City hears updates from parks’ private partners on golf, water park and Hidden Cove projects

Parks and Recreation staff told The Colony City Council the department oversees six public-private partnerships and provided updates tonight on three of those partners — Matthews Southwest, Hawaiian Waters (the Colony’s water park) and MarineQuest (Hidden Cove Park).

Jackie Kopsa, Parks and Recreation staff, introduced the report and said the intent was to update council members on lease terms, revenue streams, recent investments and planned audits. “We do maintain 6 private public private partnerships that are under the observation of the Parks and Recreation Department,” Kopsa said on the record.

Matthews Southwest (operating the Tribute and the former Old American golf course) summarized several years of private investment at the Tribute clubhouse and course, and described ongoing marina construction on their property. Christian Teleki, with Matthews Southwest, said the company has invested heavily in clubhouse and course improvements, listing projects including clubhouse enclosure, locker-room renovations and cart-path and chiller upgrades. Teleki told council that in the last five years they had invested roughly $8 million into the Tribute’s clubhouse and related facilities and that the combined uplands and shore work for the marina — to be built in partnership with Suntex — will exceed $50 million when complete.

Parks staff said Matthews Southwest’s lease is concurrent with the U.S. Army Corps of Engineers lease and currently runs through May 31, 2058; the city’s annual lease payment under that agreement is 2% of the partner’s gross revenue with a $50,000 minimum. Kopsa said the partner’s most recent annual payment was just over $200,000 and that an organizational audit of the partnership is scheduled for summer 2025.

Representatives of Hawaiian Waters recapped attendance, seasonal staffing and investments. The park reported projected 2025 attendance of about 148,000 (up from roughly 143,444 in the prior year) and said about 45% of guests live within 10 miles. Hawaiian Waters said it employs about 13 full‑time and 350 seasonal staff at The Colony each summer. The partner told the council the current lease runs through Dec. 30, 2043, with two optional five‑year extensions that could extend the term to 2053; the annual lease fee is 6.5% of gross revenue, with payment due in October. Kopsa said the city has received this year’s payment, which she said was more than $300,000. Hawaiian Waters’ general manager, Kyle Taylor, told council the operator rethemed into the Hawaiian Waters brand in 2023 after Premier Parks assumed operations and that the park plans phased investments in rentable cabanas, catering areas and attraction updates.

MarineQuest representatives described recent site improvements at Hidden Cove Park, new and renovated camping cabins and upgrades to RV pads and the conference center, and reported continued coordination with Suntex on marina management. Justin Bosworth, representing MarineQuest, said permitting for some shoreline work is expected soon and that the partner has invested in glamping cabins, conference-center patio work and road/ drainage improvements; MarineQuest said it has put approximately $40 million of development into the site historically and plans another $20 million over the coming years. Kopsa said MarineQuest’s lease was extended to match the city’s term through 2058 and that their annual revenue-share formula includes 1% of boat-restaurant sales and 6% of other gross revenue with a $50,000 minimum; the city has received the $50,000 minimum payment for the current year and Kopsa estimated last year’s payment at about $175,000. An audit for MarineQuest is planned for fall 2025.

Council members praised the working relationships with the partners and noted the value of private investment that expands amenities while generating revenue to the city. Staff emphasized the city will audit each partner on a three‑year rotation and will return to council with further updates.

No formal council action was required or taken on the presentations; staff noted several follow‑up items including scheduling audits and continuing permitting coordination on marina work.