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Major Concession Upgrade Planned For Virgin Islands National Park

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A concessions contract is up for bid at Virgin Islands National Park, and part includes a small food shack at Trunk Bay/Kurt Repanshek

The newly-issued prospectus for concessions at Virgin Island National Park includes the demolition and rebuilding of much of the park'™s hospitality facilities, most of which are at Cinnamon Bay Beach.

A smaller food and beverage concession at nearby Trunk Bay is also included in the contract and will be rebuilt.

Current Concession

The existing concession at Cinnamon Bay includes 40 rustic cottages. 55 canvas tents, 31 bare tent sites, a restaurant, general store, and beach shop. The cottage units do not have private bathrooms or showers, requiring that guests utilize four community restrooms and showers in the campground area.

Cottage rates range from $81 to $105 per night during low season (5/1 through 12/14) and from $126 to $163 during high season (12/15 through 4/30). The 55 tent sites have canvas tents on raised wooden platforms. Nightly tent rentals range from $67 to $93, depending on season.

A casual-style restaurant is open for breakfast, lunch, and dinner, while a mobile food cart sells snacks near or on the beach. The general store offers limited groceries and other merchandise.

The small Trunk Bay operation includes a snack and gift shop.

Requirements of the Draft Contract

The draft contract requires the new concessionaire (or the existing concessionaire should it be awarded the contract) to demolish the existing cottage units and construct 40 units, each approximately 225 square feet, on the same footprint. Bidders will propose their own design, although the new cottages must be able to withstand hurricane-force winds, high humidity, and salt air.

NPS estimates the cost of the demolition and construction at approximately $3.5 million, all of which will be paid by the winning bidder. All work is to be completed by 2018.

The tenting area is to receive new platforms that will accommodate 55 'œeco-tents.' The new tents are to have better airflow and an improved appearance compared to the current canvas tents. Estimated cost for construction work in the revamped tenting area is $27,000.

According to the NPS prospectus, total cost of the 55 replacement tents is estimated at $707,000, or nearly $13,000 each.

The contract also requires replacement of the Trunk Bay snack shop and gift shop with newer facilities with an improved appearance and service flow.

The purchase of two mobile food carts at an estimated cost of $10,000 each is also a requirement of the contract.

The overall initial investment for a new concessionaire is estimated to be approximately $3.4 million, the major portion of which is to pay the existing concessionaire for its existing possessory interest. The draft contract requires that the concessionaire allocate 4 percent of annual gross revenues to a repair and maintenance reserve for the first three years and 1 percent for the remainder of the contract. The minimum franchise fee is listed as 1.8 percent of annual gross revenues, although bidders can improve their offers with a higher percentage.

Concession Revenues

Annual revenues over the three years ending in 2013 showed slight increases and averaged about $2.95 million. Approximately $800,000 in revenues originated from lodging and $1 million from food and beverage sales. The remainder came from campground fees ($400,000) and retail and equipment rental ($750,000). The contract has a term of 15 years beginning on June 1, 2016. Proposals are required in the NPS Atlanta regional office by 4 p.m. on July 10.

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Long overdue


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