LEASE OF REAL PROPERTY AT 100 BEACH AVENUE a/k/a “THE BROADWAY PAVILLION”

The City of Cape May, located in Cape May County, New Jersey, is soliciting bids for Bid #23-06, which seeks a tenant to lease approximately 630 square feet of public property at 100 Beach Avenue, known as the "Broadway Pavilion". The procurement is specifically for an eating establishment and refreshment stand, excluding restrooms, storage, and beach tag sales areas. Bidders must submit their electronic proposals through BidNet Direct by January 10, 2024, at 11:00 A.M., with a mandatory minimum annual rental requirement of $30,000 for the first year. The lease term is initially set for three years, with potential for two additional one-year renewal terms subject to City Council authorization. Prospective tenants must operate the establishment with mandatory daily hours from May 16 through October 4, between 10 AM and 8 PM, and will receive access to existing infrastructure including an industrial range hood, window security system, three-tub steel sink, hot water heater, fire suppression system, and air conditioning system.

The contract requires bidders to submit a 10% bid guarantee (not exceeding $20,000) with their proposal, with this amount being returnable to unsuccessful bidders. While no specific set-aside designations for disadvantaged enterprises are explicitly mentioned, bidders must comply with various state regulations including non-discrimination provisions, business registration requirements, and Iran investment activity disclosure. The lease payment structure is structured with 10% due upon bid submission and the remaining 90% payable in three installments on July 1, August 1, and September 1 of each lease year. No incumbent vendor is identified in the documentation, and the procurement appears open to qualified commercial food service operators who can meet the operational and financial requirements. The total potential contract value could range from $90,000 to $150,000 over the potential five-year period, depending on potential renewal terms and lease rate adjustments.