Exhibit B- Business Description.docx

Exhibit B Business Description Silver Falls State Park

The purpose of this Business Description is to provide the results of a market analysis to interested Parties. This Business Description describes key market and industry trends in consideration of the next operator of the lodging, food and beverage, retail, and other services at Silver Falls State Park (“the Park”).

Market Overview Geographic Setting Silver Falls State Park is in the town of Sublimity, Oregon, which falls in the northern region of Willamette Valley. Silver Falls State Park is a relatively short drive to several major cities. The Park is located approximately 24 miles southeast of Salem, Oregon; 55 miles south of Portland, Oregon; 77 miles northeast of Eugene, Oregon; and 130 miles northwest of Bend, Oregon. The table below provides details on the approximate driving time between the Park and the closest cities.

Exhibit 1 - Approximate Driving Times to Silver Falls State Park

Source: Google Maps The regions and counties of Oregon are shown in the following maps. Silver Falls State Park is in Marion County, which borders Linn County to the north, Clackamas County to the south, Yamhill and Polk Counties to the east and Jefferson and Wasco Counties to the west. The following exhibit illustrates the location of Silver Falls State Park within the region of Willamette Valley.

Exhibit 2 - Regional Map of Oregon

Source: Travel Oregon The following map illustrates the location of Silver Falls State Park in relationship to the counties in the State of Oregon.

Exhibit 3 - County Map of Oregon

Source: GISGeography Economic and Demographic Trends The market for proposed hospitality and recreation developments is dependent upon the overall economic conditions existing within the local, regional, state, and national landscape. To better understand these factors, OPRD considers the economic and demographic trends for Marion County, the State of Oregon, and the United States. The economic and demographic metrics are a critical component of a market analysis and provide context for the trends that the local and regional markets are experiencing.

Exhibit 4 - Economic and Demographic Trends for Marion County, Oregon, and the United States

Source: ESRI Business Analyst, US Census Bureau The data provided in the exhibit above indicates positive population growth for all relevant market areas. Total population has increased in all three market areas from 2020 to 2023. However, Marion County and Oregon are expected to grow slightly faster than the United States as a whole over the next five years. From 2023-2028, ESRI projects the Compound Annual Growth Rate (“CAGR”) to be 0.34 percent in Marion County, 0.35 percent in Oregon, and 0.30 percent in the United States. While the median and average household incomes for Marion County are lower than Oregon and the United States, the data also shows that projected increases in in Median Household Income and, Average Household Income in Marion County outpaces growth in Oregon and the United States from 2023 to 2028. This increase bodes well for future economic spending in the area surrounding the Silver Falls State Park. The unemployment rate in Marion County is higher than the State and national average which could indicate a readily available local labor pool.

The size and economic resiliency of the local population is important to understand as it relates to day-use and other retail and food and beverage services. However, overnight accommodations typically draw from a larger market area. Origin data has been analyzed from campers that stayed in Silver Falls State Park from 2018 to 2023 year-to-date, along with guests who stayed at Smith Creek Village from 2021 to 2023 year-to-date. The majority of visitors are from large cities in Oregon, such as Portland, Salem, Eugene, Bend, and Beaverton. The area within these driving distances represents a suitable market drawing area to evaluate for the existing operations.

Exhibit 5 - 30-, 60-, and 120-mile driving time from Silver Falls State Park

Source: ESRI Business Analyst ESRI Business Analyst utilizes data from the US Census Bureau to prepare an Economic, Demographic, and Income Profile report. The following exhibit presents the demographic and economic trends for the three driving time rings shown above. The analysis of the market drawing area data indicates that there are projections of population growth within all three driving distances. The data also shows a projected increase for the Median Household Income, Average Household Income, and Per Capita Income in all three driving times from 2023 to 2028.

