Holding a special meeting May 19, the central question weighing heavily on the Grand Marais Park board was whether or not the park should open for overnight recreational camping this summer, assuming, that is, that recreational camping will be allowed by the state beginning June 1.
The board met online via ZOOM.
After quite a bit of discussion and several resolutions that failed 3-2, the park board passed a unanimous motion to keep the recreation park closed to overnight guests through June 15.
With the loss of $50,000 due to canceling overnighters in May and based on canceling the current 180 reservations scheduled between June 1 and June 15, the park will lose a total of $95,000.
At the heart of the meeting was whether or not the park can safely open the three bathhouses.
In light of the dark cloud cast by COVID- 19, Park Manager Dave Tersteeg wondered how possible it would be to keep the bathhouses clean and COVID-19 free.
“Even with ample signage, it is difficult to imagine the consistent, proper social distancing within these heavily used common areas. All of our bathhouses are less than two thousand square feet and are petitioned into his or her halves. Showers, sinks, urinals, and toilets are all adjacent to each other and less than six feet apart,” he said. “A requirement to wear a cloth face mask covering while using bathhouses would be in line with guidance for other shared spaces, like retail stores,” he said, adding, “Signage at doorways instructing guests not to enter if there are more than X number of people inside can also be posted, but not diligently enforced. Internally, the biggest challenge is forecasting the staffs’ willingness and availability to sustain the enhanced cleaning (every two hours) recommended for public restrooms.”
Even if the bathhouses remain closed, the park could open for monthly and seasonal business. But that would come at a substantial cost to the park’s overall revenue.
“Monthly rates are heavily discounted versus nightly rates,” meaning the park would take in 50 percent less revenue than usual, Dave told the park board.
Converting the park to monthly rental would result in significantly less revenue than nightly operations, but Dave noted that would be better than a full idling of nightly site scenarios.
Explaining further, Dave presented the concept of the budget.
Last year the park collected $288,000 from 90 monthly sites. Those rentals averaged $3,200 per site for the season. Meanwhile, the park’s 210 nightly sites brought in $865,000, averaging $4,119 per site for the season. Of those 210 nightly sites, only 65 are full hook-up (with sewers) 82 are electric/ water, and 57 are primitive tent sites. With the bathhouses closed and assuming the park could sell all 65 full hook-up nightly sites as monthly sites, the park would take in roughly $200,000 in revenue versus $867,000 if all 210 sites could be rented as nightly.
Expense reductions
Should the recreation park remain closed to overnight rentals the projected 2020 $1.336 million budgeted revenue would fall by $667,000.
However, noted Tersteeg, savings could be found in several ways. A 50 percent cut to labor would result in a $50,000 savings.
Other cuts include $30,000 in utility fees, $30,000 in credit card processing fees; $10,000 in the reduction of garbage pickup; $5,000 in the reduction of needed cleaning supplies; $5,000 in advertising, and $5,000 in BookYourSite transactions.
All told, those reductions add up to $135,000. Tersteeg said the park could defer its annual $145,000 capital funds payment to the city, which would bring the savings to $280.000.
“We started the year expecting to net roughly $506,000,” Dave said.
“So, if we don’t open to overnighters and defer capital fund transfers, we might expect to net roughly $121,000 versus $506,000. That’s $385,000 less if we don’t open to overnighters and keep the bathhouses closed and defer the capital fund transfers.”
On Wednesday, May 20, Minnesota Governor Walz announced starting June 1, it would be okay to open campgrounds that offer socially distant configurations. That same evening Tersteeg told the Grand Marais City Council that he had received a long list of guidelines from the DNR the park must follow to operate bathhouses for overnight campers. He hadn’t read them yet but said it might be possible to open before June 15 if the park could meet the standards set fourth in those guidelines and had time to make any needed changes.
The park board meets June 2 to discuss the ever-changing rules.
Until more is learned, the park board will look for the best way to keep the business in the park viable and the people—employees and guests—safe as possible from the COVID-19 coronavirus.
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