GM Corner

Massanutten General Manager’s Corner

In this section, Massanutten Resort General Manager, Matthias Smith discusses the Resort’s views & shares a few updates on various aspects of the Resort and the community.

Update May 14, 2021

To the Massanutten Community:

It’s been a while – too long, actually – since I last posted here. Lots to tell you about, including:

Summer operating plans
Projects you may see around the mountain and community
An update on the Water Park
A NEW Community website page (coming soon)

Let’s get to it.

Summer Operations: As I’m sure you know, the pandemic appears to be easing. New infection rates in Virginia and Rockingham County appear to be declining; people are getting vaccinated and as of this past Friday almost 1/3 of Rockingham County residents were fully vaccinated. That’s good news.

At the same time, we still need to be cautious, and we’ll do so. Last year at about this time, we launched extremely vigorous cleaning and safety protocols; these were modified over the course of last summer and winter as conditions changed, as we learned more, and as state and federal guidelines changed. But the best practices we learned and developed will continue going forward. Some of these things have to do with how we clean; some of them relate to how many people will be permitted in any facility or attraction at one time; some of them have to do with booking services such as golf or the Water Park (online booking and payment – and we expect to keep it that way, at least in the short term).

There will also be some new approaches to food and dining. We’ve made takeout and delivery easier, should you so choose, and will add a new Beer Garden at Rugged Cup, which is directly across the street from the Massanutten Sign on Route 33. And, of course, as warmer weather arrives outdoor dining is a much more attractive option, so we’ll be boosting that at popular locations. You can explore options at the resort’s website – massresort.com.

Projects: We’re always trying to make things better. Several recent projects you may have noted:

A new fishing dock in Painter’s Pond;
A new paved walkway between the General Store and what was once the Owner’s Lot. This will help people navigate around the ski area base without walking in roadways;
Improvements to the walking path between the base of the ski area and Painter’s Pond. The path was already there, but we’ve made the signage clearer and the path better;
We will add a new retail outlet – Balanced Roots. It features wellness products, essential oils, and skincare products, candles, meditation aids, and products to help you create tranquility gardens. It’s located at the current site of the Fun Factory on Route 33 – specifically, 11441 Spotswood Trail, Massanutten, VA 22840

WaterPark: We added a bunch of wonderful new features to the Water Park last year, but the pandemic meant that we never had the opportunity to give it the launch it deserved. So, we’re doing that this year! There will be a special celebration there for MPOA members – stay tuned for details.

Coming soon: NEW Community page! We’re putting the finishing touches on a new Community Page, in order to keep you better informed. It will be located right here, but will add features including:

Subscribe via e-mail: Once you subscribe, you’ll receive an e-mail notification whenever we add content
Moderated discussion: the new format affords you the opportunity to respond to our posts. Those posts WILL be reviewed prior to publishing, and we reserve the right to refuse publication. But thoughtful questions and comments may be posted, along with response from the Resort.
Vastly improved navigation: The old format presented all content in strictly chronological order by category. The newest posts will still appear first, but all new posts will appear on the Community home page and it will be much simpler to search the categories for the previously posted content.
Some important phone numbers and email addresses (security, road condition reports, etc.).

We’ll let you know when the new page is launched.

A Tip o’ the Hat: MPOA Board Member Kevin Frazier has done a superb job ensuring that MPOA’s members are aware that MPOA Board elections are coming up. We think his efforts in ensuring good turnout deserve special commendation. We’d also like to thank the entire MPOA Board for continued thoughtful dialog and the strengthening of a relationship that serves the entire community well.

As always, your thoughts and comments are appreciated. You can reach us at community@massresort.com.

Cordially,

Matthias Smith, VP/General Manager, Massanutten Resort

Update February 25, 2021

To the Massanutten Community:

On Tuesday, February 23, I was joined by Resorts Companies CEO Steve Krohn, MPOA President Liz Walker, MPOA Administrator Carter Miller, and residents Thom Bailey, Andrew Jezioro and Orris Hambleton on a Zoom call with Rockingham County Board of Supervisors member Mike Breeden and Rockingham County Administrator Stephen King. Our discussion centered on the new Massanutten Water and Sewer Authority and our desire for the Authority to take over MPSC.

I’d like to share some good news, some not-so-good news, and some recommended steps forward.

The Good News: Messrs. Breeden and King welcomed the call, and the call was productive. They understand that area residents and Massanutten Resort customers are aligned on the desirability of buying MPSC’s assets. Mr. Breeden allowed as to how he’d already been getting calls from members of the community (more on this below). The issue is squarely on the County’s radar screen and, and Mr. Breeden affirmed the County’s interest in the takeover.

The Not-So-Good News: It probably shouldn’t be a surprise, but MPSC is “slow-walking” its necessary cooperation in the valuation analysis that’s currently underway by consultants hired by the County. Originally, it was expected that valuation studies were to be complete this Spring. MPSC has successfully delayed the inspection and study of at least one of its facilities (the wastewater treatment plant) until late March. As a result, the final valuation report may not be delivered to the County until later than we’d hoped, and it will clearly take at least a month longer than that before any final decisions related to a Country takeover will happen.

Now: here’s where residents can help, if they wish to. Previous calls and letters to Mr. Breeden have been impactful; he understands the situation and is committed to this process. Though you’re certainly welcome to contact him, I honestly don’t feel that more communications with him or others with the County will be either necessary or helpful at this time. We’ve been heard, and more communication right now will probably only distract.

But communications elsewhere can be hugely helpful. We have heard lots of anecdotes from residents who have had highly questionable service from MPSC – in terms of inexplicable changes in the number of gallons used, irregular billing, faulty meters, hostile or indifferent interactions with MPSC staff, and so on.

