Deal Near for Lakes Management: Recreational Operations at Nacimiento, San Antonio
By Jim Johnson, The Monterey County Herald, Calif.
Apr. 4–County parks officials say they are close to an agreement with an Arizona-based resort management firm to take over most of the recreational operations at two South County lakes. But they’re hedging their bets anyway.
John Pinio, county parks director, said negotiations are nearly complete on a one-year management agreement with Forever Resorts of Scottsdale.
Pinio said he expects to have an agreement within a month, and if the Board of Supervisors approves the deal, Forever Resorts would take over most of the recreational operations at Lake Nacimiento and Lake San Antonio almost immediately.
“I think we’re relatively close,” Pinio said, noting there are a few “minor details” to work out but nothing that would hinder an eventual agreement. “We’re very impressed with (Forever Resorts). They’ve had a lot of success.”
Forever Resorts owns and operates more than 65 resort-style properties across the U.S., including Don Pedro Lake and Lake Oroville in California, and Lake Mead, in Nevada, as well as more than 20 in Europe and Africa. It is known for manufacturing and renting houseboats, in addition to managing lodging, marina, food service and retail operations.
Pinio said Forever Resorts was selected from five bidders for the resorts management contract.
If the deal goes through, Forever Resorts would take over nearly all of the resort operations at the two lakes, now owned by the county. The firm would operate both marinas, both stores and all rentals at
both lakes, as well as fuel sales at Lake San Antonio, and the administration building, lodges and restaurant at Lake Nacimiento.
The county would retain control over the campgrounds, day use and security at both lakes.
At the same time, county parks officials secured nearly $1.65 million from the supervisors on Tuesday to pay for full operations at the resorts for the next three months, through the end of the 2007-08 fiscal year. The budget includes six new park ranger positions and about $361,000 earmarked for repairs and upgrades at the lake resorts.
A staff report said earnings from the resort operations will cover the county’s share of the budget, and Pinio said county parks would pay back whatever budgeted funding isn’t needed if, and when, Forever Resorts takes over.
However, the six new park ranger positions will be permanent, and the repair budget will remain. The money for repairs is less than half the projected $862,000 deemed urgently needed for improvements at the resorts.
In total, the county reported the lake resorts need nearly $4 million in replacement and repair projects.
Forever Resorts officials did not return The Herald’s phone calls.
The county purchased the lake resorts last summer as part of a $22 million legal settlement with Dan Heath, previous owner of the resorts. Heath had alleged in a lawsuit that the Salinas Valley Water Project would wreck his business by lowering water levels as part of the project.
County Water Resources Agency General Manager Curtis Weeks said at the time that the settlement would allow the county to maintain better control over the lakes and resort operations, which would in turn aid the water project.
The project includes modifications to a Lake Nacimiento spillway and construction of a rubber dam on the Salinas River to control water flows. River water will be combined with recycled water for use in agricultural irrigation, reducing pumping from underground water sources and allowing them to recharge.
Meanwhile, construction on the water project is under way, and Weeks recently announced some good news about the rubber dam portion of the project.
Weeks said the winning bid on the rubber dam — $10.5 million by Anderson Pacific Engineering Construction, Inc. of Santa Clara — came in about $8 million below the agency’s engineering estimates.
Jim Johnson can be reached at 753-6753 or jjohnson@montereyherald.com.
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Copyright (c) 2008, The Monterey County Herald, Calif.
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