The origins of Ski Rio date back to the late 1970s, but to fully understand how Ski Rio came to be, we first need to understand how the Rio Costilla Livestock Cooperative Association, or RCLCA, came to be. The Rio Costilla Cooperative Livestock Association was comprised of 171 families, many of whom were direct descendants of the holders of a massive land grant which partly comprised Costilla Park. Many of these original grant holders lost their land through non-payment of taxes or private sales. However, beginning in 1940, several families had the opportunity to buy back a part of the land and were able to regain control of Costilla Park. This land was originally leased to the Department of Game and Fish, but when the lease expired in 1975, the Cooperative decided not to renew the lease and instead manage the lands themselves.

In March of 1979, the Rio Costilla Cooperative put up funds to conduct a feasibility study of a new ski area on the privately owned Costilla Park. At the center of this proposal was Richard Gonzalez, who was also the manager of the Rio Costilla Cooperative. By July of 1980, a master development plan for the new ski resort was drawn up. Five lifts serving 290 acres of skiable terrain were envisioned. Additionally, a skiable village would consist of 224 condo units, 85 single family homes, and a 200-bed hotel. The entire development would be under a 99-year lease to the RCLCA.

Despite the grand plans, $7 million were needed to get the resort off the ground, and it was estimated that $40 to $60 million were needed to bring the resort to full buildout. Despite the lack of funds, the RCLCA began preliminary run clearing back in 1980. The RCLCA formed the Rio Costilla Recreation Development Corporation, which was wholly owned by the RCLCA and became responsible for the ski area development.

In May of 1982, the corporation applied for county recreation and development corporate bonds which totaled around $10 million. Backed with the funds of the bond, development of the ski area rapidly increased. Several temporary buildings were built and a 12-tower Poma triple chair was installed. Additionally, real estate around the development was offered up for sale. The Poma triple was funded off by a promissory note signed by Poma of America.

After a few tight months of construction, the new Rio Costilla ski area was ready for operation, consisting of a triple chair, a platter lift, two chalets, and 14 ski runs. The ski area officially opened on January 15th, 1983 to much local fanfare. Despite the development, there was no snowmaking system.

Despite the local enthusiasm for the opening of the mountain, Rio Costilla's first ski season was overall a disaster. The ski area's remote location and poor access road, combined with sporadic snowfall, resulted in only 4,137 skier days being recorded. In May of 1983, rumors began to swirl that the ski area was facing foreclosure, though Gonzalez labeled these charges as absurd. The mountain was put up for sale in July of 1983. The Recreation Development Corporation reportedly held over $1.3 million in debt, with $500,000 owed to Sentinel Bank and $700,000 owed to Poma of America, the lift manufacturer.

Later that month, Richard Gonzalez and Robert Crawford, who was an executive for Poma of America, purchased the lease to the ski resort. The pair formed Rio Costilla Incorporated and promised to make payments to Poma and Sentinel Bank as well as smaller creditors. Gonzalez and Crawford also brought on Lawrence Smith as a general consultant. By November of 1983, they announced an opening date, and by December the resort announced intentions to build a $2 million hotel and open a new Poma gondola in time for the 1984-85 ski season.

Despite the grand plans put forward and despite a 1,200% increase in skier visitation numbers, the resort continued to lose money. The 1983-84 season only brought in 10,966 skier visits. However, this didn't stop additional development. By November of 1984, 21 new trails were cut and a second Poma triple chair was installed. This triple chair was purchased used from the Deer Park ski area in California and had only operated for one season, financed through a loan from Wells Fargo Bank. Additionally, a 40-room hotel was constructed as well as a restaurant, gas station, and a convenience store.

In February of 1985, Poma of America filed a lawsuit against Rio Costilla, claiming that the resort had stopped making payments on a $723,000 promissory note it signed with the lift manufacturer back in 1982. Poma requested that the ski area be put in foreclosure and all its assets liquidated. This loan had been authorized by Bob Crawford of Poma, who had left the company shortly after. Making matters more complicated, Wells Fargo Bank also filed another suit against Rio Costilla, alleging that the ski area was still liable for the money owed on the construction of the new triple. More bad news came in May of 1985 when the architectural firm who designed the hotel and lodge sued the ski area for $250,000.

After Richard Gonzalez resigned from his position, Bob Crawford assumed the role as the new general manager. Crawford announced that the corporation would reorganize itself and would work to repay the outstanding $1 million it owed to various creditors. Crawford also announced that the resort would proceed with an expansion plan that summer, opening up the upper bowl to lift-served skiing. However, in the face of new lawsuits, a court ruled that Rio Costilla be auctioned off in a September 18th court sale. Crawford attempted to find European banks that would lend him funds to restructure the resort, traveling to West Germany to do so. Rio Costilla filed for Chapter 11 voluntary bankruptcy hours before the auction, which saved it from being liquidated. Lawrence Smith was swiftly installed as the new general manager by the court. Crawford was dismissed, though since he was in Europe he reportedly didn't know.

