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PARK RAPIDS, Minn. — The operators of a longtime, popular attraction at Itasca State Park dry-docked their business this summer, claiming the Minnesota Department of Natural Resources changed rules to force them out. The DNR says it requested changes to better fit "the traditional historic aesthetic of the park."

Either way, the old riverboat Chester Charles II isn't puttering around Lake Itasca, namesake of the uber-popular park near Park Rapids that famously serves as the headwaters of the Mississippi River.

"We're new business owners, and they changed the rules on us and made it all but impossible for us to make money," said Karen Acker, who with her fiancee Scott Bedell owns the Chester Charles II and operated Lake Itasca Tours for four summers.

Ben Bergey, the DNR's regional manager for parks and trails based out of Bemidji, said the agency is limited in what it can say by Minnesota's data privacy laws.

"Solicitation was canceled for failure to reach a negotiated agreement," Bergey said, adding the state might look at re-issuing the boat tour contract next year.

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Bergey said the state allows two outside vendors to operate businesses inside the park. The vendors sign a contract with the state to meet certain criteria, including paying a percentage of their revenue to the state. The park's other outside concession contract, for Itasca Bike and Boat Rental, was awarded to Itasca Sports earlier this year.

"The request for proposals (RFP) is a competitive process where the state outlines minimum requirements, deliverables, and terms of the proposal," Bergey said. "Interested vendors respond to the RFP with their proposal to meet the requirements and scope of work. The state evaluates all proposals based on a predetermined scoring criteria established in a manner to deliver the best value to the state. The RFP process typically allows a responder to propose a solution and allows the parties to negotiate the final terms of the contract."

Bedell and Acker came to Minnesota in 2020 from Omaha, Nebraska, where they sold real estate, to buy the diesel-powered 65-foot, 40-ton Chester Charles II from its previous owner. The boat tours inside Minnesota's most famous state park had been conducted since 1985 by the Coborn family, at first with the 55-passenger Chester Charles and since 2007 with the 141-passenger Chester Charles II.

The tours provided a guided, narrated historical tour of the famed lake and occasionally hosted weddings and live music tours during which catered food was served. Alcohol is not allowed inside Minnesota state parks.

"Those scheduled events were a very large percentage of the money we made," Acker said.

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But after operating on a year-to-year basis their first four summers in Minnesota, the state last year told Bedell and Acker it was opening the contract for bids and they'd have to complete a proposal. The state said the next contract would be for five years with the possibility of an additional five years.

When they received the RFP — months later than they were promised, they said — Bedell and Acker said they were surprised to see the state made multiple changes in its requirements, all of which would cut into their profits.

"All these things they wanted would impose more money on us or take away the chance to make money," Acker said. "The amount was taking all the profit away from us. We'd basically be doing it for free."

Bedell and Acker previously paid 6% of their gross revenue to Minnesota to be allowed to operate in a state park. The DNR changed that to 10%, which Bergey said the state is moving toward in all future concession agreements.

The state set the maximum passenger capacity on the boat at 60 and said the boat couldn't be longer than 55 feet, meaning the Chester Charles II was too large.

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"We'd have to sell our boat and buy another, smaller one," Bedell said. "Logistically and practically, that's very difficult."

The new requirements restricted private or special-event cruises. The state wanted to eliminate them entirely, but Bedell and Acker said they negotiated a five-event maximum because they had four private events already scheduled for 2024.

Instead of allowing catered meals, food would be limited to "light snacks and non-alcoholic beverages," according to the RFP. The state also banned amplified music, which Bedell and Acker say was directed at their music tours and wedding parties. They said their music tours featured a pianist and an acoustic folk singer.

"It's not like we were playing rock music," Bedell said.

The state wanted a ticket booth moved from the dock area to a building 100 feet from the lakeshore.

The contract would've required $2 million in commercial liability insurance on private vehicles driven by Bedell and Acker, plus two part-time employees. The state also wanted $10 million in marine liability insurance on the boat, a figure the owners say isn't available or affordable.

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Bedell said one other vendor submitted a proposal but pulled out, leaving him and Acker as the lone bidder. The state gave their proposal a poor rating based on a points system.

"We came up here with a 10-year plan based on what had been done for many years," Bedell said. "Then they gave our proposal a poor rating when they changed the line of scrimmage on us. It almost felt like we were being pushed out."

Again citing data privacy laws, Bergey declined to comment on Bedell's and Acker's bid but referenced the state's RFP when asked about the specific requirements raised by the couple.

"The Lake Itasca Guided Tours concession is intended to provide a park-themed guided tour that enhances the visitor experience at the park, fits with the nature-based recreation approach and is conducted in a manner that is not detrimental to the park or surrounding environment," Bergey said. "It is also the goal of the DNR that any concession operation would not detract from the enjoyment of the park by visitors who are not participating in a tour."

The RFP said the "park desires a tour boat fitting the traditional historic aesthetic of the park and National Historic Landmark District." It included several photographs as examples of smaller craft that would be preferred to a boat the size of the Chester Charles II.

The RFP specifically said, "catered events, amplified music and entertainment-only excursions are not part of this proposal."

Asked about the changes, Bergey said state parks are always seeking to improve visitor experiences.

"Based on Itasca State Park visitor feedback, including visitors not utilizing past boat tours, these items were changed for this solicitation," Bergey said.