Business Opportunity QA Revised 082224.pdf

BUSINESS OPPORTUNITY FOR

CONCESSION AND OTHER SERVICES AT SILVER FALLS STATE PARK

Question and Request for Clarifications Document August 9, 2024 Questions 1-8

New: August 21, 2024 Questions 9-41

1. Does OPRD insure the concession facilities / structures or is that the responsibility of the concessionaire?

Answer: OPRD insures the structures.

2. It appears the second contract was given to a “set-aside” business entity, do they get the award automatically if they meet the solicitation criteria requirements?

Answer: There will only be one contact for the Smith Creek Village, Ranches and South Falls Café facilities outlined in the business opportunity.

3. Is there a minimum concession fee for the proposed concessionaire?

Answer: There is no minimum concession fee.

4. What is the current concession fee the incumbent operators are paying the State?

Answer: There is no current concession fee due to the dire need for concession services during the COVID-19 pandemic.

5. The term is listed at 10 years but can be negotiated to a 20 year term based in the level of investment towards capital improvement projects by the awarded concessionaire, is that correct?

Answer: Yes, this is correct.

From Business Opportunity: “Agency intends that any resulting Contracts will have a term of up to 10 years if for only Basic Services, and up to 20 years if for a combination of Basic Services and Additional Projects.”

6. Are any of the capital improvement projects required or simply requested by the state of the $870K in priority projects and $1M in desired projects?

Answer: No, all the capital improvement projects listed in the Business Opportunity are desirables not mandatory requirements.

7. Give the open house / site visit is not until August 16th, and questions due on the 21st would an extension of this business opportunity be considered?

Answer: OPRD reserves the right to extend the Business Opportunity closing date.

8. Do you have historical revenue date for this concession contract?

Answer: Please see Exhibit B- Business Description. The Silver falls Hospitality LLC total 2023 revenue was $1,210,700. The South Falls Café 2023 revenue was $747,649.

End of Question and Answer for August 13, 2024

New: Question and Answer for August 21, 2024

9. I have a question about the requirements for Financial Information and Resources (page 10 section C, 2.5.): proof of the Interested Party’s ability to meet at least 6 months of startup and payroll costs, in the form of bank statements, credit lines, existing loan availability, and any other sources of cash. If applicable, explain financial resources and planning for any Additional Projects. Can my current accounts receivable could be considered?

Answer: Generally, OPRD has broad discretion to determine whether an Interested Party’s submission is responsive to the requirements of the Business Opportunity. It would be a decision within OPRD to assure the accounts receivable is sufficient and demonstrates the ability to cover 6 months of startup costs.

10. What transition support does the contract winner get from OPRD?

Answer: OPRD will facilitate the transition contractually but does not take part in any transition activities. OPRD will provide oversight to assure a smooth transition.

11. Does the contract winner get the contact info and the right to offer continued employment to current staff?

Answer: I don’t recall what we did specific to this meaning that we “required” the current operators to share that information however, staff have transitioned from one operator to another.

12. Do you have any numbers on past payroll costs for the South Falls Cafe, Big Leaf Cafe and the Village?

Answer: The Silver Falls Concession, LLC which includes Big Leaf Café, Smith Creek Village and 2 Ranches 2023 Food and Beverage Payroll $253,175.

The Big Leaf Café Food and Beverage Payroll was $246,840 5 positions x 8 hours x 363 days at $17.00 per hour.

13. What amount in cash/line of credits etc... is the minimum to cover startup and payroll costs to cover the first 6 months for this contract according to OPRD? Or is it based solely on our estimates in the financial forms?

Answer: Pending

14. Is there an ideal amount of proof of Cash/LOC that OPRD is looking for to cover the first 6 months of operation?

15. There is a section in the Expense Statement Form for property taxes, what is this for? Does the concessionaire have to pay property taxes on the facilities and property used in the state park?

Answer: I South Falls Café is a shared space. Smith Creek Village and the Ranches: Yes, the 2023 Property Tax paid was $2,152.49

16. Are there any necessary repairs needed right now for the concession to continue normal operations and if so, what's the estimated costs?

Answer: There are not any critical repairs needed to maintain current operations. There are previously approved maintenance projects the current operator is scheduled to fix; The office roof repair and new window blinds.

17. What property stays with the facilities at Smith Creek Village, South Falls Case and Big Leaf Cafe, that the next contract winner would be able to use?

Linens? Furniture? Art work? Payment system? Maintenance Supplies? In the Kitchens:

What equipment at South Falls Cafe? What equipment at Big Leaf Cafe?

Answer: Please see BO- Personal Property List at Oregon Parks and Recreation : Doing Business with OPRD : About Us : State of Oregon.

18. Do renovations require a contractor license or can the concessioner complete minor renovations and improvements, such as flooring, wall paneling, drywall, fixtures and or painting.

Answer: Depending on the type of minor renovations, they may be performed by concession staff with the skills and abilities to perform the task. OPRD will work with the concessioner to review project scope and approach.

19. Is the Parks currently maintaining HVAC systems? If not, who would pay for the inspections prior to the lease?

Answer: HVAC system maintenance at Smith Creek Village is the responsibility of the concessionaire. The South Falls Lodge HVAC is the responsibility of the Park. All cooking equipment ventilation and fans are the responsibility of the concessionaire.

20. Is their financial data on the utility costs for Smith Creek Village?

Answer: We would need to request this information for the current concessionaire.

