Officials discuss upcoming changes to Hot Springs State Park

Brooks Jordan, District Manager of Wyoming State Parks in the Big Horn Basin and Chris Delay, Hot Springs State Park Superintendent, presented themselves to both the Hot Springs County Commissioners (HSCC) and the Thermopolis Town Council (TTC) on May 7 at their respective meetings to discuss upcoming changes to Hot Springs State Park concessions. The two then scheduled a public Q & A session, held Monday at the Smoking Waters shelter. A follow up Q & A session is set for Thursday, May 16 from 5-6 p.m. at the same location.

Jordan read a series of statements at both the town council meeting and the commissioners meeting. At the HSCC meeting there was no one from the public who gave any comments, however, at the TTC meeting, when Mayor Adam Estenson opened the meeting for public comments several people spoke. The following is a summary of Jordan's statement, the responses from both boards, and the public comments.

Presentation

Jordan started out by saying he was pleased to be able to give you this update and explained that he was going to read a little bit from the master plan for Hot Springs State Park, which was finalized in 2016, "mainly to give some historical perspective and context on how we got to where we are today with the concessions in the park. Hopefully we can clear up some information and concerns that we've heard as of late," he said.

"I think it's important to point out that the master plan process started in early 2015 and took place over almost a two-year time period, and it involved more than five community information meetings where the community was entered into the process for the master plan. The steering committee, who really led the process for the master plan consisted of members representing the Hot Springs County Commissioners, the Hot Springs County Recreation District, local legislators, members from the Economic Development Board, the Dinosaur Center, the school district, the town of Thermopolis, the county Travel and Tourism agency, the chamber director, some state parks folks, Gottsche Rehab, private citizens, Weed and Pest and tribal folks were reached out to as well, and for part of that process, with the master planning steering committee," said Jordan.

History

Jordan continued, "I'm going to get a little bit of history reading right from the master plan itself. Beginning in the late 1800s, Hot Springs State Park was developed for therapeutic and recreational use of thermal waters and enjoyment of the natural setting. Several of the earlier bathhouses and hotels are gone. However, the park core, with its stately trees, historic structures, open lines and free State Bath House were made. Over time, new uses and buildings have been added through concessionaire agreements, leases and by the state. Today, some concessionaire properties are in disrepair due to age and condition of facilities and utilities. Again, this is from the 2016 HSSP Master Plan."

Concessionaires

Jordan stated that currently, two concession facilities, the Plaza Hotel and the Tepee Pool, have long-term leases. He added, "Room for expansion and diversity of offerings for both lodging and aquatics is needed to address growing therapeutic and recreational needs and changing demographics. Updated and diverse product offerings in lodging and aquatics would provide a more cohesive, year round experience where facilities complement rather than compete with one another."

"Further on, the master plan executive summary, reads, Over the years, Hot Springs State Parks' legacy as a premier health, wellness and outdoor destination has diminished. It's been more than 30 years since the master plan was completed. Today, some concessionaire operating facilities are deteriorated with an extensive need for improvement and redevelopment. Changes have occurred in the historic park core and natural areas. Facilities are not keeping pace with contemporary outdoor activities. Recreational trends and changing demographics. Most significant changes are the thermal waters of the Bighorn Spring, which are diminishing from historic flows, requiring a review of resource management. So again, that was from the 2016 master plan," said Jordan.

Current situation

Jordan then explained that he was going to cover a couple of things, some historical points of interest, to try to paint the rest of the picture of "how we got here, where we are today."

He stated, "The state has invested in trying to have some of the ideas from the master plan come to fruition. One example is the arch entrance way that was completed a few years ago at the main entrance to the park, that was close to a $1 million project. The master plan itself called for more than $25 million worth of investment from private and state funds, and we're still on track to continue progress with projects that came from the master plan."

"Some noteworthy dates about the concessionaires specifically are that the Star Plunge original long-term lease expired on April 3rd, 2008, and the original long-term concession lease for the Hot Springs Hotel and Spa, formerly the Days Inn, expired in 2012. At that time, the Star Plunge in Hot Springs Hotel and Spa were operated on a month-to-month and year-to-year basis without a formal management agreement," said Jordan.

He then explained, "Right about that same time, actually a few years later, closer to 2019, the legislature directed state parks and passed a bill that required us to use an RFP process, a request for proposals in order to enter into any long-term lease agreements with concessionaires, greater than five years. We were also directed to no longer use month-to-month or year-to-year agreements with our concessionaires. So we were under a new direction at that point. But about that same time, we started to enter into one, 2 or 3 year agreements with our concession operators, the Star Plunge and the Hot Springs Hotel. Later extensions were offered to both and eventually signed and agreed upon. The current management agreement for the Star Plunge expires on December 31st, 2024. Current management agreement for the Hot Springs Hotel and Spa expires on October 31st, 2026, about two and a half years from now. That takes us to 2019 and 2021. 

