Board approves RFP for Northpointe Pavilion concessions, lowers base rent and shifts utilities to tenant

Michigan City Parks and Recreation staff told the board on Nov. 5 that the department will shift the Northpointe Pavilion concessions procurement from a dollar-focused bid to a request for proposals (RFP) that evaluates business plans, financial stability and references.

Staff said the earlier bid process produced limited responses and that a proposal-and-interview approach would allow the department to evaluate operator capability rather than only the highest monetary offer. The RFP changes discussed and adopted by the board include lowering the base monthly rent from an initial $2,100 figure to $1,500, removing gas and electric costs from base rent because they will be separately metered and put in the tenant's name, and retaining the option to collect a percentage of sales in addition to base rent.

Board members asked whether water use would be split and whether historical sales data are available; staff said vendors provide ST-103 tax filings monthly and that the department can provide annual food-versus-alcohol breakdowns and can request more detailed monthly sales data from the prior operator to help prospective vendors assess revenue potential. The board also discussed the option of city council approval for five-year extensions if a high-quality vendor asks for a longer term; the board can approve leases up to three years.

A motion to approve the Northpointe Pavilion concessions RFP with the proposed changes passed by voice vote.