Whitehorse Daily Star

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THE ANTE HAS BEEN UPPED – The Great North Ski Society's revelation that it needs another $400,000, bringing its request to $800,000 from the city, is ‘new information,' Rob Fendrick, the city's director of corporate services, said Monday night. The society operates Mt. Sima (above). Patti Balsillie Rob Fendrick

‘We don't have the money,' ski society is told

Officials with the Great Northern Ski Society say their funding request to the city has not changed – despite an administrative report to council that indicates otherwise.

By Stephanie Waddell on March 19, 2013

Officials with the Great Northern Ski Society say their funding request to the city has not changed – despite an administrative report to council that indicates otherwise.

The society, which operates the Mount Sima ski area, requested $400,000 in immediate funding from the city at council's March 11 meeting.

That money was designed to help get it through the next 12 months. The society also asked that a long-term core funding plan be developed.

At last night's council meeting, council was informed via an administrative report that in addition to the short-term cash needed, ".... administration has been informed that an additional $400,000 would be required for start up in the fall of 2013.”

That would make it a full $800,000 the society is asking for in this budget year.

In a statement released this morning, however, the society argued the additional amount was indeed in line with what the society was originally asking for.

The extra $400,000 was brought forward as a "conservative estimate for core-funding required moving forward,” the press release states.

It goes on to note that the long-term funding agreement – including the timing of when it would kick in – would be subject to a number of factors. Those include the results of the winter operation and coming summer operations.

"We have always said the immediate $400,000 could carry us successfully into 2013/2014,” Patti Balsillie, a director with the society, said in the statement.

"We have not changed our original submission – our secondary ask has always been to sit down immediately and begin a conversation about a new funding model.

"Only until we have completed a first full summer season at the hill (estimated as October 2013), will we be able to intelligently discuss future financial needs.

"The additional $400,000 quoted by city administration last night should have been presented as an estimate with the intent that it was submitted.”

The society said it also plans to upload a number of "supporting reference documents” to the Sima website at www.mtsima.com

Spokesman Paolo Gallina stopped short at answering further questions on the matter this morning, however.

He said there will be no further comment from the society until its most recent audited financial documents are available.

In a previous interview, Balsillie said they would likely be available within the next couple of weeks.

Gallina said he would look into whether the email sent to the city detailing the long-term estimate would be made publicly available.

However, he did not respond further to that by press time this afternoon.

Rob Fendrick, the city's director of corporate services, said it would be up to the ski society to release that email.

"It's new information, certainly,” Fendrick told reporters last night of the additional bid for $400,000 from city taxpayers.

Fendrick noted it wasn't clear last week that while the group was looking for an immediate $400,000 to get it through the next 12 months, it was also looking for the extra $400,000 on an annual basis beginning in the fall, making it $800,000 for the year.

As the ski society pointed out, however, that is simply an estimate, and further details will have to be worked out.

The annual amount of $400,000 would be on a declining basis.

Background information on the Sima site states: "Mt. Sima is asking for $400,000 in annual funding on a declining basis, going forward as well as asking council to look at the current funding model to see if there isn't a better way to ensure this facility will be there for future generations.”

The $400,000 shortfall for this year came about due to delays in construction of the summer facility, which opened late.

Officials with the hill have said Mount Sima could close if it does not receive short-term funding.

The request is coming after the ski hill received approximately $3.5 million in funding over the last three years. All but $30,000 came out of the city's portion of the federal Building Canada Fund.

Council is scheduled to have an in-camera discussion on March 27 to look at options for the ski hill.

Councillors Mike Gladish and Dave Stockdale were clear last night that they are not hearing support for the funding from the general public.

Meanwhile, Coun. Jocelyn Curteanu put it simply by pointing out that even if council wanted to provide the cash, it's just not there.

"We don't have the money,” she said.

If those Sima users feel the facility is needed because it does promote healthy living, she added, it should be up to them to find a way to get through the hard times.

"It should be the (Sima) community's responsibility,” Curteanu said.

With a one per cent rise in property taxes amounting to about $320,000, the city would have to hike taxes by 2.5 per cent to get $800,000 if it opted to do so by that route.

That's in addition to the proposed 3.83 per cent tax boost the city is already proposing in its recently released budget.

Meanwhile, Coun. John Streicker echoed the concerns voiced by Gladish and Stockdale about the lack of general public support.

He also pointed out the significant investment that has been put into Sima over the last few years.

Along with installing a new quad chairlift, the hill has moved to full-year operations with its WildPlay adventure park and zipline features installed last summer, albeit the construction was completed late.

The summer operations were put in place to offset the costs of the winter operations

Stockdale took issue with the summer operations. While he supports the winter operations, he said, he's not prepared to look at supporting the adventure park at all.

