City kicks in support for bankrupt resort.

• Author: Ross, Ian
• Position: Brief Article

Council approves funding to keep Searchmont open for season

A Sault Ste. Marie non-profit group attempting to keep the bankrupt Searchmont ski resort operating this winter received a $150,000 boost from the City of Sault Ste. Marie last month.

City council approved a funding request by the economic development corporation (EDC) acting on behalf of the local non-profit group that is negotiating to lease the ski hill for the upcoming season.

This group, Searchmont Development Inc., comprised of the EDC and the community development corp. (CDC) has been holding discussions with the court-appointed receiver BDO Dunwoody. Last year BDO Dunwoody operated the 550-acre ski resort located 40 kilometres north of the city.

"It's not a done deal yet," says Brian Irwin, the CDC's executive director. "Apparently there are still some private-sector individuals looking at leasing or purchasing or leasing to purchase."

Council approved $25,000 from an economic development fund and a $125,000 conditional fund to be used if the non-profit group is forced to step in and operate the resort this winter. The CDC is also contributing $30,000.

BDO Dunwoody had previously, stated it has no interest in operating the resort for the 2001-02 ski season. Despite rejecting several purchase offers after nationally advertising the operation in a sale-by-tender process, BDO Dunwoody continues to field inquiries from private operators looking to buy or lease the resort.

"There's still a lot of interest out there. It's unfortunate that interest doesn't convert into an offer," says John Thompson, senior vice-president of BDO Dunwoody in Sault Ste. Marie, who claims inquiries were still coming in after the Aug. 7 tender deadline. "There's a steady stream of interest, it just doesn't seem to be coming into some kind of final arrangement."

The trustee says in a press release they will continue to entertain inquires from private operators, but from now on any sale or lease...