What does a Co-op share cost?
A share of the Mad River Glen Cooperative costs $2000. An individual may purchase a
maximum of four shares. Shares may be purchased in a single payment or in 40 monthly
installments of $50 with a $150 down payment. The total cost of the installment plan
is $2150, which includes interest at an 8% annual percentage rate, and allows you to
become an owner for as little as $50 a month. Monthly payments are made through an
automatic debit program set up from your checking or savings account. Shareholders
purchasing shares on the installment plan start enjoying the benefits of ownership immediately.
What is the Annual Purchase Requirement?
The only other cost
for shareholder is the Annual Purchase Requirement (APR), which all
shareholders pay each year. This obligation was $200 for this season and any
increases in the future are limited to changes in the Consumer Price Index (CPI)
inflation rate. The APR is due on October 1 of each year and can be applied to nearly
every product and service on the mountain. Since it can be spent on season passes, day
tickets, food, ski school clinics, rentals, repairs, in the retail shop and other services, it does not represent an additional expense for most shareholders.
What is the extent of my liability?
Vermont law provides that shareholders shall not be liable
for debts of the Cooperative. Your liability is limited to your $2,000
investment and annual purchase requirement.
Will I ever have to pay any special assessments?
The Bylaws of the Cooperative and Articles of Incorporation do not authorize any
assessment of any type to the shareholders for any reason whatsoever.
How many shares are available?
As of June 1, 2008, a total of 2158 shares have been sold. Our goal to operate the mountain on a long-term basis is to sell 2500 shares, but the Cooperative is allowed to sell up to 3,000 shares.
How many shareholders are there?
There are currently just under 1800 individual shareholders. The maximum number of shareholders permitted under the Cooperative Bylaws is 2500.
Can I sell my share?
Yes, you can sell your share(s) at anytime. However, you must sell them back to the
Cooperative. As soon as your share is purchased by a new shareholder, you will receive
either the book value of the share(total equity of the Co-op/the number of shares) or the purchase price of the share, whichever is less. There is a
$100 processing fee for tendering a share. If for some reason you are no longer utilizing the mountain you can inactivate your share and convert it to a Preservation Certificate. This removes your Advanced Purchase Requirement but takes away your voting rights and shareholder discounts.
Here is the text of theby-law outlining the tendering of Co-op shares:
Section 9.6 - Redemption. Shares may be redeemed upon request of the holder following termination of ownership for any reason or under other extraordinary circumstances approved by the Board. Redemption shall be made only after replacement capital is obtained from another owner. Redemption proceeds shall be limited to the carrying value of the share on the books of the Cooperative or the Cooperative’s net book value per share, whichever is lesser, less a reasonable processing fee, if any, as determined by the Board. Reapplication for ownership following redemption of shares shall be subject to purchase of a share of stock of the Cooperative. For all purposes of this Article of the Bylaws, the term "carrying value" shall mean the price paid to the Cooperative for a share at the time the share is first issued.
How well has the co-op managed the ski area?
Mad River Glen Ski Area has been in continuous operation for nearly 60 years.
The Co-op assumed ownership in December 1995. Its management and staff
have continued to run the mountain successfully with a financially conservative
approach. After a decade of Co-op ownership, we have paid off the debt to the former owner and
have invested nearly $4 million in capital improvements
to the mountains infrastructure. One of the
Cooperative’s strengths is that its fiscal structure is designed to provide a cushion for
lean years. Audited financial statements are available from the Administration Office if
a potential shareholder would like a copy.
What is a Preservation Certificate?
The Preservation Certificate is a great way to support the mission of the
Mad River Glen Cooperative without the obligations of ownership. Through
the purchase of a Preservation Certificate, any individual, group or business –
no matter where they’re located – can help preserve and protect Mad River Glen.
Certificates can be purchased in $500 increments and may be applied towards the
conversion of a regular share at any time.