Detroit Mountain Recreation Area 2010 Feasibility Study Conducted
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Detroit Mountain Recreation Area 2010 Feasibility Study Conducted by Members of the Board of Directors, Detroit Mountain Recreation Area, Inc. Executive Summary A rare and historic opportunity exists for Becker County to acquire a 200-acres piece of land, formerly used as a private downhill ski area, and designate it as a general public four-season recreation area. This vision, to create one of the most unique county recreation areas in Northwestern Minnesota, is now underway and includes a diverse mix of outdoor recreation opportunities. Thanks to the assistance and tremendous support from the local community, the successful preparation of the Detroit Mountain Recreation Area Feasibility Study is now complete and presented herein. Formed in February of 2010 with a vision to make the Detroit Mountain Recreation Area a reality, Detroit Mountain Recreation Area, Inc. (“DMRA, Inc.” ) is a 501(c)(3) non-profit organization with elected board members comprised of a diverse collection of local business owners and professionals who are passionate about building a healthy and economically viable community through outdoor recreation. DMRA, Inc. is dedicated to assisting Becker County in creating a long-term management and operation plan consistent with the Becker County Master Recreation Plan. It is important to note the DMRA Feasibility Study was completed with limited resources and on a voluntary basis, and not intended to address all concerns or questions that may arise. DMRA, Inc. would, however, request first opportunity to provide additional information or research data should the county request such information. The study herein reviewed a select number of development opportunities for the 200-acre site. The opportunities were included based on input from community members, site characteristics, potential for educational programming, positive impact on health and wellness, access, affordability, and economic stimulus to the area. While the development opportunities reviewed in the study are certainly not the only possible public uses identified for the site, they do provide a representative sample of the most prominent proposed activities. From that review, the study draws the following conclusions: ii Alpine Skiing, snow boarding and tubing could be offered with additional improvements to the facility and equipment. Minimal improvements and additional equipment would be necessary to offer Nordic skiing, snow shoeing, hiking, birding, mountain biking and a picnic grounds. Horseback riding, camping, interpretive trails and disc golf could be offered with varying degrees of additional improvements. The optimal ownership and operating structure for the development of Detroit Mountain Recreation Area as not only a ski area offering alpine skiing, cross country skiing, snow boarding and snow tubing but also non revenue generating activities such as hiking, camping, mountain biking and other amenities is some form of public private “Partnership” that will permit the land to be owned by a public entity such as Becker County, Erie Township, the City of Detroit Lakes or some Joint Powers entity created by those governmental entities, while providing for operation of the amenities that require significant infrastructure investments and incur operating expenses, labor and insurance costs to be undertaken by a separate for profit business or non profit organization. Private operators can attract private investment, non profit operators can attract charitable donations. Both types of operation can benefit the public, without creating another public bureaucracy with additional public employee expense, political interference with management and an uncertain level of continuing financial support from the public operator. The initial investment made by the public for land acquisition is an investment with minimal or no risk. The land over time is unlikely to decrease in value and, given its location, will more likely appreciate in value even without the private investment in infrastructure that will result from the development of the ski operations by a private operator. If nothing were to be done to the site other than to make it a county park, it will still be a valuable asset and attraction our community can offer. Our community is and has traditionally been a destination for visitors. To remain competitive in that area, the community needs to continually build on its competitive advantages and attract new visitors. In short, the community needs to give people a multitude of reasons to visit. This facility has the potential to create a destination not only for one or two winter activities, but for year round recreational activities that offer residents and visitors a positive experience in the Detroit Lakes area. There will be few, if any, direct operational costs to the public; and, over time the operation may be able to return some operating revenue to the public in the form iii of payments under a lease or management agreement as an offset to the loss of real estate taxes. This facility will not require tax revenue to operate and no tax increases will be necessary. Development and operating expenses will be generated by donations and revenue generating activities. Development of this facility will not occur without public involvement. While it is reasonable to expect donations and operating revenue to finance infrastructure development and to pay operating costs, revenue will be insufficient to pay those costs and pay debt service on land acquisition costs. Private enterprise cannot purchase the land, invest in infrastructure, pay debt service, pay operating costs and recover a reasonable rate of return. The time to act is now. If the land is sold to a private party for private use the potential community asset will be lost. There is no better time than now. Fifty years from now the community will remark on the foresight our County Commissioners had in acquiring the land. Over time, the value of the facility will increase as will its potential to foster private investment in additional infrastructure. As the infrastructure is developed, the value of the public’s initial investment will grow with minimal or no additional public investment. The public, in general, will benefit from the additional recreational opportunities offered by the facility. These opportunities are both in the form of revenue generating activities such as skiing, snow boarding and snow tubing, as well as other non-revenue generating activities afforded by the new public park. Further, it creates an additional draw - a reason for tourists and other visitors to come to the Detroit Lakes area. This facility will also create another source of private employment for area residents, and has the potential to generate additional capital investment in area businesses to service the draw. Rental shops for skis, snow boards, and bicycles, can be operated by private companies both on and off site. A recreation area creates the market for recreational equipment, including bicycles, ski, and snow board equipment. The initial public investment has the capacity to spawn the growth of public enterprise and give our local residents one more reason to live in Becker County - and our visitors one more reason to spend their vacation dollars in our community. iv DETROIT MOUNTAIN RECREATOIN AREA 2010 Feasibility Study Prepared for Becker County, Minnesota May 2010 v TABLE OF CONTENTS 1.0 Project Goals and Objectives ................................................................................ 2 1.1 Objective of the Feasibility Study ........................................................................ 2 1.2 Mission and Vision............................................................................................... 2 2.0 Site Overview .......................................................................................................... 3 2.1 DMRA Location ................................................................................................... 3 2.2 Access & Arrival .................................................................................................. 4 2.3 Zoning .................................................................................................................. 7 2.4 Physical Description ............................................................................................. 7 2.5 Infrastructure, Equipment & Systems .................................................................. 8 3.0 Development Concept .......................................................................................... 11 3.1 Winter (November- March) ............................................................................... 12 3.2 Spring & Fall (April-May & Sept-Oct)and Summer (June-August).................. 15 4.0 Ownership and Operating Structure ................................................................. 19 4.1 Private Ownership and Private Operation .......................................................... 19 4.2 Public Private Partnership (PPP) ........................................................................ 20 4.3 Public Ownership and Public Operation ............................................................ 24 4.4 Summary and Recommendation ........................................................................ 25 5.0 Industry Overview ............................................................................................... 27 5.1 Demographics and Trends .................................................................................