Committee Report CONSENT CALENDAR
February 27, 2018
The Committee on Municipal and County Government to which was referred HB 1702,
AN ACT relative to the management of the Gunstock
Area. Having considered the same, report the same with the following resolution: RESOLVED, that it is
INEXPEDIENT TO LEGISLATE.
Original: House Clerk Cc: Committee Bill File COMMITTEE REPORT
Committee: Municipal and County Government Bill Number: Title: relative to the management of the Gunstock Area. Date: Tebrilak;3A272012it! Consent Calendar: CONSENT Recommendation. INEXPEDIENT TO LEGISLATE
STATEMENT OF INTENT
This bill as drafted would jeopardize the future of Gunstock and would have given the Belknap County Convention authority to control Gunstock's finances. The Gunstock Area Commission was created by special legislation in 1959. The purpose of the five member commission is to "operate, maintain, develop, improve, and promote the Gunstock Area in Gilford, New Hampshire. Gunstock provides a significant economic boost to Belknap County in particular and the Commission has for years managed this valuable asset, benefitting the Lakes Region and the State.
Vote 13-0.
Rep. Jane Beaulieu FOR THE COMMITTEE
Original: House Clerk Cc: Committee Bill File CONSENT CALENDAR
Municipal and County Government HB 1702, relative to the management of the Gunstock Area. INEXPEDIENT TO LEGISLATE. Rep. Jane Beaulieu for Municipal and County Government. This bill as drafted would jeopardize the future of Gunstock and would have given the Belknap County Convention authority to control Gunstock's finances. The Gunstock Area Commission was created by special legislation in 1959. The purpose of the five member commission is to "operate, maintain, develop, improve, and promote the Gunstock Area in Gilford, New Hampshire. Gunstock provides a significant economic boost to Belknap County in particular and the Commission has for years managed this valuable asset, benefitting the Lakes Region and the State. Vote 13-0.
Original: House Clerk Cc: Committee Bill File COMMITTEE REPORT
COMMITTEE: /97 /` C' BILL NUMBER: //e/'0-2- TITLE: 3arz,e,,,j
DATE: c).2427// CONSENT CALENDAR: YES NO El
0 OUGHT TO PASS Amendment No. El OUGHT TO PASS W/ AMENDMENT
INEXPEDIENT TO LEGISLATE
INTERIM STUDY (Available only 2nd year of biennium)
STATEMENT OF INTENT: 1) 4414 _e --7/Xe Oixd 61/77:uld kliffe /W/i/v2 4164/ (2Y- ("Xive-424- a-aiknz-ZL- 74 / ../ gaf' fifJ /d I,/ 41 ( /11 .21WAY,LA 71--) /1„; ./4td 0_1/ /
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COMMITTEE VOTE: / 3 -
RESPECTFULLY SUBMITTED, • Copy to Committee Bill File • Use Another Report for Minority Report Rep. For the Committee Rev. 02/01/07 - Yellow Voting Sheets HOUSE COMMITTEE ON MUNICIPAL AND COUNTY GOVERNMENT
EXECUTIVE SESSION on HB 1702
BILL TITLE: relative to the management of the Gunstock Area.
DATE: February 20, 2018
LOB ROOM: 301
MOTIONS: INEXPEDIENT TO LEGISLATE Moved by Rep. Beaulieu Seconded by Rep. DeSimone Vote: 13-0
CONSENT CALENDAR: YES
Statement of Intent: Refer to Committee Report
Respectfully submitted, A6a-Zkic.-z_, Rep Mark McLean, Clerk
HOUSE COMMITTEE ON MUNICIPAL AND COUNTY GOVERNMENT
EXECUTIVE SESSION on HB 1702
BILL TITLE: relative to the management of the Gunstock Area.