He also went on to argue the finance issues could be solved if the hill's skiers were willing to pay an extra $100 per month to use the hill.

"That's all it takes,” he said, after noting the $700 he spends on playing golf each year.

Streicker also looked at the situation on a positive note.

Some good first steps are being taken, he said, with the board making information about its request available on the Sima website.

Coun. Betty Irwin is the only member of the previous council to vote against Sima's earlier funding requests.

Last night, she noted it comes down to a question of "how do we want our money spent and for what?”

Mayor Dan Curtis was absent from Monday's meeting, as he was from the March 11 meeting, as he left for France before that meeting.

Comments (25)

Up 1 Down 0

PL on Mar 22, 2013 at 8:31 am

Why is it that Mt. Sima does not run its own ski rental shop. That is right..it is contracted out to SportsLife - A Hougen owned company.

Ski hills often help offset operating costs through ski rentals and sales. In this case the money is not going towards the ski hill - instead directly into the pocket of a local businessman with direct ties to the ski hill.

Just what is a "not for profit society"?

Who's profit? Obviously anyone can show a deficit if you spend enough or pay the board members enough to not show a profit.

I think it time to open the books for public scrutiny, we need to see revenues versus expenditures.

I have a feeling, and it is only a feeling, that there are some well paid board members and some have personal conflicts of interest at the hill.

Any idea if Mt. Sima runs the food concession? Or is that also contracted out?

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sam witherspoon on Mar 22, 2013 at 7:20 am

To Seb Groening

In regards to your post below. Do they have children who use the hill? They may not bring their outside activities to the workplace. They may not lobby in public or even at their city workplace.

"Why is it that not one reporter has asked how the City of Whitehorse can have two of its key management people, Linda Rapp (Head of Parks + Recreation) and Rob Fendrick (Head of Corporate Services) sitting as Directors of the Great Northern Ski Society and yet claim to be oblivious to the workings of Mt. Sima?"

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Seb Groening on Mar 21, 2013 at 1:25 pm

Why is it that not one reporter has asked how the City of Whitehorse can have two of its key management people, Linda Rapp (Head of Parks + Recreation) and Rob Fendrick (Head of Corporate Services) sitting as Directors of the Great Northern Ski Society and yet claim to be oblivious to the workings of Mt. Sima?

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Seb Groening on Mar 21, 2013 at 1:06 pm

Good idea Brent. The 'get a job' solution. Brilliant! The developing world is way ahead of us in terms of promoting child labour. I should have thought of that.

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shenya on Mar 21, 2013 at 8:24 am

Just reading the above comments some ridiculous as always but that's human nature, right?

I like to commend the young people who took the opportunity to compete in the big picture, some awesome skiers and snowboarders who did well in competitions south of Yukon. Congratulations. I only hope that the Whitehorse community will support your efforts.

Great Northern Ski Society-you are a society so try doing some fundraising, get some volunteers. Too sad a recreational activity is in jeopardy because of poor management?

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I've had it on Mar 21, 2013 at 4:19 am

I'd like to see disclosure on how much the board staff are being paid. Both wages and other disbursements.

I think that would be pretty eye opening.

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Fred Norris on Mar 21, 2013 at 3:57 am

Its quite shameful now, isn't it. Using the youth in the manner the GNSS has, claiming the sky is falling and holding the city hostage. Kind of similar to the "Too big to Fail" argument. How about too inept to succeed? In the private sector, if you cant make a profit (or break even at minimum) for your company, there is usually a management change (or 6...?) Maybe it is time for the GNSS to look within.

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Arn Anderson on Mar 21, 2013 at 2:37 am

City wants money to pay for people to play in the snow? Simple, tax the clergy, churches and all religous instituitions within Whitehorse. Moral majority loves to tell us how to live, let their bosses pay some tax.

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Brent Slobodin on Mar 20, 2013 at 4:59 pm

I just checked the user fees and, clearly, they could could go up and spare the taxpayer.

In response to Seb Groening: a job could take care of your desire to use Mt. Sima. Dave Stockdale has resources to golf but he did work for them for many years. Choices and how to pay for them....

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Smells funny on Mar 20, 2013 at 3:20 pm

I smell a six flags amusement park coming to a neighborhood near you...

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north_of_60 on Mar 20, 2013 at 10:46 am

Mt Sima is little more than a scam to keep ski bums employed year round at the taxpayers expense. There's quite a 'colony' of them squatting up there.

Investigate and expose this scam.

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Fundraising Idea on Mar 20, 2013 at 7:48 am

Why don't they run bingos to raise money? From what I have heard, they are well attended and you do come out with a profit. This can also get out members and supporters of the hill to come and volunteer thus showing they want to keep this hill and keep it's costs where they are and by volunteering, it's almost like subsidizing their own lift tickets.

