Agreement Framework for Oval Beach Concessions

City Council Agenda Item Report FROM:

Scott HerbertPublic Works Superintendent

MEETING DATE:

April 8, 2026 Workshop / April 13, 2026 Regular Meeting

SUBJECT:

RFP Oval Beach Concession Operation 2026

DESCRIPTION: In a strategic effort to provide concession goods and services at the Oval Beach and to relieve the Department of Public Works from some of their workload during the busy summer months, the City announced to the public a request for proposals (RFP) to operate the Oval Beach Concessions for the 2026 season. The RFP was issued on November 17th, 2025, to allow interested parties sufficient time to create a business plan, ask questions, tour the facility, etc. Proposals were to be submitted to the City Clerk’s office by February 13th, 2026. Two proposals were received. One was from Midtown Tavern, Inc, and the second was submitted by GROW Estate, LLC dba SaugaTaco. Both proposals are included in the packet for your review, consideration, and feedback. City staff has reviewed both proposals and is recommending proceeding with GROW Estate, LLC dba SaugaTaco. Their creative approach to using the off-site kitchen at SaugaTaco, offers a delivery service, and provides a reasonable pay structure for the City makes their proposal stand out. GROW Estate, LLC dba SaugaTaco is prepared to share 20% of their ready-to-eat food and beverage sales and 5% of their delivery sales as payment. Council reviewed this and provided feedback at the March 23rd, 2026 Workshop. Legal is wrapping up the agreement which will be in the packet for the regular meeting on April 13th. The agreement is expected to contain the following additional details: • • • • •

Parties agree to a $10,000 minimum payment, with revenue-based payments throughout the season and a reconciliation at the end if needed. May operate before Memorial Day and stay open after Labor Day at operators’ discretion. Closures (weather, staffing, etc.) will be coordinated with City staff, as in past seasons. $1,500 flat utility fee is due upfront by May 15, with accounts remaining under the City. Operating schedule varies by season: Late May - Late June: weekends + 1 weekday

Late June – Mid August (peak): weekends + 3 weekdays Mid-August – Early September: weekends +1 weekday Standard Hours are 11:00am – 8:00pm, with flexibility to extend. Permitted to use the “Oval Beach” name.

BUDGET ACTION REQUIRED: If approved, budget adjustments made to revenue and expenses for Oval Beach Concessions will be included in the year end budget amendments. COMMITTEE/COMMISSION REVIEW: N/A LEGAL REVIEW: Yes, agreement created and reviewed by legal counsel. SAMPLE MOTION: Motion to approve the agreement for GROW Estate, LLC dba SaugaTaco to operate the Oval Beach Concession from the City of Saugatuck for the 2026 season.

CITY OF SAUGATUCK REQUEST FOR PROPOSAL OVAL BEACH CONCESSION STAND

City of Saugatuck Oval Beach Concession RFP (2026-2028)

CITY OF SAUGATUCK REQUEST FOR PROPOSAL OVAL BEACH CONCESSION STAND The City of Saugatuck is seeking proposals for furnishing equipment, supplies, and staffing necessary to provide food/beverage concessions at the City of Saugatuck Oval Beach.

Request for proposal packets may be obtained from the City Clerk at Saugatuck City Hall, 102 Butler Street, Saugatuck, MI 49453 or by calling 269-857-2603.

Technical questions regarding this Request for Proposal may be directed to the Department of Public Works Superintendent (Scott Herbert) at 269-857-2638.

Sealed proposals will be received by the City Clerk of the City of Saugatuck up to the hour of 2:00 p.m., Friday, February 13, 2026. Responses delivered after the said date and time will not be accepted. The City of Saugatuck is not responsible for delays in delivery.

