Mammoth Real Estate News Blog

(In Grand Sierra Conference Room - Prelude to Tanavista Presentation by S&P Properties)

• Intent to begin construction on “1″ this summer (50/50 chance - has to do with construction costs and town fees)

• Per Barry Sternlict, “1″ will be like the “W” on steroids.

• Intent to begin construction of Eagle Base Facility next summer.

• There has been a 400% increase in water hook up fees.

• DIF fees continue to be a problem: Went from $8,000 per unit to $38,000 per unit. Group has worked to get fees down to $31k now and hope to get to $29k. Starwoods ideal would be $21k to make all things work for them. He mentioned this continues to be a problem because if the mountain can’t afford to develop in this town, who can?

• The hotel platform Crillion (pronounced Cree-Ahn) for Mammoth in site but many years down the road. Mammoth is not nearly ready for six star accommodations.

• Airport is not a question of if, but when. FAA schedule will not permit air service to begin until 08/09 season (December). They are preparing full EIS for the reinstitution of airservice. No expansion of runway necessary and maintenance building is being converted to terminal. Begin with 3 flights a day from LA (maybe Las Vegas and San Francisco). Should have definate answer in next 6 months.

• EIS issue is a national one. It is controversial specifically with the tour operators who fly sightseeing tours over YellowStone and the Grand Canyon. Yosemite being a national park is what has included our flights near the park in the controversy. It is the Park Service vs. commercial aircraft operators. They are trying to figure out how to identify and mitigate the issues.

• MMSA is weeks away from a LOI for the operator of the Sierra Star projects planned. The operator requires airservice to be running before they will step in.

• MMSA is days away from a joint venture with a partner to take over all of MMSA’s food service and catering

• MMSA has hired Temp CMO (Noah) to head up the rebranding of Mammoth. He is responsible for such rebranding campaigns as Lexus and Matel’s “Barbie”. Growth in ambience and culture is the theme.

• Liquor licenses are an issue if we want big hotels to come to Mammoth. There are not enough liquor licenses. MMSA holds 7 but says they can combine the whole mountain under 1 to allow the extras to go to their future developments but that does not help the local start up a pub/bar. Last liquor license sold for $378,000. Senator Cox recognizes the problem and is proposing an additional 10 liquor licenses for Mono County. Town Council will need to support. Kirk Stapp was not familiar with the issue but tabled the topic until he could do some research. Governor is expected to support the bill if proposed correctly.

In February, the market remains strong for Buyers. In fact, there are many listings priced below the last comparable sale. If you believe in the long term potential of the Mammoth real estate market, you’ll see what’s happening as a great opportunity.

With inventory continuing to climb and interest rates remaining good, there’s no time like the present to make a purchase if you’ve been considering it over the last couple years. Once prices change direction and start heading back up, inventory selection will decline and Sellers will have the upper hand again.

Now if the questions is “Will the market really bounce back?”, you have to consider the overwhelming confidence of Barry Sternlict of Starwood Capital who spent $365 million on the purchase of Mammoth Mountain Ski Resort and the local real estate holdings. A recent press release stated that a new six star hotel residence brand called Crillion will be in unique locations such as “…Mammoth Mountain, the recent purchase by Barry Sternlict of Starwood Capital…” ( Read Press Release from PR Newswire)

There is also “1″ hotel, the south condo-hotel project to be built on the east side of Minaret across from The Village at Mammoth. This new concept is to be built to high environmental standards and with little impact on it’s surrounding area. (Read Press Release on 1 Hotel)

Then there is the ongoing soap opera commonly referred to as “Mammoth Yosemite Airport”. Although making progress, understandably many are hesitant to place too much confidence in any specific dates of when service will begin. For the latest update, read the recent Town Newsletter (Recent Town Newsletter from Town Manager at the bottom of page 1).

In the private sector, there are many projects in various phases with the Planning Department. Some of the major projects include Mammoth Lodestar, South Hotel, Clearwater, Hidden Creek Crossing and Snowcreek VIII which includes a village-like setting. For more details on these projects Visit the Community Development Dept.

Bottom line is that the Mammoth real estate market still has room to grow but that room is limited and once it’s gone, that piece you own (or could have owned) becomes very precious and valuable because it cannot be duplicated or expanded. A premium unique location can hold tremendous value over time. It’s an investment as well as providing personal enjoyment, there’s no sacrificing one for the other in Mammoth.