FPS staff report
December 1, 2009
With operating losses that could be near $1 million by the end of the year, the future of Atwood Lake Resort and Conference Center continues to be a topic of concern for its owner, the Muskingum Watershed Conservancy District (MWCD).
Members of the MWCD Board of Directors are extremely concerned by the last several years of increasing operating losses at the resort amid the efforts this year of local, state and federal officials to assist the MWCD in finding a buyer for the 104-room hotel and meeting center Carroll County.
“The Board of Directors established the sale of the resort as one of its top priorities during 2009,” said Richard J. Pryce, MWCD president, during a recent meeting at New Philadelphia. “It is becoming more evident, though, that the MWCD must consider whether maintaining present operations at the resort is fiscally responsible.”
The MWCD, which opened Atwood Resort in 1965, reported in its monthly budget report to the Board of Directors that through the month of October, the rate of occupied rooms was only at 31.8 percent for the year, leading to an overall operating loss of more than $836,000 to date in 2009. Budget projections called for an occupancy room rate of 41.9 percent, and it takes a rate of more than 60 percent of guest rooms filled for the entire year to break even, said John M. Hoopingarner, MWCD executive director/secretary.
“We have worked very hard to find a solution that would keep the resort open and we have assured our customers and interested public officials that there are no plans to tear down the resort buildings,” Hoopingarner said. “However, the future continued operation of the resort by the MWCD is not clear.”
The MWCD has put out a request for proposals (RFP) to purchase Atwood Lake Resort and met with Carroll County officials, representatives from Congressman Zack Space’s office and officials from Kent State University Tuscarawas to discuss the formation of a partnership to secure the future of the facility.
Discussions have also been held with and state Reps. Mark Okey (D-Carrollton) and Allan Sayre (D-Dover), and state Sen. Joe Schiavoni, D-Canfield.
RFPs are due by the end of December and Darrin Lautenschleger, public affairs administrator for the MWCD, said he expects the board to discuss those proposals at the board’s Jan. 22 meeting.
Carroll County Commissioners noted if Atwood Resort is closed, Carroll County could lose over $ 7 million annually. During recent years, the resort has had an annual payroll of nearly $2 million and pair more than $300,000 per year in real estate and other taxes to local governments.
“Closing the facility will displace 30 full time and 70 seasonal jobs, two-thirds of the county’s bed tax and eliminate much of the tourism in our area,” said Wheaton. He has been working closing with Trish McCullough and Glenn Enslen of Space’s office to identify a level of diverse functionality to save the resort.
“We have come up with a few creative and diverse ways to make the lodge profitable,” he said. “We have been discussing one option in great detail lately and will see what happens,” he said.
Hoopingarner stressed it would be unfair for the MWCD to attempt to pay for the losses at Atwood Lake Resort by increasing rates it charges for other recreational activities it offers, such as camping, cabin rentals, boat docking and/or lease fees. Likewise, substantially reducing or eliminating planned improvements and routine upgrades at its lake parks and other recreational facilities also would create negative consequences, he said.
“It would not be fair to our guests and users at our lakes around the watershed to put directly on them the burden of the costs of operating Atwood Lake Resort,” Hoopingarner said. “It also is very likely that increasing rates at our facilities would price the MWCD out of the outdoor recreation market in Ohio, and putting off needed improvements would have negative consequences for the quality of our recreational facilities.”
The resort operations include 17 four-bedroom vacation cabins, an 18-hole golf course, a nine-hole par-3 golf course, lounge and restaurant. It is situated on more than 300 acres overlooking Atwood Lake.
Funds collected by the MWCD assessment of property owners in the region for maintenance and rehabilitation of the reservoirs and dams are prohibited by law from being used to financially support operations at Atwood Lake Resort, Hoopingarner said. |
