REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
March 25, 2025
FROM
BEAHTA R. DAVIS, Director, Regional Parks Department
SUBJECT
Title
Revenue Lease Agreement with Close the Lid Entertainment, LLC for Operation of The Bottle House Concession at Calico Ghost Town Regional Park
End
RECOMMENDATION(S)
Recommendation
1. Find that approval of Revenue Lease Agreement with Close the Lid Entertainment, LLC to operate The Bottle House concession at Calico Ghost Town Regional Park is an exempt project under the California Environmental Quality Act Guidelines Section 15301 - Existing Facilities (Class 1).
2. Approve Revenue Lease Agreement with Close the Lid Entertainment, LLC to lease Building No. 46 to operate The Bottle House concession at Calico Ghost Town Regional Park from March 26, 2025, through March 25, 2030, with two five-year options to extend the term, in which the County will receive lease fees of no less than $16,800 over the five-year term (Four votes required).
3. Direct the Regional Parks Department to file the Notice of Exemption in accordance with the California Environmental Quality Act.
(Presenter: Beahta R. Davis, Director, 387-2340)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Operate in a Fiscally-Responsible and Business-Like Manner.
FINANCIAL IMPACT
Approval of this item will not result in the use of Discretionary General Funding (Net County Cost). Over the five-year term of this Revenue Lease Agreement (Agreement), Close the Lid Entertainment, LLC (Concessionaire) will pay fees, totaling a minimum of $16,800, to the Regional Parks Department (Department) to lease Building No. 46, known as The Bottle House, at Calico Ghost Town Regional Park (Park). The Concessionaire will pay fees of $250 per month or 8% of its gross income for years one through two and $300 or 8% of its gross income for years three through five for the term of the Lease, whichever is greater. The Concessionaire will also pay 3.5% of its monthly gross income as an advertising fee for promotion of the Park. The Department will match their advertising fee payment equal to a minimum of one and a half times the 3.5% collected. Adequate appropriation and revenue have been included in the Department’s 2024-25 budget and will be included in future recommended budgets.
BACKGROUND INFORMATION
The Concessionaire currently operates Lane’s General Merchandise, Dorsey’s Dog House and Coffee, Tea and Pottery.
The Bottle House concession has been operating at the Park since 2014. This concession sells a variety of items that include cups, figurines, hats, jewelry, key chains, postcards, socks, t-shirts, magnets, and blankets. Additionally, sales of ghost tour and historical tickets are sold from the concession. The Lease with the Concessionaire is for an initial five-year term commencing March 26, 2025, through March 25, 2030, and includes two five-year extension options.
Approval of this Agreement aligns with the County and Chief Executive Officer’s Goal and Objective to Operate in a Fiscally-Responsible and Business-Like Manner by allowing the Department to leverage its amenities and land to raise revenue to support the Park maintenance and development.
The Agreement was reviewed pursuant to the California Environmental Quality Act (CEQA) and determined to be categorically exempt under CEQA Guidelines Section 15301- Existing Facilities (Class 1) because there is no possibility that the leasing of the subject property will have significant effect on the environment.
Government Code Section 25536 allows the Board, by a four-fifths vote, to lease County-owned property devoted to or held for ultimate use for park, fairground, amusement or recreation purposes.
PROCUREMENT
Regional Parks Department released Request for Proposals (RFP) No. PARKS25-PARKS-5580 on August 30, 2024. The RFP requested proposals from applicants looking to lease and provide the management of Building No. 46, known as The Bottle House concession. The RFP was posted to the County’s Electronic Procurement Network (ePro).
Following the review of the one proposal received, the Department is satisfied with the proposal and recommends approval of the Agreement. No protests were received within the allowable period. Purchasing supports this competitive procurement based on the formal solicitation described above.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Suzanne Bryant, Deputy County Counsel, 387-5455) on February 27, 2025; Purchasing (Jessica Barajas, Supervising Buyer, 387-2065) on February 28, 2025; Real Estate Services Department (Lyle Ballard, Leasing and Property Manager, 387-5252) on January 8, 2025; Finance (Elias Duenas, Administrative Analyst, 387-4052) on January 10, 2025; and County Finance and Administration (Valerie Clay, Deputy Executive Officer, 387-5423) on January 21, 2025.