All responses to this request that are mailed through the United States Postal Service shall be addressed to the Saugatuck City Clerk, P.O. Box 86, Saugatuck, MI 49453. All responses to this request that are mailed through the FedEx, UPS, or similar delivery service that do not deliver to P.O. Boxes shall be addressed to the Saugatuck City Clerk, 102 Butler Street, Saugatuck, MI 49453. Hand-delivered responses shall be delivered to the Saugatuck City Clerk, 102 Butler Street, Saugatuck, MI 49453.

All proposals shall be placed in a sealed envelope, which is clearly marked “OVAL BEACH CONCESSION RFP”. Responses by fax or e-mail will not be accepted.

The City of Saugatuck reserves the right to accept the proposal that is, in its judgment, the best and most favorable to the interests of the City and to the public; to reject any and all proposals; and to waive irregularities and informalities in any proposal submitted or in the request for proposals process.

City of Saugatuck Oval Beach Concession RFP (2026-2028)

INTRODUCTION

The City of Saugatuck’s Oval Beach Park, located on the shore of Lake Michigan, serves as a destination point for residents and visitors each year – generally commencing in May and concluding in October. The lakefront park offers swimming, hiking, boating and other water and dune recreational activities to park visitors, as well as City-owned restrooms and the Oval Beach Concession Building. The Oval Beach Concession stand is typically open 7 days a week starting Memorial Day through Labor Day each year. The purpose of the Oval Beach Concession stand is to offer visitors to Oval Beach a variety of food and beverage options at reasonable prices.

The equipment provided by the City of Saugatuck includes: • • • • • • • • • • • •

400lb. Koolaire icemaker Standup freezer Refrigerator Hot dog roller/grill Microwave Slushie machine Ice Cream Machine Miscellaneous supplies (cleaning, buckets, kitchen utensils, etc.) Picnic tables/umbrellas Cash register Shelving units Pretzel Warmer

APPROXIMATE PROJECT TIMELINE

RFP issued:

November 17, 2025

Proposals Due:

February 13, 2026

Council award:

March 9, 2026

Contract signed:

March 16, 2026

City of Saugatuck Oval Beach Concession RFP (2026-2028)

PROPOSAL SUBMITTAL FORMAT

The General Information form, on the next page, is designed to serve as the cover sheet. Do not attach cover letters, title pages, or blank sheets ahead of this form, nor substitute letterhead paper for it. If additional space is needed, plain paper may be attached behind this form. This form must be signed by a person authorized to make proposals and enter into contract negotiations on behalf of your agency. This individual must be at least 18 years of age. Failure to submit this form will result in your proposal being deemed non-responsive.

City of Saugatuck Oval Beach Concession RFP (2026-2028)

CITY OF SAUGATUCK OVAL BEACH CONCESSION STAND

General Information This form must be signed by a person authorized to make proposals and enter into contract negotiations on behalf of your agency. To be considered for this project, the submittals must be completed in accordance with this RFP and this cover sheet must be attached. Failure to submit this form will result in your proposal being deemed non-responsive.

Authorized Official (Signature)

Date

Print Name of Authorized Official

Title of Authorized Official

Company Name

Contact Person

Address

City, State, Zip

Phone Number

Fax Number

E-Mail Address

Federal Tax ID #

City of Saugatuck Oval Beach Concession RFP (2026-2028)

TO BE COMPLETED AND SUMBMITTED

The request for proposal (RFP) is to solicit proposals from qualified vendors to use Oval Beach Concession Stand located at 690 Perryman Street, Saugatuck, MI 49453 (Property), for food/beverages and novelty souvenirs. Those interested are required to submit a written proposal that best represents the Proposer. The Property will be used as is with no proposed improvements planned by the City of Saugatuck. PROPOSERS QUALIFICATION STATEMENT: Check One: An Individual

A Co-Partnership

A Corporation

Submitted by: With principal office at: The completion and submission of this questionnaire reflects accurate and truthful statements of the signatory. (Attach additional pages if necessary)

Request for Proposal: Requirements

The proposal should include the following to coincide with this RFP: 1. Provide a business plan or explain in detail the Proposer’s proposed use of the Property and how it will contribute to the vitality of the City.

