A sizable sum of money has been earmarked by the state of Wyoming to buy out two popular Hot Springs State Park amenities — the Hot Springs Hotel and Star Plunge, a geothermal water park that’s been closed for a little more than a year.
The state and Star Plunge’s owner, Roland Luehne, have been embroiled in a legal fight for the past year over how the state selected a new operator for Hot Springs State Park amenities.
Hot Springs State Park is among Wyoming’s most popular and heavily visited state parks, renowned for having the world’s largest mineral hot springs, as well as a free bathhouse and a resident bison herd.
State Sen. Ogden Driskill, R-Devils Tower, confirmed to Cowboy State Daily that the Legislature has set aside $3 million for the buyout and has directed the state to hire an appraiser to evaluate both properties.
If realized, a buyout could end the lawsuit, allowing improvements to the popular destination to move forward at Hot Springs State Park.
“Both businesses have made firm offers to the state that says, pending an appraisal of the properties, they will hand those over,” Driskill said. “Both businesses are ready to go. The Days Inn is a running business right now, and it’s got great cash flow and contributes significantly to the economy in Hot Springs.”
Star Plunge is also ready to be reopened, Driskill said, adding that he toured it ahead of the Legislature’s recently completed budget session.
“Roland took me through it, and I can tell you, it’s in better condition now than at any time I’ve ever seen it,” he said. “I’m not saying it’s a world-class hot water resort. But I will tell you it’s clean, the water’s running, the pool’s (clean).
"He has at his own expense kept that up, and those mineral waters are tough on things. So, it’s ready right now for someone to walk in. He could literally unlock the front door and set a cash register on the counter and have it open.”
If the buyout goes through, the amenities would be run by Wyoming Hot Springs LLC, the vendor Wyoming State Parks has already selected to operate all of Hot Springs State Park’s amenities.
Negotiations Already Underway
Brooks Jordan, district manager of the Bighorn District, and Star Plunge attorney Matt Micheli, who is with Holland & Hart, confirmed with Cowboy State Daily that talks are ongoing with the parties to agree on a path forward. Hot Springs Hotel owner, Bud Petrillo, declined to discuss the matter.
Litigation over Star Plunge, meanwhile, has been put on pause while they work to resolve their differences.
“We are in the process of finding an appraiser,” Jordan said. “We will be issuing a letter requesting proposals. So basically, a quick version of an RFP (request for proposals), to try to solidify an appraiser to conduct these assessments.”
The discussions, meanwhile, are focused on coming to a “consensus on the approach” the appraiser will use, Jordan said.
“Just to make sure if we get an appraisal that at least we can all agree upon in advance, without knowing the outcome, at least we can agree upon the approach that we take,” Jordan said. “We hope to get the language agreed upon for the appraisals quickly and get the RFP issued, and we hope to get an appraiser hired and started as soon as possible.”
Jordan said it is possible that the appraisal could be completed in time for opening Star Plunge this summer, but it would be a tight fit.
“It would be very difficult for me to say yes or no either way,” Jordan said. “But it’s possible a new operator could be in place. That requires a lot of preparation and planning ahead of time with a contract for the new operator.
"So, there’s still a lot of work to be done outside of just appraisals.”
Jordan added that despite the Star Plunge closure, he believes the community itself has been doing well and that the economy in Thermopolis remains “strong.”
State Parks has continued to work on other projects to strengthen Hot Springs State Park, including upgrading the Swinging Bridge, adding a new boat ramp and launch, and several road repairs. This summer, the agency will work on renovating the terrace boardwalk.
Micheli told Cowboy State Daily he is pushing the state to move fast.
“We think this is a great outcome,” he said. “We think it’s the right outcome, and we think it’s the responsible thing for the state.”
Micheli added that in his opinion, there’s no real reason Star Plunge has to remain closed at this point.
“We are happy to talk with the state about any path to getting the pool open while this appraisal process plays out,” he said. “And we’re willing to talk or work with anybody who will let this happen.
"It makes sense to us. It helps the community, it helps the state, it helps the town of Thermopolis. Let’s get it open. Let’s let people go and enjoy it.”
Long Time In The Making
Driskill said the $3 million for the buyout is something that dates back several years, after he learned the owners of each amenity had already given the state firm offers for selling their businesses.
Luehne’s offer is $2 million, while the Hot Springs Hotel’s offer is $1.5 million. The additional half million for the buyout is something Driskill said Wyoming State Parks, Historic Sites & Trails already has on hand to complete the buyout.
“The money is there for the state to actually come in and do this,” Driskill said. “And the big caveat is they have to agree on an appraiser and those properties have to be appraised.”
Under state law, Wyoming can’t pay more for the amenities than the appraised value.
“Both owners have agreed that assuming the appraisals reach that value, they will be bound to sell to the state of Wyoming,” Driskill said, adding that both businesses cash-flow well. “Roland has an appraisal already for more money than that. He has lowered (the offer) down to where it’s workable for him.
"And Days Inn cash flows, I know for a fact … that it pays back in three years. So, these are both good, honest offers to the state.”
A buyout, Driskill added, will be far less expensive than litigation, which he estimated would take at least $5 million in attorney fees and could last five years or longer.
“They’re a decade in with these folks on lawsuits,” Driskill said. “The truth is, it’s time to quit suing each other. They’ve got honest offers. It’s time to get down and the truth is they ought to be able to agree on an appraiser in less than a week and get down the road.”
Strong Personalities Contributed To Dispute
Strong personalities and emotions have contributed to the length of time it’s taken to reach a deal, Driskill said, but he’s hopeful that it will soon be water under the bridge.
“This has gone on for 40 years,” Driskill said, adding that he’s spent thousands of hours driving to Thermopolis in the last decade trying to help the parties reach a resolution.
“I am part of state government, and I have a very hard time believing that they can kick the can down the road for 40 years,” he said.
Driskill added that he met with the parties about the ongoing issues during the budget session and, from his perspective, there was still too much foot-dragging evident.
“I met with (State Parks) and they made it very clear to me that they felt like they were in the right position and they blah, blah, blah wanted to fight over the thing,” he said. “It was not Dave Glenn, but one of the people in State Parks really didn’t care if it cost the state 5 million bucks.”
Now that money is on the table for a buyout, he hopes all that will stop. Fighting it out is expensive and time-consuming and hurts the region’s tourism.
“This costs Hot Springs County incredibly,” he said. “The Days Inn, if something doesn’t change, will probably close at the end of their term in October. That really hurts the state of Wyoming, and it hits the local area.”
Renée Jean can be reached at renee@cowboystatedaily.com.
