‘Glamping’ soon to be part of $5 million Fort Worden business

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On May 1, the Fort Worden Public Development Authority will mark its fourth anniversary, and business has been booming since the PDA first began managing the area in 2014.

“We’re just growing and growing at about 19 or 20 percent over the last few years,” said Dave Robison, executive director for the PDA, during an annual report presented to Port Townsend City Council members April 16.

Revenue for 2017 was $432,572 higher than expected, Robison said. The PDA budgeted $4.8 million for gross revenue for 2017, but actually finished at $5.2 million.

Net revenue was budgeted at $92,477, but final real net revenue for the year was $161,466.

“With the growth is a lot of change and challenges across the board on our property. It’s been exciting to watch, and now we’re a $5 million business,” Robison said.

He said before the PDA was formed, Washington State Parks lost $1.2 million annually when it ran Fort Worden, and the park system could not keep up with the capital improvement needs. Under PDA management, the park has operated in the black for the past four years, he said.

The PDA manages 90 acres and 73 historic buildings within the larger 434-acre state park.

Robison said after the PDA signed a 50-year master lease for the property, its first goal was to make sure it could be financially sustainable.

As for expenses, 66 percent went to pay for staffing.

“To run Fort Worden’s 90 acres, it takes a lot of personnel,” he said. 

The next-highest expense was utilities at 12 percent of expenses.

 

ACCOMMODATIONS,

FOOD SERVICE

That revenue is generated by providing overnight accommodations and food service to guests.

More than $2.6 million of 2017 revenue was from accommodations, and $1.8 million was from food sales. Other revenues totaled $717,100, according to Robison.

Robison said the PDA invested $388,305 in building improvements in 2017 to make a better first impression on guests who stay at the fort. That work included replacing old mattresses – some of which were 30 years old – and repainting interiors, as some had not been painted in 40 years.

The PDA also purchased nearly $68,423 worth of new linens, furniture and pillows. Another investment involved replacing toilets, fixing broken water lines and replacing cracked windows, at a cost of $235,069.

The PDA opened a restaurant last summer called Reveille, and “it’s actually been quite a success,” Robison said.

“We couldn’t believe it, but we had over 600 people at our Thanksgiving brunch,” he said.

The PDA works with partners, including Centrum, a program dedicated to providing year-round art, music, dance, theater and other events at Fort Worden.

“If Centrum has an event, and it’s a weeklong event, people are coming, they’re in the meeting rooms … they’re in the Wheeler Theater, they’re eating in the (buffet) servery and they’re staying overnight. That’s the perfect scenario for us because it’s putting heads in beds, butts in seats and food on plates,” Robison said.

 

‘GLAMPING’

TO BE ADDED IN 2019

“Glamping” – or glamorous camping – is another area the PDA has focused on. Robison said the PDA has created a glamping business plan and prepared land for use for glamping behind the Goddard College building.

“We’re looking at 24 glamping units,” Robison said. “Glamping is also known as ‘glamorous camping.’ We’re actually putting in water and sewer in there, and we’re looking at our financing options. We’re going to begin construction in 2018 and we should have upwards of 20 glamping units available in 2019.”

Robison showed photos of what glamping tents might look like.

“And so that really does enhance our portfolio for accommodations and should bring in a whole new market of people that are interested in outdoor recreation programs, as well as other things to do at Fort Worden. That’s really a big investment priority for us,” Robison said.

 

NOT COMPETING WITH HOTELS

Port Townsend City Council member Robert Gray said he saw an online advertisement for a three-day stay at Fort Worden for the price of two days. The ad “got me to thinking about the possible competition and adverse impact that you might have on the downtown hotels, because I don’t think they can offer such a thing,” Gray said.

Robison said the PDA did not view itself as a competitor with downtown hotels.

Because Fort Worden generated 1,500 “program days” worth of events, “we’re a generator of things to do in Port Townsend and Jefferson County. And, there’s limited capacity in the town for overnight accommodations. I think most of the downtown business accommodations are doing fairly well,” Robison said.

“We don’t see direct competition … we’re all in this together. We’re all trying to create a great guest experience at a price point that a variety of people can afford,” Robison said.

A big difference in Fort Worden accommodations is, “We don’t have very many one-bedroom hotel units; we have large houses. We have two-, three-, four-, five-, six- and 11-bedroom houses. We don’t have hotel units,” Robison said.

The glamping accommodations would be directed at a completely different market, he added.

 

OTHER IMPROVEMENTS

The PDA has secured more than $7.7 million to fund its plans for a $14.4 million Makers Square arts, cultural and educational area.

Makers Square is to revitalize nine underutilized historic buildings into a vibrant, creative district featuring classrooms, artist studios, galleries and workspaces for arts, culture and education programs.

Another goal is to recruit and retain staff.

“Recruiting and retaining key staff in all departments has been our biggest challenge over the last three years. Finding the right people for the right job is challenging,” Robison said.

The high cost of housing has regularly been cited as one factor in why attracting workers to Port Townsend was difficult.

“One of the things that we’re proud about is a number of employees have been promoted to higher-paid positions and higher levels of responsibility,” Robison said.

A second operational goal for the PDA is to develop a sustainability plan that includes a recycling program, reusable beverage mugs and water bottle refilling stations to reduce plastic consumption.

A third operational goal is to develop an investment and financing plan for capital improvements. Robison said the PDA just went out for its first bond of $1.6 million to roll out an energy-efficiency program across the campus. Those changes will begin in May.

“So, all the buildings will be tied into a digital-control system, and we’re also going to put LED lighting in all the buildings and the streetlights, as well as a solar array in the commons,” Robison said.

The PDA also determined it was not feasible to upgrade the Point Wilson Lighthouse, as it would cost $400,000 to get water and sewer to that building.

Goals for 2018 include taking over responsibility for maintenance and repair work from Washington State Parks, including mowing the grounds and roadwork. Robison said the PDA would need an extra $580,173 to pay for that work.