Hello everyone and happy Monday! So last week we chatted with all of you about Cinnamon Bay and how the campground remains in shambles. A lot of you, like me, had questions about the contract between the National Park Service and Redwood Parks, the company who manages the campground and concessions at Cinnamon Bay. Well we received a copy and today we’re sharing it with all of you.
For those of you who have some free time and plan to read over the 144 page contract, you will see that Redwood Parks was required to submit a Hurricane Plan within 90 days of the effective date of the contract, which was Oct. 1, 2016. They were also required to have substantial insurance. Unfortunately the details regarding the Hurricane Plan and insurance are not included in the concessions contract. We submitted a Freedom of Information request to receive the information plus some other documents we think you will find useful. As always, we will share that information with all of you as soon as we can.
For those of you who plan to read the contract, we’re interested in hearing your thoughts. Please let us know in the comments section here or leave us a message over on our Facebook page.
Have a wonderful week everyone!
Seems there are numerous clauses not being met that the Parks Service could use to pressure Redwoods to clean and rebuild, or lose the contract. However, also seems Redwoods was required to carry adequate insurance and that those funds were required to be used as such. Guessing the “Hurricane Plan”, if ever submitted, likely has key information too. Good luck getting that, and any insurance documents that might mention hurricane damage.
It appears that the concessionaire and the United States of America are to be listed as payees for any insurance monies received. This ensures those monies are to be used specifically to repair damages. In addition, it states that the concessionaire shall not be relieved of obligation in the event of being under-insured.
The director also had an obligation to make sure the insurance was reviewed and adequate.
The question is: Was an insurance claim submitted? If insurance monies have been disbursed, who is holding those funds? That money is required to be used to repair the damages per the contract.
While the strong language in the contract certainly seems to protect the Park I can’t help but wonder if, even with insurance proceeds, the NPS has enough funds to restore the campground so they are trying to force Redwoods to be responsible vs. simply cancel the contract and get someone new.
I have a FOI request on for details on insurance requirements… Hopefully we get answers soon.
It’s my understanding that when the contract was open initially (3 years ago or so), there was exactly one bidder: Redwood Parks. CBI was the previous management, and they didn’t want to bid. One of the reasons there was so little interest was that the NPS insisted that the campground be improved, requiring all of the tents to be replaced and requiring a complete rebuild of the cottages. The upshot is that the bidder would be responsible for sinking a ton of money into the place from day one, while waiting years to recoup that initial investment. In my opinion, this is why the process will drag out: the NPS doesn’t have the money or the intent to run the property themselves, and there was (and perhaps is) very little interest from outside vendors to take over the property, due to the site improvement requirements. So, the NPS is playing the waiting game, hoping that Redwood Parks will get their insurance money and get back to work on operating the campground.
It’s funny how the NPS is willing to overlook certain contract clauses with regards to the campground, but they can’t/won’t overlook the rules with regards to having a food truck or two park in the Trunk Bay parking lot to offer concessions.
Has a fund been established to hire a prominent contracts attorney or firm to evaluate the contract terms and conditions to determine the best plan of action? The Concessionaire will only respond when forced by a court decision. Can someone provide a copy of the USVI Area Hurricane Plan? The Concessionaire’s Hurricane Plan must be consistent with the Area Plan. The Concessionaire’s Hurricane Plan and Insurance policy must be on record in the NPS Director’s office. Were these documents ever submitted to the NPS Director?