State parks commission discusses HSSP proposals

The State Parks and Cultural Resources Commission met virtually over Google Meet on April 11 at 9 a.m. to address proposals for concession operations at Hot Springs State Park. President Dr. Robert Tyrrell asked Deputy Director Nick Neylon to go over the Request For Proposals (RFP) process and said there were three RFPs submitted. 

Wyo Parks Concessions & Revenue Manager Stephanie Dillmon identified the three RRPs anonymously, labeled each by letters and gave their scores.

Proposal A was scored 2,786 and was described to “include renovation and upgrades to the existing Hot Springs Hotel and Spa at the conclusion of that contract in 2026. The proposal included comprehensive updates to the facility, such as a redesigned lobby, bar and restaurant space, improved food and beverage options, a new mineral pool, and glamping teepees along the riverfront. The proposal did not include a new aquatic facility other than replacing the existing freshwater pool and mineral hot tub with a new mineral hot pool.”

Dillmon said Proposal B was scored 5,213 and included “renovation and upgrades after the expiration of any current contracts to the following. For TePee pools, they proposed full reconstruction to transform the facility into a new spa and wellness center, which would be more adult-oriented, quiet, relaxing, and focused on the healing properties of the waters.”

“For Star Plunge, they proposed renovations and upgrades to the existing facility while preserving the mid-century historic theme. The facility would have a family-focused atmosphere with a poolside diner and more kid-friendly water features like slides and swimming pools. 

“For the Hot Springs Hotel and Spa. They proposed a complete rebuild or renovation. It takes more advantage of the river area. It would include upgraded food and beverage options, a larger outdoor pool, a riverfront sitting area, and more. Potential other offerings in that proposal included potential management of the state bathhouse, nature trails, events and for entertainment, a drive-in theater, a brewpub, glamping facilities such as airstreams or canvas tents.”

Dillmon said Proposal C was scored 3,379, and it “included renovations and upgrades to the existing Star Plunge facility at the conclusion of that contract. The proposal would put new features such as a new splash park replacing the vapor cave, new pizzeria and ice cream parlor. It also proposed a potential management and some improvements to the state bathhouse. That proposal did not include any hotel or banquet facilities.”

Dillmon said regarding the scores, the maximum possible was 6,000. She also said, “The evaluation committee’s recommendation for the winner of the proposals is proposer B, and we seek the Commission’s recommendation.” 

During questions from commissioners, they said that Proposal B asked for their agreement to be for 40 years and the commission felt that the duration would be appropriate. Proposal A requested a 50-year term and Proposal C requested 40 years. 

It was also mentioned that the Star Plunge management agreement expires at the end of 2024 and the Hot Springs Hotel and Spa management agreement ends in 2026.

Regarding the commission’s ability to negotiate the contracts, Dillmon said, “We do have to follow those guidelines in statute and in rule, and in part of those requirements, we have to consider those three proposals based on what was submitted at the time. We do have room to negotiate somewhat in our contract negotiations when we have selected a bidder. But as far as selecting the bidder, we have to judge them on the criteria we put forth and what they submitted to us.”

According to President Tyrrell, the bid proposals were reviewed by a six-person team. They were reviewed independently of one another, and they were aware of the bidders’ names.

Regarding releasing the names of the three bidders to the public, Dillon said, “The process would include, first, your recommendation to the director. Once the director makes his final decision, we will ask the Office of Procurement to make the announcement, which they would do, and then we would follow that up with a press release announcing the names of all bidders. And the winner.”

President Tyrrell then opened the meeting for public comments. Multiple people presented comments and questions, however no answers to questions were given during the meeting.

Many comments were in support of the Star Plunge and it being a family business. Other comments were voiced against out-of-state or out-of-country entities coming in to take over the Star Plunge.

Comments included questions about the lease agreements involved and some voiced their concerns that Thermopolis would turn into a Bozeman or Jackson Hole and that developers would eliminate small business owners. Some family members of Star Plunge and owner Roland Luehne also voiced their concerns.

