An ownership change may be in the forecast for Durango Mountain Resort.
Chuck Cobb, the resort’s chairman, owns a slight ownership majority of the ski resort. He’s looking for a buyer for some or all of his ownership shares.
“Chairman Cobb will soon be 78 years old, and accordingly has begun considering ways to restructure his portfolio and reduce his investment participation in some of his assets,” Gary Derck, the resort’s CEO, said in an email message.
Cobb and other DMR shareholders, including the Duncan family, have retained an investment banker to help explore their options. Reorganizing the financial structure or attracting an outside investor are among the possibilities, Derck said.
“There are a lot of permutations that could happen here, including nothing at all,” he said.
Cobb has been the majority owner since 2000. Before Cobb, Vincent Duncan was the principal owner beginning in 1986. Duncan took over from his brother, Ray Duncan, who had been the principal owner since the ski area’s founding in 1964-65.
Derck said changes in ownership interest and structure have occurred throughout DMR’s nearly 50-year history.
“Throughout these changes, the resort and the surrounding community have continued to improve, grow and receive awards and accolades,” Derck said. “The management team does not anticipate any negative impacts on its employees or the guests of the resort as a result of potential changes in DMR’s investment structure.”
DMR, 27 miles north of Durango, offers 10 lifts serving 88 runs on 1,390 acres open to skiing.
Derck said the resort will continue to execute its development plans, and any new owner would bring added funds to continue improving the resort.
“It is our anticipation and hope that any new potential investor group will bring added passion and incremental capital that will benefit both the resort and the community,” he said.
The ski industry may be seeing some consolidation, said Roger Zalneraitis, executive director of the La Plata Economic Development Alliance.
Kirkwood Mountain Resort in the Lake Tahoe area, which shared some common ownership with DMR, was sold to Vail Resorts Inc. in 2012. DMR’s owners retained real estate around Kirkwood. Then in December, Taos Ski Area was purchased by billionaire hedge-fund manager Louis M. Bacon, The New York Times reported.
If DMR’s shareholders decide to sell, a deep-pocketed company such as Vail Resorts is the most likely buyer, Zalneraitis said.
Jack Llewellyn, executive director of the Durango Chamber of Commerce, said ownership changes can be beneficial for a business.
“The new energy that can come with the sale of a business a lot of times can bring new resources and other ideas and opportunities that may not have been there before,” he said.
Llewellyn said DMR should retain its character as a ski resort for families. And if ownership changes, Llewellyn said, he hopes the resort’s new owner values local skiers.
DMR draws about 280,000 skier visits each year.
The resort is perhaps the area’s second-biggest tourist draw, after only Mesa Verde National Park, which sees more than half-a-million visitors annually. The Durango & Silverton Narrow Gauge Railroad draws about 120,000 riders each summer.
In the future, DMR is likely to feel some effects from climate change. Climate models broadly predict the Southwest to become drier and hotter in coming decades.
The U.S. Drought Monitor last week classified the northern portion of La Plata County, where DMR is located, as “abnormally dry,” the least-severe stage of drought.
DMR, with its base at 8,739 feet, also is lower in elevation than neighboring ski areas Telluride Ski Resort, Wolf Creek Ski Area and Silverton Mountain.
DMR’s 2013-14 season was boosted by strong snowfall in November and December, Derck said. The resort does not release precise skier-visit data, but Derck said visits increased in 2013-14 from the previous winter.
cslothower@durangoherald.com