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PARK CITY — In a suprise announcement Thursday, Vail Resorts, Inc. reported that it has purchased Park City Mountain Resort, which was previously owned by Powdr Corp., for $182.5 million in cash.

The announcement came two days after Park City Mountain Resort agreed to pay a $17.5 million bond to continue operating on land owned by Talisker Land Holdings for the upcoming ski season. The resort's operation for the season had been in question as it sought to negotiate a lease agreement with its landowner.

Vail's purchase of the resort, however, cancels the bond and resolves all legal questions of the resort's continued operation, according to Rob Katz, CEO of Vail.

"I think the most important piece of today's announcement is it really ends all the litigation, the disruption and ensures that we will not be talking about any potential concerns around the resort operating at any time for the future," Katz said Thursday. "I think it provides comfort and long-term security to the company and to the employees of PCMR."

The acquisition includes the land used for ski terrain and the resort base, parking, lower ski terrain and lifts, as well as water and snowmaking for the entire mountain. Powdr, however, will retain Gorgoza Park, a tubing operation about 10 miles from the resort.

"Selling was the last thing we wanted to do, and while we believe the law around this issue should be changed, a protracted legal battle is not in line with our core value to be good stewards of the resort communities in which we operate," John Cumming, CEO of Powdr, said in a prepared statement.

"A sale was the only way to provide long-term certainty for PCMR employees and the Park City community," Cumming said. "My family and I are extremely grateful to have had the opportunity to play a role in making PCMR what it is today, and we deeply appreciate the dedicated employees and all of the people who have supported us over the years."

Selling was the last thing we wanted to do, and while we believe the law around this issue should be changed, a protracted legal battle is not in line with our core value to be good stewards of the resort communities in which we operate. –John Cumming, CEO of Powdr

Last year, Vail signed a 350-year lease with Talisker to operate Canyons Resort adjacent to Park City Mountain Resort. Katz said Vail hopes to combine the two resorts.

"If we did that, we would actually create a ski resort with 7,000 skiable acres, making it the largest ski resort in the United States," Katz said.

For the coming season, Park City Mountain Resort will operate independently from Canyons Resort, and the two will be operated as they have in years past, Katz said.

The Public Reaction

The overwhelming sentiment regarding the sale of Park City Mountain Resort to Vail Resorts Inc. Thursday was one of relief.

"It's been really tough in a lot of ways. I have a lease option coming up in the spring, couldn't even think about it with the resorts fighting," said longtime Park City restaurateur Steve McComb, who with his wife, Cissy, employs 200 people at three establishments in Park City.

"My property is completely surrounded by Park City Mountain Resort property, so whatever happened to PCMR greatly affects me and my employees, so this is phenomenal news," he said.

The prospect of 300,000 Epic Pass users now being able to access Park City Mountain Resort is also exciting, McComb said.

Vail Resort's Epic Pass, which costs $749 for adults and $389 for children, provides unlimited access to resorts from Michigan to California, including Vail, Beaver Creek, Breckenridge, Keystone, Canyons, Park City, Heavenly, Northstar, Kirkwood, Afton Alps, Mt. Brighton and Arapahoe Basin resorts.

"Obviously this is phenomenal news. I'm glad they worked it out," McComb said.

Park City Mayor Jack Thomas, who was in Vail when the sale was announced, said people were glad to hear an agreement had been reached.

This is great news for Summit County, for our state and, most importantly, for the thousands of skiers who want to enjoy this world-class resort. I hope both parties will find the deal to be beneficial and I wish them well going forward. –Gov. Gary Herbert

"They're excited to have this resolved and take the uncertainty out of the next year," he said. "I'm surprised to see it happen today, but I'm hugely relieved."

A lift for all resorts

Like McComb, Thomas said the prospect of a mega-resort bodes well for the future of Park City, Canyons and Deer Valley resorts. Ski tourists tend to ski at multiple resorts, so increasing the number of visitors to the area should have broad benefits, he said.

Colleen Reardon, marketing director of Deer Valley, said the resort's research shows "Deer Valley-loyal guests will spend most of their days there, but they will take a break and go over to one of the other resorts. A two-resort town is a big draw for people. It's fun to try other places. We're so lucky. Just look at the resorts we have in our own back yard. It's crazy good."

While Deer Valley has had a long relationship with Park City Mountain Resort and is grateful for its efforts over the decades in establishing the community as a premiere ski destination, Vail has been a good operator of Canyons resort, she said.

"It will be a great thing for the town. They've been in the community for a while, and it's been a great relationship. We'll continue that and work with them to grow the town even further," Reardon said.

Utah Gov. Gary Herbert said he also was pleased the parties were able to resolve their differences.

"This is great news for Summit County, for our state and, most importantly, for the thousands of skiers who want to enjoy this world-class resort. I hope both parties will find the deal to be beneficial and I wish them well going forward," he said in a statement.

Thomas said the industry has talked about the prospect of a mega-resort for 40 years, along with conceptual discussions of connecting seven major resorts along the Wasatch Front.

"That seems to be moving forward and this would be one step toward that. It’s a huge factor in terms of the marketability of Park City’s future. When people come to Utah to ski, they ski at multiple resorts. They like that experience," Thomas said.

The landscape

Carl Fisher, executive director of the advocacy organization Save Our Canyons, also expressed relief that the dispute had ended, although for vastly different reasons.

"Hopefully this will draw a conclusion to viewing the Wasatch as an asset on a balance sheet for the elite, and we can again begin talking about the area's importance as a natural landscape that provides our communities with invaluable water and an amazing quality of life," Fisher said in a prepared statement.

As Thomas looked forward to this year’s ski season and the long-term economic impacts of a mega resort in Park City’s back yard, he said it was important to acknowledge the people behind the resort’s rich history.

“It’s important to thank and acknowledge people who have been the legacy of this community. That goes back to (former owners/corporate officers) Edgar Stern, Nick and Craig Badami, John and Kristi Cumming and Jenni Smith.

"They’re the ones who helped bring World Cup Skiing to Park City and certainly a very prominent part of our Olympic 2002 year. It’s made the community what it is today. So we’re grateful for everything they’ve done and we’re hopeful and positive about the engagement of the Vail team,” he said.

Uncertainty over the 2014-2015 season was somewhat blunted after Powdr Corp., PCMR's owner, posted a $17.5 million bond on Tuesday to operate the resort this winter while it appealed a ruling related to the resort's failure to renew its lease on time.

Even so, tourists planning ski vacations, tour operators and travel agents were becoming apprehensive about travel plans for the upcoming season, Reardon said.

Happily, the issue has been resolved, Thomas said.

"We’re glad to have it handled now. It opens up the doors to reservations and business and continuing to have another great year like we had last year," he said.

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