2. Explain how proposers use of the facility is compatible with the City’s Zoning Ordinances.

3. Resumé of Proposer’s previous experience, identifying not less than three (3) years of experience directly related to the proposed use.

4. Three (3) business and/or personal references. Note – the City reserves the right to contact the references listed and references other than, and/or in addition to, those being furnished. City of Saugatuck Oval Beach Concession RFP (2026-2028)

5. Financial statements including, but not limited to, balance sheets and income statements (audited statements preferred) for the past two (2) years supporting the financial abilities of the Proposer to operate at the facility.

6. Statement that the proposer is or is not a subsidiary of, or affiliated with, any other corporations, partnerships, or firm. If so, please specify. If the Proposer is a subsidiary, please indicate the extent to which the parent entity will guarantee performance by the subsidiary. 7. In what other businesses are you financially invested?

8. Statement that the Proposer or its officers, principal members, shareholders, or investors, or any of its parent, subsidiary, or affiliated entities or other interested parties have or have not been adjudged bankrupt, either voluntarily or involuntarily, within the past ten (10) years? If so, explain. 9. Statement that there is or is not pending litigation against the Proposing entity or its officers, principal members, shareholders, or investors, or any parent, subsidiary or affiliated entities or other interested parties other than the minor personal injury suits involving claims under $250,000? If so, explain.

10. Letter(s) from any financial credit rating service for the Proposer with whom the City may contract or the member or members of that entity who will be responsible for financial obligations and on whom the City should rely for financial performance. 11. Any other financial statements and/or other documents that would indicate acceptable financial standing and the ability of Proposer to fund the proposed services on the City Property. 12. A complete description and history of the Proposer’s entity (corporation, partnership, etc.) and identification of all parties including disclosure of all persons or entities having a beneficial and/or financial interest in the proposal. Include names and qualifications of corporate/company officers/owners, their addresses/location(s) and other appropriate contact information.

City of Saugatuck Oval Beach Concession RFP (2026-2028)

13. Description of employment opportunities that will be created by the proposed services including a description of the type, number of positions, and the estimated salary range of those positions. 14. Proposed operating schedule detailing days and hours open to the public. The City requires the Proposer to open operations every weekend (Friday – Sunday), Memorial Day (and the day before and after the holiday), Independence Day (and the day before and after the holiday), Labor Day (and the day before the holiday), with a minimum of two (2) days during any given week, Monday through Thursday. 15. Description of the proposed menu items or vendor items with pricing. 16. Description of the proposed marketing, advertising, and sales promotion plans. 17. Description of the proposed annual lease payment and proposed monthly percentage of gross revenue payment paid to the City during the two (2) year contract period. Tier percentage fees will not be accepted. The City expressly reserves the right to accept an offer other than the highest responsive offered price and also reserves the right to negotiate any terms. 18. List all major equipment Proposer will supply to provide services and/or goods proposed in this proposal. 19. Affirmative statements that: a. The Proposer’s entity will occupy the Property. b. The Proposer will not sublet or sublease the Property. 20. You may, if you desire, provide a narrative that would include anything you feel might assist the City of Saugatuck in evaluating your experience or Business Plan. If appropriate, describe plans you may have for, including projected expenditures. Attach additional sheets if necessary.

City of Saugatuck Oval Beach Concession RFP (2026-2028)

City of Saugatuck Oval Beach Concession RFP (2026-2028)

TO BE COMPLETED AND SUMBMITTED

The request for proposal (RFP) is to solicit proposals from qualified vendors to use Oval Beach Concession Stand located at 690 Perryman Street, Saugatuck, MI 49453 (Property), for food/beverages and novelty souvenirs. Those interested are required to submit a written proposal that best represents the Proposer. The Property will be used as is with no proposed improvements planned by the City of Saugatuck. PROPOSERS QUALIFICATION STATEMENT: Check One: An Individual__ A Co-Partnership� A Corporation__ Submitted by: GROW Estate LLC dba SaugaTaco (Alec + Lindsay Payleitner) With principal office at: 650 Water Street, Saugatuck, Ml 49453 The completion and submission of this questionnaire reflects accurate and truthful statements of the signatory. (Attach additional pages if necessary) Request for Proposal: Requirements

Answers to all questions below are included in the pages following. The table of contents, which includes o breakdown of the Business Pion, notes where each RFP question is addressed.

