Million Dollar Motorcoaches in Lake Havasu?

Jerry and Cindy Aldridge tout their proposed upscale motorcoach resort at The Refuge as a destination resort.  Listed below is a general rule of thumb used to describe a community as a “destination” resort: 

·       Major commercial airport

·       Major hospitals

·       Multiple championship golf courses

·       Numerous restaurants from casual to gourmet

·       Coach repair facilities

·       Entertainment & Activities

·       Major shopping from national department stores to designer boutiques to fine outlet malls

While not all of the key points will necessarily be located within a community, they must at least be accessible within a reasonable driving distance.  While Lake Havasu is a charming community, it currently lacks many of the key points to truly be defined as a destination resort.

Where does one find an upscale motorcoach resort? 

There are many RV destination resorts around the country and the majorities are seasonal in nature.  Popular winter destination areas are Palm Springs/Coachella Valley and Florida.

                      

Would an upscale motorcoach resort succeed in Lake Havasu?  

Most likely not.   The attraction of a “destination” resort is lacking and The Aldridges are suggesting that the sale price of the RV lots will range from $170,000 to $240,000.  Zillow.com indicates that the average home price in Lake Havasu is $137,800.

Would the Aldridge's investment of $25,000,000 for a motorcoach resort make sense? 

First, depending on the day of the month this investment figure seems to vary between $18,000,000 and $25,000,000.  Regardless of the figure, it can’t be supported by revenues generated seasonally, in this case the winter season.     

Have the Aldridges demonstrated their financial ability to develop the motorcoach resort?

The short answer is no.  Jerry and Cindy Aldridge have yet to demonstrate to the Lake Havasu City Council that they have the financial resources to support a $25,000,000 development.   Very few governmental agencies would ignore such a basic question when granting development privileges to private parties.

Would the Aldridges restrict the RV Park to only upscale motorcoaches?

Most motorcoach resorts are governed by CC&R’s much like any residential community.   Without CC&R’s, the RV Park proposed by City Center would be open to all classes of RV’s, travel trailers, 5^th wheel trailers and even camping tents (which is popular with bikers).

What’s the economic benefit of a motorcoach resort to Lake Havasu City?

The Aldridges claim that the Motorcoach visitors will produce approximately $11 million per year in business for Lake Havasu City.  Using their calculation of $11 million per year works out to an Economic Benefit to Lake Havasu City of $39,855 per RV Lot Renter, or $19,927 per person. The Lake Havasu Chamber of Commerce website estimates that 1 million visitors annually produce an Economic Benefit to Lake Havasu of $100 million, or $100 per person.  The Chamber of Commerce estimates each visitor's economic benefit to the City is $100 while the Aldridges anticipate nearly $20,000 per visitor to their Motorcoach Resort.  These numbers are ridiculous and unachievable and highlight the fact that the City Council has not adequately researched the Applicant's financial projections.