REQUEST FOR PROPOSALS (RFP) BY THE STATE OF NORTH CAROLINA

The following specifications must be considered and accepted prior to presenting a proposal to Lease the areas offered by the State of North Carolina (State) for the operation of the 4-H Education Center located in Swannanoa, NC (the “Camp”).

1. Property to be Leased

a.  Location: The Camp is located at 170 Woodland Drive, Swannanoa, North Carolina.

b.  Description: The “Premises” consists of approximately 108 acres of land. Lessee agrees to accept the Premises in its “as is” condition. The property to be leased includes all of the buildings and land within the dimensions set forth above.

2. Purpose

The Premises shall be used only for the operation of youth-serving organizations and those activities associated with their operation.

3. Major Provisions

a.  Form of Lease: The successful proposer will become the Lessee under a Lease with the State of North Carolina, which will be subject to any existing easements for utilities, roads or other purposes on or crossing the Premises. The Camp is to be operated in a manner consistent with the North Carolina General Statutes and rules and procedures governing the proposed use.

b.  Term: The lease term will be for a period of up to sixty years beginning April 1, 2015 or as soon thereafter as the space becomes available.

c.  Assignment / Subletting / Joint and Several Liability:

The Lessee shall neither transfer or assign the lease nor sublease the Premises or any part thereof, nor grant any interest, privilege, or license whatsoever in connection with the Lease without permission in writing from the State. The provisions of any sublease shall be subject to prior approval of the State. If more than one sublessee is named in the sublease, the obligations and liability of all Lessees so named shall be joint and several.

d.  The successful Proposer will provide a property management plan, including personnel, facility maintenance, repairs and renovations to infrastructure, and scope of services. The successful Proposer shall be solely responsible for managing and operating the property and the cost thereof.

e.  The successful Proposer will maintain and, as necessary, repair all structures on the Property. The successful Proposer will also be responsible for any renovation, addition, or demolition work to structures on the Property, subject to prior review and written approval by the State.

f.  The State, through North Carolina State University (NCSU), will provide such consultation services as is necessary to assist with operating decisions.

g.  The successful Proposer must, upon request, provide fee-based programmatic and rental opportunities to 4-H groups and 4-H sponsored events. The State shall retain the right to schedule use of the property for short periods of time, with such use coordinated with the successful proposer.

h.  The successful Proposer must, upon request and when feasible, provide fee-based programmatic and rental opportunities to past Swannanoa user groups that are mutually agreed upon with advance notification. User groups shall request and coordinate their desired use of the buildings for their events with the Proposer. Upon request, the property can be used for agency-sponsored events.

i.  Subject to the prior approval of the State, the successful proposer may place its signs and other normal business logos on the property itself only. All such signs or other logo placed on the property will be deemed to be the personal property of the Lessee and may be removed upon the termination of the lease. The property will be referred to as “(Name of Organization) at Swannanoa 4-H Education Center”.

j.  The State will consider all relevant factors in making the award. Preference will be shown to bidders/proposers who serve a similar mission to 4-H and who are willing to work with other youth-serving organizations. The State further reserves the right to reject any and all bids, for any reason whatsoever.

k.  Rental: During the term of the Lease, the Lessee shall pay rent to NC State University. There is no minimum acceptable bid; however, a minimum annual rent payment must be proposed and accepted to be selected.

l.  Hunting Restrictions: The successful proposer shall not hunt or trap or allow hunting or trapping on the Premises without written permission from NCSU if necessary to control invasive species and/or other destructive animals that are causing facility damage, endangering structural integrity, etc.

m.  Alcoholic Beverages: The successful proposer shall not sell nor permit to be sold on the Premises beer, wine or other intoxicating liquors or use the Premises or permit them to be used for any illegal or immoral business or purpose. Further, there shall not be carried on or permitted upon the Premises any activity which would constitute a nuisance or violate county ordinances. The Lessee shall be responsible for the activities of all tenants and guests on the Premises.

