|
|
||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||
|
Schweitzer - An Overview
General Overview of Schweitzer Mountain Ownership: Current ownership is under the umbrella of the McCaw family. Harbor owns and operates a small ski resort in Chelan and Stevens Pass – Day Ski operations. Harbor partnered with InterWest – a ski resort developer that operates Mammoth Mountain in North Central California in the Sierras, Squaw Valley, and Whistler. InterWest’s resorts pull primarily from major metro areas, where typically the travel time from the airports and metro centers is 1 ½ hours.
When Harbor took over Schweitzer, a Selkirk Lodge remodel was their first undertaking. They created a Condotel. Selkirk Lodge was originally built by the Brown Family as a hotel servicing Schweitzer. The original idea behind Schweitzer was as a day ski resort open for limited days during the week (see Schweitzer History). The construction of the original lodge was sub-par. When the second Condo/Rental White Pine Lodge was built, the first sales team had reservations, but no sales. They hired Stan Hatch as the rep, but the atmosphere was not totally Realtor friendly. They sold few units, and eventually partnered with Merry and Tony at Windermere. After coming to an agreement with Stan, Merry and Tony opened their first Schweitzer office in 2001, at which time the team counseled the sellers to convert the 2 BR units to 1 bedroom, because that was what was selling, and sales increased substantially. The rationale was since one bedroom units were moving, this would increase sales, and it did. Eventually the building sold out. The current owners of Schweitzer are anchored by the McCaw family. This group bought out Harbor. Steve Woods is the current CEO. Though the McCaw family has divested of the company that brought them the most income and fame, they are best known for founding, then selling Cellular One (1991 with Southwestern Bell, which then invested in Nextel). The family is known for their business acumen. However, the brother who was most ardent and in tune with moving the family towards its present business undertakings died mysteriously in a hot tub accident The finances of the family are extensive, and is tallied in the billions of dollars. They own Schweitzer free and clear. Schweitzer Mountain Operations The current head of Schweitzer Mountain Operations is Tom Chasse. Schweitzer Mountain Operations is responsible for the rentals, maintenance, and operations. Prior to Tom Chasse, Tom Fortune ran Schweitzer for Harbor. Tom Fortune ran Stevens Pass for Harbor. His background is in resorts that specialize in day skiing. When Tom Fortune left Stevens, Tom Nova took over the helm at Stevens. He also had experience primarily in day ski resorts. It is important to consider that virtually all ski resorts in the west are on state or federal land, and the vast majority of them are geared towards day skiing. In this respect, growth is limited. Even getting benign improvements, such as ski lifts, can take years. Consider that, in comparison to these resorts on leased federal or state land, Schweitzer, with its 7,000 privately owned acres, has much greater opportunities and growth potential, as well as the ability to appreciate in value and improvements. Tom Trulock is in charge of utilities. Schweitzer Utilities Schweitzer owns the Sewer System which services the mountain outright. So, if you want to build on Schweitzer Mountain, you have to go through their auspices and meet their requirements. The builder needs a septic system, and the affluent goes to the pond, which is at (or close) to capacity. To meet demand a new lagoon is being dug. In order to build on Schweitzer, a builder needs to apply for a “will serve” from Schweitzer. There are some lots (and developments) that have not gotten this from the mountain. There are some coming on the market that have. For each unit a builder must pay an average of $9,000-10,000 for a will serve. This is based on a 3 BR 2 bath model average. The Ridge was platted in the 1970s. It was sold to Walleen out of the Brown bankruptcy. This was platted about the same time as Schweitzer Basin Village. The original PUD had assigned density, but no utilities. The big issue was that sewer was installed without approvals. Many properties have closed without water or sewer. When building on the mountain there are issues with DEQ, P&Z, and Independent Highway District. General Overview of the Schweitzer Mountain Community: Schweitzer Basin Village First Schweitzer Basin Village 1st Addition, Schweitzer Basin Village 2nd Addition, and PUD all have issues and questions that need to be addressed with your clients. Schweitzer Basin Village 1st Addition first plat includes Blue Beetle, Red Cricket, and St. Bernard around Mogul. Schweitzer Basin Village 1st Addition was bought from Brown by Fowler and Groesbach (see history). Schweitzer Basin Village 1st Addition includes older houses and condos around original plat and is under the rules and regs of Bonner County, and goes through Bonner P&Z. Has no density assigned, and water is not an issue. These older plats were done before the Comprehensive Plan. With the current Comprehensive Plan, all of Schweitzer Mountain is zoned Recreational. Zoning allows for 12,000 sq. ft. minimum lots. One additional unit can be added with the addition of 3,000 sq. ft. Using this formula, a 30,000 sq. ft. lot can support 7 units:
