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New Yosemite Concessionaire Signs Contract, Trademarks Up In The Air

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Officials from the National Park Service have officially signed a 15-year concessions contract for Yosemite Hospitality, LLC, to run lodging and dining concessions in Yosemite National Park, though the company might be managing facilities not named The Ahwahnee Hotel, Yosemite Lodge at the Falls, or Badger Pass.

For while the paperwork has been signed, no resolution has been made over Delaware North Co.'s claims to those names, and other place names in the national park.

"The trademark issue has not been resolved. There is litigation filed on that, so we won't comment," Yosemite spokesman Scott Gediman said Wednesday in an email. "However, the contract is signed and we are moving forward on the transition."

The contract signed Wednesday by the Park Service and Yosemite Hospitality, a subsidiary of Aramark Leisure, has that company taking control of Yosemite's main concessions operations on March 1. The current concessioner, DNC Parks & Resorts at Yosemite, Inc., a subsidiary of Delaware North Co., has held its contract since 1993.

“The National Park Service looks forward to a successful relationship with Yosemite Hospitality,” said Yosemite Superintendent Don Neubacher.

As the new concessioner, Yosemite Hospitality will continue to provide visitor services at Yosemite's iconic locations. Millions of visitors will continue to enjoy services at historic locations including The Ahwahnee, Curry Village, Wawona, and Yosemite Lodge. The contract includes the operation of 17 retail locations, 12 lodging properties, and 14 food and beverage service locations. In 2014, the current contract gross receipts were $146 million.

But whether Yosemite Hospitality will be able to use "The Ahwahnee," "Curray Village," Wawona," and "Yosemite Lodge" remains to be seen. DNC Parks & Resorts claims that it holds the trademarks to those names, and believes it should be rightfully compensated for giving them up. While DNC had placed a $51 million price tag on the names and other intangible property rights, the Park Service placed a $3.5 million figure on them. The agency also said if a company other than DNC won the new concessions contract, it could rename the facilities rather than paying DNC for the right to use the trademarked names.

Late last month DNC filed a multi-million-dollar lawsuit against the Park Service, claimed it breached their contract for failure to require Yosemite Hospitality to purchase DNC's intangible properties when it won the Yosemite National Park concessions contract earlier this year. 

Soon after Yosemite Hospitality, a subsidiary of Aramark, another large park concessions company, was awarded the contract over DNC Parks & Resorts, Aramark officials told the Traveler that they were in negotiations to continue to use the historic names associated with Yosemite businesses. Since then, though, the company has declined to comment on the matter, and DNC has gone to court.

Still, DNC Park & Resorts' claim for damages could hinge in large part on a provision in the U.S. Code that specifically gives the National Park Service the right to "retain the name historically associated with the building or structure" regardless of any trademark. 

Sec. 302106. Retention of name

Notwithstanding section 43(c) of the Act of July 5, 1946 (known as the Trademark Act of 1946) (15 U.S.C. 1125(c)), buildings and structures on or eligible for inclusion on the National Register (either individually or as part of a historic district), or designated as an individual landmark or as a contributing building in a historic district by a unit of State or local government, may retain the name historically associated with the building or structure.

In Yosemite, there are more than 40 historic properties comprising sites, objects, buildings, and districts listed in the National Register of Historic Places. The park is also home to five National Historic Landmarks: The Ahwahnee Hotel, Le Conte Memorial Lodge, Parsons Memorial Lodge, the Rangers'€™ Club and the Wawona Hotel & Thomas Hill Studio District.

Highlights of the new contract with Yosemite Hospitality include:

* Yosemite Hospitality will pay a franchise fee of 11.75 percent of gross receipts, 80 percent of which will directly support improvements to visitor facilities and park operations. This was 3.75 percent higher than the minimum franchise fee required in the prospectus of 8 percent of gross receipts.

* Popular visitor services such as lodging and food service will continue at The Ahwahnee, Glacier Point, Yosemite Lodge, Wawona, Tuolumne Meadows Lodge, High Sierra Camps, and Curry Village. In addition, activities such as ice skating, skiing, bicycle rentals, shuttle service, and raft rentals will continue to be authorized for park visitors under the new contract. Horseback rides will be available in the Wawona area. The Yosemite Mountaineering School will continue at Badger Pass, Curry Village and Tuolumne Meadows.

* Major improvements will be made to food and beverage service at Degnan’s Deli and Loft, Yosemite Lodge Food Court, and the Curry Village food service facilities. These improvements will be made by Yosemite Hospitality at no cost to the National Park Service. In addition, enhanced menus embracing healthy food options will be implemented at all locations.

* Yosemite Hospitality will reduce the concession footprint of facilities and operations within Yosemite Valley. Operational efficiencies gained from proposed improvements will enable Yosemite Hospitality to reduce the footprint associated with concessioner activities.

* Yosemite Hospitality will implement major conservation activities to reduce water, electricity, and fuel use in shuttle systems, lodging, employee housing, and food outlets. Water and energy saving fixtures will be installed, or upgraded as needed, throughout lodging and employee housing areas. The park concession facilities will become a model of sustainability and enhance resource protection.

* Significant investments will be made in upgrading room furniture and amenities in lodging at The Ahwahnee, Curry Village, and Wawona.

“We are excited to be working with the National Park Service to create great new memories for Yosemite’s many enthusiasts who hold the park so near and dear to their hearts and we look forward to introducing innovative programs and experiences that shape the legacy of this amazing and iconic Park,” said Bruce W. Fears, president of Aramark’s Leisure division. “We are also looking forward to working with the community and developing partnerships with local businesses. Aramark has always had strong ties with the communities in which we live and work and we are eager to do the same here in Yosemite.”

Aramark, Delaware North, and the National Park Service are currently working together on the transition of operations to prepare for the contract turnover on March 1, 2016. Aramark realized gross revenues of $14.8 billion in fiscal year 2014, employing more than 270,000 employees in 21 countries. Aramark currently holds eight NPS contracts in Lake Mead, Mesa Verde, Glen Canyon, Olympic (3 contracts), Denali, and Glacier Bay.

Yosemite National Park celebrated its 125th Anniversary this year. The park welcomes more than four million visitors from all over the world each year. Yosemite National Park is home to Yosemite Falls, the tallest waterfall in North America, and iconic rock formations such as Half Dome and El Capitan. The park also features approximately 90 different species of mammals and over 1500 species of flowering plants.

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