The State of Vermont through the Vermont Department of Forests, Parks and Recreation leases public lands to private entities for the purpose of operating ski areas. Currently there are seven ski area leases in effect that allow private entities to develop and operate recreation facilities on state forest and parks land. All Vermont ski area lease annual lease fees are based on percentage of lift line (i.e., facility based) within the lease area and ticket sales, as well as a percentage of all sales from restaurants, shops and concessions operated within the lease area to form the annual lease payments. In the decades since the leases were originally signed, the dominant ski industry revenue model has evolved away from one based solely on single lift ticket sales to incorporating multi-resort seasons passes, and other recreational uses, whereas land lease fee formulas under the contracts are still based largely on lift ticket sales. Review and analysis of the current industry practices and methods as relates to the lease payment provisions for each of the seven ski area leases is required to provide transparency in how the lessees are calculating lease payments and ensuring the State is receiving full payment for the use of the leased premises.
