REQUEST FOR PROPOSAL - TERMINAL RESTAURANT ALBERT WHITTED AIRPORT

Transcription

1 REQUEST FOR PROPOSAL - TERMINAL RESTAURANT ALBERT WHITTED AIRPORT 1

2 TABLE OF CONTENTS SECTION I: BACKGROUND AND GENERAL INFORMATION SECTION II: RESTAURANT SERVICES SECTION III: LEASEHOLD SECTION IV: SCOPE SECTION V: PROPOSAL CONTENTS SECTION VI: PROPOSAL SUBMITTAL SECTION VII: SELECTION CRITERIA APPENDIX A APPENDIX B APPENDIX C APPENDIX D DOWNTOWN MAP TERMINAL LAYOUT 1 st & 2 nd FLOOR UNFINISHED SPACE PICTURES GRAND PRIX LEASE LANGUAGE 2

3 SECTION I: BACKGROUND AND GENERAL INFORMATION A. PURPOSE The City of St Petersburg ( City ) is issuing this Request For Proposal ( RFP ) for qualified parties ( Respondent(s) ) interested in providing restaurant operation and management services, and leasing and occupying space to support these services in the new terminal building at the Albert Whitted Airport ( Airport ). B. AIRPORT LOCATION The Airport is located on the shores of Tampa Bay in downtown St. Petersburg, in the County of Pinellas, in the State of Florida. The Airport is owned by the City of St. Petersburg and not only provides aviation services to the residents of St. Petersburg but also greater Pinellas County and the entire Tampa-St. Petersburg-Clearwater Metropolitan area. The City of St. Petersburg is the fourth largest city in Florida and its downtown has been recognized by Southern Development magazine as the Most Livable Downtown in the Southeast. In 2007, the City was also named a Top 10 Community for Creative Class (by Southern Business & Development) and Best Community for Young People (by America s Promise The Alliance for Youth). St. Petersburg has set new construction records for four of the last five years, with a construction record of over $635 Million in fiscal year Over $1.3 billion in new construction has occurred in the downtown area since 2001, including new hotels, office space, multiple high-rise condominiums and 3

4 apartments, hospitals, retail, museums, performing arts facilities, new parks and other development. In addition to its proximity to downtown businesses, the Airport is directly south of St. Petersburg s performing arts center, the Mahaffey Theater at the Progress Energy Center for the Arts, which averaged 158,000± guests per year for 2007 & 2008, and directly east of the University of South Florida St. Petersburg Campus ( USF ), which has annual enrollment of approximately 5,000 students. USF has completed a major expansion recently, including new on-campus dorms located less than a block from the airport. USF is currently in planning stages for additional facilities. Also within a few blocks of the airport are many museums and tourist landmarks including the St. Petersburg Pier, Salvador Dali Museum and St. Petersburg Museum of History. Tropicana Field, home of Major League Baseball s Tampa Bay Rays, and Progress Energy Field. (See Appendix A ). It is a few miles drive to the area s world-famous gulf beaches. The Salvador Dali Museum is finalizing plans to build a new $30 million museum on the Progress Energy Center for the Arts site and will start construction in winter of The new museum will be located across the street from the airport terminal. In addition, SRI International broke ground on their new 30,000 square foot marine science research and development building at the Port of St. Petersburg (located immediately south of Albert Whitted Airport) in October of For more information, go to and C. AREA DEMOGRAPHICS Within 5 miles of the Airport are 85,015 households with an estimated average household income of $50,553. The area s aggregate household consumer spending is $3.3 billion including a $350 million marked for purchases of food away from home. The downtown is home to 33,634 daytime employees and 13,717 residents, with numerous projects and plans underway that will add more than 3,500 new residential units. The 2004 traffic count for Interstate 175 which feeds onto 5 th Avenue South from Interstate 275 is 37,000 daily. Recent restaurant developments in St. Petersburg include Outback, Carrabba s, Tijuana Flats, Chipotle Mexican Grill, Lee Roy Selmon s, Parkshore Grill, and Ceviche s. Population figures for the Airport s service area: St Petersburg, 242,238 (Florida s fourth largest city); Pinellas County, 921,482; greater Tampa Bay region, 2,395,997. For more information, go to D. AIRPORT HISTORY In the early 1900s, dredging operations to deepen the Port of St. Petersburg were completed with the spoilage being hydraulically pumped onto a nearby marsh area. On 4

