Tuesday Tactics: Make Some Decisions and Communicate
As the public health sector responds to the COVID-19 crisis, public park agencies are called to respond. The purpose of the Tuesday Blog is simple: to provide you with tactics that assist you, your agency and your partners with a mutually beneficial way forward.
I. Decide Your Short-Term Strategy: Establish your agency’s position on concession fee waivers and contract extensions. While each entities contract rights vary, it is reasonable to consider both a concession fee waiver for the remaining months of 2020, and a one-year contract extension. At this point, you are lacking enough information to support a commitment to any additional concession fee or contract adjustments beyond one year.
2. Gather Information for Your Long-Term Strategy: Any contract amendments should include language requiring the Concessioner to provide information to support the modification(s) you are offering. Amendments should include receipt of following data requirements at a TBD date:
a. 2019 and 2020 Monthly Operational Statistics
b. 2019 and 2020 Monthly P&L
c. 2019 and 2020 Annual P&L
d. 2020 Cancellation Records
e. Information on all Federal Resources (CARES, SBA, etc.) received.
This situation is FLUID and yet Concessioner’s need some certainty in order to plan for the sustainability of their business. Your agency should want to support your partners in delivering visitor services. If you do not possess the skills to effectively analyze your options, CHMGS is here to help, it is an investment that will yield returns and pay dividends.
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