WSET.com - ABC13Facing Tax Audit and Slow Ski Season, Wintergreen Stays Open

Reporter: Mark Kelly l Videographer: Parker Slaybaugh

Wintergreen, VA - Wintergreen Resort is certainly hoping for snow and cooler weather. For three months, the ski resort's really been struggling financially. It took two hits: the warm winter, and an audit showing they owe the state millions.

We sat down with management, reluctant to talk publicly about this until now because they wanted to talk with resort members first. But Thursday, they shared their financial concerns. As the largest employer in the county, skiing in Nelson County is big business, but it's also risky business when the weather is warm.

"It's different. It's a little eerie...I'm thinking it's because of the weather," said Megan Lee, snowboarder at Wintergreen.

Inside Wintergreen's lodge, the ski shop has no shoppers and the check-in has no line. But, as a lover of winter sports, Megan Lee, doesn't mind a bit.

"I like the runs, I like the slope, I like the way the lodge is set up," said Lee.

And she likes the quiet. But, to Wintergreen management, the silence is deadly. Ski revenue alone dropped 30% this season.

"We would hope another winter like this won't happen in our lifetimes," said Hank Thiess, general manager, Wintergreen.

Because in the last three months, problems have snowballed at Wintergreen. The resort faced a near snowless winter and an unexpected call from the Virginia Department of Taxation. They told Wintergreen an audit revealed the resort owes $2.6 million in taxes.

"Those two things have created quite a unique challenge for us," said Thiess.

The management at Wintergreen has taken steps to heal its financial wounds, eliminating 12 jobs, saving the company $600,000 in salary and benefits.

"I think these changes will provide us with a more sustainable model that will just be more successful as we move forward," said Thiess.

To keep cash flowing, members have offered to pay their dues early this year - anything to lift the veil of uncertainty off this vacation destination.

"I think it's safe to say the worst is behind us because we are most of the way through the winter," said Thiess.

Wintergreen is in talks with the Department of Taxation about that audit now. But, it's important to note the resort is up and running, including the majority of the ski slopes. Of course, they're holding out hope for a fresh snow pack this weekend.