REQUEST FOR INFORMATION AND PROPOSALS (RFIP)
BY THE STATE OF NORTH CAROLINA
The following specifications must be considered and accepted prior to presenting a proposal to lease the areas offered by the State of North Carolina for the operation of the Carolina Beach State Park Marina at Carolina Beach State Park (the “Marina”).
1. Property to be leased
a. Location: The area included in the lease is within the boundaries of Carolina Beach State Park, Carolina Beach, North Carolina, where State Park Road terminates at the Cape Fear River.
b. Description: The “Premises” consists of approximately 10 acres of land and water area as depicted on Exhibit C attached hereto. Additional areas not included within the bounds of the Premises, but desired to be leased, must be approved in writing by the State. Proposer agrees to accept the Premises in its “as is” condition. The Premises will include: three (3) individual docks w/ fifty-four (54) wet slips, one (1) fuel dock w/ gasoline/diesel dispensers and marine waste pump out system, one (1) sales area, one (1) Men’s & Women’s restroom & shower facility, one (1) marina lounge, one (1) laundry room, four (4) storage, stock and mechanical rooms, one (1) 9,000 gallon (6,000 gasoline/3,000 diesel) above ground fuel tank, one (1) two lane boat ramp, and one (1) wood shed. The “Inventory of Marina Facilities” is set forth in Exhibit D attached hereto.
The proposer will be authorized to exercise such control over use of the leased water area as may be reasonable and necessary in the interest of public safety and security of property.
2. Purpose
The Premises are to be leased for commercial concession purposes for the provision of facilities and services adequate to meet public demand at reasonable prices.
Proposer shall agree that the Premises shall be used only for the business of operating the Marina and State-approved recreational facility for use by the general public.
Proposer shall provide the following facilities and services:
a) Facilities for mooring and docking privately-owned boats
b) Sale of fuel, oil and marine supplies
c) Sale of food, refreshments, fishing tackle, bait and other supplies
d) Boats for hire, touring and guide services
e) Transportation of passengers for hire
f) Emergency towing
The Proposer may provide additional facilities and services, consistent with the operation of the Marina, only after obtaining written approval from the State.
3. Lease
a. Form: The successful proposer, upon receipt of all approvals required by law, compliance with the terms of this RFIP and the execution of a lease agreement by the State of North Carolina, will become the Lessee under a lease with the State of North Carolina which will be subject to any existing easements for utilities, roads or other purposes on or crossing the Premises and adjoining waters.
b. Basic Lease Provisions:
1) Term: The term of the lease shall be 10-15 years with one 5-year renewal option.
2) Rental: During the term of the lease, the Proposer shall pay as rent to the State, through the NC Department of Environment and Natural Resources, Division of Parks and Recreation (“DPR”), the following minimum percentage on all gross income or revenues received or due to the proposer from business transacted on the Premises as follows:
8 % of gross annual revenue from all rents, services and sales.
Although the above-referenced percentage constitutes the minimum percentage of gross annual revenue which shall be paid to the State as rental under the lease, proposers are invited to submit proposals, as part of this competitive bid process, which exceed the minimum percentage of gross annual income stated above. However, proposers are advised that final selection of a Proposer shall be made based on all factors, the percentage of gross annual revenue being only one criterion.
The term gross revenue is defined as all monies received or due by Proposer or his sublessees from rents, services, sales, sponsorships, vending machines, etc. for all business transacted on the Premises.
3) Method of Payment: Rent is calculated by applying the agreed upon contractual percentages of gross revenue in business categories for each calendar month and is due and payable on the thirtieth (30th) day of the month for the preceding month’s obligations.
4) Rates and Prices: All rates and prices charged by the Proposer for boat slips and docking fees, food and all services furnished or sold to the public shall be subject to the prior approval of the State. Rates and prices charged by the Proposer for boat slips and docking fees, food and services furnished or sold to the public shall be reasonable and comparable to rates and prices charged for similar goods and services by others in the local community along Snow’s Cut, the Cape Fear River and the Intracoastal Waterway. The Proposer shall post the schedule of rates and prices for services in a conspicuous place at the Premises at all times.
5) Hours of Operation: During the period April 15 through September 15, the sales and operations building and gasoline pumping facilities shall be open for business a minimum of ten (10) hours each day between 8 a.m. and 6 p.m., unless otherwise specified by the State. During the remainder of the calendar year, the above facilities shall be open a minimum of seven (7) hours each day, unless otherwise specified by DPR, with scheduled hours to be approved by DPR and maintained by Proposer. This provision does not in any way relieve the Proposer of the requirement to furnish 24-hour management and responsibility of the Premises on a year-round basis nor does it preclude longer hours of operation if desired by the Proposer. Hours of operation are to be posted at the entrance to the Marina. In the off-season, posted hours acceptable to DPR shall be maintained.
6) Operational Requirements: The Marina is to be operated in a manner consistent with the North Carolina General Statutes and rules and procedures governing NC Division of Parks and Recreation facilities.
c. Other Lease Provisions:
1) Assignment / Subletting / Joint and Several Liability: Any sublease or grant of any interest, privilege, or license whatsoever in connection with the lease must be approved in advance and in writing by the State. The provisions of any sublease shall be subject to prior approval of the State. The rental of boat slips, parking passes, etc., are not considered an assignment or subletting for the purposes of the lease, provided that no rental period shall exceed the expiration date of the lease.
