Click to enlarge: Ski Brule, Indianhead, Pine Mountain (2)
Pine Mountain Resort/TimberStone Golf Course, Michigan (2006, 2003, 1998, 1996, 1992)
The Pine Mountain Resort is a regional, weekend resort located in Iron Mountain, Michigan. We have performed five assignments relating to this Upper Peninsula Michigan ski area. The first, in 1992, was an appraisal of leased land for the land owner; the second, in 1996, was an appraisal of the insurable value of the buildings; the third, in 1998 was an appraisal of the entire resort including the partially-completed TimberStone golf course; the fourth, in 2003, was an appraisal of the operating resort without the golf course and the fifth, in 2006 was an appraisal of the operating resort including the TimberStone golf course. The resort, which dates from the 1940s has an updated, 35-room lodge with conference center and a restaurant and indoor pool constructed in the late 1990s. Six condominium units are also owned by the resort and six one-and-two-bedroom suites were newly built in 2006. The TimberStone golf course is an award-winning course that in 2004 was one of 12 courses in the country to receive a five-star rating from Golf Digest magazine.
Indianhead Mountain Resort (2006)
Indianhead is a regional destination resort on a 440-acre site that includes a 44-room lodge, restaurants, fitness center, daylodge, five chairlifts, four surface lifts and 118 acres of ski trails. With one of the highest verticals in the Midwest, Indianhead had long been a leader in the region. Years of neglect in the 1980s and 1990s left the resort in bankruptcy. In 2000 the resort sold at a bankruptcy auction to new owners who were trying to revitalize the resort. Our appraisal was done for ownership restructuring and involved a detailed analysis of the various operating departments and identification of those areas that needed additional management attention or new investment.
Ski Brule, Michigan (2002)
Ski Brule is a weekend ski area in Michigan’s Upper Peninsula. Much of land on which the resort operates is leased from a private land owner. The resort operator was interested in purchasing the site from the land owner, who was willing to sell. Closser Associates was jointly retained by both parties to estimate the value of the landlord’s interest (leased-fee estate). The long-term lease was based on a percentage of gross sales from lift tickets. The assignment involved an estimate of the current market value of the land, as if vacant, and an estimate of the future market value of the land at the end of the lease term. We also made a projection of rent payments over the remaining term of the lease and developed an appropriate discount rate. We then discounted the projected lease payments and the future value of the land to a present value estimate.
Big Powderhorn Lodging Association, Michigan (2000)
The Big Powderhorn Lodging Association manages the rental pool of privately-owned residences and condominiums at Big Powderhorn Resort in Bessemer, Michigan. A number of the property owners representing more than 60 living units were appealing their property taxes. The basis for the appeal was a situation in which a number of wells were inadequate in terms of flow or water quality and the Township had failed to pass a special assessment to provide public water. The resulting public dispute and publicity had reduced property values. Closser Associates performed a preliminary sales study and consulted with the Association. We then sub-contracted with a residential appraisal firm to prepare the unit appraisals, we reviewed the appraisals and prepared our own appraisals of several multi-unit properties. We also analyzed the cost to cure of replacement wells.
Click to enlarge: Mount Bohemia (2), Boyne Mountain (2)
Mt. Bohemia, Michigan (2008, 2003, 2000)
Mt. Bohemia was a proposed ski resort located at Lac LaBelle on Upper Michigan’s Keweenaw Peninsula when we first appraised it. It offers the highest vertical drop in the Midwest at 835 feet, the most natural snowfall at 278 inches and significant amounts of advanced and expert terrain. Its disadvantage is its location which is slightly further from major Wisconsin and Illinois population centers than the ski areas near Ironwood, Michigan. No new ski resort has been developed in Michigan since 1977, so this assignment called for a detailed market analysis and feasibility study. As part of these studies, interviews were conducted with managers of all Upper Peninsula ski areas with particular attention being paid to the number and sources of skiers. Through this process we were able to develop a detailed picture of the number of skiers at UP ski areas, where they come from and where they ski. Based on this and other information we were able to make well-supported projections of skier visits, income and expenses for the proposed Mt. Bohemia.
In 2003 we prepared an appraisal of Mt. Bohemia for a property tax appeal. The appeal was successful and the tax assessment on the property was reduced significantly.
The 2008 appraisal also included a separate land valuation.