Despite the pending bankruptcy, Smith vowed that Rio Costilla would remain open for the coming ski season. By October of 1985, the ski area asked the New Mexico Tourism Board for a $100,000 loan, which was approved by the state. Additionally, Bob Crawford announced that he had secured a $2.5 million loan from a West German bank. Despite the bankruptcy, Rio Costilla operated somewhat normally for the 1985-86 ski season, however in an effort to raise capital the resort sold off much of its equipment.

In January of 1986, a Houston-based company called the Bailey Group purchased Rio Costilla, which was approved by the bankruptcy court. As part of the Bailey Group's efforts to control losses at Rio Costilla, the ski area announced that it would not operate on unprofitable weekdays. The 1985-86 season only recorded 6,000 total skier days.

After another unprofitable year, the ski area ended up back on the courtroom steps. In March of 1986, Poma of America once again sought to liquidate the mountain for repayment of its original promissory note. In April of 1986, Mitch Brown, a Californian investor, paid $25,000 for the Rio Costilla ski area minus the Bravo triple chair and the two surface lifts. Mitch Brown then outright purchased the lift from Poma. Brown's company, Miracle Mountain Corporation, funded this through several unsecured loans from the Liberty Federal Savings Bank based out of Raton.

By the summer of 1986, Liberty Federal Savings Bank foreclosed on Rio Costilla. The bank retained Brown as the general manager and kept on Lawrence Smith as a consultant. With funds from the Liberty Federal Savings Bank, Mitch Brown announced a $3.5 million investment program that would turn the Rio Costilla resort into a premier destination. A used Riblet double from Stowe, Vermont was purchased and installed, opening for the 1986-87 ski season. This new lift opened up the expansive Cinnamon Bear Bowl to lift-served skiing and greatly expanded Rio Costilla's offerings. The 1986-87 season recorded 23,000 skier days, which became the best in the resort's history.

By the summer of 1987, Lawrence Smith began work on developing the Silver Tree condos and restaurant, which were owned by him along with several parcels of land in the resort. In October of 1987, in an effort to rebrand itself, Rio Costilla became Ski Rio.

Ski Rio operated throughout the 1987-88 season, however in July of 1988 the mountain was put up for sale again. Reportedly, the Liberty Federal Savings Bank was put under orders from the Federal Home Loan Bank to sell the resort as the bank was not making money on the property. Following this, over half a dozen lawsuits were filed against the bank-owned Miracle Mountain development company and against the Silver Tree Restaurant, which was owned by Lawrence Smith. In October of 1988, federal regulators declared Liberty Federal Savings Bank insolvent. While much of the bank's collapse is outside the scope of this video, mismanagement and fraudulent activity certainly played a big role in the bank's demise. The receivership meant that federal regulators became the new managers of Ski Rio, which had been Liberty Federal's largest asset. The Federal Bank stated that the ski area would be operational for the 1988-89 ski season and that they would look to divest the resort. Along with new management came a new general manager, and the federal government, in search of a qualified management team, also held talks with Copper Mountain and Keystone. Mitch Brown, the former owner of Ski Rio, was also indicted on charges of defrauding an Oregon bank. Lawrence Smith remained at the resort to manage the Silver Tree Restaurant, which he owned, however the Silver Tree properties were later included in the FDIC takeover.

Though Ski Rio experienced record visitation, even experiencing its first lift lines ever, Ski Rio lost money for both the 1988-89 and 1989-90 ski seasons. The Federal Asset Disposition Association announced their intentions to sell the resort. While several parties made bids on the troubled resort, in July a group of Taiwanese investors signed a letter of contract to purchase the resort. However, by September of 1990 the Taiwanese investment group backed out of the deal, reportedly stating that they were misled on the state of the ski area. Following this announcement, Ski Rio was immediately mothballed by the federal government. The federal government reportedly lost $1.8 million on operating the resort over two seasons and spent an additional $1.5 million in legal and other costs associated with the resort. The closure had devastating effects on the depressed local economy, removing over 170 local jobs and over $1 million in wages. Despite petitions and various plans to reopen the mountain, nothing came to fruition. The truth was that Ski Rio had lost money every season it operated and, for a resort of its size, had struggled to attract skiers.

Though rumors of a sale circulated in late 1991, the sale ultimately fell through. The resort did not operate for the 1991-92 season. It was around this time that the FDIC announced intentions to auction off the resort, completely liquidating it. In response, the Rio Costilla Livestock Association, who had originally developed the resort, put up a $100,000 deposit towards its purchase. However, the Livestock Association wasn't able to find the funds necessary to buy the resort.

In February of 1993, the FDIC approved the sale of the resort to Jacque De Brun, a private developer from Florida. However, the deal fell through after De Brun was declared in default. By June of 1993, David Hendrick, a real estate consultant from Houston, offered to purchase the resort. By September of 1993, the ski area was sold to Hendrick's company Magnolia Mountain Limited Partnership for $1.26 million.

