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Editorial by William Thornton: We Need Details for State Park Cabin Plan

October 20, 2016 by azheritage2

Source: Special to the Arizona Daily Star, October 14, 2016

Things are looking up for Arizona State Parks. Visitation and gate receipts are up. Instead of proposing closures due to reduced funding, the State Parks Department is now soliciting proposals to build 100 new cabins in nine parks. Great news for parks and many thousands of visitors, right? Maybe so, but the devil’s in the details precious few of which have been made public.

According to reporting in the Arizona Daily Star and the Associated Press, the park system will pay a fraction of the upfront costs with most to be paid by the vendor. No percentage is given for the state’s “fraction,” but the estimated $963,300 will come from two funds, one from a tax on boat fuel, and the other source is not specified.

Reportedly the proposal for new cabins was approved by a “legislative oversight committee.” Historically state park operation has been overseen by an independent board that meets quarterly and provides opportunity for citizen input. A bill to abolish the State Parks Board did not pass this year, but will be reintroduced when the Legislature convenes in January.

The vendor and state parks will share rental revenue. No percentages or projected dollar amounts were provided, but the agreement raises a critically important question. If revenue is to be shared what about potential losses?

Average occupancy of the existing 28 cabins in Arizona State Parks is 52 percent. Senior financial analyst Micaela Larkin of the legislative budget staff told state legislators at a Sept. 21 hearing: “The question is whether that rate can be duplicated when there are many more cabins.” The bigger question is: Can the cabins turn a profit at 52 percent occupancy? Industry sources give the break even point for hotel/motel operations as approximately 60 percent. National occupancy for the week ended Sept. 24 was 72 percent. Build them and they will come; but will they come in large enough numbers to make it pay?

Will new cabins generate significant revenue for state parks? Will taxpayers fund potential losses? At this point we simply don’t know. Presumably the State Parks Department will have oversight responsibility for this public-private venture. Given the state of Arizona’s dismal failure to maintain effective oversight of private prisons that’s hardly reassuring.

The decision to add new cabins was made with no involvement by the State Parks Board or public input. Worse yet, if the parks board is eliminated, the public will have no voice in the management of our parks. That is simply not acceptable. The Legislature, governor and parks director don’t own the parks — we do.

Many new legislators will be elected in November and seated in January. If you believe, as I do, that voters and taxpayers should have a voice in how our parks are managed, speak up as soon as election results are known. A flurry of new bills including abolition of the State Parks Board will be introduced early in the upcoming legislative session.

Legislators, especially freshmen, will be bombarded with calls and e-mails from constituents. Your message is more likely to be heard if you speak up early. Also, please respectfully remind Gov. Doug Ducey that they are our parks and we want a voice in how they are managed.

William Thornton is a second-generation native Arizonan, conservationist and outdoor enthusiast. He serves on the boards of the Arizona Heritage Alliance and Friends of Ironwood Forest.

What We Mean By “Government At The Speed of Business:

February 25, 2023October 2, 2016 by azheritage2

Source: Office of the Governor Doug Ducey blog, September 30, 2016

In January 2015, during his first State of the State Address, Governor Doug Ducey stated loud and clear that “our government needs to operate at the speed of business.” This week, a number of announcements prove that Arizona’s government is closer to reaching that goal, with agencies working more productively, more efficiently, and doing so at a lesser cost to taxpayers.

On Wednesday, (September 28, 2016) the Governor’s Office announced that Arizona State Parks achieved record visitation and revenue in fiscal year 2016:

More than 2.68 million people visited the parks, contributing $16.4 million in revenue to the State Parks system, an increase from $14.4 million in fiscal year 2015. Visitors to Arizona State Parks contribute nearly a quarter of a billion dollars to Arizona’s economy, according to a 2014 Northern Arizona University study.

“Arizona State Parks exemplify the best of Arizona,” said Governor Ducey. “We are thrilled that more Arizonans and tourists are embracing the adventure that our stunning parks offer, from the Kartchner Caverns in Benson to the Tonto National Bridge in Payson. A financially healthy park system is key to preserving our state parks, and growing attendance will provide further economic benefits to communities throughout Arizona.”

Cattail Cove Proposal gets Legislative Committee’s Backing at $6.4 million

September 29, 2016 by azheritage2

Source: Today’s News-Herald Havasunews.com – September 27, 2016

Editor’s note: An earlier version of this story misstated the price of each cabin. The information came from the Associated Press. The state would have the option to purchase each cabin at a price of $4,500 after six years, according to a state parks spokesman. The story has been updated to reflect the accurate information.

An Arizona legislative committee has backed a planned $6.4 million redevelopment of Cattail Cove State Park, as well as millions more dollars toward parks throughout the state to improve amenities at state campgrounds.

The funding may mark the reversal of a downward trend in budget cuts to the State Parks agency since 2012, according to records from the Arizona Budget Appropriations Committee. Four years ago, State Parks operated with a budget of about $96 million. By 2016, that budget had been slashed by more than $60 million, according to budget records.

