At home with the Muellers on Okemo Mountain

Vermont Business Magazine, Jan 1994 by Andrews, Richard

When Timothy and Diane Mueller edged out a rival development company buy the majority of Okemo Mountain's stock in 1982, the Ludlow ski area was running antique equipment and was close to bankruptcy.

Since then, Okemo has stood out among Vermont ski areas, posting steady increases in patronage despite poor winners or recession. Success did nor come without controversy, ranging from local concerns over traffic and overdevelopment in the early years to more recent questions about the effects of water withdrawal for snowmaking from the Black River. However, many local residents appreciate the jobs and relatively low property taxes that Okemo has provided. Skiers at the mountain say they like the snowmaking, grooming and modern lifts, but they praise the ski area's friendly atmosphere even more highly.

Okemo now is third in Vermont and fourth in New England in skier visits. In 1993, the area earned $11.5 million on revenues of $30 million, compared to only $2 million in revenues in 1982. In early December, Okemo shareholders approved a buyout of the minority shareholders proposed by the Muellers. Shares bought for $10 in the 1950s will bring their owners $403.19.

Richard Andrews interviewed the Muellers in Timothy Mueller's office on December 22, during the hectic buildup to Christmas week. Andrews was already acquainted with Diane Mueller through his membership on the board of Chester's Green Mountain Union High School, where Diane Mueller is chairman.

VBM: How did you folks end up in Vermont running a ski area?

TIM: Well, we moved up here after college in '72, working for Diane's father, building roads. He was doing a small development over in Londonderry called Powder Mill.

And then he started Point Pleasant ...

DIANE: That's in St. Thomas (Virgin Islands).

TIM: ... and so we ended up going down there once in a while to help.

DIANE: We moved down there in '78.

TIM: Diane's father died in 1981. By then Point Pleasant was basically done. And so we, with the kids getting old enough, Ethan at school age, we were looking to move back to Vermont.

We didn't really want to go back to Powder Mill, because subdivisions weren't doing well. So we were looking for a project.

We didn't have any idea what kind of project. It could have been a motel, a hotel, a piece of land next to a ski area. Ascutney was available. Somebody brought Timber Ridge (in Windham) to us, but having lived over in that area, we knew that Timber Ridge really wasn't a viable ski area.

Then Okemo became available, not as a lump sum package, but as a stock offering. We felt we could get majority ownership. We knew a few people, and met a few others in the ski business, looked into it. It looked like a viable deal at a price that we could scrape together -- beg, borrow and steal for -- and it worked out.

VBM: Since then you've made a considerable success out of Okemo, What's been your strategy?

TIM: Good management. (He laughs.)

VBM: OK, What does that mean?

TIM: Oh, I'm only kidding. .

Basically, it needed a single-minded direction. The location was good. The physical aspects of the mountain were always there. But it was owned by so many different People, none of whom owned any large share. And that's been one of the biggest things -- just that somebody's in control with a vision.

Physically, we've been able to beg and borrow money to make capital improvements. That was the other thing it lacked. It was in the dark ages in terms of technology. Over the 11 years we've put in 10 new lifts, snowmaking additions almost every year, new trails; added on to the base lodge, new summit lodge, new mid-mountain lodge.

The ultimate thing I think makes this successful are the capital improvements, as well as the employees. I don't think we can underestimate the value of our employees and the dedication and loyalty that they have.

VBM: What was your vision originally, and do you think you've achieved it?

TIM: Well, honestly, we've probably over-achieved it. Okemo was doing 80 to 100 thousand skier visits. And we felt, jeez, if we could ever get td 250,000 skier visits, we'd be in heaven. Last year we did 465,000;

VBM: You have a reputation among skiers as a class act. I'm curious to know how you motivate employees to produce the quality that results in that reputation.

TIM: Well, that's tough. We do a lot of things.

I think the fact that we're here every day, working every day, and not off jetting around helps. I go to Sapphire (Sapphire Beach, a resort on St Thomas owned by Okemo) quite often, but they understand that's for work.

It's particularly important in this business, where you ask an awful lot of your employees during a four-month period -- that they sacrifice a lot of their personal time, their families and other things ...

DIANE: Christmas.

TIM: And so at interpersonal employee relationship is very important.

DIANE: I'd add that that extends to the community as well. We really have a good relationship with not just the town of Ludlow, but also the surrounding area. They realize that what we do for each other can help us all. I think it's important to us to give back to the community.