Sample concession_agreement Yellowstone Lake_2026.docx

Concession Agreement - Page 14

State of Wisconsin Section 27.01(2)(f) Department of Natural Resources Wisconsin Statutes

CONCESSION AGREEMENT

YELLOWSTONE STATE PARK

This Concession Agreement (hereinafter referred to as the “Agreement”) is entered into by and between the State of Wisconsin Department of Natural Resources (hereinafter referred to as the “Department”) and CONCESSIONAIRE (hereinafter referred to as the “Concessionaire”). The Yellowstone Lake Superintendent shall be the primary representative of the Department in the management of this Agreement. The primary representative of the Concessionaire is _________________________.

RECITALS

WHEREAS, pursuant to Wis. Stat. s. 27.01(2)(f) the Department considers it necessary for the proper comfort and benefit of the public to grant to the Concessionaire a concession agreement specifically for the furnishing of supplies or facilities and services at Yellowstone Lake State Park (hereinafter referred to as “Yellowstone Lake”);

WHEREAS, the Department considers this concession is of concern and benefit to Yellowstone Lake and will render Yellowstone Lake more attractive for public use;

WHEREAS, the Concessionaire may enter into this Agreement pursuant to its Articles of Incorporation and Bylaws and Wisconsin Statutes;

WHEREAS, pursuant to section NR 45.02, Wis. Adm. Code, the Department retains management, supervision, and control over the Property for the purpose of enforcing Chapter NR 45, Wis. Adm. Code, when needed to protect the public or the Property;

NOW, THEREFORE, in consideration of their mutual promises, the parties agree as follows:

1. Term of Agreement: The Department grants to the Concessionaire the right to operate the concession at Yellowstone Lake from DATE OF EXECUTION through December 31, XXXX in exchange for the concession payment provided herein.

a. The Concessionaire will not permit any silent partners.

b. The Concessionaire’s right to operate the concession is contingent upon proof of insurance as required herein.

c. Except as provided herein, the Agreement shall terminate on the date above and the Concessionaire shall relinquish all claims and rights regarding the concession at Yellowstone Lake at that time. At such time as this Agreement terminates the Department shall take immediate and full possession of property.

d. The terms of this Agreement may be renegotiated at any time by mutual consent of both parties.

e. If the Concessionaire wishes to renew this Agreement however, they must inform the Department in writing at least 60 days before the termination date of their desire to renew. The Department, in its sole discretion, may renew this Agreement for ADDITIONAL TERMS IF APPLICABLE X TERMS of X YEARS.

2. Location: The concession will be located on those portions of Yellowstone Lake described in Exhibit “A” (hereinafter identified collectively as the “Premises”) which is attached and made a part of this Agreement.

3. Services Provided: The concession will include stores selling recreational supplies and equipment, food, soft drinks, confections, merchandise and clothing, and such other supplies and services as are ordinarily in demand by tourists, park campers and visitors. This may also include, subject to Department approval, the rental of equipment for use in snow sports and the sale or rental of such other items or services that would be consistent with the operation of the concession. If provided by the Department, this shall also include universal equipment consistent with the operation of the concession for use by the public. The Concessionaire shall maintain, store, and rent the Department provided universal equipment. All revenues from the rental of the Department provided universal equipment shall be provided to the Concessionaire.

4. Sales Operation: At no time can a Concessionaire sale be made on a DNR credit card machine. The Concessionaire shall provide a credit card machine that is separate from the DNR’s credit card machine to complete all sales transactions applicable to the concession’s operation.

1. The credit card machine shall be operated on its own wireless or cellular internet provided by the Concessionaire.

1. It is strongly encouraged that the Concessionaire avoid cash sales transactions, exceptions may be made for the following situations: customer self-service sales or special event sales.

5. Orderly Operation: The Concessionaire shall conduct and supervise the concession in an orderly and business-like manner and shall not permit any disorderly behavior on the Premises. No pinball machines, electronic games, shooting galleries or other similar devices may be installed. No intoxicating liquor, firearms, paintball/air guns, spear guns or pyrotechnics will be sold or rented. No polystyrene foam cups or other non-recyclable containers will be provided by the Concessionaire. The Concessionaire will provide their own trash can liners, preferably made of biodegradable materials.

6. Hours/Days of Operation: The concession shall be operated and open for business on a daily basis from at least Friday, Saturday and Sunday, Laborday to Memorial Day- each year and at all other mutually agreeable times, except that the concession shall close by 10:00 p.m. The Concessionaire can coordinate for extended operations pending demand and special events. The hours/days of operation shall be discussed annually prior to April 15th. Any adjustments to the hours/days of operation shall be agreed to by the Concessionaire and Superintendent of Yellowstone Lake.

