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Tamarack Homeowners Lead Negotiations to Get Idaho Land Lease Paid Financial Arrangements Are in Place to Help Ensure a 2010-11 Ski Season at Destination Resort

The leadership team of Tamarack Municipal Association has culminated several weeks of intense negotiations by striking agreement among Tamarack Resort creditor Credit Suisse, the State of Idaho Department of Lands, and the equity-holders of the resort to allow payment of a land lease that is crucial leverage in the effort to open the resort to skiing and snowboarding next month. TMA, the homeowners association of Tamarack Resort, will contribute $80,000 to a series of payments of more than $350,000 that will be owed the State of Idaho by early 2011.

 In the process, TMA secured an agreement to negotiate a Sublease of state lands to enable the organization to operate Tamarack Resort’s ski facilities this coming ski season. All of the principals of the agreement have also committed to request Bankruptcy Court approval for the upcoming ski season.

Approximately 65 jobs, $550,000 in payroll and several million dollars in economic development are expected to result from the agreement, upon Idaho Bankruptcy Court approval of the deal. “The commitment of the homeowners of Tamarack Resort to restore wintertime recreation at this exceptional destination has paid off,” said Dr. Michael Carey, a pathologist based in Boise who is on the executive committee of the TMA board of directors. “The jobs, economic activity and morale booster that this deal represents for rural Idaho make this a compelling moment for our communities.”

 Tamarack Municipal Association, (TMA) composed of 389 homeowners at the Tamarack Resort, helped lead efforts to reach agreement among all parties to extend the State Lease and to allow the TMA a Sublease of the ski facilities that will ensure the 2010-2011 Season. That agreement calls for Credit Suisse and TMA, as third parties, subject to Bankruptcy Court approval, paying defaulted monies on the State Land Lease, and also agreeing to pay for the first half of 2011 of the State Lease.

 In exchange for the agreement among the affected stakeholders — Tamarack Municipal Association, the Idaho State Land Board, Credit Suisse, and Tamarack Resort, LLC — the State agreed to extend for two weeks the time for assuming or rejecting the Lease between the Resort and the State. All of the conditions needed must be met by November 19th, and TMA expects that the State Land Board and Credit Suisse will also have granted their approvals and join in any necessary motions in front of the Bankruptcy Court that would allow the use of these facilities for the upcoming ski season.

 TMA also believes that, if the Sublease has the approval of all of the affected stakeholders, it would also be more likely to survive any challenges that might arise if the matter is converted from a Chapter 11 to a Chapter 7 Bankruptcy.

 The annual lease payment is $250,000. Credit Suisse will pay the past due amount plus interest and fees for 2010. TMA will pay for the rent attributable to the ski season as part of the first half of 2011 rent, and Credit Suisse will pay the balance of the first half’s rent for 2011.

 The season is scheduled for “first tracks” on Dec.20. Adult season and family passes are now available and are bargain priced beginning at $199 per person. Daily lift tickets for full mountain access are $46 for adults and $22 for youth. Until web-based transactions are enabled at www.tamarackidaho.com, just call (208) 325-1736 for ticket and pass information. All funds will be held in escrow and are fully refundable until necessary final approval is granted by the court guiding the Tamarack Resort bankruptcy reorganization.

TMA’s plan is to conduct a 15-week season from Dec. 20-April 3. The resort will be open Thursdays through Sundays, with extended days during holidays of Christmas, New Year, Martin Luther King, Jr., President’s Day and Spring Break. Five lifts are scheduled to be operating this season, including the lift accessing the 7,700-foot summit of West Mountain.