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Home My WebLink AboutconcessionProposed Terms for Concession L. Location. An approximately 25,000 square foot portion of the property located at the current site of the fountain and its surrounding plaza located in Bayfront Park (the "Site"). 2. Use. SLH shall use the Site solely for the purpose of operating a tethered helium balloon ride and directly related ancillary uses. Those directly -related ancillary uses shall be limited to private parties, group outings, the display of advertising copy on the balloon, the gondola and potential concession stands, selling SkyLift related merchandise and memorabilia and selling non-alcoholic beverages and snacks at retail to SLH's patrons. 3. Condition of the Site. The Site shall be delivered to SLH in an "as is" condition and SLH shall be solely responsible for preparing the Site according to its required specifications at its sole cost. 4. Term and Commencement Date. The Term of the Agreement shall be five (5) years and shall begin on the date SLH officially opens the SkyLift for business (the "Commencement Date"). SLH shall have two (2) options for two (2) additional two (2) year periods (collectively, the "Option Terms") on the same terms and conditions. 5. Payment Terms. SLH shall pay to BPMT (a) a guaranteed minimum annual payment during each year of the Agreement, which shall be TWO HUNDRED SEVENTY THOUSAND DOLLARS AND NO CENTS ($270,000.00) (the "Guaranteed Minimum Annual Payment"), which shall be paid in twelve equal monthly installments of TWENTY TWO THOUSAND FIVE HUNDRED DOLLARS AND NO CENTS ($22,500.00) each, plus any applicable sales and use tax on or before the first day of each month, beginning on the Commencement Date and (b) in addition to the Guaranteed Minimum Annual Payment referenced above, SLH shall pay to BPMT (i) ONE DOLLAR AND NO CENTS ($1.00) for each ticket sold and (ii) five percent (5%) of the gross annual advertising revenues resulting directly from any sponsorship agreements pertaining only to advertisements placed on the balloon envelope. 5. Charity Events. SLH shall provide BPMT with the gross revenues from (a) four (4) events for the benefit of BPMT and (b) two (2) events for the benefit of community or charitable organizations selected by BPMT. 7. BPMT Advertising. At all times during which revenue paying advertisers are not being displayed on the gondola, SLH shall affix and display banners advertising the Bayfront Park at no charge to BPMT. When describing its location in advertisements or media releases, SLH shall at all times refer to the Bayfront Park and shall refer to it in all print materials including tickets. 8. Utilities and Service Charges. SLH shall pay all water, sewer and electricity bills and other utilities and services supplied to the Site by a governmental unit or a utility company. 9. Repairs and Maintenance. SLH shall make and pay for all repairs to the Site and the Improvements and all appurtenances, equipment and systems serving the Site and shall replace all things as is necessary to keep same in a good state of repair and good working order. 10. Insurance. SLH shall procure and maintain in effect during the entire Term and Option Terms (a) Commercial General Liability Insurance, including products and completed operation coverage in SLH's name with a per occurrence limit and general aggregate limit of not less than $1,000,000.00. Consultant may provide the coverage requested herein through the use of a primary liability policy or through a combination of primary liability and umbrella liability policies, (b) Commercial Umbrella Liability Insurance in SLH's name with occurrence aggregate limits of no less than $2,000,000.00. Each policy shall include BPMT and its officers, directors, employees, agents and consultants, jointly and severally with respect to any coverage afforded by such policies. 11. Minority Employment/Hiring of Personnel. All hiring of personnel shall comply with the City of Miami's goals as to local preferences and minority composition. Further, SLH shall comply with the City's Minority and Women Business Affairs and Procurement Programs. 12. Design of Facilities. The final design of the facility shall comply with all regulatory codes, including those relating to the Americans with Disabilities Act and shall further be subject to the good faith review and approval of BPMT. 13. Continuous Operation. SLH agrees to operate during the entire Term and Option Term, with minimum operating hours, which shall be 9:00 a.m. to 11:00 p.m. on Sunday through Wednesday and 9:00 a.m. to 12:00 a.m. on Thursday through Saturdays and weekdays before nationally recognized holidays. These hours may be extended at the sole discretion of SLH as long as they comply with the hours authorized by I3PMT and shall be subject to further exemptions to be determined. Financial Projections* Annual Revenue Customers - Retail - Adults** Customers - Retail - Children** Customers - Wholesale** (Tour Co.'s, Cruise L.'s) Advertising Opportunity - Envelope Events (Corporate Parties, Weddings, etc.) Other Revenues (Merchandise) Total Revenue Annual Expenses Concession Payment Ticket Revenue Sharing Charity Event Expenses General Manager Operations Manager Assistant Manager Ride Conductor Compensation Additional Staff Helium (annually) Insurance Security Equipment Amortization over 5 years Marketing/Advertising Cost of goods sold Dividend Payment (Subscription) 12% p.a, Balloon Financing p.a. (2 years)*** Administrative Expenses Miscellaneous/Unexpected Expenses Total Expenses Gross Profit (before taxes) # of Patrons Rate p. Person 35,000 15,000 25,000 $ 14.00 $ 7.00 $ 11.00 Total $490,000 $105,000 $275,000 $800,000 $240,000 $150,000 $2,060,000 Quantity Cost Total Cost 12 $ 22,500 $270,000 1 $ 75,000 $ 75,000 6 $ 5,000 $ 30,000 1 $ 70,000 $ 70,000 1 $ 50,000 $ 50,000 1 $ 35,000 $ 35,000 4 $ 25,000 $100,000 4 $ 20,000 $ 80,000 1 $ 35,000 $ 35,000 1 $150,000 $150,000 1 $ 50,000 $ 50,000 I $175,000 $175,000 I $ 50,000 $ 50,000 1 $ 75,000 $ 75,000 1 $ 72,000 $ 72,000 1 $ I3,400 $160,800 1 $ 40,000 $ 40,000 1 $ 50,000 $ 50,000 $1,567,800 S 492,200 A ride will typically Iast fifteen (15) minutes. That amounts to four (4) flights an hour, day and night. In a ten (10) hour day and approximately thirty (30) passengers per ride, the SkyLift could carry up to one thousand two hundred (1200) people a day. Data of other balloons has shown that $ I4.00 per passenger is a realistic amount for admission.. Further, the projections below are based on oral and written information provided by both other balloon operators and the manufacturer of the SkyLift. * These are projections for the first fiscal year of the SkyLift. The Company expects the Gross Profit to increase by approximately ten percent (10%) annually for a period of five (5) years due to increased marketing revenues. ** Based on weather research conducted by the Company, the management estimates that the SkyLift will be able to operate an average of 280 days of the year due to adverse weather conditions. The numbers above are based on transporting only an average of 268 patrons a day. In the event the SkyLift can operate on more than 280 days during any given year and is able to attract in excess of 268 patrons a day when operating, these numbers will increase proportionally. *** This payment will not be due until the SkyLift is operational and will terminate 24 months thereafter at which time the balloon will be paid in full and the Gross Profit will increase to $ 653,000.00 according to the above projections and not taking into account the ten percent (10%) increases assumed under *.