By MIKE FAHER
LIGONIER — Seven Springs Mountain Resort will pay $10,000 annually to operate the ski area at Laurel Mountain, state documents show.
Under a lease with the state Department of Conservation and Natural Resources, Seven Springs also will hand over additional cash based on annual skier visits – as much as $15,000 if Laurel Mountain attracts more than 21,000 skiers.
The cash amount, though, is relatively low when compared to the potential economic benefits for the area when Seven Springs reopens the dormant Westmoreland County ski area.
Another possible perk is Seven Springs’ ownership of the sprawling Laurel Mountain Village housing development in Jenner Township, Somerset County.
“The potential is there,” said Dorothy Shandor, the longtime secretary/treasurer of Jenner Township.
Seven Springs administrators said on Nov. 11 that they had signed a 10-year lease to operate Laurel Mountain, which sits on state park land.
This week, state officials released a copy of the agreement.
It requires Seven Springs to hand over an annual rental payment of $10,000, though that fee will not kick in until “commencement of the ski operation.”
Seven Springs spokeswoman Anna Weltz has said it is too early to tell when that might happen because administrators must determine the extent of renovations needed at Laurel Mountain.
The commonwealth will be making its own investment, with $6.5 million in capital budget funds available for improvements to state-owned property at Laurel Mountain. But DCNR spokeswoman Chris Novak said officials are “not far enough along in the process to know exactly what’s going to happen as far as improvements.”
All that is certain is that there will be no skiing at Laurel Mountain this season.
When operations resume, Seven Springs also will be required to pay DCNR an additional amount determined by how busy Laurel Mountain is.
Skier visits totaling 15,000 to 18,000 in a season will result in a $5,000 payment, the lease shows.
If there are 18,001 to 21,000 visits, the state’s charge is $10,000. And the fee rises to $15,000 for more than 21,000 visits in any given season.
Given the uncertainty of Laurel Mountain’s reopening date, and the fact that there may be future adjustments to the annual $10,000 base fee based on changes in the Consumer Price Index, it is difficult to tell how much Seven Springs may pay over the life of the lease.
But after Laurel Mountain’s previous operator fell prey to economic difficulties, it is clear that state officials simply are happy to have what they call a new “concessionaire” for the resort.
“We are pleased to be working closely with Seven Springs to return skiing to Laurel Mountain as a great outdoor recreation opportunity for nearby residents and visitors,” Novak said.
She added that Laurel Mountain “is an important contributor to the robustness of the economies of nearby communities.”
That could be especially true in Jenner Township. Laurel Mountain Village housing development is not part of the ski area or the state park, but Seven Springs now owns many undeveloped lots in the village and could rejuvenate that area.
“At this time, we have not addressed any plans for those lots, as we have been focusing on the ski facilities,” Weltz said.
But any progress at Laurel Mountain Village would be enthusiastically received by Jenner Township officials.
The township is doing its part to encourage that progress.
Plans call for a water-storage tank to be built for the village, though private developers would be responsible for any water-line extensions.
Also, Shandor said the village’s sewage-treatment plant will be shut down, since a planned public sewer line will be servicing the area. Jenner Area Joint Sewer Authority will take over that line.