Exhibit 6 - Demographic and Economic Trends for 30-, 60-, and 120-mile drive time of Silver Falls State Park

Source: ESRI Business Analyst, US Census Bureau Tourism While there are ample cultural and historical resources around the state, Oregon credits much of its popularity as a tourist destination to the expansive natural areas within the state. Reportedly, 65 percent of Oregon residents believe scenic destinations are the top draw for tourists.[footnoteRef:2] While visiting Oregon, individuals can see a variety of natural beauty, including coastal beaches, expansive forests, flat deserts, and snowy mountains. There are countless recreation opportunities to explore, such as hiking, biking, climbing, skiing, camping, kayaking, fishing, hunting, birding and more. [2: https://oregonvbc.org/tourism-in-oregon/]

In 2022, the amount of money spent directly on travel in the state of Oregon increased by 27.5 percent since 2021, from $10.9 billion to $13.9 billion. Further, an estimated 29.7 million people stayed overnight in Oregon in 2022, which is 8.7 percent more than the 27.3 million people who stayed overnight in 2021.[footnoteRef:3] [3: Travel Oregon]

Willamette Valley Tourism As shown on the map in exhibit 3, Oregon is divided into seven tourism regions: Oregon Coast, Portland, Mt. Hood & The Columbia River Gorge, Willamette Valley, Southern Oregon, Central Oregon, and Eastern Oregon. Silver Falls State Park is located in the Willamette Valley region, which is comprised of farms, vineyards, and forests. This region is where trails wind through old-growth forests, surging waterfalls, and epic vistas, wine grapes grow on verdant rolling hills and scenic backcountry roads are dotted with historic covered bridges.[footnoteRef:4] Willamette Valley is home to 15 State Parks, two State Forests, four National Wildlife Refuges, two State Fish Hatcheries, two National Recreation Trails, and one National Forest.[footnoteRef:5] [4: https://industry.traveloregon.com/regions/willamette-valley/] [5: https://stateparks.com/willamette_valley_oregon_parks.html]

Travel Oregon worked with Dean Runyan Associates to estimate the economic significance of the travel industry in each of its seven tourism regions and all 26 counties, including detailed estimates of travel spending. The following table shows that both total and visitor travel spending in every region increased from 2021 to 2022. Since 2021, total travel spending increased by 23 percent and visitor travel spending increased by 20 percent in the Willamette Valley. Visitors spent an estimated $2.2 billion in the Willamette Valley region in 2021, ranking it 2nd among the state’s 10 tourism regions in total visitor spending, benefiting from its wealth of outdoor product. The following exhibit displays the amount of travel spending that occurred in each region.

Exhibit 7 - Travel Spending by Region in 2021 & 2022

Source: Travel Oregon, Dean Runyan Associates As shown in the following exhibit, the trends in tourism spending within the region have remained relatively consistent over the last ten years. In terms of commodities purchased, tourists continue to spend the most on food service and accommodations, followed by arts, entertainment, and recreation. Further, regarding accommodations, visitors spend the most on hotels, motels, and short-term vacation rentals, followed by private homes, and day travel. Every category of visitor spending has increased since 2021.

Exhibit 8 - Travel Spending in Willamette Valley by Accommodation & Commodity Purchased

Direct Travel Spending (Millions)

Visitor Spending by Commodity Purchased (Millions)

Although every counties’ travel spending decreased in 2020 due to the Covid-19 pandemic, every county showed a positive CAGR from 2018 to 2022 except for the northern county of Multnomah. Further, every county’s travel spending has increased in the past year by 13 percent or more.

