From $1.8 Million Settlement to Possible Demolition: Structural Problems Cloud Star Plunge’s Future

The future of Thermopolis’ historic Star Plunge is uncertain after inspections uncovered significant structural and safety problems at the Hot Springs State Park attraction, raising the possibility that Wyoming could demolish the facility rather than repair it.

The State of Wyoming recently paid $1.8 million to settle its long-running dispute with former Star Plunge operator Roland Luehne and take control of the property. Now, demolition alone could cost close to another $1 million, according to “reporting by Cowboy State Daily” (https://cowboystatedaily.com/2026/09/15/wyoming-paid-1-8-million-for-star-plunge-and-might-spend-1-million-to-raze-it/).

The findings complicate plans to reopen one of Thermopolis’ best-known attractions, which has been closed since January 2025.

Inspections Reveal Significant Problems

State officials initially hoped Star Plunge would need relatively minor safety repairs before reopening under a new operator. Inspections conducted after the state gained control of the property instead uncovered gas leaks, sagging support beams and significant problems with the pools.

“WyoFile reported on the inspection findings” (https://www.newsfromthestates.com/article/star-plunge-future-murky-after-inspectors-find-significant-concerns-thermopolis-water-park), including comments from Wyoming State Parks Deputy Director Nick Neylon to state lawmakers describing the facility as being in “really poor shape.”

Electrical inspectors have also examined the property, with the condition of the electrical system becoming another factor in determining whether the building can reasonably be rehabilitated.

Wyoming State Parks District Manager Brooks Jordan told Cowboy State Daily that demolition could cost close to $1 million. He estimated a replacement facility could cost approximately $3 million to $5 million, while renovating the existing Star Plunge could potentially cost $2 million to $4 million.

Those are preliminary estimates, but they create a significant question for state officials: whether spending millions to rehabilitate the aging facility makes more sense than replacing it.

$1.8 Million Settlement Had Raised Hopes for Reopening

The inspection findings come only weeks after the resolution of a years-long dispute between Wyoming and the Star Plunge’s former operator.

The Luehne family had operated Star Plunge since 1975. Its long-term concession agreement expired in 2008, followed by years of shorter agreements and disputes over the property’s future.

Wyoming ultimately selected Wyoming Hot Springs LLC as the new concessionaire in 2024. Litigation followed, with Luehne challenging the state’s process and seeking compensation for investments in the property.

The Wyoming Legislature eventually authorized money to resolve disputes with concessionaires at Hot Springs State Park. The state reached a $1.8 million settlement involving Star Plunge this summer, ending the litigation.

At the time, the agreement appeared to clear a major hurdle to reopening. “Cowboy State Daily reported in July” (https://cowboystatedaily.com/2026/07/31/ecstatic-airbnb-owner-among-those-hailing-1-8m-deal-ending-star-plunge-fight/) that officials planned a top-to-bottom safety inspection before turning the facility over to the new concessionaire.

Those inspections ultimately revealed problems considerably more extensive than officials had hoped.

Renovate or Start Over?

Wyoming Hot Springs LLC is expected to operate the park’s commercial hot springs facilities and has pledged to invest millions of dollars in improvements.

According to Cowboy State Daily, demolition costs would fall to the state, while renovation or construction expenses would generally be the responsibility of the incoming concessionaire.

State officials say they still intend to have a water attraction at the Star Plunge location. If the existing structure is demolished, that could mean replacing the familiar facility with an entirely new attraction.

The decision could also have implications for Thermopolis’ tourism economy.

Local businesses reported declines after Star Plunge closed, particularly among visitors who traditionally came to Thermopolis specifically for its mineral pools. One local short-term rental operator “told Cowboy State Daily following the settlement” (https://cowboystatedaily.com/2026/07/31/ecstatic-airbnb-owner-among-those-hailing-1-8m-deal-ending-star-plunge-fight/) that his bookings had fallen substantially during the closure.

Other Hot Springs State Park attractions remain available, including the State Bath House, trails, mineral terraces and bison herd, while the Wyoming Dinosaur Center provides another major attraction nearby.

Star Plunge, however, has been part of Thermopolis for generations. The attraction dates to 1900 and eventually developed into a family water park featuring indoor and outdoor mineral pools, water slides and a vapor cave.

The $1.8 million settlement resolved the legal dispute that had prevented the state from moving forward with the property. The discovery of major structural and safety problems has created a new question: whether the historic Star Plunge can realistically be saved, or whether its future lies in an entirely new facility.