Conneaut Lake Park Board of Trustees has issued and RFP to lease all or part of the park. This of course will get beat to death elsewhere, but of course we should be the first to mention it.
TRUSTEES OF CONNEAUT LAKE PARK, INC. PLAN TO PROMOTE PRESERVATION OF THE TRUST
On June 29, 2007 The Crawford County Court of Common Pleas appointed fifteen individuals to serve as trustees of Conneaut Lake Park (hereinafter referred to as the Park.)
The Trustees assumed control of a non-operating amusement park with more than $2.7 million in debt, and only a small amount of unencumbered cash in the bank.
The Park has suffered from decades of deferred maintenance, and certain assets have been permitted to dissipate through neglect.
From the proposals received from this offering, the Trustees will formulate and implement the design, content, and business model for the future of Conneaut Lake Park.
FINDINGS OF THE TRUSTEESThe Trustees have devoted considerable time to extensive study of the issues. Their findings are summarized below:
The net values of the assets of Conneaut Lake Park exceed the total liabilities by nearly three-to-one.
Conneaut Lake Park is absolutely a viable business entity, if operations are adapted to meet current and anticipated trends in the resort and leisure industries.
Certain profit centers should be operated or controlled by the Trustees during an interim period because they provide ongoing positive cash flows, or have the realistic potential to do so.
The Water Company can be, and will be profitable, but will require certain upgrades, including shut-off valves to each property served. It is noteworthy that the Park has not billed itself for water usage, enjoying free water since time immemorial.
The Park needs short-term operating funds in order to protect its assets until one or more phases of a comprehensive plan is executed. It is the intent of the Trustees to have one or more of these phases engaged within the next six months.
The Park needs significant capital infusions in order to survive as a profit-making entity. A portion of this capital will accrue if one or more phases of the comprehensive plan is approved by the court and implemented.
The preservation of the public trust would be best served by engaging in public/private partnerships to provide needed capital, while assuring public access to Conneaut Lake and developing the Park's full potential as a destination resort.
SHORT TERM STRATEGYThe Trustees have taken steps to preserve assets, and minimizing operating expenses. They have engaged in operating certain profit centers to determine viability, and those results have been encouraging.
CURRENT PLANS UNDERWAYThe Trustees have sought the assistance of Mr. Jack P. Lynch, Crawford County Planning Director, to prepare an RFP/RFQ for the basis of soliciting Request for Proposals/Request for Qualifications (RFP/RFQ) on a 3.6-acre parcel and additional areas and functions of the Park. The boundaries of this parcel are nearly identical to those of the parcel proposed for sale in early 2007. We are enlightened with the history and will be handling this area differently.
There are four significant differences between the Trustees' proposal for development and the previously presented proposal:
1. The Trustees are seeking to sell a leasehold interest in the land, as opposed to fee simple interest. The reversionary interest would permit a future generation of trustees to renegotiate fees for lease extensions, thereby preserving the public access in perpetuity.
2. Since this area contemplates residential development, a proposed term of ninety-nine years may be possible. The term you request must be justifiable.
3. The Trustees are compiling a comprehensive plan to attract private capital needed to preserve and enhance assets.
4. The Trustees have developed a schedule to resolve outstanding indebtedness, based on varying amounts of the proceeds of the sale of a leasehold interest.
Simultaneously we will entertain proposals for the development of other areas of the Park. These are identified in the RFP/RFQ. It is envisioned that the terms of these developments will be at least as favorable as those outlined in Area One.
In each scenario, the Board expects to have a varying sum of money devoted to reducing the debt, making reasonable modest capital improvements to income-generating enterprises and operating portions of the Park to maintain cash flow.
Ultimately the Trustees envision a time when all portions of the Park are developed and operating with adequate capital to sustain the Trust. The Trustees believe that the excess capital generated by long-term land leases, partnerships, and operations will accrue in investment accounts needed to accomplish the purposes of the Trust. Operation of all profit centers will be professionally managed, financially solvent concerns, with residual income accruing to the Trust. It is expected that, when lease holds are transferred that a lease assignment fee will be generated. The Trustees of Conneaut Lake Park, Inc. will, in effect, become an overseer and a holding company.
CONCLUSIONThe Trustees of Conneaut Lake Park, Inc. strongly feel that Conneaut Lake Park is a viable enterprise and should continue to be an asset to the region as well as an economic generator. The Trustees realize that this business model needs to adapt to changing market tastes, and it requires significant capital infusions in order to survive.
The Trustees are obligated by the Court and by our fiduciary duty to the Trust to qualify these offers through a public offering and ultimately a ruling from the Court.
We have condensed our timetable as much as possible to bring the results of our efforts to the Court and begin a new day at Conneaut Lake Park.
Thank you for your time and consideration in the future development of our Park.
Sincerely,
Trustees of Conneaut Lake Park, Inc.
INTERESTED, QUALIFIED, PARTIES MAY PURCHASE THE DETAILED RFQ/RFP PACKET FROM THE SIDE BAR ON THIS PAGE
