National Park Service: Support Job Creators & Target Austerity Measures by Eliminating Federal Funding to the Independence Visitor Center Corporation

Thursday, June 9, 2011

Support Job Creators & Target Austerity Measures by Eliminating Federal Funding to the Independence Visitor Center Corporation

Save Almost $1.0 Million Per Year in Wasteful Federal Funding of the Independence Visitor Center Corporation in Philadelphia

On April 15, 2011, President Obama signed the Fiscal Year 2011 appropriations Continuing Resolution ("CR") (PL 112-10) that has kept the Federal government operational for the next six months, ending a long national dispute over Fiscal Year 2011 spending. The CR will reduce the budgets of the National Park Service ("NPS") by millions of dollars including NPS operations by $7.0 million, construction by $30.0 million and recreation and preservation by $10.0 million (source: National Park Service Hospitality Association). Hopefully, the NPS responds to this budget decrease with greater honesty than it displayed in the past when it came to previous rounds of budget cuts.

As both Democrats and Republicans negotiate spending priorities and identify wasteful pork to be cut, both now and in future budgets, the Federally funded Independence Visitor Center Corporation ("IVCC"), which operates the Independence Visitor Center ("IVC") at Independence National Historical Park ("INHP"), a unit of the NPS, in Philadelphia would be a sensible, prudent and symbolic target for austerity measures. The IVC is owned and operated by the United States of America - National Park Service, which then sub-contracts with the IVCC, a taxpayer supported public charity, to manage the IVC that is staffed by NPS rangers. From November 19, 2001 to April 26, 2010, the IVCC's operation of the Independence Visitor Center was governed by the NPS's Special Use Permit through which the IVCC managed the IVC "subject to the supervision of the [NPS's] Superintendent" and "consent of, the National Park Service." Further, NPS officials have served on the Board of Directors of the IVCC.

The IVCC and National Park Service ("NPS") have a long history of failure to adhere to Federally mandated concessions laws and of anti-business practices that have stifled competition and economic opportunity at INHP. These practices have driven The Constitutional Walking Tour--a small business that creates jobs for Philadelphia-area residents--out of the Independence Visitor Center ("IVC") and into a strained economic condition. Amidst efforts to improve the economy and to reduce unemployment, it is absolutely essential that job-creating, private sector enterprises like The Constitutional Walking Tour not be hampered by oppressive, anti-growth regulations, especially those which are enforced randomly and arbitrarily.

Since 2001, the NPS has given more than $8.25 million in Federal appropriations to the IVCC. On February 3, 2011, the NPS filed a Notice of Intent to Award another $850,000.00 in Federal funds to fund the “Operation, Use and Maintenance” of the IVCC.

This $850,000.00, which is designated for "project activities without full and open competition," should be withheld for numerous reasons given the anti-business practices at the NPS and IVCC, the parties' false and misleading statements about the nature of their relationship, and the willful non-compliance of the NPS and the IVCC with their statutorily authorized Operating Agreement ("Operating Agreement") dated April 26, 2010.

On the INHP Web site, the NPS lists the Independence Visitor Center Corporation as a top "Park Partner". INHP also states, "The IVCC distributes the official ticketing for Independence Hall." That is not true. While the IVC is the exclusive on-site location to pick up free timed tickets to Independence Hall, the IVCC does not manage the official ticketing for Independence Hall in any manner. NPS employees and NPS Rangers are the only people inside of the IVC who distrbute Independence Hall tickets. As such, cutting any Federal funding to the IVCC will not impact the distribution of Independence Hall tickets at all, nor will it impact how the NPS "provision of appropriate visitor information and interpretive facilities and programs related to Independence National Historical Park" (as per Public Law 106-131) is conducted by NPS Rangers and NPS employees at the IVC.

On April 26, 2010, the IVCC and NPS finally executed a detailed and long-term Operating Agreement that replaced the Special Use Permits issued by NPS for the management of the IVC. Although this Operating Agreement took more than a decade to finalize since Public Law 106-131 was signed by President Clinton on December 7, 1999, and the Operating Agreement has been in place for just a little more than one year, the terms of the Operating Agreement are already being willfully violated. Beyond the possible misallocation of funds through a conflict-ridden Board of Directors, the IVCC and NPS have also shown their unworthiness for further grant funds given the violations of their recently executed Operating Agreement. Specifically, the Operating Agreement stipulates,

"The [National Park] Service agrees that the [Independence] Visitor Center shall (subject only to federal legislation which mandates otherwise or closure of the Visitor Center) be the sole visitor center in or for the [Independence National Historical] Park (Section B.2)."

