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during the lifetime of the lease or agreement that will reguire 

 financing. The leasehold interest can be used as collateral for 

 the financing. An agreement does not convey the same support for 

 collateral as does a lease. Not having a lease will have a 

 chilling effect on future development. Few marinas have the level 

 of income alone to support financing. Banks want to see a lease 

 as collateral. 



In addition, with increased emphasis on a clean environment 

 and compliance to environmental regulations, concessionaires need 

 the ability to borrow funds. 



The old saying, "If it ain't broke, don't fix it'" may be 

 especially true in this case. Our members report that there are 

 fewer complaints today about concessioner service than any other 

 time. According to our contacts in the Corps and the National Park 

 Service, there is nothing but praise for the work and service of 

 concessionaires. We believe any reform offered by Congress should 

 not jeopardize today's success story. 



MOAA understands that H.R. 2028 would create uniform 

 statutory standards for concessionaires on all Federal land 

 management agencies. That intent, itself, is not bad. But, 

 because our members operate facilities on property owned by several 

 government agencies, it is clear to us that there are similarities 

 between concession policies, but there are also considerable 

 differences. 



Changes Proffered to Contract Renewals and Fee Structure 



MOAA believes concessionaires make a considerable financial 

 investment to operate facilities on Federal lands and assume 

 considerable risk. The primary purpose of concessionaires is to 

 provide a service to visitors to federal recreation areas. 

 Concessionaires provide high quality service including food, 

 lodging, and recreation which enables visitors to take full 

 advantage of the federal lands. These properties would not be 

 utilized if concessionaires had not invested time, sweat, and money 

 to develop the resource for the public. Small businesses did this 

 without the financial help of the federal government. And without 

 the investment of the concessioner, many Americans simply would not 

 visit a lake or federal land. Many of these facilities are in 

 areas that are relatively inaccessible. 



Renewable long term contracts are essential for a small 

 business and bank to make the needed financial commitment to 

 improve many of these properties. Our resorts would not have been 

 developed without considerable investment. Banks would not have 

 made the required financial investment without the security of a 

 long term lease agreement. If enacted, MOAA is concerned that bank 

 lending will stop which would not allow concessionaires to take 

 advantage of changing technologies and emphasis on environmental 

 compliance. Without financing being available for small business, 

 only big business will be able to invest in these properties. 



