The owner of Mount Snow says its EB-5 foreign investor funded project has been approved.
Peak Resorts Inc. announced Wednesday that work on its $52 million expansion project will begin soon now that the funds have been released by the United States Citizenship and Immigration Services.
Work on the ski mountain's upgraded snow making system and ski lodge was suspended while the EB-5 approval was delayed earlier this year.
The EB-5 program allows investors to qualify for U.S. residency after investing at least $500,000 in development projects.
Peak Resorts invested $12 million of its own money in the expansion project, but work had to be halted when the company ran short on cash, partly due to the warm and snowless winter.
"We are pleased that we received the EB-5 project approval, and look forward to the funds being released from escrow soon so that we can resume our Mount Snow development projects,” president and CEO Timothy Boyd said in a press release. “The master plan for Mount Snow is expected to enhance the overall visitor experience at the resort by bolstering snowmaking capacity and adding a new three-story, state-of-the-art ski lodge.”
The EB-5 money was being held while the federal agency reviewed the immigration applications.
Since January 2015, Peak Resorts' cash dropped by almost half, falling from almost $21 million to $11.5 million.
The company's chief financial officer said the Mount Snow project, and the delay in EB-5 funding, contributed to the cash flow problem.
The company says the money will be released from an escrow account immediately following the approval of the first petition submitted by an investor in the Mount Snow EB-5 offering.
Correction 10:45 a.m. 5/26/2016 this story originally ran with the headline "EB-5 Money For Mount Snow Project Released." It has been changed to more accurately reflect the news.