Addendum No. 3 RFP Carlin rev. 1.11.23 spb approved PG 11.17.23.pdf

Addendum No. 3 to RFP NO. 2023-101-LMD

Request For Proposals to Provide a Food Service Concessionaire Services at Carlin Park

January 18, 2023

This Addendum No. 3 shall be added to and become a part of the RFP and governed by all terms and conditions set forth therein.

The County received questions as set forth below and is issuing the following responses:

1. Questions received from Joseph Lawless

Question: Can you give me any other information such as previous lease details, approved uses, etc.?

Answer: The requested information is available on the following website:

https://pbcvssp.co.palm-beach.fl.us/webapp/vssp/AltSelfService Click on public access on the left side of the page.

Keyword Search: Carlin Park and use the one dated 1.8.22.

2. Questions received from John DeAngelis and Alessandro Galioto

Question: What are the actual allowed business hours?

Answer: Page 9 of the RFP document - #4a - At a minimum, the concession shall be open during daylight hours, 6 hours a day, 7 days a week, including all weekends and holidays. An alternative schedule of operation may be proposed that provides at least 2,100 hours of operation per year and is subject to approval by the Department.

Question: What would be considered included in the rent? -gas - electric - garbage removal - Insurance -Property Tax

Answer: Page 23 of the Concessionaire Lease Agreement – Article VII – Utilities -

Concessionaire shall be solely responsible for and promptly pay all costs and expenses related to providing utility service to the Premises, including, without limitation, construction and connection charges and shall pay directly to the utility company or the provider of such service all charges and assessments for any utility services provided including, without limitation, water, sewer, gas, electricity, trash collection and removal or any other utility used or consumed on the Premises.

Page 24 of the Concessionaire Lease Agreement – Article VIII –

Insurance- Concessionaire shall, at its sole expense, maintain in full force and effect at all times during the life of this Agreement, insurance coverage and limits (including endorsements), as described herein.

Page 8 of the Concessionaire Lease Agreement – Article II – Section 2.05 -

Property Taxes - Concessionaire shall pay before delinquency all ad valorem and non-ad valorem taxes and assessments, whether general or special and all tangible or intangible personal property taxes and assessments of any kind or nature which may be levied by any governmental authority against the

Premises, Concessionaire’s interest in the Premises, Concessionaire’s

Alterations, Site Improvements or personal property located on the Premises.

Question: Minimal Insurance needed at the owner's expense or covered with lease?

Answer: Page 24 of the Concessionaire Lease Agreement – Article VIII – Insurance outlines the minimum insurance required.

Question: What is the maximum number of people allowed, inside and out? Tables? Sq.

ft. outside?

Answer: The maximum capacity, including inside and outside, for the Premises is sixty-one (61). The number of tables and chairs that can be accommodated depends on the setup. The perimeter of the Premises is 5,500 square feet which includes the building/structure, bathrooms, and patio.

Question: Is a liquor license allowed or can it be negotiated with the lease? if not, Beer and

Wine?

Answer: Liquor cannot be served. However, beer and wine is an option. If beer and wine is served, a liquor license is required. The insurance requirements for serving beer and wine can be found on Page 25 of the Concessionaire Lease

Agreement – Article VIII – Insurance Section 8.04 – Liquor Liability - Liquor Liability coverage with limits of $1,000,000 each occurrence in the event that alcoholic beverages are sold or served with or without a charge.

Coverage may be provided by way of the Commercial General Liability policy utilizing Liquor Liability endorsement CG 2408.

Question: Could the cafe have access to a small portion of the beach?

Answer: The café does not have access to the beach.

Question: Could the cafe offer lounge chairs, day beds, and umbrellas on the beach (at the cost of the cafe, as well as cleaning daily)?

Answer: Page 3 of the RFP document - RFP is limited to sale of food items, beverage items (non-alcoholic at a minimum, beer/wine upon successful licensing) sundry items and the option for bicycle rentals (no E-bikes).

