Whitehorse Daily Star

‘I think the ship has sailed': mayor on Sima

City staff have been directed by council members to investigate the costs of both shutting down the Mount Sima recreational facility and keeping it running.

By Stephanie Waddell on June 13, 2013

City staff have been directed by council members to investigate the costs of both shutting down the Mount Sima recreational facility and keeping it running.

A two-hour council and senior management meeting was held Wednesday evening.

Great Northern Ski Society president Craig Hougen and secretary Lee Vincent presented the most recent business plan for the hill. They also fielded questions from council members over the $610,000 the society is seeking from the city to keep Sima open.

By the end of the session, Mayor Dan Curtis was asking administration to look at the possibility of securing the hill's assets to the city. Greater clarity on the costs of shutting down the facility and keeping it opened were also sought.

The non-profit society, which operates Mount Sima, told the city earlier this week it needs the funding it's seeking from the city by June 21.

Failing that, it would begin the process of disassembling the society and shutting down the hill.

The hill's financial woes were made clear early this year when the society and its supporters initially came to the city.

They were seeking $400,000 in immediate funding to deal with debt and ongoing expenses.

They also sought a long-term plan that could include the city providing annual core funding, which was expected to be around another $400,000 each year.

The request came almost a year after the society received $1.3 million to move to full-year operations at the ski hill.

Another $1.6 million was provided by the city a year before that for the new chairlift out of funds that were freed up after Building Canada money came through for work on Black Street.

The city didn't provide the funding requested earlier this year. However, it offered support for an event involving stakeholders with the goal of reaching a more community-based solution.

The society hosted two closed-door events – one as an information session, the other looking at solutions – before bringing forward its latest plan, which proposes the city funding of the more than $600,000.

As Curtis told ski society officials last night, he had thought the Sima Summit would see organizations and businesses come forward with solutions to the short-term funding issues, but the ask is still coming to the city.

And as a number of council members pointed out, the money just isn't there to fund it and the general public just doesn't seem to want to support it.

"I wish we had the money,” Curtis said. He went on to compare it to a parent who may want to buy his or her child a car, but the money to do so just isn't there.

"I think the ship has sailed,” he said. He stressed it hurt him to say that, and noted that Sima has provided the community with many benefits over the years.

"It's a really, really hard issue,” Curtis said.

Time is also a factor. As Coun. John Streicker pointed out, the June 21 deadline doesn't even fit the normal timeframe for a council decision.

Typically, issues first come forward and are discussed without a vote at a standing committee meeting with a vote typically taking place at the regular meeting the following week.

Council's next standing committee meeting is Monday, with the next regular meeting then set for June 24.

There are provisions allowing for council to call a special meeting where a vote can be held outside of its regular schedule.

Hougen then noted the "real deadline” is June 30. He explained the June 21 deadline was arrived at based on the June 30 payment due on the hill's chairlift.

The territory has said it would pay off the more than $180,000 due on the chairlift, provided Sima will be operating next winter.

A number of council members noted their leanings toward not providing the funding to keep the hill going.

Streicker, however, was quick to remind his fellow council members that whether the city puts money into keeping the hill going or keeping it secure after it shuts down, there will be a cost to the city.

"There is a cost on both sides, in my opinion,” he said.

As Coun. Jocelyn Curteanu pointed out though, the costs that come with mothballing the facility are more fixed than what might come if Sima remains open.

Revenue for Sima depends largely on factors such as weather that are out of anyone's control, she pointed out.

The society's most recent estimate of icing the facility puts the annual cost at $193,000.

That includes the two full-time staff it states is needed for maintenance, along with electricity, septic and water, heating and vehicle fuel as well as maintenance supplies and contracted work.

Coun. Kirk Cameron, however, noted his thoughts that the estimate is somewhat excessive. He wondered if a fence and alarm system could provide the security needed if the ski hill was decommissioned.

He told staff he would like to see some "crisp numbers” on what the actual costs of closure could be compared to the cost of staying open with all the factors considered.

Vincent told council if the facility is mothballed, the chairlift would still need to be paid off, and the territory's funding is contingent on Sima opening for the winter.

There's also the 10-year lease agreement between the society and Wild Play for the adventure park that makes up much of the summer operations at the hill and legal issues that could arise if that lease is broken.

The society is also currently working with Wild Play to pay off its $72,000 debt through this summer's operations and that debt would have to be dealt with.

Vincent also went on to tell the city that a society can't dissolve when there is debt.

So, if the city funding doesn't come through, the ski society would first sell off the hill's assets that aren't fixed – the Snowcat and other equipment to pay off its debts, which include another $170,000 owed to local vendors.

