RVBusiness, March/April 2019

Ocean City Md based Blue Water Development is working to open a 234 site park Outer Banks West Currituck Sound KOA in time for Memorial Day weekend M A R C H A P R I L 2 0 1 9 RVBusiness 101 taking up spaces basically taking spaces out of inventory he continued In the past five years there have been close to two million RVs sold Thats a lot of RVs on the road chasing a fairly static amount of inventory And as more and more RV sites are taken out of inventory market demand increases for new RV sites but thats not the only factor driving demand for new RV parks according to consultants They note that many people who buy RVs work in the construction industry nursing or other specialized fields that require them to live and work in different parts of the country for weeks months or perhaps for two or three years before moving on to their next work assignment Some communities also have a shortage of available rental housing which prompts these transient workers to find rental space in existing RV parks and resorts Probably a quarter of my business is people wanting to build because of businesses and construction workers coming in and needing a place to stay Moore said Its carpenters electricians pipe fitters and concrete people Some are traveling with their wives but a lot of them are finding jobs in outlying areas and their wife stays back home Gorin added that its not just the construction industry thats creating the demand There is a big market for hospital workers and other traveling workers he explained There is a huge market near Amazon warehouses fulfillment centers and amusement parks In most areas there are not enough places for temporary workers to rent noted Homer Staves a Billings Mont based campground industry consultant adding that construction projects involving wind and solar energy farms are also creating demand for RV parks in remote areas of the country Navigating Regulations Of course regulations vary widely from city to city and county to county so landowners developers and investors need to thoroughly investigate the feasibility of building new parks in certain locations before they are able to obtain support from investors or bank officials In fact doing research to find out which projects are viable is precisely what Gorin Moore Staves and other consultants do In the case of existing parks that are targeted for purchase by developers or investors consultants prepare feasibility studies that examine every aspect of the parks potential Bank officials and investors also rely on independent feasibility studies to help them determine a projects viability whether its a park thats being significantly renovated or a new park being built from the ground up noted Gorin They want a third party who is an expert in the industry to look at the deal and the location and the market and prepare a report that outlines everything weve learned about the park and its possibilities Gorin explained adding that his companys latest feasibility studies have also involved second and third tier areas where property owners are wanting to develop parks to accommodate workers in the oil gas and shale production industries But whether the project is an RV park resort or campground the money required up front to develop a campground or RV park is far higher than it used to be not only because of increased regulations and permitting requirements but also because of the vastly increased amenities that todays RVers require such as 50 amp electrical service and fiber optic WiFi systems consultants told RVB You really cant start a decent campground today without an investment of at least 2 million for a 100 site campground and thats on the low side Staves said adding The day of the momand pop do it yourself campgrounds has almost disappeared The private park business has also become increasingly diversified with different park owners catering to different types of RV owners in different parts of the country Developers and industry consultants told RVB that investor capital in the private park business is targeting four different market segments all of which are seeing new signs of investment and market activity These include new glamping resorts traditional snowbird resorts extendedstay RV parks that cater to traveling workers and other full time RVers and diversified high end resorts with hotelstyle accommodations that appeal to every market demographic Officials at Ocean City Md based Blue Water Development are working to open the 234 site Outer Banks West Currituck Sound Kampgrounds of America KOA in Coinjock N C in time for Memorial Day weekend It was a bare bones campground previously said Kim Wootteon Blue Water Developments director of sales and marketing We are repairing replacing and rebranding the campground as a KOA with a full portfolio of amenities and a three year development plan The park will include a mix of full hook up pull through and back in RV sites park model cabins primitive tent sites and a few furnished glamping tents But while the Outer Banks is a popular vacation destination Blue Water is also intending to designate 75 of its RV sites as seasonal sites Blue Water also was expecting to close escrow on another campground acquisition in an undisclosed location in late March Ed Mayer has been involved with developing parks for nearly two decades having developed two successful RV resorts in Florida with large numbers of park models These include Elite Resorts Homer Staves Kim Wootteon