The proposal should include the following to coincide with this RFP: 1. Provide a business plan or explain in detail the Proposer's proposed use of the Property and how it will contribute to the vitality of the City. 2. Explain how proposers use of the facility is compatible with the City's Zoning Ordinances.

3. Resume of Proposer's previous experience, identifying not less than three (3) years of experience directly related to the proposed use. 4. Three (3) business and/or personal references. Note - the City reserves the right to contact the references listed and references other than, and/or in addition to, those being furnished. City of Saugatuck Oval Beach Concession RFP (2026-2028)

Oval Beach Concession Stand Proposal Presented by Lindsay and Alec Payleitner January 13, 2026

Table of Contents A. Business Plan (01) 1.

Key Takeaways

Executive Summary

Why T his Works for the City

Market Analysis + Competition

Products + Services (01sJ

Marketing + Sales Strategy (Ot6J

Operations Plan (013, 01aJ

Financial Projections (014, 011J

B. Resume (03, 012J C. References (04J D. Responsibility Statements 1.

Subsidiary Statement (06J

Financial Investment Statement (01)

Bankruptcy Statement (OBJ

Litigation Statement (09J

Occupancy Statement (Ot9J

E. Tax Returns (asJ 1.

LLC 2023

LLC 2024

F. Credit Statements (010J NIA I 02, 011, 020

1. Business Plan I Key Takeaways • Curated, ready-to-consume, grab-and-go items available onsite, including: • Savory snacks (e.g. popcorn, cheese+ crackers) • Sweets (ice cream sandwiches, ice pops) • Beverages (popular brands+ specialty/local) • No food preparation in the concession stand • Eliminates most concerns regarding the Health Department • Eliminates the need for highly trained kitchen personnel • SaugaTaco partnership • In-person ordering • Beachside delivery • Rent � 15% of sales, specifically: • 20% of RTE items • 5% of delivery items

2. Executive Summary The Oval Beach Concession Stand's primary function will be to sell ready-to-eat (RTE) sweet and savory snacks and ready-to-drink (RTD) beverages. RTE Snacks We will offer curated snacks, a mix of premium and classic items. This might include: classic ice pops, ice cream sandwiches, pre-bagged popcorn, and candies curated from specialty makers. RTD Beverages These beverages will be fun, unique offerings catering to a variety of ages (think: colorful Faygo sodas and cold brew). We will incorporate local makers as much as possible to highlight and promote our towns' offerings. The Oval Beach Concession Stand's secondary function will be to sell full meals using a unique model combining personalized, in-person ordering and beachside delivery. We're resigned to living in a OoorOash world; let's embrace and elevate it. Ordering A SaugaTaco-prepared menu of tacos, quesadillas, salads, and more will be available. Guests will order and pay at the from our SaugaTaco trained

• Rent structured entirely as a percentage of gross sales • City revenue scales with performance No City Capital Exposure • Operator maintains staff, inventory, technology, and non-city equipment • No upfront investment, depreciation, or replacement costs for the City Improved Visitor Experience • Efficient service and consistent hospitality standards • Optional beachside delivery reduces congestion and improves accessibility Local Alignment and Brand Protection • Operated by an established local hospitality business with local labor • Avoids "tourist trap" perception and supports repeat visitation