That could mean if the hill reopened in the future, equipment would have to be purchased again.

Council considered the distinct possibility of the city's only ski hill shutting down.

Curtis, however, stated his hope that maybe a year or more without the hill operating would galvanize the community into action that could eventually see the hill reopen.

As members discussed the possibility of not funding Sima and seeing it close, Coun. Dave Stockdale spoke out against the closure.

"I think shutting it down is the worst thing we can do,” he said. "I think it's really a backward step.”

Stockdale said he'd like to see some sort of public forum held where residents could tell council where they stand on the issue.

He pointed to the city's Development Cost Charges fund as one account the city could look at to provide the funding, which, he pointed out, could go directly to creditors to pay off Sima's debts.

The Canada Winter Games were a great experience for the city, he said, noting many at the time spoke out against the cost of hosting the 2007 national event.

He also said he would like to see numbers on how many are in favour of keeping the facility open and how many are against.

Streicker said that while he hasn't kept count in recent weeks of the numbers that have come into him, prior to the Sima Summit sessions, he was keeping track and could make his spreadsheet available to other council members.

He put a rough estimate at about 2/3 being against further funding to keep Sima open and 1/3 in favour.

Curtis argued the overwhelming response from the public is not to provide further funding to keep the hill going.

"I'm pretty clear on how the public feels,” the mayor said, with Curteanu echoing the sentiment.

As the meeting came to a close, Hougen took the opportunity to make a final plea to council, pointing out the hill has found a way to operate for the past 20 years (with the exception of the 2007/08 season). It's unfortunate politics have become involved, he said.

The $3-million chairlift, which the city funded to the tune of more than $1 million, replaced an "asset that was aged.”

He noted if the roof were to blow off the Canada Games Centre, it would be replaced by the city. For the ski society though, it had to do fund-raising and go to other sources to find the money for the lift.

Closing down the ski hill which has operated for two decades is not the right thing to do, Hougen said, calling Sima part of the fabric of the community.

The society is out of time and money, he stressed, noting he paid for garbage collection from the hill recently out of his own pocket.

After last evening's meeting, acting city manager Brian Crist said it is "technically possible” for staff to have a report to council on Sima for Monday's standing committee meeting.

The report would sum up last night's session and "crunch” some numbers around the possibilities for the hill.

Comments (19)

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Watson Lake Resident on Jun 17, 2013 at 8:29 am

Mt. Maichen in Watson Lake runs all winter with a Town grant of $12,500 per year for insurance costs. That's it.

If they need more money the Watson Lake Ski Club finds other grants that are available. To actually run and operate a ski hill in a city like Whitehorse where you don't get enough snow each winter is ridiculous.

Welcome to Watson Lake. The hill is open all winter long with real snow

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Question on Jun 17, 2013 at 5:50 am

Didn't the chair lift update come in package with the new snowboard park and lodge/rental areas as an update in preparation for Canada Winter Games, hosted in 2007? Wondering if that HUGE jump in technology with the new expensive chair, buildings and opp/maint/staffing costs put the hill over the edge of expenses? I remember thinking when the construction was happening for the CWGs upgrades, "how the Heck is this little hill going to afford the upkeep on such an expansion?”

Who was the push for the CWG? Was it the City? So was the City then in turn responsible for making the hill, for lack of a better phrase, too big for their britches? And therefore unable to pay for the newer, bigger, faster….? So then should the City not assist in feeding the monster they created?

Just a thought.

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Michael on Jun 16, 2013 at 4:26 pm

"The $3-million chairlift, which the city funded to the tune of more than $1 million, replaced an "asset that was aged.”

YES??? and do you know how people with skills run businesses? They write their assets off over the period of it's lifetime. This means that every yearly budget you set some funds aside, and the end of the asset life you have funds to replace that asset.

It seems to be a virus of incompetence in Whitehorse on this matter? Mount Sima, Northwestel, humane society....the list goes on it seems

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Jane Smith on Jun 16, 2013 at 8:54 am

I might have more sympathy for the money woes of GNSS if they had ever done anything in addition to asking for handouts from various levels of government. I have seen no evidence of grass-roots fundraising, fiscal restraint, or common sense GNSS.

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Trevor the...;) on Jun 15, 2013 at 2:39 pm

City of Whitehorse is a sustainable money drain. There are people in Whitehorse that can't afford a decent place to live nor healthy food to eat. Stop wasting public money on Sima. Let the affluent folks pay their own way.

Thank you!

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Miriam Smith on Jun 15, 2013 at 5:22 am

I am not against the ski hill, over the years my family has enjoyed the facility. However there is a reality to face. First the Humane Society and now GNSS. Being a volunteer organization certainly has it's challenges and rewards. It serves no one to become a financial burden to sustain.

