Tim Harty, The Business Times 

It’s like the difference between renting a home and owning it, Powderhorn Mountain Resort General Manager Ryan Schramm said of the reason Pacific Group Resorts Inc. acquired majority ownership of the resort from The Gart Companies earlier this month.

Renters don’t usually make improvements to homes, because they don’t see a dime from the home value’s appreciation if the owner sells the home.

PGRI entered a long-term lease in fall 2018 to serve as Powderhorn Mountain Resorts’ operator, but expectations it will invest in improvements to the property aren’t going to happen without a return on investment. Now, as majority owner, the incentive is there to go forward with significant investments.

“For us, that’s really what it kind of comes down to,” Schramm said. “We’re able to invest in something that we own the majority of.

“I think that was part of some of the original negotiations, when we were talking about taking over operations for them all those years ago. It’s always been part of the conversation. PGRI would want (an ownership stake in) the resort at the right time.”

And Gart Capital Partners understands that, which is why it accepted a smaller ownership stake.

“They still had some obligations to invest in the property, and it made more sense to them to make those types of investments along our side if they are equity owners, so that they can benefit in those investments beyond just normal property management, compensation essentially,” Gart Properties Executive Vice President Evan Gart said. “So, it incentivizes them to make much more significant infrastructure upgrades to the property, so that they can benefit from that appreciation, equity value.”

Both owners will benefit from a more vibrant Powderhorn Mountain Resort.

In turn both can play to their strong suits.

For Gart Capital Partners, that’s developing real-estate. And it is focused on building more starter homes or tiny homes in a price range of $150,000 to $200,000. It has built six, and Evan Gart said plans call for another 50-plus.

“It’s just a great match between the recreational offerings and residential offerings that really no other resort can offer,” Gart said. “Real estate is extraordinarily expensive at a resort, and to get a purchase price as low as a hundred-thousand to two-hundred-thousand dollars is a real differentiator and will only put Powderhorn on the map more.

“When you can cut their entry-level costs by 75 percent, you’re giving them a pretty great reason to skip those other resorts and come to our resort.”

For PGRI, its strong suit is growing and enhancing the resort that it operates.

“We certainly want to take a look at some larger capital projects that would not have been possible in the old ownership structure,” Schramm said. “Obviously the first one that everybody talks about is the West End lift. That was installed in 1972. It’s time for us to discuss a possible replacement for that. We’ve been working on that a little bit with the Forest Service and with engineering and local partners.”

PGRI also will look to expand snow-making capability, something it brought to Powderhorn in 2020, and add it to more runs.

Beyond that, Schramm said, “We want to take a look at sustainable growth and facilities. Do we need to look at parking, additional parking? There’s bathrooms. There’s food and beverage. Determine where are the true needs and go from there as to where it grows. It’s grown exponentially over the last few years, and it’s been a wonderful dream.”

Speaking of dreams, Schramm addressed PGRI’s long-term goals and said everything will be guided by its Mission Affordable mantra.

“I think that Powderhorn can be a fantastic ski area. I think it can be a fantastic regional destination,” Schramm said. “I don’t think that Powderhorn wishes to compete with the Aspens and Vails of the world. 

That’s not our’s not our plan. That’ not our mission.

“We want to be the locals’ choice for everyone in the Grand Valley to come and enjoy, to have that as a resource and stick around a long time. There are a lot of invested people that live here. We’ll leave our focus there.

”We want to be a really, really great ski area. I don’t necessarily think that anyone wants Powderhorn to become the next Aspen or Snowmass. I don’t think that’s something in the cards, right? That’s not what it’s there for. That’s not what its culture really is all about.”

Even with the development of small homes at the resort, Schramm thinks Powderhorn will always be accessible to the local clientele it has always drawn to the slopes.

Schramm said of the tiny homes,“I think it’s probably a little bit more inclusive and accessible than, you know, trying to buy property at just about any other ski resort in Colorado, right? It is designed to be different. It’s designed to be a little bit more locally oriented and local focused.”