The profit in Base Village | AspenTimes.com

The profit in Base Village

It is apparent that Intrawest/Skico have not revealed all of their financial estimates regarding Base Village. Therefore, here are some figures I have come up with after total build-out.CondosRevenue: 585 condos x $800,000 average selling price = $468 million.Costs: 585 condos are comprised of 630,000 square feet of space x average building costs (assuming economies of scale) of $200 per foot = $126 million.Gross profit from condo sales therefore = $468 million -$126 million = $342 million.Commercial CoreRevenue: 63,000 square feet at $50 per year average rent is $3,150,000 per year gross rents, less landlord operating costs (assume 18 percent) = $2,583,000 per year in gross rent profits.Ticket Sales & LessonsRevenue: Assume a 200,000 bump in skier tickets sold at an average price after discounts of $50 for $10 million per year. Assume 10 percent of those ticket sales result in a lesson, averaging $300. 20,000 x 300 = $6 million per year.Total Skico increased operating profit: $16 million per year.Additional development costs Building costs of commercial and retail core of 63,000 feet x $250 per foot = $15,750,000 Build-out cost of hotel (assuming average of 600 square feet per room x 200 rooms = 120,000 square feet plus common area of say, 10,000-130,000 square feet x $250 per square foot) = build-out costs of about $33 million. On-mountain improvements $12 million for childrens center $10 million for gondola $18 million for three new high-speed lifts Employee housing: 100 units of 800 square feet each at $175 per unit = $14 million Underground garage = $25 millionTotal additional costs = about $128 millionSummary Gross profit from condo sales less total additional build-out costs = $214 million in profit over the full life of the project.This represents a profit of 36.5 percent after build-out. Is it any wonder that the largest possible project is the real desire of Intrawest/Skico? There seems to be little concern, on the developers part, for the diverse impacts on our roads, our views, our village scale, our unique Snowmass quality or anything else!The entire thing is a real estate/commercial venture pure and simple. Please show us hard facts about your costs vs. profits and about the bonanza revenues you project for our town from this giant project.Phil DesmondSnowmass Village32-year resident andformer Town Council member

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