TVA Campgrounds and Marinas Face Big Fee Hike in 2013
A new fee system to be implemented by the Tennessee Valley Authority on marinas and campgrounds using TVA land will ultimately raise the rates local marina and campground owners must pay, those owners said.
“They will increase a great deal,” said Sabrina Brown, who owns Painter Creek Marina in Bristol, Tenn., with her husband, Franklin Brown II. The marina is one of a handful along South Holston Lake.
The new fee structure has been coming down the pipe since 2010, but will take effect in January 2013. The fee will affect owners of marinas and campgrounds that have land agreements with the TVA, tricities.com reported.
How it works
Calculation of either of these fee approaches will take into account the total TVA land area involved in the commercial operation and any associated harbor limits over TVA land. All agreements will be subject to an absolute minimum annual rent, which in 2010 was set at $1,500. The two approaches are:
A) Fair Market Value: Payment will be based on appraised value of the raw land and any TVA-provided improvements and associated harbor limits. First year’s payment will be a percentage of that value based on TVA’s commercial recreation rate of return, which will remain 7.25 percent until Jan. 1, 2016. An escalation percentage also will be determined. After five years, property can be reappraised.
B) Percentage of Gross Revenues: Payment will be based on the percentage of gross revenues, which ultimately come out of the net revenue for the business. They include: boat and motor fuel sales – 1 percent; restaurant facilities – 2 percent; marina – 4 percent; campground on TVA land built by TVA – 6 percent; campground on TVA land built privately – 4 percent; and campground using marginal strip only – 4 percent.
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