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HomeMy WebLinkAbout(C1) RV Park Presentation (2)Pleasure Island RV Park Presented by: George Davis Director of Pleasure Island Lease History On November 28, 2007, PI RV Resort and Investment Corporation signed a five-year lease with an option to renew for two additional five-year terms. The first renewal was executed in 2012 and expired in 2017. On November 1, 2016, a letter requesting the second renewal was received, however, no action was taken by the City of Port Arthur. PI RV Resort and Investment Corporation has been paying month-to-monthpayments since then. Payment History PI RV Resort and Investment Corporation initially paid $2,750 monthly in its agreement with Pleasure Island. They are currently paying $3,025 a month, $36,300 annually. PI RV Resort RV Park Rates $40 a Day $200 a Week $535 a Month for a “back in” pad $555 a Month for a “water view” pad $575 a Month for a “pull through” pad 76 total pads Pleasure Island RV Park Proposed City Rates $50 a Day $225 a Week $600 a Month for a “back in” pad with a 30 Amp Connection $650 a Month for a 50 Amp Connection $600 a Month for a “water view” pad with a 30 Amp Connection $650 a Month for a 50 Amp Connection $600 a Month for a “pull through” pad with a 30 Amp Connection $650 a Month for a 50 Amp Connection Original rates approved by City Council on September 27, 2022, for current RV Park Annual Expenses, Revenue and Profit for PI RV Resort RV Park 1/4 Full 1/2 Full 3/4 Full Full 36,300 36,300 36,300 36,300 121,980 243,960 365,940 487,920 85,680 207,660 329,640 451,620 Revenue –Expenses =Profit Possible Annual Revenue for Additional Pleasure Island RV Park 1/4 Full 1/2 Full 3/4 Full Full 136,800 273,600 410,400 547,200 148,200 296,400 444,600 592,800 Revenue Pleasure Island Could Generate Based on 30 Amp Connections Revenue Pleasure Island Could Generate Based on 50 Amp Connections Recommendation It is recommended that the City Council allow the Pleasure Island Department to operate and manage the RV Park currently run by PI RV Resort and Investment Corporation. As an enterprise fund, this will be another means of generating revenue for Pleasure Island.