annually plus 3 percent of gross revenue over $33 million.

Vail owns four resorts in Colorado and one in California. Intrawest owns Copper Mountain in Colorado and owns or has a controlling interest in more than half a dozen others in North America. Raymond said Winter Park would retain its family atmosphere.

[Source: Associated Press]


Previous related stories on Natives:

Vail voted best resort in North America
Vail buys Heavenly
New Terrain park for Winter Park
Intrawest links with BC
Intrawest buys into Les Arc 1950
Vail foils manhole cover thieves

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