Background: Hidden Valley Ski Resort
Hidden Valley Ski Resort is located in Cypress Hills Provincial Park, approximately 55 kilometres southeast of Medicine Hat, Alberta. The ski resort was first developed in the 1960s. In 1987, the Alberta Government invested in Cypress Hills Provincial Park and in the ski resort with the purchase of a quad chair, handle tows, snow-making system, ski run development and a full service day lodge. From 1987 to 2015, the resort was operated under a Facility Operating Agreement (FOA). A FOA is a contract under which a private operator manages and maintains facilities on behalf of the Government of Alberta. In 2015, the Government of Alberta assumed operation of the downhill skiing area. The Government of Alberta is now interested in leasing the facility to a third party starting in the 2021-22 operating season under a Parks Commercial Recreation Disposition (also called a Parks Miscellaneous Lease).
Current and Future Opportunities
The ski resort helps support retail sporting goods shops in Medicine Hat and Cypress Hills in winter by increasing demand for ski equipment and clothing, and employs approximately 50 seasonal staff. Hidden Valley Ski Hill receives about 22,000 visitors in the winter season (December 15 - March 20), mostly from the Medicine Hat area and western Saskatchewan. The resort offers space for special events, such as weddings and sporting events. Average annual revenue from 2015–2020 was $1.09M, and there are opportunities for increasing revenue through ticket sales, rentals, concessions, and special events. Third-party assessment of the site indicates potential for summer activities as well. Mountain bike trails have already been developed on the site and there is potential for additional activities and revenue streams. See Attachment 3: Hidden Valley Site Assessment for more details.
Overview of Commercial Recreation Dispositions:
The initial disposition term is 10 years, with the possibility of renewals for a term up to 25 years in length.
The leaseholder will have the responsibility to:
- operate and maintain the Premises;
- collect fees from the public for use of the Premises;
- provide public safety and control;
- manage access to the Premises; and
- manage the movement and activities of users of the Premises.
The leaseholder will pay a fee for the use of the Lands in alignment with the Provincial Parks Fees Order, and will pay an additional Return to Crown as a percentage of revenue as stated in the disposition. The leaseholder will retain remaining revenue from the operation of the Premises. Ticket prices and service offerings will be determined by the leaseholder.
The leaseholder will have the opportunity to develop additional recreation and tourism activities on the site and build new capital infrastructure to support these activities, subject to approval by Parks Operations Division.
