Star Plunge owner: Revamping Hot Springs park could push out family business

“We want to make Thermopolis more of a year-round destination,” Nick Neylon, deputy director of Wyoming’s Outdoor Recreation Office and Division of State Parks, said at a recent meeting. “We think that with better facilities and more opportunities, that could happen.”

But the process could expel longtime concessionaires, including the owners of the historic Star Plunge, and contention has bubbled up over how the state is handling the park’s fate.

“I think it would be a shame to allow an out-of-state investor to [run] the property,” Steve Voytilla, a former Thermopolis resident who has visited the Star Plunge since 1975, said. “I absolutely love coming to that 150-year-old facility. I don’t want a new facility there. It’s historic. It’s beautiful. It’s wonderful. It’s probably the coolest swimming pool in the world.”

The process has ignited questions about what Wyoming can gain, or lose, as it attempts to embrace an outdoor recreation and tourism economy while retaining long-held values of locals and visitors.

Landlord to mineral waters

The park is fed by a system of hot springs that originate deep in the earth and emerge near the river, primarily the Big Horn Spring.

Native Americans visited the waters, which they prized for their healing qualities, long before white settlers, and the original 1-square-mile park land was established through a treaty between the Shoshone and Arapaho tribes and U.S. government. The land was later ceded to the state on the stipulation that there always be free public access to the therapeutic waters. What began as a reserve became the state park in 1929.

Star Plunge was established as a wooden structure sometime between the 1890s and early 1900s, according to state documents; its outdoor pool was built in 1950. Nearby Tepee Pools was built in 1967 and rebuilt after a 1975 fire.

Unlike other parks in the state system, Hot Springs — which has grown to 1,100 acres — is a far cry from a wilderness experience. The springs are developed into indoor pools with steam rooms and slides, while parking lots and paved roads encircle the grounds. Playgrounds, picnic areas and two hotels sit in the park.

Its visitation numbers, at more than 1.5 million annually, far outpace other parks — none of which even hit 750,000.

Concessionaires offer services at privately owned facilities: the Star Plunge and Tepee aquatic centers and Plaza Best Western and Days Inn Hot Springs hotels.

In recent years, some concessionaires have operated on short-term management agreements rather than long-term leases, Neylon said. Along with the fact that Wyoming prefers the longer arrangements, a 2019 law stipulates State Parks can no longer operate under year-to-year leases with concessionaires, “that we had to enter into longer-term agreements.”

That, combined with a 2016 Hot Springs Master Plan that envisions the park “as a premiere [sic] destination, offering a diverse range of recreational opportunities in an unparalleled natural and cultural setting,” led to the recent developments.

“The vast majority of people in the community that we hear from say that they want Hot Springs State Park to be … the jewel in our system,” Neylon said. “And to do that we need to have the best possible facilities. Unfortunately, the ravages of time have taken their toll on both the Hot Springs Hotel and the Star Plunge, and they are no longer everything that they could be.”

All four of the facilities were built decades ago and are in various stages of senescence.

Tepee Pools has a new owner; Hot Springs I Limited Partnership acquired it in November, with improvement and renovation plans. It and the Plaza Best Western Hotel are now both under long-term leases. Because Star Plunge and Days Inn Hot Springs have been operated under short-term management agreements, with the prior expiring at the end of 2024, Neylon said, Wyoming put out a request for proposals in November for constructing, operating and maintaining new or improved lodging and aquatic facilities within the park. “Our goal was to either have a new or a dramatically improved hotel facility and waterpark-type facility,” he said.

The Wyoming State Parks and Cultural Resources Commission held a special online meeting last week to review the three bidders’ proposals.

Wellness spa and more slides?

An evaluation committee scored the proposals, but bidders were kept anonymous at the meeting. In summary:

Proposal A includes renovations to the hotel, such as a redesigned lobby and restaurant, a new mineral pool and glamping teepees along the riverfront.