4. Market Analysis + Competition After a decade in the Saugatuck/Douglas restaurant business, we've come to believe in intra-business collaboration and inter-community competition. That is, within our towns, a rising tide lifts all boats (lake pun intended)-when our towns do better, we all do better. Our real competitors are other tourist destinations. When considering the Oval Beach Concession stand (OBC), we're additionally convinced of these dichotomies. We do not want to focus on how we can get visitors to eat lunch at OBC over, say, Farmhouse. Rather, we want to focus on how we can provide a premium beach experience, an experience worthy of recommendation and return visits. We believe we are perfectly poised to take on the challenge of elevating OBC-which in turn elevates the Oval Beach experience at large. As any restauranteur in the area will tell you, vacation time is of the essence! Long wait times and stagnant lines too often misalign with visitors' agenda desires. With our most recent project, we have spent the last two years learning successfully innovating in the fast-casual, or counterservice, business model. We're confident this experience will translate to an efficient and enjoyable OBC experience. In addition to efficiency, we consider affordability a core competency. In 2026, every meal option seems expensive. Grocery and restaurant prices are significantly up from two years ago, let alone a decade past. We understand that many, if not most, visitors are cost conscious. They've already spent money to vacation here-in these towns, at this beach. The concession stand should never feel like a tourist trap. Our ready-to-eat/

drink (RTE) menu offers reasonably priced fare across a moderate price spectrum. And, our SaugaTaco delivery options are certainly indicative of our commitment to value. The throughline is our commitment to hospitality. The OBC staff would be crosstrained, and likely cross-scheduled. at our restaurant. Without our consistent onsite presence at OBC, we believe this is the most effective way to ensure our standards of hospitality and customer service are consistently met. Such standards include: autonomy, attention to detail, above average communication abilities, adequate product knowledge, and...kindness.

4.1 Market Analysis + Competition I En Route to the Beach! Douglas Root Beer Barrel • Hot Dogs = $4 - $6 • 20oz Soda = $4.25 • Ice Cream = $5

Woosah • Regular Coffee = $4 - $5 • Specialty Coffee = $6 - $7 • Baked goods = $3 - $6

5. Products + Services We will use our extensive relationships with local makers, specialty distributors, and broad/iners to curate dozens of ready-to-consume products paying particular attention to: packaging (for display), value, and a thoughtful mix of familiar brands and lesserknown artisans. (The following is an illustrative list and is neither inclusive nor exhaustive.) RTE Savory Snacks • Chips (classic and/or premium brands) • Local cheese and cracker kits • Gourmet jerky • Craft pre-bagged popcorn • Fruit and/or yogurt cups RTD Sweets • Name-brand candy • Ice pops (for a very affordable frozen treat) • Ice cream sandwich • Vegan ice cream pint RTD Beverages • Name-brand sodas • Tractor-brand high end juice beverages

• SaugaTaco lavender lemonade • Cold Brew (possibly on tap from Uncommon Coffee Roasters) • Red Bull or Celsius Energy Drink • Boxed Water

SaugaTaco Delivery A curated SaugaTaco-prepared menu of tacos, quesadillas, salads, and more will be available. Guests will order and pay at the concession stand from our trained cashiers. Then, guests will be given an approximate delivery time and a 'marker' to indicate their place on the beach.

6. Marketing + Sales Strategy Word of Mouth To be sure, it's a built-in, captured market. Oval Beach has long been the area's signature outdoor attraction for visitors and locals alike, and concession stand sales will therefore be closely tied to independent beach pass purchases. To capitalize on this dynamic, word-of-mouth will be a central component of our marketing strategy. Beyond impulse purchases, our goal is to offer a consistently reliable and satisfying experience that inspires return visits and organic referrals-both in person and across social media. Beachside We will provide a branded / stylized website with up-to-date information regarding hours and offerings. (Likely: saugataco.com/beach) Website We will provide a branded / stylized website with up-to-date information regarding hours and offerings. (Likely: saugataco.com/beach) Cross-Promotion At SaugaTaco, we strive to be concierge for our guests. We train our staff to offer shopping, leisure activity, and dining suggestions. We even provide free custom photo postcards for guests to mail home-one of which features a beautiful overhead drone shot of Oval Beach taken by one of our guests. Social Media / Email We will feature this new partnership in social media posts (aggregate audience of 7K+) and send an announcement email to our 2000+ subscribers.

