Tennessee Valley Authority
Cedar Point Recreation Area
Purpose
TVA is seeking proposals from qualified candidates to develop, operate, and maintain Cedar Point Campground and Day Use Area on Normandy Reservoir in Coffee County, Tennessee. The deadline for proposal submission is 4 p.m. March 1 2013. The area and facilities are identified on the vicinity map, concept drawing, and exhibit map.
The selected operator will be granted a commercial recreation easement for 30 years, or commercial recreation lease for 19 years, to manage and develop the Cedar Point recreation area.
The specific area includes approximately 37 acres of TVA public land on Normandy Reservoir. TVA initially built the Cedar Point recreation area in 1976 when Normandy Reservoir was constructed and operated the facilities until 1999. A commercial licensee then managed the area until December 2009. A commercial licensee re-opened the campground in April 2012 under a one-year agreement. TVA will consider additional facility expansion within the 37-acre footprint.
Existing Facilities
The campground as currently arranged contains 30 campsites, two bathhouses with showers, and a sewage dump station.
The day use area contains a picnic pavilion, 11 picnic tables, a swimming beach, and a boat ramp with 20 paved parking spaces.
Terms and Conditions
An example Grant of Term Easement document containing pertinent terms, conditions, and covenants is available for review. (A 19-year lease agreement would contain substantially similar terms, conditions, and covenants.)
The Cedar Point recreation area is serviced by a ground water well system. In addition to conditions described in the easement template, the selected applicant must additionally maintain the water supply system to meet all testing, reporting, certification, and operational standards as required by the State of Tennessee for a Small Water System including an operator certified by the state as a Small Water System Operator.
Administrative Costs and Annual Rent Payments
Each application must be accompanied by a $5,000 deposit. In addition, the selected applicant will reimburse TVA for a portion of the administrative and environmental review costs incurred by TVA associated with processing and executing the commercial recreation easement or lease. For this site, this total cost is $50,000 and must be paid either at the time the deed is executed, or in five consecutive annual payments of $10,000 with the first made at execution and the remaining four made on January 1 of the four succeeding years. The $5,000 deposit will be applied to the payment option selected by the selected applicant.
As described in the example easement document, the selected applicant may choose one of two options for payment of rent. Under the percent of gross revenue option, the selected applicant would pay TVA annually the greater of (1) a minimum annual fee, or (2) the sum of one percent (1%) of gross revenues from boat and fuel sales, two percent (2%) of gross revenues from restaurant sales, four percent (4%) of gross revenues derived from operations developed by the applicant, and six percent (6%) of gross revenues derived from operations developed by TVA. Under the market value option, the selected applicant would pay TVA an annual set fee derived from the appraised value of the TVA land used by the applicant. An example minimum payment calculation is provided for review. Also, additional information about the two payment options is provided on TVA’s Commercial Recreation Management Fees page.
Construction Activities
TVA must review and approve, in writing, all construction and other ground-disturbing activities within the campground, on the shoreline, and/or in the adjacent waters.
TVA approval is not required for routine maintenance activities, such as clearing brush, trimming tree limbs, and physical facility maintenance. All construction activities within the easement or lease area must be conducted according to all applicable state, federal, and local laws.