Exhibit 9 - Willamette Valley Tourism Spending by County

Travel Spending (Millions)

Marion County Tourism Located south of the Portland metropolitan area, Marion County stretches from the Willamette River to the Cascade Mountains encompassing nearly 1,200 square miles. Salem county is both the Marion County seat and the State Capital; Salem serves as one of the valley’s oldest cities. The city of Salem holds much historic value as it is home of numerous public buildings, such as the Courthouse, Courthouse square, State Capitol, Capitol Mall buildings and Salem Civic Center.[footnoteRef:6] The county also acts as a gateway to nature; visitors can fish, kayak, cycle, hike, climb, discover wildlife and gardens, and overall enjoy the natural beauty of the county. Silver Falls State Park, the Enchanted Forest, and the Oregon Garden are rated the top three outdoor attractions in the county. Whether one is interested in museums and history, arts and entertainment, or outdoor recreation, visitors to Marion County will never get bored. In 2022, Marion County hosted a total of 5,718,620 overnight visitors and 2,225,180 overnight parties. From 2021 to 2022, overnight visitors to Marion County have increased at a growth rate of 2.8 percent. [6: https://www.co.marion.or.us/Pages/about.aspx]

Tourism spending is distributed among multiple categories and the Oregon Travel study provides insight to the breakdown of visitor spending by category. The exhibits on the following page illustrate the distribution of spending by accommodation and commodity purchased in Marion County, followed by the CAGR from 2018 to 2022. According to the exhibit, throughout the past five years, Marion County visitors spend the most on food service, then on accommodations, followed by retail sales. Regarding accommodations, Marion County visitors spend the most on hotels, motels, and short-term vacation rentals, then on private homes, followed by day travel. From 2018 to 2022, visitor spending has remained stable or increased for all accommodation and commodity types except for campgrounds. However, campground spending has increased 11 percent from 2021 to 2022, largely indicating recovery from the pandemic.

Silver Falls State Park is located in Marion County, Oregon. Travel spending in Marion County has increased by 13 percent in the last year and indicates a compound annual growth rate of 6.3 percent from 2018 to 2022.

Exhibit 10 - Breakdown of Travel Spending in Marion County

Direct Travel Spending (Millions)

Visitor Spending by Type of Traveler Accommodation (Millions)

Visitor Spending by Commodity Purchased (Millions)

National Changes In Relevant Market Industry Trends Since Covid-19 Recreation Since 2020, the Covid-19 pandemic has influenced consumer behavior, especially when it comes to recreation. The Covid-19 pandemic drastically changed many people’s work lives and altered their ability to participate in their traditional leisure activities, especially group activities. As a result, participation in outdoor recreation increased as people sought recreation activities that were safe and in accordance with Covid guidelines. After the lockdowns eased, people chose to leave their homes, engage in outdoor recreation options and explore surrounding nature. In a study led by Penn State’s Department of Recreation, Park, and Tourism Management, it was found that nearly half of adults from across the United States now participate in outdoor recreation on at least a monthly basis, and approximately 20 percent may be new to outdoor recreation during the pandemic. [footnoteRef:7] Outdoor recreation includes a broad range of activities like running, biking, hiking, walking, boating, fishing, hunting, and more. [7: https://www.psu.edu/news/health-and-human-development/story/how-has-covid-19-pandemic-affected-outdoor-recreation-america]

Lodging The United States lodging industry was notably impacted by the COVID-19 pandemic. Lodging accommodations worldwide saw sharp declines in occupancy, resulting in hotel closures, layoffs, and furloughs. It took nearly a year after the initial outbreak of the pandemic for lodging occupancies to gradually climb up back above 50 percent. Operators had to adapt quickly to meet consumer demands regarding COVID-19—lodging customers have developed an increasing interest in cleanliness and safety and the changing landscape for meetings and large events. Technological adoptions have also been key to ensure the new standard expectations of employees and guests are being met, including contactless technology. For example, many hotels have incorporated an app-based experience by linking multiple hotel-stay functions to their app. Thus, lodging brands must accept this reality and proactively adapt their lodging experiences when it comes to cleanliness, social distancing, and the ways guests will expect to travel in the future.

