Diamond in the Rough
The County board of supervisors is preparing to weigh the options presented by developer Doug Ose to frame a renewed contract for his continued private-level management of Gibson Ranch County Park.
On Monday, Sacramento County Supervisor Sue Frost toured Gibson Ranch for the first time since Ose assumed management of the 325-acre nature reserve and events center in 2011. Due to steep financial losses, the county was on the brink of closing the park. After her tour, Frost said she supports a fast-track to renewing a contract with Ose before his current agreement expires April 30th. From her perspective, no one wants to see Gibson Ranch close.
“It’s a beautiful space and we want to do everything we can to continue to let the community have access to this wonderful space,” Frost said. She stopped short of discussing specifics in either Ose’s proposal or those the Sacramento County Dept. of Regional Parks have put on the table. “I am not sure what the board will ultimately approve or not approve, but we are set to discuss all of the items and ideas and make a decision very soon.”
For Ose, the clock is ticking. “As of right now, I’ll be out of here on April 30th unless we can agree on something better,” said Ose.
Ose said he’s asked the county to consider a 20-year contract that would likely include increasing the park’s entry fee from $5 to $8, adding as many as 50 full hook-up RV camp sites, and the designation of the park as an official graduation space for local high schools.
“The ground rules have changed, and now we are at a point where I think we all want to see Gibson Ranch continue to remain open, but I need to stop the bleeding,” said Ose, who asserts that, although he saw a $22,000 profit in 2015, monthly losses in 2016 mounted to roughly $20,000 a month, largely due to increases in labor costs.
Visitation to the park however, is substantial. According to Ose, roughly 100,000 visitors came through the gates of Gibson Ranch in 2016. There are currently 90 special events on the books for 2017, including 43 weddings. Nonetheless, Ose, who is also a former congressman, said the costs of maintaining the facility are outpacing revenues.
“I have to pay 14,000 hours a year to run the place,” Ose said. “Somebody’s got to paint, trim trees, take care of the livestock, answer phones and book events. But with the costs of labor, insurance and electricity going up since we took over, the deal we have with the county is simply no longer working,”
That deal involves payment by Ose of $1 a year for rent and half of his profits to the county. In turn, the county agreed to pay Ose $500,000 over the current life of the contract for deferred maintenance, a much lower amount, Ose says, than it would have had to pay if the county managed the park on its own, considering the labor-intensive work involved.
“The primary difference between the government’s history of running the park and our tenure is that we can work seven days a week because we are not bound by government labor laws,” Ose said, adding that the county was losing roughly $5 million annually prior to his contract. “We’ve proven the theory that the county doesn’t have to lose $5 million a year. In fact now they are about $2.5 million ahead.
Regional Parks Director Jeff Leatherman did not return calls for comment. Ose said he’s not sure what Regional Parks wants for Gibson Ranch, but hopes they will see the value in the details of his renewal proposal.
The RV park idea, for example, claims Ose, could be one of the most viable options for ramping up revenue without significant changes to the park’s natural setting, something Regional Parks has had concerns about in the past. Ose said he’s had an engineer come out to evaluate the space available for the RV sites and, if approved, he thinks that piece alone could generate as much as $12,000 a month. Combined with event revenue and a hike in the entry fee, Ose says, things could easily turn around.
At the core of Ose’s proposal, however, is the request to lengthen his contract. A 20-year lease, as opposed to another five-year lease, he claims, would give him the time to implement significant revenue-generating programs and amenities.
“I have asked the county to consider a 20-year contract, something long enough to really put this private corporation to work,” Ose said. “We’ll see what happens, what the other ideas are, and hope for the best.”