I encourage you to do two things when registering complaints about MPSC. First, write a letter outlining your concerns to MPSC itself at the following addresses: Massanutten Public Service Corp., 1550 Resort Drive, McGaheysville VA 22840 and Utilities Inc., 500 West Monroe Street, Suite 3600, Chicago IL 60661. Even more importantly, there is a link on the Commission’s website for submitting complaints about public utilities generally, and water & sewer utilities: https://scc.virginia.gov/pages/Utility-Complaints. Copy your complaint to MPSC and submit it to SCC as well, noting that it’s a copy of a complaint filed with the utility.

It will likely be an additional 90 to 120 days before the SCC issues its final ruling on MPSC’s rate case, and your complaints to the SCC may be hugely valuable going forward. I suggest that you limit messages to SCC to examples of poor service, rather than complaints about rate disparities, whether between residential and commercial rates or between MPSC and other local water/sewer systems. The way the customer class rates are set is extremely complicated and is a function of, among other things, who actually paid for what parts of MPSC’s system (we’ve made previous posts on that topic; you can find them by scrolling down in this, the “Our View on Community Issues” section). What matters most right now is that SCC needs constant reminders that MPSC is not serving its customers well.

As noted in an earlier post, it may well be that in the short-term rates paid by homeowners seem grossly unfair. Massanutten Resort and Great Eastern are not the reason for that – and the real solution is ownership free from tax impacts, profit incentives, contributions to distant management, and other factors that result in MPSC constantly seeking new increases. The solution is a takeover by the County.

In the next few weeks, there will be several new posts here related to what a post-MPSC utility could look like. And I encourage you to hit your “back” button and read the letter that we, MPOA and area residents sent to the County.

Massanutten Resort and Great Eastern look forward to working as a team with MPOA and area residents to solve one of our community’s biggest challenges.

Sincerely,

Matthias Smith, VP and General Manager, Massanutten Resort

To read the letter sent to Rockingham County officials by Massanutten Resort, Great Eastern, MPOA, and area residents, click here.

Update February 15, 2021

To the Massanutten Community:

I have two brief notes. First, we recently met with the four community members who testified before the SCC on the MPSC rate case. We were so impressed by their testimony – and about how many topics on which we actively agree – that we invited them to meet with us (along with MPOA President Liz Walker and Administrator Carter Miller) – to discuss next steps that will hopefully lead to a county takeover of the system. You can read more about this by reading the post from Resorts Companies’ COO Steve Krohn and me in the Our View on Community Issues section.

Second: thank you for the requests sent to our Community email address (community@massresort.com) asking for road information. Massanutten Security is now sending out e-mail updates with weather and road conditions when conditions warrant – sometimes, several times per day. Please note: these are e-mail notifications, not text messages. Please click here to sign up.

There are three additional places where you can find road and weather information: on the Resort’s website, its app, and on the Resort’s Facebook page, which is regularly updated.

Sincerely,

Matthias Smith, VP and General Manager, Massanutten Resort

Update January 14, 2021

To the Massanutten Community:

I want to update you on some plans we have for the roadways for which we’ve assumed responsibility. I’ve shared with you before that our goal in our negotiations was to improve road quality and maintenance on key roads like Massanutten Drive, Del Webb, and Peak. Here is a sketch of our plans so far.

Over the next five years – specific schedules yet to be determined – we expect to invest approximately $1.4 million into roadway improvements – including the re-paving of a major section of Massanutten Drive. Other capital projects include shoulder improvements and culvert replacement and repair. Under the prior relationship, MPOA and its property owners would have been responsible for approximately $791,000 of that total.

Those estimates are limited to capital expenditures for direct improvements to the leased roads over five years; there are significant planned capital expenses further out as well.

As for equipment, we’ve already purchased an additional snowplow truck and blade, and a blade for another truck already in our fleet, along with salt/sand spreaders for both. We’ll use these to improve road management during winter storms. Our intent is for one plow truck to continuously work Massanutten Drive during snow events, with the second truck used on other roads both inside and outside of the Kettle. We will bear all related operating expenses, such as the costs of pre-storm brining ($360 per event); salting ($570 per application – typically, between $3,000 to $8,000 per storm), and plowing. MPOA will only be responsible for its residential streets, and we expect focusing its equipment there without regard to the entry corridor will improve those as well.

We’ve also assumed routine maintenance responsibilities and costs for mowing, trash and leaf pick up, guardrail installation, and maintenance and pothole repair on the leased roads. These are costs that were jointly funded previously; today, we’re funding all of it.

As previously mentioned, we’re installing new radar speed signage in two locations on Massanutten Drive. This is a joint project of Massanutten Resort and MPOA; MPOA suggested the idea and is contributing 20% of the initial cost. We’re funding the balance and all of the maintenance costs going forward.

The new relationship clarifies responsibilities and will ultimately improve road quality for both MPOA and the Resort while reducing costs for MPOA. Between capital and operating costs, the Resort expects to spend far more on the leased roads than under the old “fair share” formula, but we believe Massanutten’s main traffic arteries are worth the expenditure. We’re glad this will save MPOA and its members considerable work and expense.

As always, you’re welcome to contact me at community@massresort.com

Cordially,

Matthias Smith, VP and General Manager, Massanutten Resort

Update January 4, 2021

To the Massanutten Community:

Happy New Year wishes to all! I hope everyone is having a happy & healthy start in 2021.

Sometime in the next few weeks, you’ll see two automated radar speed signs installed on the downhill side of Massanutten Drive. They’ll be located near the Springston entrance and between Hopkins Drive and Hartman Court.

These aren’t enforcement cameras, but signs like these have proven to be very effective elsewhere in alerting drivers if they’re moving faster than the speed limit. We expect that they’ll serve to remind visitors to slow down if needed, and employees and area residents to keep speeds to a reasonable level.

