Telluride Scores a Tourism Trifecta

Telluride Scores a Tourism Trifecta
by Seth Cagin www.TellurideWatch.com

Dec 23, 2009 LOCAL PERSPECTIVEStill reeling from the Great Recession, with local businesses under tremendous pressure as they wait for the economy to improve, Telluride just completed a phenomenal week that offers real hope to anyone trying to make a living here.

The community just celebrated the completion of the major phase of runway improvements at the Telluride Regional Airport, brilliantly hosted its first World Cup, and saw the revival of its landmark destination hotel. All three of these major developments reflect that fact that at least some portion of the local population has been hard at work to build a sustainable visitor-based economy.

Reliable, affordable access. Full-service accommodations. And major events to bring visitors during shoulder seasons. Most serious observers would agree that these are three of the most significant bases of a tourist economy for Telluride. All three have been challenging over the last three decades. But as of last week, Telluride made huge gains in all three.

Even though it is almost 25-years-old, the Telluride Airport has not yet fulfilled its potential. The reason has been the notorious dip in the original runway, which kept the airport below the safety rating it could achieve from the Federal Aviation Administration without the dip. A higher safety rating would qualify the airport for more types of aircraft.That improved safety rating is now, hopefully, just one year away. The dip is gone, following $24 million in work last summer, and just one summer’s construction remains for the airport to be able to accommodate 74-passenger Q400 planes. The bulk of that work is already approved and funded by the FAA for next year. Even assuming the airport achieves its new rating, there will remain challenges before the airport actually sees its first scheduled Q400 flights, not least getting airlines to come here. (This will be especially problematic if the Telluride and Montrose Regional Air Organization declines to participate, as, unfortunately, it has for the most part for the last decade.) But for the first time it will be possible. If we can actually get frequent, affordable flights between DIA and TEX, we may finally be at the point where we no longer have to battle the longstanding perception (and reality) that Telluride has been expensive and difficult to get to. That can only help us build visitation numbers to a sustainable level.

It has taken almost a quarter-century of persistence and patience from the Telluride Regional Airport Authority Board of Directors to get this far. Twenty-four year board chair John Micetic was honored at Thursday’s celebration of the new runway’s completion by having the airport renamed the Telluride Regional Airport at Micetic Field, a well-deserved recognition. Not only Micetic and the board, but current and 17-year airport director Rich Nuttall and former airport director Dick Arnold deserve credit, as do former Telski CEO Ron Allred and President Jim Wells, and many others.

Immediately after Thursday’s Grand Opening of the new airport runway – featuring the first man to set foot on the moon, Neil Armstrong, and garnering national media attention – there was a large event at The Peaks to celebrate Telluride’s first World Cup. There were a reported 700 people there, which begs a question: Can anyone remember the last time The Peaks hosted such a large gala?

Under the new ownership of a local group of investors, with a new management team in place and with the irrepressible Mike Hess running the sales and marketing operation, The Peaks has jumped back to life after years of decrepitude. OK, decrepit may be (a tad) too strong to describe how lackluster The Peaks has been for at least the last ten years and irrepressible may be too weak to describe Hess, who has always excelled at throwing a party, but there is no question that The Peaks finally shows promise of fulfilling its potential. As is true of the airport, there is more work to be done to get there, more parties, more marketing, more renovations. But there is every indication now that it will happen. And Telluride has not just one major hotel now, but two, with the Capella Telluride up and running. Yes, both are in Mountain Village, leaving the town of Telluride out in the bitter cold with its handful of very small boutique hotels and aging condos and no full-service hotel. But still, we can now, as a resort, actually match up to other major ski resort destinations in terms of accommodations. Like the improved airport, this development has been a very long time coming. Its apparent arrival is seriously overdue, and all the more welcome for that. Finally, kudos to Telluride Ski and Golf Co. CEO Dave Riley, who has done more than anyone would have thought possible just a few years back, deploying extremely limited resources to improve the Telluride Ski Area. This includes not only opening up spectacular new terrain, but also luring the FIS and USSA to Telluride for a snowboarding World Cup this past week. Thanks to early-season snow, Telluride looked and skied great last week, as we hosted athletes and their entourages and the international media. World Cup events put ski resorts on the map, and this one was Telluride’s first. But it may not be the last, with early indications that Telluride pulled it off – thanks to untold hours of work by Telski employees, the Telluride Visitors Board under the leadership of Scott McQuade, and others on the Telluride World Cup Organizing Committee. The week before Christmas has never been a big week in Telluride, but it was big this year, and will be big, hopefully, for years to come. One more week of robust business in an economy that enjoys, at best, 15 or 16 good weeks a year, is a major achievement.

