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. 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.
Length of a Concession Lease Agreement: A Concession Lease Agreement is generally awarded for a maximum period of 5 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.
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.
Concession Operation: A Concessionaire is required to operate at specific times and on specific days as listed in the concession lease agreement.
Rental Payments: There are generally two different types of rental payments received from concessions: 1) Annual Lump Sum Payment only; 2) Monthly 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.
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.
Equipment: The Concessionaire is allowed to use any existing IDNR owned equipment in the concession which, in many instances, includes kitchen equipment, boats, tables/chairs and shelving. use of this equipment is subject to maintenance requirements. The Concessionaire is required to provide all other necessary equipment needed for the operation of the concession.
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 equipment and building repairs.
In general Concession Lease Agreements require the concessionaire to undertake most of the maintenance on the leased premises.
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.
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.
Short Term Concession Lease Agreement
: At certain times, a park may have a short-term (less than a year) need for a specific concession that operates from within the park. In this case it is possible for the park or Concession and Lease Management Office to issue what is known as a Short Term Concession Lease Agreement or Permit to Sell.
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.