This project was initiated at the request of MPOA and was planned in collaboration with the Association’s Board. Knowing that speeding along these sections is a common occurrence (even when MPD was operating), we are eager to support this improvement.

The installation of these signs is an example of the way we expect to cooperate with MPOA’s board going forward. This isn’t the type of thing that got spelled out in the new agreement. Rather, it’s an idea we discussed informally; both parties agreed that the installation was for the mutual benefit of MPOA members and Massanutten Resort. As a result, MPOA is picking up approximately 20% of the cost of the signs, or about $1,500. The resort has assumed the remaining cost, along with ongoing costs of maintenance and operation.

As always, feel free to reach out with any questions at Community@massresort.com.

Have a great rest of the week,

Matthias Smith, VP and General Manager, Massanutten Resort

Update December 30, 2020

To the Massanutten Community (and especially MPOA members):

Thank you for your outreach and comments since my last post. Much of the dialogue and analysis has proved helpful. In light of recent questions and comments, I’d like to offer some follow-up thoughts on the new relationship between MPOA and Massanutten Resort (and its related entities).

As you almost certainly know by now, the new agreement supersedes old ones between the Resort and MPOA; the most significant difference is that the Resort is responsible for all aspects of maintaining, insuring, and keeping the main roads (Massanutten, Peak, and Del Webb Drives, along with several smaller roads or sections of roads) in a condition as good or better than when MPOA bore operational responsibility for them.

Under the prior agreements, we were simply reimbursing MPOA about 50% of what it actually spent on maintaining the roads. Thus, in exchange for the lease, we have taken on an important management responsibility benefitting both MPOA members and the Resort, while taking on the full expense of that operation – doubling, potentially tripling – our expenditure. Given that these roadways are critical to our attractions, we have a huge incentive to ensure that they’re kept in the best possible condition.

As we expected, the announcements – by both us and MPOA President Liz Walker – generated a lot of discussions. There was some intelligent analysis done and several good questions were raised. So, I’d like to address some of these.

First, as regards to benefits offered to MPOA owners: These aren’t functions of the new relationship, which is why they’re not spelled out in the Agreement (nor were they spelled out in previous Agreements). Rather, they’re a continuation of benefits we’ve long offered to MPOA owners in the spirit of community goodwill.

Echoing my communication to both President Liz Walker and the MPOA Board, which was also communicated in my last post, our intention is to do more than what is outlined in the document. We intend to focus on what is right and neighborly, not just what is contractually obligated. A return to the arboretum clean-up days and support of selected social events are key examples.

The decision to extend a discount structure similar to the one conveyed to our timeshare owners is an example of this intention. After receiving feedback on the words “and privileges” from my last post – which caused some confusion – I’ve made a correction to the post. For reference, a list of current MPOA discounts can be found here. Please note that there are some limitations on how tickets may be purchased due to Covid-19 protocols.

Next up, there were questions related to MPOA members’ rights to use the roads that we’re now leasing. Yes, the lease agreement contains some rather stiff legalese that could, I suppose, be misinterpreted as allowing us to restrict movement. But that’s not the intent. Suffice to say MPOA members may continue to use the main roads exactly as you always have.

There was some question related to the parking lots and, specifically, the elimination of the “owners’ lot” at the base of the ski area. This does in fact constitute a change; all parking is now first-come-first-served. That “owners’ lot” served both MPOA owners and our timeshare owners. Its elimination was the same for both; nobody has privileged parking going forward.

Regarding road signage: the lease does permit us to install signage along the leased roadways. Our intent with this is simple: in the interest of driver convenience and road safety, we may (at some point) install some signs that provide clarity to visitors as to where things are, and which provide relevant information. The first you’ll see is some radar speed control signs on Massanutten Drive; these will be installed in the next few weeks, and we’ll provide more details shortly (for now, it is important to note that the radar signs are a joint project between MPOA and the Resort.)

Beyond those and, for example, informing visitors that a given feature (such as the Ski Area, Mountain Greens golf course, or Campfire Grill) is one mile ahead, there will be no promotional signage. Any signage we install will be designed to be appealing and in keeping with the peaceful nature of the roadways. We also plan to coordinate new any sign installations with the MPOA Administrator & MPOA President as a courtesy.

No agreement of this sort is likely to address every contingency that someone might think of. Suffice to say: now that there’s a fundamentally new structure between MPOA and the Resort, we both have a better ability to make decisions jointly, without rancor, and address minor operational questions on a case-by-case, cooperative basis.

Many area residents clearly recognize the upside of this agreement. But this marks a significant change, and skepticism is a natural reaction. I plan to make time on at least a yearly basis to meet with MPOA’s Board and residents to discuss their questions and concerns, and hope that you’ll watch and see how things progress as we start this new chapter. If you have comments or questions, feel free to drop us a line at community@massresort.com.

Wishing everyone a Healthy & Happy New Year.

Matthias Smith, VP and General Manager, Massanutten Resort

Update December 18, 2020

To the Massanutten Community:

Now that there’s a completed Agreement between MPOA’s Board and Massanutten Resort, we thought it would be worth discussing what it means from our perspective.

Essentially, what MPOA and Great Eastern/Massanutten Resort has agreed to is a formal agreement that both will operate with complete financial independence from one another going forward. That doesn’t mean we’re no longer closely connected in our interests; we most certainly are (for example, Massanutten Resort will continue to promote MPOA amenities in the welcome packets; MPOA members will continue to enjoy the same Gold Card discounts and privileges that timeshare owners do). But with regard to the overall operations aspect of the community, there is now a clear understanding of exactly who pays for precisely what, and previous agreements have been superseded.