21. What date is the current vendor stopping their services?

Answer: The current Contract expires October 31st, 2024. OPRD may negotiate a short-term Amendment to extend the services.

22. Is there an option to transfer ownership of equipment from the current concessioner to the new concessioner? If so, can we get a list of the equipment available to transfer?

Answer: Please see the BO-Personal Property List uploaded for proposer review.

Transferring of equipment and property would need to be negotiated directly with the current concessionaire.

23. Do any of the current employees working the restaurant or Smith Creek Village want to be retained under the new contract? If so, who would initiate these conversations?

Answer: It is not uncommon for employees of past concessionaires to be hired by the new concessionaire. We could ask the current concessionaire to ask employees if they wish to be considered.

24. Can you please provide the boundaries of the land assignment? Can the land assignment be expanded for additional uses?

Answer: See attached Map #1 of the current Smith Creek Village area. The South Falls Lodge areas are outlined in the Business Opportunity. Expansion would be considered based on proposals and impact to park resources and facilities.

https://www.oregon.gov/oprd/AO/Pages/AU-business.aspx https://www.oregon.gov/oprd/AO/Pages/AU-business.aspx

25. Can you please provide clarification on the water and septic courses and capacity by location? What potential challenges exist for future projects?

Answer: Currently the main areas of SCV have additional capacity. Any additional loads added to the Upper Smith Creek Village cabins would require sewer catchment upgrades to connect the upper system to the main lift station and pumps located in the main parking lot area of Smith Creek Village.

26. What is the square footage of the theater building and the outdoor space in that area? Can pictures be provided?

Answer: The Theater Building is 624sq. ft. The outdoor space is approximately 4,150 sq. ft.

See attached Pictures.

27. What is the square footage of the public space in the Big Leaf bar and grill sitting space and the lobby space in the espresso bar area?

Answer: The Big Leaf Coffeehouse and Grill is 4627 sq. ft.

28. Can pictures off the café kitchen / back of house be provided?

Answer: See attached Pictures.

29. Who is responsible for landscaping?

Answer: Landscaping at Smith Creek Village and the Ranches is the responsibility of the concessionaire. The landscaping at the shared South Falls Lodge space is the responsibility of the park.

30. Would OPRD consider an extension of this due date for this business opportunity?

Answer: Yes, currently September 6th, 2024.

31. Is there any historical information on payroll expenses or total number of staff/staff FTE required for recent operations?

Answer: Historical Average for Smith Creek Village is $247,000 and we do not have access to a Historical Average for the Café.

32. Any special insurance requirements that are out of the ordinary for the contract?

Answer: No: Workers Comp, CGL, Auto, Employee Theft and Dishonesty in case of credit/bank card breach.

33. Who is responsible for all groundskeeping activities in the vicinity? Park staff or concessionaire employees?

Answer: Landscaping at Smith Creek Village and the Ranches is the responsibility of the concessionaire. The landscaping at the shared South Falls Lodge space is the responsibility of the Park.

34. Are the capital improvement projects expected to be funded in full by the concessionaire?

Or would OPRD contribute any budget towards these projects? Is there an ideal timeline for capital improvements?

Answer: The Additional Projects listed in the Business Opportunity should be addressed by the Interested Party in the C. REQUIREMENTS FOR NOTICES OF INTEREST 2.3 Plan for Additional Projects (Optional).

35. Is there an inventory list that you can send over, especially in terms of the restaurant and concessions equipment?

Answer: Please see Personal Property List.

36. Is there flexibility on the November start or is that required due to the expiration of the existing contracts?

Answer: There is flexibility based on Interested Party proposals and the evaluation and selection process.

37. In regards to construction permits and zoning, what agency manages that process?

OPRD manages Permits with Marion County. What is the timeline for getting approval for renovations?

Answer: Timing for project approvals would depend on the scale of the project and overall impact to facilities and infrastructure.

38. Does the current zoning allow for private bathrooms in the camping sites?

Answer: All facilities within Smith Creek Village and both Ranches currently have bathrooms. The cabins located at Upper Smith Creek and the Ranches have flush toilets and sinks but not shower facilities. Adding showers to the Ranches are part of the Additional Projects section of the Business Opportunity.

39. Who manages Oregon State Parks Reserve America website? Can you confirm whether that site access and revenue will be transferred?

Answer: OPRD manages this website. Current concessions do not use the OPRD website but rather their own reservation system. The https://www.smithcreekvillage.com/ domain is OPRD owned and transferable.

40. For third-party websites, like Airbnb, will the site access and revenue be transferred or can be acquired for a fee?

Answer: Transferring of assets and property would need to be negotiated directly with the current concessionaire.

41. Is the agency open to a lease hold mortgage being used to fund some renovations and operating expenses?

https://gcc02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.smithcreekvillage.com%2F&data=05%7C02%7CWinona.Butler%40oprd.oregon.gov%7Caaceafc4023c41c092e508dcc2ed5dab%7Caa3f6932fa7c47b4a0cea598cad161cf%7C0%7C0%7C638599571932577537%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C0%7C%7C%7C&sdata=RGQ0a1SY6cMgLk2R%2FNUP5HdLh9%2FrAPjR3QW%2BlCRnpi8%3D&reserved=0

MAP #1

PICTURES

South Falls Lodge- Elevation

South Falls West- Elevation

South Falls Lodge Café

Back Kitchen

Back Kitchen Exterior

Front Kitchen

Front Kitchen Exterior

South Falls Lodge Theater and Courtyard

Courtyard