Deal underway to revive Toggenburg ski resort

Potential Sale and Reopening of Toggenburg Mountain

A significant development is unfolding for the Toggenburg Mountain ski resort, located in Fabius, New York. According to recent discussions, a deal is being considered that could lead to the sale of the property and its eventual reopening. This potential transaction has sparked interest among local stakeholders and officials, as it marks a pivotal moment for the once-thriving ski destination.

Intermountain Management, also known as SkiCNY.com, has reportedly made an offer to sell the property for $1.75 million to a local businessman. This price represents a slight reduction from the previous listing price of $1.995 million. The offer was discussed during a hearing on Wednesday, where State Supreme Court Justice Robert Antonacci II is evaluating the next steps for the mountain.

The situation surrounding Toggenburg Mountain has been complex, involving legal challenges and concerns about market competition. Several years ago, the state Attorney General’s Office took legal action against Intermountain, alleging that the company had illegally created a monopoly in the Syracuse season pass skiing market by purchasing Toggenburg in 2021 and subsequently closing it. The AG's office claimed that these actions led to increased prices and long lines at other ski mountains operated by Intermountain, namely Song and Labrador.

In a 43-page decision earlier this year, Justice Antonacci ruled in favor of the state, determining that Intermountain had violated the Donnelly Act, a state antitrust law. However, the company is currently appealing this ruling. At the time of the decision, Antonacci did not impose financial penalties or provide specific guidance on how the company could rectify the violation. Instead, he conducted a three-day bench trial earlier this summer to explore possible remedies.

Peter Harris, the president of Intermountain, showed openness during the trial to selling the property. His legal team followed up by submitting an offer to Douglas Wheeler, a local businessman. Harris had previously rejected offers from Wheeler to purchase Toggenburg.

Wheeler expressed during the trial his desire to reopen Toggenburg as a ski facility and expand it with other programming throughout the year. He plans to relocate his other businesses, which include sign manufacturing and automotive repair, to the property. For Wheeler, acquiring Toggenburg is a deeply personal endeavor. A lifelong resident of Fabius, he shared that his great-grandfather had sold the property to the Hickey family, which established the ski facility in 1953. Toggenburg had provided the first job to many local teens, including Wheeler. Despite his passion for the project, he has no prior experience in the ski business.

Wheeler has maintained communication with the AG’s office throughout the case. However, he has not secured full financing for his previous plans. John Petosa, a lawyer representing Wheeler, cautioned that there is not enough time to reopen the mountain for the upcoming winter season. Wheeler had previously indicated that it could take several months and over $2 million to prepare the mountain for operation.

During the hearing, Justice Antonacci emphasized his desire to reach a “mutually agreeable resolution” to the case. While he has not formally ordered Intermountain to sell the property, he repeatedly expressed his wish for Toggenburg to be sold and reopened. “I want Mr. Harris to try to settle this case by divesting,” he stated. “The quicker that can be resolved, the better it’s going to be for everybody.”

Antonacci also suggested that a swift sale could influence the AG’s office’s request for a $4 million fine against the company. “I believe the teeter-totter is, the sooner we can get this thing sold, with Mr. Harris’s input and help, I think the better the court can treat Mr. Harris,” he said. “I don’t want to say treat him better, but certainly I’m going to weigh that in as part of the settlement negotiations.”

This ongoing process highlights the complexities involved in the future of Toggenburg Mountain. As the situation develops, all parties involved are likely to continue navigating the legal and financial aspects of the potential sale and reopening of the ski resort.