Not even the largest, most successful companies are immune from the devastating effects of missed lease deadlines. Take, for example, the case of Powdr Corp., the former owner of Park City Mountain Resort, in Park City, Utah.
Powdr owned the bottom, but not the top, of the resort’s ski mountain. However, it controlled the top of that mountain by virtue of a 1970’s era, long term “sweetheart lease” written long before Park City became the world-class ski destination that it is today.
Fortunately for Powdr, that lease had a rent schedule that did not anticipate the boom in Park City real estate values that occurred in the decades following its execution. In fact, Powdr’s rent was only about $150,000.00 in 2011. Powdr’s lease included an option to renew, at similar rates, through the year 2051. However, Powdr failed to timely exercise its option to renew, missing the deadline to do so by several days.
This led its landlord to file legal proceedings that ultimately forced Powdr to sell Park City Mountain Resort, and lose its multi-million-dollar crown jewel.
“Failing to properly file paperwork renewing its 20-year lease will go down in history as the ski industry’s most costly…error. Business classes will review this case.” See The Denver Post PUBLISHED: September 11, 2014 at 3:59 am | UPDATED: April 26, 2016 at 11:09 pm.
Avoid making costly errors such as this one, see how LeaseWatch uses timely electronic reminders of critical dates so you never miss a deadline again: Click here to learn more.