Question: What are the restrictions when renovating the cafe?

Answer: Page 4 of the RFP document - There is opportunity for the Concessionaire to renovate and/or expand food and beverage sales to include a dedicated take-out area and/or additional indoor or outdoor dining at the current area or adjacent to the concession area. Inclusion of such additional space is dependent on

Department approval and must have a storage contingency for all seating, awnings and service items in the case of severe weather events, park closures or short-term venue closures for any other reasons. Any renovations must include the provision of equivalent ocean rescue space. The Premises are located within the boundaries of the Coastal Construction Control Line

(CCCL). Any capital improvements would require permitting through CCCL, and any other entity having jurisdiction over the Park. All renovations would require permits through CCCL.

Refer to Page 9 of the RFP document- Operational and Business Plan, #4h-which outlines requirements for site improvements and page 10 of the

Concessionaire Lease Agreement – Article III - Section 3.02A – Site

Improvements.

Question: Is music allowed?

Answer: Yes, music is allowed for patrons of the café only and should not be loud or objectionable to other park or beach goers. Stage lighting is not allowed.

Question: How long is the bid for, could it be lowered in time or lengthened depending on the cost of lease?

Answer: Page 4 of the RFP document - discusses the term of the lease agreement. The

Term of the Concessionaire Lease Agreement with the County (Agreement) is dependent upon the initial investment for Site Improvements as outlined below, and Sections 1.04 and 1.05 of the Agreement shall be modified accordingly:

1. A proposal ranging from no initial capital investment up to the amount of four hundred ninety-nine thousand and nine hundred and ninety nine

($499,999) dollars qualifies for a term of three (3) years, with an option to extend for two (2) successive period(s) of three (3) years each under the same term.

2. A proposal ranging from the amount of five hundred thousand ($500,000) dollars up to one million ($1,000,000) dollars qualifies for a term of five

(5) years, with an option to extend for two (2) successive period of five (5) years under the same term.

3. An initial investment in excess of one million and one ($1,000,001) dollars qualifies for a ten (10) year period, with an option to extend for one (1) ten year period. The County, however, reserves the right, at its sole discretion, to negotiate an alternate lease period and/or renewal options for proposals that are deemed advantageous to the County in areas other than Site Improvements.

3. Questions from Alan Siegel

Question: Is it possible that the County would consider changing the first lease level to 10 years (4 years with 2-3year options)?

Answer: Proposers must clearly state lease period and/or renewal options in their response. Any lease terms other than those specifically outlined on page 4 of the RFP document must be justified, recommended by the Department and approved by the Board of County Commissioners. The County; however, reserves the right, at its sole discretion, to negotiate an alternate lease period and/or renewal options for proposals that are deemed advantageous to the

County in areas other than site improvements.

Question: If awarded the RFP contract, is there an opportunity to re approach this and lease length respectively afterward?

response. Any lease terms other than those specifically outlined on Page 4 of the RFP document- must be justified, recommended by the Department and approved by the Board of County Commissioners. The County; however, reserves the right, at its sole discretion, to negotiate an alternate lease period

Question: Site Access-Is it allowed for employees to work in the kitchen prepping meals, etc. during the evening hours? Just need to clarify if access is directly tied into the park access?

Answer: Concessionaire employees may have site access during evening hours to prepare meals.

Question: Lease - The maximum lease length is being represented at 9 years, 15 years and 20 years …. depending on capital investment and other improvements as pointed out in the agreement.

