Dry ski slopes as a class are subject to co-ordination as outlined in the relevant Practice Note.
From the middle of the last century, skiing has become a popular pastime, but as the terrain and climatic conditions in the UK are not generally suitable for alpine type ski events, participants have, in the main, had to travel abroad to partake in this sport. As skiing requires skill and experience to maintain an acceptable level of competence, skiers require convenient practice facilities, thereby avoiding the expense of regular trips to snow clad mountain areas.
In order to fulfil this need dry ski slopes have been developed throughout England and Wales. Motives for the occupation of this type of property vary: many occupiers will endeavour to maximise profits, but some are run as clubs for the benefit of members whilst others are run by local authorities, seeking mainly to provide a service.
Many dry ski slopes have been developed as part of other leisure or sports complexes.
The slopes themselves vary from hereditament to hereditament, and may be an enhancement of an existing area of terrain or even a purpose built structure. Appendix 1 gives some guidance for the requirements of a dry ski slope development.
The surface used on dry ski slopes is a form of matting, which is secured to the slope. It is considered that the matting, forming as it does the surface of the various runs, is enjoyed with the land on which it rests and enhances its value so as to be rateable with it, not withstanding that it is merely wired or secured by fasteners into position.
Ski lifts and drag lifts are quite often associated with ski slopes and the VO should consider which elements of these lifts are rateable plant and machinery. Appropriate guidance on costs should be drawn from the relevant sections of the VO cost guide.
A more recent development is the creation of indoor, real snow slopes, the first of which opened at Tamworth in 1994. These use snow-making machines and require an inside temperature of –3 degrees Celsius or below. The slopes are unlikely to be as long as the bigger outdoor slopes, but gain in popularity by providing a more realistic skiing experience.
Appendix 1 gives general guidance on the nature of dry ski slopes. Hereditaments in this class are subject to a wide variety of facilities, so the survey should be in sufficient detail, to enable comparisons to be made.
A significant number of ski slopes have their own websites, which can usefully be accessed to obtain information on the available facilities. The general site www.skinet.co.uk provides links to the vast majority of individual sites.
4.1 Rental Method
Open market rental information may provide the best evidence of value. Care should be taken, however, when analysing such rents, as they can often disregard substantial tenants improvements, which will necessitate considerable adjustment.
In the case of a commercial operation, if possible, the adjusted rent should be tested against a receipts and expenditure valuation, and the resultant valuation expressed in terms of a percentage of gross receipts to facilitate comparison with the assessments of similar hereditaments.
In the absence of rental evidence the preferred method of valuation will depend on whether the hereditament is occupied for commercial or non-commercial purposes.
4.2 Receipts and Expenditure
Where a slope is occupied by a commercial operator, the recommended valuation approach is one based on analysis of receipts and expenditure. In the absence of full accounts, the valuation should be based on a percentage of gross receipts, having regard to rental evidence, or the analysis of receipts and expenditure on comparable hereditaments. (See relevant practice note for guidance on percentages.)
In some cases examination of accounts of commercial undertakings will throw up a very small or negative divisible balance. In such circumstances, consideration should be given to the possibility, of competition to occupy, from a members club or local authority, which should be reflected in the valuation.
4.3 Contractors Basis
Where the hereditament is occupied by a non-commercial operator (members club or local authority), which does not have profit as its primary reason for occupation, it may be appropriate to adopt the contractors basis of valuation.
Information regarding the costs of items should be obtained from the cost guide wherever possible, otherwise VOs should obtain guidance from their RBS. (See relevant practice note for further guidance.)
Where it is considered that the contractors basis of valuation may be affected by the provision of grant, then reference should be made to RM : V4 : S7 : Appendix 2, to consider whether or not the effect of grants should be reflected in the valuation.
4.4 Comparative Approach
Whichever valuation method is used, it is necessary to stand back and look at the answer produced in the light of comparable assessments.