Tennessee Valley Authority
Loyston Point Recreation Area
Purpose
TVA is seeking proposals from qualified candidates to develop, operate, and maintain Loyston Point Campground and Day Use Area on Norris Reservoir in Union 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 Loyston Point recreation area.
The specific area includes approximately 78 acres of TVA public land on the Mill Creek embayment of Norris Reservoir. TVA initially built the Loyston Point recreation area in 1974 and operated the facilities until March 2012. A commercial licensee operated the campground in 2012 under a one-year agreement. TVA will consider additional facility expansion within the 78-acre footprint.
Existing Facilities
The campground as currently arranged contains 64 campsites, two bathhouses with showers, a play court, and a sewage dump station. Forty-four campsites have water and electric hookups, and 20 campsites do not have hookups.
The day use area contains 10 picnic tables, a swimming beach, and an additional bathhouse.
The existing boat ramp and associated parking lot are operated by Tennessee Wildlife Resources Agency (TWRA).
Historical Campground Use and Utility Data
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 Loyston 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.
Electrical service to the Loyston Point recreation area is provided through an overhead electrical distribution service line as shown on the exhibit map (noted as a dark red line). The selected applicant will be responsible for annually maintaining the vegetation within the right-of-way of the service line.
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, as well as removal of trees larger than 3 inches in diameter.
Removal of trees larger than 3 inches without prior TVA approval could result in termination of the easement or lease agreement, and potential fines by the United States Department of Interior. For the removal of trees larger than 3 inches in diameter, the plans and schedules are to be submitted to TVA no less than 12 months prior to the planned initiation of the construction activities.
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.