<font face=“Times New Roman” size=“3”>
</font><p style=“margin: 0in 0in 0pt; line-height: normal; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto; mso-outline-level: 1;”>Jay Peak’s tram can’t run before
$4.5M upgrades</p><font face=“Times New Roman” size=“3”>
</font><p style=“margin: 0in 0in 0pt; line-height: normal;”><img width=“26” height=“26” alt=“http://www.gannett-cdn.com/-mm-/1e79114a509f8a356cd870e0b61afb1330b6da3a/c=95-0-840-745&r=1024×1024&r=26&c=26×26/local/-/media/2016/02/12/Burlington/Burlington/635908933108830434-DSC03345.jpg” src=“data:image/png;base64,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×0pOJef84NcDipbnr4aK5WzsjqEs7R38jCGeYO7GEbACpxxjtjtUi30rKGNvbNkZ3MnJ9zWHbk/2fac9ph/48Kv27t5EfzN90d/ari3FaHLVSc2j/9k=” border=“0” v:shapes=“Picture_x0020_6” />Jess
Aloe, Free Press Staff Writer 6:42 a.m. EDT May 23, 2016</p><font face=“Times New Roman” size=“3”>
</font><p style=“margin: 0in 0in 0pt; line-height: normal; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto;”>The tram at Jay
Peak Resort makes its way up the mountain for summer tourists on Wednesday
August 5, 2009.(Photo: Free Press file)Buy Photo</p><font face=“Times New Roman” size=“3”>
</font><p style=“margin: 0in 0in 0pt; line-height: normal; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto;”>Jay Peak’s
iconic aerial trams need $4.5 million worth of work – including overhauling
the arms that attach the cabins to the cables above – before the
state will allow the system to operate this summer.</p><font face=“Times New Roman” size=“3”>
</font><p style=“margin: 0in 0in 0pt; line-height: normal; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto;”>The repairs
are a large expense amidst uncertainty about the resort’s future
after the Securities and Exchange Commission and the state filed charges
accusing owner Ariel Quiros and chief executive officer Bill Stenger of massive
fraud. The SEC said Quiros and Stenger misused $200 million from the EB-5
program, which allows foreign nationals to gain U.S. residency if they
invest $500,000 in projects that create jobs in economically
depressed areas.</p><font face=“Times New Roman” size=“3”>
</font><p style=“margin: 0in 0in 0pt; line-height: normal; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto;”>On Thursday,
Michael Goldberg, the federal receiver appointed to oversee Jay Peak in
the wake of the SEC accusations, said he was planning to file a
motion in federal court by Monday to gain approval for the expense.</p><font face=“Times New Roman” size=“3”>
</font><p style=“margin: 0in 0in 0pt; line-height: normal; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto;”>"It kind
of sucks that has to happen now," Goldberg said Thursday, shortly
after flying back from Burlington, where he was meeting with Jay Peak
subcontractors to discuss money owed to them by the resort.</p><font face=“Times New Roman” size=“3”>
</font><p style=“margin: 0in 0in 0pt; line-height: normal; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto;”>Jay Peak Resort
president Bill Stenger looks out over the Northeast Kingdom as he rides down
from Jay Peak on the resort’s aerial tram on Monday, November 19, 2012. (Photo:
GLENN RUSSELL/FREE PRESS, GLENN RUSSELL/FREE PRESS)</p><font face=“Times New Roman” size=“3”>
</font><p style=“margin: 0in 0in 0pt; line-height: normal; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto;”>Records
obtained by the Burlington Free Press show the state’s concerns over the
condition of the tram began as early as last year, when the state Passenger
Tramway Board brought in Doppelmayr, an international company that manufactures
ski lifts, to provide an engineering assessment.</p><font face=“Times New Roman” size=“3”>
</font><p style=“margin: 0in 0in 0pt; line-height: normal; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto;”>Last June,
Doppelmayr’s president, Mark Bee, wrote a
letter to Stenger, saying the tram had been carrying too
much weight at once since 1966, due to a mistake in the original operating
manual.</p><font face=“Times New Roman” size=“3”>
</font><p style=“margin: 0in 0in 0pt; line-height: normal; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto;”>Bee recommended
Jay Peak reduce capacity on the tram, which the resort did.</p><font face=“Times New Roman” size=“3”>
</font><p style=“margin: 0in 0in 0pt; line-height: normal; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto;”>"Of
greater concern to us is the condition of the carriages," Bee wrote in his
letter. "To our knowledge there are no records to indicate that the
carriages have been subject to regular and thorough [non-destructive testing]
inspections."</p><font face=“Times New Roman” size=“3”>
</font><p style=“margin: 0in 0in 0pt; line-height: normal; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto;”>The carriages
