Reserve Account Use Clarification.docx

This is a Reserve Account Use Clarification document issued by the Illinois Department of Natural Resources regarding the Cave-In-Rock Lodge Concession contract. The clarification specifies the permitted and prohibited uses of the Reserve Account established under Section 5.3 of the concession contract. The Reserve Account may be utilized for expenditures related to replacement, development, rehabilitation, and maintenance of the concession facility and premises, including equipment purchases such as tables, chairs, and kitchen equipment. However, the document explicitly prohibits using Reserve Account funds as starting capital to initiate concession operations, and interested bidders should not rely on these funds for initial operational startup. The contract term runs from January 1, 2027, through December 31, 2031, with renewal options available.

Reserve Account usage must be approved by the Site Superintendent, Concession Manager, or Concession and Leasing Manager/IDNR Director based on established monetary thresholds. The account is designed to sustain the concession location by funding unexpected expenses such as mechanical repairs, pest control services, and similar maintenance activities. While new equipment purchases may occasionally be necessary, prospective bidders should not anticipate or plan for such purchases when developing their financial proposals. All Reserve Account expenditures require mutual agreement between the Site Superintendent and the concessionaire prior to approval by appropriate management authority.