HOOD RIVER, Ore. — When county officials held meetings here about expanding a ski resort on the north slope of Mount Hood, people raised such a ruckus they were ordered to wiggle their fingers instead of clapping or shouting.

More than 1,000 people descended on Hood River from around the state to oppose a plan that would turn a tiny, 75-year-old ski area into a year-round attraction. At stake is one of the last wild areas of Mount Hood, an icon of the Pacific Northwest.

Proponents of the $120 million resort say it would bring millions of dollars and hundreds of jobs to rural Hood River County, which at 10 percent has one of the highest unemployment rates in Oregon. But some who live there worry that a bigger resort could profoundly change their quiet community.

Similar debates have played out in dozens of small towns nationwide as ski companies branch into real estate development to stay afloat in a stagnating industry.

"The amount of testimony at those meetings was incredible," said Mike Benedict, planning director for Hood River County. "You're putting development in a place that would impact why people come to Hood River. Pretty much anything in the plan is at issue."

On a clear day, the volcanic cone of Mount Hood looms over Hood River, a town of about 6,000 that marks the divide between rainy Western Oregon and the dry east. Nestled in Hood River Valley, the area is known for fruit orchards and the Columbia River breeze that draws windsurfers from around the nation.

The 160-acre Cooper Spur Ski Area at the center of the current debate has long been a local establishment, with just 16 cabins, tennis courts and hot tubs. But in 2001, Meadows North LLC bought Cooper Spur and began a long process that could lead to development of a destination resort there. It also traded land with the county to bring the possible site to a total of 780 acres.

Meadows managers want to build 450 housing units and develop a resort that could also include an ice rink, biking and hiking trails, a golf course, a hotel and restaurants.

Meadows operates nearby Mount Hood Meadows Ski Resort, which has few amenities and no overnight accommodations. A year-round revenue stream would help business and provide stability, said Dave Riley, manager of Mount Hood Meadows.

"Our company is a seasonal company right now," he said. "It's inefficient and it bothers me that we're not able to provide year-round employment for our people."

Riley said building the resort would create 200 full-time jobs and $2 million in tax revenue annually for Hood River County. "In a county like Hood River County, that's a huge windfall," he said.

But a vocal number of residents aren't so sure. A coalition called Cooper Spur Wild and Free is concerned about damage to a local watershed, soaring land values and impact on wildlife, including elk that winter near Cooper Spur.

"If you have a destination resort, you will have an increase in the land values and we're certain that will happen here," said Mike McCarthy, who cultivates 250 acres of pear orchards.

McCarthy and others are convinced developing Cooper Spur would attract investors in high-end real estate, changing the quiet area for the worse.

The struggle in Hood River echoes debate in dozens of ski towns.

Three major companies — Intrawest Corp., American Skiing Co. and Vail Resorts — which have 25 percent of the ski market, are leading the move into real estate. They're hoping to capitalize on baby boomers' golden years, when they are most likely to buy second homes. American Skiing owns The Canyons in Park City, among other resorts.

Real estate is seen as a surer bet than skiing. Skier visits have remained virtually flat since the late 1970s, according to the National Ski Areas Association. The number of skiers who hit the slopes more than once a year is down from nearly 11 million in 1992 to 7.7 million in 2001, it said.

Michael Berry, association president, said in the past three years, the industry seemed to be emerging from that slump due to snowboarding and the children of baby boomers, who are entering the sport in large numbers.

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Several smaller, independent, ski areas, hoping to keep up with Intrawest, American Skiing and Vail, also have invested in significant real estate developments, said Hal Clifford, a ski industry analyst.

"The model that the Big Three developed and inadvertently pushed on the other areas is, 'Here's a better mouse trap,' " he said. "Other resorts find themselves believing they have to do the same thing to stay in the game."

But Riley, the manager for Mount Hood Meadows, said critics are exaggerating the effects that an expanded Cooper Spur resort would have on the Mount Hood area. He said Cooper Spur won't turn into the huge year-round destination residents fear.

"I think the size of this resort is nowhere near what people think it's going to be," he said. "This is not Vail, this is not Sun Valley, this isn't even Sun River. This is a regional resort."

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