NEW PHILADELPHIA, Ohio — The 104-room lodge at Atwood Lake Resort and Conference Center will close Oct. 1.
The Board of Directors of the Muskingum Watershed Conservancy District said financial losses suffered over the past several years coupled with projected losses in future years have forced this action.
Seek to sell
In the interim, the Muskingum Watershed Conservancy District will secure a broker and seek to sell the facility, according to action taken by the board.
Local officials in attendance, who urged the board to keep the resort open, said they will continue to work for solutions at the resort. The board has directed the Muskingum Watershed Conservancy District staff to prepare and implement a plan of action to close the facility Oct. 1 and to modify the management contract with Prospera Management of Pittsburgh.
As part of the plan, the lodge will be open weekends only (except for special events) beginning Feb. 1 through April 30, and then open for full operations seven days a week from May 1 through Sept. 30.
Lagging business, a challenging economy and the rising costs of maintenance and improvements needed for the hotel and meeting center in the lodge were the primary factors identified in the board’s decision.
The lodge operation finished with a deficit of more than $1 million in 2009 and was projected to lose more than $1 million in 2010 if operations continued as usual, officials said.
The facility is owned by the Muskingum Watershed Conservancy District and has been in continuous operation since 1965.
“This has been a very difficult decision for the obvious reasons — dedicated employees could be losing their jobs, public services supported by the taxes paid by the lodge could be affected and the long service to the community by the lodge may be coming to an end,” said John M. Hoopingarner, Muskingum Watershed Conservancy District executive director/secretary.
“But despite the tremendous efforts of federal, state, county and local leaders, as well as business officials, the economic challenges simply are too great to overcome.”
The resort includes the main lodge and meeting center, two golf courses (an 18-hole regulation course and a lighted, nine-hole, par-3 course), 17 vacation cabins and indoor and outdoor swimming pools, along with other amenities.
Day-to-day operations of the facility have been handled through a management contract for the past several years by Prospera, which employs the staff at the lodge. The operation currently has about 20 full-time and 40 part-time employees.
Atwood Lake Park and its campgrounds and facilities are not affected by the decision to close the lodge and will be open as usual in 2010. The two marinas located in the Atwood Lake region also are open and will continue normal operations.
Two major events scheduled at Atwood Lake Park — Alive 2010, the Christian music festival set for June 23-26, and the 28th Annual Atwood Area Fall Festival Oct. 1-3 — also will be held as announced.
The Muskingum Watershed Conservancy District announced early in 2009 that Atwood Lake Resort & Conference Center was for sale as one of the primary goals established by the board of directors for the year.
The resort, located in Carroll County near Dellroy and Sherrodsville, has been losing money for several years and was becoming an increasing drain on the Muskingum Watershed Conservancy District’s budget and ability to make improvements at its other recreation sites, including lake parks and campgrounds, Hoopingarner said.
“In 2009 alone the Muskingum Watershed Conservancy District advanced nearly $1 million in cash to support the operation, make payroll and pay its bills,” Hoopingarner said. “The continued slide in room occupancy, meeting room reservations and restaurant business does not appear as if it will turn around any time soon.”
The Muskingum Watershed Conservancy District said that room occupancy for 2009 was slightly more than 30 percent, with an estimated 60-percent occupancy rate needed to break even.
The Muskingum Watershed Conservancy District has worked throughout the past year with various entities interested in the continued operation of Atwood Lake Resort in its present or other capacities, Hoopingarner said.
In September, the Muskingum Watershed Conservancy District, Carroll County commissioners and Kent State University Tuscarawas agreed to form a partnership for potential grant funding and/or other possible opportunities. The Muskingum Watershed Conservancy District also advertised this fall for proposals for the outright purchase of the resort from interested buyers, and those bids were due Jan. 4.
Prospera and Kent State University Tuscarawas have offered to participate in partnerships with any potential buyers, although each has said it is not interested in purchasing the resort.
During the meeting, board members rejected two proposals presented to the Muskingum Watershed Conservancy District for the sale of the property. Both bids offered to purchase the property for $1 with varying strategies of shared debt during upcoming operation by the proposed new owners, but were considered inappropriate to cover the value of the facility and the debt that is owed on it by the Muskingum Watershed Conservancy District.
“It would have been irresponsible of the board to accept either proposal,” said Harry Horstman, president of the board of directors.
Top employer. Atwood Lodge is one of Carroll County’s top employers, according to county officials. It also pays significant taxes to the county and township where it is located, as well as bed taxes that assist the Carroll County Convention and Visitors Bureau in its work to market the county as a tourist and overnight destination.
During recent years, the lodge has had an annual payroll of nearly $2 million and paid more than $300,000 per year in real estate and other taxes to local governments. During peak operations, it employs about 150 workers.