Community Owned Enterprise
By Ron Phillips
If you visited a national park in the last several years, chances are the concessionaire you purchased your souvenirs, food or lodging from was a large corporation headquartered thousands of miles away. Probably the gift shop or snack bar where you made your purchase is one unit among a chain of similar facilities managed by that corporation.
This summer, the situation at the Oregon Caves National Monument is different. The concession at the Caves is being managed by “the Oregon Caves Outfitters” the name assumed by the Illinois Valley Community Response Team, a 501 (C) 3 non-profit established as part of Josephine County’s designation in 1994 as an Enterprise Community to fight chronic poverty and unemployment. The Outfitters are one of a small handful of non-profit organizations doing this and the only one managing a concession offering a full range of hospitality services.
The opportunity for the IVCRT to take over management of the Oregon Caves facility presented itself when previous concessionaires declined to bid. Without having Crater Lake in tandem, and with the Park Service conducting the cave tours, the Caves isn’t profitable enough to attract the big players. But what may be peanuts to a corporation is significant for a community. With the ten-year federal designation and funding coming to an end in December 2004, the Directors of the CRT have been struggling with how to maintain the organization. One strategy that was decided upon is to invest in businesses that will further the CRT’s mission while producing an income stream—a harnessing of capitalism for social purposes, if you will. Faced with the prospect of the concession remaining closed this season and the fallout for regional businesses that would have resulted for years to come, it became imperative to do everything possible to keep the concession open. Thus the Caves concession became the first opportunity to put this strategy to the test.
The other factor in choosing to apply for the concession was the desire to integrate the Caves back into the broader community. It is hard to find a long time resident of the Illinois Valley who does not have some personal tie to the Caves. Over the years, however, as the concession shifted out-of-state with top management being rotated in and out, ties to Cave Junction atrophied. Summer jobs—especially those paying minimum wage—have been filled by locals, but what has been missing is the synergy that stronger community ties would bring.
In light of these considerations, the Directors voted in early May to pursue the concession; the main obstacle was the Park Service’s regional office wanting to try one last time to entice a corporate bidder. Finally, the decision was made to allow the CRT to apply; the proposal was finalized and submitted. Then came the wait while the proposal was being analyzed. With time running out before the traditional opening on Memorial Day, the CRT began operating in an “as if” mode and began to gear up. People were offered and accepted jobs (in some cases in preference to higher pay-ing, secure offers) with the contingency they would be hired if the concession was awarded; menus were written, food orders prepared, insurance policies researched—all the innumerable steps that had to be taken. By this time the Board had voted to apportion a significant amount of the remaining funds for start-up of operations. Approval finally came on May 28th—thanks in large part to the persistent follow-up of the local Park Service management.
Immediately, things went into overdrive with June 7 set as opening day—only ten days away. Volunteers, who had been waiting in the wings, were quickly mobilized. A small army including Honor Students from Lorna Byrne Middle School, their sponsors, Board Directors, and community members descended on the Chateau to give it a massive spring cleaning after its having sat unused all winter. Everything from the huge walk-in freezers in the basement to the wooden blinds in the lobby were thoroughly scrubbed, dusted, mopped and vacuumed. Part of what kept spirits high was the creation taking form in the gift shop. In addition to the usual souvenirs, the work of local artists and crafters was being incorporated as part of the effort to bring the Caves home to the Valley. Paintings were hung, hand crafted jewelry perched, and sculpture and carvings carefully placed; the final effect was amazing, transforming an ordinary souvenir shop into a Gift Gallery.
The doors opened as planned on June 7th. It turned out that the outpouring of volunteer support had accomplished in ten days what a team of professionals usually take 4-6 weeks to do in setting up for the season. It has been necessary to go back and fill in some gaps but the Chateau was open for business on schedule.
The primary motivation for taking on the challenge of the concession was the sense of recovering something that had been lost—both psychological and practical. The Caves are in effect the keystone of Valley tourism. The opportunities for using the concession to promote the Valley are innumerable. In addition to the artwork being sold in the Gallery, other local products are sold wherever possible. A locally crafted log swing entices tired visitors by the pool, while a matching sofa sits on the second floor landing. Local food products are proudly served in the coffee shop. Diners can choose from among wines produced in the Valley or try the local micro-brew that is on tap. Locally grown organic produce is served, and the smoothies contain local blue berries. Baked goods and deserts from local caterers tempt diners and are available in the snack bar as well.
As part of the contract, the CRT purchased the remaining inventory from the previous concessionaire. The goal is to gradually replace the generic, “imported” souvenirs with locally designed and produced goods. A first step was made when a new line of sweats and tee shirts appeared, designed by a resident graphic artist and screened in O’Brien. New designs for glassware will be readied for next season, and other products will be brought on line as existing stock is liquidated.
The business side of things and the importance of bottom-line profitability are not being ignored. The first month, which usually ends in the red due to low visitation and start-up costs, showed a profit of over $8,000. In the first two weeks of July, sales have increased dramatically and should be almost triple the June figure of $45,500 by month’s end. It is a short, intense season—three months at best with some spill over into September weekends. The plan is to extend the shoulder season by becoming a venue for workshops and conferences; the hope is that other non-profits will see this as an opportunity to help out a sister organization.
There are several remarkable things happening in this experiment. The joining together of the non-profit with the for-profit is an interesting model for how to maintain a service organization in the face of dwindling funding. This is a very appropriate strategy—especially for the CRT, which is engaged in economic development—for it not only generates revenues to help support public service activities but also creates jobs, directly and indirectly. Thanks to the concession, the CRT is now a tourism player, not just a sideline purveyor of studies and reports. This new credibility should allow the CRT to better perform a coordination and planning role, for it’s clear that becoming a tourism destination site requires a close harmony of businesses working together. The plan is to host (at the Chateau naturally) a Sustainable Tourism conference this Fall as a catalyst to discussions on both practical and strategic ways local businesses can work together. The eventual goal is formation of a formal Visitors Association to continue to foster economic collaboration.
It is hard to
know what impact local management of the concession is having on the community
psyche; if nothing else, it appears to be a hot topic of conversation. In
a community still recovering from a traumatic economic battering, any local
achievement is a source of pride and healing. This year’s contract is
for a single season; the challenge is to perform well so that the contract
will be renewed and the experiment can continue.
Ron Phillips, a new arrival to the Illinois Valley, is a self-described
“east coast hillbilly” from the Appalachian Mountains of Virginia
and North Carolina. With masters degrees in Planning and Organizational Development
Ron has spent most of his professional life working with agricultural co-ops
and worker-owned businesses in Africa and Eastern Europe, including the former
Soviet Union. Ron invites readers to contact him at (541) 592-4440; ronphillips@ivcrt.org,
to discuss and share the CRT experiment.
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