Resort under new ownership

Page 5

"It's an exciting project," the new president of SEM Resort Ltd. said about the joint venture corporation that recently rescued the financially foundering St. Eugene Mission Resort to turn it into a top-rung tourist draw.

Daniel Shilling, understandably, does not want to dwell on past "management problems and cost over-runs." He sees great opportunities for this resort located in the St. Mary's River Valley that opened for business in January 2003.

The partnership that plucked it from bankruptcy for $11.1 million last month is unusual in that it draws together Native entrepreneurs from three provinces: the Mnjikaning First Nation of Ontario, the Samson Cree Nation of Alberta and the Ktunaxa/Kinbasket Tribal Council of British Columbia. SEM's official takeover of the business in the court-approved sale is Nov. 16.

Shilling is their appointed spokesman.

"When you think about three different First Nations geographically isolated from one another doing business, it's amazing," Shilling said.

The resort, located minutes from Cranbrook and close to air and rail transportation, consists of a hotel, golf course and casino.

Shilling is optimistic the restructured operation will thrive with aggressive marketing at home and abroad and attention to minute details, such as completion of the pool and landscaping and devising a solution to parking problems.

He explained that a lot of a casino's customers are senior citizens, and they are required to walk too far from the parking lot to the action. That's going to change.

"Gaming's relatively new to British Columbia. We think they made some minor errors, but we think it has potential. And the up side of it is the B.C. lottery people, who we are still in negotiations with, insisted that we have to stick with the existing operator for the initial one year."

Shilling explained, "The B.C. Lottery Corporation licensed ... Lake City Casinos out of British Columbia who currently operate that ... and because we don't officially take over until the 16th, we've had some initial talks with them ... But at some point we look at, you know, do we look at forming our own casino management company? So there's potential for us to get into another business venture."

The partners' primary aim is to make the resort a "destination of choice" year round, Shilling said, so a fitness centre is another must-have on their list of changes.

He points to the partners' combined expertise doing much the same thing in their home territories. The Samson Cree "have recently been awarded a gaming licence in Hobbema, but they also came here (Ontario) and researched gaming and the social impacts of gaming on the community ... They're into a number of joint business ventures, just as we are, so we have some commonalities."

In Mnjikaning, Shilling added, "we have been very successful in construction management ... we have Casino Rama in our backyard. With Casino Rama, we've done water expansion, sewage expansion, school ... We have a number of businesses within the hotel and the casino that are 100 per cent wholly owned by our First Nation and run by our First Nation. We're currently building a $2.7 million daycare. We're also looking at a brand new police station and a brand new ambulance service. They're in the ground; the footings are in. The daycare's scheduled to open next August."

SEM Resort Ltd. has hired the North Vancouver consulting firm Lynn Peakes Associates to manage the operation in "an open-ended contract.

"The principal is Brian Wills. They specialize in companies that have gone bankrupt or have had to restructure."

Shilling said Wills is currently evaluating operations and will make recommendations about staffing and other matters, but Shilling said they're already impressed with the workers they have and expect there will be few staff changes.

The place was being run as three separate entities that will amalgamate. The golf course is closed for the season The hotel was under the Delta chain "with all the Delta systems in place, but come Nov. 15, their systems will be shut down. We will then become a standalone hotel. We have retained the services of the previous Delta manager, Don Shindle.

"I think the important thing is, we're doing this without any government money," Shilling underlined. "And I think that in itself is a story, that three First Nations were able to come to a partnership, and I think that's exciting."

The deal came together quickly. Shilling said they only started discussing the partnership plan last August.