Or they could always go back to the old fashioned selling chocolates to raise some money. Which I also wouldn't mind because I like chocolate almonds.

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DMZ on Mar 20, 2013 at 4:29 am

It is starting to look pretty suspicious, just because the numbers they throw out seem improvised and their communications are so sudden. Obviously the city doesn't have nearly 1 million to give away to a non-profit so what is their end game.

Underlying the whole thing for more than a year has been whispers about Sima selling off country residential and yes, it does look like perhaps they've been studying Jeff Leuhmann's success.

I wasn't that opposed to core funding for Sima, although I think the city is not where it should be coming from. There's a value-added component to providing recreational facilities. I don't get much say in funding for worse things with my tax dollars. I don't care, either, that a few people are collecting a pay cheque to operate the ski hill. Only in the Yukon and in recreation is it somehow sinful to get paid for what you do.

But this whole thing is looking like they're planning for failure of the request so they can look like land development is a last resort. That's where the "businessmen" behind it start to bug me. It's giving recreational ventures a bad name and they're hiding behind enthusiastic youth to do it.

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Bob Graham on Mar 20, 2013 at 1:18 am

Huge investment to date by COW to get facility up & running! Now is the time for it to stand on it's own two feet! People who want to use it, great,but they need to pay appropiate fees for continued use. There is no valid arguement to support tax increases towards a facility only a few have the time or financial resources to use!

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Steven A. Horn on Mar 19, 2013 at 4:35 pm

I no longer live in Whitehorse but it does strike me that Mount Sima should do a lot of private fund raising before it goes to the city. If I were still a Whitehorse taxpayer, I would be more than upset if my taxes were to go up to support what is a private operation.

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WOW! on Mar 19, 2013 at 2:17 pm

H.O.L.Y. C.R.A.P.... You have GOT to be kidding us right? $400,000 PLUS ANOTHER $400,000 to help see them through the year and yet STILL NO full financial disclosure when coming to the table?

"Only until we have completed a first full summer season at the hill (estimated as October 2013), will we be able to intelligently discuss future financial needs."

How about this: Only when you have successfully completed a full season on your own without asking for yet another handout will we be able to intelligently consider giving support of ANY kind.

Any funding prior to that (or at all really) is nothing but a foolish move by the City...and a sure loss of votes in the next election.

Lift tickets can run you upwards of $50-$100 PER DAY down south - and that's LIFE! Make the users pay for services they "need."

Shame on Sima, the Board and those a part of this process who are so selfishly asking for this kind of support. Shame on you.

City of Whitehorse: it is not too late to stop the crazy train you know. All you have to do is learn the art of just saying NO.

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Seb Groening on Mar 19, 2013 at 1:27 pm

I am pleased to hear that Dave Stockdale can afford the $700/year to play golf.

Fortunately for him, he has spent a lifetime earning an income, paying off debt and now collects a substantial pension.

He can afford it. Most youth cannot.

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Jackie Ward on Mar 19, 2013 at 1:03 pm

I suggest this organization be investigated. Something is really starting to stink here. The first comment nailed it. This seems to be a soft coup. There's no way this place is losing that much money. Unless its being deliberately done to force a bankruptcy so the elite can come in and buy it up for pennies on the dollar. I would ask city hall to do their homework but that's not even an option anymore. Especially city council. I don't know why we even elect them anymore. And I hope someone who is on council reads this. You were elected to serve us. Not take marching orders from the city. You cut cut cut essential services. Raise raise raise taxes. How much longer will this charade go on? I hope you realize you are taking food out of families mouths by constantly raising taxes. Not because the city is growing, it's because the people at the COW and council have no clue what they are doing. Pathetic. The town has spoken. Let this hill close. But if it does, it will be very interesting to see who comes forward to "save" the day.

Up 1 Down 0

June Jackson on Mar 19, 2013 at 9:34 am

Just putting my 2 cents in.. I agree with everyone else. Don't give Mt. Sima any more taxpayer money. This council is cutting my services left and right, already jacking taxes.

The City has to get out of the banking business.. Taxpayers don't like it and can't afford it.

Who is currently making money out of Sima? As CSI says, follow the money. Someone's making money or it would have closed like any other business that can't make it.

I hope this council has some ***** and says no to the hand outs.

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bobby bitman on Mar 19, 2013 at 9:23 am

pound sand, I believe it was my post you are referring to, so I will repost it here:

"How much do you want to bet that within a year this facility is going to be put to tender to be given away to ‘the person or organization with the best plan for operating it'. Millions of dollars worth of equipment, buildings and land will be obtained for free or close to it by someone. Then, they will come back saying they need re-zoning to make it economic, because they will be selling housing lots adjacent to the hill. (Meadow Lakes Golf Course/Jeff Lumen was given a large parcel of land by the City in order to expand the golf course from 9 holes to 18. He promptly applied to re-zone that land residential, never even cleared a tree to put in more golfing holes, and he proceeded to sell housing lots.)

