Star Plunge could close midJanuary amid pending litigation, sale negotiations
Jan 03, 2025
Soakers, swimmers and Vapor Cave fanatics have until at least Jan. 14 to patronize the Star Plunge aquatic facility under the management of the Luehne family, thanks to a last-minute operating extension.
Come Jan. 15, however, the facility could close to the public if ongoing litigation remains unresolved or sale of the pools to a new owner doesn’t go through.
It’s the latest chapter in a battle over who gets to manage the historic facility in Hot Springs State Park near Thermopolis. Generations of Wyoming families have visited the Star Plunge, and the issue has ignited fierce debate over whether new out-of-state ownership will result in a better facility or price locals out.
The state granted the two-week extension following a court order signed Dec. 30 by Laramie District Court Judge Catherine Rogers, said Brooks Jordan, district manager of Wyoming State Parks’ Big Horn District. Rogers signed the order just a day before the short-term management agreement Roland Luehne holds with Wyoming State Parks expired.
The Luehnes have been concessionaires in Thermopolis’ Hot Springs State Park since 1975, when Wolfgang and Christine Luehne bought it and took over a 50-year lease. Roland Luehne, their son, bought the Star Plunge from them in 2012.
The elder Luehnes’ lease expired in 2008. The younger generation has since operated under a series of short-term management agreements. That arrangement soured when Wyoming made moves to secure a long-term lease through a bidding process — a mechanism that could draw in a new operator. In April Wyoming announced it had selected Wyoming Hot Springs LLC as the next leaseé through its request-for-proposal process.
The new operator was scheduled to take over at the end of 2024 when Luehne’s current management agreement expired.
Star Plunge owner Roland Luehne stands in front of historic signs decorating a wall at the aquatic facility. (Katie Klingsporn/WyoFile)
But Luehne’s company, C&W Enterprises, sued the state over the summer, accusing the Wyoming Department of State Parks of exceeding its authority and violating regulations. That initiated a flurry of legal filings over the fall in a pair of cases that have yet to be resolved.
The state hopes the two-week extension gives Luehne enough time to finalize sale negotiations with Wyoming Hot Springs LLC, Jordan said, because that would resolve the legal matter and clear the way for the transfer.
“We’re optimistic about the future of the Star Plunge aquatic facility, and what future developments and improvements are going to look like there and at the other facilities” in the park, Jordan said.
Luehne could not be reached by press time for comment, but told WyoFile on Monday before the extension had been announced that he feels State Parks has essentially weaponized its bureaucratic process to achieve a goal that will harm his employees, customers and the Thermopolis community at large.
“What they’ve done is wrong,” Luehne said. “It’s horribly, horribly wrong.”
Nostalgia, change, potential
Since the new operator was announced, Luehne and loyal Star Plunge patrons have expressed outrage that the state would boot a family business in favor of an operator they fear will raise prices.
State Parks defends its process as transparent, above board and in the best interests of the community and state. Hot Springs State Park is the gem of the state’s system, and it’s time to update the aging infrastructure to meet modern demands, State Parks officials and supporters say.
The issue has sparked debates that pit nostalgia and local-business values against modernity and outsider ideas.
Visitors walk the boardwalk at Hot Springs State Park, as seen from across the Bighorn River in May 2024. (Katie Klingsporn/WyoFile)
One thing everyone can agree on is that Hot Springs is a state park unlike any other. The park’s eponymous springs — long been sought for their therapeutic qualities — are developed into indoor and outdoor pools with steam rooms and slides, while parking lots and paved roads encircle the grounds. Though the 1,100-acre park opens up to rolling sage lands where a buffalo herd roams and hikers traverse trails, it also includes an assortment of built infrastructure, including two hotels, a hospital, a county library, fairgrounds and schools.
These factors make it a constant draw for locals and visitors; Hot Springs tallies more than 1.5 million annual visits, more than double any other in Wyoming’s system. As landlord, Wyoming holds lease agreements with park operators including the Star Plunge.
Those agreements, along with a 2016 park master plan, are pivotal to the changes the state envisions for the park. State Parks no longer wants to hold short-term management agreements, and a 2019 law mandates that it secure the long-term arrangements.
In 2020, Wyoming put out a request for proposals for parties interested in operating new or improved lodging and aquatic facilities in the park. The idea was to secure long-term leases that support the Hot Springs State Park Master Plan, which envisions a more polished destination with modern recreation offerings.
RELATED
As state moves forward with new Hot Springs operator, Star Plunge family cries foul
New operator, big changes chosen for Thermopolis’ Star Plunge, Tepee Pools
“Today, some concessionaire operated facilities are deteriorated with extensive need for improvement and redevelopment,” it reads. “This plan encourages reinvestment in public and private facilities, replacing outdated features to prioritize life, health and safety; and offers opportunities for collaborative partnerships to meet the Division’s key mission of public benefit, resource protection, and high‐quality visitor experiences.”
Luehne was the sole applicant in that initial 2020 round, but he and the state failed to agree on a contract. He was one of three applicants in round two, which opened in November 2023. This time, the state opted for Wyoming Hot Springs LLC.
Litigation
In response, Luehne sued. His complaints allege Wyoming State Parks intends to make the handoff without properly compensating Luehne’s company for improvements to the facility, that its RFP process was unfair and that the agency exceeded its authority. They ask a judge to declare the state’s actions null and void.
The state, in response, requested the judge dismiss the petition for judicial review. It declined to do so, and Luehne’s lawyers requested a stay of agency action. The Dec. 30 order granted that stay — which suspends the state’s authority while the court matter is hashed out.
The Star Plunge’s website has a banner advertising its current timeline to swimmers. (Screengrab)
That order prevents the state from enforcing the section of its management agreement that requires the Luehnes to remove their facilities upon expiration. Enforcing the order doesn’t make sense until the court matter is resolved, Jordan said.
The court order also denied Luehne’s request to allow him to continue operating the Star Plunge after Dec. 31, but the state extension tacked on two weeks.
If Luehne and the new operator cannot come to a sales agreement in two weeks, the facility could close to the public, Jordan said. And if no sales agreement is reached, “it would be likely that the Star Plunge facility would remain closed until the outcome of the legal proceedings.”
The post Star Plunge could close mid-January amid pending litigation, sale negotiations appeared first on WyoFile .