Von Roll Seeks Buyer For Silver Mountain Stake Swiss Backer Weighs Offers For North Idaho Skiing Resort

Silver Mountain Ski and Summer Resort could have a new owner before the first wedge-turns are cut through the powder this fall.

Von Roll Transport Co., the Swiss metals conglomerate, has had the “For Sale” sign out since last October for buyers of the bonds it backs.

The Finch Group of Boston, which specializes in the sale of ski resorts, has contacted four groups serious about buying the bonds, or the five-year-old resort itself.

The city of Kellogg owns the resort, but could sell its stake when Von Roll sells the bonds to a private company, said Murph Yule, senior vice president for new development for the Finch Group.

Von Roll wants out of the ski resort business. It put up $17 million in bonds to get the resort off the ground, and since then Silver Mountain has struggled.

Yule’s group sent information packets to 40 interested parties, of which 16 or 17 spent time visiting the mountain this spring and summer. Of that group, four sent informal purchase proposals to Von Roll and Yule.

All four of the interested parties have backgrounds either in ski resort management, hotel and hospitality management, or have invested in resort properties, Yule said.

Yule and Von Roll met with the four possible buyers and now await formal offers to consider. However, Yule hasn’t ruled out receiving more informal letters of intent from other interested buyers, he said Thursday.

“We hope - optimistically - to have new ownership before the ski season begins,” Yule said. “We know that’s an aggressive timetable. Either we’ll have a buyer before the season starts or we’ll have one when it ends next year.”

Rarely do ski resorts change hands in midseason, he said. The transition would be too difficult.

The city’s position will be flexible when negotiating with potential buyers, Yule said. In some scenarios, the buyer could let the city keep its stake as owner and assume Von Roll’s position as the backer of the bonds.

Or, the new owner could buy the resort outright from the city, perhaps even leasing it back to Kellogg for the city to run, he said. The only preference the city has is to get a buyer with some experience running ski resorts who can elevate Silver Mountain, Yule said.

“Indirectly, the city would always be deeply involved in the resort,” Yule said.

Kellogg Mayor Melvin Hill was out of town Thursday evening and not available for comment, according to Kellogg officials.

In any scenario, Silver Mountain will have a 1995-96 ski season. Last week, Von Roll approved the upcoming year’s budget, said Tim Newhart, director of sales and marketing.

Included in the upcoming budget is money for a new snow grooming machine and for heftier marketing efforts.

“You have to give credit to Von Roll,” Yule said. “No one has pulled back from their obligations with Silver Mountain. They’ve just made the business decision to stick with it.”

Newhart said he’s fielded some calls from skiers wondering about the status of the ski season with the ownership question still unanswered. Silver Mountain began its aggressive preseason ski pass sale this week.

“There’s just simply no danger that we’ll change our status,” Newhart said. “In fact, we’re going to use the change of ownership as a great marketing opportunity for us.”

, DataTimes