BY THE STATE OF NORTH CAROLINA The following specifications

REQUEST FOR PROPOSALS (RFP)
BY THE STATE OF NORTH CAROLINA
The following specifications must be considered and accepted prior to presenting a proposal to Sublease the areas
offered by the State of North Carolina for the operation of the Crosswinds Marina at Jordan Lake State Recreation
Area (the “Marina”). There will be a Sublease between the State of North Carolina, which is a Lessee from the U.S.
Army Corps of Engineers (USACE), and a Sublessee which will operate the Marina. The district commander,
USACE, Wilmington District is responsible for the contract administration of this Sublease on behalf of the federal
government and must approve the Sublease.
1.
Property to be Subleased
a. Location: The area included in the Sublease is within the boundaries of B. Everett Jordan Dam and
Reservoir at the Jordan Lake State Recreation Area, Chatham County, North Carolina, near the intersection of U.S.
64 and State Road 1008. The area covered by this Sublease is a portion of the same area covered by prime Lease
No. DAWC21-1-81-2603 between the Secretary of the Army and the State of North Carolina, and this Sublease is
subject to the terms and conditions of the prime Lease. The district commander, USACE, Wilmington District, will
honor such portions of the Sublease as necessary to ensure the continuation of commercial concession activities in
the event the prime Lease is terminated.
b. Description: The “Premises” consists of approximately 141.72 acres of land and approximately 24.95
acres of water area as depicted on Exhibit C attached hereto. Additional areas not included within the bounds of the
Premises, but desired to be subleased, must be approved in writing by the Sublessor and the USACE district
commander. Sublessee agrees to accept the Premises in its “as is” condition. The park superintendent may from
time to time designate additional areas that may be utilized for the operation of the Marina based on availability of
space and other factors that the park superintendent may consider. In the event Sublessor removes space from
Sublessee’s control due to construction and/or demolition, Sublessee shall be entitled to a reduction of rent. Such
reduction in rent shall be mutually agreed upon between Sublessor and Sublessee. The Sublessor, will have final
approval on any rent reduction. The Premises will include the two inner boat ramps and a lift station which were
installed by the USACE. All other improvements on the Premises, unless otherwise identified by Sublessor, the
park superintendent or USACE are owned by the current operator of the Marina. Sublessor has no control over
improvements owned by the current operator of the Marina and has no knowledge concerning their condition.
2.
Purpose
The Premises is to be Subleased for commercial concession purposes for the provision of facilities and services
adequate to meet public demand at reasonable prices.
Sublessee agrees 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.
a.
Sublessee must furnish as soon as possible after execution of the Sublease, the minimum facilities
and services set forth on Attachment III hereto.
b.
Sublessee may also provide the following facilities and services:
1. Sale of boats and boat accessories.
2.
3.
4.
5.
Transportation of passengers for hire.
Sale of food, refreshments, fishing tackle, bait and other supplies.
Guide services.
Emergency towing.
The Sublessee may provide additional facilities and services, consistent with the operation of the Marina,
only after obtaining written approval from the Sublessor and the district commander.
3.
Major Provisions
a. Form of Sublease: The successful proposer will become the Sublessee under a Sublease 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. The Marina is to be operated in a manner consistent
with the North Carolina General Statutes and rules and procedures governing N.C. Division of Parks
and Recreation facilities.
The Sublease will be subject to approval of the USACE and will not become effective until its consent
is indicated in writing. All parties to the Sublease are subject to all pertinent statutes, rules and
regulations of the USACE, both as written and as adopted before and during the term of the Sublease.
All agreements between the Sublessee and any Sub-sublessees shall include a provision stating their
subordination to the prime Lease and Sublease. This Sublease shall not be effective until approved by
the Secretary of the Army or his authorized representative.
b. Term: The term of the Sublease shall begin on the 15th day of May, 2012, and end on the 31st day of
August, 2031.
c. Assignment / Subletting / Joint and Several Liability:
The Sublessee shall neither transfer or assign the Sublease nor sub-Sublease the Premises or any part
thereof, nor grant any interest, privilege, or license whatsoever in connection with the Sublease without
permission in writing from the Sublessor. The provisions of any Sub-sublease shall be subject to prior
approval of the Sublessor and the USACE. The rental of boat slips, parking spaces, (renters), etc., are
not considered an assignment or subsubletting for the purposes of the Sublease, provided that no rental
period shall exceed the expiration date of the Sublease and rentals shall also be subject to termination if
Sublessor terminates the Sublease. All agreements, licenses, rentals or Sub-subleases shall terminate
prior to the expiration of the prime Lease between the State of North Carolina and the USACE, which
expires the 31st day of August, 2031. If more than one Sublessee is named in the Sublease, the
obligations and liability of all Sublessees so named shall be joint and several.
d.
Rental: During the term of the Sublease, the Sublessee shall pay as rent to the Division of Parks and
Recreation, the following minimum percentage on all gross income or revenues received or due to the
Sublessee from business transacted on the Premises as follows:
4%
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 Sublessor as rental under the Sublease, proposers are invited to submit
proposals which exceed the minimum percentage of gross annual income stated above. However,
proposers are advised that final selection of a Sublessee shall be made based on a number of factors,
the percentage of gross annual revenue being only one criterion.
The term gross revenue is defined as all monies received or due by Sublessee or his Sub-Sublessees
from rents, services, sales, repairs, sponsorships, vending machines, etc. for all business transacted on
the Premises.
Sublessee shall maintain accurate and complete books, records and financial statements, in accordance
with generally accepted accounting principles, for the calculation of rental as provided herein. All
gross revenue generated by the Sublessee in connection with the Sublease, regardless of its source, is
subject to the provisions of this section. All accounts of Sublessee related to the Premises in excess of
$25,000 in revenue, liabilities, or accounts receivable shall be itemized. Sublessee shall also be
responsible for all charges in connection with special services incurred at the request of, or on behalf of
Sublessee and Sublessee shall pay such charges to Sublessor upon receipt of an invoice for such
charges.
e. 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 (30 th)
day of the month for the preceding month’s obligations and shall be due and payable at the NC
Department of Environment and Natural Resources, Division of Parks and Recreation, 1615 Mail
Service Center, Raleigh, North Carolina 27699-1615.
f.
