A
CONCESSION LEASE AGREEMENT
A Concession Lease Agreement
covers many areas. It contains: Definitions, Terms of
Agreement, Operational Condition, Special Conditions,
Legal Requirements.
Each
part of the Concession Lease Agreement is important to your
operation and the success of your concession. Be sure you
know what will be required before you bid on any concession,
and be sure you will be able to meet the obligations if you
commit to it.In order to give you some idea of what you will
find in a Concession Lease Agreement, we are providing the
following general information that we hope will help you decide
on whether or not the operation of a State Park concession
should be in your future.
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Length
of a Concession Lease Agreement A
Concession Lease Agreement is generally awarded for a
maximum period of 4 years. In some instances, agreements
are awarded for a lesser number of years. This is based
on circumstances as determined by the Concession and
Lease Management Office that warrants a shorter period
of award. These agreements can be awarded directly by
the Concession and Lease Management Office.
Depending
on the type of concession operation and if substantial capital
development (permanent improvements or development that become
the property of the INDR at the termination of the agreement)
is required by the concessionaire it is possible to award
up to a 25 year agreement, if approval is granted by the Governor's
Office.
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Rental
Payments
There are generally two different types of rental payments
received from concessions: 1) Annual Lump Sum Payment
only; 2) Annual Percentage Sum of the total adjusted
gross receipts.
Selecting
which of the above listed methods is used is determined
by the Concession and Lease Management Office prior to
the solicitation of competitive bids and is based on
the financial history of the involved concession.
Rental
payments are required on a time schedule that is contained
in the concession lease agreement. It may differ based
on the type of concession operation and/or the operating
season.
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Leased
Premises
Each Concession Lease Agreement specifies the area of
the park that is designated as the leased premises. A
concessionaire is only permitted to operate and conduct
business under the terms and conditions of the Concession
Lease Agreement in the facilities or areas specified.
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Maintenance
of Leased Premises
The Concession Lease Agreement will specify the type
of maintenance work to be done and whether it is required
to be completed by the concessionaire or the park site
staff. This can range from daily litter pick-up to grass
mowing, to building repairs, etc.
Some
Concession Lease Agreements require the concessionaire
to undertake all maintenance on their leased premises
while others may allow for maintenance of certain items
by both concessionaire and park staff.
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Required
Submittals
Each concessionaire, based on the terms and conditions
of the Concession Lease Agreement is required to submit
certain payments, forms, financial statements, and other
items on a timely basis. Failure to submit any of the
required items in a timely fashion may result in the
cancellation of the lease agreement.
- Rental
Payment - The rental payment is required by specified
dates, as listed in the Concession Lease Agreement.
Failure to do so will result in the assessing of
an interest charge of 10% imposed on late payments.
- Annual
Financial Statement - Each concession operation
is required to submit an Annual Concession Financial
Statement by the due date listed in their agreement.
This provides the Concession and Lease Management
Office with a financial statement of the concessionaire's
operating season.
- Liability
Insurance Policy - Concession Lease Agreements require
the concessionaire to carry general premises and
product liability insurance with the IDNR listed
as additional insured. Proof of said insurance is
required before a concessionaire can begin operation.
- Other
Documents or Payments as required by the Specific
Concession Lease Agreement - It is the concessionaire's
responsibility to meet all due dates and deadlines
for submitting the required information, reports,
and payments. The involved park staff is not required
to send notices or reminders that items are due.
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Concession
Lease Termination
If a concessionaire wishes to terminate an existing agreement,
they may do so by notifying the Site Superintendent or
Concession and Lease Management Office, in writing, according
to the Concession Lease Agreement.
The Concession and Lease Management Office will not terminate
a Concession Lease Agreement unless: 1) it becomes necessary
due to the continued lack of concessionaire's compliance
with the agreement terms and conditions; 2) it becomes
necessary to close park facilities for safety or economic
reasons; or 3) there are unforeseen circumstances that
dictate a closure.
Pricing
A concessionaire may charge prices and rates that are
reasonable and fair. A copy of all prices and rates must
be submitted annually to the involved park office. The
Concession and Lease Management Office must approve all
charges, prior to opening each season.
Non-exclusive
Rights
A concessionaire does not have exclusive
rights to all concession operations within a particular
state
park, but rather, only to the specific operation at the specific
location as described in the Concession
Lease Agreement.
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Concession
Operation
A concessionaire is required to operate at specific
times and on specific days as listed in the Concession
Lease Agreement.
Any
early closure or reduction in operating days or hours must
be approved by the Site Superintendent.
If
a concessionaire wishes to operate on additional days
or additional hours, approval must also be requested
from the local Site Superintendent.
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