FROM:     MIKE ESLER  PRESIDENT & CEO  GARIBALDI AT SQUAMISH INC.

DATE:     NOVEMBER 6, 2007

RE: NOVEMBER 2, 2007 ARTICLES 

WB official voices concerns about GAS plan (Question)        

WB executive concerned over GAS (Chief)

I would like to take this opportunity to respond to the comments of Doug Forseth, the senior vice president of operations of Whistler Blackcomb. 

Mr. Forseth “fears it’s too heavily weighted toward selling real estate than toward providing a quality tourism experience”.  He further states that “We don’t see this resort as a threat to our business, but where I would have the greatest concern is what I understand is a real estate development that goes with the resort.”

Any rational observer would find these comments most perplexing and ironic,   particularly given that Intrawest effectively invented and championed the concept of “warm beds” in order to have a successful resort, a model which virtually every all-seasons ski resorts follow. 

To be clear, the real estate component of the subject resort and others, fall under the provincial governments All Season Resorts Guidelines.  These guidelines govern all such projects on Crown Lands in the province.  Under the guidelines the proponent has to “earn out” real estate bed units,  by installing lift capacity and constructing ski terrain, as well as skier services and the necessary other infrastructure that accompany such development.   Our preliminary capital cost budget for the ski area infrastructure alone is approximately $250 million (which is phased over a 15 – 20 year build out period).  A commitment of this magnitude is hardly a “mask for real estate development”.  

To put things in perspective the Comfortable Carrying Capacity (CCC), i.e. the ski capacity of the mountain, for Whistler/ Blackcomb is approximately 30,000.    It is my understanding that the current bed unit count at the Resort Municipality of Whistler is approximately 57,000 and there are plans to increase it.  This represents a ratio of 1.90 times the number of bed units (real estate) to ski area capacity.  On the other hand the Garibaldi at Squamish Mountain Master Plan and Resort Base Master Plan is designed for a ski area capacity of 15,250.  Its proposed bed unit count of approximately 22,500 bed units, represents a ratio of bed units to ski area capacity of approximately 1.50 times, significantly less than that of Whistler Resort.   

Furthermore, it is important to note that unlike Whistler Blackcomb and most other B.C. ski areas – all seasons resorts, Garibaldi at Squamish has to pay for virtually all of  services infrastructure such as the highway interchange, sewer and water, and roads.   Without the appropriate amount of bed units (within the All Seasons Resort Guidelines) one simply cannot afford to pay for such infrastructure and amenities necessary to offer a world class destination all-season destination resort experience required  to build upon Squamish’s reputation as Canada’s “Outdoor Recreation Capital”.  

Another false assertion by Mr. Forseth is that that GAS proposal has been around for 20 years and hasn’t been built, as a result of “geographic area, the terrain aspect and the snow conditions”.  This again is simply untrue.   The change in government in 1991, coupled with the unbelievably onerous Environmental Assessment process, and First Nations issues are primarily the roots of the delays.   The proponent is very comfortable, with the snow conditions and quality of terrain, coupled with the fantastic location and setting in the Sea to Sky corridor. The majesty of its natural terrain will make Garibaldi at Squamish a unique and truly special skiing experience supplemented with world class all- seasons resort amenities.

Securing various approvals for a ski resort in British Columbia requires homework and refinement and GAS is working very closely with the Environmental Assessment Office and all other agencies to ensure our resort proposal fulfills expectations.    It should be remembered that the soon-to-open Revelstoke Mountain Resort took 20 years as well to secure such approvals.  Two decades of investment in this process is a testimony to the commitment and drive of our shareholders to uphold our obligations under the EA and public approval process.   

The path to doing so involves engaging the public to ensure that they have input into the way the proposed resort, to ensure that the resort provides the community with a sustainable way to develop its natural and economic assets to create long-term growth and quality jobs closer to home, and to build upon Squamish’s reputation as Canada’s “Outdoor Recreation Capital”. 

As the SE Group states very clearly, Whistler Blackcomb has nothing to fear and everything to gain from Garibaldi at Squamish and the “synergy” it will create for BC’s Sea-to-Sky region.  

Let us not forget the immense benefits to Squamish as noted in the project’s socio-economic study.   These include 15,000 direct jobs during construction and another 2,400 full-time jobs during operations.   These are quality jobs, close to home – something that will be very important to the community for the long-term diversification of the economy.  

The Environmental Assessment process is to commence shortly, after which point there will be another open house and public comment period.   In the interim we invite your readers to visit our forthcoming website www.garibaldiatsquamish.com in the next week.