Hendrick stated that Ski Rio would not operate for the 1993-94 season but that necessary updates would be undertaken. However, he later decided to operate the resort on a limited basis for the 1993-94 season. This reopening brought much excitement to the local community and drew fairly large crowds. For the first time in its history, Ski Rio was profitable by a significant margin. Under Hendrick, the resort was able to secure several grants from the state government, which helped fund other improvements such as a summer mountain bike park. Combined with good winters and increased marketing, Ski Rio was also profitable for the 1994-95 season.

Hendrick also purchased Panadero Mountain in Colorado and renamed the resort to Cuchara. In June of 1995, Hendrick sold both Ski Rio and Cuchara to Donald and Philip Hines. The Hendrick brothers signed a $1.5 million promissory note to Magnolia Mountain Limited in June and signed a $2 million promissory note to Latter Peak Incorporated in September.

The 1995-96 season was all around a complete disaster, becoming the worst snow year in over 40 years. By January of 1996, the Hines brothers began laying off employees, though some had already quit over a payroll dispute. In May of 1996, Latter Peak filed suit against Ski Rio seeking to foreclose the resort. Ski Rio stated that it expected to resolve the dispute with Latter Peak quickly and announced that it would continue to operate for the 1996-97 season. Three additional lawsuits were also filed against the mountain, and combined all of these lawsuits sought close to $3 million from the resort.

By September of 1996, Magnolia Mountain Limited, which had previously owned the resort, filed suit to foreclose upon a $1.5 million mortgage held by Ski Rio. Despite some equipment being repossessed, the mountain continued to take reservations for the upcoming season. However, by November of 1996 it was announced that Ski Rio would be auctioned off in a foreclosure sale by early 1997. By December of 1996, it was reported that Ski Rio was late in filing insurance documents. This was followed by several more lawsuits against the mountain. However, these troubles didn't stop Ski Rio from opening on December 19th, 1996, with the mountain still operated by Donald and Philip Hines.

On January 1st, 1997, a 3:00 a.m. fire completely destroyed the Silver Tree Restaurant. While the blaze was deliberately set, no one was ever charged for the crime. On February 20th, Ski Rio was auctioned off to David Hendrick, the former owner. Hendrick stated that he would continue to try and find a new owner for the resort and also stated intentions to have it sold by the summer, adding that if the mountain was not sold by the winter he would not open it again.

By September of 1997, JNC Properties, headed by John Lao, purchased the second mortgage lien on Ski Rio, originally held by Latter Peak Corporation. JNC Properties stated intentions to have both Cuchara and Ski Rio operational. Thus Hendrick announced that the mountain would operate on a limited basis for the 1997-98 season. Ski Rio did not end up losing money for the 1997-98 season and boasted good snow conditions. The resort operated regularly for the 1998-99 season, though a poor winter forced it to close early. Ski Rio operated for the 1999-2000 season, though an extremely poor winter forced the resort to close on Monday, January 17th, 2000. The resort announced that pre-purchased lift tickets would be valid at sister resort Cuchara.

By July of 2000, Ski Rio and Cuchara both suspended all summer operations. Both resorts insisted that they were planning on reopening for the ski season, however by August John Lao announced that Ski Rio and Cuchara might not open for the winter. By November, Lao announced intentions to sell off Cuchara to another Texas-based developer pending US Forest Service approval, and also stated that Ski Rio would not operate for the 2000-01 ski season.

Ski Rio closed for the 2000-01 ski season, however the ski resort announced that it would operate on a limited basis for the 2001-02 season. Ski Rio sold several ski packages to multiple groups on this basis. However, by November of 2001 the resort's phones were disconnected and the buildings completely abandoned. Unsurprisingly, the people who had purchased Ski Rio vacation packages filed complaints with the Attorney General's office, and after much back and forth Ski Rio eventually agreed to refund cash to customers.

By April of 2003, Ski Rio Partners Limited was listed as a defendant in foreclosure proceedings filed by Magnolia Mountain Limited. Ski Rio continued to sit completely abandoned and unused. In 2008 the mountain was put up for sale and sold later that year for $6.5 million to Simex Invest Incorporated, a company based out of the Czech Republic. They hinted that skiing may eventually be brought back and rebranded the resort to Endless Blue. However, in 2009 Endless Blue sold both Poma triples and the beginner platter to Ski Lifts Unlimited, which in turn sold the lifts to East Coast ski areas. They also tore down multiple hotel structures and the base lodge.

By January of 2010, Endless Blue Resorts introduced cat skiing on the former slopes of Ski Rio. Today Ski Rio sits much as it did when it shut down in the early 2000s. Unlike Cuchara, there seem to be no plans for the eventual reopening of the mountain, and it seems extremely unlikely that it would ever happen.