Proposal B includes transforming Tepee into a spa and wellness center in a full reconstruction while enhancing family facilities and the mid-century character of the Star Plunge with new slides, pools and a poolside diner; rebuilding or renovating the hotel to take advantage of the river area with upgraded dining and large riverfront sitting areas. Potential other offerings include nature trails, a drive-in theater, glamping facilities and a brew pub.

Proposal C includes renovations and upgrades at Star Plunge with new features such as a splash park, pizzeria, ice cream parlor as well as replacing the vapor cave. It does not include any hotel or banquet facilities.

The evaluation committee gave Proposal B the highest score, with 5,213 out of 6,000. Proposal C scored 3,379 and A scored 2,786.

The parks commission approved the evaluation committee’s recommendation of Proposal B — which isn’t Star Plunge’s proposal. That recommendation now sits with State Parks and Cultural Resources Director Dave Glenn, who will make the final decision on who wins the bid.

There is no protest process for the decision, Neylon said.

Outcry

Several members of the public — including residents of Montana, Colorado and Utah — attended the meeting to defend the Star Plunge and question the state’s interest in awarding the contract to someone other than long-time operator Roland Luehne, whose parents bought it in 1975.

Luehne has been vocal about his desire to remain at the helm. In 2016 he started a change.org petition to “Save Star Plunge.” It has gathered nearly 12,000 signatures.

Many questioned the state’s right to expel Luehne, asked if it will compensate him and warned of litigation. Others defended Luehne for work he’s put into the facility. Some said they enjoy how affordable it is and worry a new operator — particularly one from out of state — would result in costlier, out-of-touch facilities.

“Be very careful of taking away a unique and precious gift that benefits us all,” said Thermopolis resident Danita Sayers.

“I don’t understand why you would not try to work a deal with Mr. Luehne,” the former Thermopolis resident Voytilla said. “He’s brought a lot of money into the community.”

The notion that the state hasn’t tried to negotiate with Luehne, Neylon said, “couldn’t be farther from the case.”

“We spent the better part of the decade trying to negotiate a long-term lease with both the Hot Springs Hotel and the Star Plunge,” he said.

Luehne told WyoFile he didn’t sign a lease “because the state demanded that after 20 years, I would give them my facility and all the improvements with zero compensation … Who would sign that?”

The long-term lease that began when Luehne’s parents bought the facility expired in 2008.

A forgone conclusion?

The 2016 Hot Springs Master Plan laid the foundations for major changes in the park.

“Over the years, the Hot Springs State Park’s legacy as a premiere [sic] health, wellness and outdoor destination has diminished,” the executive summary reads. “Today, some concessionaire operated facilities are deteriorated with extensive need for improvement and redevelopment … Facilities are not keeping pace with contemporary outdoor activities, recreational trends, and changing demographics.”

The plan also notes that the Big Horn Spring flows are diminishing, requiring a reassessment of resource management.

The plan set forth a vision for a park redesigned to be more cohesive, diverse, pedestrian friendly and inclusive of natural features. It estimated costs associated with state park infrastructure improvements at $26 million, a number that doesn’t include concessionaire-borne expenses.

Luehne believes Wyoming has been attempting to push him out for years.

“They’ve determined that they do not want a local small-business owner in Hot Springs State Park,” he said. By focusing on hotel improvements, he said, the request for proposals essentially rules him out by requiring the bidder to have deep pockets.

Luehne’s family has poured a large amount of money into the facility, he said, and it generates more than 100,000 swims a year. The potential loss is “just heartbreaking.”

Wyoming has followed its concessionaire guidance and protocols, said Brooks Jordan, Big Horn District manager for State Parks, and the RFP is a well-thought-out document based on need. A recent hotel study called for more lodging inventory, for example.

He refutes accusations that Wyoming is operating in bad faith.

“With the RFP, we’re really trying to do what’s best for the park, and the community and the state,” Jordan said. “We really want a world-class facility in Thermopolis.”

WyoFile is an independent nonprofit news organization focused on Wyoming people, places and policy.

This story was posted on April 17, 2024.