n.  Timber: The successful proposer shall cut no timber, conduct no mining operations, remove no sand, gravel, or kindred substances from the ground, distribute no waste of any kind nor in any manner substantially change the contour or condition of the Premises, except as may be authorized by the State. The Proposer shall keep the Premises in good order and in a clean, sanitary, and safe condition, and shall at all times maintain all structures and equipment in a condition satisfactory to the State. Further, the Proposer is responsible for removing dangerous or hazardous trees and abating any hazardous condition on the Premises.

o.  Inspections. Periodic inspections will be conducted that will include participants from NCSU, North Carolina Department of Insurance, North Carolina Department of Administration, State Construction Office and others as applicable.

p.  Damages: The Proposer shall be responsible for any damage that may be caused to Federal or State property during the term of the lease and shall exercise due diligence in the protection of all property located on the Premises against fire or damage from any and all causes. Any property of the State damaged or destroyed during the term of the lease shall be promptly repaired or replaced by the Proposer to the satisfaction of the State.

q.  Records and Reports: Pursuant to Exhibit A, hereinafter attached, the Proposer shall maintain complete and accurate records of all receipts and disbursements and such additional records as the State deems necessary to adequately reflect the operations conducted on the Premises. The Proposer shall furnish to the State within ninety (90) days after the end of each calendar year independently audited and certified true copies of his a 1) balance sheet; 2) profit and loss statement; 3) statement of total compensation (salaries, wages, bonuses and dividends) paid from the operator authorized by the lease; and 4) schedule of gross revenues showing the agreed upon gross revenue categories. (See Exhibit A). All accounts and records of the Lessee involving the operations conducted on the Premises shall be subject to inspection and audit at any time by the State or its duly authorized representatives. Upon State’s request, Proposer shall provide to the State copies of any records required to show compliance with any of the terms of the Lease, and to provide customer lists with sufficient information to allow the State the opportunity to communicate with users of the premises to conduct satisfaction surveys, address concerns raised by customers, and to otherwise communicate with customers.

r.  Utility and Taxes: The Proposer will at Proposer’s sole cost and expense provide all utility services and all other special equipment needed for maintenance and operation of the property. State is not responsible for disruptions in utility service. Proposer is responsible for payment and contractual agreements with utility providers. Proposer agrees and covenants to pay any ad valorem, personal property taxes, business taxes, assessments or public charges on the Premises or any improvements constructed by Proposer on the Premises.

s.  Insurance Coverages: During the term of the Lease and for as long thereafter as may be necessary, the Lessee, at its sole cost and expense, shall provide commercial insurance of such type and with such terms and limits as follows:

1)  Property Property Insurance, to include builder’s risk during construction, on replacement value of assets on the Premises (including personal property). This should include coverage for replacement cost (R & R) for direct physical loss due to flood and earthquake.

2)  Automobile Automobile Liability Insurance, to include coverage for liability, any auto. The minimum limits shall be a Combined Single Limit of $1,000,000 each accident; $100,000 uninsured/underinsured motorist; and $1,000 medical payment.

3)  Commercial General Liability General Liability Coverage, on a Comprehensive Broad Form in the minimum amounts of $1,000,000/$2,000,000 Combined Single Limit (C.S.L.). In addition, there shall be sublimits of $5,000 premises medical payment any one person

4)  Umbrella or Excess Liability - an umbrella or excess liability policy may be used to provide the required limits.

5)  Workers’ Compensation The Lessee shall procure and maintain during the term of the Lease Workers’ Compensation Insurance as required by law for all of its employees. The Lessee shall require the subcontractors similarly to provide Workers’ Compensation Insurance for all the latter's employees, unless such employees are covered by the protection afforded by the contractor. All Worker’s Compensation Insurance shall be procured and maintained at the State statutory limits.

