New England Hermitage Club, VT, in the news.

[CalG]

Anybody who has spent any time in the Deerfield Valley well knows that bankruptcy has been Haystack's history.

Anyone know if Mt. Snow ever got the water rights from the Haystack, and if they still have them ?

Yes, and Yes
Per legal agreement.

 

[LKLA]

Do you think people with money enough really care about that stuff (stats)?
It's only the bragging rights that are wanted.

People with money - serious money - know better than to brag about the Hermitage Club!

 

[x10003q]

Barnes is out of day to day ops and seems to be ready to sell to the members.
http://www.dvalnews.com/view/full_s...ge-interim-president?instance=secondary_story

 

[Erik Timmerman]

Here's the bankruptcy.

http://dvalnews.com/view/full_story...re-on-Hermitage-properties?instance=news_page

 

[Muleski]

Sadly, not a shocker. Perhaps the owners group can work this out. Assume they can, as no bank is going to want to own this thing, IMO.
They need a couple deep pocketed owners to spearhead this, I believe.

Too bad. But I assume this has been in the works for quite some time.

 

[x10003q]

Here's the bankruptcy.

http://dvalnews.com/view/full_story...re-on-Hermitage-properties?instance=news_page

From the article:
"According to the complaint, Barnes and the Hermitage failed to meet their obligation to make payments on three loans, including a $15 million "base lodge" note signed in December 2014, a $1 million bridge loan in June 2016, and a second bridge loan of $1.1 million made in July 2017. Of the total $17.1 million in loans, the Hermitage and Barnes still owe $16,342,175.61 in principal, along with $213,799.76 in interest, and $43,603.79 in late charges."

and for good measure:
"The action also lists as defendants, along with Barnes and the Hermitage, about 45 individuals, businesses, and government entities that have filed liens or writs of attachment against Hermitage Club properties totalling more than $9.7 million. The amount includes a $1.5 million writ filed by Reinhart Food Service, two $1 million writs filed by individuals for residential properties, and $1.2 million in liens filed by the Vermont Department of Taxes. According to Berkshire Bank's complaint, the 45 creditors' claims are "junior and inferor to that of (Berkshire Bank).""

The total is $26,299,580. Maybe the Majella Group can help out.

 

[LKLA]

From the article:
"According to the complaint, Barnes and the Hermitage failed to meet their obligation to make payments on three loans, including a $15 million "base lodge" note signed in December 2014, a $1 million bridge loan in June 2016, and a second bridge loan of $1.1 million made in July 2017. Of the total $17.1 million in loans, the Hermitage and Barnes still owe $16,342,175.61 in principal, along with $213,799.76 in interest, and $43,603.79 in late charges."

and for good measure:
"The action also lists as defendants, along with Barnes and the Hermitage, about 45 individuals, businesses, and government entities that have filed liens or writs of attachment against Hermitage Club properties totalling more than $9.7 million. The amount includes a $1.5 million writ filed by Reinhart Food Service, two $1 million writs filed by individuals for residential properties, and $1.2 million in liens filed by the Vermont Department of Taxes. According to Berkshire Bank's complaint, the 45 creditors' claims are "junior and inferor to that of (Berkshire Bank).""

The total is $26,299,580. Maybe the Majella Group can help out.

"Despite being touted as the leading developer in southeast Queensland, Australia, Majella has only completed one project in its homeland, the controversial Radius Apartments development in 2014. In the United States, the Majella Group redeveloped the Williston-West Church, which has twice had tax liens slapped on it by the City of Portland."

Seems like a perfect fit!

 

[CalG]

Layoffs are happening.
Kids are being pulled from local schools as families are adjusting.

Sad, Money for the local resident is one thing "The Valley" has too little of.

 

[newboots]

Burn the tradespeople, burn the towns on desperately-needed tax revenues, ask the owners for a few more thousand each. This story gets more painful by the day.

 

[Muleski]

Not good. Really sad. I feel for these people.
Not so much for the members and management. Have seen this act before. Too much BSing, too little real oversight and/or accountability.

Borrow it, see it, spend it.

 

[RJS]

I'm not sure if anyone has brought this up, but the Bachelor Winter Games were filmed at the Hermitage Club (don't ask how I know this ).