7. Facility Use: The Department reserves the right to use the Facility for special events, nature programs or exhibits which are in accordance with the purpose and objectives of Yellowstone Lake and the state park system.

8. Uniforms: The Concessionaire will provide suitable uniforms for all concession employees. The uniform will be jointly approved by the Concessionaire and the Department.

9. Adequate Supply of Inventory: The Concessionaire will maintain an adequate stock of goods and supplies and supply appropriate and necessary services in accordance with the purpose of this concession. The Concessionaire will also charge prices that are competitive with other merchants in the vicinity for all goods and supplies sold, services performed or equipment rented to the public, and, on request, will inform the Department in writing of the prevailing prices for the goods and supplies sold, equipment rented or services performed. If the Department determines that a particular price is too high or too low, the Concessionaire will reduce or raise the price according to the Department's directions. The Concessionaire will use price tags that identify Yellowstone Lake concession items.

10. New Facilities and Services: If new supplies, facilities, or services are deemed necessary by the Department or Concessionaire for the benefit of the public at Yellowstone Lake, the Concessionaire shall be offered first opportunity to provide them under such conditions as may be then mutually agreed upon by the parties. Should the Concessionaire choose not to provide the supplies, facilities, or services, the Department shall have the right to enter into a concession agreement with a third party whose concession activity will not be allowed within 50 feet of the Premises.

11. Signage: The erection of signs and advertising or display materials relating to the concession is not allowed unless authorized in writing by the Department. No hand lettered signs shall be allowed, and all sign materials and graphics shall be professionally displayed. All signs, advertising or display materials, and exhibits issued or used by the Concessionaire shall be paid for by the Concessionaire and shall clearly identify Yellowstone Lake as the property of “State of Wisconsin Department of Natural Resources.”

12. Furniture, Fixtures and Equipment: All concession furniture, fixtures and equipment necessary to operate the concession will be purchased from the Capital Account funds, as defined herein, and will thereupon become the property of the Department. The Concessionaire will not remove such personal property at any time during the term of this Agreement. The Concessionaire will replace and upgrade furniture, fixtures and equipment on a routine basis or as needed due to damage/theft.

13. General Management: Yellowstone Lake, on which the Premises is located is managed and administered wholly and exclusively under the jurisdiction of the Department. The management and operation of the concession is subject to all applicable Wisconsin statues and administrative codes, including any requirements of the Wisconsin Department of Commerce and Department of Revenue and federal Occupational Safety and Health Administration requirements, if any, and county and local zoning, health, fire, safety and sales laws. All state, county and local laws and rules for the preparation and distribution of food and beverages shall be strictly adhered to. The Concessionaire shall ensure compliance with all such laws

14. Premises Management: The Concessionaire will maintain and keep up all buildings, attached bathrooms, and all surrounding ground areas of the Premises, and in particular the Campus Areas, in good repair, and in a clean, neat, and sanitary condition at all times. The high standards of maintenance and upkeep of the Premises for a clean, neat, and sanitary condition shall include, but not be limited to: removal of trash and obstructions; except when such activities may be performed by the Department, at its sole discretion. The Concessionaire will not cause or allow any waste or nuisance upon the Premises.

15. Security: The Concessionaire agrees to take reasonable action necessary to guard against trespass and to keep secure any room or building on the Premises used in the concession.

16. Facility Repairs and Capital Improvements:The Concessionaire shall be responsible for the upkeep of all interior spaces, including all walls, flooring, and ceilings of all the buildings on the Premises. The Department shall be responsible for all exterior roofs, siding, windows, doors and access areas, in addition to interior plumbing, electrical systems, heating and water conditioning of all the buildings on the Premises. Additional capital improvements by both the Concessionaire and the Department that are required during the term of this Agreement are listed, and are included herein as Exhibit “B,” which shall be reprioritized and redefined by the parties prior to April 15th of each year. The Concessionaire may make other capital improvements to the Premises at its own expense. All facility repairs or capital improvements or additions must match the architectural/historical design of the buildings and must be approved in writing by the Department prior to implementation.

17. Property Insurance and Building Remodel/Repair/Reconstruction: If the Premises, or any part thereof, are destroyed by water, wind or fire, or by a human or a natural cause so as to make it necessary to rebuild, restore, replace or substantially repair the Premises, or any part thereof, the Concessionaire agrees that the Department shall not be required by this Agreement to rebuild, restore, replace or substantially repair the Premises, or any part thereof. Both parties understand that the State is self-insured and does not carry additional or outside coverage on the Premises or any of buildings thereof. Therefore, both parties agree that the Concessionaire may carry full property and casualty insurance coverage on the Premises, to include buildings, contents, inventory, fixtures, furniture and equipment, and that the Concessionaires insurance shall be the primary insurance on the Premises. The Concessionaire shall be allowed to rebuild, restore, replace, or substantially repair the Premises, or individual buildings on the Premises, at its’ own cost through its’ insurance coverage, with the Department’s written approval, which shall not be unreasonably withheld.

