Business Opportunity Clarifications and Q and A ~1.pdf

CONCESSION AND OTHER SERVICES AT

FRENCHGLEN HOTEL STATE HERITAGE SITE

BUSINESS OPPORTUNITY

CLARIFICATIONS AND QUESTION AND ANSWER

Dated May 30, 2023

1. Clarity on available rooms:

The Frenchglen Hotel:

Top Floor: Contains 8 bedrooms with 2 bathrooms with showers.

Main Floor: Contains 1 primary suite with a bathroom that has been used by previous staff and concessionaires to assure customer safety. Main floor also includes the restaurant style kitchen, dining, restroom, cold storage, and laundry room.

Basement: Dry storage area.

The Drovers Inn:

Main Floor: 4 separate rooms with bathrooms with showers (1 room is ADA wheelchair accessible).

Top Floor: 2nd floor was a game room changed to a primary suite with a bathroom. OPRD reserves the right to utilize this room for OPRD seasonal staff who work in the Steens Mountains. When OPRD is not utilizing primary suite, concessionaire may use this room as part of the concession.

Residence:

Main floor: one bedroom, living room, kitchen, screened in porch, laundry room, and half bathroom.

2nd floor room: two bedrooms shares one bathroom.

2. Clarity on opening times:

March 15 to October 31 annually is the standard required operating periods.

The new concessionaire may open early or stay open longer. Winter weather conditions cause a pause for visitors to access the Frenchglen area.

3. Acreage:

The total new space for the Frenchglen site is 6.36 acres.

4. State Historic Preservation Office (SHPO):

Frenchglen and the small building directly behind Frenchglen(only) is historical and must follow all SHPO rules. Changes to Frenchglen and the adjacent small building may be requested, negotiated and mitigated at a cost to SHPO.

Question and Answer

1. What is the Revenue/P&L Breakdown between Lodging vs. Food & Beverage at Frenchglen Hotel? (What percentage of revenue is F&B, including alcohol?)

Answer: See Attachment D- Additional Business Information.

2. Is there a list of positions with associated hourly/annual wages which were previously employed at this Concession? How many staff were there and what was the total labor cost? Could this be broken down by department?

Answer:

a. OPRD does not have a list of positions, the hourly rate of employees was around

$16.00 per hour, cook was paid a little more. The concessionaire is responsible for setting the hourly rate of employees.

b. Tips: Previous concessionaire would share all tips with employees and indicated there were days that tips were very good. The intention was to pay more because of the commute to Frenchglen.

3. What are the historic Average Daily Rates and Occupancy Percentages at Frenchglen Hotel vs. Drover's Inn?

Answer: See Attachment D- Additional Business Information.

4. Would it be possible to view copies of the most recent menus (including pricing) for the restaurant at Frenchglen Hotel?

Yes, see Attachment D- Additional Business Information.

Dinners would cost $23.00 to $26.00 per person depending on what was being served and were all family style.

5. What is the availability of Employee Housing at Frenchglen, other than the provided caretakers quarters? Is staff expected to commute from Burns or is there other nearby housing available? Would it be possible for a new Concessionaire to bring in Additional Dwelling Units for employee housing?

a. The Frenchglen main floor contains a primary suite that has been used by previous staff and concessionaries.

b. We do not have commute expectations. We do not have a list of housing for the

Frenchglen area.

c. Any site modifications must be fully documented according to the Harney County

Building Department, vetted through the Park Manager and public then approved by the OPRD Commission.

6. The Concession property is described as "turn-key," but supporting documents indicate that not all personal property (e.g., linens, tools, and equipment) is included - Is a detailed list of Agency personal property provided for use available to view? (Or a detailed list of personal property which was used by previous concessionaire but NOT provided by Agency, and required of new contractor?) If such a list is not available, could a list of provided kitchen equipment be created?

Answer: Yes, please see Attachment D- Additional Business Information.

7. Is/Are the ghost(s) friendly? 👻 Answer: Yes, we only have friendly ghosts.

8. Page 5, Section 2.2.4, Paragraph 4. What are some examples of cyclic maintenance that falls in the periodic cycle of greater than one year but less than seven?

Answer: deck staining, fence repairs/replacement that are not hazardous to the public, window screen replacement, building/trim painting, add aggregate to driveway, down trees from the winter storm. The goal is to maintain the overall look of the current property and provide safe spaces for the visitors and children visiting the property.

9. Page 7, Section 3.3.2.2, Subsection A, Paragraph 4: Would it be possible to get details of the prior operations such as: food pricing, room rental rates (by room/building), cancellation policies, method of reservations (phone, email, website), allowance for pets and associated pet fees?

Answer: Yes, please see Attachment D- Additional Business Information for menu.

Frenchglen Hotel:

$92.00 per room with one single bed. Room #2 is $95.00 for 2 single size beds.

