Daily Archives: April 25, 2016

This would be very bad.

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In case you thought the Stenger/Quiros/EB-5 mess couldn’t get any worse, take a look at this from the Burlington Free Press:

Jay Peak ski resort could shut down; Q Burke Hotel may never open.

Those are the dire conclusions reached by Michael Goldberg, the attorney who has taken over the Vermont properties as receiver…

Goldberg says the two resorts have very little cash on hand “and numerous upcoming expenses that…

… will quickly use up available cash and, if additional money is not obtained, force the Receiver to shut down operations at Jay Peak and eliminate any possibility of Q Burke opening.”

Goldberg notes, with an air of understatement, “This is a very different situation than the one claimed by Ariel Quiros in his sworn investigative testimony before the SEC.”

Dare I say, the worst possible scenario is now on the table? Dare I say also, Goldberg’s findings make Stenger and Quiros’ denials of wrongdoing seem that much less credible?

Whatever you think of ski resorts — their environmental impact or quality of jobs — this would be a severe blow to the Northeast Kingdom. It would also add a new dimension to the political fallout from this scandal.

Chances are, this won’t happen. Jay Peak in particular would be an attractive bargain-basement purchase, since it’s chock full of EB-5-funded amenities. Q Burke has a new hotel ready for occupancy. But the mere possibility of complete closure has to send shivers down the spines of everyone in the Northeast Kingdom, and everyone in Vermont politics.

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Were the Newport projects just a bait-and-switch?

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Over the weekend, VTDigger’s Anne Galloway posted a detailed history of the Stenger/Quiros scandal entitled “Jay Peak’s Path to Fraud.” It’s a must-read for those wanting to get a good summary of the affair; the reporting is backed up by Digger’s two-plus-year investigation of the story.

And it raises a huge question in my mind: Did Stenger and Quiros ever seriously intend to build the megaprojects in Newport, or were they nothing more than flashy promises designed to dazzle the politicians and the public, and pave the way for what they really wanted — the transformation of their ski resorts?

In September 2012, Stenger and Quiros announced a bold initiative including major improvements at the resorts, a new terminal at Newport’s airport, and a suite of ambitious projects in Newport itself, including a window-manufacturing plant, a five-story office building, a hotel and conference center, and a marina, as well as a biotech facility in the works since 2009.

The numbers were mind-boggling: over half a billion dollars invested in the perennially impoverished Northeast Kingdom, and a rebirth for the city of Newport. Up to 10,000 new jobs.

Today, many of the ski resort improvements are complete or largely so, while nothing much has happened in Newport except for the demolition of some historic downtown buildings, leaving a hole in the cityscape. And now it looks like nothing will ever happen.

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Former politician does something irrelevant

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Well, well. Look at what the Sunday Times Argus brought me.

Former Vermont Gov. Jim Douglas has endorsed Republican John Kasich for president.

Wow. That’s… uh… that’s… useless.

How useless? Douglas issued his endorsement on Tuesday. As far as I can tell, the Times Argus was the first* media outlet to even mention it.Five days later. 

*Update: Seven Days’ Paul Heintz reported the endorsement in a longer piece last Wednesday about preparations for the state Republican convention.

That’s how you move the needle, folks.

Douglas’ endorsement came the day after the New York primary results put yet another nail in Kasich’s coffin. Which begs the only interesting question about this:

Why now? And why not before, when it might possibly have made a little bit of difference?

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