7 .1 Operations Plan I What does the day look like? 1 hour before open I Team Lead arrives at SaugaTaco • Check in with management • Pickup any products or supplies 1/2 hour before open I Team Lead+ support staff arrives at OBC • Pre-shift huddle • Assign positions • Opening duties [Staff will receive 30-minute break if shift exceeds 5 hours (lead). Most supporting staff will only work 5 hour shifts.] At closing time I All staff closing duties • Cleaning checklist • Inventory At 'doors locked' I Team Lead closing duties • Submit closing report to SaugaTaco management, including: • Closing photo checklist

7 .2 Operations Plan I Staffing While the staffing responsibility hierarchy is Team Lead --+ Support Staff, all staff members will be trained on all operational positions. Cashier Handles order placement and payment, answers guest questions, provides recommendations, and delivers a warm, hospitable experience-often sharing insights about the town and local offerings. Prep Retrieves drinks and snacks for guests after ordering. Keeps outdoor space tidy. Answers phone calls. Runner Receives SaugaTaco deliveries and promptly delivers orders to beachgoers, confirming order accuracy and guest satisfaction upon handoff.

7 .3 Operations Plan I Salaries • In-house minimum wage= $15 /hour+ tips • We will monitor gratuities with a goal of $20 /hour TOTAL wage+ tips.

• Quantity of staffing is based on a percentage of sales, as seen in 7.2 Financial Projections I Condensed Projected P&L.

• [If a student works 15 weeks @ $20/hr for 35 hours a week, they would make over $1OK at their summer job!]

7 .4 Operations Plan I Equipment Existing Equipment

New Equipment

(provided/maintained by the city)

(provided by applicant)

• Refrigerator • Freezer • Mop Sink

• POS H ardware • Display Signage

• Ice Machine?

8. Financial Projections These projections were made before we received financial documents from the city. The numbers were calculated based on the fact of 50K vehicle passes sold in 2024 and then estimates of number of guests, percentages of concession stand goers, and check average. Full disclosure: these sales estimates are 88% higher than 2025 sales and 158% higher than 2024 sales. SCHEDULE (subject to change) • 15 weeks (Memorial Day - Labor Day) • 12pm - 8pm • Tuesday through Sunday, plus Memorial Day and Labor Day GOOD-FAITH ESTIMATE (Beachgoers) 50,000 daily passes sold in 2024 over 105 days 4 That means approximately 475 cars I day, or 950 people I day 2,000 season passes sold in 2024 (estimating an average of 2 trips) 4 That means 40 cars I day, or 80 people per day We set our educated estimation at 1000 beach visitors per day.

GOOD-FAITH ESTIMATE (Concession Sales) 35% of the guests purchase drink/ice cream-with a check average of $5 4 TOTAL Prepared Food/Bev Sales = $1750 I day

10% of guests purchase beachside delivery-with a check average of $9.50 4 TOTAL Delivery Sales = $950 I day TOTAL Daily Sales= $2700 TOTAL Weekly Sales = $13,500 TOTAL Season Sales= $202,500

8.1 Financial Projections I Calculating Rent 'Rent' is calculated entirely as a percentage of sales: 20% of prepared food/bev sales + 5% of delivery sales. SALES = S; Prepared Share % = P; Delivery Share % = D 'Rent' = (P)(S)(20%) + (D)(S)(5%) SALES (75% prepared + 25% delivery)

$125,000

$200,000

$250,000

$300,000

City Percentage

$20,313

$32,500

$40,625

$48,750

SALES (65% prepared + 35% delivery)

$125,000

$200,000

$250,000

$300,000

City Percentage

$18,438

$29,500

$36,875

$44,250

SALES (60% prepared + 40% delivery)

$125,000

$200,000

$250,000

$300,000

City Percentage

$17,500

$28,000

$35,000

$42,000

SALES (50% prepared + 50% delivery)

$125,000

$200,000

$250,000

$300,000

City Percentage

$15,625

$25,000

$31,250

$37,500

8.2 Financial Projections I Condensed Projected P&L The following page show projected (and condensed) profit and loss statements for three gross sales scenarios.