The most significant change has to do with the shared roads. Though MPOA will retain ownership of all of its roads and streets, the Agreement transfers essentially all of the financial and operational responsibility for the maintenance of several key roadways (Massanutten, Peak and Del Webb Drives; Killy Court; Colo Road and the Overlook area, and parts of Litton Lane and Palmer Road) to Massanutten Resort’s management. This responsibility includes road treatments for snow and ice; plowing; mowing and brushing; milling; resurfacing; culvert and drainage maintenance; guardrails; signage; even the taxes and insurance. We’ve already purchased two additional plow trucks with sand/salt apparatus and are awaiting their arrival.

Given that these roads are the ones used most by MPOA residents, Resort guests, and vendors and contractors, they require by far the most robust maintenance within the community. There will be no chargebacks or fees to MPOA and its members. Further, MPOA will no longer be exposed to liability concerns on these roads; just as MPOA’s membership was exposed to liability related to the Police Department, it is also exposed on the community’s roads. But that’s not the case any longer on those that are most heavily-used.

There are some other aspects. Under previous agreements, Great Eastern had legally-binding, perpetual utilities easements across the residential lots of all MPOA homeowners. That, too, has changed; the new agreement guarantees easements but they’ll be along the course of right of ways, not across your private residential property. Further, MPOA and Massanutten Resort have agreed to responsibility for their own security services beyond law enforcement provided by the Rockingham County Sheriff’s Office. Both may provide roadside assistance, but Massanutten Security will not be expected to become involved in MPOA areas, nor will MPOA Security be expected to become involved in Resort areas.

As part of the agreement, we will also release to MPOA $150,000.00 held in escrow since January. We started the escrow funding upon withdrawing from the Association, because we always agreed that we have shared financial obligation for the primary roads and we knew that at some point, a mutually-acceptable agreement going forward would be reached.

Neither side got everything they wanted, but I think it’s safe to say both got what they needed to ensure the community and the Resort remain attractive for the long term. We think that this amounts to a significant windfall for MPOA and its membership. Because the agreement assigns costs related to the most heavily-used roads solely to the Resort, MPOA can move forward with significantly reduced operating and capital costs related to them. It still bears responsibility for capital and operating expenses for the smaller residential streets, but I’m optimistic that this portends stronger MPOA finances and a better community going forward.

We appreciate the hard work and diligence of MPOA President Liz Walker, the MPOA Board, and MPOA’s management and legal team. And I look forward to once again working with MPOA for the betterment of the entire community.

More to come about how things look going forward.

Cordially,

Matthias Smith, VP and General Manager, Massanutten Resort

Update November 12, 2020

To the Massanutten Community:

Vacation rentals of private homes at Massanutten have been in existence – and, occasionally, controversial – for more than a decade. Some homeowners like the fact that their properties can produce income when they’re not using them; some neighbors aren’t pleased when short-term renters don’t behave in ways consistent with the quiet enjoyment of a residential neighborhood.

We’ve long viewed concerns related to short-term rentals to be an MPOA issue, not one involving Massanutten Resort. But we’re aware of the issue, so we’re pleased to recommend a service that might help address some of these concerns to MPOA members who do engage in short-term rentals. It’s called TripForth.

What is it? To answer that, it helps to understand how Massanutten Resort timeshare owners utilize their weeks. Some visit the resort. Some trade weeks through RCI (Resort Condominiums International); they offer their week at Massanutten in exchange for a week at another RCI resort. And some owners rent their weeks on the open market. Since January of this year, that process has been successfully managed for our timeshare owners by TripForth.

TripForth’s services are managed by a company called Kees Vacations, and for full disclosure, Massanutten Resort does view TripForth as a strategic partner because they bring guests to our amenities (and guests who may also be interested in our timeshare services). It’s an independent company with other interests beyond this area. Kees Vacations has extensive experience managing short-term single-family home rentals, most notably on the Outer Banks.

The TripForth model isn’t limited to brokering rentals. They really understand the markets in which they operate; they provide inspection and property management services to ensure properties in their portfolios meet or exceed guest expectations. Most importantly, they provide LOCAL property management personnel to address any issues – including parking problems, overcapacity, trash removal, and noise complaints (they often hire individuals with law enforcement backgrounds to manage that sort of thing).

TripForth itself started by focusing on renting our owners’ timeshare weeks but is now expanding into the single-family home market. They utilize existing vacation marketing channels, including VRBO services like AirBnB and OTA travel sites like Hotels.com and Expedia. But because of their local-presence operating model, they can provide a more personalized service to homeowners – and renters – than can an absentee homeowner who occasionally rents their property or an internet-only rental service.

We’ve watched their work for nearly a year now, and we’re impressed. Massanutten Resort is not looking to get into the single-family home rental business, nor are we interested in acquiring single-family properties for that purpose. But we think TripForth offers services and a level of quality from which MPOA members who do engage in short-term rentals (and their neighbors!) might benefit.

As a result, we’re pleased to share this resource with homeowners who might benefit. If you engage in short-term rentals, I encourage you to contact the Trip Forth Operations Manager - Melanie Grogg directly at (540-908-5139)or email her at Melanie.grogg@tripforth.com.

Cordially,

Matthias Smith, VP/General Manager, Massanutten Resort.

Update October 23, 2020

To the Massanutten Community:

A few brief updates on things going on with the resort:

1) I’m pleased to report that the Meals Program will resume on November 10. We created this program early in the pandemic to assist area families in need. We put it on hiatus a few weeks back to evaluate its impact and plan for its future. You can read more about the return of the program by clicking here.

2) As you might imagine, the ongoing pandemic WILL impact how we operate the ski area and other attractions (such as the WaterPark) this winter. Plans are always subject to change, but we’ve posted what we currently expect here. All areas of resort operations are likely to be affected in some way. Season Passholders, timeshare owners and resort guests will be given priority, and day tickets for lifts and the park will be limited, usually requiring advance online purchase.

