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A CONCESSION LEASE AGREEMENT

A Concession Lease Agreement covers many areas. It contains: Definitions, Terms of Agreement, Operational Condition, Special Conditions, Legal Requirements.

Each part of the Concession Lease Agreement is important to your operation and the success of your concession. Be sure you know what will be required before you bid on any concession, and be sure you will be able to meet the obligations if you commit to it.In order to give you some idea of what you will find in a Concession Lease Agreement, we are providing the following general information that we hope will help you decide on whether or not the operation of a State Park concession should be in your future.

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Length of a Concession Lease Agreement A Concession Lease Agreement is generally awarded for a maximum period of 4 years. In some instances, agreements are awarded for a lesser number of years. This is based on circumstances as determined by the Concession and Lease Management Office that warrants a shorter period of award. These agreements can be awarded directly by the Concession and Lease Management Office.

Depending on the type of concession operation and if substantial capital development (permanent improvements or development that become the property of the INDR at the termination of the agreement) is required by the concessionaire it is possible to award up to a 25 year agreement, if approval is granted by the Governor's Office.

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Rental Payments
There are generally two different types of rental payments received from concessions: 1) Annual Lump Sum Payment only; 2) Annual Percentage Sum of the total adjusted gross receipts.

Selecting which of the above listed methods is used is determined by the Concession and Lease Management Office prior to the solicitation of competitive bids and is based on the financial history of the involved concession.

Rental payments are required on a time schedule that is contained in the concession lease agreement. It may differ based on the type of concession operation and/or the operating season.

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Leased Premises
Each Concession Lease Agreement specifies the area of the park that is designated as the leased premises. A concessionaire is only permitted to operate and conduct business under the terms and conditions of the Concession Lease Agreement in the facilities or areas specified.

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Maintenance of Leased Premises
The Concession Lease Agreement will specify the type of maintenance work to be done and whether it is required to be completed by the concessionaire or the park site staff. This can range from daily litter pick-up to grass mowing, to building repairs, etc.

Some Concession Lease Agreements require the concessionaire to undertake all maintenance on their leased premises while others may allow for maintenance of certain items by both concessionaire and park staff.

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Required Submittals
Each concessionaire, based on the terms and conditions of the Concession Lease Agreement is required to submit certain payments, forms, financial statements, and other items on a timely basis. Failure to submit any of the required items in a timely fashion may result in the cancellation of the lease agreement.

  • Rental Payment - The rental payment is required by specified dates, as listed in the Concession Lease Agreement. Failure to do so will result in the assessing of an interest charge of 10% imposed on late payments.
  • Annual Financial Statement - Each concession operation is required to submit an Annual Concession Financial Statement by the due date listed in their agreement. This provides the Concession and Lease Management Office with a financial statement of the concessionaire's operating season.
  • Liability Insurance Policy - Concession Lease Agreements require the concessionaire to carry general premises and product liability insurance with the IDNR listed as additional insured. Proof of said insurance is required before a concessionaire can begin operation.
  • Other Documents or Payments as required by the Specific Concession Lease Agreement - It is the concessionaire's responsibility to meet all due dates and deadlines for submitting the required information, reports, and payments. The involved park staff is not required to send notices or reminders that items are due.
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Concession Lease Termination
If a concessionaire wishes to terminate an existing agreement, they may do so by notifying the Site Superintendent or Concession and Lease Management Office, in writing, according to the Concession Lease Agreement.

The Concession and Lease Management Office will not terminate a Concession Lease Agreement unless: 1) it becomes necessary due to the continued lack of concessionaire's compliance with the agreement terms and conditions; 2) it becomes necessary to close park facilities for safety or economic reasons; or 3) there are unforeseen circumstances that dictate a closure.

Pricing
A concessionaire may charge prices and rates that are reasonable and fair. A copy of all prices and rates must be submitted annually to the involved park office. The Concession and Lease Management Office must approve all charges, prior to opening each season.

Non-exclusive Rights
A concessionaire does not have exclusive rights to all concession operations within a particular
state park, but rather, only to the specific operation at the specific location as described in the Concession Lease Agreement.

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Concession Operation
A concessionaire is required to operate at specific times and on specific days as listed in the Concession Lease Agreement.

Any early closure or reduction in operating days or hours must be approved by the Site Superintendent.

If a concessionaire wishes to operate on additional days or additional hours, approval must also be requested from the local Site Superintendent.

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Back to Concessions & Lease Management

Lodges

 Becoming a Concessionaire
 Concessions - Location & Types
 Lease Agreement
 Concession Agreements - Other types
 Office of Realty & Environmental Planning

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