Pierre, South Dakota – The South Dakota Game, Fish and Parks (GFP) Commission approved the release of a request for proposals to select a concession operator for the resorts within Custer State Park in the Black Hills of western South Dakota.[1][2]
Custer State Park spans 71,000 acres and attracts over 2.3 million visitors annually, offering premier opportunities for outdoor recreation amid granite peaks, pine forests, grasslands, and pristine lakes. Home to a large bison herd and abundant wildlife, the park features the renowned Wildlife Loop Road for viewing, alongside activities such as hiking, biking, fishing, boating, rock climbing, and birdwatching. The four historic resort complexes—State Game Lodge & Resort, Sylvan Lake Resort, Blue Bell Lodge and Resort, and Legion Lake Resort—provide essential lodging, dining, and guided experiences that connect visitors to these natural wonders.[3][4]
The selected concessionaire will manage a diverse array of services across these resorts, including 111 rooms and 114 cabins for overnight lodging, seasonal restaurants and lounges offering family casual to upscale dining, retail shops stocked with souvenirs, Native handicrafts, and convenience items, as well as fuel sales at select locations. Guided wildlife viewing via jeep tours (priced at $64 to $82 per person, operating year-round with minimum schedules) and horseback trail rides ($80 to $165 per person, with maximum group sizes) will highlight the park’s rugged beauty. Additional offerings encompass chuckwagon suppers, non-motorized watersports rentals like canoes and kayaks at Sylvan Lake and Legion Lake, event catering in venues such as the State Game Lodge’s Event Barn (54 by 51 feet), and wireless internet access throughout lodging areas.[5][6]
This business opportunity promises substantial revenue potential, with historical gross receipts reaching $22.2 million in 2024 and $23.4 million in 2025 across lodging ($9.1 million in 2025), food and beverage ($6.3 million), retail ($5.7 million), jeep tours ($1.6 million), stables ($595,000), and other sources. Projections for 2027 estimate $23 million to $25 million, growing to $26.5 million to $29.2 million by 2032 following planned improvements. The 10-year contract, commencing February 1, 2027, requires a minimum franchise fee of 19.6 percent of gross receipts (excluding gasoline), monthly payments, a 5.5 percent component renewal reserve for facility upgrades, a 3.4 percent personal property reserve, and a 2 percent promotion fee. Prospective operators must also purchase alcoholic beverage licenses for $250,000 and provide a $500,000 surety bond or equivalent.[7]
Interested firms must submit a notice of intent by 3 p.m. CDT on May 8, 2026, followed by full proposals by June 5, 2026, to Sean Blanchette at sean.blanchette@state.sd.us. Submissions require a transmittal letter, business history, financial statements, credit reports, and an Excel workbook with projections and funding commitments. A voluntary site visit occurs on April 14, 2026. Proposals will be evaluated on five factors totaling 50 points: resource maintenance and historic preservation (15 points), enhancing visitor experiences including events like the annual Buffalo Roundup (25,000 attendees) and potential new spring programming (15 points), relevant experience in resort operations (10 points), financial capability (5 points), and proposed franchise fee (5 points). The top three may advance to interviews, with award announcement around September 1, 2026, and contract execution by October 1.[8]
Operators will prioritize operational excellence, customer service, and alignment with GFP’s mission to connect people to the outdoors through parks management. Responsibilities include year-round maintenance, seasonal winterization, staffing with trained personnel, compliance with health, safety, ADA, and environmental standards, and annual operations plans. The resorts support major events like the Sturgis Motorcycle Rally and Buffalo Roundup Arts Festival, fostering economic and recreational benefits while preserving the park’s resources. A printable prospectus is available on the GFP website, detailing facilities like the recently completed Bison Center and employee housing for up to 297 seasonal workers.[9][10][11]
Located approximately 25 miles south-southwest of Rapid City along U.S. Highway 16A, Custer State Park remains open year-round, with vault toilets available in winter. Entrance fees are $25 per vehicle daily or $40 annually for residents. This RFP represents a key opportunity to steward one of South Dakota’s premier destinations, ensuring high-quality outdoor activities for future generations.[12]
For more information, visit South Dakota Game, Fish and Parks.