We have conducted a study of the various factors related to the commercial-resort facility, Grand Portage Lodge, located in Grand Portage Minnesota. We have included in the accompanying report estimates of future income and expenses at various time periods of operation. This study was prepared based on a visit to Grand Portage Lodge, interviews with Radisson Management Company and certain State of Minnesota officials in August 1981. This report is divided into several sections including analyses of information provided in two audit reports and comments from hotel management, a market study, training efforts of management practices and Indian tribe cooperation. Other sections of this report are an assessment of the current and future market of Grand Portage Lodge, determination of adequate working capital and suggestions of possible sources, and discussion of means of implementing the recommendations.
Our conclusions are summarized as follows:

1. The physical plant at the Grand Portage Lodge is quite satisfactory. The services in all departments while not superior are, in this consultant's opinion, very acceptable. To this we might add that we consider the food itself excellent. The scenery and other amenities such as ski trails and museum are added attractions. The accounting system and bookkeeping system are in excellent condition.

2. In addition to the present existing sales efforts we feel emphasis should be put on the mid-week ski package, fishing program, and personal sales calls in the Twin Cities area and Duluth.

3. The section of this report concerning converting to wood chip burning in place of oil burning is perhaps the most economically important. To emphasize this, even if the mid-week ski package and the fishing programs are not successful, the savings in dollars by this energy conservation can more than offset these failures. The importance of a management trainee to back-up the manager is primary to the future of the inn. Keeping in mind the limited hotel managerial experience of the present manager, we would advise a management consulting firm be engaged on a very limited basis for a period of one year, as so advised in this report. The funds for this management trainee could either come from the tribe or from the operations of the hotel, if not from a government source. Funds for the energy conservation program might very well have to come from a grant from a government agency or at the very minimum a low percentage of interest loan from a government agency, as the cost and availability of money today from private sources is undesirable to say the least. There should be a re-scheduling of principal and interest payments to the EDA and BIA with a possible moratorium for an extended period of time.

4. If the EDA were to insist upon immediate prompt payment of both principal and interest it would certainly be the demise of this project. It is felt that if given enough time the project will be able to stand on its own, particularly if the energy conservation program is somehow accomplished. If the property should close because of being unable to pay its debt service to EDA, only certain minimum financial recoups would be possible as the lodge could be of little use for other than what it is.