23. Subsequent Events

12 Months Ended

Oct. 31, 2011

Notes

23. Subsequent Events:

23.  SUBSEQUENT EVENTS:

The Companies have evaluated subsequent events thru the issuance of the financial statements.

On November 30, 2011, Blue Ridge Real Estate Company closed on the sale to Phyllis Enfield Trust of the property located at 22902 Interstate Highway 10, Wallisville, Texas for the purchase price of $1,911,419.  A portion of the net proceeds of the sale were used to repay in full the outstanding balance under a note of $1,009,002 to Barbers Hill Bank and the balance of the net proceeds were deposited and utilized for the revolving line of credit.  As of October 31, 2011, the book value of the assets was included in long-lived assets held for sale.

On December 15, 2011, Blue Ridge Real Estate Company and Big Boulder Corporation closed on the sale of the Jack Frost Mountain and Big Boulder ski areas in Kidder Township, Carbon County, Pennsylvania to JFBB Ski Areas, Inc., a subsidiary of Peak Resorts, Inc., for the aggregate purchase price of $9,000,000.  The 311 acres that housed the ski areas were included in land held for investment.  The ski areas had been leased to Peak Resorts, Inc. and a portion of the leased premises had been capitalized as net investment in direct financing leases.  The transaction resulted in a loss therefore a valuation allowance of $502,000 was recorded as impairment expense in Fiscal 2011.  A significant portion of the net proceeds of the sale were used to repay outstanding debt to the Bank as follows:

Outstanding debt	Outstanding Balance
Term note repaid in full	$4,600,000
Line of credit mortgage note site development sublimit repaid in full	$2,881,311
Line of credit mortgage note construction sublimit	$181,500
Mortgage notes repaid in full	$115,122
Total	$7,777,933

In addition, $325,000 of the net proceeds was deposited into the interest reserve account and the balance was deposited and utilized for the revolving line of credit.

Effective December 31, 2011, Eldon D. Dietterick, Chief Financial Officer, Executive Vice President and Treasurer of the Companies, retired.  Mr. Dietterick has served as the Companies’ Chief Financial Officer, Executive Vice President and Treasurer since 2001.  He has been employed by the Companies since January 1985 in various other capacities.

Effective January 1, 2012, the Boards of Directors of the Companies, pursuant to the Companies’ Bylaws and in accordance with their Restated Articles of Incorporation, have appointed Cynthia A. Van Horn as Chief Financial Officer (“CFO”) and Treasurer of the Companies.  Mrs. Van Horn, age 47, has served as the Companies’ Controller since her appointment in October 1996.  From November 1995 until October 1996 Mrs. Van Horn was employed as the Companies’ Accounting Manager.  The Companies did not enter into any material plan, contract or arrangement with, and did not make a grant or award to Mrs. Van Horn in connection with Mrs. Van Horn’s appointment as CFO and Treasurer.

Effective January 1, 2012, the Boards of Directors of the Companies, pursuant to the Companies’ Bylaws and in accordance with their Restated Articles of Incorporation, have appointed Richard T. Frey as Vice President and Chief Operating Officer (“COO”) of the Companies.  Mr. Frey, age 60, has served as the Companies’ Vice President since his appointment in October 2001.  From 1992 until October 2001, Mr. Frey was employed as the Companies Director of Food Services at both the Jack Frost Mountain and Big Boulder Ski Areas.  The Companies did not enter into any material plan, contract or arrangement with, and did not make a grant or award to Mr. Frey in connection with Mr. Frey’s appointment as Vice President and COO.