5 this man-made fill, Albert Whitted Municipal Airport was born. Development of the Airport started with a narrow shell runway lying east and west, approximately 1,800 feet long. With the additional fill area, construction was begun to lengthen the east-west runway and install a northeast-southwest runway and a short temporary north-south landing strip. In 1923, Albert Whitted Airport was named in honor of Lieutenant Albert Whitted, a St. Petersburg native, who lost his life in a seaplane accident in Pensacola while in aviation service for the United States in World War I. For more information on the Airport s history, go to E. AIRPORT INVENTORY Albert Whitted Airport is classified as a general aviation reliever airport for nearby Tampa International and St. Petersburg-Clearwater International airports. The Airport is served by two runways, runway 7/25 (3,677 feet by 75 feet) and runway 18/36 (2,864 feet by 150 feet) and adjacent parallel taxiways. Airport property currently encompasses 191 acres, of which 110 acres are part of the functional airport. The remaining 81 acres are used for non-aviation purposes or are submerged land. The Airport has approximately 185 aircraft based on the field and conducts approximately 80,000 annual operations. The Airport s control tower is operational 365 days per year, open from 7:00 a.m. to 9:00 p.m. daily. Several commercial and specialized aviation businesses operate on Airport property, including a full-service fixed-base operator, flight school, aircraft charter and rental, aircraft upholstery, banner towing, aircraft/helicopter maintenance, aircraft sales, internet/retail pilot supply and aerial photography. Additionally, many operators are based at the Airport to support their specialized missions including the Florida Highway Patrol, Civil Air Patrol, Bayflite (medical evacuation), and local news flight operations. For more information, go to F. INTERMODAL GENERAL AVIATION CENTER The City recently completed construction of the Intermodal General Aviation Center (IGAC). The IGAC includes a ±10,600 sq/ft terminal building which is located in the northwest corner of the Airport property at the intersection of 1 st Street South & 5 th Avenue South. In addition the IGAC contains a 64-space parking lot and a 12,200 sq/yd aircraft parking ramp. The City has the space available to add approximately another 90 vehicular spaces to the immediate east of the terminal building. The City leases space on the 1 st floor to a Fixed base Operator, rental car company, and other aviation and retail related businesses. The entire second floor will be dedicated to the full-service restaurant to provide sit-down meal service to both the aviation community using the Airport and the residents, tourists and business community that thrive in downtown St. Petersburg. The Restaurant Operator has the ability to include space on the 1 st floor for office and storage needs. 5

6 SECTION II: TERMINAL RESTAURANT SERVICES A. DESIRED SERVICES It is desired that the prospective restaurant operator will 1.) Offer lunch and dinner dining services at a minimum. Breakfast service is a desired option. 2.) Act as the custodian to oversee the booking and collection of rents for usage of the multi-purpose room. 3.) Supply catering for private functions and special events held in the multipurpose room or on other areas of the terminal. B. HOURS OF OPERATION It is desired that the Restaurant Operator will operate the facility 7 days a week, 365 days a year. Hours of operation will meet the needs of the facility, and shall include, but not be limited to, the services as set forth in Section IIA. C. OPTIONAL SERVICES If the Restaurant Operator desires to provide alcohol related-products as either a part of the sit-down meal service or as an independent bar/lounge set-up in conjunction with the main restaurant, it should be disclosed so in the proposal. Any restaurant operator proposing to serve alcohol will be required to obtain the proper license as required by State law. 6

