Mount Sima will close Monday as the hill's operators – the Great Northern Ski Society – begin the dissolution process.

Following a noon board meeting Wednesday, it was announced the society will wind things down, closing the hill after the long Canada Day weekend so no more debt is incurred.

The society will also sell off its assets to pay off its bills before it formally dissolves.

The decision comes two days after city council turned down the business plan proposed by the society that would have seen the city provide $610,000 in funding to pay off creditors and keep operations going at the hill.

It was estimated the society would need a further $268,000 each year following to stay in the black.

Council also voted to pay off the remaining $192,221 owed on the $3-million quad chairlift purchased in 2011.

The city had already contributed $1.6 million to the purchase, with funding redirected from the city's portion of the federal Building Canada fund.

The city also provided $1.3 million in 2012 to take the hill from a seasonal winter operation to be open throughout the year with the addition of an adventure park and ziplines.

Sima's financial struggles became evident in March, when it approached the city seeking $400,000 in immediate cash along with a long-term plan that was anticipated to include $400,000 on an annual basis.

The city didn't provide that funding, and two closed-door Sima Summit meetings followed, with stakeholders looking at ways to deal with the situation.

In that same period, the Yukon government offered to pay off the debt owed on the chair provided the hill opened for the winter season.

What followed was the business plan put forward to council, seeking the $610,000.

Without the cash, society officials said, they would be forced to dissolve the non-profit society, which has been running the hill for more than 20 years, and cease operations.

Yesterday, the board voted to do just that, arguing they were left with no other option.

"I don't think it's where any of us wanted to be,” Lee Vincent, the ski society's secretary, said in an interview Wednesday afternoon.

She described the mood among board members as "disappointed” and "frustrated”.

The society, it argued in a statement, has responded to requests from the city to rally community support, come up with a business plan and consider future opportunities.

However, it is out of money, and volunteer energies are depleted.

"We have just run out of options,” Vincent said.

She stressed the focus of the board as it reaches its end is to protect the assets of the hill and address outstanding debts.

In addition to the chairlift, those debts include $170,000 owed to local creditors and a further $72,000 owed to the WildPlay Element Parks franchise, under which the adventure park and ziplines fall .

Council voted Monday to pay off the debt on the chairlift provided the title for the equipment moves over to the city.

Vincent said the board will accept the city's offer provided that the other assets being sold off is enough to pay creditors.

Over the next two days, she said, work will be done to confirm the assets' value.

It's unknown how long it will take to formally end the society.

Vincent stressed the board wants to go about it in an orderly fashion but get it done as quickly as possible.

In its statement, the society noted the "fantastic groundswell of support to keep the hill alive, and it's now time for the community and stakeholders to take a leadership role.”

A new model of operation would be needed if the hill is to reopen.

Lee said board members think that by stepping aside, it will be easier for others to move forward.

"We've taken it as far as we can,” she said.

Hopefully, a new group or perhaps a government body will come forward and do something different to make the hill a success, she added.

Those with bookings at Sima after July 2 will be contacted to discuss alternatives.

See related story, society letter.