Management and members at Wintergreen Resort are responding to criticism in the wake of recent financial troubles.
Money issues first came to light earlier this month, with the resort citing unusually warm winter weather as the main culprit behind lower than expected profits. At the same time, resources are strained even further by pending financial liabilities from a recent audit by the Virginia Department of Taxation. That audit questioned the initial valuation of a 2008 conservation easement tax credit, suggesting it was overvalued by 75 percent. A pending settlement will impose even more constraints on Wintergreen's already tight budget. On top of it all, Bank of America terminated Wintergreen's $3 million credit line in light of its recent financial difficulties.
To address those issues, Wintergreen Partners Inc. (WPI) - a group of 1,700 property owners that manages the resort - has developed plans they hope will solve short and long term financial issues.
The resort will lay off 12 employees and institute new operating procedures, saving an estimated $1.5 million annually. WPI members were also asked to pay 2013 dues three months ahead of schedule, providing Wintergreen with cash to continue running day-to-day operations. Those dues are expected to generate $3-3.5 million.
WPI Board of Directors Chairman Allen Bennett says the organization will rely largely on its member base to pull through difficult times.
"We're blessed with 1,700 smart members," Bennett said. "We have a tremendous amount of resource to call on to make sure we understand the problem, we understand our options to fix the problems, and we'll deal with them accordingly."
The resort is planning to launch a campaign to increase business during non-winter months. Based on restructuring efforts and a new business model, the resort also says future mild winters should have little to no impact on the overall financial stability of the resort.
