EB-5 Funds For Mount Snow To Be Released From Escrow, After Months of Waiting
The parent company of Mount Snow says it will finally get $52 million through the federal EB-5 Immigrant Investor Program.
Peak Resorts announced Tuesday that the money for its two major projects on the mountain would be released from escrow.
Under the EB-5 program foreigners get U.S. visas if they invest at least $500,000 in a project that boosts employment.
Mount Snow announced in May that U.S. Citizenship and Immigration Services had approved the EB-5 program, but the money's been tied up while the visa applications were being processed.
The company says U.S. Citizenship and Immigration Services approved the first investor petition, which triggered the funds to be released.
The southern Vermont ski resort is using the money to expand its snowmaking and replace an aging base lodge with a three-story, 36,000 square-foot building.
Both projects will cost around $66 million.
Mount Snow has already invested $15 million into the project.
The company was facing cash flow challenges over the past year while while it waited for the EB-5 money.
“We’ve been waiting quite a while for this day,” said Mount Snow President Dick Deutsch said in a press release. "While we’ve been able to complete a fair amount of preparation and site work thus far, the release of these funds will allow us to dive head-first into the next phase of the project."
The company says a portion of the EB-5 money will be used to reimburse the company for its earlier investment.
Peak Resorts Chief Financial Officer Steve Mueller says the reimbursement will "help further strengthen our balance sheet and bolster long-term liquidity of the company."
Mount Snow hopes to have some of its upgraded snowmaking in place this winter, and work on the new base lodge should start early next year.