Bureau of Business and Economic Research Labovitz School of Business and Economics University of Minnesota Duluth i Research Team UMD Labovitz School of Business and Economics Bureau of Business and Economic Research Monica Haynes, Director Gina Chiodi Grensing, Editor/Writer Nathan Brand, Undergraduate Research Assistant Haakan Thorsgard, Undergraduate Research Assistant Bureau of Business and Economic Research 11 East Superior Street, Suite 210 Duluth, MN 55802 (218) 726-7895 z.umn.edu/bber Project Contact Elizabeth Lowthian Administration Officer Voyageurs National Park 360 Hwy 11 East International Falls, MN 56649 218-283-6612 [email protected] DISCLAIMER –The Bureau of Business and Economic Research (BBER) at the University of Minnesota Duluth’s (UMD) Labovitz School was contacted by organization as an unbiased research entity. Publication and dissemination of this report, or any of its data, is not an endorsement by the BBER/UMD of Voyageurs National Park or its projects. The BBER was asked to supply an economic impact analysis only. This analysis does not consider the social or environmental impacts of the project and should not be viewed as a cost benefit analysis or environmental impact assessment. Bureau of Business and Economic Research Labovitz School of Business and Economics University of Minnesota Duluth ii Table of Contents Executive Summary ................................................................................................................................ iv I. Project Description .............................................................................................................................. 6 II. Multi-Agency Partnerships .................................................................................................................. 6 Billingsley Creek State Park ....................................................................................................... 7 Chesapeake and Ohio Canal National Historical Park ............................................................... 9 David R. Obey Northern Great Lakes Visitor Center ................................................................ 10 Grand Portage State Park ........................................................................................................ 13 Mississippi National River and Recreation Area ...................................................................... 14 Salem Maritime National Historic Site .................................................................................... 16 Tettegouche State Park ........................................................................................................... 18 Voyageurs National Park ............................................................ Error! Bookmark not defined. III. Operating Costs ................................................................................................................................ 19 IV. Conclusions ...................................................................................................................................... 24 Appendices ............................................................................................................................................ 26 Bureau of Business and Economic Research Labovitz School of Business and Economics University of Minnesota Duluth iii Executive Summary Crane Lake in Minnesota encompasses over 3,000 the proposed Crane Lake facility was gathered by acres, is 80 feet deep, and is located approximately the research team. These centers are Afton State 28 miles northwest of Orr, Minnesota. The Crane Park, the David R. Obey Northern Great Lakes Lake Township is the southern entry into Visitor Center (NGLVC), Grand Portage State Park, Voyageurs National Park—over 218,000 acres of Jeffers Petroglyphs Historic Site, Snake River lakes, forests, rivers and wilderness abutting Trading Post, Tettegouche State Park, Voyageurs Minnesota’s Canadian border. Four large lakes, the National Park (Ash River Visitor Center, Ash River, 26 smaller interior lakes, and hundreds Kabetogama Lake Visitor Center, and Rainy Lake of islands can be found for exploring. In 2019, the Visitor Center), Whitewater State Park, and Wild park hosted almost 233,000 visitors. River State Park. Such a vast national park has three visitor centers— Data gathered from these centers included total at Kabetogama Lake, Ash River, and Rainy Lake. A annual operating costs which ranged from ranger station located in Crane Lake Township is $7,500/$9,999 to more than $100,000. The largest not an official visitor center but does offer portion of the operation costs was identified as information to those exploring the park. utilities. The costs per square foot ranged from $1.70 to $9.30. The National Park Service (NPS) contacted the UMD Labovitz School of Business and Economics’ Three facilities of the 11 were most similar in size research bureau, the Bureau of Business and to the facility being proposed with their square Economic Research (BBER) to study and determine footage between 3,000 and 7,499. The average the feasibility of a proposed multi-agency visitor operating costs per square foot for these three center in Crane Lake Township. ranged from $2.10 to $9.30. Because the visitor center is proposed for a A literature review on operating cost for small and township-owned site that is three miles outside of midsized visitor centers found four reports with the national park boundary, it cannot be built and operating costs for facilities similar to the one financed by the (NPS). Therefore, the visitor center being proposed in Crane Lake. A detailed report on is proposed as a multi-agency facility that would be the proposed Lake Superior Science Center in owned by Crane Lake Township. Also, the limited Ashland, Wisconsin, predicts annual operating federal funding available for operations requires costs of just over $47,000, which is just over $1.80 that the facility be self-sustaining to the extent per square foot. Most of this cost would be feasible. allocated to gas and electric utility usage. The BBER’s study estimates typical operating costs Feedback from eight parks/designated tourist sites for a visitor center of approximately 5,000 square that were located across the nation yielded insight feet with input from the project committee that on best practices for crafting multiagency includes the NPS and United States Forest Service agreements. These eight were chosen based on (USFS). The study also identifies similar multi- various similarities to the proposed Crane Lake agency partnerships, local and national, and Visitor Center, including that each had a visitor determines the best practices from these center or similar facility that is operated by partnership agencies for use in drafting multi- multiple agencies. The eight chosen entities are agency agreements. Billingsley Creek State Park, the Chesapeake and Ohio Canal National Historical Park, the NGLVC, Feedback from 11 visitor centers that are similar to Bureau of Business and Economic Research Labovitz School of Business and Economics University of Minnesota Duluth iv Grand Portage State Park, the Mississippi National Lastly, feedback was received from the eight River and Recreation Area, the Salem Maritime entities that included several recommendations for National Historic Site, and Tettegouche State Park. Crane Lake to consider. The recommendations included defining roles and responsibilities (e.g. Several different types of agreements were found who will manage grounds, purchase supplies, staff to be in use across the parks. Six locations involve space), building on each partners’ strengths, a federal agency as a partner with two of them anticipating conflicts (e.g. what happens if one using a Cooperative Management Agreement partner can no longer participate), minimizing (CMA). However the use of CMAs may be ceasing; costs, and determining the identity of the space. so this may not be an option for the Crane Lake facility. Among the feedback were some of the following quotes: John Anfinson, superintendent for MNRRA One of the locations, the Mississippi National River advised, “Be certain about each partner’s long- and Recreation Area (MNRRA), has had success term financial commitment.” Hilary Markin, USFS with the use of a U.S. General Services NGLVC Director stated, “Determine the identity of Administration (GSA) lease, in which a federal the space. A Continuity of Operations Plan (COOP) agency occupies its own space in a building that is for the partnership/facility can help avoid owned by a partner agency and pays rent to that problematic situations.” Paul DePrey, owner agency according to the terms of the lease. Superintendent of the Salem Maritime Historic Site This type of agreement may benefit the proposed suggested, “Find an old historic building. Get it into Crane Lake facility partnership. the boundary of the NPS unit somehow. Lease out Also of note is that the NGLVC, which has been in the entire building with the exception of a small existence since 1998, does not have a formal office and desk spot for a ranger. Let the partner document that ties its participating entities operate the space with the NPS as the smallest together. The center houses several federal footprint. Or better yet, just least five feet of desk agencies, two state agencies, as well as a nonprofit space in an existing spot. When government organization. However, the group is developing a shutdowns occur, they don’t shut down