7 SECTION III: LEASEHOLD The majority of the second floor of the terminal building will be dedicated to the restaurant operation. A. LEASEHOLD FACILITIES (See Appendix B & C ) 1. PRIMARY SPACE: a. The 2 nd floor interior space contains ±5,095 sq/ft of space for dining, kitchen, and restaurant lobby space. Included in this space is the ±599 sq/ft multipurpose room. b. The restaurant leasehold also includes a dedicated service elevator. c. The exterior 2 nd floor space contains a ±495 sq/ft, covered patio to provide dedicated exterior dining space on the northeast side of the building. d. There is also a ±385 sq/ft covered patio space with the multipurpose room on the north side of the building. 2. JOINT USE SPACE: a. The 2 nd floor elevator lobby, restrooms and connecting hallway contain ±374 sq/ft of joint-use space. The Restaurant Operator will have maintenance and cleaning responsibilities in this area, however this space is not calculated into the base rent. b. The remaining patio space will be classified as joint-use space. The Restaurant Operator may provide limited services in the exterior, joint-use areas, but may not obstruct or deny the public s usage of these areas. The Restaurant Operator will have the opportunity to furnish this area and serve restaurant and the general public alike. 3. OPTIONAL SPACE: a. There is optional interior space located on the 1 st floor which contains ±354 sq/ft of space that could be used for office, cooler/freezer, storage and/or other back of house operations. B. MULTIPURPOSE ROOM 1. The Multi-Purpose room is being located at the Airport to provide the City, Airport tenants, and the restaurant with flexible space that can be used for a 7

8 variety of functions including meetings/presentations, banquets, private parties and other like functions. 2. The Restaurant Operator will act as the custodian of the room and may rent out the facility to host private parties or other functions for customers. The City will have the right to use the room for City functions, several times per year, at no cost to the City. The exact number of times the City will use the room will be determined in the final lease with the Restaurant Operator. C. RENT 1. Base Rent. The desired base rent is $10.00 per sq/ft for the interior space and $5.00 per sq/ft for exterior (patio) space. 2. Percentage Rent. In addition to the Base Rent, the City desires that the Restaurant Operator also pay a percentage rent of gross sales. The preferred methodology for the percentage rent is through the establishment of a negotiated percentage of gross sales after an established Breakpoint is reached. For example, when the cumulative gross sales exceed the Breakpoint in any Lease Year, the Tenant shall pay monthly, in addition to the monthly Base Rent, a specified percentage of its Sales in excess of the Breakpoint ( Percentage Rent ). 3. Rent Escalation. Base rent will be subject to an annual rent escalation, tied to the increase in the Consumer Price Index as published by the Bureau of Labor Statistics, U.S. Department of Labor D. TENANT FIT-OUT The majority of the leasehold space has been finished in a manner to allow the restaurant operator the flexibility to fit-out the space to suit their operation and design theme (see Appendix C ). The City has installed and finished-out the restroom facilities, passenger & freight elevators as well as most of the amenities for the multipurpose room. In addition, the City installed the ceiling, lighting and HVAC systems for the entire 2 nd floor. The Restaurant Operator will be responsible for installing partition walls (to separate kitchen from dining area), flooring, kitchen appliances/food preparation systems (i.e. stoves, ovens, refrigerators, exhaust fans, etc.), furniture, decor and additional fire suppression systems as required for the kitchen and/or food preparation areas. The City understands the financial commitment required from a restaurant operator to complete the fit-out of a new restaurant space. Toward that end, the City may consider different alternatives to achieve tenant fit-out including participation in some of the fixed improvement costs (depending on the nature of the improvement); rent credits; or extended lease terms. The City Charter limits lease terms on airport property to twenty-five (25) years without a voter referendum. 8

