Greg Gerber posted on March 17, 2008 09:15
RICHMOND, Ky. -- There is a real foul stench floating across Lake Reba from Camp Catalpa back to Richmond City Hall. It’s not caused by raw sewage or trash or dead animals, but rather due to the manner in which Order 08-36 was quickly and quietly passed by the city commission.
Their vote approved the lease of 15 acres in Camp Catalpa to a “private group” for the creation of an RV Park. The private group is Lakeview RV Park LLC and the work will be done by A&T Holdings Inc., owned by Allen Grant Jr. and Tim Grant of Richmond.
The idea of an RV park may or may not be a bad idea. It does have some merit in adding to all of the opportunities in the city’s park system and it could even generate some additional funds for the city. However, the stench is not about the idea itself or the developers proposing it, but rather about the passage of this order in really sneaky, underhanded way. Here’s why.
On the published agenda for the commission meeting of February 26, there were three ordinances and eight orders listed to be heard. But a clear and detailed description of the proposal was omitted from the agenda.
There are other actions that contribute to this foul odor. The city government made statements in justifying their decisions not to seek bids for this project. Mayor Connie Lawson was quoted in our story justifying the no bid process. “We’re not paying anything,” she said. “We’re just sharing the profits.” City Manager David Evans said there was no advertisement for the bid because it was not something the city was bidding. Although that is true, they could have solicited bids and chose the one with the best plan and the best return on the investment of public land for private use. But they didn’t.
According to Evans, it is unknown how many spaces will be available and what the owners will charge for each space. So, all we know is that the city will receive 10 percent of the gross rents as stated in the lease. Even though they have no clue what revenues they could realize, Mayor Lawson executed the lease anyway. Shouldn’t we expect the city commission to be good stewards of the city’s finances?
So, how much revenue could this venture generate? Fort Boonesborough State Park will be charging around $25 a day per spot. They have 167 spots available. The lady I spoke with indicated they are open year round, but their busiest time is April through October totaling 214 days. Based on this scenario, that calculates to about $893,450 of revenue during the busy season. Ten percent would be $89,345.
Applying this to Camp Catalpa and assuming there will be at least 125 spots, the city could realize between $65,000 and $90,000 in annual revenues depending on the number of spaces and the cost to rent them. Since this will be operated by a “private group,” their rent will likely be higher than that of a state park. The city can also generate additional revenue through the sale of tokens, passes or tickets sold by Lakeview RV Park, LLC who will also receive a 10 percent commission on those sales.
But like the TV show Deal or No Deal, did they make a good deal? They don’t know because they didn’t try. They simply rushed this through without much thought or research.
SOURCE: Richmond Register