3) In part due to filings made by Massanutten Resort and Great Eastern, the SCC has extended the time period for the MPSC rate case, and agreed with our filing that the newly-formed Massanutten Water and Sewer Authority should be permitted to intervene. You can read about these decisions by clicking here.

We’re gearing up for winter… and in the meantime, we have much about autumn to enjoy! I hope you’ll take advantage of it.

Cordially,

Matthias Smith, VP/General Manager, Massanutten Resort

Update September 10, 2020

To the Massanutten Community:

Next week (9/15 – 16), MPOA and Massanutten Resort will engage in mediation. It’s our hope that this discussion, which will be overseen by a retired judge approved by both parties, will resolve differences between us, and move us toward a permanent resolution.

To clear up any confusion, what will happen next week is NOT arbitration. Instead, it’s the first step of the non-judicial dispute resolution process. The goal of Mediation is for the parties to work toward a resolution together, as opposed to trying to convince a disinterested judge or arbitrator that they are right, and the other side is wrong. The idea is that a non-interested but highly-experienced third-party mediator can guide both parties to a mutually satisfactory agreement.

If the parties make progress next week, but are unable to reach a final resolution, then the Mediation can continue on a future date. If mediation fails, the next step is arbitration. We sincerely hope it’s not necessary – and we suspect that many who fully understand arbitration would prefer to avoid it as well. That’s because although mediation is informal, it’s a structured process that allows the parties the freedom to negotiate their own solution in the form of a written settlement. Unlike other negotiations, it is essentially a professionally guided conversation that (it is hoped) will lead to common ground based on the parties’ creative solutions.

Arbitration, by contrast, is a formal legal process. A decision is imposed on the parties by the arbitrator, and like a court proceeding, it involves numerous legal filings, responses to those filings and limited remedies. It depends on evidence of the facts and the application of law. It can take many months – an arbitration case such as this one could easily stretch well into the next calendar year – and as the hours, weeks and months pass, so do the costs to both parties.

Over the past few months, we’ve posted several documents in these pages – specifically, in this section – including items related to 1) the history of agreements between MPOA and the developers, and 2) a legal analysis of why the Summit, Eagle Trace and Shenandoah Villas developments are not required to be MPOA members. These are the types of considerations that would be formally entered in an arbitration proceeding.

Although our temporarily-halted financial support of MPOA seemed to take much of MPOA’s membership by surprise last December, we actually notified the MPOA Board of our concerns about its roads, security and finances roughly six months in advance of our withdrawal, in order to permit time for a negotiation. Since January, we have deposited funds in an escrow account nearly equal to the amounts that we paid to MPOA in our last year of voluntary participation in MPOA. We fully intend to release those funds to MPOA if a mutually satisfactory agreement can be reached.

This has never been about Massanutten Resort trying to save money or stiff MPOA. Instead, it’s simply in the interest of paying for shared expenses using a different funding model, with greater transparency than was provided in the past, and in order to ensure that MPOA builds adequate reserves to fund its significant future maintenance capital needs. We’ve explained why in previous GM Corner and Community Issues posts, and I invite you to read those, too.

We sincerely hope for a successful mediation, so that we can move on to a better relationship with MPOA and better address our mutual needs and interests.

Sincerely,

Matthias Smith, VP/General Manager, Massanutten Resort

Update August 24, 2020

To the Massanutten Community:

We’ve mentioned numerous times – here on this page, and in correspondence with MPOA’s Board and legal counsel – that the Resort and Great Eastern are very much committed to paying our fair share of mutually beneficial services such as road maintenance.

If you’ve not read Garrett Smith’s items on the covenants and agreements between MPOA and the Developer, and the legal reasons why we believe we’re on solid ground for the withdrawal of Summit, Eagle Trace and Shenandoah Villas from MPOA, I encourage you to do so. They’re located in the “Our Take on Community Issues” section.

So now, let’s specifically talk about funding shared roads, because we fully agree that we have a responsibility to do so. In fact, we’ve been holding money in escrow for that very purpose since January (we even offered to pay MORE for road maintenance than we have been paying if MPOA is responsive to our needs).

One thing we think is essential going forward is to develop openness and transparency between MPOA and Massanutten Resort regarding shared road expenses. Massanutten Resort and Great Eastern have been paying MPOA money every year for decades, but we’ve long been concerned that we don’t know how that money is being spent. MPOA hasn’t been able to tell us, apparently because its expense tracking isn’t capable of doing so.

For us, it’s a black hole. When needed road repairs are not made, and no reserve fund is established, all we know is that the money we provide for these services was spent for something that didn’t benefit visitors and guests; that commitments made by MPOA to road maintenance were not met; and that when major repairs are needed, the money to pay for them won’t be there.

By contrast, we track our expenditures carefully. We track payroll, maintenance and other costs specific to any job we do. We can see where things are likely to cost more than projections, and adjust accordingly; we can see where things were over-budgeted. And there’s more. For example, even though MPOA has the responsibility for snow removal on shared roads, our crews regularly drop their plows when traveling shared those roads during snow events, and our maintenance shop regularly helps fix MPOA equipment if MPOA’s shop is closed for the night. So that you know, we don’t charge MPOA for those things, but we can tell you how much they cost us.

We can’t help but view our shared financial responsibility for maintaining these roads, in light of our related financial responsibilities to two groups: 1) our shareholders – who by the way, are our employees and 2) the owners of the timeshare associations we manage. For our employee-owners, we must ensure that the funds Great Eastern provides for shared expenses are properly budgeted and tracked. For timeshare association owners, we must spend their Association’s money on expenses that directly relate to the Association’s property. Accounting for what we do is how we operate our own business, and we view it as reasonable to expect that of our business partners.