Food and Beverage Due to the COVID-19 pandemic, restaurant operators in the United States had to pivot quickly to address social distancing and limitations on indoor eating. As such, they expanded outdoor dining, instituted contactless self-service, delivery services, and payment practices. Moving forward, remaining flexible and agile will continue to be the keys to survival. The pandemic has altered many trends specific to the food and beverage sector. Consumers now seek more take-out food options, grab & go alternatives, and non-human contact services rather than traditional dine-in options. Industry research shows that preferences for convenient and fresh foods with full transparency on ingredients and nutrition is another trend that is not going away any time soon. Active lifestyles, especially for visitors to national and state parks have influenced the nature of product, product packaging and delivery of product to facilitate guests needs for grab and go, supporting hiking, boating, or other forms of recreation.

Retail Overall, retail spending increased in the United States due to the COVID-19 pandemic and resulted in a shift to more on-line purchasing platforms. Since the COVID-19 pandemic began, individuals became more concerned with shopping in the safest way possible. Retail consumers began opting for minimal human-contact and moving towards online consumption patterns, which have negatively affected traditional brick and mortar stores. Even prior to COVID-19, online shopping became an important trend in the retail industry, encouraging many retailers to embrace an online presence. According to the National Retail Federation (NRF), retail consumers are also moving away from a consumption-oriented economy to a more experience-oriented economy. Consumers are more attracted to experience-based spaces while shopping and dining. Creating a sustainable business has also become increasingly important. Retailers have become more transparent about the origins of their products and how those products are made, such as adding more locally sourced retail items and items made with recycled materials, which makes customers more inclined to support sustainability.

Silver Falls State Park Site Description Silver Falls State Park is considered by many to be the crown jewel of the Oregon State Parks system and its namesake waterfalls routinely draw visitors from around the world. The Park serves as a standout scenic treasure, helping to put Oregon onto the national and international stage.[footnoteRef:8] The park offers beauty, boundless recreational opportunities, and historic presence. Silver Falls State Park is located in Sublimity, which is about 20 miles southeast of Salem, Oregon. It is the largest state park in Oregon with more than 9,000 acres of land. The Park is a natural playground for outdoor enthusiasts and adventure-seekers as it includes more than 35 miles of trails for hiking, biking, or houseback riding. Silver Falls State Park’s famous Trail of Ten Falls runs along the banks of Silver Creek, a rocky canyon, and offers views of ten waterfalls. South Falls, which drops a 177-foot curtain of water is the most well-known on the trail. [8: https://stateparks.oregon.gov/index.cfm?do=park.profile&parkId=151]

The Park is open for day use year-round. There is a day-use area at South Falls with spacious lawns, picnic shelters and tables, a playground, barbeque stands, and a charming creek. There are also overnight accommodations available in the park. First, there is a main campground with 48 electrical sites with water, 43 tent sites, 14 cabins, and toilets and showers. Howard Creek Horse Camp offers five primitive sites with horse stalls and a single group site. Additionally, Smith Creek Village has overnight accommodations with a total of 19 units, including cabins, lodges, and ranches, along with a restaurant and meeting venues.

Motorists access the park via roads from Route 214 from the North and West. A map illustrating regional access is provided in the following exhibit.

Exhibit 11 - Local Access Map – Silver Falls State Park

Source: Google Maps A site map for Silver Falls State Park is provided in the following exhibit. The map details park amenities and recreation opportunities. The map also includes the locations of Smith Creek Village and South Falls Café.

Exhibit 12 - Silver Falls State Park Site Map

Source: OPRD

Recent and Planned Improvements at Silver Falls State Park Over the last five years, significant investments have been made in OPRD facilities across the state. These improvements included infrastructure as well as new structures. These improvements will be critical to supporting any additional proposed development at the park.

At Silver Falls State Park, two primary structural improvements are a new parking lot and trailhead which are under construction at North Canyon and a new Silver Falls State Park Visitor Center and campground to be located at North Gateway, approximately three miles north of the South Falls/main Park entrance area.