A. Is it possible that the County would consider changing the first lease level to 10 years (4 years with 2-3year options)? This will allow the awarded recipient an opportunity to recapture their initial capital investment over 10 years...(1 additional year). Just asking

B. Personally, I would like to see an expansion of the existing building to develop a dedicated snack/sundry area; This would be separate from the restaurant. As you are aware, the restaurant space has been closed for a few months now. It will be vacant even a longer period of time as a result of the bidding process and well needed renovations to the space. I think it is best to initially focus on getting the existing space "up and operational" again. Then, revisit the expansion later in year 1 or early year 2 of the lease. With that said, if awarded the RFP contract, is there an opportunity to re approach this and lease length respectively afterward?

response. Any lease terms other than those specifically outlined on page 4 of the RFP document must be justified, recommended by the Department and approved by the Board of County Commissioners. The County; however, reserves the right, at its sole discretion, to negotiate an alternate lease period

4. Questions from Carlos K. Fairbanks, Doug Cavanaugh and Joe Campbell

Question: My partners are here for the Pre-Proposal meeting on the 10th and we'd like to schedule a site visit on the 11th to take measurements etc. As offered in the

RFP, can you make that happen? 12th would work for us as well.

Answer: Yes, Page 7 of the RFP document - Property Inspection - states that at the conclusion of the mandatory Pre-proposal conference, all potential

Respondents must visit the Premises. In the event an additional site visit is necessary, a Respondent shall make an appointment with the Contact Person.

All parties who desire an additional site visit to inspect the Premises will be required to execute an indemnification/hold harmless and release in favor of the County and perform such inspection at their own risk. County assumes no liability for any injuries to people or equipment during such inspections.

Question: Nowhere in the RFP could we find any restrictions on operating hours. Our current financial projections calculate sales on a 7am to 9pm business model. Will this be an issue?

Answer: Page 9 of the RFP document - #4a - At a minimum, the concession shall be open during daylight hours, 6 hours a day, 7 days a week, including all weekends and holidays. An alternative schedule of operation may be proposed that provides at least 2,100 hours of operation per year and is subject to approval by the Department. Parks has decided that the hours must be between sunrise and sunset. The proposed hours in your model would not meet this requirement.

Question: Do you have a current Flood Elevation Certificate? I will need this to determine the substantial improvement value limits.

Answer: A Flood Elevation Certificate is not available. The successful Respondent would be responsible for obtaining the elevation certificate along with all of the other required permits, surveys, certifications and building deliverables set forth in the RFP from all entities having jurisdiction over the Park.

Question: Where may I find further clarification on what constitutes “an equivalent ocean rescue space”? we're wondering if this has to do with the upstairs being used by lifeguard personnel currently and meaning to make that available to the restaurant we'd have to provide an alternative similar life-guard facility. that's just a guess, so any comments on use of the upstairs are welcome. is there other "ocean rescue space" we should be aware of?

Answer: Plan for an equivalent space of 904 sq. feet. If you are proposing renovations that would impact the Ocean Rescue space then you would need to provide an equivalent space with like amenities.

Question: In our experience "gross sales" have been net of state sales tax, credit card fees and comp sales (sales dollars never collected). Are we on the same page in this regard?

Answer: Please see Exhibit B- Sample Concessionaire agreement- Article 2, Section

2.01B- which defines the terms “Gross Revenues”.

Question: Is there a tax on rent?

Answer: Yes, there is a total tax of 6.5% which is derived from 5.5% tax on rent and 1% infrastructure surtax.

Question: When the RFP states that all proposals will be a matter of public record, is there some timing and a mechanism described as to we go about discovering those?

Answer: Page 7 of the RFP document - Proprietary/Confidential Information-

Respondents are hereby notified that all information submitted as a part of, or in support of, proposals will be available for public inspection after opening of proposals, in compliance with Chapters 119 and 286, Florida Statutes, popularly known as the “Public Records Law” and the “Government in the

Sunshine Law”, respectively.

The mechanism to obtain copies of proposals is to submit a public records request.

Question: Can we include in the total invested capital the value of leased equipment?

Answer: The total invested capital for leased equipment cannot be included, see Page 10 of the Concessionaire Lease Agreement – Article III - Section

3.02A - #7 - Costs associated with acquisition or installation of personalty, such as furnishings, trade fixtures and equipment not permanently affixed to the Premises, or any other personalty whatsoever, shall not be included in the

Minimum Capital Investment.

