Friday, October 30, 2009

Snowmaking and Real Estate



This week winter arrived in earnest with snow and very cold temperatures. With the arrival of the cold weather all of the Utah resorts have begun making snow in preparation for the upcoming ski season. Snow making puts down a very dense layer of snow which is perfect for building a base and virtually guarantees that the resorts will be open on their individual scheduled dates.

Surprisingly, the concept of making snow was first discovered in Florida of all places. A method that the citrus growers in Florida used to protect their crops during cold snaps was to spray a fine mist of water over their citrus trees. This would create a layer of ice over the fruit, thereby insulating the fruit from cold temperatures. As the story goes, on one particularly cold snap as the farmers were spraying this mist over their fields it was cold enough that the mist froze coming out of the nozzle and fell in the form of snow. While not particularly useful for citrus growers, the ski resorts in the northeast immediately saw the potential that this had and thus snowmaking was born. Snowmaking systems are very sophisticated and resorts use a combination of two different methods for making snow. One is using compressed air and water and the other is known as “airless” system.

The compressed air/water system was the first system developed and is still used extensively at most resorts. The air/water system is composed of two pipes buried deep in the ground with a “hydrant” spaced at intervals up the mountain to which hoses are connected to along with a snowmaking “gun” on the other end. With the two pipes under ground one contains water and the other pipe has highly compressed air. One hose is hooked to the water outlet and the other to the compressed air. The pipes feed the water and air to a mixing chamber in the snowmaking gun and force it out at a very high speed through a narrow nozzle. This breaks the water into a fine mist or small droplets. When this hits cold air it freezes into snow crystals and consequently falls as a very dense piece of snow. A big advantage that this air/water system has is that as the air/water mixture is forced out of the nozzle and the air expands rapidly. As a result of this expansion the air also cools. The air temperature in the vicinity of the gun is significantly reduced making for more efficient snow making and allowing for snow to be made at temperatures in the mid to upper 30’s.

The “airless” system, which is shown in the photos taken today at Deer Valley Resort, consists of a large tube with a fan at one end and a ring of water nozzles at the other end. The fan blows a large column of air through the tube to which water is injected with the same result; the water droplets freeze and falls snow. This kind of system is capable of making large quantities of snow over a very short period but also requires lower temperatures below freezing, as there is little cooling effect from air expansion. With both systems the density of the snow is controlled by the amount of water that is mixed with the air. In early season snowmaking the desire is for the largest quantity with the most density possible, so the snowmakers inject as much water as they can. The amount of water that can be injected is determined by the air temperature and humidity. The lower the temperature and the dryer the air, the more water that can be injected and still fall of snow. If the snowmakers inject too much water or if temperatures start rising the water droplets are too large to freeze and instead come out as a liquid drop and freeze on the ground, which creates ice instead of snow. So the snowmaking crews are constantly monitoring the air temperatures and adjusting the water/air ratio’s to make the largest quantity of snow possible.

A few years ago Sun Valley Resort installed a state of the art computer driven snowmaking system. This is an air/water system which is operated by a computer that monitors the air temperatures and humidity’s as well as constantly adjusting the air/water ratios. This is very efficient and Sun Valley is known for having a layer of “fresh snow” most mornings for their skiers and boarders to enjoy.

Moving on to real estate news, here are some of the latest statistics pulled from the Park City Board of Realtors:

• Starting from January 2009 the average list price for all property types has dropped 14%.
• The number of contracts written and accepted has increased each month beginning in March.
• The average sales price for a single family home is nearly $1,000,000.
• Total dollar sales volume from January-September is $576,401,594.
• We will end up the year just shy of $1 billion dollars in total sales volume. The highest sales volume was in 2006 totaling just over $2 billion.

Bargain hunters are taking full advantage of the decrease in sales price and the decrease in sales activity. All of the real estate agents in Park City are saying the same thing, sales are increasing, but only for properties that are well priced or for properties that sellers are willing to sell at a perceived bargain price. If you have been at all considering purchasing a mountain property, I can not stress enough that now is the time to buy.