9 If the Restaurant Operator desires to make changes to City installed facilities, these items will be considered on a case-by-case basis and may be restricted, at the sole discretion of the City. All work must be accomplished with licensed contractors and meet all Local, State and/or Federal codes that may apply. E. MAINTENANCE RESPONSIBILITIES The Restaurant Operator will be responsible for the regular maintenance and upkeep of the restaurant leasehold and joint use areas on the 2 nd floor.. This includes maintaining of the Furniture, Fixtures & Equipment (F, F & E) the general appearance and cleaning of the 1 st and 2 nd floor leasehold space, including the 2 nd floor restrooms, multipurpose room, HVAC, exterior patio areas and elevators. The City will be responsible for maintaining the infrastructure and exterior of the building, 1 st Floor Common area and 1 st Floor restrooms and the elevator operating maintenance. F. UTILITIES The Restaurant Operator is responsible for all utilities on the 2 nd floor including, but not limited to, electrical, telephone, water, sewer, grease (removal & disposal), gas, waste disposal, cable and/or any other type of utility not listed. The City will assess a monthly utility use fee if the restaurant operator desires to lease the optional 1 st floor space. Any installation of a cooler/freezer or other major appliances in the optional 1 st floor space will be required to be re-wired into the 2 nd floor electrical service at the cost of the Restaurant Operator. G. LEASEHOLD ADJUSTMENT The City reserves the right to adjust the area leased by the restaurant operator. In such instances, if rent is based on the area being leased, the rent will be adjusted in direct proportion to the area adjustment. H. GRAND PRIX OF ST. PETERSBURG The City sponsors an annual grand prix automotive race which includes using portions of the airport as racecourse, paddock area and the main viewing grandstands. Any agreement negotiated between the restaurant operator and the City is subject to the Grand Prix Race Agreement and all rights (exclusive rights and other rights) and authority granted thereunder, including but not limited to rights related to use of the Airport. The City will work with the Restaurant Operator to minimize impacts; 9

10 however the Restaurant Operator should expect a significant impact to operations, including the possibility of a temporary closure of the terminal facility. However, the Restaurant Operator will have the option of negotiating with the Grand Prix organization to temporarily rent the use of its space and/or provide restaurant/catering services during the Grand Prix event. Appendix D contains a copy of the Grand Prix language as it will appear in the negotiated restaurant lease. 10

11 SECTION IV: SCOPE A. MINIMUM QUALIFICATIONS To be eligible for consideration for this RFP, the Respondent must meet the following minimum qualifications. 1. A minimum of five years prior experience in the operation/management of a fullservice restaurant. 2. Financial capability to outfit, equip and operate the restaurant. B. TERM OF AGREEMENT The City will negotiate the term of the agreement based on the financial and capital commitment of the selected Restaurant Operator. However, in no case can the lease term exceed twenty-five (25) years without a voter referendum due to City Charter restrictions. C. GENERAL OBLIGATIONS The successful Respondent will be responsible for complying with all terms and conditions contained within a negotiated lease with the City, in addition to all other Local, State and/or Federal rules which may apply. The successful Responder will be responsible for obtaining and maintaining all required permits, licenses or other like requirements for the operation of a restaurant in the state of Florida. The successful Respondent must be an active legal entity, licensed to do business in the State of Florida, within fifteen (15) days of an approval of a lease by City Council. D. INSURANCE Prior to the commencement of restaurant operations, the successful respondent will be responsible for acquiring the appropriate insurance coverage as required by the lease and generally addressed as follows: 1. Commercial General Liability Policy written by a company that is authorized and licensed to conduct business in the State of Florida and approved by the City. The insurance company shall be at minimum A rated by A.M. Best (or similar), approved by the City s Risk Management Department. The required insurance shall not be provided by a Risk Retention Group or Pool. 2. Minimum Limits 11