As is true of air service (actually getting the flights here) and hotel accommodations (especially in the moribund town of Telluride), there is more to be done in terms of both ski area improvements and adding weeks of viable commerce to our still-frail economy. More money is needed for marketing, for example, if the Telluride Tourism Board is to build on an encouraging start in successfully giving Telluride an effective position in a highly competitive market.

But there will be time to look to the challenges ahead. For now, this week before the holidays in this most challenging time, we can stop briefly and celebrate the glass that may now, finally, be more than half full.

Please contact buzz@fedorka.com for all your Telluride real estate information.

Telluride Ski Season Update & Happy Holidays 2009/2010!

Unbelievable Snow and Snowboard World Cup to Start the Season!A number of snowstorms hit Telluride in December, leaving in their wake an excellent base and tremendous early season ski conditions. The best of the best took over the mountain from December 17-20 when Telluride hosted multiple World Cup events. These Olympic qualifiers filled the towns with eager athletes, coaches, media, family and friends from around the world.

NBC, the Olympic network, will broadcast the Visa U.S. Snowboardcross Cup Dec. 26 at 2 p.m., and the cable station Versus will broadcast the event's SBX competition Jan. 3, 2010 at 5 p.m. and the PGS competition Jan. 10, 2010 at 4 p.m.

Terrain Expansion
This season, the ski resort continues its unprecedented terrain expansion by opening Gold Hill Chutes 2 through 5. The new chutes offer intermediate and expert skiers the opportunity to explore world-class runs, the likes of which are seldom accessible by chairlifts.

Lace up Your Skates!
Mountain Village celebrates the opening of a new ice rink at the Capella Hotel. The rink is open to the public daily and is ideal for family fun.

Venture out and discover all Telluride has to offer! For further information on the above as well as Telluride real estate, contact Buzz Fedorka at buzz@fedorka.com. Click on www.fedorka.com ... where listings are updated daily!

Telluride's Mountainfilm update:

Author, adventurer and activist Greg Mortenson will return to Mountainfilm in 2010. We’re looking forward to getting an update on his adventures since he last passed through Telluride. Greg’s latest book, Stones into Schools, was just published and has been getting great reviews.

December 26 Telluride Fundraiser The Wildest Dream will be playing at the Sheridan Opera House in Telluride, Colorado on December 26. The film really has several plotlines, the primary one concerning legendary mountaineer George Mallory and his attempt to be the first person to climb Mt. Everest. It also tells the story of how longtime Mountainfilm guest Conrad Anker discovered Mallory’s body high on the mountain and his own attempt to summit Everest in the same style and manner as Mallory. Conrad will be in Telluride for the event and will answer questions after the film, so it promises to be a special evening. Tickets are $100, including an open bar reception, and you can see a trailer of the film here.

For more information on this or other Telluride events, Telluride homes, Telluride condos or Telluride land, contact Buzz Fedorka at buzz@fedorka.com. www.Fedorka.com.

Telluride's Featured Property Listing of the Day

133 Arizona Street - $2,395,000

Lone Beaver Lodge is a 3-bedroom, 3-bath energy efficient cabin on a large wooded lot with a stream running through it, on a private street. Rustic accents throughout add to this fully custom-furnished home’s charm.

Please contact buzz@fedorka.com for more information on this home or other Telluride real estate information.