And so it will go until every dollar possible has been milked from the situation at the expense of the tax payer who will never see a dime back. That is what my crystal ball tells me is going to happen here.

Who will the hero be who obtains the millions in assets and land in exchange for ‘the plan', which will quickly be ‘discovered' to be unworkable, requiring profitable ‘changes to the plan'?

It is the Yukon way for those who have been here long enough to see the game. All you need is a whole lot of nerve.

I hope that rather than the above scenario unfolding, the city itself sells the assets and/or does their own development there."

Up 1 Down 0

bobby bitman on Mar 19, 2013 at 9:14 am

"Paolo Gallina, Marketing & Communications Manager | 668-4557 ext. 4."

Mount Sima has their own personal 'Marketing and Communications Manager', on extension 4!! What is going on? Paolo is oh-so-carefully deciding what information the public will be privvy to. Paolo used to work for Outside the Cube.

Control the message, do not say anything that is not authorized as part of the carefully constructed plan. "Gallina said he would look into whether the email sent to the city detailing the long-term estimate would be made publicly available."

Guess what? The public deserves to know exactly what is going on, in full, and NOW.

I am suddenly extremely irritated with this organization, not just opposed to more funding.

Up 1 Down 0

Brice Carruthers on Mar 19, 2013 at 8:25 am

Mt. Sima is a money pit. PERIOD. Warren Buffett couldn't make that hill profitable! There are so many problems with the hill: limited runs, poor snow conditions, windy at the top, many days lost to cold weather, expensive lift tickets and not enough population base to support it. Then the management decided to double down on stupid with the addition of a summer "adventure park" where you can pay over $100 to have the poop scared out of you with a zip line that goes too long and too fast. Does this mesh with the current seniors demographic that visits the Yukon. This isn't Whistler people! My street gets ploughed once a year, which is about how often I visit Mt. Sima. I'd rather get my street ploughed twice a year and not visit Mt. Sima at all!

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Frank Silva on Mar 19, 2013 at 8:20 am

Your darn right the general public doesn't support funding this facility, why should we??? This is a private business that should not be using City dollars to continually support itself. Where are the volunteers??? Where are the fundraising efforts??? Mt. Sima at the very least should be trying to support itself but I don't see any evidence of that. No... no way... the City should not be providing them with anymore funding. I can't believe they even had the gall to come back to City Council and ask for MORE money when they've already been given in excess of $3.5 million. It's disgusting!

Up 1 Down 0

PL on Mar 19, 2013 at 7:09 am

Pretty simple math.

Stockdale hit the nail on the head. User pay.

After all the money that has been dumped into this place for infrastructure surely they can support O&M with membership dues.

How about getting some volunteerism going on the hill. Seems like everyone collects some form of pay cheque up there.

Dawson City supports their hill as does Watson Lake.

Perhaps Mt. Sima is too big for its "snow pants". Get back to the core reason for the hill. Enjoyment and exercise.

Too big - too fast - unsupportable in its present form.

Up 0 Down 0

Elitist's pound sand on Mar 19, 2013 at 7:06 am

They should have said....We will not give you anymore of the peoples money Vs. "can't"

Read a post at CBC suggesting this is a tactic to force the hill into bankruptcy so the "elites" can gobble up the hill all private like @ 10 cents on a dollar. I thought hey...good point!

I think also too it is important to duly note the "country residential" land grab to allegedly fund the hill with its profits. They have ALREADY asked for this too.

Personally I feel everything this group does is politically motivated and uses manipulation of events to bully us out of our taxes and "scarce" land we are permitted by land pimps to "use".

Forget the hill for a tad shall we?

When did the CoW become a bank/special interest appeasement autocracy?

repeat...To ALL special interest groups trying to milk our taxes to fund your "vision", if your generic idea is ACTUALLY supported by the community...we buy your bake sale stuff...donate a portion of our "disposable income"...donate stuff for your group(s) to sell raffle off whatever.

AND volunteer our time to help you in your goals.

That said folks...if those things are not enough/successful, then I guess the community MAY NOT actually support your "vision"? Like all dreams that are unrealistic...the vision/costs you had/have will AND should remain yours and yours alone.

Since the gear on that hill BELONGS to taxpayers...WHEN that hill goes under?

We the people sell it off...cut into scrap etc. Not just give it away.

Oh yeah to the "leaders" of CoW...enough of taxation sodomy OK!

Our arses are hurting and have been since the 1990's.

Rather than study a studied to absolute death topic as racism...study the idea of fiscal responsibility and leave the fleecing of folks thoughts/speech to the PC Crusaders at the UN.

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