The Proposer shall not hinder, restrict or impede any existing contracts or leases nor provide services currently being offered by existing vendors at Carolina Beach State Park. Upon completion of the current contracts, the marina vendor is eligible to bid on RFIP’s for existing or new services.
2) Requirements of Law: The Proposer shall comply with all Federal laws and regulations and with all applicable laws, ordinances, and regulations of the State, county, and municipality wherein the Premises are located and existing and as promulgated throughout the term of the lease with regard to construction, operations, sanitation, licenses or permits to do business and all other matters. The Proposer shall be responsible for water, effluent and waste management in accordance with Federal, State and local statutes, rules and ordinances. The Proposer shall maintain, repair, replace (if needed) and operate as stipulated in the “Clean Vessel Act of 1992,” adequate pump-out facilities for removal of waste from holding tanks on watercraft and shall make said facilities available to the general public. The Proposer shall be responsible for ensuring that no untreated wastewater is discharged directly into the environment, including water, on the Premises. In the event that untreated wastewater is discharged illegally, the Proposer is fully responsible for any damages or liability. The Proposer shall maintain bi-annual certification as a NC Clean Marina and comply with the best management practices of the NC Clean Marina Program. NC Clean Marina is a program within the Division of Coastal Management.
Proposer will obtain at its own expense all governmental licenses, permits, and, if applicable, union and trade organization clearances, required for its use of the Premises. The Proposer shall be responsible for any alterations or improvements to the building structures, electrical and water systems furnished by the State unless this requirement is waived by the State. Any such alteration or improvement must be approved in advance and in writing by the State.
3) Hunting Restrictions: The Proposer shall not hunt or trap or allow hunting or trapping on the Premises without written permission from the Park Superintendent if necessary to control invasive species and/or other destructive animals that are causing facility damage, endangering structural integrity, etc.
4) Alcoholic Beverages: The Proposer shall not sell nor permit to be sold on the Premises beer, wine or other intoxicating liquors or use the Premises or permit them to be used for any illegal or immoral business or purpose. Possession of beer or other intoxicating liquors will only be allowed with the consent of DPR. Further, there shall not be carried on or permitted upon the Premises any activity which would constitute a nuisance or violate local government ordinances. The Proposer shall be responsible for the activities of all tenants and guests on the Premises.
5) Timber/Mining: The Proposer shall cut no timber, conduct no mining operations, remove no sand, gravel, or kindred substances from the ground, distribute no waste of any kind, nor in any manner substantially change the contour or condition of the Premises, except as may be authorized by the State. The Proposer shall keep the Premises in good order and in a clean, sanitary, and safe condition, and shall at all times maintain all structures and equipment in a condition satisfactory to the State. Further, the Proposer is responsible for removing dangerous or hazardous trees and abating any hazardous condition on the Premises.
6) Navigation: There shall be no unreasonable interference with navigation by the exercise of the privileges herein granted. No attempt shall be made by Proposer to forbid or control the full and free use by the public of the water areas of the Cape Fear River and the Intracoastal Waterway. The lease shall be subject to all existing and future easements granted, for roadways and utilities located, or to be located on the Premises.
Proposer will be responsible for the recovery and rescue of any watercraft it rents for public use. Proposer is encouraged to consider providing rescue and recovery for customers and other members of the public as a service and also as a potential source of additional revenue.
Inspections of the Premises by DPR will be conducted quarterly, or more frequently if needed. An annual inspection of the Premises will also be conducted by State agencies that may include, without limitation: North Carolina Department of Environment and Natural Resources and its Divisions of Parks and Recreation, Coastal Management and Water Quality, North Carolina Department of Insurance; and North Carolina Department of Administration, State Construction Office.
7) Damages: The Proposer shall be responsible for any damage that may be caused to State property during the term of the lease and shall exercise due diligence in the protection of all property located on the Premises against fire or damage from any and all causes. Any property of the State damaged or destroyed during the term of the lease shall be promptly repaired or replaced by the Proposer to the satisfaction of the State.
8) Records and Reports: Pursuant to Exhibit A, hereinafter attached, the Proposer shall maintain complete and accurate records of all receipts and disbursements and such additional records as the State deems necessary to adequately reflect the operations conducted on the Premises. The Proposer shall furnish to the State within sixty (60) days after the end of each calendar year independently audited and certified true copies of his 1) balance sheet; 2) profit and loss statement; 3) statement of total compensation (salaries, wages, bonuses and dividends) paid from the operator authorized by the lease; and 4) schedule of gross revenues showing the agreed upon gross revenue categories and percentages used to calculate rent. (See Exhibit A). All accounts and records of the Proposer involving the operations conducted on the Premises shall be subject to inspection and audit at any time by the State or its duly authorized representatives. Upon State’s request, Proposer shall provide to the State copies of any records required to show compliance with any of the terms of the lease, and to provide a customer lists with sufficient information to allow the State the opportunity to communicate with users of the Marina to conduct satisfaction surveys, address concerns raised by customers, and to otherwise communicate with customers. In addition the Proposer and any Proposers under the lease are required to maintain and report annually on PCI compliance for credit card use to protect consumer privacy.
9) Utility and Taxes: Proposer shall provide reasonable water and electrical power in the portion(s) of the Premises required to have such utilities in place. State is not responsible for disruptions in utility service. Proposer is responsible for payment and contractual agreements with utility providers. Proposer agrees and covenants to pay any ad valorem, personal property taxes, business taxes, assessments or public charges on the Premises or any improvements constructed by Proposer on the Premises.