Colorado’s economy continues to outperform expectations, spurred on by tax revenue from stock sales, although unemployment remains high, state economists told lawmakers Monday. The state’s tax receipts are expected to be $548.2 million, or 7.1 percent higher, this budget year than the prior year, according to Gov. John Hickenlooper’s economists. The latest quarterly forecast from state economists touched on familiar trends of past reports: Colorado’s economy is outperforming the national economy, but there remains caution because of the revenue growth is driven by taxes on one-time stock sales. “We have clue after clue that what we’re dealing with is volatile revenue stream,” said Henry Sobanet, Hickenlooper’s budget director. With the adjusted revenue numbers from December, the state’s general fund is expected to be $8.3 billion for the fiscal year that began in July. The general fund now exceeds the pre-Great Recession peak of $7.7 billion in 2007. The quarterly forecast released Monday afternoon will play a key role in the upcoming debate over the budget, especially as lawmakers debate an overhaul of the state’s system to fund schools. Lawmakers typically give final approval to the budget next month. State legislative economists also delivered a separate forecast to lawmakers Monday with a similar outlook of cautious optimism for the state. “I believe it is the spring of this recovery. However, know that storms can still happen in the spring,” said Natalie Mullis, the Legislature’s chief economist.
This is a great article from the Vail Daily about Vail Resort’s 2013 Fiscal Year.
Vail Resorts officials Friday reported strong results for the company’s 2013 fiscal year, with gains in everything from pass sales to ski school revenue.
In a Friday call, company CEO Rob Katz said he’s “proud of our accomplishments” for the fiscal year — from Aug. 1, 2012, to July 31 of this year — saying the numbers reflect “… higher overall visitation, improved pricing, increased average guest spend and strong pass sales.” The company’s stock finished the day at $69.59, up 61 cents from the previous day’s closing price.
Katz gave call participants an upbeat look at the company’s performance. Season pass revenue increased 8.8 percent from the previous fiscal year driven, in part, by the company’s management deal for The Canyons resort in Park City, Utah.
Katz added that the company’s acquisitions of small, Midwest ski areas — Afton Alps in Minnesota and Mount Brighton in Michigan — have also helped spur season pass and lift ticket sales. Pass sales in the past fiscal year also include a new pass for Keystone and Arapahoe Basin, as well as the addition of resorts in Austria and France to the traditional Epic Pass. Those additions mean the company is growing in both the “high end” and “value” markets, Katz said.
The 11.4 million mark, while an increase over the dismal and dry 2011-12 season, is the third-slowest season in the past decade, and the annual increase falls well below the national spike of 11 percent.
Colorado Ski Country USA, the trade group that represents 21 of the state’s 25 ski areas, reported 6.4 million skier visits in 2012-13, an increase of 3.8 percent, or 235,000 skier visits, over 2011-12. Vail Resorts’ four Colorado ski areas — Vail, Breckenridge, Keystone and Beaver Creek — saw about 5 million skier visits.
Colorado’s 2012-13 season started slowly, with weak snow and local skiers staying home. Storms in late December and late spring fueled a rebound in visitation. But it wasn’t enough to pull the state closer to the 12 million-skier-visit benchmark it reached in 2006, 2007, 2008 and 2011.
Declining skier visits does not necessarily correlate to decreasing revenues, as evidenced by ski areas that saw increased revenues in 2011-12, which saw record declines in visitation.
Skier visits at our Colorado resorts for the quarter were up 11.8% over the prior year, offset in part by a decline in skier visits of 0.4% at Heavenly and Northstar, where unusually warm and dry temperatures this spring negatively impacted results.
For the 3 months ended April 30, 2013, excluding the Acquisitions, lift revenue excluding season pass revenue was up 13.4%, compared with the same period in the prior year. We also saw continued growth in ancillary revenue, driven by increased guest spend, with dining revenue up 13.9%, ski school revenue up 11.8% and retail/rental revenue up 7.4%, excluding the Acquisitions.
Retail/rental results were modestly tempered by results in our city store locations. Mountain Reported EBITDA, excluding the Acquisitions, increased $19.2 million or 11.2% for the quarter, compared to the same period in the prior year. Our lodging segment benefited from increased visitation, especially during peak holiday periods, with total occupancy increasing by 2.3 percentage points, along with rate increases as Average Daily Rate, ADR, increased 2.9% at our owned hotels and managed condominiums.
As a result of improved operating efficiency, we increased lodging EBITDA margins by 2.9 percentage points, contributing to a 22.1% increase in Lodging Reported EBITDA, as compared to the same period in the prior year.
Our Real Estate segment continues to see increased demand and we are encouraged by the level of interest and rate of sales we are seeing at both of our development projects.
In Park City, property sales were up four per cent during summer and median property prices rose 11 per cent from the year before.
“It’s a slow but steady improvement,” said Mark Seltenrich, the statistician from the Park City Board of Realtors. “The biggest trend is that the really cheap properties, the low-priced condos or low-priced lots, are not there anymore.”
Curt Singleton, executive director, told The Park Record the rebounding market is reflected in the expanding roster of sales agents affiliated with his organization. “More people are getting back into real estate.”