Near the end of the public comment section, Star Plunge owner Roland Leuhne said, “Hello, commissioners. Thank you for having this meeting. As you know, for 49 years, our goal was always to make the pool better. We put money back into our pool nonstop. As you know, the pools are a very, very corrosive environment. The environment is very harsh on all equipment and everything. It’s just a monster, and it’s a constant upkeep, and it’s an upkeep that we have mastered, and I believe done well. When I say done well, I mean that if you look at our performance, I could easily tell you that, yes, I have around 100,000 visitors a year, and it keeps going up every year from the things that we do. If performance and how we’re doing for a community is important, look at our performance and how well we’ve done in the last 50 years, and how the pool has changed in the last 50 years. We continue to bring people to Thermopolis for what we’re doing, and we believe in it. Our heart is the pool. If you bring in somebody else and they’re going for profit, they won’t have the heart or the family atmosphere, the things that we do in their work that people see in the pool. So before you make a decision, think about, and not to be mean, the Tepee. It’s a great place, but it takes a lot of hard work and the Tepee, a beautiful place, but it takes more than just somebody getting paid by the hour. They have to put their heart into it. My family has done that. So before you make a decision, please think about what you’re doing and what will happen to Thermopolis. Thank you.”

Deputy Director Neylon asked to take some time to answer some of the repeated questions asked during the public comments sections. Neylon said, “There were a couple of comments about honoring the lease, at the Star Plunge in particular. I have to note that there is no existing lease at the Star Plunge or the Hot Springs Hotel. Both properties, again, are operated under management agreements that have upcoming expiration dates. There is no lease.” 

Neylon continued and said, “There’s also no protest process for this decision. Once the commission and the director make their recommendation and it’s approved by the Office of Procurement, that is the decision. There is no protest process.”

“There were a lot of people who made comments about fear of out-of-state entities coming in. I wanted to point out that the Hot Springs Hotel, the Best Western, and the TePee are all operated by out-of-state residents.”

Neylan also addressed the question asked, does Roland Luehen of the Star Plunge have access to the data regarding the upgrades? Neylon replied, “I thought that was a very thoughtful question. and, yes, we have regular staff on site, have regular conversations daily, if not weekly, conversations with Roland. We do annual, regular inspections and other events with the Star Plunge as all of our sites. And, we incorporate those comments that we repeat into those conversations with all the concessionaires there in Hot Springs.”

Neylon added, “There were some comments about not trying to work with the existing folks or operating management group to secure a long-term lease. Unfortunately, it just couldn’t be farther from the case. We’ve spent the better part of the decade trying to negotiate a long-term lease with both the Hot Springs Hotel and the Star Plunge.”

Neylon concluded, “Another important question they came up with was regarding treaty access, and we take that very seriously, and we do, continue to provide the free access that’s guaranteed by the treaty through our state bathhouse and that will always remain the case. That will not change.”

Stephanie Dillmon asked for those who had additional questions and comments to email them at wyoparks@wyo.gov. President Tyrrell added, “This commission is established as an advisory commission to the director of the State Parks and Cultural Resources Agency, and so, he will make his decision. There is still more time to have members of the public get answers to questions that they didn’t seem to get answers to yet.”

President Tyrrell also said, “Having lived in Wyoming my whole life, Thermopolis is an awesome gem in the state. It’s filled with gems. We love our state and we want the best for it. There’s an old adage in business and professions that says, ‘If you’re not improving, if you’re staying the same, you’re declining’. And so, as with everything, we want to make sure that the treasures that are the hot springs of Thermopolis, can be shared with as many people in Thermopolis throughout the state, and obviously with the public input, from around the entire United States. That world class experience that can be associated with a treasure like the waters of the world’s largest hot spring…can be maintained…If we can have an opportunity to maintain a world class experience, I think we should take advantage of that.”

The commissioners then voted and unanimously passed the approval to recommend Proposal Bid B to Dave Glenn, Director of the State Parks and Cultural Resources Agency. Commissioner Green recused herself from the final vote.

The agency will make an announcement once the director has made a decision.