The state also will fund $2.5 million in projects at five other parks to fund expansion and improvements to existing state parks such as Buckskin Mountain State Park near Parker and Alamo State Park in La Paz County. The state also recently announced it was planning a new state park near Contact Point.

“I’m excited to see them renovating and refurbishing the area,” said State Rep. Sonny Borrelli, R-Lake Havasu City. “It’s going to positively affect the district and obviously Havasu, and it’s very exciting to see the state paying attention to Mohave County. We are the gateway to Arizona.”

Borrelli believes the renovations will have a positive impact on the Havasu region’s economy as state lands see improvements and upgrades over the next several years. Proposed renovations to Sandpoint Marina and Cattail Cove have lain dormant for years, Borrelli said, and completing those renovations will bolster tourism and economic development for the Havasu region.

Lake Havasu Marine Association CEO Jim Salscheider says potential development of Cattail Cove and Sandpoint Marina would make Havasu’s future much brighter. Sandpoint Marina was once a popular destination for RV motorists, but was closed in 2015 when State Parks chose not to renew the operators’ lease over the land.

“Sandpoint has great views and a marina,” Salscheider said. “I see a great future there. Cattail Cove is a great campground, and they can have high-end motor coaches at the marina – it will bring in two kinds of clientele coming from California. The renovations would also spread boating traffic out, which would be a big plus for the lake and the boaters who use it.”

Through the deal, six of Arizona’s state parks will have the option of purchasing 100 cabins from an undisclosed vendor, at a cost of $4,500 per cabin after six years, and then receive 100 percent of rental revenue, according to the Associated Press.

The state currently maintains 28 cabins at Roper Lake, Alamo Lake, Dead Horse Ranch and Lyman Lake State Parks. The rate of occupancy for each of those cabins is about 50 percent this year, and State Parks officials believe there is a market for more of them throughout Arizona.

Rebounding Arizona State Parks System Plans to Add 100 Rental Cabins

September 28, 2016 by azheritage2

Source: KJZZ 91.5.com – September 28, 2016

Arizona’s rebounding state parks system plans to more than quadruple the number of rental cabins at parks statewide, one of several major projects on the drawing board to improve and expand parks facilities less than a decade after the system struggled to keep parks open during the Great Recession. A legislative oversight committee’s recent endorsement of the plan set the stage for Arizona State Parks to solicit proposals from private vendors for 100 additional cabins at six parks.

The plan would have the park system pay a fraction of the cabins’ up-front costs, with most of the costs paid by a vendor who would provide the cabins. The state and the vendor then would share the rental revenue.

Parks where new cabins would be located are Cattail Cove at Lake Havasu, Lost Dutchman in Apache Junction, Dead Horse Ranch in Cottonwood, Roper Lake near Safford, Alamo Lake north of Wenden and Buckskin Mountain near Parker. There are now 28 cabins at four parks: Roper Lake, Alamo Lake, Dead Horse Ranch and Lyman Lake near Springerville.

THE REASONING BEYOND THE PLAN

Executive Director Sue Black said the basis for the planned additional cabins is a belief that there’s a market for them. “Visitor service is the No. 1 thing,” she told the Associated Press. “My theory is that people want to rent them.” Cabins are particularly useful to tourists visiting Arizona from other countries who can’t easily camp, she said.

“They don’t have all the equipment and gear to go out camping per se,” Black said. “There is the demand out there.” Investments in park improvements pay off, she said. “We electrified 60 sites at one of the parks and our revenue doubled.”

A LOOK AT THE NUMBERS

The money to pay for the state’s anticipated $963,300 share of the up-front costs would come from two special funds, including one fed by taxes on boaters’ gas purchases. The state would have the option to purchase the 100 cabins from the vendor for $450,000 per cabin after six years and then receive 100 percent of the rental revenue.

“It’s creative financing is what it is,” Black told the AP. “Raise revenues and re-invest … to generate more revenue. Rinse and repeat.” The occupancy rate for the existing 28 cabins is about 52 percent, according to legislative budget staff. Senior Fiscal Analyst Micaela Larkin told lawmakers during a Sept. 21 committee hearing that the question is whether that rate can be duplicated when there are many more cabins. Black expressed confidence about that during the AP interview. “There is the demand out there,” she said. “I think it’s an exciting time for the parks.”

TIMES HAVE CHANGED

The oversight committee endorsed the cabins project at a meeting when lawmakers also backed a planned $6.4 million redevelopment of Cattail Cove State Park and a total of nearly $2.5 million of projects at five other parks. The current lineup of expansion and improvement projects stands in sharp contrast to the beginning of the current decade when during the Great Recession the parks system struggled to keep parks open, let alone add facilities or amenities.

Legislators faced with plummeting tax revenues raided the parks system’s funding, and auditors reported in 2012 that reductions or shifts of park system funding totaled $72 million over a five-year period. Several parks were closed, and others went to seasonal status and operations as the agency shed personnel to cut costs. The state resorted to asking local governments and volunteers to help keep some parks open.