A RESOLUTION AUTHORIZING THE MANAGER TO EXECUTE A CONCESSION AGREEMENT WITH ALOHA II, INC. (VERTICAL URGE) FOR OPERATION OF THE HOMESTEAD PARK SKATE PARK AND BATTING CAGE FACILITIES (2006-04-24/R-10a)

 

WHEREAS, the Town of Chapel Hill has constructed a skate park and batting cage at its Homestead Park; and

 

WHEREAS, a concessionaire operated the facility from November 1999 until April 2005; and

 

WHEREAS, the Council has determined that the best way to operate the facility is through the work of a concessionaire; and

 

WHEREAS, Aloha II, Inc. (Vertical Urge) has experience operating a skate park facility and has presented a workable business plan;

 

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council authorizes the Manager to execute a concession agreement with Aloha II, Inc. (Vertical Urge) to operate the Chapel Hill Skate Park with the following terms and conditions:

  1. The Town would make a number of repairs to the facility including:

    • Replacement of skatelite skating surfaces on the ramps.
    • Repair of smaller stand alone ramps.
    • Fence repairs.
    • Fix drainage problems.
    • Repair viewing stand.
    • Paint and repair the concession building.
    • Make landscape improvements.
  2. Aloha II, Inc. (Vertical Urge) would have exclusive concession rights for a period of one year from the date of execution of the Agreement. They would also have the option to extend the terms of the Agreement for two (2) additional consecutive one (1) year periods.

  3. The following payment Schedule based on total revenues would be used

    1. If total revenue collected by Vertical Urge from 12 months of operations for the term of this agreement is $60,000 or less the Town of Chapel Hill shall make a $12,000 supplemental payment to Vertical Urge.
    2. Once Vertical Urge has collected a minimum of $60,000 within each 12 month term of the agreement the supplemental payment will be reduced by $600 for every additional $1,000 in revenue collected by Vertical Urge until such supplemental payment to Vertical Urge is $0.
    3. Once total revenues collected by Vertical Urge reach $80,000 during the term of the agreement, Vertical Urge shall pay the Town of Chapel Hill $600 for each $1,000 in revenue collected by Vertical Urge until total revenues reach $89,000.
    4. Once total revenues collected by Vertical Urge during the term of the agreement reaches $89,000, Vertical Urge shall pay the Town of Chapel Hill at a rate of 6 percent per $1,000 revenue collected by Vertical Urge.
  4. Maintenance: The Town is responsible for all extraordinary maintenance, renovations, and replacement of equipment. Aloha II, Inc. (Vertical Urge) is responsible for routine maintenance and repair of equipment and cleaning of the concession/restroom building.
  5. Operation of Facilities: Vertical Urge is responsible for all necessary staffing, programming, and operations of the facilities. Vertical Urge shall operate the facilities in such a manner that would not offend a reasonable person.
  6. Fiscal Oversight: Vertical Urge is required to cooperate fully with the Town as it relates to any reasonable request by the Town to seek fiscal oversight of the operations. Specifically the Council requires that Vertical Urge post a prominent sign asking patrons to contact the Town in the event that they are not offered a receipt from any sale, provide duplicate cash register tapes on a weekly basis, provide copies of sales tax reports, provide monthly sales summaries, and provide participation numbers.

This the 24th day of April, 2006