A new trailhead is under construction at North Canyon and will connect to the Trail of Ten Falls. The trailhead will help to create more day-use activity on the north side of the park, in an attempt to divert some of the total visitor load and alleviate overcrowding at the South Falls area. In order to support this new demand, OPRD is constructing a new parking lot at North Canyon. The first phase of additional parking space construction is complete, containing 59 spaces, with additional plans to create more spaces to accommodate 200 vehicles. Phase one of this project includes the trailhead and first parking lot phase. The project at North Canyon is currently under construction and is scheduled to be completed by July 2023.

The Visitor Center, which is currently under construction, is a two-story building. On the top floor, there will be offices supporting local and regional staff. The main floor will contain visitor services, a conference room, and seating space. There will also be a café, serving coffee and pre-made meals and snacks, which will likely be operated by a concessioner. Storage space will be included in the basement of this building.

A new campground is also planned for the North Gateway site. Although the exact number of sites is not yet defined, there will be no more than 50 standard sites, with water and electricity. The project at North Gateway is targeted for completion by Spring 2026.

A summary of the projects at Silver Falls State Park is provided below:

· General

· New visitor center at North Gateway

· Café, visitor, interpretive, and conference services

· Campground

· New campground at North Gateway

· South Falls Campground new restroom Summer 2025

· Trail

· Improvement of South Falls interior trails at historic district

· New trailhead and viewpoint at North Canyon

· Several additional miles of biking trails

· Parking

· Expansion of parking at North Canyon

· Infrastructure

· Replacement of Smith Creek Meeting Hall roof

· South Falls Café new historically accurate gutters installed and stone patios pavers rehabilitated, paver walkways installed.

Visitation Profile Visitation to Silver Falls State Park is recorded using traffic counters at both the North Falls and South Falls day-use entrances and the South Falls overnight entrance. Visitation has decreased slightly over the past five years, likely due to the Covid-19 pandemic and temporary closures. From 2018 to 2022, day visits and overnight visits have declined by a compound annual growth rate of -0.9 percent and -2.4 percent, respectively. Although visitation has not yet fully recovered since the pandemic, the number of visitors has increased greatly since 2020 as individuals feel more comfortable in public areas and have an increased desire to explore nature. The following exhibit shows historical day and overnight visitation at Silver Falls State Park.

The following exhibits reflect both day and overnight monthly visitation to the park for the last five years. OPRD has stated that the park was closed from March 23 to May 15, 2020, explaining the decline in visitation in 2020.

Exhibit 13 - Day and Overnight Visitation to Silver Falls State Park (2018-2022)

The following charts indicate seasonality for monthly day-use and overnight visitation to the park. The peak season lasts from May to October for both day-use and overnight use. The summer months of June, July, and August are the most popular months to visit, given the favorable weather conditions and traditional vacation season. November through April represents the off-season for Silver Falls State Park, with May and October as the shoulder months.

Exhibit 14 - Day Visitation by Month (2018-2022)

Source: OPRD

Exhibit 15 - Overnight Visitation by Month (2018-2022)

Source: OPRD Special Events at Silver Falls State Park Silver Falls State Park holds numerous special events throughout the year. There are smaller-scale evening programs and larger-scale, all-weekend events. The following chart describes some of the well-known events that take place at the park annually.

Exhibit 16 - Events at Silver Falls State Park

Source: OPRD, CHMGS Additionally, there are school field trips, summer programs, and evening programs at the Park. In spring and autumn, school field trips make up a large portion of programming, where interpretive rangers help students to engage with nature and history and expose them to the natural world. Summer programming is centered around daily campground programs and are offered from mid-June to Labor Day, with weekend programs offered in May and September as staff is available. Formal evening programs are aimed at the general campground audience. These 45-minute programs are held in the amphitheater at 7:30 pm, covering a wide variety of topics. Attendance ranges from 20 to 150 visitors per program.