We acknowledge that we have full-time staff capable of doing this work, and that MPOA is more limited. We’d be happy to discuss helping MPOA set up improved systems that may do even more than provide clarity on road issues – it may help better track other MPOA expenses with which we’re not involved.

Here’s an additional thought. We’re open to the idea of purchasing or leasing the main roads we use (Massanutten, Peak & Del Webb Drives), and becoming 100% responsible for all maintenance and capital improvements. In doing so, we would also commit to the same transparency we request above. Our goals in all of this are open communication and providing fair choices for what best suits MPOA’s membership, its Board, Massanutten Resort and the community.

Well maintained, carefully managed roads are a subject we agree on, big picture. The mediation and arbitration processes might be useful in working out the details. Until then, always feel free to reach out with any questions: community@massresort.com.

Cordially,

Matthias Smith, VP/General Manager, Massanutten Resort

Update August 17, 2020

One of the issues we all face – homeowners and the Resort alike – are the high costs of potable water and wastewater treatment in our community. There were two significant developments on that front on Wednesday of last week.

As you may know, MPSC is an independent, privately-held, for-profit company owned by Illinois-based Utilities, Inc. Great Eastern and Massanutten resort have no ownership stake in either MPSC or UI.

The first development is that Wednesday afternoon, Great Eastern filed testimony with the State Corporation Commission outlining our objections to MPSC’s proposed rate increases. Testimony was filed by Steve Krohn, Executive Vice President of The Resorts Companies (our employee-owned parent corporation) and several independent utility consultants.

The second development, which occurred later that evening, was that the Rockingham County Board of Supervisors voted unanimously to create a Water and Sanitary Authority for the Massanutten area. This is the first step of what will likely be an involved process – but it’s one that could bode well for all of us.

The creation of the Authority does not automatically mean that the County will take over. But it does start that process in motion – including analysis of the MPSC infrastructure and determining a reasonable valuation for the system.

We are cautiously optimistic about this development. It doesn’t necessarily mean that rates will go down anytime soon – if at all – but it does potentially mean that rates could be stabilized and – perhaps most importantly – wouldn’t include any type of profit in the form of Return on Equity, which is one of the drivers of MPSC’s rates.

To that end, I encourage you to read the first of two articles on MPSC’s proposed rate structure. You can find it here. It may help you understand the factors involved in SCC’s rate-setting process, which are more complicated than many folks realize.

Cordially,

Matthias Smith, VP/General Manager, Massanutten Resort

Update August 2, 2020

To the Massanutten Community:

This might come as a bit of a surprise to some, but this post is in praise of MPOA and all that it brings to the community. I write this because I know there’s been a degree of misunderstanding, leading to anger, regarding the MPOA Board’s decision to eliminate the Massanutten Police Department.

I was not there; in fact, I didn’t even know the question would be called. But, I do know it wasn’t an easy decision for them to make.

To my surprise, I’ve heard a few suggestions that the MPOA should be disbanded. In response, I’d like to note a few things MPOA provides to the community. Let’s start with the legal aspects: under Virginia law, homeowners’ associations are required when a subdivision is created with a common area that’s available to all and which must be maintained. At Massanutten, that includes roadways and public spaces that are enjoyed by homeowners and visitors alike. Without MPOA, those properties could not be maintained and enjoyed by its members, and they would have to be sold or turned over to another entity and privatized.

MPOA is unusual among homeowners’ associations. Only a small minority of HOAs operate gatehouses and private security services, let alone a police department. And very few actually have profit centers like MPOA does – notably its go-kart and mini-golf operations which generate significant revenue. These attractions are enjoyed by MPOA members and guests alike and, perhaps most importantly, they help offset HOA fees.

In a recent thread on the Massanutten Next-door page, a member of the community wrote:

“We, the owners of property in Massanutten, have put our MPOA board in a horrible spot. We complain about our assessment then we complain about losing a service (police) . . .

“. . . I don’t agree with everything the board does but they do the best they can. . . We need to work with the board, not constantly criticize them when they give us one thing but not the other. This mountain is a beautiful place to live with lots of things to enjoy.”

This IS a beautiful place, and a special one, for those who live, work and visit here. As I shared at the 2018 community Townhall, it is not at all surprising that the Massanutten areas were recognized as a top resort community by Business Insider. This recognition is easily explained by the location, amenities, and community environment, but it should also be noted how critical the community anchor (the owner’s association) is to that equation. MPOA’s board members volunteer their time in order to represent the interests of their neighbors. Sometimes, as with this vote, they have to make difficult decisions – even if they know those decisions will be unpopular. That takes courage, and I admire them for it.

MPOA is essential in keeping this special corner of Virginia a wonderful, vibrant community. We don’t always agree on the best way to achieve a given goal, but we usually agree on the goals themselves. I’m grateful MPOA is there – and I hope that with a deeper understanding of all they contribute, you are too.

Cordially,

Matthias Smith, VP and General Manager, Massanutten Resort

Update July 24, 2020

Some Historical Context
Picking up on the topic of joint oversight outlined in an earlier post, I’m reminded of Boston in 1999. I had recently arrived after completing my teaching assignment with TFA, a national teacher corps. After two years in a Rio Grande Valley border town, I was ready for some big-city life.

I chose to live downtown and was able to walk to work at the Four Seasons Hotel on Boylston Street. Being able to do so was a blessing because of the “Big Dig.” If you’re not familiar with Big Dig, it was a project that completely changed major highways and arteries in the city. It put a lot of the roadways underground, added tunnels and bridges, and made getting around the city a nightmare for nearly a decade.