DATE: D(0.c) (
LOB ROOM: 301
MOTION: (Please check one box)
CI OTP kITL CI Retain (18' year) CI Adoption of Amendment # CI Interim Study (2nd year) (if offered)
Moved by Rep. Seconded by Rep. a Cikete, Vote: 13-0
MOTION: (Please check one box)
0 OTP 0 OTP/A ❑ ITL 0 Retain (1st year) 0 Adoption of Amendment # 0 Interim Study (2nd year) (if offered)
Moved by Rep. Seconded by Rep. Vote:
MOTION: (Please check one box)
CI OTP 0 OTP/A CI ITL 0 Retain (Pt year) CI Adoption of Amendment # CI Interim Study (2nd year) (if offered)
Moved by Rep. Seconded by Rep. Vote:
MOTION: (Please check one box)
❑ OTP ❑ OTP/A 0 ITL 0 Retain (18' year) 0 Adoption of Amendment # CI Interim Study (2nd year) (if offered)
Moved by Rep. Seconded by Rep. Vote:
CONSENT CALENDAR: YES NO
Minority Report? Yes JNo If yes, author, Rep: Motion
Respectfully submitted: Rep Mark McLean, Clerk
STATE OF NEW HAMPSHIRE 1/5/2018 10:31:14 AM OFFICE OF THE HOUSE CLERK Roll Call Committee Registers Report 2018 SESSION
M&C
Bill #:18 Title: otc- 6 PH Date: / 13 / Exec Session Date: ea / t?--0 / P-3
Motion: Amendment #:
MEMBER YEAS NAYS
Belanger, James P. Chariman 13 Sterling, Franklin W. Vice Chairman i McCarthy, Frank H. DeSimone, Debra L. 7.- Chase, Francis G. Matthews, Carolyn L. 3 McLean, Mark Clerk ul Gauthier, Francis Stone, Brian J. Tripp, Richard P. Migliore, Vincent Paul Carson, Clyde J. 5 Tatro, Bruce L. b Beaulieu, Jane E. Treleaven, Susan GS Vechted Gitik Bordenet, John g Meader, David R. ci Gilman, Julie D. to Josephson, Timothy (1 Rand, Steven IV TOTAL VOTE:
Page: 1 of 1 Hearing Minutes HOUSE COMMITTEE ON MUNICIPAL AND COUNTY GOVERNMENT
PUBLIC HEARING ON HB 1702
BILL TITLE: relative to the management of the Gunstock Area.
DATE: February 13, 2018
LOB ROOM: 301 Time Public Hearing Called to Order: 1:30 p.m.
Time Adjourned: 4:00 p.m.
Committee Members: Reps. J. Belanger, Sterling, McLean, F. McCarthy, DeSimone, Chase, Matthews, Gauthier, Tripp, Migliore, Carson, Tatro, Beaulieu, Treleaven, Bordenet, Meader, Gilman, Josephson and Rand
Bill Sponsors: Rep. Fraser Rep. Plumer Rep. Howard Rep. Abear
TESTIMONY
* Use asterisk if written testimony and/or amendments are submitted.
*Rep. Valerie Fraser - prime sponsor - introduced and supports bill. Read from written testimony. The bill modifies the powers of the commission that operates the Gunstock resort in Belknap county.
Rep. Marc Abear - co-sponsor- supports the bill. This bill would be good for Belknap county. Since 1959 Gunstock has been its own body politic, but it has had financial difficulty that has required bailout from the county. The county was never compensated for the bail out. This bill would give the county delegation oversight of the resort and allow milestones to be set to move the resort towards financial health.
Q. Carson- Has the county delegation been polled on this? A. Abear- Yes. 11 out of 18 have expressed support for the bill.
Q. McCarthy- Why is the county held responsible for Gunstock's financial woes if the resort is its own body politic? Is there a legal requirement? A. Abear- It is unclear that we are required by law to bail them out, but this is something we have always done in the past. The county does have a Memorandum of Agreement (MOA ) with the commission that runs the resort.
Q. Rand- Doesn't have two body politics create a conflict? A. Abear- If this bill passes there will only be one, and that will be Belknap county. The commission will still exist but not as a body politic. If the county is financially responsible for the resort then they should be the body politic.
Q. Treleaven- How are the Gunstock commissioners chosen? A. Abear- Each commissioner serves 5 years. The positions are advertised and the successful candidates are chosen by the delegation.
Rep. Dennis Fields - Sanbornton - opposed the bill. The Gunstock commission should not be messed around with. Do good can come from the delegation micromanaging the resort. They are not experts at operating a ski facility and this bill would take flexibility away from the operation.
Q. Bordenet- Is the county financially responsible for Gunstock? A. Fields- We have the MOA. We do the bonding but they pay it back. Rep. Frank Tilton — Laconia — opposed the bill. Some things to consider: 1) The bill does not speak for the delegation. He was unaware of the poll of the delegation. 2) The county has a very successful relationship with the delegation. 3) The delegation appoints the commissioners, so it already has a say in the leadership of the commission.
The commission was set up as it was to be certain that the commissioners were nonpolitical. They generate the revenue. This insulates the business from changes in the political winds. It is essential given the inconsistent nature of the ski business,
Q. Carson- Has Gunstock had to refinance in the past? A. Tilton- Yes. Q. Carson- Was this ever passed to the taxpayers? A. Tilton- No.
Rep. David Huot — Laconia — opposed the bill.
Joel Weinreke — supported the bill. Why does Gunstock get a $600,000 seasonal start-up loan? They are poorly managed and there needs to be oversight.
