The Issues - Fiscal Folly

• Costs of Road: The Ministry of Transport stated that the traffic volumes predicted by the proponent would require a 2 lane paved road and would therefore cost upwards of $2million/km ($70million in total). This does not  include annual road maintenance and avalanche control costs for 18 or more direct avalanche chutes up the Jumbo Valley. projected maintenance cost of $7500 - $10,000/km and avalanche control of $150,000/yr minimum.
  - (Ministry of Transportation, Aug 24,1999 ref.74565)
  
• “The Canadian Ski Council is predicting a 22% drop or higher in numbers of domestic skiers in the next 15 years.  It’s risky to rely on international visitors to fuel that growth.”
  - Prof. Simon Hudson University of Calgary. Calgary Herald Oct 15,2004
  
• “The most basic reality is that if a ski area is going to increase its visits, it is going to do so at the expense of other (existing) ski areas.”
  - Hal Clifford, author, Downhill Slide
  • JGR’s projections include that 30% of their skier  visits will be drawn from  existing local ski resorts.
    
• To break even, the resort must generate 300,000 skier visits/year in a declining market. Panorama, after 25 years of operation, has had a maximum of 200,000  skiers visits/year
  
• “It appears doubtful that the (Jumbo) resort can achieve economic break-even…”
  - Snow Engineering Feasibility Assessment, March 1999

The Canadian Ski Council is predicting a 22% drop or more in numbers of domestic skiers in the next 15 years
- Canadian Ski Council 2003

While promoters are free to risk the money of their investors, the region’s existing residents and taxpayers should not have to pick up the tab for Jumbo Glacier Resort. Yet that is just how a substantial part of of Oberti’s grand plan would be financed, according to the 2005 District of Invermere's Development Services Report to Council:

“In reviewing some of the socio-economic and market analysis, the proposed resort does not pose a significant financial gain for the Columbia Valley as a community. The costs associated with creating the required infrastructure to adequately service 7000 bed units will certainly dictate the housing prices demanded and thus create an exclusive community. The resort concept plan includes a self-sufficient community that will ensure that all the needs of its residents and visitors are provided within the resort itself.”

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“The District will not see any substantial direct benefit from the proposed development, but resort visitors will utilize existing infrastructure that requires improvement. The resort, as proposed, will be entirely self-contained and will encourage visits to remain at the resort base. In particular, the District will see an increase in vehicular traffic on Athalmer Highway and Panorama Road. The developer should fund improvements to these roads.

“Other direct impacts on the District that should be reviewed in further detail include the potential impacts on the housing market within the community. As seen anecdotally with Panorama Mountain Village, Invermere accommodates over 90% of the employees that work at Panorama. This impact has reduced the rental accommodation for potential permanent residents within the community.

“In conclusion, Jumbo Glacier Resort will impact the Columbia Valley in general and Invermere in particular. Land use will be impacted from availability of rental housing to governance. The costs associated with these additional strains on the community at large will have to be absorbed.”

- 2005 District of Invermere Development Services Report to Council

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