Off-Park Competitive Market by Service Market Supply: Lodging The competitive/comparable supply of lodging alternatives includes a limited range of lodging options including basic, cabin-type accommodations to upscale options. Smith Creek Village, Silver Falls State Park Campground, and Howard Creek horse camp are the only lodging options in the Park. Camp Dakota, located 19 miles northeast (driving distance), approximately 30-minute drive time, is an adventure center with campsites, cabins, yurts, and teepees. Oregon Garden Resort, located 18 miles northwest (driving distance), approximately 25-minute drive time, is an upscale lodge with luxurious amenities, and considered the most proximate viable comparable. Camp Dakota is the option that provides the closest comparability in terms of camping. Oregon Garden Resort is a more upscale and expensive option in terms of lodging product. There are additional lodging options closer to the park, such as the McClaine House and the Gardner House Café and B&B. However, these operations are not viewed as comparable because they are run in a private family home, have a limited number of rooms and offer a different lodging experience.

The following table identifies these lodging operations in the market, the type of service they offer, their setting, the distance to the Park, and their rates. The summer months of June, July, and August appear to be the peak operating months at Silver Falls State Park for overnight usage. Thus, rates for competitive lodging in the market for a July weekend are provided.

The local Airbnb and VRBO markets also provide some competition in terms of leisure lodging options. The Airbnb and VRBO markets are discussed specifically in the following section of the report.

Exhibit 17 - Competitive Market for Lodging

Distance to Subject

Lodging Rates (Peak Season Weekend)

Other Operations

x

x

Spa x

Adventure Center (ziplining, tree courses, etc.)

x

x

“-” = Not offered Source: Silver Falls Hospitality, CHMGS Leisure Lodging Supply and Demand Below is an analysis of Airbnb and VRBO supply and demand in the Silverton, OR area that gauges the supply of, and demand for leisure lodging in the market area. The following table presents salient data regarding the Airbnb and VRBO market in the Silverton area.

Exhibit 18 - Transient Lodging Demand in Silverton, OR

11,444

6,474

$999,123

$154.34

5,108

3,249

$541,086

$166.56

Source: AirDNA, CHMGS The COVID pandemic caused some disruption in the market during 2020, with average supply, available room nights (ARN), occupied room nights (ORN) and revenues all exhibiting significant declines, while ADR remained flat. 2021data indicates some recovery in the market, with supply and ARN recovering to approximately pre-pandemic levels. 2021 occupancy, revenues and ADR all exhibited significant increases during 2021, as pandemic lodging rules and procedures were established, allowing travelers to seek lodging opportunities that may have been perceived as safer than larger, commercial hotels. Industry observations indicate remote workers also contributed to a surge in this type of lodging product during the pandemic.

The following table illustrates monthly average Airbnb and VRBO supply, average daily rate and occupancy for June 2018 through May 2023. Seasonal fluctuations are as expected, with peak demand occurring during summer months. Average daily rate exhibits some variance, with peaks generally during August, but also with some spiking during the December-January time periods, which is likely indicative of holiday travel demand.

Exhibit 19 - Monthly Occupancy, ADR, and Supply of Short-Term Rental Market (June 2018-May 2023)

Source: AirDNA, CHMGS Market Supply: Food and Beverage An analysis of food and beverage alternatives that could be considered competitive to the food and beverage outlets at Silver Falls. The identified competitive supply of food and beverage alternatives includes a range of options from quick service to fine dining. South Falls Café, located in the South Falls day-use area and Big Leaf Coffeehouse & Grill, located at Smith Creek Village are the only dining options inside the Park. Silver Falls Country Store, a convenience-like store that offers camping essentials and food options, such as burgers and pizza, is the only other food operation within 20 minutes of the Park. The following table identifies various food and beverage operations in the market, the type of service they offer, their setting, and the distance to the Park. It should be noted that significant drive time is required to access food and beverage options outside the park and thus may be of limited competition for guests at the park, especially overnight visitors.

