The town of Minturn, Colo., near Vail, has obtained a Kampgrounds of America (KOA) franchise and intends to build a 62-space, six-acre RV park as it tries to attract more visitors to the town, according to The Vail Trail newspaper.
Minturn Town Manager Alan Lanning said a quasi-government entity called the Minturn Building Corp. needs to be created to borrow $3.1 million from investors to pay for construction of the campground. The town government then would pay rent to Minturn Building Corp. until the debt is paid off, according to Lanning.
The potential investors were not identified.
The campground’s operating expenses and debt service are estimated to total about $540,000 a year but Lanning believes it would break even at an average annual occupancy rate of 35%.
However, the RV park development proposal does not have unanimous support, according to the Vail Trail. Among the opponents are the owners of inns and motels who do not like the idea of tax money being used to pay for the development of a new competitor.
Others are concerned about the consequences to the town if the RV park is not financially viable. Some believe a 45% to 50% occupancy rate will be needed for the facility to break even and they question whether that is achievable.
Rusty Mosher, owner of Riverdance RV Resort located between Gypsum and Dotsero, Colo., told the Vail Trail that he believes break even at a 35% occupancy rate is “very realistic.”