Tom Benson, WildPlay Element Parks' co-founder and CEO, says his company will be taking a hit with the sudden closure of Mount Sima set for Tuesday.

Just how much of a hit remains to be seen, he told the Star this morning.

On Wednesday, the Great Northern Ski Society (GNSS) – which operates Sima – announced it will dissolve the society and close the hill, selling off its assets to pay off outstanding debts.

The news comes after city council refused to provide the $610,000 the society had sought to pay off debts and keep the hill operating.

It was just a little more than a month ago that the WildPlay Monkido Aerial Adventure Park opened for the season, its second season at Sima.

"We're pretty saddened,” Benson said in an interview from Victoria.

Having spent time in Whitehorse, he said, he knows what a valued asset Sima is to the community.

WildPlay has worked with the GNSS amid its financial struggles since last year. This year, representatives worked out an amended agreement with the society.

It sees WildPlay directly operating its park (normally the franchise owner operates WildPlay parks).

The profits from the operation of the park go to WildPlay to pay down the $72,000 debt it's owed by the GNSS for franchise fees and the like from last year.

Yesterday, Lee Vincent the society's secretary, praised WildPlay for its work with the society to deal with the situation, calling WildPlay "an incredible partner” to work with.

While his company is taking a financial hit with the closure of the hill, Benson said, day passes for the park over the long weekend will be offered at half-price so residents can get out and enjoy the park one last time before things shut down.

The 20 to 30 people who purchased a season's pass can get a full refund at the park this weekend.

If they can't make it there before it closes, they can also mail their passes to WildPlay for a full refund.

"People have shown a lot of faith,” Benson said of those who purchased a full season pass.

His company has no problem reimbursing the pass buyers in full despite being open for a partial season, he added.

Benson expects WildPlay will be among the list of creditors who are repaid once the hill's removable assets are sold off, but he noted the ski society is working to deal with that now and "we're not banging down the door.”

Rather, Benson expressed more disappointment that WildPlay will have to shut its doors in Whitehorse.

It's unfortunate, he said, that the GNSS hasn't had the opportunity to create the market presence needed to keep the hill running.

"We're just bummed their business model didn't work for them,” he said.

As for the approximately half-dozen people employed at the hill working at the aerial park, Benson said one of their main jobs is focused on protecting the structures that make up the park, and that will still have to be done.

Meanwhile, Mayor Dan Curtis continues to stress that the city simply doesn't have the cash the hill needs, and that there must be an overall community situation for Sima.

"We just don't have $600,000 or $800,000 for any society,” he said.

He again added his hope another group or individuals may step forward with a way that could see the hill operate under a different model.

The city, he said, has shown its own buy-in for the long-term plan with council's vote Monday to pay off the $192,221 owed on the chairlift to ensure creditors aren't coming in and taking it apart piece by piece. As a condition of that funding, though, the city wants title to the lift.

Sima supporters have argued the city funds the Canada Games Centre, which also provides (CGC) sport and recreation value to the city – as they argue Sima does.

Curtis countered that on Wednesday. He noted the city-owned CGC has an average of 3,000 visits per day to the facility offering a number of recreational options and brings in more sports tourism. To compare the two isn't really fair, the mayor argued.

To have the city take over Sima entirely would mean paying union wages and taking on a whole new range of costs that it can't afford, Curtis said.

The business plan put forward by the GNSS estimates the cost of running the hill at $952,000 annually.

Speaking only to the $610,000 the GNSS was asking for, Curtis said that additional amount would represent a three per cent property tax hike.

While he remained firm that the city cannot take on funding to keep the hill going, he praised the GNSS for its extensive work over the last two decades.

At the territorial level, cabinet spokesman Matthew Grant said there have been no changes to the Yukon government's commitment to pay for the chairlift debt (by reimbursing the city) on the condition the hill opens for the 2013/2014 winter season.

The situation has Rick Karp, president of the Whitehorse Chamber of Commerce, wondering about local creditors who are still waiting to be paid to the tune of $170,000.

He noted many have focused on the debt owed on the chairlift with the city option to pay that off. However, there's been little mention of local suppliers who are owed for several months' work, he pointed out.

Karp stressed this is especially concerning with the recent downturn in retail sales and in the mining sector.

Local businesses, he said, do their best to be reasonable, but they have now gone months in some cases without a payment from the GNSS.

Despite the decision to close the hill and dissolve the society, Karp said the issue really hasn't been resolve.

He noted that if something comes forward, the hill may not be closed for long.

"We need this resolved,” he said.

Meanwhile, user groups are also likely sorting out the impact of Wednesday's announcement on their activities.

"It means we have to walk,” said local paraglider Trevor Mead-Robins.

On Monday night, Mead-Robins appeared before council emphasizing Sima's value as a recreational facility.

While the hill doesn't need to be open for paragliders to use it, he noted the chairlift provides a convenience which allows for perhaps more flights in the same amount of time than he would otherwise be able to take.

He also acknowledged the hard decisions all parties have been faced with in dealing with Sima.

"It's a difficult situation all around,” he said.

While no one wants to lose Sima, he said, no one wants to throw money to the hill without a long-term plan.

Maybe, he said, this needs to happen for a solution to be found.

Like many, he noted his hope that a new way of operating the hill can be found.

Mead-Robins noted his passion is for paragliding and that he also operates his own business.

He also said he'd be happy to sponsor the hill, be a paying member and perhaps provide ideas should there be a new effort to get the hill going in the future.