A Strategic Plan for Increasing the Use, Enjoyment and Economic Return of the Two Publicly Owned Campground & Beach Facilities on Lake Champlain - December 1, 1996
Prepared for: The Village of Port Henry in conjunction with: The Town of Moriah, and Town of Moriah / Port Henry, Essex County Economic Development Zone
Research and Analysis by: Timothy P. Holmes, Holmes & Associates, Saranac Lake, Tommy L. Brown, Human Dimensions Research Unit, Cornell University, and, Robert D. Espeseth, Regional Planner and Landscape Architect, Champaign IL
with funding made available through New York State Department of State, Waterfront Revitalization Program
The study team appreciates the assistance and support of the Port Henry, Town of Moriah Waterfront Committee. The Committee members include:
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Lionel
Beakbane, |
William
Johnston, |
We are especially indebted to Marcy Neville and Barb Brassard at the EDZ office. A note of thanks also to Sue Baker at the Village of Port Henry, staff at both the Village and Town of Moriah municipal offices, and to the campground managers at the two campgrounds. The study team appreciates the assistance of Kevin Millington at the New York State Department of State, Waterfront Revitalization Program.
This research and planning effort benefited greatly from the insights and suggestions of the many local residents and seasonal campers who answered our questionnaires and participated in the public meetings
1. Executive Summary
1.1 Introduction
The Village of Port Henry received a NYS Local Waterfront Revitalization Program grant to redevelop the two campsite and beach areas in the Village of Port Henry. In March, 1996, Holmes & Associates began work on a Strategic Plan for the two campsites in cooperation with the Port Henry, Moriah, Essex County Economic Development Zone Office (EDZ).
The goal of the project was to develop a Òbest scenarioÓ for the campsites that will improve their appearance and function, maximize the economic return to the municipalities, and that would lead towards redeveloping them into community assets that local residents can be proud of. There are five distinct activities outlined in the scope of work:
1. A management analysis which explores the legal and financial options and ramifications (pro & con) for the Town and Village of leasing, privatization, municipal management, or combinations of these; and which determines and recommends a 'best scenario' for achieving community goals.
2. A market analysis which examines long term trends in tourism and demographics; surveys residents, clientele and users at both facilities, analyzes Town & Village revenue records, and recommends a specific marketing strategy.
3. An assessment of issues affecting protection of the natural environment, and an operating plan which addresses their importance with regards to management responsibilities.
4. Survey campground parcels at 2' contour interval, and prepare schematic plans for the layout and landscaping of campsites, roads, etc., including a connecting network of walking trails.
5. An estimate of development costs, and projected returns, for the 'best scenario'. Deliver a 'Scope of Work' and cost estimate for implementation of the 'best scenario' and an estimate of projected returns over a ten year period.
6. A strategy for implementation of the 'best scenario'. Deliver an Action Plan of next steps which includes identification of funding sources, and defines projects for community involvement. Development of the Strategic Plan was a cooperative effort between Holmes & Associates and the Port Henry, Moriah, Essex County Economic Development Zone Office (EDZ). The EDZ organized and coordinates the activities of the local Waterfront Committee who worked closely with the study team throughout the project. A number of data collection techniques were used to gather background data and information, including questionnaire surveys of local residents and seasonal campers, public meetings in the Village and at both campgrounds, numerous site visits, and key informant interviews with the current campground managers and knowledgeable individuals in the community. In addition, the study team consulted regional and national campground organizations and professional publications on campground management and the campground industry.
1.2 Background
The Village of Port Henry Municipal Beach and Campground has been popular recreation site since the 1930s. Work began in the 1950s on creating the Bulwagga Bay Beach and Campsite when local residents started clearing brush and establishing campsites.
During the mid-1990s it has become apparent that there has been both a decline in the economic vitality of the campgrounds and in the quality of the public use areas at the beach areas. In addition, a number of infrastructure improvements are necessary at the campgrounds to keep them up-to-date and attractive to both seasonal campers and weekend visitors. Following are summarized the main strategies for re-developing the campground and beach areas. The recommendations are presented as an overall vision statement, a list of major goals and objectives, and specific actions to be taken by the municipalities, community leaders, and other local residents. 1.3 Vision Statement
The following vision statement summarizes how the Town and Village view their role in managing and operating the two campgrounds:
1.4 Goals & Objectives
There are three overriding goals and objectives that the Town and Village will support in order to maintain their vision for the campground and beach areas:
2. The Town and Village will explore cooperative management and operational activities that will lead to cost savings and more efficient use of municipal labor and equipment at the two sites.
3. The Town and Village will continue to develop a comprehensive waterfront plan that will integrate the campgrounds, beach areas, trails, historic sites, and waterfront businesses into a waterfront recreation area that will play a major role in revitalizing the local economy.The Village of Port Henry and the Town of Moriah will continue to manage and maintain their respective campground and beach areas on Lake Champlain as public park areas for the enjoyment of local residents and as commercial ventures contributing revenue to the two municipalities.
1. The Town and Village will adopt long range capital improvement plans for the campground and beach areas aimed at modernizing those commercial community facilities.
1.5 Primary Recommendations & Strategies
In support of those three main goals, the study team developed a number of recommended actions and strategies. These resulted in part from numerous suggestions and recommendations offered by the Waterfront Committee, the respondents to the local resident and seasonal camper surveys, participants in the public meetings, and other interested residents of the Town and Village.
There are three main sets of recommended actions: most easily implemented actions (those actions involving little or no cost and little additional planning), more costly and difficult to implement (those actions involving more cost and that are logistically more difficult), and most difficult to implement (those actions that are very costly and require significantly more evaluation and planning).
The recommendations listed in the two three tables (1-2, 1-3, 1-4) are listed in order by cost, with the least expensive items appearing first. While most of the recommended actions are concentrated in the first two categories, the most difficult actions illustrate the importance of planning ahead for necessary improvements and expenditures. The estimated costs listed in the tables are approximate and require more in-depth analysis prior to developing budgets or drafting grant proposals.
A public meeting was held in Port Henry on October 24, 1996 to discuss the listed recommendations. As part of that process, those in attendance were asked to indicate their top three priorities in each list. This was done on an individual basis and anonymously submitted to the study team for compilation. The top priorities are indicated in each of the tables. It is expected that the Town and Village boards that currently manage the beaches will discuss the recommendations at their regular meetings and decide on a plan of action.
Admittedly, economic conditions, recreation demand and other factors change over time. The study team recommends that the municipalities review the goals and strategies for the campgrounds every three years. At that time new information, technologies and trends can be considered and the recommendations adjusted accordingly.
Table 1-1: Residents Views on the Main Purpose of Campgrounds
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1. Making a profit |
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2. Making a profit and serving local residents |
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3. Serving local residents |
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A key component of the redevelopment strategy is that any improvements include both the public use portion and the campground portion of the sites. The beach, playground and picnic areas are where the public receives direct, non-monetary benefits from the campgrounds and the revenue they contribute annually to municipal budgets. Residents tend to view the purpose of the campground & beach areas as both making a profit and serving the needs of local residents, as shown in Table 1-1. Unless improvements continue to be made in the public use areas, local residents will be inclined to question continued expenditures for campground improvements. As discovered in the questionnaire survey of local residents, the majority perceive the campground and beach areas to be both public use areas and sources of income for the municipalities.
Click to see Table 1-2: Summary of Recommendations: Easiest and Least Costly to Implement, Table 1-3: Summary of Recommendations: More Difficult and Costly to Implement, or Table 1-4: Summary of Recommendations: Most Difficult and Costly to Implement
1.5.1 Easiest and Least Costly to Implement
The recommended activities in Table 1-2 have relatively low cost (or no cost), are easily implemented and that were found to be strongly support by community leaders and other members of the community. An annual joint meeting to discuss mutual campground issues, encouraging increased recreational use of the facilities, and continuing to explore cooperative management and operational issues are positive steps that require no additional funding.
Creating a new brochure for the campgrounds, surveying the aquatic weed problem at the Village beach, improving the bathrooms, and planting additional vegetation are low cost actions that will have almost immediate positive benefits to the appearance and use of the campground and beach facilities.
It is important to note that these actions are not all directed at the municipal governments, in fact many of the actions are more appropriate for local non-profits, other organizations and individuals. For example, improved recreation opportunities along the lake might be taken up by a recreation committee, hosting a hospitality workshop could be taken on by the Chamber of Commerce and local businesses, and the planting program might include volunteer labor by community residents.
During a public meeting in Port Henry (10/24/96) to review draft findings and recommendations, those in attendance selected three of the recommendations in this group as higher priorities than the others. Those identified as priority actions were:
2. Develop and distribute a promotional brochure featuring both campgrounds and area attractions in cooperation with the Chamber of Commerce, EDZ office, and others.
3. Fund a preliminary in-lake survey of the aquatic plant problems at Village Beach by a professional in lake problems and aquatic plants. 1.5.2 More Difficult and Costly to Implement
The activities listed in Table 1-3 are more costly than those in Table 1-2 and are more difficult to implement, however they are identified as priorities based on input from local residents, seasonal campers and local government leaders. Obtaining a honey wagon for the Town campground, improving the dump stations, and addressing the aquatic weed problem at the Village Beach are pressing needs and carry a relatively low cost.
More expensive priorities include replacing playground equipment that is over 20 years old and upgrading the electrical service to 30 amps at lakeshore camp sites. The playground improvements are key to encouraging more public use of the facilities and will also be attractive to campers. The electrical up-grade should pay for itself in less than 10 years. The inadequate electric service at many of the sites appears to be the main cause of seasonal campers leaving the campgrounds.
During the October public meeting, those in attendance selected the following three recommendations in this group as higher priorities than the others: 2. Initiate an aquatic weed control program in the Village Beach lake area, based on the in-lake aquatic plant survey and recommendations by the professional.
3. Beginning with priority sites, re-align the sites in both campgrounds, increasing distance between sites, adding vegistation, and improving views of the lake and access to the beach.1. An annual joint municipal campground meeting to discuss rules, activities, and priorities at the two sites.
1. Begin using an on-site resident manager/campground host at Town Campground
1.5.3 Most Difficult and Costly to Implement
The actions listed in Table 1-3 are intended for the long term and entail a considerable financial commitment. Completing electrical up-grades at remaining RV sites, installing sewer hook-ups to selected sites, constructing a year-around community facility at the Town campground, and investing in floating dock systems are the key actions listed. In the case of adding sewer hookups at selected sites, if it is determined to be a high priority, it would be cost efficient to install the sewer pipe when the electric service to those sites is up-graded.
Leading the list is the relatively low cost, yet the somewhat complex measure of combining management and operations of the two campgrounds under one entity. The Strategic Plan provides detail on how a non-profit recreation entity could be formed to oversee operations at the two recreation sites. Improvement in management, cost efficiencies in operations, and regular maintenance and up-grades would be among the positive results. The emphasis of the non-profit would be both on business-like management of the campgrounds and providing a quality recreation experience for local residents. Financially, the Town and Village would likely receive a lower net income than at present. It is anticipated that a higher percentage of the annual gross income would be invested in infrastructure improvements, marketing, recreational programming, etc.
During the October public meeting, those in attendance selected the following three recommendations in this last group of recommended actions as higher priorities than the others:
1. Form a not for profit corporation to manage the Town and Village campgrounds as one entity. The corporation would lease the campsites and make annual payments to the municipalities. 2. Re-align and up-grade any out-dated RV sites to 30 amp electrical service and supply 50 amp service at a few of those sites. 3. Install electric meters at those up-graded sites.
1.6 Implementation Strategy
The implementation of these next steps to re-developing the campgrounds will require a cooperative effort among state, county and municipal entities, as well as community organizations and local residents. The local municipal governments will take the lead in implementing many of the actions, but not all. Below are outlined key stakeholders and the type of activities they might be involved in.
The State of New York
Department of Environmental Conservation and Adirondack Park AgencyReview aquatic plant survey proposal and comment on the activity. Review aquatic plant survey findings and comment on recommended actions. Department of Health
Identify possible upgrades to dump stations. Identify issues related to on-site septic hook-ups. Make revised campground regulations available as soon as possible. Department of State
Maintain communication with Essex County and EDZ on possible funding for implementing recommended actions. Essex County Planning Department
Pursue grant possibilities in conjunction with the EDZ and others as suggested in the Plan. Evaluate the possibility for Bond Act funding for priority recommendations and provide guidance to Village, Town, and EDZ officials. Village of Port Henry and Town of Moriah
Develop capital improvement plans for the campgrounds. Initiate planning process for cooperative operation and management of the campgrounds. Address priority recommendations at respective sites. Take steps necessary to obtain Bond Act funding for wastewater treatment plant improvements that may favorable impact the aquatic weed problem at the Village Beach, and for other priority actions. Economic Development Zone Office and Waterfront Committee
Pursue grant opportunities and funding sources as suggested in the Plan. Coordinate with Village and Town officials on priority recommendations. Assist in implementing marketing plan for the campsites and community. Community Groups and Local Citizens
Chamber of Commerce and other business leaders participate in development of brochures and other marketing recommendations. Local citizens and organizations become involved in community nursery and in planting trees, shrubs, and flowers in all public use areas in the waterfront area. Youth groups and others interested in recreation become involved in expanding recreational use of the beach sites to include canoeing, kayaking, windsurfing, etc. Organizations explore operating the concession building at the Village Beach as a funding raising effort. Seasonal Campers
Long-term seasonal campers select 2 representatives from each campground to represent their interests at Town and Village meetings concerning the campgrounds.
1.7 Local Resident and Seasonal Camper Preferences at Bulwagga Bay
The local residents who responded to the questions on the Bulwagga Bay campsite were most supportive of improving the playground facility, improving the physical appearance of the campsites with landscaping, etc., adding a concession stand, and holding more recreation events. Least supported were adding fish cleaning facilities, expanding use in the off-season, and renting canoes, kayaks, etc. Local residents' most common suggestion for improving the campground related to improving the beach area by spreading better sand and keeping it clean. Additional suggestions included spreading better sand on the beach, keeping the beach clean, and winter fishing access. The seasonal campers at Bulwagga Bay rated the electrical hook-ups, restrooms, supervision, maintenance, and the dump station as most in need of improvement. They were most supportive of improving the restroom facilities, improving the playground, improving the physical appearance of the campsites, and adding a concession stand. Renting canoes and adding fish cleaning facilities received the least support. Improving water control in the showers (too hot or too cold), site layout, and having an attendant at the dump station were additional suggested improvements.
1.8 Preferences at the Port Henry Municipal Beach and Campsite
The local residents who responded to the questions about the Village campground were most supportive of addressing the aquatic weed problem at the beach, improving landscaping and vegetation, improving the playground facilities, and holding more recreation events. Least supported were adding fish cleaning facilities and renting canoes and kayaks. Additional suggestions include talent shows, fishing contests, cleaning the beach, sewer lines, and repairing the pavilion and barbecue. The seasonal campers at the Village campground rated the electrical hook-ups, restrooms, and dump station as most in need of improvement. The were most supportive of addressing the aquatic plant problem near the beach, improving the restroom facilities, improving the playground, and improving the physical appearance of the campsites. Better security, laundry facilities, activities for children, site layout, electric power, and need for more showers were additional suggestions made by the respondents.
1.9 Financial Information on the Campgrounds
There are presently 325 sites altogether in the two campgrounds (175 at the Town and 150 at the Village). About one-fifth (65 sites) could be classified as lakeshore sites. Lakeshore sites carry a $50 premium at the Village campground for seasonal renters and an $80 premium at the Town campground. Seasonal fees at both campgrounds are currently in the range of $700 - $800 for three to four months of seasonal use, or about $200 to $250 per month. The seasonal rate includes electricity fees, estimated at about $200 per site for the season. Monthly rates are $300 at the Town campground and $375 at the Village campground. Weekly rates are about $85 at both campgrounds, while daily rates are $13. All of these rates include the use of electricity.
In terms of occupancy levels, seasonal occupancy in 1996 was 63% of all Town camp sites and 53% of all Village camp sites. However, in terms of the lakeshore sites, about 91% of the Town lakeshore and 100% of the Village lakeshore sites were occupied seasonally. Of the remaining non-seasonally occupied sites in the Town campground, about 5% were occupied in May, 18% in June, and 25% in July and August. Occupancy rates for non-seasonal sites were slightly lower at the Village campground at about 21% in July and August. The average number of sites occupied by non-seasonals in July (i.e., 19 at the Town, 15 at the Village) were computed on weekly averages and likely over-estimate actually occupancy on any given day. Most significant in the financial picture is that seasonal campers provide 84% of the Town campground income, and 95% of the Village campground income.
The average gross income during the 1990s was $99,682 at the Town campground and $65,255 at the Village campground. Both campgrounds have had an annual net income in the range of $24,000 to $25,000 per year during the 1990s. The average gross income per site in the 1990s is $435 at the Village campground and $570 at the Town campground, while the average net income per site was $166 for the Village and $138 for the Town during the past six years. These figures should be viewed as approximate because it is difficult for the Village and Town to accurately account for all campground-related labor and materials. The Village campground has had a fairly consistent income level in the 1990s, with its average income at about 92% of is maximum income for the period. The Town's income from campers is somewhat less consistent, with its average equaling about 88% of its maximum income during the period.
By way of comparison to current income levels, if the campgrounds were 100% occupied by seasonal renters, the total gross income would be $124,600 at the Town campground and $120,000 at the Village campground, given the current fee structure. That would be a 25% increase over the average annual gross for the 1990s at the Town campground, and an 84% increase at the Village campground. Full occupancy by drop-ins throughout the season would more than double average income at the Town campground and almost triple the income at the Village campground. Considering weekends only, if all the sites were occupied by drop-ins only on the weekends, gross income would be below the average at the Town campground and would be similar to the current average income at the Village campground.
In terms of expenses, the Town campground appears to be more costly to operate than the Village campground. On a per site basis, the Town campground costs $432 to operate, while operation of the Village campground costs $269 per site. Electric, water, labor, and miscellaneous expenses are all higher at the Town campground. It should be noted that differences in accounting for municipal labor and supplies could account for some of the difference in operation cost. The Village has spent about $1,500 per year in capital improvements over the past six years. The types of improvements include additional electric outlets, playground equipment, and coin showers. The Town has carried out more extensive improvements in recent years, averaging over $18,000 in capital improvements over the past four years. In 1995 alone the Town spent $44,000 upgrading electric and water to 41 sites and for beach erosion control. Other recent capital improvements include pilings, floats and playground equipment.
1.9.1 Campers' Expenditures in the Community
The survey of seasonal campers included inquiry on their average expenditures during the season while they are in the Port Henry area. Of the 88 seasonal camper questionnaires returned, 73 provided local expenditure data. On average, seasonal campers reported spending $1,420 while in the Port Henry area. Of that amount, $1,195 (84%) was spend on non-durable goods such as groceries, restaurant, gas & oil, etc. The remaining 16% ($225) was spent on durable goods such as fishing, camping and boating equipment. With an estimated 180 seasonal campers currently registered at the two campgrounds, the total expenditures by seasonals in the Village and Town is in the vicinity of $256,000, in addition to their seasonal camping fees. About one-third of those expenditures occur at local grocery stores or convenience stores and another 15% occur at gas stations.
Table 1-5: Economic Expenditures by Campers in the Port Henry/Town of Moriah Area, 1996
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Camping site fees |
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Seasonal camper expenditures |
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Drop-in camper expenditures |
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Total: |
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The average number of days in the area was about 61 days per seasonal camper, and varied from 2 days to 156 days. The amount spent per day by seasonal campers at local stores and businesses averaged about $23 per day, in addition to their seasonal site fee. For those campers who spent 30 or more days at their site during the summer, the average daily expenditure was higher at $29 per day.
To compare seasonal campers' local economic impact to that of weekend campers, a recent study of campers at Vermont State parks found that the average camping group of 3 people spent $114 in the vicinity of the campground during a 2 night stay (Negra et. al. 1994). The average expenditure per day was about $57, or about twice that of the average seasonal camper at Port Henry, on a per day basis. On the other hand, to equal the estimated local economic impact of one seasonal camper would require about 25 overnight camping visits or 12 weekend camping visits at the Port Henry campgrounds. The annual total estimated economic impact of non-seasonal campers in the area is estimated at $114,000, based on an estimated 2,000 non-seasonal camper days at the two Port Henry campgrounds in 1996. The total direct, local expenditures of Port Henry campers is estimated at $523,000 for 1996.
1.10 Comparison with Campgrounds in other Areas
In placing the two Port Henry campgrounds in perspective with an ÒaverageÓ campground in Wisconsin or elsewhere in the nation, it appears that the campgrounds' fiscal condition are about average or somewhat below average. The profit margins appear healthy, however the average annual net profit per site is $138 for the Town campground and $166 for the Village campground, while it is $200 for the average Wisconsin campground.
The comparative analysis indicates three underlying economic problems for the two campgrounds that are starting to become evident. First, the ratio of net to gross income is possibly inflated for the campgrounds because few capital improvements have been made in the past six years, with the exception of the considerable expenditure at the Town campground in 1994 and 1995. Necessary improvements and up-grades will have to be made to keep the campgrounds competitive in the marketplace.
Second, the total revenue at the campgrounds is almost totally dependent on site rentals, and the majority of those are seasonal site rentals. Between 85% and 95% of the total revenues are dependent of seasonal camper fees. Nationally, site rentals account for 30% to 70% of campground revenue, with seasonals accounting for 25% of total revenue. While the dependence on seasonals has been financially beneficial in the past, the future market is uncertain for the more rustic type of seasonal camping offered by the two campgrounds.
Third, those economic problems now seem to be affecting the bottom line at the two campgrounds and that trend could continue. Ratio of net to gross income, disregarding capital investments, has declined to 15% at the Town campground and 28% to the Village campground in recent years.
1.11 Trends in Camping and the Campground Industry
Most available data and projections would suggest a steady demand for camping along Lake Champlain in the next few years compared to 1995-96 levels, but little growth is expected. This steady demand but no growth scenario has several implications toward management of existing campground facilities, such as the two Port Henry campgrounds:
2. It will be more difficult to raise camping fees and keep a constant attendance level than in a growing market situation. Since increasing revenues from site rentals cannot be anticipated, campgrounds will have to try to create new profit centers were possible.
3. Active marketing of the area in which a campground is located, and of the campground itself, will be even more important to operating near break-even for the public sector, or at a profit for the commercial sector. Attractive advertising campaigns, marketing partnerships with other businesses and local attractions, and word of mouth by satisfied customers will be key to remaining viable. In summary, a scenic location, fair prices, high quality facilities and marketing are key to the success of a campground operation in the 1990s. Port Henry and the Town of Moriah have two of the most scenic campground locations on Lake Champlain, and the campground fees are currently average or slightly below average for the area. At this time it is the quality of the facilities and the marketing of the two campgrounds that require the most attention from the municipalities.
1. More campgrounds will have available spaces, which gives campers (especially long-term and seasonal campers) more of a choice of locations than they may have had previously. In addition, many campgrounds are aging, and few new campgrounds are being built. Thus, campgrounds in the most scenic locations, campgrounds that have been modernized to accommodate today's larger campers, and campgrounds that are well maintained should continue to do well, while other campgrounds that once might have survived largely from overflow at nearby sites will see sharp declines in attendance.