Main Floor Primary suite is to assure visitors are not alone in the hotel.

Drover’s Inn:

Room rates $145.00 per night for Rooms A, B, C, D.

Room E reserved for OPRD employee, if rented out is $165.00 per night.

Reservations:

Method of reservations were mostly done by phone, with some emails. Cancellation policy 72 hours.

Pet Fee:

$10.00 extra for per pet fee.

10. Attachment A. Business Description. Page 5. Section 4.2. In Exhibit 5, what do the numbers on the left side of the chart refer to (0-250)?

Answer: Yes, that is correct. Here is Frenchglen occupancy.

11. Attachment A. Business Description. Page 9. Section 5.4. Is there a breakdown available of the prior income from food, alcohol, retail, overnight accommodations, etc.?

Answer: Yes, we have that information from Frenchglen Hotel (only) before the Drover’s Inn merger. See Attachment D- Additional Business Information.

12. Attachment A. Business Description. Page 12. Section 9. What is the make and model of the new stove?

Answer: Southbend S-Series Restaurant Range 60” series which includes 4 burners, 36” griddle, and 2 standard ovens.

13. Attachment A. Business Description. Page 12-13. Section 10.1. Industrial Washer/Dryer installation allowance and feasibility.

Answer: Any changes in Frenchglen for new industrial style washer/dryer installation must be vetted through the SHPO.

Useable, replaced machines will follow State of Oregon Surplus requirements for state owned properties.

14. Can you tell us if we would be responsible for 2022 taxes on the Drovers Inn? From the additional information provided (Exhibit 10, "Summary of Tax Accounts") it appears that the Drover’s Inn and Residence has taxes due in the “current due” column for 2022, unlike the other properties.

Answer: The taxes will be prorated according to start-up dates.

15. Do you have a requested operations start date that you want estimates for in Y1 (2023)?

Answer:

Here is how the tentative schedule should flow:

June 12th: Intent to award issued and contract/lease negotiations begin.

June 19th: Protest period ends.

June 20th- 29th: Final negotiations and collection of contractor insurance and business information.

June 30th: Contract and lease go into signature.

July 1th: Frenchglen and Drover’s Inn soft opening to utilize current reservations.

16. On the Frenchglen Hotel Inventory list under the “kitchen” heading, a “Wolf stove” is listed. We did not see a stove in the hotel kitchen during the open house. Can you confirm if a cooktop/oven is included in the equipment or if we will need to plan to purchase it? Any additional information would be appreciated!

Answer: OPRD purchased a new stove and is set to arrive this week. Southbend S- Series Restaurant Range 60” series which includes 4 burners, 36” griddle, and 2 standard ovens.

17. Linens on the hotel beds were visible during the open house but it appears from the paperwork (Exhibit 14- "Contractor Real and Personal Property Investments and Timing") that the contractor will need to purchase new ones before start up. Can you confirm if the contractor is expected to purchase new linens?

Answer: The current linens and towel inventory is fine and there is no need for replacements this year.

OPRD does not expect the new concessionaire to replace linens in 2023.

18. During the open house, there was mention of reservations taken for the upcoming season. Can we get the (approximate) numbers on that? Occupancy rates, room rental rates, that sort of thing.

Answer: These are occupancy percentages for each month that people have booked rooms for. We continue to get phone calls every day but we are now asking them to call back later so we do not have to cancel any more reservations in the event we do not find someone to take the hotel over.

Drovers Inn July-57%

August-35% September-18%

October-12% Frenchglen Hotel

July-16% August-35%

September-18% October-12%

19. Since the new operator will only be in charge of the property for 6 months this year and OPRD has refurbished the property (very wonderfully I must add) so that more minimal maintenance should be expected the 4 operating months of 2023, could the 2023 maintenance requirement be figured on 'time' ie the 6 months of 2023 the new operator is actually operating the facility - ie $5000, without that being considered a 'negotiated' amount, but rather just assumed it is calculated on the number of months the concession is operated? ie 6 months = half the year = $5000?

Answer: Yes, this proposal may be negotiated.

20. Could I house the employees with me in the 'house' and provide a substantial wireless intercom system for an assigned 'on call' person at the house to quickly handle any emergencies at night, freeing up the downstairs room for a rental room to 'take the place' of the upstairs Drover’s Inn room removed availability and revenue?

Answer: If the Frenchglen main floor primary suite is set aside to assure Frenchglen customers are not left alone.

If concessionaire feels strongly about the room being rentable; the decision to become rentable will be made by OPRD Commission and OPRD Executive Leadership. If approved by OPRD Commission, the room will need to be inspected and approved rentable by Harney County at the cost of the concessionaire.

Wireless intercom systems will not impact the integrity of the historical Frenchglen structure. Any changes to the structure must be vetted through SHPO.

“End of Clarifications and Question and Answers”