$3 million state buyout of Star Plunge, hotel could end decades of disputes

A sizable sum of money has been earmarked by the state of Wyoming to buy out two popular Hot Springs State Park amenities — the Hot Springs Hotel and Star Plunge, a geothermal water park that’s been closed for a little more than a year. The state and Star Plunge’s owner, Roland Luehne, have been embroiled in a legal fight for the past year over how the state selected a new operator for park amenities.

State Sen. Ogden Driskill, R-Devils Tower, confirmed that the Legislature has set aside $3 million for the buyout and has directed the state to hire an appraiser to evaluate both properties. If realized, a buyout could end the lawsuit, allowing improvements to the popular destination to move forward. “Both businesses have made firm offers to the state that says, pending an appraisal of the properties, they will hand those over,” Driskill said. “Both businesses are ready to go.”

Star Plunge is ready to be reopened, Driskill said, adding that he toured it ahead of the Legislature’s recently completed budget session. “Roland took me through it, and I can tell you, it’s in better condition now than at any time I’ve ever seen it,” he said. “It’s ready right now for someone to walk in. He could literally unlock the front door and set a cash register on the counter and have it open.” If the buyout goes through, the amenities would be run by Wyoming Hot Springs LLC, the vendor Wyoming State Parks has already selected to operate all of Hot Springs State Park’s amenities.

Brooks Jordan, district manager of the Bighorn District, confirmed that talks are ongoing. “We are in the process of finding an appraiser,” he said. Litigation over Star Plunge has been put on pause while they work to resolve their differences. Star Plunge attorney Matt Micheli said he is pushing the state to move fast. “We think this is a great outcome,” he said. “We think it’s the right outcome, and we think it’s the responsible thing for the state.” He added there’s no real reason Star Plunge has to remain closed. “We are happy to talk with the state about any path to getting the pool open while this appraisal process plays out,” he said.

Driskill said the $3 million buyout is something that dates back several years. Luehne’s offer is $2 million, while the Hot Springs Hotel’s offer is $1.5 million. Under state law, Wyoming can’t pay more for the amenities than the appraised value. A buyout, Driskill added, will be far less expensive than litigation, which he estimated would take at least $5 million in attorney fees and could last five years or longer. “They’re a decade in with these folks on lawsuits,” Driskill said. “The truth is, it’s time to quit suing each other.”