Clarenville taxpayers on hook for White Hills bills after sour year on the slopes

Clarenville's town council has cut a $67,700 cheque to cover unpaid bills during the 2018 season at White Hills Resort — just one part of the town's increasing financial commitment to the ski hill.

The town has sent White Hills more than $300,000 in the past two years, a total that includes the bill payment, a line of credit, and money for maintenance costs, according to figures prepared by Coun. Paul Tilley, the town's finance chair.

The town normally sends the ski hill between $50,000 and $75,000 a year in a line of credit, but has stepped up its support in the past two years, in part because of the ski hill's financial troubles in 2018.

According to the financial statements of the Alpine Development Alliance Corporation — the non-profit White Hills parent company — revenues dropped in the 2018 fiscal year.

Greg Pittman, chair of the Alpine Development Alliance board of directors, says that's due to uncooperative weather, which rained out many skiing days and ruined much of the hill's manufactured snow.

"We made snow, and then it rained. Severe rain took it away. We made snow, severe rain took it away," he said. "So that was eating up money and cost, of course."

The ski hill lost money, so Clarenville's town council stepped in to pay bills. And, for the first time in 18 years, the Alpine Development Alliance Corporation was unable to make any payments on their outstanding loans from the town office, according to Tilley.

"It was simply because of an off year for weather," said Pittman. "Last year was the first year, at the end of the year, that we owed the town money and we weren't able to pay them back."

Take the long view: Tilley

While Tilley says it's important for the ski hill to bounce back, he believes it's important to take a wide view when evaluating its performance.

The hill is owned by the town, but operated by the Alpine Development Alliance Corporation.

"Does it contribute to the town's budget? Not directly, but it's a contributor to the town," Tilley explained.

He says over the past decade, it has been financially sustainable. And, even more important, he says, it's a big contributor to the health and well-being of the community.

"We never question about how much roads make for a town or how much a port would make for a town, or how much an airport would make for a town, but those are absolutely essential to generating the business that makes the town livable and makes the town a place that people want to come to," he said.

Pittman says last year's mild winter was a once-in-a-generation event, and he's confident the hill will turn itself around this year.

"We had a record number of skiers in 2014, so, it's just that we had an off season. Every now and then you have an El Nino year where you have a real warm winter. We've [operated] it 18 years, so this happens once in 20 years, we'll take it."

How much will be repaid?

Of the $300,000 sent to White Hills, almost $200,000 is considered a loan.

Tilley said he's not sure whether the bill payment, the $67,700 cheque, will be repaid in full — but Pittman is.

"We're not really concerned about it. We think over the next 10 years, we'll have enough money to pay the town back, hopefully even long before that."

Even if the balance sheet at White Hills doesn't even out, Tilley said residents can still consider it a sound financial investment by Clarenville's town council.

"The revenue comes from, largely, St. John's and the metro area, so east of Clarenville, that money, though — the bulk of the money — is spent here in Clarenville. And it contributes to businesses."

Just ask the staff at the Restland Motel.

"Especially in the winter. I mean, everything slows down, the tourism, say contractors, everything," said Rebecca Wills, who manages the motel's reservations. "We really, really love when [skiiers] come."

And when the traffic — and revenue — is down, it's noticed, according to Keith Pardy, one of the owners of the Clarenville Inn.

"Last year was really not good, the numbers …we were probably at 10 per cent of the ski-and-stay packages versus a good year. We had extra coupons left over," he said, adding the White Hills-linked promotions at the hotel didn't break even that year.

But, both Pardy and Pierre Mirault, the ski hill's new manager, are expecting a rebound in 2019, despite a rocky start that pushed back the opening date this year.

"We're always at the mercy of inspections, and inspections at times with the weather create delays, and delays also play a big role in when you can open," Mirault said.

However, he believes things are looking up.

"I'm 100 per cent confident that from here on in, after this rain spell, we're ready to do more snow-making."

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