Rates and Prices: All rates and prices charged by the Sublessee or its Sub-Sublessees 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 Sublessor. Rates and prices charged by the Sublessee 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 community and on the B. Everett Jordan Lake.
The Sublessee shall post the schedule of rates and prices for services in a conspicuous place at the
Premises at all times.
g. Hours of Operation: Hours of Operation: During the period 15 April through 15 September, the
concession 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 Sublessor. During the
remainder of the calendar year, the above facilities shall be open a minimum of seven (7) hours each
day with scheduled hours to be approved by the Sublessor. This provision does not in any way relieve
the Sublessee 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 Sublessee. Hours of
operation are to be posted at the entrance to the Marina. In the offseason, agreed upon posted hours
shall be maintained.
h. Requirements of Law: The Sublessee 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 Sublease with regard
to construction, operations, sanitation, licenses or permits to do business and all other matters. The
Sublessee shall be responsible for water, effluent and waste management in accordance with federal,
state and local statutes, rules and ordinances. The Sublessee shall install, maintain, 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
Sublessee 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 Sublessee is fully responsible for any damages or liability.
Sublessee will obtain at its own expense all licenses, permits, and, if applicable, union and trade
organization clearances, required by any entity for use by Sublessee of the Premises. Sublessor
Sublessee shall be responsible for any alterations or improvements to the building structures, electrical
and water systems furnished by the Sublessor unless this requirement is waived by the Sublessor.
i.
Hunting Restrictions: The Sublessee 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.
j.
Alcoholic Beverages: The Sublessee 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 the N.C. Department of Environment and Natural Resources, Division of Parks and
Recreation. Further, there shall not be carried on or permitted upon the Premises any activity which
would constitute a nuisance or violate county ordinances. The Sublessee shall be responsible for the
activities of all tenants and guests on the Premises.
k. Timber: The Sublessee 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 Sublessor. The
Sublessee 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 Sublessor. Further, the
Sublessee is responsible for removing dangerous or hazardous trees and abating any hazardous
condition on the Premises.
l.
Navigation: There shall be no unreasonable interference with navigation by the exercise of the
privileges herein granted. No attempt shall be made by Sublessee to forbid or control the full and free
use by the public of the water areas of the B. Everett Jordan Reservoir. This Sublease is subject to all
existing and future easements granted, for roadways and utilities located, or to be located on the
Premises.
Sublessee is responsible for the recovery and rescue of any vehicles it rents for public use on Jordan
Lake. Sublessee is encouraged to consider providing rescue and recovery for customers and other
members of the public as a service for visitors and also as a potential source of additional revenue.
Quarterly inspections will be conducted, with possibly more frequent ones during the summer months, and
an annual inspection that will include participants from the USACE, North Carolina Department of
Environment and Natural Resources, Division of Parks and Recreation and Division of Water Quality,
North Carolina Department of Administration, State Construction Office and others as applicable.
m. Damages: The Sublessee shall be responsible for any damage that may be caused to Federal or State
property during the term of the sublease 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 United States
or the State damaged or destroyed during the term of the sublease shall be promptly repaired or replaced by
the Sublessee to the satisfaction of the Sublessor and the USACE district commander.
n. Discrimination Clause: The Sublease will contain a condition prohibiting discrimination against any
person or persons because of age, race, creed, color, sex, or national origin or sexual orientation in the
conduct of the operations on the Premises. Sublessee will comply with the Americans with Disabilities
Act and attendant Americans with Disabilities Act Accessibility Guidelines (ADAAG) published by
the Architectural and Transportation Barriers Compliance Board for all new construction and
alterations to the Premises.
o. Records and Reports: Pursuant to Exhibit A, hereinafter attached, the Sublessee shall maintain
complete and accurate records of all receipts and disbursements and such additional records as the
Sublessor deems necessary to adequately reflect the operations conducted on the Premises. The
Sublessee shall furnish to the Sublessor within sixty (60) (90) days after the end of each calendar year
independently audited and certified true copies of his a 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 sublease; 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
Sublessee involving the operations conducted on the Premises shall be subject to inspection and audit
at any time by the Sublessor or its duly authorized representatives. Upon Sublessor’s request, Sublesse
shall provide to the Sublessor copies of any records required to show compliance with any of the terms
of the Sublease, and to provide a customer lists with sufficient information to allow the Sublessor the
opportunity to communicate with users of the Marina to conduct satisfaction surveys, address concerns
raised by customers, and to otherwise communicate with customers.
p. Utility and Taxes: Sublessee shall provide reasonable water and 50-amp electrical power in the
portion(s) of the Premises required to have such utilities in place. Sublessor is not responsible for
disruptions in utility service. Sublessee is responsible for payment and contractual agreements with
utility providers. Sublessee 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
Sublessee on the Premises.
q. Insurance Coverages: During the term of the Sublease and for as long thereafter as may be necessary, the
Sublessee, at its sole cost and expense, shall provide commercial insurance of such type and with such
terms and limits as follows:
Property - Property Insurance, to include builders risk during construction, on replacement value of assets
on the Premises (including personal property). This should include coverage for replacement cost (R & R)
for direct physical loss due to flood and earthquake.
Automobile - Automobile Liability Insurance, to include coverage for liability, any auto. The minimum
limits shall be a Combined Single Limit of $1,000,000 each accident; $100,000 uninsured/under-insured
motorist; and $1,000 medical payment.
Commercial General Liability - General Liability Coverage, on a Comprehensive Broad Form in the
minimum amounts of $1,000,000/$2,000,000 Combined Single Limit (C.S.L.). In addition, there shall be
sub-limits of $5,000 premises medical payment any one person.
Marine Operators Legal Liability – a separate policy may be provided or added by endorsement to the
Commercial General Liability policy.
Umbrella or Excess Liability - an umbrella or excess liability policy may be used to provide the
required limits.
