RED ROCK— At the township’s April council meeting, council heard a consultant’s report regarding the proposed new RV Municipal Camp site for the town.
The report began by identifying the primary goal of their work, which was to determine the financial viability of this project and the business model that would work best for the Township of Red Rock. Other Key goals for a project of this nature were listed as: “increase amount of visitation to Red Rock and area, facilitate economic growth, and expand the amount of RV camping sites in Northern Ontario.”
Eric, who represented the consulting firm, presented a Market Location Analysis conducted to look at the supply and demand in the area for RV usage and camping. The analysis found that the demographics of the area supports the fact that there is a strong current demand for RV camping in spite of the restrictive effects of the COVID-91 pandemic. It also showed that over the past few years, RV purchases were on the rise. The analysis further highlighted Red Lake’s ability to offer well-located campgrounds that feature its natural beauty and several key amenities. The focus of the Market Location Analysis centre around “over night camping versus seasonal campground leasing.”
The report by the consultant, confirmed the fact that the economic impact of seasonal campers is substantial and that there was evidence of a lot of tourism in Ontario that is RV seasonal camping in nature.
Council was able to look at the research the consulting firm had conducted regarding the campground design, while it also considered the creation of a conceptual design that would be more efficient based on its usage. In the consultant’s view, “the scale typically of a private sector campground was said to be 150 spaces and up; a number that is necessary to support the amortization costs of providing that many spaces, so that the resulting revenue would be sufficient to support that kind of a capital investment.”
The conceptual design presented to council was proposed to be built in two phases, although the recommendation leaned towards it being built in one phase. The site would provide 90 RV sites with 19 tent sites for a total of 109; with the mandate guaranteeing that there was sufficient space to accommodate that many RV camping sites. Ultimately, the consultant, Eric, admitted that the municipality would have to solicit the help of a camp site designer.
Overshadowing the conceptual design was the realization that if the marina was to be considered as a location, the need for sufficient parking for both overnight and seasonal users would have to be a priority. “Sites must be perceived as high quality.” added Eric.
When considering the areas for the site he stated that they “chose a niche not being served by the private sector or the market. With the increased size of RV’s today, most cannot simply park in the many provincial park camp sites available. Vehicles are hitting trees, and other visible damage is a consequence.”
The location considered for one potential design is the prime sites on the waterfront. The town could charge similar camping fees as provincial KOA’s which is $95/night, with the area offering water, sewage and electrical services.
Any concerns regarding the higher cost of the needed insurance for the municipality for this type of facility, would be paid for sufficiently, from the revenue generated for camp site fees which families who want to use the camp site would be paying.
The consultant highlighted that, “Red Rock has a significant number of natural amenities and community assets for those casual campers or the 55+ crowd, to partake in. There will also be a need for ample signage along the highway. Pull through sites are ideal and just the fact that you have them will attract campers.”
It was projected that during the months of July and August the community could reach an 85 per cent occupancy rate of all the available sites. During what was described as the “Shoulder Season” as May and June, September, October, they could reach a 20 per cent occupancy rate, after the first year of operation.
The report showed that Red Rock has several key strengths to support such a project including, proximity to the City of Thunder Bay. Eric added that, “Just the number of campers from Thunder Bay would support the cost of this project. The wait list for seasonal campers is years long, so Thunder Bay represents a really good financial back-up.”
A few challenges that the Township of Red Rock would have to face were also presented. For example, the lack of highway visibility and the expected dependence on external capital funding were mentioned. But the report highlighted the key benefit that the city would have as a result of being able to design the project from scratch, which ensured the camp site would adequately meet today’s needs.
Essentially, the hope would be “to increase the amount of visitation to Red Rock and continue to re-vitalize the water front and bring in more people into Red Rock.”
The financial analysis, community impact and resulting job creation, was the final focus of the report. The municipality would definitely require substantial funding from the government to make this project work.
In their estimation, “The norm for a project such as this is 90 per cent government funding, which in their view is enough to not only build this Municipal Camp Site, but also enough to generate a surplus.”
Community economic impact with campers spending locally is estimated at $1 million per year. The hope therefore, is that this project gets the required financial support from the government, since without government funding, the project realistically will not be feasible for the town.
Red Rock council unanimously voted to accept the RV Camp Ground Report, at their April 4, 2022 meeting, and will pursue funding for this project.