30,000 sq. ft. 18,000 sq. ft. ÷ 3,000 = 6 additional units Other issues that need to be addressed are:
So, Schweitzer Basin Village is different. It has unenforceable CC&Rs, and density requirements are assigned by the county. There are no architectural requirements. Schweitzer Basin Village Second Schweitzer Basin Village 2nd Addition was also platted under the ownership of Groesbach and Fowler. Schweitzer Basin Village extends out beyond Ullr, and is near Black Bear near other older buildings. The area is loosely defined as everything east of Chapel and includes Slalom to Fall Line above the main road but excludes Wild Flower. All of this was replatted in 1999. PUD – Schweitzer Mountain Community Association – SCMA Normally, for every condo there are two organizations that typical owners will deal with:
SMCA has architectural oversight, with the exception of Schweitzer Basin Village, Schweitzer Basin Village 1st Addition, Schweitzer Basin Village 2nd Addition SMCA gets 1% of all gross incomes for snow plowing, etc. Schweitzer does no plowing. SMCA sponsors half of all events, concerts, and other mountain happenings. SMCA does 100% of grooming. Schweitzer doesn’t groom any trails. (See trail maps) Schweitzer Owned Land (outside the PUD) Inside vs. Outside PUD
Condos Condos in Schweitzer Basin Village 1st Addition must follow County guidelines. These include:
This area is in the replat, is county controlled, and not in the SCMA. Therefore, these do not answer to Schweitzer or the SCMA. One big issue in this area is the lack of parking. Another is snow storage. This area also has the only farm on Schweitzer Mountain. Red Cricket was the first condo in the State of Idaho. Condos inside the SCMA pays Homeowner’s dues and SCMA dues. If a unit is put in the rental pool, they pay 1% of their income to the SCMA. Financing Condos The differences between a condo and condotel. Selkirk Lodge is a Condotel (if it looks like a duck…)
No ranges, ovens, stoves. Needs to be financed locally because these companies understand the process and have experience with their underwriters to get the units financed. This needs to be communicated to buyers. These units are very good for rental income. With one purchase, you buy two units. Rental income is virtually assured because all units are put into a rotating pool. Selkirk is the only condotel on Schweitzer Mountain. To buy a unit in Selkirk, typically 20% down is required with a strong credit score. Loans will normally also have a higher interest rate, but the return to the buyer is much better than other parts of the mountain. It is therefore very important to determine what the client’s use will be. The only changes the owners are allowed are basically paint and carpet. Currently, if other changes are made, such as an upgrade of furnishings, the unit(s) is taken out of the rental pool, though this may change. One parking space is allotted to each owner, but spaces are not assigned. This typically means that during the height of season, there are not enough covered parking spaces. However, Schweitzer will give a space in the main lot. However, even though the owners have two units, only one space is allowed. Currently the upper parking is being used for the construction equipment building Trapper Creek. This lot is listed for $5,000,000.
Annual Parking Pass - $300 White Pine Lodge is a Condo It is still better to have a local lender finance these units because they understand this reality. Most units sell with furnishings. It is very important to have language in your contracts that reflect this. The language is: Furnishings left for the convenience of buyer and has no value White Pine has a Great Room, Two Lake View Hot Tubs, Two main floor bathrooms (mainly for retail), washers and dryers on each floor. Some units also have their own washers and dryers. The swimming pool is available for the units at White Pine, but the amenities at White Pine are not available to the units at Selkirk. Each unit has an owner’s storage locker in the unit. There are non-assigned ski lockers on the main floor. There is additional owner’s storage in the basement garage. There is one car stall per unit with key-coded entrance. There is no requirement for either building to be in the rental pool. It is very important to check the rental possibilities for other condos. It is equally important to check the CC&Rs and HOAs. Restrictions
The ability to rent is a big issue. Having a hot tub is a big issue. Most units have limited rental ability. Some units have hot tubs that only allow home owner, but no renters. Ski In, Ski Out Defined as in an area where intermediate skiers can ski in and out. This means that there are actually very few units on Schweitzer that fit the definition. LID
Applies
mostly to residential lots, but also some condos and homes are still paying
for their LIDs. It is very important to find out if a home, lot, or unit is
in one of these districts. An LID is a lien against property, and must be
cleared by the seller. So, this issue has to be handled. |
||||||||||||||||||||||||||||||||||||||||
|
|
|
Tomlinson Sandpoint Sotheby's International Realty
200 Main Street |
||||||||||||||||||||||||||||||||||||||