Workers’ Compensation - The Sublessee shall procure and maintain during the term of the Sublease
Workers’ Compensation Insurance as required by law for all of its employees. The Sublessee shall require
the sub-contractors similarly to provide Workers’ Compensation Insurance for all the latter's employees,
unless such employees are covered by the protection afforded by the contractor. All Worker’s
Compensation Insurance shall be procured and maintained at the State statutory limits.
Pollution - (If Applicable) Comprehensive Pollution Liability Coverage with the maximum available
limits. This coverage shall be effective upon the date required by the regulatory agency having jurisdiction
or the receipt of hazardous waste, whichever occurs first.
Requirements - Providing and maintaining adequate insurance coverage is a material obligation of the
Sublessee. All such insurance shall meet all legal requirements. Such insurance coverage must be
approved by Sublessor and shall be obtained from insurers authorized to provide such coverage in North
Carolina and have A.M. Best Company rating of A minus-VII or A+. The Sublessee shall at all times
comply with the terms of such insurance policies, and all requirements of the insurer under any of such
insurance policies, except as they may conflict with existing law, permit conditions or the Sublease. The
Sublessee shall promptly provide certificates of insurance to Sublessor. The limits of coverage under all
such insurance policies shall not be reduced or modified without prior approval of Sublessor and
compliance with all legal requirements. The limits of coverage under each insurance policy maintained by
the Sublessee shall not be interpreted as limiting the Sublessee's liability and obligations under the
Sublease. Such policies shall contain a provision that policies will not be cancelled, reduced in amount, or
coverage eliminated until at least thirty days after mailing written notice, by certified mail, return receipt
requested, to Sublessor.
r. Destruction of Premises: If any improvements on the Premises are destroyed by fire or other casualty
or be so damaged as to become wholly or partially unusable, Sublessee shall rebuild or repair same. In
such event, the Sublease shall remain in force, and Sublessee shall rebuild or repair the damaged
Premises within a reasonable time, subject to review and plan approval by the State Construction
Office.
s. Repairs or Improvements by Sublessor: Sublessor reserves the right from time to time at its own
expense to make such improvements, alterations, renovations, changes, and repairs in and about the
Premises, other than those herein provided for Sublessee to perform, as the Sublessor shall deem
desirable, and the decision as to any rental adjustments as a result of interference with the Sublessee’s
leasehold interest or for loss or damage to its business during such improvements, alterations,
renovations, changes, and repairs shall be at the sole discretion of the Sublessor. Sublessor shall at all
times have the right to erect such buildings or other structures, subject to plan review and approval by
the State Construction Office, on property adjoining or adjacent to the Premises as it shall see fit or
deem proper.
t. Improvements, Alterations by Sublessee: Sublessee shall not improve or alter the Premises in any
manner without the prior written consent of Sublessor. Before making any improvements or alterations
to the Premises, the Sublessee shall submit plans and designs to Sublessor for its review and
consideration. In the event that the plans and designs are disapproved, such improvements or alterations
shall be made only with such changes as may be required by Sublessor. All improvements or
alterations or fixtures erected or made on the Premises, excluding personal property, shall on
expiration or the earlier termination of the Sublease, belong to Sublessor without compensation
being paid to the Sublessee, provided however, that Sublessor shall have the option to require
Sublessee to remove any or all such improvements, alterations or fixtures at the Sublessee’s expense
and return the Premises to its former condition. All improvements allowed to remain shall be given to
Sublessor in good and safe condition. Floating docks and boat slips shall be classified as personal
property.
u. Sublessee’s Duty to Repair: All improvements, materials and equipment on the Premises not
considered personal property, shall, at the expiration or earlier termination of the Sublease, be returned
to Sublessor in as good and safe condition, reasonable wear and tear excepted, as same as they were
when Sublessee took possession under the Sublease. If any property of Sublessor is damaged or
destroyed by the Sublessee, its employees, agents, invitees, patrons, or other persons on the Premises,
the same shall be replaced, repaired or restored by the Sublessor at Sublessee’s expense and shall be
billed to Sublessee in a timeframe approved by the Sublessor. Documentation based upon existing
Sublessor inspections and a joint inspection involving Sublessor, Sublessee or their respective
representatives will be conducted prior to execution of the Sublease.
The Sublessee shall be responsible for any damage that may be caused to Federal and State property by
the activities of the Sublessee under this Sublease, and shall exercise due diligence in the protection of
all improvements, timber, and other property of the United States or Sublessor which may be located
on the Premises, against fire or damage from any and all other causes.
v. Title to Improvements: Title to all structures and improvements erected or placed upon the Premises
by the Sublessee shall remain in Sublessee during the term of the Sublease so long as Sublessee is not
in default. Title to improvements at the expiration or earlier termination of the sublease shall vest in
Sublessor as provided in Paragraph t. above.
w. Manner of Operation: Sublessee shall conduct its operations on the Premises in a lawful manner and
in keeping with generally recognized best business practices and shall not do or knowingly permit the
doing by anyone else of any act which would tend to discredit Jordan Lake State Recreation Area
and/or the North Carolina State Parks System and its employees and/or agents. The Sublessee must
follow the Operational Performance Standards set forth in Exhibit B, attached hereto and incorporated
herein by this reference. Alcoholic beverages, firearms, ammunition, drugs, explosives, stolen goods,
contraband, counterfeit merchandise, unlicensed merchandise, animals, or other items deemed to be
unsuitable by the park superintendent may not be sold or given away on the Premises.
x. Maintenance and Security: Sublessee shall keep the Premises in a clean and safe condition to the
satisfaction of the Sublessor. Sublessee is responsible for ensuring the removal and recovery of sunken
or damaged vessels in the Marina’s water-based operational area within seven (7) days of any such
sinking or damage. However, any damaged or sunken vessel which constitutes a hazard to navigation
or to water quality shall be immediately removed by Sublessee. Sublessee shall conform to the
construction, labor, safety, recycling and other regulatory standards and requirements dictated by
federal, state and local governmental authorities. Sublessee must comply with basic performance
standards outlined in said Exhibit B.
