SAME STORY - DIFFERENT DAY
By Sall Goodman
February 7th, 2006

As I was browsing through the Rossland Record this past week I noticed an inordinate amount of press on Red. The spin doctors' were hard at work answering the questions to make all happy but effectively saying the same things over and over again - nothing! A few things however did stand out.

It would seem that RMV's spokes model Howard Katkov has announced that a new 300 acre "beginner" area will be completed by next season including the installation of a new chairlift. He cites the fact we (as in the "skier") are all getting older and need some easier terrain to tackle. Yep that's why the locals and tourists come to ride Red - nice easy to tackle terrain. I think Howie needs to get off the pipe for a while!

Katkov then goes on to talk about the challenges of the ski resort business in Rossland and the fact skier visits haven't increased since he bought the place. So this is new information to him and his cronies? I don't get it. I assume being the astute business person that he is his initial business planning would have determined that the Rossland market was a tough one to grow. Of course a couple of years later, after this great epiphany, he has come to realize that growth will be tough with half of RMV's revenues coming from season pass holders. So of course it makes sense to spend millions on a new beginner area? My informal poll of regular visitors and locals would suggest the demand for a new beginner area would amount to the margin or error!

I do like the fact that it has finally been openly stated that the business model for the development of the infrastructure of the resort is tied solely to real estate sales. (See SGR http://www.sallgoodman.com/011126.htm and http://www.sallgoodman.com/040708.htm ). "Nuf said!"

From here, we are taken back to the fun issues like, lockers, the Day Lodge, Paradise Lodge and your lunch, parking and my favorite comment - the incredible invisible changes that have occurred.

Let's start with the, "invisible changes". The maintenance program has been beefed up to the point where other resorts are coming to Red to understand how they do it so well. Kudos to Mr. Jones for keeping the Catskinner Chair, oops, I mean the MotherLode Chair operating at all. I am sure anyone in his chosen vocation would be interested in how he possibly can do it with the tools he has been given. I do however find it hard to believe that the Intrawest Maintenance people are looking to Red for advice on how to maintain their multi-million dollar lift system. As a matter of fact I think Mr. Jones should be the highest paid employee of RMV based on what he has to work with!

How about the early snow causing parking to be a problem? No, the real problem was the fact the RMV tried to jam as much real estate development infrastructure into the pool area and old parking lot too late in the building season. Poor planning again caused this problem. Early snow is a regular occurrence in the Kooetnay's and if the intention was to fill in the pool and use the area for parking that should have been the plan from the start. Of course the real plan was to get as far along the real estate development curve as possible - talk about a quality experience while visiting, parking in the mud or on the highway and walking a mile to the Lodge. Doesn't that just make ya want to come back over and over!

Moving on to lunch (and I am hungry) apparently all are welcome to eat their homemade lunch in Paradise Lodge - just not at lunchtime. Again, a bad decision causes a bad experience for paying customers. The $250,000 that was spent on the Lodge needs to be paid for somehow, so the brain trust has decided to allow bag lunches to be eaten prior to 11am and after 1pm. RMV needs the 2 hour period to sell $5.00 bagels and soup. This is the compromise? The article goes on to say that if you are still eating your lunch at 11:05 am the Brown Bag Police won't take away your tuna sandwich and make you buy a $7.00 pita wrap. God help us all. What would happen if you got caught with a bottle of water? "Pour that out immediately sir and buy a double decaf low fat latte." How about going in to get warm or rest and buy nothing - do you have to give up your seat to a paying customer? Utter stupidity!

Oh, and just when you thought it insanity had abated, I read that RMV is contemplating expanding the Lodge further and adding a Mongolian Snow Yurt at the top of the mountain to serve wine and cheese and open a wood oven pizza outlet.

First of all, if RMV is to double the size of Paradise, maybe it would make sense to have an economy class section and a first class section. Those of us in economy could bring our own lunches, while those in first class would dine on caviar and Dom Perignon.

A Mongolian Snow Yurt essentially a big circular piece of canvas will apparently house a wine and cheese bar and serve wood oven pizza. As most of you know, yurts are normally used as backcountry hostels for those of us that tour. I am just thinking on my feet here, but what if they franchised the "MONGOLIAN SNOW YURT WINE & CHEESE PIZZA OUTLET" idea and placed them all over the Kooetnay's in the backcountry. Wouldn't it be great to hike for a couple of hours and before you ride the fresh instead of a power bar and some water you stop in for a little Mondavi Coastal Cab Sav, a piece of old OKA cheese and slice of pizza? All for the rock bottom price of $20.00. Stupid is as stupid does!

Call me crazy here but what about - buying a new lift!

Think about it. Get skiers to the top faster, tire them out faster, they will go to the bar earlier for longer and RMV will make more money. As a matter of fact, they could buy another used lift. I am sure Whistler has an old one sitting around somewhere. Maybe they could find one on eBay?

Continue to clear the alder and stop wasting what little capital is available on a new Pizza Hut concept and expanding a Lodge that no one wants to use anyway because of the cost.

It would seem that the truth is finally starting to show through the façade. Why invest in the real issues that will bring skiers when you can use other people's money to see if the real estate play will work.

I like the fact that council is pointing the proverbial gun at RMV's in regard to a schedule - there should be a timeline in regard to REAL INVESTMENT at the mountain. Boldly, I might suggest that RMV and anyone or corporation for that fact associated with them will not be permitted to develop any further until substantial investment is made improving the infrastructure of the resort. Maybe a new parking lot now, new and or updated lifts system, continued trail clearance etc, etc. These are the kind of things that cause the locals to buy into the model and the tourists to come.

Katkov at the end of the day is a prudent business man, when it comes to investing HIS capital and that of the partners of RMV's. Other than the purchase of the mountain and assets attached, it would seem to me that there was never any intention of real investment to improve the experience at Red. The model is simple, sell real estate, take as much as possible and if there is some capital left, invest in infrastructure. The only risk that RMV's has really taken is that the City of Rossland finally stops them in their tracks and forces the issue of real mountain improvement to the forefront.

The one thing however that is becoming quite evident as time goes by is Howard Katkov's career as a spin doctor is in rapid decline!

My advice, don't quit your day job!

Rock-On
Sall