18. Temporary Closure: If the Department determines that an emergency exists, the Department may order the concession to be temporarily closed. Closures for severe emergencies such as flooding or storm damage may require that the Department close the concession for an extended period. Any closure of the concession by the Department for a period of 15 days or longer for emergency purposes during a period between Memorial Day and Labor Day shall permit the Concessionaire to request re-negotiations with the Department on the percentage fee to be paid to the Department for that calendar year. The Department shall agree to negotiate in good faith in such circumstances.

19. Concession Payments: the Concessionaire agrees to pay a percentage of the gross annual revenues collected from this concession to the Department. These payments shall be made by April 1st of the following year. For purposes of this Agreement “gross annual revenues” are all revenues collected by the Concessionaire for sales of goods and services, rental of equipment, event fees, and booking of activities, excluding sales taxes collected. During the term of this Agreement the percentage of the gross annual revenues paid to the Department shall be as follows:

TERM: X%

20. Financial Reports: The Concessionaire shall furnish the Department with annual financial reports, including an income statement and balance sheet, which may be completed by an independent Certified Public Accountant that also contains an evaluation of internal controls within 90 days after January 1st of each year. The Concessionaire will report concession employee salaries and wage scale in the annual financial report. The Concessionaire shall maintain a set of books and records on the operation of the concession that includes accounts for each category (e.g., operating, capital, etc.) as specified in this Agreement, or as agreed upon by the parties. The books and records shall be made available to the Department at any reasonable time for the purpose of examination and shall be retained by the Concessionaire for at least 5 years. The Department may request an independent CPA-certified financial audit, to be paid for by the Concessionaire, at least 3 times during the term of this Agreement.

21. Sales Tax: The Concessionaire shall obtain and maintain a seller’s permit for all sales tax; or the appropriate sales and use tax exemption certificate from the State of Wisconsin Department of Revenue, and comply with all sales tax requirements under current Wisconsin law.

22. Utilities and Services: The Concessionaire will pay for all utilities and services on the Premises, including: telephone; internet (if available); and refuse collection, used or consumed in the operation of this concession with separate meter installation if necessary. Water and sanitary sewer will be provided by the Department. The Concessionaire shall place all refuse in containers provided and paid for by the Concessionaire. The Concessionaire will separate all recyclable material and deposit in appropriate containers.

23. Revenue Enhancements and Business Performance: The Concessionaire shall be responsible for continually evolving and expanding services for visitors and researching opportunities to increase and enhance revenue. Additional enhancements by both the Concessionaire and the Department required during the term of this Agreement are included herein as Exhibit “C,” which shall be reprioritized and redefined by the parties annually prior to April 15th of each year. Additionally, the Concessionaire shall furnish to the Department an audit of the business plan at least 1 time during the term of this agreement to determine the overall performance of the concession.

24. Customer Satisfaction: The Concessionaire shall create and operate a self-evaluation system acceptable to the Department to monitor the public’s perception of the quality and prices of services they receive. Annual customer satisfaction surveys should be completed, compiled and reported to the Department by April 15th of the following year.

25. Annual Meetings: The Concessionaire and the Department agree to meet twice per year on dates mutually agreeable to both parties to discuss plans and operations of the concession. One meeting must be in the spring prior to the concession operating season to discuss plans for the coming year.

26. Complaints: The Concessionaire must report all complaints, accidents, injuries and property damage over $100 to the Superintendent of Yellowstone Lake within a reasonable time, not to exceed 72 hours.

27. Termination Rights: Either party may terminate this Agreement upon 30 days written notice to the other party if the notifying party determines that the other party has not carried out the terms of this Agreement. If the Department determines that the Concessionaire's management or operation of the concession is unsatisfactory in any substantial respect or if the Department determines that the Concessionaire has failed to carry out the terms of this Agreement the Department may terminate this Agreement immediately either orally or in writing. Upon termination of this Agreement the rights of the Concessionaire are forfeited, and the Department may immediately take possession of and operate the concession.

28. Right of Entry: The Department may enter upon the Premises at any time upon reasonable notice for any reason, and for the purpose of inspection or making such repairs and improvements as the Department deems necessary.