However, in 2010, the brand new Historic Philadelphia Center ("HPC") opened directly adjacent to Independence National Historical Park. The HPC is, for all intents and purposes, a visitor center for INHP since HPC distributes the "official NPS newsletter" for the Park (The Historic Philadelphia Gazette), provides interpretation and wayfinding, sells tickets for tours and attractions in and around the INHP area, plays a film entitled Liberty 360 about Philadelphia and America’s history, sells souvenirs, food and beverages and provides other visitor services (i.e., public restrooms, information, etc.).

*Click here to see a graphical comparison of the IVC and HPC*

HPC is a visitor center "for the park". As soon a visitor enters the HPC, they are greeted by a large wall display that promotes fourteen organizations that provided support for the HPC, including Independence National Historical Park - National Park Service, Commonwealth of Pennsylvania, City of Philadelphia, and Delaware River Port Authority.

According to the press release from Historic Philadelphia Inc. ("HPI") dated September 28, 2010,

"The Historic Philadelphia Center, designed by Daroff Design Inc + DDI Architects, PC, is the new focal point of Independence Mall, as visitors are drawn to the building with a glimpse of the technology that awaits them inside. The Historic Philadelphia Center is now the headquarters for all of Historic Philadelphia, Inc.'s programs including the box office, providing tickets for Once Upon A Nation tours, Liberty 360 and the new Lights of Liberty Show, as well as the nearby Betsy Ross House and Franklin Square. The Center also serves as the departure point for all Once Upon A Nation tours, provides guest services such as restrooms, and offers expanded retail operations." (emphasis added)

The existence and operation of the HPC with the NPS's involvement present questionable, redundant and unnecessary expenditures at Independence National Historical Park. For example, on the INHP Web site, NPS also lists Historic Philadelphia Inc. as a top "Park Partner." To that end, the NPS and Historic Philadelphia Inc. have officially collaborated on publishing the "Historic Philadelphia Gazette" ("Gazette") which serves as the official news pamphlet/brochure of INHP whereby "the Gazette is a joint venture of HPI and the National Park Service." As well, NPS's senior management officials have served on the Board of Directors of the private company, HPI, including: Mary Bomar, Director, NPS; Dennis Reidenbach, Northeast Regional Director, NPS; Cynthia MacLeod, Superintendent, INHP and Mike Caldwell, Superintendent, Valley Forge National Historical Park.

Finally, HPI describes multiple NPS entities as partner organizations including Independence National Historical Park and Valley Forge National Historical Park:

"Historic Philadelphia, Inc. is led by President and CEO Amy Needle and Board Chair Wayne Spilove, in partnership with the Commonwealth of Pennsylvania, City of Philadelphia, Independence National Historical Park, Greater Philadelphia Tourism Marketing Corporation, Fairmount Park Commission, and Valley Forge National Historical Park." (emphasis added)

These close ties between HPI and the NPS, along with the redundant uses of the IVC and HPC, make it wasteful for the NPS to give the IVCC $850,000.00 each year. While $850,000.00 annually may seem like "small savings" when compared to the overall size of the budget and budget deficit, that figure would actually constitute over 12.0% of the $7.0 million that the Federal government is cutting from the NPS's budget for operations.

Given these budgetary goals and realities, the savings generated from ceasing NPS grants would be substantial enough to possibly preclude cuts from more vital NPS operational expenses elsewhere.

Efforts to restore the economy and to combat the rising national debt will involve difficult decisions by political leaders. Eliminating Federal funding of and involvement with the IVCC is a very easy solution that can yield real positive benefits for the Philadelphia economy without detracting from the visitor experience to INHP.

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Exhibits:
*Special Use Permits issued by NPS to the IVCC for the operation of the Independence Visitor Center.

*The Board of Directors of the IVCC.

*Operating Agreement between the Department of the Interior, National Park Service, and the Independence Visitor Center Corporation, April 26, 2010.

*Images of the National Park Service desk for distribution of tickets inside the IVC, showing only NPS signage and staffed only by NPS members.

*Gateway Visitor Center Authorization Act, Public Law 106-131.

*Comparison chart between the Independence Visitor Center and the Historic Philadelphia Center.

*Wall inside Historic Philadelphia Center listing supporters.

*Press Release, "Historic Philadelphia, Inc. Opens New Lights of Liberty Attraction, September 28, 2010.

*Screenshot of "Park Partners" page on NPS website for INHP, "http://www.nps.gov/inde/parkmgmt/partners.htm," taken June 2011.

*Board of Directors of Historic Philadelphia, Inc.

*Historic Philadelphia Gazette, September/October 2010.

