FAME approves $135M bond financing for Moosehead area ski resort

A ski lift with freshly groomed snow below with a skier on it and mountains in the background

Courtesy / Friends of the Mountain The Finance Authority of Maine has approved $135 million in bonds to finance Provident Group-Moosehead Lake L3C's redevelopment of the Moosehead Lake ski area.

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By Maureen Milliken

The Finance Authority of Maine has approved up to $135 million in conduit bond financing for development of a Moosehead Lake area ski resort that's expected to create 380 full- and part-time jobs once completed.

Provident Group-Moosehead Lake L3C will use the money to finance acquisition, rehabilitation, design, construction and equipment for the ski resort in Big Moose Township, about 6 miles northwest of Greenville. The project would have a significant economic impact on both surrounding Piscataquis County and the state, FAME said in a news release.

Plans are to redevelop the mostly dormant ski area into a four-season resort that would include a hotel and restaurant, zip tour system, condos, a 200-slip marina, event center and more. The development team comprises Provident Resources Group, of Baton Rouge, La., in partnership with Big Lake Development LLC and Treadwell Franklin Inc., headed by Perry Williams, who lives in Louisiana and Spruce Head.

The Piscataquis County Commissioners also held a public hearing Tuesday on a tax increment financing deal for the development that would funnel a portion of the tax revenue from the nonresidential part into public infrastructure development for 30 years.

The financing approved by FAME was through its Revenue Obligations Securities Program, which provides tax-exempt private activity conduit bonds. The bonds carry no liability or credit enhancement on the part of FAME or the state; FAME acts as a conduit for borrowers, allowing them to access favorable interest rates.

The aim of the program is to stimulate the economy and create and retain jobs in certain sectors, including recreational enterprises, which is how the ski area qualifies. The program has created thousands of jobs in Maine in the last five years, according to FAME.

Recent projects financed by the conduit bonds include GO Lab's redevelopment of the Madison paper mill for its Timber HP wood fiber insulation product.

FAME's board determined the project will make a significant economic development contribution by investing millions into redeveloping the resort and significantly increasing employment through construction and ongoing operations.

"This is expected to lead to significant employment tax revenue, as well as the benefit of downstream spending in the region by those on the payroll, as well as tourists attracted to the Greenville area to visit the resort," the release said.

a terrain map shows a location marker on a mountain that is northwest of greenville next to Moosehead Lake

Image / Google Maps

The Moosehead Lake Ski Resort would be built on the north side of Big Moose Mountain (indicated by location marker), redeveloping a former ski resort. To give context to the location, Bangor (not shown), would be below the lefthand lower corner of this map.

Stimulating Greenville-area economy

“We deeply appreciate the support of FAME," said Steve Hicks, chairman and CEO of Provident Resources Group Inc. "We are eager to get to work to revitalize this once-popular ski mountain and to expand area offerings year-round so as to help stimulate continued economic development in the Greenville area,”

The resort, in the unorganized territory, is on the north side of Big Moose Mountain. The ski resort, once the thriving Squaw Mountain Ski Area, has had a rocky history the past 25 years, closing for several years a decade or so ago. The upper mountain was shut down nearly 20 years ago to skiing, and the lower mountain ski area is currently operated part-time by a nonprofit.

“We are pleased to provide support for Provident’s project in Piscataquis County,” said David Daigler, chair of the FAME board. “Plans for the rebirth of the now-dormant ski resort into a four-season recreation destination is promising news for the Greenville area, and we wish the developers the best of luck as they proceed with construction.”

The redevelopment would make the resort one of the biggest employers in Piscataquis County, which has a population of 17,400 and is one of the state's poorest. The largest employer is Puritan Medical Products and Hardwood Products, in Guilford, with a total of more than 600 workers, followed by Duvaltex, a Guilford woolen mill that employs between 200 and 300, and JSI Industries in Milo, which makes store fixtures and also employs between 200 and 300.

The project was approved by the three-member Piscataquis County Commission in February. The approval put plans on "the fast track," Williams told the commissioners. He said developers want to get financing in place by May, so a new chairlift can be ordered and in place to open the slopes for the 2021-22 ski season.

The rest of the resort would be built out over the next two to three years.