12 a. Bodily Injury and Property Damage Liability i. $1,000,000 per occurrence ii. $2,000,000 aggregate b. Workers Compensation and Employers Liability i. Workers Compensation: Per State of Florida Statutory requirements employers Liability: $100,000 each accident: $100,000 per employee for Disease and $500,000 for all diseases. c. Fire Legal Liability with limit of $100,000. d. Liquor Liability Insurance with $1,000,000 minimum limit. (If applicable). e. Personal Property Insurance for all risks of loss of tenant owned Contents at this location. 3. All policies must include the City of St. Petersburg, it s officers, agents, employees and volunteers as Additional Insureds under its policies and must be endorsed to the applicable policy. 4. The insurance coverage and limits are set at the sole discretion of the City of St Petersburg and are subject to change or revision as the need arises. 12

13 SECTION V: PROPOSAL CONTENTS Prospective Respondents are requested to propose providing airport restaurant operation and management service. To assure consistency, proposals must conform to the following format: Cover Letter Table of Contents Sections: A. Experience and Capacity of Responder and Qualifications of Personnel B. Proposal C. Financial Projections D. Credit References E. Operational References F. Financial Statements G. Physical Requirements The following is what is expected in each of the major sections: A. EXPERIENCE AND CAPACITY OF RESPONDER AND QUALIFICATIONS OF PERSONNEL This section should contain an introduction and the Responder s background of your firm, demonstrated financial status (including gross annual sales for the current year and net earnings or loss for the most current year), and the ability to finance the service operations. Also demonstrate technical expertise in food and beverage service management operations and maintain a high standard of appearance and operation. Include a current list of names of officers of the corporation. B. PROPOSAL This section should contain the proposed structure s quality, size, theme or concept, architectural style, seating capacity, room and area configurations, and personnel. Also, identify the nature and extent of the food, beverage, and related services to be offered to the general public (i.e. menu ). 13

14 C. FINANCIAL PROJECTIONS This section should contain projected revenues/expenses for the restaurant operations, including the projected revenue to the City. Revenues should be based upon the rental formula as specified in Section III (C.) of this RFP or alternate rental formula as proposed by the Respondent. The City is strongly committed to a pricing policy that maintains a competitive and reasonable structure. Provide five and ten year-projected revenues for the lease period. D. CREDIT REFERENCES This section should contain the names, address, and phone numbers of three credit references that the City may contact to obtain information on your credit standing. E. OPERATIONAL REFERENCES This section should contain a list of clients for whom you have conducted a similar service within the past five years. Include the entity name, contact person, telephone number, and a brief description of the service. F. FINANCIAL STATEMENTS This section should contain at least the past two years of audited financial statements including, but not limited to, a company balance sheet and income statement. G. PHYSICAL REQUIREMENTS This section should describe other physical needs above and beyond the leasehold space described in Section III. Examples of other needs may include parking space requirements, refuse disposal needs, exterior signage or any other extraordinary need that can not be met within the described leasehold. 14

15 SECTION VI: PROPOSAL SUBMITTAL A. SUBMITTAL PACKAGE Respondents shall submit one (1) unbound and six (6) bound copies of its proposal. B. DELIVERY Proposals shall be delivered in hand or by mail, and marked: PROPOSAL FOR RESTAURANT OPERATOR AT ALBERT WHITTED AIRPORT CITY OF ST. PETERSBURG Economic Development Department ATTN: Sophia M. Sorolis One 4 th Street North Ninth Floor St. Petersburg, Fl or by mail to Post Office Box 2842 St. Petersburg, Fl C. SCHEDULE Issue Request for Proposal... December 4, 2008 Legal Notice... December 7, 2008 Pre-Bid Conference (Optional)... January 9, 2009 Time: 10 a.m. Location: Airport Terminal, 2 nd Floor Last day for questions by Respondents on... January 16, 2009 Proposals due on... February 27, 2009 D. DEADLINE Proposals must be submitted to the City of St Petersburg, Economic Development Department, Attn. Sophia M. Sorolis, One 4 th Street North Ninth Floor, St. Petersburg, Fl not later than 3:00 P.M., local time, February 27, Proposals received after the specified time and date will NOT be considered. The City will not be responsible for failure of the United States Post Office, private courier, or any other delivery means to deliver a proposal to the appointed place at the specified time in order to be considered. 15

