Spirit Mountain Will Not Reopen Until Fall
DULUTH, Minn. – Spirit Mountain announced Wednesday that they will be postponing their reopening until fall due to their current financial situation.
Spirit Mountain officials say the only way to open back up this winter is if the cash-strapped city of Duluth hands over $350,000 before winter revenue at the Mountain starts rolling in again.
This information comes from a budget resolution that councilors will take up at the next council meeting on Tuesday, May 26, after Memorial Day.
The resolution also states that if Spirit Mountain were to remain closed through the upcoming winter season, the city of Duluth would be obligated to pay up to $2.6 million of Spirit Mountain’s outstanding debt, season pass refunds, payroll and accounts payable that it would not be able to pay.
“In addition, the city would retain its current responsibility to finance $500,000 per year in debt service on the Grand Avenue Chalet from tourism taxes. Spirit Mountain has been hit harder than other ski resorts in the United States because it is both government owned and government operated and therefore ineligible for the Paycheck Protection Program that is keeping most resorts afloat this summer,” the Statement of Purpose reads in the resolution.
The Spirit Mount Recreation Area Authority Board of Directors wrote in a message on the business’s website, “The Spirit Mountain Board of Directors, in consultation with the City of Duluth, made the determination that Spirit Mountain will not open for the 2020 Summer season. With mounting unknowns of confidence in the economy, questions on consumer spending habits, potential virus rebounds, and lack of financial support options, it is deemed most appropriate for us to continue with our conservation mode and open for the winter 2020 – 2021 season.”
Spirit Mountain says this decision will affect weddings, banquets, the Adventure Park, campground, disc golf, mountain biking, the mountain biking program, Bike Duluth Festival, and Outerbike.
According to the news release, all staff has been furloughed or has had their hours reduced significantly.