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Powder Ridge $500,000 Loan Payback Finalized

First Selectman Jon Brayshaw said Monday that Sean Hayes has transferred the remaining portion of a loan back to the Town of Middlefield.

Credit: Patch File
Credit: Patch File
Powder Ridge Mountain Park & Resort has officially paid back the $500,000 loan it owed to the Town of Middlefield to acquire and re-open the once-dormant attraction. 

First Selectman Jon Brayshaw announced at the Board of Selectmen meeting that the $500,000 check was formally transferred into the town's bank account around 5:45 p.m. on Monday.

Middlefield had entered into a purchasing agreement with Powder Ridge's owner, Sean Hayes, in 2012 to sell the property to Hayes for $700,000, with a plan to put $2 in renovations into the property. Brayshaw and Hayes announced last month that the $500,000 balance due back to the town was going to be paid back earlier than expected.

Selectman Edward Bailey said Hayes was paying the loan off early so that he could look for other sources of revenue for borrowing purposes.

Powder Ridge held a soft opening on Nov. 29 and Bailey said the business hopes to be in full operation in about three weeks. Until then, Powder Ridge will be open on weekends.

Brayshaw said over 2,000 people attended the soft opening.

Click here for a story on the history of Powder Ridge.

Scott Wheeler December 02, 2013 at 10:09 PM
I hope this is going straight towards the loan we have along with the money raised from selling the 22 acres to Lori. Pay down the debt please. By the way the new Vogel property looks fantastic, much better than it was prior to the sale.
Edward Bailey December 03, 2013 at 02:37 PM
The Town's Administration intends to use this payoff to reduce the Powder Ridge debt. We have already paid off $790,000 which includes the $300,000 in cash that we received for the front 20 acres. Applying this additional $500,000 will total $1.29 million paid with a remaining debt of $1.56 million. We currently have a short term note on this debt that is due in March 2014 on which we are paying a 1.65% interest rate. We have been using short term notes with interest rates not exceeding 3% since 2008. This strategy has resulted in over $325,000 in saved interest. Now that all the property is sold and all the sale proceeds have been collected. The Administration, Board of Selectmen and Board of Finance will be looking at the most economical financing of the remaining debt going forward. We are currently budgeting $200,000 for Powder Ridge debt service annually. With the reduced debt we should be looking at around $165,000 annually for the next 13 or 14 years. This amount will be offset by any tax revenue generated from Powder Ridge which is currently at $18,547 which should grow with the success and improvements to the property.
Scott Wheeler December 03, 2013 at 09:47 PM
Outstanding news and what I expected from the administration. A big win for the Generation X families here in Middlefield and that is the reduction of debt.

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