16 E. SELECTED RESPONDERS Selected Respondents may be selected from the qualified proposals and shall be notified by mail. The selected responders may be required to submit additional details. F. CITY RESERVATIONS The City reserves the right to: 1. Modify or otherwise vary the terms and conditions of this RFP at any time, including but not limited to, deadlines for submission, schedules and proposal requirements. 2. Waive irregularities in the proposals. 3. Reject or refuse any or all proposals, or to cancel and withdraw this RFP at any time. 4. Negotiate with any or all Respondents in order to obtain terms most beneficial to the City. 5. Accept the proposal(s), which, in the City s sole and absolute discretion, best serves the interests of the City. G. CITY CONTACT INFORMATION Those Respondents and parties interested in submitting a proposal may contact Economic Development Department, Attn. Sophia M. Sorolis, City of St Petersburg, Municipal Services Center, One Fourth Street North (9 th Floor), St. Petersburg, Florida or by mail to Post Office Box 2842, St. Petersburg, Florida or by telephone (727) or by to sophia.sorolis@stpete.org (Note: To assure a timely response, all first time s should be preceded with a phone call to avoid being caught in the City s SPAM blocking software). PLEASE VISIT FOR NEWS AND INFORMATION ON THIS RFP. H. COLLUSION More than one proposal from the same Respondent under the same or different names will not be considered. Reasonable grounds for believing that a Respondent is submitting on more than one proposal will cause the rejection of all proposals in which the 16

17 Respondent is involved. Those proposals will be rejected if there is reason for believing that collusion exists among Respondents, and no participant in such collusion will be considered in any future proposals for the operation of a restaurant for the next six months following the date of the Proposal submission. I. DISCLAIMER The estimate of Tenant Space is believed to be reliable; however, Respondents should rely on their own experts for counsel in this regard. All proposals submitted to the City are subject to public disclosure pursuant to Chapter 119, Florida Statutes. J. BINDING OFFER A Respondent s submittal shall remain valid for a period of 120 days following the Proposal deadline and will be considered to a binding offer to perform the required services, assuming all terms are satisfactorily negotiated. The submission of a Proposal shall be taken as prima facie evidence that the Respondent has familiarized itself with the contents of this RFP. K. REQUESTS FOR INTERPREPATION OR CLARIFICATION No interpretation or clarification of the RFP will be made to a Respondent orally. If discrepancies or omissions are found by any prospective Respondent or there is doubt as to the true meaning of any part of the RFP, a written request for clarification or interpretation must be submitted in writing, addressed to the City of St Petersburg Economic Development Department, Attn. Sophia M. Sorolis, One 4 th Street North Ninth Floor, St. Petersburg, Fl, Telefax and request for interpretations will be accepted for this project. The telefax number is (727) and the address is sophia.sorolis@stpete.org. It is the responsibility of the Respondent to verify the City received telefax and requests. To be given consideration, such requests must be received by 3:00 PM local time, Friday, January 16, All such interpretations and any supplemental instructions will be in the form of a written addendum which, if issued, will be posted to the RFP website. It is the responsibility of the Respondent to check the RFP website for any updates. Failure of the Respondent to check the website for updates for any such addendum or interpretation shall not relieve said Respondent from any obligation contained therein. L. PUBLIC ENTITY CRIMES A person or affiliate who has been placed on the convicted vendor list following a conviction for a public entity crime may not submit a bid on a contract to provide any goods or services to a public entity, may not submit a bid on a contract with a public 17