RFPs

"We issued our first RFP again, request for proposals for long-term operation of the Star Plunge facility and the Hot Springs Hotel and Spa. We received one proposal. We negotiated with that proposer and were unable to come to terms for a long-term contract, although one was offered. So about that same time, Covid started to happen and the pandemic kind of slowed things down for us and our progress with signing long-term agreements with the concession operators. Fast forward to 2023. We issued another RFP to another attempt at entering into long-term agreements with, for the concessions in the park," said Jordan.

He added, "We issued that RFP in November 2023, and the main component was really a new hotel conference center and aquatic facility, and the need for that was really outlined to us through communications with the community, including Hot Springs County, local tourism folks and the master plan. In March of this year, the RFP closed, and we received three bids, three proposals."

"An independent committee of evaluators was assembled, and all reviewed those three proposals independently of one another, using the same scoring criteria and evaluation metrics. We made a recommendation to the State Parks and Cultural Resources Commission, who accepted our recommendation to award the bid to Wyoming Hot Springs LLC, who coincidentally owns the Tepee pool facility as of November of last year. The State Parks and Cultural Resources Commission then made a recommendation to our director, the director of State Parks and Cultural Resources, who agreed with that recommendation," Jordan said.

He added, "And ultimately, the RFP was awarded to Wyoming Hot Springs, LLC, for the redevelopment of the Hot Springs Hotel and Spa, the Star Plunge and the Tepee. So all three. What the future looks like in the coming weeks is that we will begin negotiations and detailed discussions with Wyoming Hot Springs, LLC. Their proposal outlined substantial renovations and some improvements to those facilities that I mentioned, including renovation of the Hot Springs Hotel and Spa facility into a new hotel and convention center. Part of that proposal also included complete renovation of the Tepee pool facility and potential future renovations and improvements to the facility where the Star Plunge is now. So we're going to begin discussions and negotiations with that group and hope to enter into a long-term agreement with them for what they outlined in their proposal by the end of this year. That's our goal." 

Future plans

Jordan explained that moving forward, it's probably going to take at least a few years to see major progress, although some renovations and improvements could be made within a year or two. A new hotel convention center, something of that magnitude in the order of $15 to $20 million, could take three to five years before it comes to life.

"As we have in the past, we will continue to share information, in the community with the county commission, with the mayor and town council and private citizens and local stakeholders and businesses as well. We plan to have some additional information sessions and public meetings in the coming weeks and months to outline the progress with our work and also to talk about some of the specifics, as it relates to what these facilities might look like in the future," said Jordan.

Clarifications to concerns

Jordan explained he wanted to clarify a few of the public's concerns that have come to light.

"One concern is that free access to the mineral water is in jeopardy and could no longer be a thing. I just want to make sure that everyone understands that free access to the mineral water will always be a thing at the Bath House. There are no plans to do anything with that. Although there has been some talk of a concessionaire operating the bathhouse, that doesn't mean it won't be free. The Bath House will always be free and open to the public," said Jordan.

He added, "We will make sure that admission prices and use prices for any new, improved facilities are affordable and reasonable for locals and Wyoming residents. We don't want people to get out priced and be unable to enjoy what they become accustomed to enjoying here. We have the ability to do that in our negotiation with this new company. We will work with the new operator to keep as many of the facilities open as possible. It's not our intent to close one down completely. They have expressed the ability to be able to do substantial renovations and improvements while operating the facility in segments."

This sums Jordan's presentation at both the HSCC meeting and the TTC meeting. His presentation at Monday's Q & A was shorter but contained similar information.

Commissioner's response

Following Jordan's presentation at the Hot Springs County Commissioner's meeting, chairman Tom Ryan asked Jordan if the state will provide funds themselves in addition to Hot Springs LLC.

Jordan replied, "Yes. We have an account which we call our special revenue account, which is really a capital improvement account, and those funds are generated through fees. It's not general fund dollars. We have committed, I don't have a dollar amount, a significant investment in seeing more components of the Hot Springs State Park master plan come to life by using some of those capital construction and special revenue account dollars."

Jordan added, "We also were directed by the legislature in, I believe, 2019-20 to set aside a specific amount of that money that we already had, it was actually $3 million. That money set aside is to contribute to seeing some of the things from the master plan come to life and also specifically address some of the concessionaire issues."

Commissioner Phil Scheel said, "I think I'm super excited about the opportunities that we have here...Things are so awesome right now. We're right on the precipice of amazing things happening in the park, amazing things happening up on the old airport property, amazing things happening in town, shooting sports complex, everything on the table. I mean, there we are, having an amazing time."

Chairman Ryan added, "Wyoming Hot Springs LLC, they've taken a little bit of a heat for just showing up, but when you talk about spending $15 or $20 million, you're investing in our community, you're not just showing up for the short term."

Commissioner Paul Galovich asked Jordan about the term of the lease with Wyoming Hot Springs LLC. Jordan replied that they offered 20 year leases but the new concessionaire could ask for more time and that Jordan said they might ask for a 40 year lease in order to amortize an investment of $15 to $20 million.

