The poster child for EB-5 funding at New England ski areas, Jay Peak may be encountering issues.
Monday, July 28, 2014, NewEnglandSkiIndustry.com
According to a VTDigger article, immigrant investors in Jay Peak Hotel Suites, LP are upset with a decision to dissolve their investment and convert it into unsecured loans. According to VTDigger, Jay Peak President and CEO Bill Stenger attributed the uproar to "oversight in not reaching out."
The latest issue comes three months after Jay Peak announced it would delay construction of Phase 2 of the Stateside Project, reportedly due to funding issues.
One year earlier, Jay Peak postponed the installation of the Powerline High Speed Six Pack, also reportedly due to funding issues.
In 2007, the Vermont EB-5 Regional Center was rechartered. Under the EB-5 program, a foreigner can invest $1 million in an approved United States business (which must then create jobs), in exchange for a green card. With the Northeast Kingdom labeled a Targeted Employment Area, the minimum investment is cut in half to $500,000, making participating rural businesses such as Jay Peak more attractive.
The current ownership group has been in place at Jay Peak since 2008. Its first large EB-5 funded project, the Tram Haus Lodge, opened in December of 2009. A $27 million indoor water park opened two years later.