A deal for the ongoing operation of the Tawatinaw Ski Hill has been reached between Westlock County and an area businessman.
The municipality announced the in-principle agreement (approved by a 4-2 council vote) on Friday, Nov. 27 that involves a lease/purchase option between the county and DK Consulting Services, which is owned by Dom Kriangkum.
“We believe the private sector is better suited to use their personal-investment dollars rather than using public-sector dollars to run such a business,” said Westlock County reeve Bud Massey.
“Private enterprise has the ability to provide improved service levels and needed employment opportunities for our residents.”
Financial details of the deal are unknown and Massey said they’ll be made public at council’s Dec. 8 meeting.
What is known is that initially there will be a three-year lease of the site by DK Consulting Services, during which time the operator has the right to buy it.
At the end of the three years DK Consulting Services will either have to purchase it or return it to the county.
As part of the lease/sale agreement the ski hill will remain open for 20 years — it’s not clear what could happen to the hill after that time.
The deal does not include the Crown land at the back of the hill and during the lease period the county will continue to provide maintenance services in partnership with the new owner.
Massey said the lease/sale brings to an end what has been a significant drain on the county’s budget.
“Last year the county lost in excess of $315,000 in operating costs alone,” he said. “This year it will be taxed at the rate of all other commercial properties so we will receive that, plus we’ll receive a small lease payment.
“So instead of having a loss, we’ll actually have positive cash flow.”
A press release from the county said that since 2006, when the municipality took over the administration of the facility, the hill has posted a $1.5 million operating loss. That comes on top of $3 million that had been put into the site for capital works.
Spending by the county at the ski hill is still ongoing. At the same time the municipality was in final negotiations regarding the lease/sale agreement, it also approved a further $75,000 worth of spending.
The new money will be used for the addition of a helipad and ambulance access, as well as disabled parking spaces, signage and stairs to the basement of the chalet.
In addition, a final cost for the chalet remains unknown — originally pegged at $1.8 million, both Massey and CAO Peter Kelly told the Westlock News in late October that final figure will be much higher, while the News has previously quoted figures of $2.5 million.
The fate of the current contractor that supplies services to the ski hill, like the ski shop, are unknown and Massey said that it will be the new owner’s responsibility.
Kriangkum owns a number of other sites in the Tawatinaw area, including the Pine Valley Gym Centre — Kriangkum did not respond to interview requests before deadline.
Users of the ski hill responded positively to the news of the sale.
Tawatinaw Valley Freeriders Club spokesman Toni Siegle said members were starting to get worried about the future of the facility.
“We just think it’s such a jewel for our community. The most important thing for us to see is that it remains open so kids and families have the opportunity to use it,” she said.
“We were getting a little bit nervous about a decision having not been made yet. Now that there is a decision and things are going to go ahead we’re very happy about that.”
Kriangkum is well known to Siegle and she says that his community focus bodes well.
“He is a fantastic person, very community oriented,” she said. “I know he’s developed a passion for the area and I think he will do his best to help it grown.”
An opening date for the Tawatinaw Ski Hill’s current winter season remains unknown.
Before the lease/ sale announcement Kelly said that date would be negotiated with the new owner. Snow making has not begun as Massey said that process requires temperatures of -10 C, or lower.
“The water that we’re using is warmer, so there’s some difficulties,” he said.
Originally a legacy project from Canada’s centenary celebrations in 1967, the hill was run by volunteers until 2006.
The previous council agreed to build a new chalet at the site and despite work having finished over a year ago the building remains unused.
In late 2014 it was discovered that the new building was at risk of flooding and couldn’t be used until it was lifted higher — that work was undertaken and completed this summer.
Aside from issues with the new chalet, the old chalet also caused headaches for the county.
Tendering for the job of demolishing the old chalet was delayed while contractors worked out how to deal with the hazardous materials used in its construction.
One bidder withdrew from the tender process describing environmental requirements places on the demolition by the province as ‘ransom rules.’
Ultimately council voted 4-2 to approve the in-principle lease/sale and Massey said the split was a reflection of diverse opinion. According to the county press release the final lease/sale agreement and its details will be voted on again by council Dec. 8.
“That’s what council should be about,” he said.
“I wish that every council operated that way.”
