Tennessee Valley Authority
Mallard Creek Recreation Area
Purpose
TVA is seeking proposals from qualified candidates to develop, operate, and maintain Mallard Creek Campground and Day Use Area on Wheeler Reservoir in Lawrence County, Alabama. 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 Mallard Creek recreation area.
The specific area includes approximately 87 acres of TVA public land on Wheeler Reservoir. TVA initially built the Mallard Creek recreation area in 1971 and operated the facilities until the present time. TVA will consider additional facility expansion within the 87-acre footprint.
Existing Facilities
The campground as currently arranged contains 44 campsites with water and electric hookups, one bathhouse with showers, one picnic pavilion, and a sewage dump station.
The day use area contains 10 picnic tables, a picnic pavilion, a swimming beach, a boat ramp, paved parking spaces, and an additional bathhouse.
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.)
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.
For construction activities within the area marked in blue and designated as “no dig” on the exhibit map, the plans and schedules are to be submitted to TVA no less than 12 months prior to the planned initiation of the construction activities. Ground disturbing activities within this area, without prior TVA approval, could result in termination of the easement or lease agreement, and potential fines by the United States Department of Interior.
In addition, a historic cemetery (see exhibit map) is adjacent to the existing campground, but not part of the easement or lease area. The boundaries of the cemetery are denoted on site by a chain fence. Grantee and the campground users may use the existing paved road through the cemetery for ingress and egress to facilities within the easement or lease area. However, all vehicles must be kept on the paved road through the cemetery.
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.