A state audit released today shows a state-owned resort in southern Iowa posted an operating loss of $350,000 in the last fiscal year.
The Honey Creek resort is located along Rathbun Lake in Appanoose County. Andy Nielsen, with the State Auditor’s office, says the primary reason for the deficit involves a recent change in management of the resort.
“That new concessionaire, Delaware North Companies, took over on June 1 of this year, so the month of June is not included in these financial statements,” Nielsen said. “And the month of June is usually a very good month for conventions and otherwise having people at the resort.”
A Minnesota-based company, Central Group Management, had previously managed the Honey Creek resort since its opening in 2008. The audit released today notes the operating loss last year followed two years of profits.
“In winding down the previous management, I think things went very well for how these things go and I think the DNR is excited about the possibilities,” Nielsen said. Honey Creek posted a profit of nearly $326,000 in Fiscal 2015.
The resort includes a lodge/hotel, cottages, a conference center, restaurant, indoor water park, and an 18-hole golf course.