If the display of lights and signals on any structure authorized pursuant to the Sublease is not otherwise
provided for by law, such lights and signals as may be required or permitted by the Coast Guard, the
State or the USACE, and shall be installed and maintained by and at the expense of the Sublessee.
Sublessee shall be responsible for surveillance, management, oversight and security of the Premises
and any improvements, fixtures or items of personal property located thereon, including without
limitation, any boats, vehicles or trailers docked or stored at the Marina. No one, except the house
boats, Sublessee, its employees, tenants and accompanied guests are allowed to stay overnight on the
Premises without written consent from the Sublessor.
y. Indemnification: The Sublessor shall not be responsible for any contracts, agreements, or transactions
of Sublessee in connection with the sales of products, services and merchandise by Sublessee and Subsublessees, and shall not be liable for any damage growing out of said sales or services. The Sublessor
shall not be responsible for any damages to property or injuries to persons which may arise from or be
incident to the exercise of the privileges herein granted, or for damages to the property of the
Sublessee, or for damages to the property or injuries to the person of the Sublessee’s officers,
employees or others who may be on the Premises. Sublessee agrees to indemnify and hold harmless
the Sublessor, its officers, employees and agents, against any claims, damages, liabilities, obligations or
suits arising out of or in any manner connected with the use of the Premises by Sublessee, its patrons,
renters, assigns, invitees, contractors, Sub-sublessees, servants, employees or agents.
z. Right to Enter Premises: The right is hereby reserved to the lessor and Sublessor, its officers, agents,
and employees, to enter upon the Premises at any time, and for any purpose it deems appropriate. The
lessor may flood the Premises when necessary, and/or to make any other use thereof as may be
necessary in connection with the operation of the B. Everett Jordan Dam and Reservoir, and Sublessee
shall have no claim for damages of any character on account thereof against Sublessor or the United
States or any officer, agent, or employee thereof. Such entry by Sublessor shall not constitute an
eviction of Sublessee or a deprivation of any right of Sublessee and shall not alter the obligation of
Sublessee under the Sublease or create any right in Sublessee adverse to Sublessor.
aa. Default:
The occurrence of any of the following shall constitute a material default and breach of the Sublease by
Sublessee (an “Event of Default”):
Vacation / Abandonment. Sublessee ceases to occupy, abandons or vacates the Premises for the
purposes of the Sublease before the expiration of the term.
Failure to Pay. If Sublessee fails to pay any rent or any other monetary payment as and when due
where such failure continues for thirty (30) days after delivery of written notice thereof by Sublessor to
Sublessee.
Transfer. The assignment, subletting or other transfer or any attempted assignment, subletting or other
transfer, of the Sublease in violation of the terms thereof.
Violation of Environmental Laws. Any violation of applicable environmental or hazardous material
laws or regulations that are not satisfactorily cured as provided in the Sublease.
Failure to Perform. If Sublessee fails to perform any of Sublessee's nonmonetary obligations under
the Sublease, which failure remains uncured beyond any applicable cure period as provided in the
Sublease.
Other Defaults. If Sublessee fails to comply with any provision contained in the Sublease or any of
the rules commenced by or against it in any legal proceeding to declare it bankrupt, insolvent or unable
to pay its debts, or shall make a general assignment for the benefit of its creditors.
False Statement – The making or furnishing by Sublessee on any warranty, representation or
statement to Sublessor in connection with the Sublease, or any other agreement to which Sublessee and
Sublessor are parties, which is false or misleading in any material respect when made or furnished.
Unlawful Purpose – If Sublessee allows the Premises to be used for any unlawful purpose or for any
purpose that promotes acts of moral turpitude.
Unethical or Fraudulent Actions – If, in its sole discretion, Sublessor determines with regard to the
Sublease or to the Sublessee’s use and occupancy of the Premises, that Sublessee has: acted in an
unethical or fraudulent manner; or acted in a manner that would bring the Sublessor into disrepute; or
acted in a manner that is in violation of public policy or in a manner detrimental to the legitimate
interests of the Sublessor; or has refused Sublessor’s request for information or additional assurances
either with respect to the Sublessor’s reasonable belief that any of the foregoing defaults may have
occurred, or which may otherwise be required by law.
Supervision of Employees. If Sublessee fails to supervise or manage its employees, agents and
contractors to insure compliance with the terms and conditions of the Sublease and all laws, rules and
regulations.
bb. Ineligible Participants: No member of or delegate of Congress or employee of the N.C. Division of
Parks and Recreation and the USACE shall be admitted to any share or part of the Sublease or to any
benefits to arise therefrom. Violation of this provision will constitute a default by Sublessee and may
result in termination of the Sublease.
cc. Environmental Indemnification: Sublessee shall indemnify and hold harmless the Sublessor from
any and all claims, damages, fines, judgments, penalties, costs, liabilities or losses arising during or
after the Sublease term and arising as a result of any such environmental contamination by Sublessee or
its employees, agents, contractors, or invitees, renters or patrons.
dd. Smoking Restrictions: Sublessee must enforce any smoking restrictions which may apply to the
Premises during the term of the Sublease.
ee. Rules and Regulations: Sublessee shall post and make available to all marina uses at all times during
business hours, rules and regulations applicable to the Crosswinds Marina operation. Sublessee shall
also provide and maintain a website that contains said information. All such rules and regulations must
be approved, in advance, by the Sublessor.
ff. Expiration and Termination: All improvements, alterations or fixtures erected or made on the
Premises, excluding personal property, shall at the expiration or earlier termination of the
Sublease, belong to Sublessor without compensation being paid to Sublessee; provided however,
that Sublessor shall have the option to require Sublessee to remove any or all improvements,
alterations or fixtures at Sublessee’s expense and return the Premises to its original condition. If
personal property remains on the Premises after the expiration or earlier termination of the
Sublease, Sublessor shall have the option of retaining such personal property, without
compensation to Sublessee, or cause said personal property to be removed at Sublessee’s expense.
gg. Facilities: Sublessee shall provide the minimum facilities and services listed on Attachment III, as
soon after effective date of the Sublease as possible. Any structures or improvements added during the
term of the Sublease must be ADA compliant.
hh. Choice of Forum/Choice of Law: Any disputes arising out of this agreement shall be decided under
North Carolina law and under any applicable federal law, by a Court of competent jurisdiction located
in Raleigh, North Carolina.