Faro over the years has been hit with many criticism, but in many ways was ahead of its time with both municipal and non-profit relationships. Yes the first time around many things were paid for by the mine, but others during that time were built on volunteer sweat, time and money.

When the mine closed down under the first owner, many non-profits were no longer sustainable no matter how worthy the cause. Many don't realize it, but historically Faro was the first Yukon Community to establish a brick and mortar Humane Society. When it was no longer financially viable for groups such as this plus the ski hill, the gun club and others who had assets and bank accounts – agreements were drafted, inventories taken and signed off in trust to the Town of Faro.

A group of us when we arrived in the late 80's started to see the merits in how these clubs could be re-instated and sustained. That is exactly what was done. As an example Faro Humane Society was re-activated in 1988 and enjoyed many services and volunteer programs in rural Yukon for another 11 years at least.

The Whitehorse Ski hill asset doesn't have to be lost, but neither can it be sustained under the current weight to everyone.

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B&R on Jun 15, 2013 at 1:14 am

While it's great to have a ski hill here, the city taking it over is something that should have happened back when it was an Atco trailer complex with the old lift. And before the snow making. And before the zip lines. And before the earth works on the runs.

We could have supported a small, "economy" version of a ski hill, but now?

Yes, the lift was having issues, but I find it hard to believe these couldn't have been resolved much less expensively than installing a new lift.

And why did we even need a lift? Why not a T-bar? The answer seems obvious, certain people wanted a Cadillac hill in a city without the weather conditions and the skiing population base to support it.

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Disgusted on Jun 14, 2013 at 10:24 am

Mac O, you want to talk about selfish? How selfish is it for a small minority of residents who use this and GNSS to expect every homeowner in this city to support their activity even more so than has been done already?

I don't expect anyone to foot the bill for my hobbies or activities and neither should GNSS or your 'adrenaline sport' skiers.

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B. Foster on Jun 14, 2013 at 8:58 am

@just sayin....seriously? Job number one on ANY ski hill is risk mitigation. Grooming has a pretty clear goal in this regard...it conditions the snow so it's easier for average joe to ski on without breaking a leg. If you don't groom it gets icy / shallow / bare and injuries rise according to the conditions on the hill.

Snowmaking....same deal. Lots of snow, lots to push where it's needed. It's a fairly simple system in general with the greatest investment being in place already...

Open the gates and let 'em fly. That's daft sorry to say. I've said it in comments before the chairlift is likened to a passenger plane by those in the industry as well as those insuring the industry. The chairlift is a big, powerful, potentially nightmarish machine if things go wrong....not the kind of thing that ya just fire up and forget about. All staff must be trained...just like flight crews. They need to know what to do if the lift stops. How to evacuate the lift....bla bla bla....

I didn't mean to ramble on but the number of folks that mouth off without a single clue is truly astounding....it's ridonkulous.

Y'all want some cheese with that whine?

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Mac O on Jun 14, 2013 at 8:47 am

People who don't use it and want the hill gone are selfish and should think of the people who use it and the employees that will lose their jobs. Some people say we should quit whining and go cross country skiing but they forget that down hill skiing and snowboarding is an adrenaline sport and you can't go cross country snowboarding either. The sales in Avalanche beacons will boom and at least Mt. Sima has a team of ski patrol there when emergencies occur. Keeping one of the few major recreational facilities in Whitehorse open is a great investment in tax payers money and closing Sima could create problems for several local businesses as well.

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Wooly Socks on Jun 14, 2013 at 8:41 am

Sima provides a wonderful activity for young and old alike. I hope everything can get resolved. Perhaps looking to Eagle Crest in Juneau as an example of a city run hill?

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Fred Norris on Jun 14, 2013 at 7:44 am

"Stockdale said he'd like to see some sort of public forum held where residents could tell council where they stand on the issue."

Y'all had a bunch of meetings last month, except the public wasn't allowed to attend, remember? Something about the public and the press being "a distraction".....

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Just Say'in on Jun 14, 2013 at 4:38 am

Why is anyone even listening to what the GNSS board thinks? The fact is they don't. They have no idea what they are doing or how they will pay for it. From the start I have said this is a community ski hill not a resort or destination and that is the only way it will run and when they figure that out it will all be good. Cut all the grooming costs and snow making etc. and just open the gates and let people ski have volunteers man the hill and all will be good. You think all the sports in this town operate with paid help....Think again GNSS.

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No accountability on Jun 14, 2013 at 4:05 am

Two comments ...