TELLURIDE, CO (Dec. 15) - Sunny Telluride opened its doors to the world's best snowboarders Tuesday as the LG FIS World Cup kicked off with the first of two parallel giant slalom competitions. Fraenzi Maegert-Kohli of Switzerland and Matthew Morison of Canada won the event while Michelle Gorgone (Boston) finished 11th for the U.S.

It was the first of five Olympic qualification events for the discipline.

Maegert-Kohli was followed in the women's results by Germany's Amelie Kober in second and Kimiko Zakreski of Canada in third.

"It was a very disappointing day from my side. We've had great support from Telluride with the training on the hill, so there are no excuses," U.S. Snowboarding Alpine Head Coach Jan Wengelin said.

Gorgone was the sole U.S. woman in the finals. The Bostonian was looking fast, but a problem took her out of the first run, landing her with a hefty time differential she was not able to make up, finishing in 11th."On the second run she made up a lot of time on the other rider's advantage, but it wasn't enough. Could she have made it? Yes, she could have," Wengelin said.

In the men's race Austria's Benjamin Karl was second and France rounded out the podium with Mathieu Bozzetto in third.

Justin Reiter (Steamboat Springs, CO) and Chris Klug (Aspen, CO) were each aiming for a podium finish for the home crowd but, after finishing a slim margin behind their counterparts in the first run, they were unable to catch up. Klug wound the day out in 15th and Reiter in 16th.

"It's there in all the athletes, but they just need a little bit of work and a little bit of confidence to go in the right direction," Wengelin said. "We've just got to look ahead to Thursday.

"The racing action in Telluride continues on Thursday with the second PGS competition and Visa Snowboardcross Cup races on Saturday.

Please contact buzz@fedorka.com for further Telluride real estate information.

New Premiere Mountain Village/Telluride Home Listing

184 Butch Cassidy Drive – $15,000,000

With unparalleled privacy and unobstructed 200° views, this slope-side home in a forested setting is a superb contemporary architectural statement embodying exceptional design elements: 5 bedrooms, 6.5 baths, ski funicular, spa/exercise wing, wine tunnel, elevated tree deck, wood-burning fireplaces, smart systems, theater, fully furnished, guest house and oversized garage on a private cul-de-sac. Please go to http://www.184butchcassidydrive.com/ for further detail.

Please contact buzz@fedorka.com for further information on this premier Mountain Village real estate listing.

Wealthy Investors Plan to Buy More Real Estate

By Peter Woodifield
Nov. 30 (Bloomberg) -- Individuals with more than $800,000 to invest plan to increase their property holdings because they foresee better long-term returns than from stocks and bonds, according to a Barclays Plc global survey.

Twice as many people plan to raise their investment in commercial and residential property as intend to reduce it, the Barclays Wealth unit said in an e-mailed statement today. The richer the individual, the greater the proportion of wealth is placed in real estate, the survey found.

“I was surprised how big a share of their wealth property represents,” Mike Dicks, the London-based head of research at Barclays Wealth, said in an interview. “It’s not what I would tell grandma. None of our data suggests that would be a good allocation.”

The global recession pushed down commercial and residential real estate prices in every region except Asia. The value of U.S. shops, offices and warehouses fell 21 percent in the first three quarters of this year, following a 12 percent decline in 2008. Belief that properties are now undervalued was the second most common reason cited for increasing investment.

Real estate investment among wealthy individuals is set to rise to 30 percent of the average portfolio for the next few years from 28 percent now, according to the survey. That excludes properties used as a principal residence. Most rich people, other than the extremely wealthy, should have no more than 10 percent of their assets in property, said Dicks.

‘Emotional Attachment’
“An emotional attachment to bricks and mortar,” can mean that rich investors are often unwilling to sell real estate at short notice and may be less rigorous in measuring its performance as an asset, according to the report.

Investors from Canada and the Persian Gulf were the most likely to increase their property allocations, with an average rise of 4 percent, the report said. Spain was the only country in the survey where more individuals said they would reduce the proportion of real estate investment, said the wealth management division of London-based Barclays. About 60 percent of rich individuals in that country have more than half their assets in property.

