October 20, 2002

Searchmont Resort is located approximately 40 kilometers northeast of the City of Sault Ste. Marie in the Sault Ste. Marie north planning area.  Situated in the mountains of the Algoma District, Searchmont Resort is widely known as a winter ski destination.  With the highest vertical (700 feet/213 metres), the longest green trail and largest snowboard park in the mid-west, Searchmont offers downhill skiers, snowboarders and cross-country skiers a wide range of facilities and amenities.

Searchmont Resort is one of the largest, if not the largest, winter regional tourist destinations for Northern Ontario.  With up to 45% of the 60,000 to 80,000 skier visits annually coming from the United States the resort is a significant wealth generating venture that assists in economic stability and growth for the surrounding communities.  The estimated economic impact is $8 Million to $12 Million annually.

On July 19, 2000, the Resort went into receivership.  BDO Dunwoody was appointed by the court to act as the receiver on behalf of all creditors.  The receiver operated the resort for the 2000/2001 season while trying to secure a buyer.  While the ski season was deemed a success, the receiver was not successful in securing a purchaser.  In June 2001, the receiver announced that the Bank was not prepared to finance the re-opening of the resort for the 2001/2002 ski season.  Essentially, their message meant the resort would not open until a buyer is found.  This could take 6 months, a year, two years or possibly never.

Realizing the importance of the resort and its economic impact to several communities in the area, the Community Development Corporation of Sault Ste. Marie & Area (CDC) and the Economic Development Corporation of Sault Ste. Marie (EDC) believed the only option was to set up a not-for-profit corporation that could lease and operate the resort in the interim while a buyer is being sought.  With community support, the CDC and EDC then initiated a process that put together a solid well-educated and well-experienced volunteer board of directors that had the ability and capability to move this project forward. In addition, the CDC and EDC were able to secure appropriate funding and secure a commercial lease with the receiver in order to operate the Resort.

Project Objectives

1)  To ensure Searchmont Resort survives as an ongoing business and tourist attraction 
2)  To ensure there is no lapse in operation that could cause equipment and facility deterioration
3)  To avoid loss of traditional customers 
4)  To assist in the process of developing the resort into an All Season Destination Resort

Performance Targets

The targets for the corporation were:
- To open for business prior to Christmas 
- To remain open for the full ski season
- To attract a minimum of 70,000 skier visits
- To hire 140 – 200 full and part time employees
- To break-even financially as a minimum
- To conduct or have conducted appropriate studies etc. that enhance the salability of the resort and to assist in further development of an all season destination

Partners

Identified below were the financial arrangements and partners including in-kind contribution required:
C.D.C. of Sault Ste. Marie and Area 
$30,000 in Kind
$20,000 Cash toward Senior Management Wages, CDC served as the head office of the not-for-profit corporation.  CDC also provided Project Team Management and Direction, Administration and Accounting Support, Bd & Committee Meetings – setting up of the meetings and minutes etc.  Brian Irwin served as Treasurer and Director of Bd;  Terry Rainone served as Director of Bd.

Economic Development Corporation of S.S.M.
$10,000 Project Team Management and Direction, Duane Buchanan served as Chairman and Director to the Bd, Jim Harmar and Bill Durnford served as Directors of the Bd.

FedNor
$300,000 Working Capital Loan, FedNor Staff served as resource to the Bd.

City of Sault Ste. Marie
$225,000 Working Capital Loan, Joe Fratesi served as Secretary and Director of the Board, Derik Brandt served as a Director of the Bd.

Area Hotels and Motels
$140,000 Purchase of Prepaid ski passes.

Business Leaders
The remaining volunteer Board of Directors consists of:  Alex Campbell, Bob Richardson, David Beaumont, Jim McAuley, James Horbatuk (vice Chair), Joey Bumbacco.

Residents of the area Communities
$117,000 Purchase of Seasons Passes

Total $812,000
$20,000 
- The in-kind contributions are estimates only. 
In addition to the above, additional funds have been made available by:  1) City of Sault Ste. Marie through the EDC $25,000; 2) CDC of Sault Ste. Marie & Area $25,000; and 3) $50,000 from FedNor.  These funds will be allocated for water & sewer studies, hydrology studies and business plans to help facilitate the purchase and development of the Resort into a four-season attraction.

Results and Accomplishments

- Searchmont Ski Association Inc. took possession of the property by mid October and worked feverishly to have the Resort open for business on Boxing Day (would have been earlier, however, weather did not cooperate)
- The Resort remained opened or the full season (April 1, 2002 was the last day)
- The Resort attracted 53,000 skier visits, resulting in excess of $2 million in revenue.  (Skier visits were down due to a variety of reasons, however, the revenue per skier visit was up significantly.
- The Resort hired 150 full and part time employees
- The Resort is expected to break-even, paying back all loans and lease payments
- The economic impact for this season alone is estimated at $8 Million 
- Finally, and most importantly, the Resort has been sold (closing date of May 1, 2002).  This sale would not have occurred if the Resort was not operational during the past ski season (confirmed by the new owner).  Long term plans include the development of the Resort into an all-season attraction.

This was truly a widespread community effort and each and every partner contributed in their own significant way.  The effort has been seen as a success by all those involved.

Nominee:  Searchmont Resort Recover/Redevelopment Initiative
Searchmont Ski Association Inc. o/a Searchmont Resort,

In conjunction with:
Community Development Corporation of Sault Ste Marie & Area
and the Economic Development Corporation of Sault Ste. Marie
Address:c/o 672 Queen Street East 
Sault Ste. Marie, Ontario
P6A 2A4
Phone:  (705) 942-9000
Contact:  Brian Irwin
Duane Buchanan