4.
Instructions to Proposers
a. Proposal Form: Proposals must be made and submitted on the forms attached hereto as Attachment I and
Attachment II. Additional copies of this RFP and said proposal forms may be obtained from North Carolina
Department of Environment and Natural Resources, Division of State Parks and Recreation, 1615 Mail
Service Center, Raleigh, NC 27699-1615 or [email protected], Telephone Number (919) 715-7582
or the State Property Office website at: http://www.doa.state.nc.us/spo/ (look for “Request for Proposals”).
Facsimile or e-mailed proposals are not acceptable.
An optional pre-proposer’s conference will be held at 10:00 a.m. on September 22, 2011 at the
Department of Administration Building, 116 West Jones Street, Room 4038 Raleigh, North Carolina
27603 to answer questions from proposers pertaining to this RFP and the new sublease for the
Premises.
b. Submission of Proposals: It will be the duty of each proposer to see that their proposal is delivered by the
time and at the place prescribed in this RFP. Proposals received prior to the time of opening will be
securely kept, until the time for opening proposals. The officer whose duty it is to open them will decide
when the specified time has arrived, and no proposals received thereafter will be considered. No
responsibility will attach to an officer for the premature opening of a proposal through inadvertence or one
not properly addressed and marked. Facsimile or e-mailed proposals will not be considered.
c. Guaranty: A deposit in the form of a certified check or a cashier’s check payable to the State of North
Carolina in the amount of five percent (5%) of the amount proposed as the estimated annual rental must be
submitted with the completed proposal. In the event the successful proposer fails to provide a Performance
Guarantee under this Section 4.c., the deposit shall be forfeited to the State. Should the successful proposer
fail to execute the Sublease within thirty (30) days of receipt of the Sublease document from the Sublessor
the deposit shall be forfeited to the Sublessor unless otherwise agreed to in writing for reasons to be
determined at the sole discretion of the Sublessor. In the case of such failure, the State may then consider
other proposals that were received or seek other proposals at its discretion.
As a condition of the Sublease, the Sublessee shall provide Sublessor with a Performance Guarantee in the
amount proposed (estimated) as the first year’s annual rent. This Performance Guarantee must be written
by a reputable company, name Sublessor as the beneficiary, be satisfactory to the Sublessor, and guarantee
the faithful performance by the Sublessee of all the terms and conditions of the Sublease. An irrevocable
letter of credit, equal to the amount proposed (estimated) as the first year’s annual rent from an approved
banking institution located in North Carolina acceptable to the Sublessor, may be substituted for the
Performance Guarantee. The initial Performance Guarantee in the amount proposed (estimated) as the first
year’s annual rent shall be delivered to the Sublessor at the place, time and date determined by the State
Property Office of the Department of Administration. The guarantee document must be renewed annually
and be maintained in force during the entire Sublease term. The performance Guarantee for year two shall
be based on year one rent. The Performance Guarantee for subsequent years shall be based on rent for the
year preceding the year in question. The Performance Guarantee for subsequent years shall be delivered,
without the requirement of notice from the Sublessor, to the Jordan Lake State Recreation Area Office
preceding the Sublease year to which the Performance Guarantee is to apply. The requirement of a
Performance Guarantee shall be binding on the successors and permitted assigns of the Sublessee.
d. Opening of Proposals: At the time for the opening of proposals, their contents will be made open to public
inspection for the information of proposers, and other interested parties who may be present either in
person or by representative.
e. Procedure for Awarding Sublease:
Following the opening, the State will analyze the proposals received to determine whether any of the
proposals require clarification, and if so, the State will, by letter, request the specific clarification data
required. The State may require any proposer to furnish additional evidence of his financial condition and
in appropriate cases, of his ability to assume the obligations and responsibilities imposed by the terms and
conditions of the Sublease. Failure of a proposer to submit any of the above information, within such
reasonable time as may be prescribed by the State may be the basis for rejection of his proposal. However,
the State reserves the right to further negotiate any provision it deems to be in the public's interest.
The Sublease will be awarded to the proposer determined by the State, in its absolute discretion, to be the
most qualified based on criteria that may include, without limitation and in no order of importance:
financial strength; relevant experience; commercial reputation; percentage of gross revenue offered as rent;
ability to operate and maintain the Marina in a satisfactory manner; plan(s) to improve and further develop
the Marina and the capacity to maximize the use of the Premises, subject to the terms and conditions of the
Sublease, for the benefit of the public.
f.
Rejection of Proposals: The State reserves the right to reject any proposal for any reason deemed
warranted and may waive any informality in proposals received
g. Default: In the event of failure on the part of the successful proposer to enter into a Sublease within thirty
(30) days after the presentation of a draft Sublease for execution, or upon the failure of the successful
proposer to otherwise comply with the terms and conditions contained in this RFP, the State may declare
the proposer in default and retain its deposit as liquidated damages.
h. Warranty: The Premises shall be subleased “as is” and Sublessor makes no guaranty or warranty, either
expressed or implied, with respect to the condition of the Premises or its suitability for the purposes set
forth herein. Proposers are expected to examine the Premises and form their own conclusions as to its
suitability for the purposes herein expressed.
i.
Inspection of Property: The Premises is available for inspection by proposers; provided prior
arrangements for such inspections are made through the North Carolina Department of Environment and
Natural Resources, Division of Parks and Recreation, contact: Don Reuter, Telephone 919-715-7582 or Email: [email protected]; or via the main Division telephone number, 919-733-4181.
j.
