CUMBERLAND — The Maryland Board of Public Works approved on Wednesday a one-year contract extension for Crestline Hotels and Resorts, which operates Rocky Gap Lodge & Golf Resort near Flintstone.
The contract was set to expire in April 2011, said Bob Brennan, executive director of the Maryland Economic Development Corp. MEDCO owns the government-subsidized resort. Crestline manages the day-to-day operations for the 215-room facility situated within Rocky Gap State Park.
Brennan said the extension is “pretty important” because employees there need to know an effort is being made to keep the lodge operational. David Sanderson, director of sales and marketing for the lodge, recently told the Times-News it’s “business as usual” despite the controversial slots talk around the state.
Part of that discussion focuses squarely on the lodge and resort, one of five locations across the state approved to host video lottery terminals. However, there has been no qualifying bid received for the Allegany County site.
“In fact, we’re looking for business well into 2012,” Brennan said of the facility’s long-term outlook. “We want to make sure (workers) all stay motivated (and) active. If I were to tell you I wanted you to be doing work that would bring revenue in ... you’d probably want to make sure you’re going to be paid for it.”
The contract extension, and a new $400,000 line of credit, will help the resort cover operational expenses this season. Brennan said the line of credit is an annual act that helps to recover from the slower winter season. By year’s end, the numbers are more balanced.
“We’ve been doing this ... as long as I can remember,” Brennan said.
The Board of Public Works also awarded a master contract for $200 million to the Maryland State Lottery Agency to ensure sufficient funds are in place to buy whatever is needed for the slots parlors. The board is made up of the governor, comptroller and treasurer.
Brennan said the move aids in the acquisition of a qualified bid from a prospective slots license operator because that company now knows the state has the capacity to “support the gaming facility.”
Brennan has said he expects a new round of a request for proposals for the Rocky Gap site to be announced soon after the legislative session adjourns Monday. Without slots, the future of Rocky Gap is in limbo, Brennan said.
“Rocky Gap as a stand-alone business enterprise has not worked well,” he said. “Rocky Gap as an economic development project has worked tremendously well. There’s no denying, from the financial perspective, it’s been difficult.”
Kevin Spradlin can be reached at kspradlin@times-news.com.
Local News
Rocky Gap Lodge operator granted contract extension
Crestline deal was set to expire next spring
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