Almost 30 percent of British and Indian investors have more than half their wealth tied up in real estate. About 40 percent of the total respondents worth more than 30 million pounds ($49 million) have a similar allocation, Barclays Wealth said.

U.S. Attractive
Three out of four investors surveyed said residential property is looking attractive and two-thirds are keen to explore investing in commercial real estate, the survey said. About 75 percent said they feel hampered by borrowing costs.

The U.S. was the most attractive real estate market for investors outside their home country, the survey showed. The country was seen as having the highest potential for return on investment.

Barclays Wealth surveyed 2,000 people. Forty percent were worth 500,000 pounds to 1 million pounds. An additional 40 percent were worth between 1 million pounds and 10 million pounds. Ten percent had assets of as much as 30 million pounds and the rest were wealthier than that.

Please contact buzz@fedorka.com for Telluride real estate information.

Telluride's Featured Property Listing of the Day

210 Basque Road, Aldasoro Ranch - $2,996,000

This property at sunny Aldasoro Ranch is an architectural masterpiece with an open, spacious design and many thoughtful design and construction details; the home also sits on 3.11 very private acres, adjacent to 13 acres of open space, with true 360-degree views and all-day sun. Two-story vaulted windows line the southern exposure and capture breathtaking views of the Wilsons, the ski area and the Telluride box canyon. 6 bedrooms and 4.5 baths (workshop/rec room is plumbed for 5th bath and/or kitchen, so could be 7th bedroom or caretaker unit). Interior features include a two-story stone fireplace, sunken great room with wet bar, elevated gourmet kitchen with custom cabinetry, and extensive patios. Deer, elk and other wildlife abound in the front yard. Please contact buzz@fedorka.com for information on the above property or any real estate information.

Telluride Market Update

Telluride Continues to Plug Away
Numbers Down but Notable Sales and National Predictions Encouraging

In a nutshell, Telluride is getting through it like everyone else. On account of the current state of the economy, or rather where it was during the first two quarters of 2009, real estate activity slowed considerably. After a string of high marks between 2000 and 2007, with the latter reaching record heights by year’s end ($710 million in total dollar volume),numbers changed significantly in 2008 and thus far in 2009. According to data compiled by the Telluride Association of Realtors. (TAR), overall figures between January and June 2009 were $80 million in total dollar volume, distributed over 105 total transactions. This is 54% lower than the first two quarters of 2008, which totaled $174 million and noticeably lower than earlier in the
decade when property values were less. TAR’s figures encompass the greater Telluride region, including San Miguel County, as well as occasional out-of-county sales (i.e. Montrose, Ridgway, and other communities).

But with a little optimism and acknowledgement that ebbs and flows are the nature of the real estate beast (albeit this ebb is a tad more drastic), it’s still possible to find a silver lining behind this dark cloud.

First of all, resort economies, once largely sellers’ markets, are now giving buyers a chance. With ample inventory to choose from and low interest rates, it’s a good time to make a purchase. Secondly, Telluride has endured negative market effects now for roughly 18 months. Certain experts predict the tides may start turning. The Wall Street Journal stated in a June 3, 2009 article, “In another sign that the housing market may have begun to recover, the number of people who signed contracts to purchase homes increased for the third month in a row.” The piece included data from the National Association of Realtors, which said its pending home sales index rose 6.7% from March (84.6) to April (90.3), and Joshua Shapiro, an economist with MFR, the Manhattan global economic consulting firm, was quoted: “Clearly, within the next couple of
months there’s going to be a decent increase in actual homes sales.” On another note, the
widely recognized financial analyst, Mad Money’s Jim Cramer, predicted back in September 2008 that the housing market would bottom in the third quarter of 2009
(read more at: http://skiresortmarkets.com).

As for Jim Cramer, he likely has as many foes as fans, but it would be comforting, nonetheless, if his prediction is correct. Perhaps the first two quarters of the year can be chalked up as part of the trip toward bottom, and the worst might in fact be over.

Please contact buzz@fedorka.com for further detail on the above article or about other real estate opportunities in Telluride.