Rep. Norman Silber — Gilford — supported the bill. The Gunstock enabling legislation spells out what the commission must turn over to the county. The MOAs are not part of the enabling legislation. The only borrowing that the commission can do is on the back of the county. The commission has held back on payments that statute says they must pay to the county. When the last MOA expired the commission decided that they wanted to pay the county nothing. This means that the taxpayers are on the hook for the money and any easing of the tax burden that might be gained from revenues from the resort is lost to the county residents.
James Baer — opposed the bill. Gunstock is a cash cow that the county wants to milk. It generates revenue because it is well run. The county delegation does not have the expertise to run a ski resort. C. Treleaven- The 1959 act requires payment to the county when revenue targets are met.
Ross Dumain — opposed the bill but chose not to speak.
Robert Durfee — Gunstock Commission — Provided and spoke to written testimony. Wanted to correct perceived "mis-statements" in prior testimony: 1) Since 1991 the commission has negotiated a revenue anticipation note with the county. This has been paid back every year. 2) Since 1998 there has been a MOA and the commission has made payments to the county to help alleviate the tax burden. It expired in 2017. We negotiated a new MOA for a flat $175,000 plus 3% of profits. 3) Every time the commission has gone to the county to bond for an improvement it has been paid back in full.
Q. Gauthier- Would you like to be able to borrow money on your own? A. Durfee- In the long term we would like to be able to secure loans without the county.
Q. Tripp- Does Gunstock only pay $7000 in property taxes? A. Durfee- Gunstock is a county entity. It therefore doesn't have to pay property tax. It makes a voluntary contribution to the town of Gilford to the amount of $7000.
*Alicia Millham — Laconia — opposed the bill. Gunstock is a huge economic boon to the region. The delegation has made huge cuts to the county budget and see this as a revenue stream. They are short sighted. Haggling and inefficient operation will be the only result if this bill passes. Alan Posnack — Alton — opposed the bill. Gunstock has become a go-to resort. It is managed like a business and has been kept free of the political winds. There are benefits to Gunstock that go beyond finances. You cannot tie a fluctuating ski business to a fixed payment to the county.
Peter Millham — Laconia — opposed the bill. The five commissioners are very engaged and money is handled very carefully. The goal is to expand and improve then operation without going to the taxpayers.
*Scott Wilkinson — President, Board of Directors of the Gunstock Ski Club - opposed the bill. Provided and spoke to written testimony.
Rep. Timothy Lang — opposed the bill. The budget process in Belknap county is in shambles. This bill is a sledgehammer being used as a tool in the negotiations between the commission and the county.
Rep. Raymond Howard — Alton, part of the MOA negotiating team — supported the bill. The debt the county assumed in 2001 when the MOA first came into existence was paid off by the taxpayers of Belknap county. Gunstock belongs to the entire county. When it was bailed out it wasn't just the skiers that paid up. It was all the taxpayers in the county. If we get into a few bad years the county taxpayers will take a real hit.
Q. Beaulieu- What is the value of Gunstock? A. Howard- $12-14 million. C. Beaulieu — You own a nice piece of property. C. Howard- Yes, we do.
Respectfully submitted, 2)1 Rep. Mark McLean Clerk HOUSE COMMITTEE ON MUNICIPAL AND COUNTY GOVERNMENT
PUBLIC HEARING ON HB 1702
BILL TITLE: relative to the management of the Gunstock Area.
DATE: -Aib(L f 1 3 e:Di .52
ROOM: 301 Time Public Hearing Called to Order: -) Time Adjourned: go,
(please circle if present)
Committee Membe Re J. Belan erlin cCarth P e imoir Chase, Ma t w uthie Stone arso eaulle Bo den-et, 5, 1-1-C-Can,- sephs'on 'and a • 9 Bill Sponsors: Rep. Fraser Rep. Plumer Rep. Howard Rep. Abear
TESTIMONY
* Use asterisk if written testimony and/or amendments are submitted. H Bi702 Public Hearing 13 Feb 2018 Relative to: the management of the Gunstock area.
*Rep Valerie Fraser — prime sponsor — introduced and supports bill. Read from written testimony. The bill modifies the powers of the commission that operates the Gunstock resort in Belknap county.
Rep Marc Abear — co-sponsor — supports the bill. This bill would be good for Belknap county. Since 1959 Gunstock has been its own body politic, but it has had financial difficulty that has required bailout from the county. The county was never compensated for the bail out. This bill would give the county delegation oversight of the resort and allow milestones to be set to move the resort towards financial health.
Q. Carson- Has the county delegation been polled on this?
A. Abear- Yes. 11 out of 18 have expressed support for the bill.
Q. McCarthy- Why is the county held responsible for Gunstock's financial woes if the resort is its own body politic? Is there a legal requirement?
A. Abear- It is unclear that we are required by law to bail them out, but this is something we have always done in the past. The county does have a Memorandum of Agreement (MOA ) with the commission that runs the resort.
