A Northern neigbor using EB5 ambitiously also.

[Treeskier]

Like Sugarbush, Jay Peak's ambitious use of EB5 was posted : http://www.youtube.com/watch?v=WHBy1GVC5X0

Very interesting! Maybe we need to tap this resource more aggressively.

[win]

For every $500,000 raised you need to show that you are creating or saving 10 new direct or indirect jobs. We raised $20 million and that translates into 400 jobs. Jay need to create 2,000 direct or indirect new jobs. We are happy where we are.

[Tin Woodsman]

Like Sugarbush, Jay Peak's ambitious use of EB5 was posted : http://www.youtube.com/watch?v=WHBy1GVC5X0

Very interesting! Maybe we need to tap this resource more aggressively.

Going after Vietnamese investors in particular.

Not sure how they could tap that program more aggressively than they are. Both new buildings were largely financed via EB-5 and I don't think they'd want to build that large residential building in the current market even if they are using other people's money. Just no market for that right now.

Edit: On second thought, it's interesting that Jay is using this for ancillary facilities like the medical/sports rehab thing. Would be cool to have a major SHARC upgrade.

[gostan]

I particularly enjoyed the point at about 4:32 into the video where Bill Stenger talks about the EB5 program as providing needed Job Creation and being a WIN WIN WIN benefit. :wink:

EB5 seems like it has resulted in some initial positive benefits in the Northern Kingdom and in MRV, but my real long term question is: How does the EB5 program insure that all of the jobs that are being created are full time "year round" jobs rather than "seasonal" jobs? Notwithstanding the wonderful new facilities being constructed at Jay & at Sugarbush under EB5, the thought of the State of Vermont and the US government having the proper oversight to insure that the jobs being created are full time "year round" jobs is the main question and reservation that I have regarding the program. What assurances are in place within the EB5 program to insure that these new jobs do not result in seasonal layoffs with the resulting drain on the unemployment compensation claims system that all of us working folks and other small business people end of paying for?

[win]

There is a very strict compliance review. Essentially anyone using the program has to submit extensive payroll data to the Government. In the case of us in Vermont the State has been a key part of creating the Regional Center that allowed an investment of $500,000 rather than $1,000,000. Therefore, they also oversee the projects and we have quarterly reviews with them. Remember that these people are investors. They expect there investment back with some rate of return, so any project undertaken need to bear that in mind. This is a good program for many businesses but it is not free money and there are strict standards and compliance.

[random_ski_guy]

There is a very strict compliance review. Essentially anyone using the program has to submit extensive payroll data to the Government. In the case of us in Vermont the State has been a key part of creating the Regional Center that allowed an investment of $500,000 rather than $1,000,000. Therefore, they also oversee the projects and we have quarterly reviews with them. Remember that these people are investors. They expect there investment back with some rate of return, so any project undertaken need to bear that in mind. This is a good program for many businesses but it is not free money and there are strict standards and compliance.

Win,

First, thanks as always for participating in the forum. I have a few questions that perhaps you could answer. Sorry if these have been addressed elsewhere.

1) Does EB5 has strict rules as to the structure of the investment as either equity or debt?

2) If you raised $20 million, what's the plan to spend the balance after these two lodge buildings? I would think a portion of the $20 million would go to refi some existing debt....however perhaps some has been earmarked for snowmaking next winter (and an HD webcam :0)

3) Btw, 400 jobs is a heck of a lot of jobs.

[win]

EB-5 investments have to be "at Risk" so the usual form is equity or subordinated debt security. Projects are structuring things very differently. What works for us may not work for someone else.

We have used the full $20 million. We did not net the full amount as we paid agents to originate and manage the investors for us. Proceeds were used to refinance a bank loan, add on to the Gate House, various mountain capex projects as well as the two new buildings.

400 jobs are direct and indirect. One does an economic model that is reviewed and approved by the CIS that shows how many indirect jobs flow from the direct jobs at a resort like Sugarbush. For instance, if Sugarbush should cease business there would be an impact on many jobs in the immediate area. These are the indirect jobs.

[noski]

For instance, if Sugarbush should cease business there would be an impact on many jobs in the immediate area. These are the indirect jobs. Like mine!

[gostan]

Green cards for Job Creators

http://www.bostonglobe.com/metro/2011/10/24/jobs-for-green-cards-controversial-program-expands/4gMY2MlOgtGGGWwZ0dfPrL/story.html

The article is really mostly positive. And, the article indicates that the newly created jobs at Jay are being kept in place year round. I assume that with the uptick in biz at SB this past off season, that the same is true here. We were also talking about EB-5 here last year in this thread: http://forums.skimrv.com/showthread.php/9974-EB5-Immigrant-Investor-Visa-Program-Sugarbush

And, it was only a brief year ago that the new Schoolhouse and Farmhouse opened for business. These buildings certainly created a number of jobs and also helped to improve everybody's ski and ride experiences here at Sugarbush. And, another ski season and full use of the Schoolhouse and Farmhouse are just around the corner. Of course we would all rather be on the trails and in the woods, than in the buildings!

[win]

The Investors also need to be paid back, so I am happy to have raised $20 million rather than $200 million. Our investors get paid back from the next phase of real estate development that we have plannned.

[Tin Woodsman]

The Investors also need to be paid back, so I am happy to have raised $20 million rather than $200 million. Our investors get paid back from the next phase of real estate development that we have plannned.

So then the question becomes, how do you finance that next phase? I presume bank debt, which raises its own issues in this financing environment.

In other EB-5 news, just saw an announcement of a new EB-5 center planned for Rangeley, ME. Looks like Saddleback will be getting on this train shortly. The more the merrier. One of the few smart policies coming out of the Federal govt these days.

[Nick]

I used to be a green card holder, I was actually Canadian until mid 2001. Interesting to read about these programs and how they are impacting the mountains. I have a helluva lot more to read about before I can speak knowledgeably about this, though :lol: