HD38 - The Economic Feasibility of Expanding Recreational Opportunities

  • Published: 1989
  • Author: General Assembly. Joint Subcommittee
  • Enabling Authority: House Joint Resolution 130 (Regular Session, 1988)

Executive Summary:
I. Introduction

The Joint Subcommittee Studying the Economic Feasibility of Expanding Recreational Opportunities was established in 1988 pursuant to House Joint Resolution No. 130. The General Assembly requested the subcommittee to study the economic feasibility and advisability of (i) expanding the recreational opportunities of Douthat State Park, including the possible construction of a 150-room lodge and 18-hole golf course; (ii) further developing the Lake Moomaw area to provide increased tourist opportunities; (iii) further developing recreational facilities in the Alleghany Highlands; (iv) establishing a state park in Russell County at the junction of Big Cedar Creek and the Clinch River; and (v) establishing state parks in Washington County at Laurel Bed Lake and Hidden Valley Lake.

II. Subcommittee Activities and Deliberations

The subcommittee devoted much of its time (i) to a review of the VPI-SU study of the economic feasibility of expanding recreational opportunities at Douthat State Park and the Lake Moomaw area and (ii) investigating the desirability of developing a state park at the junction of Big Cedar and the Clinch River. During the course of its deliberations the subcommittee not only received testimony from a wide range of interested parties, including local officials and citizens, business leaders, recreational and technical experts and state officials but made site visits to those locations where the potential existed to expand current recreational opportunities.

A. Douthat State Park and Lake Moomaw

In early 1988 the Greater Alleghany Economic Development Commission seeking a new economic development initiative, contracted with Dr. Will Shepherd, Director of the Landscape Architecture Program at VPI-SU, to determine the economic feasibility of expanding the recreational offerings of Douthat State Park. The study team was to (i) review and evaluate the existing facilities and the prospects for expansion, (ii) develop an alternative land use plan which included a 150-room lodge, 18-hole golf course, and conference center, and (iii) determine whether such development was compatible with existing facilities and recreational experiences (Attachment A).

On September 15, 1988, the subcommittee traveled to Douthat State Park to review the results of Dr. Shepherd's assessment and receive public comment on the study's recommendations. In his opening remarks Dr. Shepherd noted that Douthat State Park is an excellent example of the design concepts developed by the National Park Service and used in Virginia in the 1930's. It was one of the original parks built by the Civilian Conservation Corps and remains on the Federal Register of Historic Places.

The study team began its analysis by evaluating the park's current condition, utilization patterns, and prospects for expanding the existing facilities of Douthat State Park. The study found that the park is seasonally under-utilized, in that most facilities are only open during the late spring, summer, and early fall. Dr. Shepherd stated that the park "appears to be developed at about 1/7th of its optimum carrying capacity'' with the current facilities occupying 80-90 acres out of a land area of 4,500 acres. Even in the face of this apparent utilization, the park has been "under-maintained" over an extensive length of time. The subcommittee supports current efforts directed at maintenance and renovation of many of the fifty-year-old facilities. The study team concluded its analysis of the current land use situation by suggesting that there is sufficient usable land areas for a threefold to fivefold expansion "with little physical or ecological constraint."

To determine the economic feasibility of developing alternative land uses within Douthat the study surveyed five comparable state parks located in the adjacent states of Tennessee, West Virginia, and Kentucky. These parks were selected because they are of comparable size, located in relatively remote regions, and have a similar natural resource base. The survey results indicated that when compared to the five parks, Douthat State Park (i) is under-utilized and under-developed; (ii) does not generate a similar type and range of employment; (iii) offers a limited range of recreational activities; (iv) does not generate the magnitude of revenue within the park or in the surrounding communities; and (v) does not contain the range of recreational facilities of "modern family oriented parks."

The study found that Douthat could economically support a new land use program of additional cabins, development of a luxury moderately sized resort hotel with a conference center, an 18-ho14 golf course, additional facilities for the day use population, and renovation and upgrading of existing facilities. The 1987 operating budget for Douthat was approximately $260,000 with revenues somewhat in excess of $99,000. The study concludes that based on the experiences in these other states an expanded Douthat State Park should generate between $2.5 million and $4 million annually and employ between 80-120 permanent employees and seasonally employ 50-80 part-time staff. It is projected that attendance would increase from 186,000 to an annual figure of 600,000-700,000 people.

To change the nature of the park so that these benefits might be realized, the study proposes a seven-year phasing plan at an estimated cost of between $13.5-$17.1 million. The initial phase would be the construction of additional cabins, followed later by the renovation of the facilities and infrastructure improvement (i.e. water system and roads), and finally construction of the hotel, conference center and golf course. In order to implement the plan the study suggests several funding sources should be investigated including state general funds, general obligation bonds, revenue bonds, user fees, dedicated revenues and other innovative sources (i.e. gift program, direct investment by private sector).

The expanded land use and construction of additional facilities will have an impact on the current park experience. Dr. Shepherd informed the subcommittee that there will be an increase in traffic, necessitating additional roadway access, increased noise, a change in views, and an increase in the number of users. In addition there will be several land use changes including removal of the current group camping facilities, realignment of portions of the existing trail system and land-disturbing activities such as clearing and grading in order to accommodate the construction of the additional facilities.

The VPI-SU research team proposed a strategy for achieving compatibility between the existing and any new facilities. Such a strategy would be based on the physical separation of certain activities. Such facilities as the proposed resort hotel and golf course would be isolated and buffered from the existing more primitive areas. In the words of the study "this strategy will insure that each facility will have its own character."

The subcommittee received public comment on the study's recommendations from a variety of local interests. Representatives of the surrounding local governments, the business community and many residents supported the study's recommendations and felt this is an economic development initiative which carries much promise for enhancing tourism, increasing employment and generating more revenue for the surrounding communities. While there was widespread support for the proposal some residents voiced their concern that such an initiative will change the character of the park's environment from an isolated passive opportunity for recreation to a more organized resort type of recreational experience.

B. Lake Moomaw

The subcommittee also received a briefing from Dr. Shepherd and his study team on their analysis of the feasibility of expanding the recreational opportunities in the Lake Moomaw area. Their assessment looked at the desirability of constructing a marina, possible locations for campgrounds, picnic facilities and vehicular access. The United States Forest Service has agreed to assist in the development of two marinas along the lake, one in Bath County and the other in Alleghany County. These projects would require local matching funds. The study team recommended that a master plan be undertaken which would include the Lake Moomaw recreation area and the surrounding wildlife management area. The major objective of the master plan would be to explore the relative merits of various alternatives. The subcommittee recommends that any master plan consider the complementary nature of the activities which would take place in Lake Moomaw and Douthat State Park.

C. Park sites in Russell County

The subcommittee traveled to southwest Virginia to discuss with local officials the possibility of establishing a state park at the junction of Bed Cedar Creek and the Clinch River in Russell County and in Washington County at Laurel Bed Lake and Hidden Valley. The proposed site in Russell County covers 300 acres and includes a 94-acre tract which is owned by the county and operated as a county park. Since 1975 the Cumberland Planning District Commission has received approximately $289,000 in federal and state grants for improving the recreational facilities. The site is characterized by scenic overlooks, high hanging rocks and white water. The park provides primarily a passive recreational opportunity, with day hiking, camping, and a stocked trout stream. The area has limited commercial or residential development value because of the landscape and severely restricted access. The appraised value of the land is estimated to be $200-$300 per acre because it is essentially mountainous land.

While the proposed site represents significant scenic and recreational values, the type of landscape and its limited accessibility raise questions as to the appropriate type of passive recreational activities which would be enhanced by the acquisition of such property.

The subcommittee therefore suggests that a feasibility study be undertaken prior to a capital outlay commitment. Such a study would provide answers to such questions as:

1. What is the appropriate use for such land (i.e. state park vs. natural area)?
2. What financial resources are available to fund such an acquisition (i.e. local in-kind, gifts)?
3. What kind of facilities would be appropriate?
4. What are the short and long term obligations?
5. What is the environmental impact?
6. What is the public's interest in this site?

The results of the feasibility study could then be presented to the General Assembly money committees, which would make a judgment as to the relative merits of such an acquisition.

III. Recommendations

1. The subcommittee supports the finding of the VPI-SU "Douthat State Park Feasibility Study" that it is feasible to develop alternative land use facilities in Douthat State Park. It is, therefore, recommended that the General Assembly appropriate the necessary funds to the Department of Conservation and Historic Resources to plan a pilot program to expand the recreational opportunities offered in Douthat State Park. The initial phase of such a program should be a study of the feasibility of the construction of a lodge and tennis facilities.

2. The subcommittee finds that Cedar Creek Park in Russell County is a unique scenic and recreational site. It is recommended that the General Assembly appropriate, through a budget amendment, the funds necessary for the Department of Conservation and Historic Resources to perform a feasibility study of the alternatives for expanding the recreational opportunities at this site.