Mountain Grand Lodge and Avalanche Bay Waterpark, Boyne Mountain, Mich. (2004, 2003)
The Mountain Grand Lodge is a proposed 143-unit, 218-room, luxury condominium hotel at Boyne Mountain, Michigan. In 2003, the appraisal was prepared for a lender who was providing construction financing for the project. The building was partially constructed but construction had been halted for more than a year. A number of units had been presold. During the interim, plans for the project were changed to include a 57,000-square-foot indoor waterpark to be attached to the hotel. Although our appraisal of the Lodge did not include the waterpark, the market analysis for the hotel had to consider the effect of the waterpark on the hotel operation. As a result, the appraisal included an extensive study of indoor waterparks and their effect on attached hotels. The appraisal also included an analysis of the price and absorption rate of the unsold condominium units and an analysis of the operating hotel.
In 2004 we prepared and appraisal of the Avalanche Bay indoor waterpark for another lender. Avalanche Bay is the fourth-largest indoor waterpark in the United States and the first to be built at a ski area. This appraisal built on our original market analysis and included extensive research on other, large indoor waterparks. The assignment involved onsite inspections of waterparks in the Wisconsin Dells, Green Bay, Wisconsin and Traverse City, Michigan. Both a cost and income analysis were developed.
Norway Mountain, Michigan (2005, 2003, 2001)
Norway Mountain is a day ski area in the Upper Peninsula of Michigan, close to the Wisconsin border. Norway Mountain was purchased following a troubled history and was turned around by the new management. Expansions of both lifts and terrain together with re-contouring of existing terrain coupled with enhanced management of food and beverage, ski school and rental departments have turned Norway Mountain into a solid, growing operation. In 2005 we performed a market analysis of a proposed residential subdivision that included research and analysis of competitive existing and proposed subdivisions. Conclusions included recommendations for lot sizing and pricing as well as a forecast of market absorption of the proposed lots. Our assignment in 2003 was to perform a financial analysis of the area and also to provide consulting services to the ski-area management. The 2001 assignment was similar and also included a projection of future skier visits, income and expenses and provided a range of value.
Swiss Valley, Michigan (1999)
The owner of Swiss Valley was contemplating sale of this small ski area which he had single-handedly built into a successful operation. Closser Associates was retained on a limited consulting basis to inspect the ski area and advise regarding strengths, weaknesses and sale potential.
Click to enlarge: Suicide Bowl, Timberlee, Cannonsburg
Suicide Bowl Ski Jumps, Michigan (2000)
Relocation of the historic Suicide Bowl ski jumps in Ishpeming, Michigan was necessitated by increased mining activities on the part of the land owner. Closser Associates was retained to estimate the market value of the ski jumps and building structures. These included a K-90-meter, K-60-meter and several smaller jumps as well as a warming building and judges’ stand. The assignment included an inspection of the facility and consultation with a ski-jump designer. The structures were valued based on the cost approach. This analysis included research into construction costs of various ski jumps recently constructed in the U.S. as well as an analysis of useful life. This was based on the history of technological change in ski jumping, and the resultant obsolescence of ski jumps. The analysis of useful life led to the estimate of depreciation.
Briar Mountain and Timberlee, Michigan (1983, 1979)
These two ski areas were both day areas. Both were having financial difficulties at the time of their appraisals. Briar Mountain is now called Norway Mountain, and Timberlee is no longer operating. In both cases, the analysis of income and the projection of skier visits was critical. Timberlee was complicated somewhat in that it also had summer operations including go-carts, bumper boats and an alpine slide. Briar Mtn. had difficulty with terrain balance and needed some re-contouring in order to provide sufficient low intermediate terrain. Although relatively small ski areas, both presented challenging appraisal problems.
Big Powderhorn, Michigan (2008)
Big Powderhorn Mountain is a weekend ski area located near Ironwood in the western part of Michigan's Upper Peninsula. The ski area has been successful but, in order to remain competitive with Midwestern ski areas, new investment was needed—a financial commitment that the owners were not willing to make. Powderhorn has limited on-site lodging but is supported by an extensive development of off-site rental housing. We were approached by a potential buyer of the ski area who wanted their identity kept secret and needed an intermediary. Closser Associates took on this role, acting as a consultant, meeting with management of the ski area and preparing an analysis of the ski area financial information, which lead to a recommendation of an offering price. At that point, we became a buyer broker and presented a purchase offer, which became the basis for purchase negotiation.
Cannonsburg Ski Area , Michigan (2009)
Cannonsburg is a day ski area just outside Grand Rapids, Michigan. It benefits from a very convenient location on the edge of an urban area. The ski area was developed from the early 1960s through the mid 1970s. Closser Associates was retained to appraise Cannonsburg as part of a larger assignment involving numerous properties owned by the family. The valuation was based primarily on a thorough analysis of the income and expenses of the operation.
102 W. Washington St. Suite 224 
Marquette, Michigan 49855 (906)228-9133 bclosser@closserassociates.com