6)  Pollution (If Applicable) Comprehensive Pollution Liability Coverage with the maximum available limits. This coverage shall be effective upon the date required by the regulatory agency having jurisdiction or the receipt of hazardous waste, whichever occurs first.

Requirements Providing and maintaining adequate insurance coverage is a material obligation of the Proposer. All such insurance shall meet all legal requirements. Such insurance coverage must be approved by the State and shall be obtained from insurers authorized to provide such coverage in North Carolina and have A.M. Best Company rating of A minus-VII or A+. The Proposer shall at all times comply with the terms of such insurance policies, and all requirements of the insurer under any of such insurance policies, except as they may conflict with existing law, permit conditions or the Lease. The Proposer shall promptly provide certificates of insurance to State. The limits of coverage under all such insurance policies shall not be reduced or modified without prior approval of State and compliance with all legal requirements. The limits of coverage under each insurance policy maintained by the Proposer shall not be interpreted as limiting the Proposer’s liability and obligations under the Lease. Such policies shall contain a provision that policies will not be cancelled, reduced in amount, or coverage eliminated until at least thirty days after mailing written notice, by certified mail, return receipt requested, to the State.

t.  Destruction of Premises: If any improvements on the Premises are destroyed by fire or other casualty or be so damaged as to become wholly or partially unusable, Lessee shall rebuild or repair same. In such event, the Lease shall remain in force, and Proposer shall rebuild or repair the damaged Premises within a reasonable time, subject to review and plan approval by the State Construction Office.

u.  Repairs or Improvements by State: The State reserves the right from time to time at its own expense to make such improvements, alterations, renovations, changes, and repairs in and about the Premises, other than those herein provided for Proposer to perform, as the State shall deem desirable, and the decision as to any rental adjustments as a result of interference with the Proposer’s leasehold interest or for loss or damage to its business during such improvements, alterations, renovations, changes, and repairs shall be at the sole discretion of the State. The State shall at all times have the right to erect such buildings or other structures, subject to plan review and approval by the State Construction Office, on property adjoining or adjacent to the Premises as it shall see fit or deem proper.

v.  Improvements, Alterations by Proposer: Proposer shall not improve or alter the Premises in any manner without the prior written consent of the State. Before making any improvements or alterations to the Premises, the Proposer shall submit plans and designs to the State for its review and consideration. In the event that the plans and designs are disapproved, such improvements or alterations shall be made only with such changes as may be required by State. All improvements or alterations or fixtures erected or made on the Premises, excluding personal property, shall on expiration or the earlier termination of the Lease, belong to the State without compensation being paid to the Proposer, provided however, that the State shall have the option to require Lessee to remove any or all such improvements, alterations or fixtures at the Lessee’s expense and return the Premises to its former condition. All improvements allowed to remain shall be given to the State in good and safe condition.

w.  Proposer’s Duty to Repair: All improvements, materials and equipment on the Premises not considered personal property, shall, at the expiration or earlier termination of the Lease, be returned to the State in as good and safe condition, reasonable wear and tear excepted, as same as they were when Proposer took possession under the Lease. If any property of the State is damaged or destroyed by the Proposer, its employees, agents, invitees, patrons, or other persons on the Premises, the same shall be replaced, repaired or restored by the State at Proposer’s expense and shall be billed to Proposer in a timeframe approved by the State. Documentation based upon existing State inspections and a joint inspection involving the State, Proposer or their respective representatives will be conducted prior to execution of the Lease.

The Proposer shall be responsible for any damage that may be caused to State property by the activities of the Proposer under this Lease, and shall exercise due diligence in the protection of all improvements, timber, and other property of the State which may be located on the Premises, against fire or damage from any and all other causes.

x.  Title to Improvements: Title to all structures and improvements erected or placed upon the Premises by the Proposer shall remain in Lessee during the term of the Lease so long as Proposer is not in default. Title to improvements at the expiration or earlier termination of the lease shall vest in the State as provided in above.