Proposal Subject to These Terms: All proposals submitted shall be deemed to have been made with full
knowledge of all the terms, conditions, and requirements contained in this RFP and any addendums,
attachments or exhibits hereto.
k. Number of Proposals: Only one proposal will be accepted from each proposer.
l.
Format: All proposals must be made in the format set forth in this RFP.
m. Mailing proposals: Each proposal must be enclosed in a sealed envelope, marked and addressed as
follows:
Proposal for Sublease of Crosswinds Marina
Cutoff for receiving proposals: October 4, 2011at 4:00 p.m.
To: Director, State Property Office
1321 Mail Service Center (US mail)
116 W. Jones Street, Room 4055 (27603) (by express mail)
Raleigh, NC 27699-1321
NO FAXED OR E-MAILED PROPOSALS WILL BE ACCEPTED
ATTACHMENT 1
PROPOSAL
PROPOSAL FOR SUBLEASE OF CROSSWINDS MARINA SITE
To: Director of the State Property Office
1321 Mail Service Center (US mail)
116 W. Jones Street, Room 4055 (27603) (by express mail)
Raleigh, NC 27699-1321
In accordance with your Request for Proposals for Crosswinds Marina, dated September 12, 2011 for the
Sublease of a site for a marina at the B. Everett Jordan Lake in Chatham County, North Carolina, and subject to
all the conditions and requirements thereof, which, insofar as they relate to this proposal, are by this reference
made a part of it, I (we) hereby submit this proposal for the Sublease of Crosswinds Marina and hereby agree:
1. To pay annual rental of ____ % of gross revenues from all rents, services and sales received by the
Sublessee on the Subleased Premises. (4% minimum)
2.
A bid guarantee in the amount of $_______________ is enclosed.
3. To provide and furnish all the facilities and services listed in this RFP, unless the providing or furnishing of
a facility or service is waived, in writing, by the State Property Office.
4. To execute a Sublease containing the terms and conditions included in the Sublease form within thirty (30)
days after it is presented to me (us) by the State of North Carolina for execution.
5.
To furnish such additional information and data pertaining to my (our) qualifications and/or financial
position as the State Property Office may request.
ATTACHMENT II
STATEMENT OF QUALIFICATIONS OF SUBLESSEE
Applicants are required to reply to all questions. Use additional sheets if necessary.
1. Name and address of applicant (s).
2. If a partnership, give names and addresses of all partners; if a corporation, give names and addresses of all
officers, the name and address of the registered agent, and the State of incorporation; if a limited liability
company, give names and addresses of all managers / members, the name and address of the registered agent
and the State of organization. Any entity conducting business in North Carolina, if required by law to do so,
must be registered with the North Carolina Secretary of State within two (2) weeks of notification by the State
Property Office.
3. Have you examined the Premises and the subject facility?
4. Are you familiar with Federal, State, and local laws covering this type of operation?
5. Are you familiar with the business of operating such facilities?
6. State briefly your experience with this, or similar types of operations. (Use additional sheets if necessary.)
7. Give names, contact numbers and addresses of three references as to your experience in this type of operation.
(Name)
(Address)
(Name)
(Address)
(Name)
(Address)
8. Furnish your most recent financial statement. Financial and proprietary information should be marked
“Privileged and Confidential”. Information not so marked is subject to disclosure under the North Carolina
Public Records Act.
9. Give names, contact numbers and addresses of three references as to your financial responsibility.
(Name)
(Address)
(Name)
(Address)
(Name)
(Address)
10. Do you plan to personally supervise this operation?
11. If you plan to place operation under a local representative, give his name, address and previous experience in
this type of operation.
12. State, in detail, how the marina will be operated and maintained.
13. Give details concerning any contemplated future development plans for the marina. i.e. additional slips, etc.
14. Do you own adjacent land or have interest in other operations in the vicinity?
15. Give any additional information not covered above which you consider pertinent to the award of a
Sublease.
16. Include information about planned sustainable operational practices. These measures could include energy
reduction or use of alternative energy sources along with best management practices for fuel and marine service
and repair materials, recycling and other environmentally friendly action. This information will be considered
as part of the evaluation process.
The undersigned proposer(s) (add additional signature lines with dates as necessary) hereby certify that the above
information is true and accurate to the best of my (our) knowledge and belief.
By:
Date:
ATTACHMENT III
MINIMUM FACILITIES AND SERVICES TO BE FURNISHED
BY SUBLESEE AS SOON AS POSSIBLE AFTER EXECUTION OF A SUBLESSEE
FACILITIES AND SERVICES
1. Water System accessible to docks
2. Sewage Disposal System
3. Electrical System
4. Marine Repair Shop
5. Accessible Restrooms
6. Marina Office
7. Boat Dock Storage/Wet

30 slips – 36 feet with metered electric service

80 slips – 20-28 feet

110 slips – 20-24 feet

Courtesy slips – 10

Fuel dock and dockside sewage pump out – 6-8 slips
8. Dry Storage for 345 boats
9. Boat and Motor Rentals
10. Multiple Gas Pumps on Dock
11. Trailer Storage Area
12. Above Ground Fuel Storage Tanks and Associated Piping
Docks and boat slips shall be floating (or acceptable alternative) and anchored to shore with hinged ramps,
and to the lake bottom with large posts to allow for significant water level fluctuations.
EXHIBIT A
ACCOUNTING RECORDS AND PROCEDURES AND ANNUAL CERTIFIED AUDIT REPORTS
Section l.
Accounting Records
a.
Prior to the effective date of the Sublease or upon written notice, Sublessees and SubSublessees shall obtain the services of a Certified Public Accountant for the purpose of
developing an accounting system, including a system of internal controls covering all
business operations conducted upon the Premises in order to maintain accurate
financial records and books relating to the Marina operation. The accounting system
developed shall meet the approval of the Division of Parks and Recreation. This
approval will not be unreasonably withheld. All cash registers, receipt documents,
contacts and other means of supporting cash or income transaction shall meet the
specific approval of the Division of Parks and Recreation. The Sublessee and any SubSublessees shall bear all expenses related to development of an accounting and internal
control system including cash registers, receipt, forms and rental contract documents.
