Intrawest beat out Colorado-based East West Partners, the largest private developer in the Vail area. Webb says he reviewed proposals from both Intrawest and East West, and found them both strong financially. But he says while East West's proposal was good, Intrawest's was great.
As part of the deal, as soon as Intrawest signs the contract with the city, it will pay the city $3 million. After that, it guarantees the city $2 million a year for the next 10 years. After that, Intrawest's payment will be based on a formula that won't be disclosed until the contract is signed and approved by the city council.
Intrawest will lease Winter Park for 50 years. The lease can be extended. Webb's hope is that under the structure, that when Winter Park is returned to the city, the resort will be debt free.
"Winter Park Resort represents an exciting opportunity for Intrawest," says Gary Raymond, president and chief executive officer of development for acquisitions for Intrawest. "In the months and years ahead we will work hard to ensure our years of experience in Colorado and in resort across North America, translate into an enhanced experience for Winter Park guests, staff and for the citizens of the city and county of Denver."
Intrawest, in its development plans, emphasized "destination skiers and warm beds," which means more rental units.
Eight nine years ago, Webb supported selling Winter Park.
''I've come full circle,'' Webb says. He adds people who don't even ski have stopped him in grocery stores and tell him that they want to keep Winter Park. He says many people didn't even realize the city owned the resort until they read about it in newspapers.
"Ultimately, I believe that selling the resort was not the right thing to do," Webb says. "The selection of Intrawest for contract negotiations protects the city's ownership while also ensuring the resort's success in a very competitive market."
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