Question: Are we to understand that all comments to the lease must be submitted with the

RFP and no changes to the lease can be made after that? This is not our experience with previous RFP responses, because in order to have every detail of the lease examined, that would require a very expensive review of the lease by our attorney. We fully understand that all essential terms of the lease be final upon submission, but what about other elements of the lease?

response. Any lease terms other than those specifically outlined on Page 4 of the RFP document- must be justified, recommended by the Department and approved by the Board of County Commissioners. The County; however, reserves the right, at its sole discretion, to negotiate an alternate lease period

5. Questions from Edward H. Sheahan III

Question: Will an interested party have an opportunity to tour the building prior to submitting a proposal?

Answer: Page 5 of the RFP document – Section II, A. Timetable – Site Visit is mandatory which is held immediately after the Preproposal Conference gives all interested parties an opportunity to tour the building prior to the proposal submission deadline.

Question: Do you have any further details on the building as to seating capacity, permits and licenses required, length of rental term that the County would accept, etc.?

Answer: The Premises is approximately 1300 square feet on the first floor of a two-story building. The maximum capacity inside and outside of the Premises is (61) sixty-one.

Page 3, C of the RFP document - The Respondent selected to operate the

Concession on the Premises who then enters into a Concessionaire Lease

Agreement with the County shall secure, maintain and comply with all permits and licenses required to operate the Concession, including the sale of beer and wine, if provided, as well as provide all necessary improvements, equipment and materials.

Page 5 of Exhibit C to the RFP document - section G- Permits - provides more details.

Page 4 of the RFP document - describes the terms of the Concessionaire Lease

Agreement.

Question: Does the County pay a real estate commission or would that be left up to the tenant?

Answer: The County does not pay any real estate commissions and/or fees.

Tenant/Proposer Shall pay any Broker, consultant or other entity claiming entitlement to any commission or fee related to this RFP.

6. Questions from Charlotte Parker

Question: Could you please let me know what the rental rate and lease terms are on this property?

Answer: Page 4, C and D of the RFP document - Operation of the Premises and

Annual Rent, Percentage Rent and Security Deposit of the RFP document outlines the rental rate and the lease terms respectively.

The RFP document is available for download and viewing at:

7. Questions from Delsia Brooks

Question: I would like to know why the restaurant is vacant currently.

Answer: The prior lease expired in August, 2022 and there were no renewal options remaining.

Question: I am requesting information of prior operation history: Rate of success of the restaurant operation over the past 10 years?

Answer: The previous Concessionaire operated for 20 years. They met all conditions of their contract.

Question: What financial records justify the excessive rent demand?

Answer: The guaranteed annual rent amount was set based on current market analysis and is below the rate in the area.

Question: Are you able to provide a feasibility report/study?

Answer: The County has not conducted a feasibility study.

Question: Are financial records available of the past operation?

Answer: Yes. County is processing as a public records request and will provide accordingly.

Question: Did the contract for the last operator expire? And if not what is the reason for not continuing the operation.

Answer: Yes, The prior lease expired in August, 2022 and there were no renewal options remaining.

8. Questions from Kenneth Kennerly

Question: Can Ricky bring anyone else form the business to the site visit only if that person doesn’t attend the 1pm? Ricky and I will attend 1PM meeting but let us know if possible for other Dune Dog exec to attend Site Visit?

Answer: The Proposer must attend both the mandatory pre-proposal meeting and site visit on January 10, 2023. Additional members/representatives of the

Proposer’s team may attend the site visit, as long as at least one member of the team attends both.

NOTE: Please acknowledge receipt of this Addendum No.3 by signing below and returning this page with your Proposal. Each Addendum to the RFP must be signed by an authorized agent and submitted with the Proposal or the Proposal may be deemed unresponsive.

Acknowledgement:

Respondent Date