The original forecasts indicated a price tag of $7.4 billion (inflation-adjusted) and completion by 1998. It ended up costing $21.5 billion (inflation-adjusted) and construction wasn’t finished until 2006 – and key elements of the original plan were cut from the project. It wasn’t just the overages of time and money; there were tunnel leaks, design flaws, charges of poor execution and use of substandard materials, criminal arrests, and the death of at least one motorist (who was crushed when a concrete ceiling tile fell).

Like many things Boston, the story is long and complex – but the punchline is that the oversight was insufficient at every level. Every component was an independent fiefdom, and the interested parties simply weren’t pulling on the same rope.

Why Joint Oversight is important
Thankfully, the scope of services offered by Massanutten Resort and MPOA is nowhere near as complex as the Big Dig. But the need for joint oversight by both is just as essential if we want to ensure that we have roadways, parks, and security approaches that best serve residents and visitors. Both the Resort and MPOA have an interest in ensuring that these things happen at a reasonable cost, with transparency.

Joint oversight is an extra set of eyes, an additional perspective, and an extra level of contact from all who have skin in the game. Massanutten Resort impacts MPOA; MPOA impacts the resort. Those impacts can be either positive or negative, and joint oversight is the best way to ensure the former.

It’s not about “power”…
I remember at one board meeting a resident stood up and forcefully proclaimed that Massanutten Resort’s approach is about power. I found that deeply disheartening because it isn’t about power at all. In fact, it’s about ensuring that everything we do is 1) of the best quality 2) at the best price and 3) done with integrity.

This is where joint oversight becomes so important. There’s often tension between these three goals – for example, the best quality isn’t usually available at the lowest price. So, finding the balance point requires multiple perspectives from stakeholders who have the expertise, accountability, and determination to get it right.

What joint oversight could look like
Joint oversight does not need to be the sparring matches that play out all too publicly between politicians. Nobody’s running for reelection. We’re only focused on providing a pleasant experience – enjoyable attractions, clean parks, well-constructed, and maintained roads and security services that are all well-coordinated and high-level.

The areas I think are most worth joint oversight involve real coordination and accountability on road maintenance and construction, long-range planning, emergency preparedness, and park maintenance. Between the Resort and MPOA, we’ve been doing it “sort of” for a while, but we can all do better.

How it relates & possible next steps
We do think there is a better way and there are many ways it could look. The Charlottesville Albemarle Airport Authority is a good example of two entities – the City of Charlottesville and Albermarle County – that engage in shared governance on budgeting, capital expenditure (Cap-Ex) planning, key personnel decisions, and audit selection. The cooperation between these two entities serves the City, the County, and residents beyond well.

While there is no silver bullet or perfect answer, the key ingredients for joint oversight of shared expenses between Massanutten Resort and MPOA could include:

Joint budget approval
Joint vendor selection, including auditor
Joint Strategic & Cap-Ex planning

This would only go so far as the projects and services the two organizations jointly fund. The Resort has no interest in how MPOA operates other aspects of its business, and obviously, MPOA has better things to do than weigh in on every aspect of ours.

Bottom line: unlike an individual perspective, an organization stakeholder requires a mechanism that is reflective of the financial investment.

Next steps? I think they include a conversation on how we better balance the request for financial support with a strategy to better mitigate risks and ensure better outcomes. We’re keen to initiate the conversations with MPOA when the time is right.

Cordially,

Matthias Smith, VP/General Manager, Massanutten Resort

Update July 21, 2020

To the Massanutten Community:

I must admit that I was every bit as surprised by the MPOA Board vote to disband the Massanutten Police Department as many of you were. Great Eastern, by longstanding arrangement, has a “Developer’s Seat” on the MPOA Board. I currently occupy that seat, and treat that privilege with respect; there are times when MPOA’s Board President asks me to recuse on Executive Committee discussions, and I always comply.

Such was the case on Saturday. Frankly, I had no idea that the EC discussion would center on calling a vote on MPD. Nor was I in the meeting when the vote was called; I found out after the fact, as you did.

Board Chair Liz Walker, in Monday’s email to membership, cited liability concerns and staffing issues as the reason that the Board voted almost unanimously to disband MPD. We agree with both rationales. And from our perspective, I’d add two more: MPOA faces some significant financial challenges in the coming years and MPD is MPOA’s single biggest expense. Besides, more sophisticated and deeper law enforcement capability is already available too – and being paid for by – members of this community.

So I think it was the correct decision, for the reasons Liz cited and with regard to both optimizing law enforcement in the community and bringing MPOA back to fiscal health. And I applaud the Board for its courage – especially knowing that the decision would be unpopular.

Our goal, long term, has always been about preserving a wonderful, vibrant community – one in which year-round residents, timeshare owners, and guests feel welcome, safe, and valued. Though I’m aware some MPOA members view the current situation as a significant loss, I ask that you consider the possibility that what lies ahead could very well be far better for all.

Sincerely,

Matthias Smith, VP/General Manager, Massanutten Resort

Update June 25, 2020

Thanks to all who came out and visited the Resort since our re-opening recently. After much preparation, it was nice to begin the slow and gradual path to resuming resort operations.

Our plan, outlined on our recovery page, appears to be going well. The staff training, with a combination of resort made videos, direct instruction, and practice activities have proven both productive and useful. Likewise, the team is embracing the face mask as the new accessory and understanding that physical distance is a new way to demonstrate that we care.

We did receive one email over the first weekend noting concern over guests walking up to the bar, unmasked. I sincerely appreciate the direct outreach from a person renting a home in the area. The extra set of eyes and proactive dialogue are all necessary ingredients to help us ensure that we get this “new normal” right.

Please do keep the comments coming on all topics from schools, recovery, food delivery volunteering or anything else that comes to mind at community@massresort.com.