I'm curious if ABC paid the Hermitage Club to film there for a couple of weeks, or if they worked out a deal where ABC prominently displays the Hermitage Club sign/logo in its shots in exchange for not paying the club? In each episode there are multiple shots of the Hermitage Club sign. It's the perfect venue for filming a Bachelor franchise because the show wants to minimize the leaks that come with filming at a public location.

Not that it would have ultimately changed anything, but I imagine that Club would have preferred the show aired just after it was filmed in December (I think) vs. airing in February.

 

[LKLA]

I'm not sure if anyone has brought this up, but the Bachelor Winter Games were filmed at the Hermitage Club (don't ask how I know this ).

I'm curious if ABC paid the Hermitage Club to film there for a couple of weeks, or if they worked out a deal where ABC prominently displays the Hermitage Club sign/logo in its shots in exchange for not paying the club? In each episode there are multiple shots of the Hermitage Club sign. It's the perfect venue for filming a Bachelor franchise because the show wants to minimize the leaks that come with filming at a public location.

Not that it would have ultimately changed anything, but I imagine that Club would have preferred the show aired just after it was filmed in December (I think) vs. airing in February.

I am sure they did but that likely equated to a couple hundred thousand at most. I am familiar with similar deals and it would not move the needle or much Hermitage tackle the reality that they have in front of them (have had in front of them and will continue to do so).

 

[K2 Rat]

I'm not sure if anyone has brought this up, but the Bachelor Winter Games were filmed at the Hermitage Club (don't ask how I know this ).

I'm curious if ABC paid the Hermitage Club to film there for a couple of weeks, or if they worked out a deal where ABC prominently displays the Hermitage Club sign/logo in its shots in exchange for not paying the club? In each episode there are multiple shots of the Hermitage Club sign. It's the perfect venue for filming a Bachelor franchise because the show wants to minimize the leaks that come with filming at a public location.

Not that it would have ultimately changed anything, but I imagine that Club would have preferred the show aired just after it was filmed in December (I think) vs. airing in February.

It was a 200k site fee. The airing was all predetermined to be Feb to coincide with Olympics and Hermitage was well aware of this.

 

[newboots]

Down the tubes:

http://digital.vpr.net/post/tax-department-shuts-down-hermitage-ski-resort

 

[LKLA]

Down the tubes:

http://digital.vpr.net/post/tax-department-shuts-down-hermitage-ski-resort

As expected. The last thing most people want to do is pay a ridicules initiation fee plus $1,000 a month to join a ski club in southern Vermont. The last anyone wants to do is join such a club when it is is dire straights. The death spiral was clear starting about two years ago.

 

[newboots]

The death spiral was clear starting about two years ago.

Apparently, if they can get the money together for this particular debt, and they're trying, the state will let them open. But it's a drop in the bucket of all their unpaid obligations. I feel for the small contractors who worked on that place. Horrible, awful way to treat small businesses.

 

[James]

I had a student this weekend who normally skied Hermitage. A sign.

 

[newboots]

Actually closed.

 

[LegacyGT]

Saw that they were re-opened last weekend when they agreed to some sort of progress payment. But then they were shut down again Monday after they failed to do so. This indicates that things are really bad AND that they were willing to deceive the state officials. I understand the challenges and uncertainty of running a business. But when you say you're about to make a wire transfer and you don't, you're just lying. And you're lying to the state officials who are working with you and providing concessions to help you make it. If they're lying to those people, it's hard to imagine that they're not lying to members.

I never got the business model but I never wished them anything but luck. At this point it's time for them to close up shop. I'm not sure how the whole thing gets unraveled for people who own memberships and real estate. If you followed their membership and real estate offers over the years, it was clear that they were making things up as they went along. I can't imagine it will be clear exactly what each member actually owns or is entitled to.

 

[newboots]

Saw that they were re-opened last weekend when they agreed to some sort of progress payment. But then they were shut down again Monday after they failed to do so. This indicates that things are really bad AND that they were willing to deceive the state officials. I understand the challenges and uncertainty of running a business. But when you say you're about to make a wire transfer and you don't, you're just lying. And you're lying to the state officials who are working with you and providing concessions to help you make it. If they're lying to those people, it's hard to imagine that they're not lying to members.
.

This has been their repeated pattern, promising town taxes, contractors, utility companies, and then producing bad checks or nothing at all. I can't believe anybody would expect an agreement with these people to be honored.