print email stumble Digg

Black Diamonds of Revelstoke

Andrew Findlay

| August 1, 2008

Image by: Revelstoke Mountain Resort

It doesn’t take a Bob Rennie or Donald Trump to understand why Don Simpson loves Revelstoke.

Simpson first visited the town back in the mid-’80s, one of many pilgrimages north for this Denver-based millionaire developer with an appetite for powder snow. Immediately, the 62-year-old American was struck by a place that seemed to have it all: affordable real estate, proximity to boundless outdoor recreation possibilities and an attractive sleepy ambience. Never mind the fact that nearby Mount Mackenzie had the high altitude, vertical drop and terrain that the powder pundits were saying could keep it operational when other ski hills were being washed away by climate change.

In 2004 Simpson first learned of plans for an A-list resort in one of his favourite ski towns after being approached by Hunter Milborne, managing partner of Sotheby’s International Realty Canada (BID), who, along with developer Robert Powadiuk, is a founding partner in Revelstoke Mountain Resort (RMR). Simpson smelled a winner and less than two years later signed on to the project and opened a Canadian subsidiary, Simpson Property Group Canada, to handle the resort’s property development.

Video: How Revelstoke was built

The trio wasted no time demonstrating they were in town to do business. In January 2007, with residents in giddy anticipation, they summoned the media to unveil the future of Mount Mackenzie, and in the following frantic eight months the developers installed a high-speed gondola, a quad chairlift and a base lodge; they also snapped up Selkirk Tangiers Heliskiing and CAT Powder Skiing, creating a one-stop shop for lift, heli- and snowcat-skiing for a total initial capital outlay of $80 million.

Over the next 15 years, RMR plans to pour an estimated $1 billion into a resort that will include more than 20 lifts servicing 1,829 metres of vertical (which will be the highest in North America), 5,000 housing units and 500,000 square feet of commercial and retail space.

In little more than a year, Sotheby’s, the firm handling real estate marketing for RMR, has already sold 190 luxury units – just part of an orgy of speculation that’s been going on in Revelstoke for more than five years. Market values have tripled since 2003, with the median price of a detached single-family house now hovering at around $463,000 and rental vacancies sitting at a paltry two per cent. Though the real estate rush has made the town of 8,000 one of the most hyped resort developments in B.C., injecting life into a sagging heartland economy, it has also plunged the town into an identity crisis as Revelstoke transforms from funky, affordable mountain town into pricy “world-class” resort. Suddenly, any young person or family of limited means who was enjoying the mountain lifestyle has awoken to discover their town slipping beyond reach.

From Vail to Fernie to Whistler, the story’s the same: resort property development has invigorated towns and propelled real estate into the stratosphere, while leaving politicians and citizens scrambling to find ways to keep their towns diverse and affordable to people other than jet-setting resort investors. The question expert observers and locals alike are asking is, Why was Revelstoke caught snoozing at the steering wheel?

On a warm spring afternoon, Simpson, slightly built with a healthy tanned complexion, ambles down the hallway of RMR’s corporate office in downtown Revelstoke, fresh from a day of heli-skiing in the Selkirk Mountains. He greets me amicably but with a slightly impatient edge, like somebody who’d rather be skiing or dealing real estate than talking to a journalist.

Getting into the ski resort development game in Canada was an unexpected retirement diversion for Simpson. Several years ago, he had cashed out of the family firm, Denver-based Simpson Housing Inc., which was started by his father in the 1940s and grew into a multibillion-dollar apartment development powerhouse in the American southwest. Nowadays Simpson spends roughly half his time in Canada, helping to steer RMR onto the international resort road map.“My sons tell me they’ve never seen me work this hard,” Simpson says as he settles into a swivel chair. “But you know, I realized right away that this could be the No. 1 resort in North America.” While Simpson acknowledges the concerns about housing, and the underlying sense among some locals that they’ve lost control of their town, he’s confident that Revelstoke can remain a livable, authentic town. “There’s no question that housing will be more expensive. Part of the problem is these things get studied to death,” Simpson says, pointing out that RMR’s master plan targets 10 per cent of its housing units for employee accommodation. “Look, our goal is to keep the small-town vibe. Whistler and Vail didn’t even have towns before the resorts were built.”