1. I find it stunning that the Board for the Society has not assumed any responsibility for creating this mess. It was their decisions that resulted in this(according to them) massive debt and financial crisis. Yet nowhere do you see them saying "We were wrong"; rather they arrogantly say it is our problem and present taxpayers with a number of ultimatums and threats.

2. Someone previously commented that there may well be a plan / deal already cooked. The City will assume the property and assets and then a certain local business will then come to the rescue and say "turn it over to us for a lease of $1.00 a year and we'll run it. No cost to you, the taxpayer" ... and this may well have been the plan from the beginning.

Once you sift through all of this you have to be left with saying ... what about "No" don't you understand.

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Charlie on Jun 13, 2013 at 10:48 am

'Stockdale said he'd like to see some sort of public forum held where residents could tell council where they stand on the issue.' Come on Dave, quit with the forums & read the blogs at Whitehorse Star!

GNSS needs to understand simple economics & live within their means. Simply put, budget & don't spend or commit to more than your income. What is with all the run up debts - living in bailout hope land?

HSY has just come through a tough situation & survived; with COW's policy of 50% recovery on their facilities at MMRC, Whitehorse Curling Club is being strangled so why would COW seriously contemplate taking over Sima? Stockdale's criteria for not helping WCC was that they fundraised & made money! Are we missing something here? What is good for the goose is good for the gander. Forget mothballing SIMA, sell the assets, build a Sima 'bend' with traffic donuts & give us something else to gripe about. I am tired of GNSS's whining.

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Northone on Jun 13, 2013 at 10:14 am

It would seem from the comments that there are people who actually want to see Sima fold because they don't personally use it - how selfish. We all pay for infrastructure we don't individually use. Comparisons to other recreational infrastructure are perfectly valid, how much taxpayer money has the Mt. McIntyre centre received over the past 30 years?

I'm also sick and tired of skiing being portrayed as an elite sport for the rich. I am an ordinary working class person whose family likes to ski and I know from experience that outfitting children for a season of hockey is considerably more expensive than for skiing.

Think of what losing Sima will mean: Whitehorse will be far less attractive for Arctic Winter Games, or any winter games of consequence. Young competitive skiers and boarders will have nowhere to train for competition.

Cheering for Sima's demise serves no constructive purpose.

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bobby bitman on Jun 13, 2013 at 8:53 am

Three million bucks for a chair lift was PROBABLY a bad idea. That is $180,000 of the $610,000 they need right there.

Two full time staff for a closed facility?! We are getting a window into the free-wheeling spend-spend-spend mentality that has gone on at Mt. Sima.

Provide a small caretaker's cabin or trailer, and give free rent, plus $500 a month to turn whatever knob needs to be turned once in a while, and to take a walk through the building 5x a week.

Think like a contractor or small business owner. The waste that is STILL being recommended by Mt. Sima is unbelievable and is a good indicator of why they are in this problem in the first place.

I do think the City should take over the assets and work with what we've got in terms of paying off those who are owed money. No sense ditching assets at this point, and bills do have to be paid. Then find a real contractor to run the place.

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Jackie Ward on Jun 13, 2013 at 8:24 am

Umm, no. The city should not take ownership. Everything should be sold and everyone move on. Where would the city get the 1/2 million a year to run it? They can't even provide adequate anything. No snow removal. Bus service that serves no one. A roundabout addiction that is costing us tax payers millions. Stupid cyclists demanding millions so they can drive across the bridge. And so on and so on. Let Hougen run it with his own money if he cares so much about it. Goodbye Sima. I never used you once and I hope there are no hard feelings. No one will miss you. What the city needs to built is another bridge out of Riverdale. You know, something with an actual purpose.

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June Jackson on Jun 13, 2013 at 7:25 am

There are a number of items that annoy me about this issue.. One is the bullying tactics, the absolute arrogance of the Great Northern Ski Society people.. another point of irritation is the GNSS willingness to pick the taxpayer pocket repeatedly without any real information.. "10 days or we're closing" ..just kidding, its really the 30th. $400K.. no..now we want $600K...oh..and we want you to pay all our bills because even though a Society is not supposed to incur debt.. GNSS just ran up debt left and right and wants the government and City to pay their bills..Whoever signed the LPO should get to pay the bill..not people who don't want the facility to begin with.

Its also irritating that this council did NOT say "NO". They are looking for ways to give more money to Sima, without it actually looking like they are going to give money to Sima.

Also, WHY on earth do they keep trying to compare their money pit to CGC? Sima serves a limited amount of people, CGC serves everyone from a swimmer, skater, hockey player, Judo, walkers, seniors, babies..it offers some kind of benefit to every single person in the Territory. 2012 it provided a service to 720,000 thousand people. There is NO comparison to the Mt. Sima money pit.

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