29. Indemnification and Insurance: The Concessionaire shall indemnify the Department against any cause of action, claim, damage, cost, or expense, including reasonable attorney's fees, arising from the management or operation of the concession or from any breach or default by the Concessionaire in the performance of this Agreement or from any negligence of the Concessionaire at the Premises. In case any action or proceeding is brought against the Department by reason of any such cause of action or claim, the Concessionaire, upon notice from the Department, will defend the Department by counsel reasonably satisfactory to the Department. The Concessionaire shall purchase public liability insurance, as well as liquor liability insurance (if selling alcoholic beverages), to be effective on the beginning day of this Agreement naming CONCESSIONAIRE as the insured and the State of Wisconsin Department of Natural Resources, its employees and agents as additional insured, with each policy in the amount of $1,000,000.00 single limit per occurrence including coverage of $1,000,000.00 for bodily and personal injury and $50,000.00 for property damage so that the Department will be protected from any liability arising out of the operation or management by the Concessionaire of the concession and the sale of alcohol (if selling alcoholic beverages). The Concessionaire shall furnish the Department with a copy of the insurance policy(ies) or certificate(s) of insurance, to be placed in a file with the Agreement at least 2 weeks before the Concessionaire begins operations and such required insurance coverages shall remain in full force and effect throughout the term of the agreement. This Agreement is conditioned on the Department's approval of the insurance policy(ies). Any notice of cancellation of or change in coverage under the insurance policy(ies) requires prompt notice to the Department.

30. Workers’ Compensation: Where applicable, the Concessionaire shall furnish full worker's compensation coverage for its employees and shall comply with all social security and withholding tax laws and rules. A person claiming that coverage is not required under Chapter 102, Wis. Stats., shall upon request, provide the basis for such opinion in writing to the Department.

31. Non-discrimination: In connection with the performance of work under this Agreement, the Concessionaire agrees not to discriminate against any employee or applicant for employment because of age, race, religion, color, handicap, sex, physical condition, developmental disability as defined in s. 51.01(5), Wis. Stat., sexual orientation as defined in s. 111.32(13m), Wis. Stat., or national origin. This provision shall include, but not be limited to, the following: employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training; including apprenticeship. The Concessionaire further agrees to take affirmative action to ensure equal employment opportunities. The Concessionaire agrees to post in conspicuous places, available for employees and applicants for employment, notices to be provided by the contracting officer setting forth the provisions of the nondiscrimination clause.

32. Obligations: All obligations and responsibilities of the Department are subject to the availability of current and future legislative appropriations.

33. Affirmative Action Plan: Agreements estimated to gross $50,000 or more annually require the submission of a written affirmative action plan. Concessionaires with an annual work force of less than 25 employees are exempted from this requirement. The plan shall describe where job vacancies are publicized and what action is expected to target minority or underrepresented groups of citizens.

34. Independent Contractor: The Concessionaire is an independent contractor and not an employee or agent of the Department, and the Concessionaire assumes full responsibility for any liability which may arise out of the management or operation of the concession.

35. Assignment of Agreement: The Concessionaire shall not assign, sublease, sub-contract or otherwise transfer this Agreement nor mortgage or pledge rights under it except with the prior written approval of the Department. Furthermore, the Concessionaire shall not create any lien, security interest or encumbrance on or in the Premises, including any building.

36. Included in This Agreement: In this Agreement, the Department and the Concessionaire include their respective employees, officers, members, directors, agents, servants, contractors, representatives, partners, assignees and successors. If the Concessionaire ceases to exist in fact or by law, the Department may immediately terminate this Agreement and, without waiving any remedy available to it, perform the duties under this Agreement.

37. Other Agreements Superseded: This Agreement shall constitute the entire Agreement and previous Agreement communications or Agreements pertaining to this Agreement are hereby superseded. Any contractual revisions including cost adjustments and time extensions must be made by an amendment to this Agreement or other written documentation, signed by both parties at least 30 days prior to the ending date of this Agreement. The Concessionaire shall notify its insurance company and its surety, if any, of any amendment.

IN WITNESS WHEREOF, the State of Wisconsin Department of Natural Resources has caused this Concession Agreement to be signed at Madison, Wisconsin, by the Department's Secretary for the Wisconsin Department of Natural Resources.

State of Wisconsin Department of Natural Resources For the Secretary

By ____________________________________ Date Signed _______________ Office of the Secretary

IN WITNESS WHEREOF, CONCESSIONAIRE has caused this Concession Agreement to be signed at CITY, Wisconsin, by its President and Secretary.

By ____________________________________ Date Signed _______________ NAME, President

By ____________________________________ Date Signed _______________ NAME, Secretary

EXHIBIT “A”

The Premises shall consist of the following buildings and grounds areas for the operation of concessions by the Concessionaire at Yellowstone Lake. ((MA) see Exhibit “D” for a complete depiction of the entire Premises):

EXHIBIT “B”

(O)The following improvements shall be completed by the respective parties to this Agreement. This list is a changing and growing list that should be redeveloped and reprioritized at least annually.

EXHIBIT “C”

(O)The following revenue enhancements shall be completed by the Concessionaire. This list is a changing and growing list that should be redeveloped and reprioritized at least annually.