Tags

Interesting to read comments

Submitted by Anonymous on Tue, 2009-12-01 08:04.

Interesting to read comments above from those most recently involved with my former hometown. I considered relocating my home and masonry business from Vancouver Island, BC, to Revelstoke in 2009, but was flabbergasted by the latter's high housing prices--I would have to relinquish a stunning sea view, custom-designed house, and Canada's best climate for a similarly-priced 1970s home in an isolated community. Admittedly, Revelstoke has a strong nostalgic appeal, a great-looking culture, and a healthy lifestyle. To its detriment, its construction work is largely seasonal, its growth limited by isolation, and its ski hill development experiencing not-inconsequential financial problems and delays. Financially, the risk was not worth the move for me. Should residents temper their optimism, future in-comers may be more willing to apply their talents and resources to make it happen in a reasonably-paced fashion. Good luck.

Housing affordability is a

Submitted by Anonymous on Mon, 2009-02-09 13:43.

Housing affordability is a critical issue in Revelstoke right now, and for the foreseeable future. It affects many who live in the community or want to live in the community, including senior managers at City Hall. It's highly unfortunate that the City lost a Planning Director with Hap's visionary skills and abilities. Unfortunately, he too was affected by the escalating price of housing and chose to resign and move on, leaving a solid foundation for others to build on. He definitely was not pushed, although if anyone should be pushed out it's the current CAO. His indecisiveness and lack of leadership are at the root of many problems in city government right now. It is no coincidence that, after Hap resigned, two other departmental Directors resigned as well. Seems to me there's a real problem with the CAO and his management style. That's what I've been hearing from people in town.

Seasonal rental

Submitted by Anonymous on Mon, 2008-11-03 14:50.

Seasonal rental accommodation is a difficult matter all-round. From the landlord's perspective you understandably have to recoup during your full season what you lose in rent during your vacant season. Also, seasonal staff residents of a resort are notorious for being irresponsible tenants resulting in excessive maintenance costs. A resent staff tenant arrangement for me became a harassing Trojan horse ordeal where half a dozen of the tenant's friends, previously staying in the local campground, were partying and living in the unit virtually the next day. One tenant even walking on some fornicating going on the laundry room. The liberal Landlord Tenancy Agreement seems to side with the tenant which impedes a quick resolution to the problem. No amount of money compensates for all that stress.

Was Planning Director Hap

Submitted by Anonymous on Tue, 2008-09-16 11:26.

Was Planning Director Hap Stelling hit with affordability issues or pushed from an administration (CAO) who wanted something more? Many in town suggest it's the latter. Law suits to follow? Stay tuned.

As a young foreigner working

Submitted by Anonymous on Tue, 2008-08-26 09:26.

As a young foreigner working in Revelstoke for the season, I have found the town to have jumped a few steps ahead of itself. The house owners price the rent at rates that would make a Whistler landlord blush. I only stayed as I was lucky and found a room that only costs 60% of my monthly income. I do love the town though, but as the article states until the town gets air connections, it is just shy of the middle of nowhere. Greed and speculation is on the verge of ruining this town as a viable holiday destination. The residents who bought houses 10 years ago charge crazy rents for spare rooms and basement suites. The resort developers only share the blame for the rental crisis and lack of housing affordability. The simplest solution would be to as quickly as possible build a small village of basic and affordable staff accommodation catering to seasonal hospitality and resort industry workers. This would free the market from landlords seeking $1500 a month for a room in their house from people making coffees and serving beer and operating lifts. Long term locals could then have the rental housing market to themselves not competing against the seasonal workers who see the high rent and justify it by only staying 6 months. Supply and demand.