Background on The Constitutional’s disputes with the NPS and Independence Visitor Center

The Constitutional Walking Tour of Philadelphia (“The Constitutional”) offers guided walking tours of the Independence National Historical Park area by providing a primary overview of Independence Park and visiting more than 20 of Independence Park’s most historic sites including the Liberty Bell, Independence Hall, Carpenters’ Hall, Declaration House, etc.

From 2005 to 2010, the Independence Visitor Center Corporation sold tickets for The Constitutional’s various tours only at the IVC’s main information and sales desk. The IVCC has received a 20.0% (twenty percent) sales commission on each ticket that it has sold for The Constitutional (ranging on average in gross price from $12.50 to $17.50). Since 2005, The Constitutional has requested to also license a dedicated ticket sales booth from the National Park Service and IVCC on fair, reasonable and non-discriminatory terms commensurate with Ride the Ducks and Philadelphia Trolley Works, for example. Additionally, since 2005, The Constitutional has requested to also license marketing opportunities and commercial use authorizations from the National Park Service and IVCC on fair, reasonable and non-discriminatory terms.

The Independence Visitor Center (“IVC”) is owned and operated by the United States of America - National Park Service (“NPS”), which then sub-contracts with the Independence Visitor Center Corporation (“IVCC”), a taxpayer supported public charity, to manage the IVC.

The IVCC and NPS have preferenced third parties including Ride the Ducks and Philadelphia Trolley Works, and the IVCC and NPS have discriminated against The Constitutional Walking Tour. The National Park Service has enabled the creation of this unfair business environment. The National Park Service and the IVCC have ignored and circumvented Federal management and concessions laws for the sale of goods and services at Independence National Historical Park that require open, transparent, competitive and appealable processes awarding concessions contracts for the sale of goods and services including tours.

To facilitate the administration of the National Park Service System, the Secretary of the Department of the Interior, acting through the NPS, is authorized under the National Park Service Organic Act (“Organic Act”) to carry out twelve categories of activities, none of which include transferring administrative responsibility to a private party [i.e., IVCC] or engaging in cooperative administration with a private party [i.e., IVCC]. 16 U.S.C. § 1a-2(a)–(l). Rather than grant the NPS discretion in its dealings with park concessioners, Congress established “carefully controlled safeguards against unregulated and indiscriminate use” of the parks in the National Parks Omnibus Management Act of 1998 (“Management Act”), which governs all national park public accommodations, facilities, and services. 16 U.S.C. § 5951 et seq.; see also 36 C.F.R. Part 51.2 (“policy underlying concessions contracts”). The safeguards are not limited to nationwide policy: Congress also manages the parks with significant visitor traffic on a park-by-park basis. See, e.g., 16 U.S.C. §§ 21–40c (Yellowstone), §§ 91–110d (Mount Rainier), §§ 212–218a (Abraham Lincoln’s Birthplace), and §§ 410z–410z-5 (Boston National). One of the dozens of national parks managed by specific statutes is Independence National Historical Park (“INHP”). 16 U.S.C. §407m–407s. As such, compliance here going forward would require the NPS, first, to reassume from the private IVCC the NPS’s duties “to administer, operate, manage, lease, and maintain” properties at INHP pursuant to 16 U.S.C. § 407s; second, to award “all proposed concessions contracts … through a competitive selection process” pursuant to 16 U.S.C. § 5952; and, third, to issue commercial use authorizations in a rational manner pursuant to a reasonable interpretation of 16 U.S.C. § 5966(c).

The IVCC and NPS have arbitrarily and randomly selected business partners in a non-competitive and clandestine manner; as such, the actions of the NPS and IVCC have from an economics perspective stifled competition, innovation and consumer choice. Ultimately the IVCC’s actions have enabled prices to increase for its preferred vendors to strengthen the for-profits’ financial performance. Visitors to Philadelphia will be better served when the IVCC’s management, manners and methods are fundamentally changed. This would include having the National Park Service abide by Federal concessions management laws. Specifically, this will entail only having the NPS award concessions sales contracts and not having the IVCC involved in any of the selecting, awarding, contracting and managing of Independence Park’s third party concessions, including inside the Independence Visitor Center. This is the model that is practiced in virtually every other of the 390 (three hundred ninety) National Park Service units across the United States (in 49 states) including at Yosemite, Yellowstone, Statue of Liberty, etc. Additionally, visitors and all stakeholders will be better served once the operation of the taxpayer funded IVCC is totally transparent and accountable. While part of the issue centers on a publicly funded charity competing against the private sector (i.e., by offering guided tours and services), it more so has to do with the manner in which the IVCC and NPS operate and discriminate against third party concessionaires, tour operators and vendors in a random and arbitrary fashion (i.e., with the licensing and leasing ticket sales kiosks by the IVCC to third party companies, for example).