Meanwhile, we hope to see you at the resort whenever your schedule allows. I have been asked about potentially hosting a reopening event, which is an idea we will plan to schedule once the conditions are right.

Lastly, in follow up to an earlier post, I have asked Garrett Smith (previously introduced) to outline a few points relating to deeds, covenants, and how they relate to the current MPOA discussions. We expect to post this early next week.

Cordially,

Matthias

Update June 16, 2020

To the members of the Massanutten Community:

Thank you for the increased dialogue on our community email (community@massresort.com). We have received questions ranging from 911 address marker improvements on the Western Slope to ways we could support McGaheysville elementary. As we said at the outset of relaunching this webpage, we hope it can be used for all topics large and small that impact our community.

Yesterday evening, I received notice that MPOA has filed for arbitration to review the points we have been negotiating. The financial gap that precipitated the negotiation was small, but we understand the Board’s sentiment that an outside agency might prove helpful to the goal of resolution.

The surface issue is financial, with payments being sought for both roads and security (the former being an area in which we are in full support of paying our fair share), and how to recognize costs associated from areas outside of roads.

To help outline these points, we’ll continue to post regularly in the community issues section of this webpage. In this section, we’ll outline the issues and share supporting documents whenever possible. We hope doing so will help with providing some context for what the negotiation is about. I encourage everyone to review that section frequently as he will be adding information regularly over the coming weeks.

We fully recognize that MPOA’s Board consists of entirely all volunteers engaged in a thankless task – trying to offer high-level services to its members while keeping HOA fees to a minimum. I hope that MPOA’s members also understand the challenges the Board faces. Theirs is a tough job and I remain respectful and appreciative of their community service.

At the same time, I’m disappointed (as I suspect they are, too). We have been trying hard, and sometimes it has felt like we were all beating our head against a wall just to create an interim payment arrangement that helps fund MPOA and protects us and the timeshare owners whose properties we manage. But this is where we are.

We remain fully open to a negotiated resolution of our differences, and we assure MPOA’s membership that we are willing to pay for the roads and services we use. We only ask that until an arbitrator or the parties have determined a new formula, that money we have held in reserve not be used except by agreement.

During arbitration, we’ll continue to look at other aspects of the business relationship between MPOA and Massanutten Resort, past, present, and future, (along with other key issues) on this website. As always, you can send questions to community@massresort.com.

Cordially,

Matthias Smith, VP/General Manager, Massanutten Resort

Update June 12, 2020

Dear Members of the community:

Following up on my June 5th post, I thought it would be helpful to give you a brief overview of the different entities that comprise Massanutten Resort. You’ve heard the names Great Eastern, Great Eastern Resort Management, GE, Great Eastern Resort Corp., and others. Sometimes it seems as though these businesses' names fold into one. From a guest-facing perspective they should, but for the business relationship we have with MPOA, it might be helpful to spend some time on the particulars.

This is because the best way to solve a disagreement amicably is to understand the people on the other side, and what they need and want. My goal in all of these notes is to help you understand us as we move forward to a resolution of our disagreements. We’re your neighbors, we share a unique and beautiful mountain community, and our goals really aren’t that different from yours.

For the most part, Massanutten Resort’s goals are driven by our mission and guided by our employees, who are the owners of the various companies that make up Massanutten Resort. Those of you who have lived at Massanutten for many years will remember the names of Dice Hammer and Jim Lambert; they were the two partners who bought Massanutten Village and this mountain out of a bankruptcy court in the mid-1980s.

Over a 20-year period from the late 1990s through the middle of the last decade, Dice and Jim pursued a process of selling Massanutten Resort to its employees. Although Dice still sits on our board of directors, the Resort has been – since of 2015 – 100% owned by our employees and retired employees.

Each of our employees begins to vest ownership in company stock after two years of employment and can own vested shares for up to ten years after departing the company, reaching a certain age threshold, or retiring.

The vast majority of our employees live in Rockingham County or nearby, and many of us are MPOA members. This company’s owners serve tables, drive nails, clean accommodations, schedule reservations, run zip-lines, operate computers, and do a million other things for our property and for our guests.

They also recognize that many of our guests are themselves, property owners, with a vested interest in Massanutten Resort. Our goal is to support these owners’ love of the mountain and their annual return for the lifestyle and vacation experience that attracted so many of MPOA’s member here. In short, we’re a team. We love and care for the mountain; we want to make it a wonderful home for us as members of this community and as a haven for our guests.

We do this by operating several different businesses. While our team shares a common mission and set of company values, we have established a number of specific business entities in order to better align and focus on specific business needs. Examples include sales, construction, and owners’ association management, but there are more.

I’ve asked Garrett Smith, our in-house Counsel, to outline a little bit about how our businesses are organized. You can find that by clicking here.

Update June 5, 2020

To the members of Massanutten Property Owner’s Association:

Picking up on my conversation from yesterday, I thought I would start with a summary of the specific issues we are discussing. There are two main areas in which Massanutten Resort and affiliated entities have an established and documented business relationship with MPOA.

The first is between our developer and MPOA regarding roads and security. This relationship is outlined in contracts dating from 1982, 1989, 1994, and 2013 that say MPOA maintains and the developer pays a “fair share” for roads and security services and how that is calculated. Their purpose was to ensure that Massanutten’s developer pays for its active use of MPOA’s roads and security services.

Our share of road costs in this area is not a focus for us; we actually expect (and are willing) to pay more than our “fair share” for the roads we use. Say, for example, it’s deemed that Resort guests, employees, contractors, and vendors are responsible for 60% of traffic on MPOA’s main roads. We’ve long ago offered to pay that much – and more. A similar approach was taken for security costs in the contracts, but the agreements allow more flexibility and for many reasons I’ll explain later, we don’t want t