Galovich also asked about accommodations for the outgoing managers of the Star Plunge. Jordan replied, "I can elaborate a little bit, although we do expect potential litigation to occur. I think the two things that I can say are that going back even to the agreement that was signed in 1975 by the current owners family, there were stipulations that at the expiration or termination of that agreement, the property was to be returned to a natural state and all improvements were to be removed. That was a component of that agreement going back to the beginning and then all subsequent agreements that were entered into by the Star Plunge had the very same provision."

Jordan continued. "However, as you mentioned, there has been some concern raised by the current operator about compensation. State parks will not stand in the way of the current operator making an attempt to sell their improvements. Although, if the planned use of those improvements are to be sold involves future use, then we would have something to say. We have a vision for that property that includes updates, renovations and we want to make sure that the person coming in isn't burdened with having to take over everything that's there necessarily, although that could be a possibility."

" I guess, more specifically, to answer your question, yes, there would be an opportunity for the current operator to be compensated for some of their improvements and infrastructure there at the Star Plunge," said Jordan. That compensation would not come from Wyoming State Parks but come from the possible sale of fixtures from the present Star Plunge facility through a private sale.

One of the frequently asked questions on the Wyoming State Parks website regarding the upcoming changes at Hot Springs State Park and possible compensation for the current owners asks: Why not just pay the owners of the Star Plunge?  

The states response is "The agreements signed by Star Plunge management over the past decades, all make it very clear that they are not due compensation at the conclusion of the lease or management agreement. Concessionaires or managers are "compensated" through the operation of the facility over the term of the agreement.  The manager of the Star Plunge paid the State $200 per year from 1958-1989, then 1% of its gross revenue (ranging from $3,000-$8,000) until 2021, when it started paying $1,000 per month. These low rates allowed the manager to retain most of its annual profits.  

Town council's response

Following Jordan's presentation at the TCC meeting, council member Dusty Lewis asked, "Who was on the scoring committee?"

Jordan replied "There was a State Parks and Cultural Resources commissioner, myself, superintendent Chris Delay, someone locally from Thermopolis who's involved in the community, a State Parks and Cultural Resources Concession and Revenue Manager was also on that committee and a State Parks Deputy Director as well."

Council member John Dorman Sr asked, "What happens to the old operators?" Jordan replied their terms expire at the end of the agreements they previously signed and "they would no longer be responsible for operating those facilities."

Jordan also discussed concerns about fees and said, "There has never been any discussion about an entrance fee for the park. The Bath House will remain free always. and we do have the ability to not regulate per se, but have a heavy influence on the fees that are charged. If we feel that the fee structure that is proposed for accessing the facilities is too high, we can negotiate that with them and keep it affordable."

Mayor Adam Estenson said, "Change is hard, we acknowledge that, but today's normal was somebody's change yesterday...That is a reality. One of the main concerns has been affordability. Talking to some people in the community, we have kids in our own school district that have never swam at these pools because even the price they're at today is not affordable. I would want to make sure that we continue to advocate for that."

Council member Bill Malloy expressed that he heard of concerns about trees being removed or grass areas being taken away. Jordan replied, "As do I. We share in that concern and honestly, we don't see anything extremely drastically different from improvements, renovation, redevelopment, we don't have plans to turn anything into something that is not welcome in this community."

Citizen participation

At the Thermopolis Town Council meeting, public comments included concerns for the previous operators and their futures, taking a business from a local and award it to an out-of-state corporation and creating a monopoly, one citizen explained they have a "broken heart" for the situation and a large amount of support was shown for the local family.

Commenters stated their disagreement with the Wyoming State Park's decision "completely and utterly" and supported recommendations to boycott and not support the new concessionaire.

Some mentioned the need to maintain access for fixed income seniors to the healing waters of the hot springs and some asked about cold water use instead of hot water.

Jordan said, "There are no plans to create a cold, fresh water pool."

At the town council meeting and later at the Q & A session, a woman voiced concerns about the possibility of the new concessionaire going bankrupt.

Other comments involved wildlife in the area and sulfur deposits being removed. 

One person stated, "Every community has its flavor. Taste it and survive," which received avid applause.

Following the town council meeting, family members of the Star Plunge owner and other community members met with Jordan as he left town hall.

Public Q&A session

On Monday, Jordan and Chris Delay held a public Q & A session to discuss upcoming changes to Hot Springs State Park concessions. The event was attended by around 30 people and the variety of questions and answers given were of the same nature as that at the town council meeting.

Jordan and Delay said that there will be future meetings to communicate with the public, take questions, give answers and receive feedback from the community.

At this time, they do not have any proposed designs to share with the public but they plan on doing so later as the process continues.

The next Q&A

A second public Questions & Answers meeting will be on Thursday, May 16 in Hot Springs State Park at the at Smoking Waters Shelter across from the Big Springs at from 5-6 p.m.