Exhibit 20 - Competitive Market for Food and Beverage

*Fast Casual: Counter service or limited table service *Family Casual: Table service, casual sit-down dining Source: CHMGS Operational Performance Review Current Silver Falls State Park Concession Contracts There are currently two concession contracts at Silver Falls State Park. One contract is for operations at the Smith Creek Village area of Silver Falls State Park, to include lodging, food and beverage, catering, conference/meeting, and retail services. This contract also includes the Davidson Ranch, and Foothills Ranch facilities, located approximately 2.7 miles (driving distance) north of the Smith Creek Village area. This contract is currently held by Silver Falls Hospitality, with an effective start date of May 14, 2021 and a contract termination date of October 31, 2024.

The second contract is for the operation of the South Falls Café, located in the South Falls Lodge, within the South Falls day use area. This concession contract is operated via an interagency agreement between OPRD and the Oregon Commission of the Blind, Business Enterprise Program. The South Falls Café concession contract’s start date was May 25, 2021, with a termination date of October 31, 2024.

Both of the above contracts result from a early contract cancellation by the previous concessioner in late 2020. The previous concessioner did not fulfil the full term length of the previous contract thus requiring OPRD to obtain new concessioners to facilitate continued operations and provide the related visitor services at the Smith Creek Village and South Falls Café facilities through the end of the original contract term. The previous concessioner operated both Smith Creek Village (to include the Ranches) and South Falls Café under one contract.

The following pages provide salient details regarding the operations at Smith Creek Village and South Falls Café.

Smith Creek Village Silver Falls Hospitality holds the current concession contract with management oversight provided by the Oregon Parks and Recreation Department. The following table outlines those services covered in the operational performance review.

Exhibit 21 - Smith Creek Village Scope of Services

Cottages

Tiny Cabins

Ranches (Event Venue)

Meeting Space

Meeting Halls

Outdoor Venues

*Ranches are located 2.7 miles north of Smith Creek Village

Source: OPRD, Silver Falls Hospitality Lodging Lodging Demand Using guest origin data provided by Silver Falls Hospitality, the following map illustrates the sum of occupied room nights originating in each state in 2022. While individuals travel from all over the country to visit Smith Creek Village, analysis suggests the majority of guests are from Oregon. The top five cities that guests reside in are Portland, Salem, Eugene, Bend, and Beaverton. Many guests also travel from California and Washington. In 2022, 1,731 room nights originated from Oregon, 395 originated from California, and 364 originated from Washington.

Exhibit 22 - Smith Creek Village- Occupied Room Nights, by State of Origin (2022)

*Alaska and Hawaii had 8 and 13 occupied room nights, respectively (not shown on map) ** Room night totals exclude room nights of international origin and records with missing data (e.g. missing state and zip code) Source: Silver Falls Hospitality, CHMGS In Smith Creek Village, there are a total of 19 lodging units in which can accommodate varying numbers of guests. All accommodations have a minimum stay of two nights.

There are four lodges (A, B, C, and D) that offer two queen beds and eight twin beds, accommodating 12 guests each. The lodges are equipped with a wood-burning stove, a microwave, mini fridge, and coffeemaker. These lodges are ideal for large gatherings.

There are also eight Upper Tiny Cabins. Six of the cabins have one double bed—three with an additional futon, while two of them have three twin beds, accommodating two to three guests each. The cabins have a plumbed toilet, full vanity and sink, linens and fleeces, and a coffeemaker with locally sourced coffee. While staying in these tiny cabins, guests have access to a community shower, located adjacent to the Upper Smith Creek Meeting Hall.

The Chickaree and Raccoon cabins are duplex units. The two units in the Chickaree cabins each have two twin beds, accommodating two guests. The units in the Racoon cabins each have a queen bed, accommodating two guests as well. These cabins are heated, with a bathroom, shower, linens, and mini kitchenette.

Calypso Cottage is a more luxurious option—it has a queen bed and two twin-sized day beds in the family-living area, accommodating four guests total. The cottage includes a large bathroom, a jetted bathtub, tiled shower, and a full-sized kitchen, equipped with an oven, 4-burner stove, toaster, coffeemaker, and service ware. The cottage also has a private firepit and picnic table for outdoor dining.

