New York's State Park System Comments by Michael Barnes
November 19, 2008
Sub Committee Senate Meetings
As a New York based company with national and state park locations, both in this State and around the country, Delaware North has a unique understanding of the importance of parks and their impact to the economy, tourism and cultural heritage.
I am honored to be here today on behalf of the Office of Parks, Recreation and Historic Preservation to speak about the need to continue to revitalize New York’s state parks and historic sites.
As I mentioned, I work for Delaware North Companies Parks & Resorts, a $350 million dollar hospitality company based in Buffalo, N.Y. The company serves as guardian of 15 regional and national treasures and employs more than 5,000 associates. We currently work in four national parks: Yosemite, Sequoia, Grand Canyon and Yellowstone. We also operate at six state and regional parks. In New York State, these include Jones Beach on Long Island’s southern shore; a $6 million food, beverage and retail contract at Niagara Falls State Park in Niagara Falls; and Gideon Putnam Resort and Roosevelt Baths & Spa in Saratoga Spa State Park.
We believe each of these properties to be “special.” In other words, they can not be duplicated. They are completely original in their beauty and authenticity. We see ourselves as more than operators. We believe we are stewards of these special places and that we have been entrusted with the care of them. We want to share the message that these special places exist for everyone’s enjoyment and appreciation, and we take great pride in doing our part to ensure they are here for generations to come.
We have been in partnership with the state since 1995. At the end of our current contracts, that relationship will have spanned more than 30 years and been responsible for the infusion of $30 million dollars in capital dollars for the redevelopment and enhancement of irreplaceable New York public assets and injected an additional $30 million dollars in rent to the state.
As a partner of the Office of Parks, Recreation and Historic Preservation, my testimony today is that private investments alone cannot and will not accomplish the task of preserving and restoring our state parks. The state must invest in important infrastructure elements such as roads, walkways and structures. Failure to address these issues not only diminishes the guest experience, it is cause for significant health and safety concerns and may make private investment by partners unattractive at best and financially impossible at worst.
Our public-private partnership at Niagara Falls State Park has paved the way for capital improvements that have improved the value of the property and made it much more attractive destination. This capital investment in the park has succeeded in attracting more visitors to the park and has been integral to Delaware North’s success as a concessionaire there. In 2007, Niagara Falls State Park set record numbers in both attendance and sales – a win-win situation for both the public and private sector. The additional income trickled down and the financial effects were felt by other smaller New York parks in the form of improvements at their locations.
Of course, the trickle down effects do not stop there. Delaware North’s success means the generation of additional revenue for the New York State economy in the form of state taxes, the hiring of additional employees, consultants, contractors and many others to accomplish our contractual obligations. We believe strongly public-private partnerships are a viable, efficient means to enhance state park assets. Properly constructed public-private partnerships harness the management skills, technology and resources of the private sector, while solving the problem of the financial limitations of the public sector resources.
For a partnership to be effective, both parties must contribute. For the benefit of all, Delaware North is resolved to do its part for at least the next 20 years. At the same time, we hope the state likewise continues its financial support of the key capital projects outlined by Commissioner Carol Ash of the Office of Parks, Recreation and Historic Preservation.
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