SUMMIT COUNTY — The conventional wisdom is that ski towns may hurt during economic downturns but not as much as elsewhere. Still, edginess is evident in reports from across the West.
In Steamboat Springs, reports the Pilot & Today, cash-buyers are asking for — and getting — discounts on properties as concern spreads about the viability of credit sources.
In Aspen, a development that envisions two large hotels, affordable housing and a new lift — all in a long-neglected area near the city’s downtown district — is in doubt, reports The Aspen Times.
Financial consultant Byron Koste told a task force that the outlook for the development is grim because of the absence of financing. In Vail, rumors have been floating of imminent foreclosure proceedings by Capmark Financial Group against the Vail Plaza Hotel. This is the major hotel located at the town’s middle entrance on the ski-hill side of Interstate 70. The Vail Daily found circumstantial evidence to support the rumor.
Town governments are also tightening their belts in expectation of flat and even reduced revenue.
Vail, for example, is projecting $51 million in revenues next year, compared to $54 million this year. Sales taxes collections are expected to be flat, while real-estate transfer tax is projected to decline nearly 14 percent.
“I’ve got some anxiety, but I don’t think there’s a reason to panic,” said Stan Zemler, the town manager, told the Vail Daily.