Elk Creek Marina Sale

We are looking to transfer our contract for the concession operations for Elk Creek Marina, Lake Fork Marina, Pappy’s Restaurant and Morrow Point guiding.  The contract is with the National Park Service and can only be transferred to a new operator with their approval, which likely will include a review of the buyer’s operations experience and financial capability.  The current contract runs through the end of 2015.  The contract requires 4% of revenues (less gasoline taxes and fishing license costs) as rent plus an additional 1% contribution to a maintenance fund.

The price of the contract is $1 plus the current value of our “leasehold surrender interest (LSI).”  The exact value of the LSI is subject to a final NPS determination but is around $400,000.  Under NPS rules, the buyer would then have a contractual right to be paid back this $400,000 (or a figure adjusted for inflation and deterioration) at the end of the contract either by the next contractor or the NPS.  In effect, the $400,000 is something like a deposit which will be returned at the end of the contract.

Update: The NPS has agreed to buy out our $400,000 in Leasehold Surrender Interest, so the price of the concession contract is essentially zero!  Interested parties must convince the NPS they are capable of running the concession, and of course the new concessionaire must be able to fund the boats and other assets needed to provide the marina services.

Unlike in older NPS contracts, you are not obligated to buy our personal property (boats, tools, inventory) and we are not obligated to sell it.  However, we have already agreed to sell all store and restaurant inventory at 80% of cost, and we will offer very attractive pricing on tools and equipment.  We have uses for the boats in other areas, so we need to get good blue-book type pricing on them or else we will move them to another facility.

We have spent a significant amount of money fixing deferred maintenance and environmental problems at the lake.  We have constructed a brand new maintenance shop.  The wave break at Elk Creek has recently been replaced.  The NPS will soon be replacing the west dock at Elk Creek and the docks at Lake Fork are in pretty good shape.  However, the main docks at Elk Creek still need some repair work, and due to some original design flaws we still have some problems with the Elk Creek docks moving in high winds.

We would be happy to share several items with serious bidders

• Financials for the last 5 years.  We have lost money most of the last 5 years due to costs associated with inherited deferred maintenance and the poor quality of boats and personal property we were required to purchase from the previous owner.
• Recent inspection reports.  We also will make our on-site managers available for open discussions of issues in the contract area.
• Inventory lists (not yet ready) of assets that may be (but do not have to be) purchased.

Serious inquiries should contact Warren Meyer at warren@camprrm.com or 602-569-2333