connect the cabins to the cables running up and down the mountain. Bee’s letter
recommended Jay Peak perform a thorough inspection of the carriages before
allowing the tram to carry passengers.</p><font face=“Times New Roman” size=“3”>
</font><p style=“margin: 0in 0in 0pt; line-height: normal; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto;”>Stephen
Monahan, who oversees the tramway board, said he wasn’t sure if the
absence of records indicated a lack of testing or a lack of
documentation. He said he began insisting on more formal record-keeping when he
took over the ski lift safety board about two years ago.</p><font face=“Times New Roman” size=“3”>
</font><p style=“margin: 0in 0in 0pt; line-height: normal; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto;”>Monahan added
that discussions about upgrading the tram began before he took over, but wasn’t
sure exactly when his organization began expressing concerns to the resort.</p><font face=“Times New Roman” size=“3”>
</font><p style=“margin: 0in 0in 0pt; line-height: normal; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto;”>J.J. Toland,
the director of communications for Jay Peak, said the resort has done every
test the state asked of the ski area.</p><font face=“Times New Roman” size=“3”>
</font><p style=“margin: 0in 0in 0pt; line-height: normal; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto;”>In most cases,
the thorough inspections recommended by Bee involve complete disassembly of the
carriages, but Doppelmayr offered interim solutions that, combined with daily
inspections, allowed the tram to run for the 2015-2016 season.</p><font face=“Times New Roman” size=“3”>
</font><p style=“margin: 0in 0in 0pt; line-height: normal; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto;”>Monahan
emphasized he would not allow the tram to run if his inspectors had safety
concerns, and if Jay Peak did not begin the $4.5 million in carriage overhauls,
as well as electronic upgrades, he would not allow the lifts to run
for the summer season.</p><font face=“Times New Roman” size=“3”>
</font><p style=“margin: 0in 0in 0pt; line-height: normal; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto;”>Toland said
the resort flew in a Swiss technician to conduct non-destructive testing last
year and found no corrosion or anomalies.</p><font face=“Times New Roman” size=“3”>
</font><p style=“margin: 0in 0in 0pt; line-height: normal; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto;”>Shortly after
receiving Bee’s letter, Stenger wrote to Monahan assuring the state that Jay Peak
was planning an electrical system upgrade and a carriage overhaul for the
2016-2017 ski season.</p><font face=“Times New Roman” size=“3”>
</font><p style=“margin: 0in 0in 0pt; line-height: normal; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto;”>Before Jay Peak
was able to finalize plans to do the needed work, the SEC filed
its fraud complaint, freezing the resort’s assets and placing control
in the hands of a Miami federal court.</p><font face=“Times New Roman” size=“3”>
</font><p style=“margin: 0in 0in 0pt; line-height: normal; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto;”>Michael
Goldberg, a court-appointed lawyer in charge of all operations at both Jay Peak
and Q Burke, speaks with the Free Press before a news conference at Hotel
Jay. (Photo: RYAN MERCER/FREE PRESS)</p><font face=“Times New Roman” size=“3”>
</font><p style=“margin: 0in 0in 0pt; line-height: normal; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto;”>The resort is
just beginning normal spring maintenance now, Toland said, which should be
complete by June 15. Once the work is done, the state will conduct an
inspection after which, Toland said, the resort will begin running the
tram as a scenic ride.</p><font face=“Times New Roman” size=“3”>
</font><p style=“margin: 0in 0in 0pt; line-height: normal; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto;”>The electronic
upgrades and carriage overhauls will take place over the next 12 months, he
said.</p><font face=“Times New Roman” size=“3”>
</font><p style=“margin: 0in 0in 0pt; line-height: normal; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto;”>"The tram
is definitely an icon of Jay Peak and maintaining it and maintaining its ride
safety is of paramount importance to us and the state of Vermont and the
tramway board," Toland said. "The Passenger Tramway Board is a pretty
rigorous organization – because you’re putting people in the sky.”</p><font face=“Times New Roman” size=“3”>
</font><p style=“margin: 0in 0in 0pt; line-height: normal; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto;”>Contact Jess
Aloe at jaloe@freepressmedia.com or 802-660-1874. Follow her on Twitter
at www.twitter.com/JessAloe</p><font face=“Times New Roman” size=“3”>
</font>