Parties prepare for negotiations over Hot Springs State Park leases
CHEYENNE -- State officials will look for increased accountability and more money from two swimming operations at Hot Springs State Park in Thermopolis when the sides meet later this month to negotiate new leases.
Representatives from TePee Pools and Star Plunge, both privately owned pay-to-enter water parks and spas located within Wyoming's most-visited state park, will meet with Department of State Parks and Cultural Resources staff in Thermopolis on Oct. 14 to discuss new 20-year leases.
In a conference call Tuesday, the state Parks and Cultural Resources Commission largely backed a new draft lease agreement that would include, for the first time, a penalty clause allowing the state to fine the two facilities for any lease infractions. The state's draft lease also would charge the two concessionaires 3 percent of their gross revenue; currently, the facilities return 1.25 percent of their revenue to the state.
Parks and Cultural Resources Director Milward Simpson said adding a penalty clause would allow the agency to address any lease violations without having to revoke the lease altogether. Specific details about penalties haven't been worked out yet, he said.
The rate change to 3 percent, Simpson said, is close to what's charged in similar lease agreements agreed to in other states.
"We wanted to see a better fiscal return for the state of Wyoming," he said.
Parks and Cultural Resources had proposed making these new rules a state statute, but a legislative committee nixed that idea in late August.
Another issue that may arise is whether TePee Pools even needs a new lease. Simpson said TePee Pools' 30-year lease expired in 2007; TePee's owners dispute that, saying that lease remains active as it provided for extensions through 2026.
"If they want to renegotiate a new lease at this time, we're certainly willing to listen to what they have to say," said Bill Moriarity, a TePee Pools board member.
Star Plunge's 50-year lease ended in April 2008.
The two facilities have been operating on a year-to-year lease since then. However, they need signed leases to show banks in order to receive loans required for any major renovations, Simpson said.
Hot Springs State Park is by far Wyoming's most popular state park. According to Parks and Cultural Resources, almost 1.2 million people visited the park in 2008 - about 40 percent of the entire state park system's attendance that year.
State officials and concession owners all said they wanted to work together in good faith, referring to each other as "partners."
"I'd like to think that we're pretty easy-going," said Roland Luehne, whose family has owned Star Plunge since 1975. "I'm hopeful that both us and the state can get together and pound out a lease that will be good for our community."
But Luehne said he was concerned about the state creating penalties for Star Plunge.
"I sure hope something like that doesn't come about, because you can get penalized for anything," Luehne said. "You have snow on your sidewalk -- that's a penalty. I hope it's nothing like that."
Moriarity, while reluctant to comment on any specifics of the state's lease proposals, said he hoped to reach an agreement that's fair to both his company and the state.
"What's best for Hot Springs State Park is in the interests of the state of Wyoming and is also in the interests of the TePee Pools," he said.
Contact capital bureau reporter Jeremy Pelzer at (307) 632-1244 or jeremy.pelzer@trib.com.
Posted in State-and-regional on Sunday, October 4, 2009 12:00 am Updated: 1:07 pm. | Tags: Wyoming, News, State, Regional, Cheyenne, Jeremy Pelzer, Hot Springs State Park, Thermopolis, Tepee Pools, Star Plunge, Department Of State Parks And Cultural Resources, Department Of State Parks And Cultural Resources Commission, Milward Simpson, Bill Moriarity, Roland Luehne
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