TITLE
Recommendation to authorize City Manager to execute a permit, and any amendments, with Harbor Breeze Corp., to provide and operate retail merchandising units on the Rainbow Harbor Esplanade, for a term of three years, with two three-year options to renew, at the sole discretion of the City Manager. (District 2)
DISCUSSION
Rainbow Harbor was officially opened over eight years ago. Since that time, development in Rainbow Harbor and the Pike Development Project have brought numerous retail and restaurant establishments to the area. The Department of Parks, Recreation and Marine (PRM) determined that the placement of retail merchandising units (RMUs), or merchandise carts, along the Rainbow Harbor Esplanade (Esplanade) would attract visitors to stroll the area and provide a benefit to both the visitors and area businesses. RMUs are kiosk type temporary units used to sell food and seasonal tourist oriented merchandise. PRM issued a Request for Proposal (RFP) in October 2004, for an RMU operator at the Esplanade. No responses were received for this RFP. Subsequently, PRM attempted to negotiate directly with the Pike lessee, Developers Diversified Realty; however, an agreement could not be reached.
In October 2005, PRM received a proposal from Harbor Breeze Corp. (Permittee) to provide and operate RMUs along the Esplanade. The proposal was reviewed by PRM and deemed to meet the requirements of the previously issued RFP. In August 2006, this matter was brought to City Council for a permit to operate this program. The major points of the permit included a defined permit area and a ten percent fee of gross program revenue to the City. The permit term is for three years, with two three-year extensions, at the sole discretion of the City Manager.
In 2006, there was not sufficient time to initiate this program for the critical summer season, and therefore, Permittee purchased 19 carts to begin operating the program in the summer of 2007. The strategy of the Permit...
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