Miscellaneous accounts exceeding $25,000 must be itemized.
b. The system used to record income must be in sufficient detail to disclose the amount of
income derived from each category of business conducted on the Premises. A
complete income chart of accounts proposed for use and the rate of rental consideration
due from each source shall be submitted as a part of the accounting system study as set
out in (a) above.
Section 2.
Audit of Records
a. Each Sublessee and any sub-Sublessees shall provide for an annual examination of
Sublessee’s fiscal year of the Statement of Assets, Liabilities and Capital and Income
and Expenses performed by an independent Certified Public Accountant or firm of
Certified Public Accountants. The examination must include review of the system of
internal control and the accounting system of year-end closing procedures and other
supporting evidence necessary for the expression of an opinion on the financial
statements. Any and all weaknesses identified in internal control and accounting
procedures and related suggestions for the improvement as noted during the normal
review of internal control is to be documented in written memorandum. A statement
shall be made in the audit as to compliance or non-compliance with the provisions of
Sublease.
b. The audit report and memorandum must include the name of the Director of Parks and
Recreation in the address.
c. The audit and review of internal controls shall be performed annually as of the close of
business on the day corresponding with the end of the Sublessee’s fiscal year. The
audit report and accompanying memorandum must be submitted to Parks and
Recreation within sixty (60) (90) days following the close of the Sublessee’s fiscal
year.
d. Included as a part of the annual audit report shall be a schedule which sets out the
names and addresses of all participants in the Sublessees business operation, such as
partners, corporate officers, managers, members, stockholders or other entities.
e. The Sublessee and any sub-Sublessees shall bear all expenses connected with the audit
examinations outlined in this regulation.
f.
Sublessee will comply with any request for any compliance questionnaires, checklists,
etc. to periodically review compliance with applicable laws and regulations, including
the Code of Federal Regulations.
g. The Sublessor will conduct periodic surveys on marina customer satisfaction. The
Sublessee must keep up-to-date records regarding its customers. This information is to
be provided to Sublessor upon request.
EXHIBIT B
OPERATIONAL PERFORMANCE STANDARDS
Structural condition – The exterior of the buildings and other outdoor appurtenances must be in good physical
condition, well painted or otherwise treated to protect against deterioration and kept clean and in good repair.
Grounds – Grounds shall be well maintained, properly illuminated, uncluttered and free of litter, and debris. This
will include facility entrances, stairways, parking areas, trails, driveways, walkways and other areas for which the
Sublessee is responsible.
Garbage and Trash – The Sublessee shall provide an effective system for the collection and disposal of garbage and
recyclables on the Premises. Waste should not accumulate in trash containers to the point of overflowing. Trash
containers shall be conveniently located and in sufficient quantity to handle the needs of the Premises. Refuse shall
be stored in receptacles which are covered, waterproof and which comply with all relevant construction standards
(such as vermin proof) as specified by the Park Superintendent. State and/or county codes shall also be followed
where applicable.
Public Restrooms – Accessible public restrooms are required. Public toilet areas shall be clean, odorless, free of
litter, well illuminated, ventilated, and maintained. Toilet bowls sinks and urinals shall be clean, reasonably free of
stains and in proper operating condition. Toilet tissue, towels or air drying devices and soap shall be provided.
Walls, floors, ceilings, mirrors, waste receptacles, chairs and other furnishings shall be clean and well maintained.
Public Signs – Public signs for which the Sublessee is responsible must be appropriately located, accurate,
attractive and well maintained. Signs of a permanent nature shall be prepared in a professional manner, be
appropriate for the purpose they serve, and be approved by the Park Superintendent prior to installation. Signs
need to be consistent in appearance with State Park system signs.
Public and Other Areas – offices, storerooms, workrooms, ticket booths, and other space shall be accessible, clean,
properly illuminated and well maintained. Furnishings shall be appropriate and adequate for the visitors’ comfort.
Floors must be clean, free of litter and stains. Vinyl floor coverings must be clean, free of cracks, chips and worn
plates. Masonry tile or flagstone grouting must be in good repair and clean. Wood floors are to be clean and
waxed or otherwise sealed. Carpeting must be clean, reasonably free of stains and be in good repair. Walls and
ceilings are to be free of breaks and stains and have a fresh appearance. Windows must be clean and free of breaks.
Employee Performance – Employees who are flagrantly disrespectful of park regulations may be restricted from
entering the Jordan Lake State Recreation Area.
Employee Attitude - Each employee is to project a hospitable, friendly, helpful, positive attitude and be capable and
willing to answer visitors’ questions (about both job and general park information.)
Employee Appearance – The Sublessee shall be required to have its employees who come in direct contact with the
public, so far as practical, to wear a uniform, nameplate or other identifier (i.e. t-shirt or golf shirt) which has been
approved by the Park Superintendent. These uniforms or other approved items must clearly identify the wearer as
an employee of the Sublessee. Sublessee uniforms will not so closely resemble the park uniform or parts thereof
that it would be difficult for the public to distinguish between the concessionaire’s employees and park employees.
The Sublessee shall require its employees to exercise courtesy and consideration in their relations with the public
and present a neat, clean and otherwise attractive personal appearance. No offensive clothing or behavior on behalf
of a Sublessee’s employees will be permitted.
Operating Hours – The Marina shall be operated in accordance with the hours required by the Sublease and/or by
the Park Superintendent. Hours of operation shall be prominently displayed at the Premises in such a manner as to
be easily visible to the public.
Staffing –The Marina must be properly staffed so as to prevent undue delays in providing the services required
herein. In determining what constitutes undue delay, consideration shall be given to the kinds and types of service
being rendered and situations and conditions beyond the control of the Sublessee such as unanticipated influxes of
visitors, facility or equipment breakdown or sudden weather changes. The reasonableness of the delay, based on
the above, should be the determining factor.
Authorized Rates – All rates being charged shall not exceed those approved by the Park Superintendent. These
rates are to be verified against the specific approved service, portion size, quality, price or other such criteria.