As mentioned previously, there are two ranch facilities, Davidson and Foothills (aka New and Old). These facilities are not located in Smith Creek Village, but are operated by the current concessioner. Each ranch has a kitchen, two bathrooms, event space, a fire-pit, bunkbeds, and a parking lot. There is a 100-person limit on the ranches for day-use and 75-person limit for overnight-use. Guests also have the option of bringing ten personal tents as an additional lodging option; however, those guests count towards the 75-person limit.

The following table summarizes the composition of the lodging supply at Smith Creek Village.

Exhibit 23 - Lodging Department Composition

Cabins*

*The Raccoon and Chickaree Cabins are duplex units Source: Silver Falls Hospitality Lodging Rates Every lodging accommodation at Smith Creek Village is open year-round except for the Davidson Ranch, which is closed in the winter months. While the majority of guests book lodging directly on the website, five to ten percent book through other platforms, such as Airbnb and The Dyrt. The following table outlines the current 2023 weekday (W/D) and weekend (W/E) rack rates for each type of accommodation based on the season and the day of the week.

Exhibit 24 - 2023 Pricing List: Silver Falls Hospitality Lodging

Lodges

Lower Cottages

Upper Tiny Cabins

Historical Lodging Performance The following exhibit illustrates total revenue for both the lodging (including the lodges, cottage, cabins, and tiny cabins) and the ranches (including Davidson and Foothills Ranch) from 2019 to 2022. Due to the Covid-19 pandemic, which resulted in closures, lodging revenue decreased in 2020. Smith Creek Village did not offer lodging accommodations from October 2020 to May 2021, resulting in a decline in revenues. However, in 2022, lodging revenue recovered to near pre-pandemic levels of 2019, totaling $704,654.

Exhibit 25 - Yearly Lodging Revenue by Type (2019-2022)

The following exhibit shows the total monthly lodging revenue from 2019 to 2023 year-to-date. May to October is the peak season for lodging at Smith Creek Village, with July being the most popular month, likely due to the favorable weather conditions. November through April appears to be the off-season. While total revenue decreased in 2020 and 2021, revenue began to recover in 2022, almost reaching pre-pandemic levels as individuals returned to normal life and developed more interest in exploring nature and enjoying the outdoors.

Exhibit 26 - Monthly Total Lodging Revenue (2019-2023 YTD)

Source: OPRD, Silver Falls Hospitality The following five exhibits indicate lodging trends at Smith Creek Village for the years 2019 through 2023 year-to-date (April). The tables include available room nights, occupied room nights, occupancy rate, average daily rate, and revenue for each year.

Exhibit 27 - Lodging Operating Trends in 2019

*Davidson Ranch closed in Winter months

Exhibit 28 - Lodging Operating Trends in 2020

Exhibit 29 - Lodging Operating Trends in 2021

Exhibit 30 - Lodging Operating Trends in 2022

Oregon Parks and Recreation Department Silver Falls State Park

Exhibit B- Business Description Page 1 of 56

Exhibit 31 - Lodging Operating Trends 2022 and 2023 Year-to-Date

*October-December 2023 N/A

Oregon Parks and Recreation Department Silver Falls State Park

The above tables summarize lodging performance year-to-date from January to September 2023, compared to January to September 2022 at Smith Creek Village. Overall, total lodging revenue has been 16.7 percent higher in 2023 year-to-date than 2022, likely due to efficient management and increased attraction to an outdoor setting since the pandemic. Occupancy and revenue for lodging at the village, including the cabins, lodges, and the cottage, have increased in 2023 by nine and 17 percent, respectively. Occupancy and revenue at the ranches have also increased in 2023, by 18.4 and 14.7 percent, respectively.

The following exhibit displays occupancy for both lodging and ranches. Occupancy decreased in 2020 due to the pandemic, but quickly began recovering in 2021.