POWDERHORN RESORT — Big names in the Colorado ski and sports industry bought a small, relatively unknown ski area Thursday for a bargain price.
Former Vail Resorts executive Andy Daly and his partners in a new corporation, Ken and Tom Gart, had the high bid of $1.4 million for the Powderhorn Resort along with a more than 700-acre parcel of nearby land that could be developed into a golf course and home sites.
“We really believe Powderhorn is a wonderful gem that has been undercapitalized for a number of years. We want to bring back skiing expertise and capital,” Daly said as he was swarmed by well-wishers following his successful bid on a ski resort he admitted is one of the few in the state at which he has never skied.
The Gart brothers of the powerhouse Colorado-based sports corporation The Gart Cos., accompanied Daly to the auction and took part in fevered corner-of-the-room negotiations with each other and the sellers during the first and second rounds of bidding. Bidding for the trio, Daly jumped in on the third round and bought up the ski area and the undeveloped land to the south. An inn and restaurant, the foundation for a new condominium complex and lots around the resort went to other individual bidders.
The Garts, whose family has been in the sports retail business in Colorado for three generations, would not comment on what part they will play in the ski area. They disappeared into the crowd while Daly welcomed handshakes and backslaps following the auction. Ken Gart deferred any comments to Daly. Daly referred to the Garts as “real estate partners.”
Daly has been part of the Colorado ski industry since he took a job at Aspen Highlands in 1970. He was president and chief executive of Vail Associates Inc. before it became Vail Resorts. During his time as president, the company acquired Keystone and Breckenridge, Heavenly in California and Wyoming’s Grand Teton Lodging Co.
Daly left Vail Resorts in 2002 to start an investment company. He said he started a new company called Powderhorn Partners to acquire Powderhorn.
Daly’s and the Garts’ acquisition of the struggling ski area bought jubilation to a ski lodge jammed with more people than on a good powder day.
Local officials, former ski area employees and neighbors of Powderhorn came out on a day when the stock market tanked to see what the fate of the beloved local ski area would be and if the rumors sifting around Mesa County in the past week — that Daly was bidding — were true.
“This is very important to the community that someone with some real capital can help out here,” said former U.S. Rep. Scott McInnis, who said he came to observe, not bid.
The entire auction brought in just more than $2 million. Previous co-owner Steve Bailey, who is retiring, was all smiles after the auction.
“It’s been a delightful run,” he told the crowd about owning the area for 13 years, several of which were money-losing years.
Daly said he plans to make some small improvements to lifts and snowmaking equipment and to add a tubing park before this winter’s ski season. The ski area includes four lifts and 1,600 skiable acres and attracts about 75,000 skiers annually.
Vail Resorts in April 2010 paid $31 million to buy the Garts’ share of Specialty Sports Venture, owner of Colorado Ski & Golf, Bicycle Village and dozens of equipment and rental shops in mountain resorts.
The deal marked the end of the Garts’ retail empire that started in 1928 and at one time included the Sports Castle building near downtown Denver.
Nancy Lofholm: 970-256-1957 or nlofholm@denverpost.com
