Operations profitable, net assets decrease due to old equipment

Depreciation of ski area machinery and added costs of a lawsuit over a contentious ski area expansion resulted in decreases of net assets, according to the Mt. Ashland Ski Area financial reports.

The nonprofit Mt. Ashland Association that operates the ski area produces a statement each year addressing the ski area's financial standing.

Older equipment like the 42-year-old Ariel Chair Lift show depreciation in the ski area's assets as the value of equipment decreases.

Mt. Ashland Ski Area General Manager Kim Clark said depreciation of the ski area's facilities depends on the expected life span of the machinery. Although the ski area has made more money each year through operations, decreases in the value of facilities and improvements to the ski area's wastewater treatment facility make the operation's overall net assets drop.

"The last few years, the ski area's been spending a lot of money on the EIS (environmental impact statement) and wastewater treatment facility," Clark said.

The ski area paid about $750,000 for environmental assessments for a proposed expansion and about $900,000 to upgrade a wastewater treatment facility to Department of Environmental Quality standards.

As the ski area waits until spring to begin work on a proposed 71-acre expansion, ski area managers are focusing their efforts on upgrading current facilities to offer better options for its customers.

The ski area leases a special use permit to operate on Forest Service land through the City of Ashland.

Staff writer Alan Panebaker can be reached at 482-3456 x 227 or apanebaker@dailytidings.com.