18 entity for the construction or repair of a public building or public work, may not submit bids on leases of real property to a public entity, may not be awarded or perform work as a contractor, supplier, subcontractor, or consultant under a contract with any public entity, and may not transact business with any public entity in excess of the threshold amount provided in Section , for CATEGORY TWO for a period of 36 months from the date of being placed on the convicted vendor list. 18

19 SECTION VII: SELECTION CRITERIA A. SELECTION CRITERIA At a minimum, a proposal must include all those items as specified in Section V of this RFP. Proposals will be evaluated based on the following criteria, Respondent s ability to provide the services as listed in Section II of this RFP. Financial Qualifications Prior restaurant operation/management experience Services provided: menu, meal selection, hours of operation, catering, etc. Overall economic return to the City. Rents & Fees Employment generation 19

20 APPENDIX A DOWNTOWN MAP 20

21 APPENDIX B nd TERMINAL LAYOUT (2 Floor) 21

22 APPENDIX B CONTINUED TERMINAL LAYOUT (1 st Floor) 22

23 APPENDIX C INTERIOR RESTAURANT SPACE PICTURES Main Dining & East Dining Multipurpose Room Main Entry Stairs Looking North into Main Dining

24 APPENDIX C CONTINUED RESTAURANT SPACE PICTURES East Dining Patio Kitchen Area (West Side) East Dining Area Inside Multipurpose Room

25 GRAND PRIX RACE EVENTS: APPENDIX D GRAND PRIX LEASE LANGUAGE A. Grand Prix Race Agreement: This Lease is subject to current and future agreements with third parties for the conduct of racing events in downtown St. Petersburg (any such agreement hereinafter referred to as Grand Prix Race Agreement ) and all rights (exclusive rights and other rights) and authority granted thereunder, including but not limited to rights related to use of the Airport. Without limiting the generality of the foregoing, the Tenant acknowledges and agrees that (i) the Premises and Tenant s business operations will be impacted by Race Events and other activities that will occur before, during and after Race Events (e.g., construction, set up and tear down activities), and (ii) the Premises will be closed to the general public for certain periods of time in connection with Race Events (although ticket holders for Race Events may have access to the Premises. In the event of a conflict or ambiguity between this Lease and any Grand Prix Race Agreement, the Grand Prix. B. Temporary Sublease During the Race Event: Notwithstanding any thing contained in paragraph 30, ASSIGNMENT AND SUBLEASE, the Tenant shall be permitted to sublease the Premises to the Race Promoter for a period commencing one (1) week prior to the Race Event and up to one (1) week following the Race Event ( Race Event Period ). The Tenant shall deliver to the City at the address for the City provided in paragraph 46, NOTICES, written notice of Tenant s intent to sublease the Premises to the Race Promoter for the Race Event Period. The subleasing of the Premises during the Race Event Period shall not relive the Tenant of any of the Tenant s obligations under this Lease. C. Grand Prix Race Event: In the absence of a written agreement between the Tenant and Grand Prix Race Event promoter which specifically provides otherwise, the Tenant shall comply with the following regulations pertaining to the Premises during Race Events: 1. Temporary outdoor uses are prohibited. 2. All uses, including but not limited to retail and food uses, operating from temporary or portable structures or vehicles such as semi trailers, step vans, recreational or other vehicles with cooking facilities, are prohibited. 3. Sale or distribution of food or any other item outside the Interior Premises is prohibited. 4. Temporary structures, including tents, shall not be erected and are prohibited.

26 5. Temporary signs, including signs on vehicles and buildings, visible from a street right of way and/or the Race Area are prohibited. Any sign erected shall be a permanent sign which has received the required permits. 6. Streamers, pennants, banners and inflatables, located within the Premises, which are visible from any street right of way and/or the Race Area are prohibited. Upon the receipt by the City of a written request from the Tenant for any future Grand Prix Race Agreements, including but not limited to rights related to use of the Airport, the City will provide the Tenant with fully executed copies of same within thirty (30) days of receipt of City Council or administrative approval of the requested document(s).