Q. Rand- Doesn't have two body politics create a conflict?
A. Abear- If this bill passes there will only be one, and that will be Belknap county. The commission will still exist but not as a body politic. If the county is financially responsible for the resort then they should be the body politic.
Q. Treleaven- How are the Gunstock commissioners chosen?
A. Abear- Each commissioner serves 5 years. The positions are advertised and the successful candidates are chosen by the delegation.
Rep Dennis Fields — Sanbornton — opposed the bill. The Gunstock commission should not be messed around with. Do good can come from the delegation micromanaging the resort. They are not experts at operating a ski facility and this bill would take flexibility away from the operation.
Q. Bordenet- Is the county financially responsible for Gunstock?
A. Fields- We have the MOA. We do the bonding but they pay it back.
Rep Frank Tilton — Laconia — opposed the bill. Some things to consider:
1) The bill does not speak for the delegation. He was unaware of the poll of the delegation. 2) The county has a very successful relationship with the delegation. 3) The delegation appoints the commissioners, so it already has a say in the leadership of the commission.
The commission was set up as it was to be certain that the commissioners were nonpolitical. They generate the revenue. This insulates the business from changes in the political winds. It is essential given the inconsistent nature of the ski business,
Q. Carson- Has Gunstock had to refinance in the past?
A. Tilton- Yes.
Q. Carson- Was this ever passed to the taxpayers?
A. Tilton- No.
Rep David Huot — Laconia — opposed the bill.
Joel Weinreke — supported the bill. Why does Gunstock get a $600,000 seasonal start-up loan? They are poorly managed and there needs to be oversight.
Rep Norman Silber — Gilford — supported the bill. The Gunstock enabling legislation spells out what the commission must turn over to the county. The MOAs are not part of the enabling legislation. The only borrowing that the commission can do is on the back of the county. The commission has held back on payments that statute says they must pay to the county. When the last MOA expired the commission decided that they wanted to pay the county nothing.
This means that the taxpayers are on the hook for the money and any easing of the tax burden that might be gained from revenues from the resort is lost to the county residents.
James Baer — opposed the bill. Gunstock is a cash cow that the county wants to milk. It generates revenue because it is well run. The county delegation does not have the expertise to run a ski resort.
C. Treleaven- The 1959 act requires payment to the county when revenue targets are met.
Ross Dumain — opposed the bill but chose not to speak.
Robert Durfee — Gunstock Commission — Provided and spoke to written testimony. Wanted to correct perceived "mis-statements" in prior testimony:
1) Since 1991 the commission has negotiated a revenue anticipation note with the county. This has been paid back every year. 2) Since 1998 there has been a MOA and the commission has made payments to the county to help alleviate the tax burden. It expired in 2017. We negotiated a new MOA for a flat $175,000 plus 3% of profits. 3) Every time the commission has gone to the county to bond for an improvement it has been paid back in full.
Q. Gauthier- Would you like to be able to borrow money on your own?
A. Durfee- In the long term we would like to be able to secure loans without the county.
Q. Tripp- Does Gunstock only pay $7000 in property taxes?
2 A. Durfee- Gunstock is a county entity. It therefore doesn't have to pay property tax. It makes a voluntary contribution to the town of Gilford to the amount of $7000.
*Alida Millham — Laconia — opposed the bill. Gunstock is a huge economic boon to the region. The delegation has made huge cuts to the county budget and see this as a revenue stream. They are short sighted. Haggling and inefficient operation will be the only result if this bill passes.
Alan Posnack — Alton — opposed the bill. Gunstock has become a go-to resort. It is managed like a business and has been kept free of the political winds. There are benefits to Gunstock that go beyond finances. You cannot tie a fluctuating ski business to a fixed payment to the county.
Peter Millham — Laconia — opposed the bill. The five commissioners are very engaged and money is handled very carefully. The goal is to expand and improve then operation without going to the taxpayers.
*Scott Wilkinson — President, Board of Directors of the Gunstock Ski Club - opposed the bill. Provided and spoke to written testimony.
Rep Timothy Lang — opposed the bill. The budget process in Belknap county is in shambles. This bill is a sledgehammer being used as a tool in the negotiations between the commission and the county.
Rep Raymond Howard — Alton, part of the MOA negotiating team — supported the bill. The debt the county assumed in 2001 when the MOA first came into existence was paid off by the taxpayers of Belknap county.
Gunstock belongs to the entire county. When it was bailed out it wasn't just the skiers that paid up. It was all the taxpayers in the county. If we get into a few bad years the county taxpayers will take a real hit.
Q. Beaulieu- What is the value of Gunstock?
A. Howard- $12-14 million.
C. Beaulieu—You own a nice piece of property.
C. Howard-Yes, we do.
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