Posting of Rates – Rates shall be prominently posted in sales areas (point of purchase) as necessary and in other
appropriated places as designated by the Park Superintendent. Posted dates must show the date of approval, a
signed statement by the Park Superintendent indicating his approval, the method of evaluation and notice to
customers who feel they have been excessively charged for goods and/or services furnished by the Sublessee.
Sales Verification – Sales must be accurately and legibly recorded. Receipts shall be given for purchases when
requested. Exception: Receipts must always be given for boat slip rentals.
Vending – Vending and ice machines and their locations shall be easily identified and conveniently located as
approved by the Park Superintendent. They should be clean, properly stocked and in good working condition.
Authorized Rate Increases – In addition to the General Operational Standard, the following shall apply. After a
proposed rate increase has been approved by the Park Superintendent as provided herein, the new rates must be
prominently posted in sales areas as provided herein a minimum of thirty (30) days prior to effective date of new
rates and all boat slip and storage tenants subject to the rate increase must be provided with a minimum of thirty
(30) days written notice prior to the effective date of the new rates.
Reservation Deposit and Refund Policy – Reservations, cancellations, and deposit refund policies shall be
reasonable, not overly restrictive, efficiently handled and be contained in appropriate advertising material, rate
schedules and/or operating agreements as approved by the Park Superintendent.
Rental Registers - Registers shall be up-to-date for all slips, moorings and dry storage areas and be available for
examination by authorized representatives of the Sublessor. The registers shall include name, address, date of
rental period, registration number (State & Local), description of boat and space number.
Order of Rental - The Sublessee shall rent buoy, slips, and dry storage spaces to eligible visitors on an equitable
basis.
Authorized Rentals-There shall be a standard written rental agreement form, approved by the Park Superintendent,
for each space that has been assigned to a tenant. No slip or mooring shall be rented, used or reserved in any way
by any persons for the purpose of the promotional display or sale of boats or boat accessories.
North Carolina Wildlife Resources Commission Boating Regulations - Sublessee must have on hand and/or posted
copies of the “Boat Owner’s Guide” which is published by the North Carolina Wildlife Resources Commission.
U.S. Coast Guard Regulations – The Sublessee must have on hand and/or posted a copy of U.S. Coast Guard
Boating regulations.
Rental Boat Equipment – All boats that are rented for visitor use shall be equipped as required by the U.S. Coast
Guard and North Carolina Wildlife Resources Commission rules and regulations.
Operating Instructions – The Sublessee is responsible to see that the renting operator is capable of handling the boat
being rented. Specific written and verbal operating instructions must be given to the operator to assure that he/she
is aware of the dos and don’ts and is able to properly handle the water craft and possible problems. Instructions and
information given are to include such things as climatic weather conditions of the area, what to do in an emergency,
etc. The operator’s liability must be fully explained to him before renting the equipment.
Rental Boat Condition – Each boat, prior to being rented, must be in good operating condition and clean. Motors
must be inspected, cleaned and serviced as required prior to being rented.
Identification – Each slip, mooring and dry storage space shall be numbered uniformly. Marking of rental buoys
must conform to the applicable Uniform State Waterway Marking System.
Maintenance – The dock’s surface, flotation and ramps must be in good repair, properly positioned and secured.
They must be sturdy, free of large cracks, uneven or broken planks, etc.
Courtesy Docks – Unless otherwise provided for in the Authorized Rate Schedule, courtesy docks are not to be
rented. They must be conveniently located to the entire operation. These docks must be equipped with adequate
cleats and bumper protection. Use of such docks shall not exceed the time limit as specified by the Park
Superintendent.
Dock Carts – If required, there shall be enough available so as to handle normal peak season demands with only a
brief waiting period. Dock carts must be kept in good repair.
Boat Sewage Pump Out – Sewage pump out stations that are the Sublessee’s responsibility must always be clean,
well maintained and emptied as required. Use adequate signage to advertise the pump out service and to remind
boaters that B. Everett Jordan Lake is a no discharge area. Also have directions on pump out procedures for
patrons as well on the importance of using pump outs. Sewage pump out methods and equipment must meet all
applicable, Federal, State and local Environmental Regulations.
Dock Accessories – Cleats are to be properly placed and secured for use at each slip area. There shall be no loose
or missing cleats. Each rental space must have proper bumpers and be in good condition. Only approved bumper
material may be used. Bumpers must be kept in a usable and effective condition. There may be no loose or
missing bumpers.
Docks – Railings are to be provided at dangerous or highly traveled locations so as to protect and safeguard the
visitors’ well being (i.e. gang plank walkways down to floating docks). Railings must be in good repair and sturdy
to support visitor use.
Utility Lines – All utility lines and connections must be maintained in good operable condition. Electrical outlets
must be covered U.L. approved, marine type. Utilities should be located at a reasonable distance and easily
accessible to each slip as appropriate, and must meet all stated and county codes.
Fuel Dock – The area must be kept clean and spills must be taken care of promptly. Appropriate fuel spill
equipment must be in good repair and accessible for deployment. The facility must have a spill contingency plan
and all employees must be familiar with it. Dock must be operated in safe manner. A no smoking sign and an All
boat motors and electrical equipment on board must be turned off while fueling boat or similar sign must be posted.
Use automatic shutoffs on fuel dispensers. Fuel dispensing nozzles shall be of the automatic-closing type without a
latch-open device. Fueling facilities and equipment must meet all applicable Federal, State and local Environmental
Regulations. The park superintendent may review and evaluate the number and placement of fire extinguishers and
require changes.
Boat Maintenance
The in-water boat painting of hulls is prohibited and biodegradable cleaners are to be provided in the concession
building. Scraping, sandblasting and painting must be done over dry land with adequate containment devices to
prevent entry of waste materials into the reservoir. Boat maintenance activities must meet all applicable Federal,
State and local Environmental Regulations.
Safety
All marina operations must comply with the fire and safety standards set forth in NFPA 303.
Crosswinds Marina
24.95 ACRES +/-
141.72 ACRES +/-
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