SIOUX FALLS, S.D. (KELO) — An opportunity to operate a restaurant and convenience store on South Dakota state-owned property near Pierre is available. If an operator is not found for this year, it’s likely the restaurant will close, a state Game Fish and Parks official said at the March 6 GFP commission meeting.
The GFP receiving proposals for a restaurant concessions operator at Spring Creek Recreation Area on the Missouri River until 8 a.m. CT Tuesday, April 15. This is the second round of requesting proposals. GFP official Shawn Blanchette said at the March 6 meeting. The first round started in January and was not successful.
“We don’t intend to continually on an indefinite basis to offer continual RFPs for this opportunity,” Blanchette said. “If this effort does not yield an acceptable an acceptable response that results in a concessions agreement our report at the May meeting, may include a recommendation to discontinue restaurant operations at Spring Creek.”
The GFP did agree to one change in the original January prospectus. Blanchette said the lease would offer a minimum franchise fee of 4% of gross receipts or utility cost reimbursement to the GFP.
Blanchette said the reimbursement for utilities is estimated at $10,000 year, based on past costs.
The GFP has paid utility costs for the restaurant and almost all operations costs. While the restaurant has successfully drawn customers, there “is no return on operation investment” for the GFP, Blanchette said.
The restaurant is the main focus of a possible lease but operators can choose to include the convenience store. The GFP has operate the convenience store for several years.
“It’s been suggested it might be suited for a private operator,” Blanchette said.
GFP does not sell alcohol or tobacco products, according to the GFP prospectus. Limited food items are made available under GFP management.
The restaurant’s gross revenues were $248,902 in 2024 and $242,120 in 2023 and $225,453 in 2022. The 2024 gross revenue for the convenience store was $58,500, according to the GFP prospectus.
The GFP is offering a three-year lease with two possible one year extensions.
The state has leased the Spring Creek property since at least 2008. Blanchette said it was once a private full resort that lodging and a full marina.
“Everything is owned by the GFP,” Blanchette said. The GFP rents the lodging and maintains boat ramps.
The restaurant has had various operators since 2008 and at times, the GFP has struggled to find an operator. The restaurant closed in 2019 after it lost a long-time operator. It re-opened in 2020. The GFP sought another lease agreement in 2021.
The restaurant has multiple spaces with about 900 square feet in the main dining area. The bar area has about 560 square feet with seating for 40. The restaurant also has a special event room with seating up to 48. The outside deck has a capacity of about 26.
