Q: We have heard that time share units will start being built in Mammoth? Is that true and where are they going to be built?
A: The traditional timeshare industry has spurred all kinds of variations which have become successful and popular in many resort areas. And some of those variations are about to descend on Mammoth. Let's go back and look at some of the things that have been discussed in this forum before as well as some of the present market conditions and how trends in the resort industry are all converging here in Mammoth and driving the market.
Back in the early and mid-nineties there were grandiose plans to build hotels and village environments here in Mammoth. One of the big issues was how to get financing for all of this. Over the years financing for hotels became difficult, almost impossible, unless the location would almost guarantee high occupancy rates. Hardly what you would find in Mammoth where seasonal vacancy is assured, even if we do as a community develop strong convention and conference business in the future. Hence the evolution of what we legally have to call a resort condominium lodge units or what we commonly refer to as condo-hotel units. The idea is simple, the hotel rooms are built with kitchens so they can be legally separate condominiums. The developer sells the units but retains ownership of the a front desk and operates a reservation company that makes the appearance of a hotel. We now have this product in Mammoth without the struggle of acquiring hotel financing.
The next notable trend that we were told about years ago was this; after Intrawest begins successfully developing and has created momentum in the marketplace, there is a wave of other developers who come to the marketplace and begin projects. Mammoth is especially set up well for this because Intrawest owns only a fraction of the land in the Village Specific Plan area and other adjacent parcels subject to development. This movement is what we are now seeing.
This second wave of developers is where we are going to see the variations of the time share concept. Today they are called fractional ownership, interval ownership, club membership, etc.. They are different from time share and have become very popular in resort areas. It could get very creative and very interesting in Mammoth. Most of it is likely to be what is called quarter share--or you own every fourth week and can use it or rent it for revenue. Some of it might be eighth share. Some will likely be a club membership with exclusiveness and high levels of service. Considering the southern California clientele itself, all kinds of things could happen. The end product should be first class, popular, and really enhance the Village environment.
One of the reasons this will be so popular is because of the afford ability and use patterns of our guests. Real estate values have escalated and Mammoth has been inundated by baby boomers who truly due want to spend extended periods of time here at some point in the future and have purchased home and condos to satisfy those desires. But there are still plenty of weekend warriors who can only come once a month or so to use their cheap ski passes or to just chill out. They also don't want the responsibility of owning a major property, and today, probably can't fit it into their budget.
On the other hand there are people who would come more frequently if they did own something, especially if it had excellent features and comforts to accompany their mountain experience. The locations of these properties will be some of the best, offering immediate access to the Village gondola and the whole new fun zone. It is quite conceivable that people would own a couple of these types of properties and rotate through. Maybe on some trips just bring the kids and other times bring an army. Or maybe just a romantic getaway scheduled once a month. These properties will lend themselves to all kinds of use patterns. Ultimately, these properties will appear very hotel-like, much like the properties recently built by Intrawest in the Village and at Chair 15.
Another issue being worked out--how the Town of Mammoth Lakes is going to generate income off of these units. The Town operates on bed tax, and the more this new resort grows the hungrier it will get for more quality services. This issue is being worked out, and it is an important one.
The nightmare that many people fear is the thought of the public being hounded by time share salesman like in other resort areas. This is a different product. Even the sales program for the current Intrawest units has changed in the past few years. While there is a sales team leading this type of project, there is greater cooperation with and greater buy-in by the local real estate brokerage community. In Mammoth, that has proven to be very successful and professional. So don't worry, it is unlikely time share salesman will be out in front of VONS. But if they are, we have all learned how to walk right past them.