HomeMy WebLinkAboutExhibit 10MILDRED AND CLAUDE PEPPER
BAYFRONT PARK
MANAGEMENT TRUST
301 N. BISCAYNE BOULEVARD, MIAMI, FL 33132
TELEPHONE: (305)358-7550 FAX: (305) 358.1211
June 16, 2005
TO: The Bayfr nt Park M a-g ment Trust
FROM: Tim /malt' Director.
Re: Reso. 05-032, Tethered Balloon Concession License Agreement
Attached please find a copy of the proposed Concession License Agreement for
the Tethered Balloon operation in Bayfront Park. We will be reviewing and discussing
this contract at the June 27, 2005, Trust meeting, at which time staff will seek Trust
approval. Included in this packet is a Term Sheet that hi -lights some of the more
important points in the document, but I encourage you to review the entire contract.
Should you have any questions or comments regarding this matter, I am available at your
convenience to discuss them.
Thank you, in advance, for your assistance with this matter,
Enc.
Cc: file
Term Sheet: Tethered Balloon 6/9/05
Concession License Agreement
Revocable at -will by Trust
Term 2.1-- 2.3: Five years + (2) two additional (2) year options subject to Trust approval
Concession Area Design 3.4: Agrees to use Trust architect
Installation of Modifications 3.5: All modifications subject to the approval of the
Trust's executive director
Concessionaire Responsibility 3.6: Shall maintain at it sole expense costs of operating
concession.
Operation of Concession 3.7:
Concession shall operate 365 days each year subject
to limitations set down in the agreement, though
nothing contained in the agreement requires the
operation of the concession during inclement
weather.
Concession Closure for Trust Purposes:
Concessionaire may be entitled to use fee
abatements for any four hour closure within
a 24 hour period subsequent to three
closures during the concession year.
3.12 Utilities: Concessionaire responsible for all utility costs.
Fee 4.1: $22,900/mo
$270,000/year (with increases based on the previous 12 month consumer
price index)
S l/ticket to 100,000
$1.50/ticket 100,000+
Sponsorship revenue to Trust: 0 - $1,000,000 = 5%
$1,000,000+ =15%
Concessionaire shall be authorized to distribute 3,000 complimentary tickets annually,
inclusive of the number of Trust's tickets.
Payments 4.2:
Concession fee due upon commencement date and within seven
business days of calendar month end, with each prior month's
Ticket fee.
BAYFRONT PARK MANAGEMENT TRUST
301 North Biscayne Boulevard Miami, FL 33132 (305) 358-7550
Trust Ticket 4.5: 500 complimentary tickets
Event Fee 5.2:
Load-in/Load-out Fee 5.3:
Trust Event Approval 5.4:
$750/day for event area
$40/hr, not to exceed $400/day
90 days notice
Security 9.1: Security shall consist of a deposit and an Instrument.
Deposit 9.2: Shall be $67,500. $33,750 shall be deposited with the Trust 5 days
after City Commission approval. Remainder shall be deposited with
the Trust 5 days prior to placement of any equipment on property. Deposit
shall be treated as liquidated damages.
Instrument 9.3:
Within 60 days of execution, but prior to entering onto the
property, Concessionaire shall provide to the Trust, in a form
acceptable to the Trust and City of Miami's Risk Administrator, an
instrument in an amount equal to $270,000 for use in the event of
monetary defaults, which shall increase annually to the amount of
the Concession Fee.
Replenishment of Security 9.4:
Return of Security 9.5:
Liquidated Damages 9.6:
In the event that the Trust applies the Security, the
Concessionaire with 5 days shall replenish the
amount of the Security.
Security is returned to Concessionaire at completion of
term as long as Concession Area is in same or better
condition as at commencement.
In the event the Agreement is terminated for cause the
Trust shall be entitled to liquidated damages in the first
year of $270,000, and decreased by 20% each year. During
Option term, liquidated damages retained during the first
year shall be $138,240 and $110,592 during the second
year.
Books and Records 12.1: Trust shall have right to examine Concessionaire's books
and records as they relate to the Concession.
Modifications 13.1: Concessionaire shall make no modifications to the facility without
the written consent of the Executive Director.
Indemnification 14.1: Concessionaire shall hold harmless the Indeminities, which
shall include the Trust, City and Army Corps.
B AY F R O N T PARK MANAGEMENT TRUST
301 North Biscayne Boulevard Miami, FL 33132 (305) 358-7550
Insurance 14.2:
Prior to coming on property the Concessionaire shall provide
insurance acceptable to the Trust and the City Risk
Administrator and shall maintain.
Non -Assignment 16.1: Concession shall not be assigned.
Directional Signage 17.1: 5 directional signs in park 2'x 2'
Promotional Signage 17.2: 3 promotional signs in park 2' x 2'
Marquee Sign 17.3: Subject to a separate agreement.
Restoration of Park 22.4: At expiration of Term, or earlier termination,
Concessionaire shall return the facilities to the Trust in the
condition in which received.
BAYFRONT PARK MANAGEMENT TRUST
301 North Biscayne Boulevard Miami, FL 33132 {305) 358-7550