/^ 



269 



average effective 

 lessor/area gross lease rent 



GRFS 2.4% 



H.R. 1527 2.4% 



British Columbia province (25 areas) 1.4% 



British Columbia Parks (5 areas) 2.0% 



Alberta National Parks (4 areas) 2.0% 



Mt. Tremblant - Quebec Province 0.07% 



Silver Mountain (Idaho) 0.0% 



Wachusett Mountain, Massachusetts 2% 



New England (anonymous) 2.0% 



Deer Valley (Utah) 1.25%of lifts only 



Sundance (Utah) GRFS 



As you can see, the rates Proposed by H.R. 1527 are significantly higher than any 

 "comparable" we could find where the lessor does not own or invest in the mountain 

 or base facilities. Further, as ski area revenue growth nationwide has been 

 exceeding the annual Consumer Price Index, and is expected to continue to do so. 

 more and more ski areas will enter into the 2.75% and 4% brackets, so the effective 

 rate should increase above the current 2.4% estimate . 



The only lease situations we could find where effective rates were slightly higher 

 than GRFS were one area in Washington State and several areas in Vermont. 

 However, in both those cases the State builds or owns buildings, parking lots, roads 

 or other facilities which are part of the lease arrangement. In short, more than a raw 

 land lease is involved. Further, the lease tenure in Vermont is 60-99 years versus 

 30-40 years with the Forest Service, and is a true lease which is freely transferrable 

 and not revocable. In addition, the fee rate is a contractual item which cannot be 

 changed by the Legislature until the leases expire, which in most cases runs well 

 into the middle of the next century. 



It is also worthwhile to note that many States and communities, and to a lesser 

 degree, private corporations, make their land available for skiing at a subsidized, or 

 heavily discounted rate. And, as previously mentioned, some States and units of 

 local government own and operate their ski facilities... usually at a loss or break 

 even scenario, at best. 



These State and private subsidies indicate that arguments can be made that public 

 land should be made available for skiing free of charge. While we are not 

 advocating such a position, and are indeed proposing fees that are higher than most 