From Vail comes much the same story, with the bottom-end foreclosures being cleared out in the down-valley markets at Eagle and Gypsum. Several agents told Mountain Town News that they have had multiple offers on properties, the first time in some years for that to happen.
Is the Vail resort complex oversupplied with golf courses? You could make that argument, as several of the valley’s 17 public and private clubs have struggled enormously in the wake of the Great Recession.
But don’t paint with too broad a brush, warn several resort leaders in the Vail Valley.
“They’re not all the same,” said Johannes Faessler, owner of the Sonnenalp Resort of Vail and a companion golf club downvalley at Edwards. “There are different reasons why things happen to different clubs,” he told the Vail Daily’s Lauren Glendenning.
Even in the 1980s, a columnist for a now-defunct newspaper in Vail joked that someday it would be possible to golf continuously from Vail to Glenwood Canyon, a distance of nearly 80 kilometres.
During the 1990s and early 2000s, developers seemed determined to make that come true. There was even a proposal to build a golf course atop an abandoned landfill. At another location, a developer proposed to cap an old pile of mine tailings and create a golf course, as was done at Anaconda, Mont.
Then golfing, as had happened with tennis in the 1970s and skiing in the 1980s, started losing its luster. The growth flattened, nationally as well as at mountain resorts.
Those golf courses that suffered most substantially in the Vail area were those farthest from the ski slopes and resort centers of Vail and Beaver Creek. Brightwater, a project located south of Gypsum, about 72 kilometres from Vail, is now in bankruptcy. A beautiful course called Adam’s Rib, south of Eagle, reportedly sold very few memberships and has revised its fees.
Then came news that only one of four courses at Cordillera, a resort about 16 kilometres from Beaver Creek, would remain open. There are countersuits between the owner of the golf courses, David Wilhelm, and club members, who own property adjacent to the courses.
“Don’t let the Cordillera fiasco overshadow the fact that each one of these courses is doing better,” said Harry Frampton, managing partner of East West Partners. The Avon-based company most typically has built golf course-based higher-end real estate.
Frampton, an avid golfer, says there’s no better place to play golf in the United States than the Vail area. But there are two problems. First, the season lasts only three or four months. And second, he thinks too many of the golf courses are too hard for the average golfer, taking four to five hours to play, too much commitment when there are dozens of other things to do.
He also told the Vail Daily that in a survey of his company’s high-end real estate buyers, 20 per cent had been driven by golf. It’s still important, he said, but golf does not drive the economy of the Vail Valley.
What does during summer? Unlike winter, there is no dominant driver. The Vail Daily sites research done for the Vail municipal government that showed hiking was the top activity of summer visitors.
The percentage of summer visitors who had or planned to golf while in Vail had declined from 32 per cent in 2005 to less than 12 per cent in 2012.
Flaum, president and managing broker of Slifer Smith & Frampton Real Estate, and everyone else in Eagle County went over a fiscal cliff between 2008 and 2009. In those years, real estate sales volume dropped 60 percent, with total sales going from $2.2 billion to $898 million in those years.
Since that low point, the valley’s real estate market has climbed, unevenly, back above the $1 billion mark. Sales bounced back to nearly $1.5 billion in 2010, then fell back to $1.1 billion last year.
This year, there’s been a steady climb from last year’s numbers, in both transactions and sales volume. In fact, only March’s numbers were behind those recorded in 2011.
According to the latest report from Land Title Guarantee Company, transactions and dollar volume for October were both significantly higher than last year. Transactions jumped by 68 percent, and dollar volume increased by 42 percent.
There were 218 transactions in October, the first time the county had surpassed the 200-transaction mark since September of 2007. That year — which seems like a long, long time ago — monthly sales averaged 224 transactions per month for the entire year.
We’re still a long way from 2007. But we’re also a long way from 2009, the very bottom of the local real estate market.
Last week the Sotheby’s International Realty® brand launched the specialty market website, skipropertySIR.com. The site connects the most discerning buyers and sellers of exceptional ski-type properties around the world. We complied a list of the 10 Most Spectacular Ski-in/Ski-out Homes currently on the market:
1. Telluride, Colorado | $12,900,000 | Telluride Sotheby’s International Realty : Located just steps from the trails of the Telluride/Mountain Village Ski Resort, this newly completed private residence was construct with stunning details and warm inviting spaces.
2. Aspen, Colorado | $10,900,000 | Aspen Snowmass Sotheby’s International Realty: This château-style home with world class ski-in/ski-out access, is located in the recreational winter paradise of Aspen Highlands and boasts spectacular views overlooking the lower Maroon Creek Valley and the upper Roaring Fork Valley.
According to the most recent data from Land Title Guarantee Co., there were 126 completed sales in Eagle County in August. It was the second-best month for completed transactions since 2008. Nearly half of those sales — 58 — came from Eagle, Gypsum and the Basalt/El Jebel areas.
While sales were brisk — at least compared with the past few years — prices continue to lag. The sales of $500,000 and less — 56 — made up nearly half of all sales but accounted for less than a quarter of the dollar volume. The average sale price of the lower-priced units was just less than $270,000.
Sales of properties owned by banks — usually due to foreclosure — made up nearly one-third of the total. All but two of those sales were in the $1 million and less category.