GROW ESTATE, LLC Established: Ml (2015); IL (2014)

I D/8/A SaugaTaco, Saugatuck, Michigan

2024 - now

• Upscale QSR of tex-mex cuisine • Seating = 40 indoor + 20 outdoor • Approximate serving capacity of 100 guests per hour • Robust takeout and delivery program GROW Cafe+ Bistro, Saugatuck, Michigan

2016 - 2023

• Upscale casual service of contemporary American cuisine

• Seating = 30 indoor + 24 outdoor ■

Approximate serving capacity of 70 guests per hour

the TRAP from Cafe+ Bistro, Saugatuck, Michigan ■

Upscale casual service of Middle Eastern inspired cuisine

Seating = 24 indoor + 30 outdoor

2021 - 2022

• Approximate serving capacity of 50 guests per hour GROW Food + Events, Chicago

2014 - 2015

'Ghost kitchen' prep and delivery of office caterings

Dozens of festival appearances

I ENTITY OWNERSHIP (S-corp election for an LLC) Lindsay Payleitner (50% ownership) Chef/Owner lindsay@grow-food.com 312.810.7066 (Cell) PO Box 841, Saugatuck, Ml 49453

Alec Payleitner (50% ownership) Owner/Operator • alec@grow-food.com 312.480.8161 (Cell) PO Box 841, Saugatuck, Ml 49453

C. References (04) Name: Erin Rogers Phone: 269.245.1539 Email: erin.rogers@gfs.com Association: Gordon Food Service representative Known Since: 2016 Name: Reed Anders Phone: 815.761.0614 Email: reedanders@yahoo.com Association: Investor in GROW Cafe + Bistro + personal friend Known Since: 1999 Name: Fred Gerigery Phone: 561.889.3255 Email: fredgerigery@gmail.com Association: Former landlord at GROW Cafe + Bistro Known Since: 2015

D1. Subsidiary Statement (06J GROW Estate LLC is not a subsidiary of, or affiliated with, any other corporations, partnerships, or firm.

D2. Financial Investment Statement ro1J GROW Estate LLC is financially invested and doing business as SaugaTaco (650 Water Street, Saugatuck, Ml).

D3. Bankruptcy Statement roaJ Lindsay Payleitner, Alec Payleitner, and GROW Estate LLC (including: its officers, principal members, shareholders, or investors, or any of its parent, subsidiary, or affiliated entities or other interested parties) have not been adjudged bankrupt, either voluntarily or involuntarily, within the past ten (10) years.

D4. Litigation Statement (09J T here is no pending litigation against Lindsay Payleitner, Alec Payleitner, and GROW Estate LLC (including: its officers, principal members, shareholders, or investors, or any of its parent, subsidiary, or affiliated entities or other interested parties) other than the minor personal injury suits involving claims under $250,000.

D5. Occupancy Statement ro19J A. GROW Estate LLC will occupy the Property. B. GROW Estate LLC will not sublet or sublease the Property.

Agreed and Accepted: 1/5/2026

1/5/2026 Alec Payleitner

TO BE COMPLETED AND SUMBMITTED The request for proposal (RFP) is to solicit proposals from qualified vendors to use Oval Beach Concession Stand located at 690 Perryman Street, Saugatuck, MI 49453 (Property), for food/beverages and novelty souvenirs. Those interested are required to submit a written proposal that best represents the Proposer. The Property will be used as is with no proposed improvements planned by the City of Saugatuck.

PROPOSERS QUALIFICATION STATEMENT:

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Check One: An Individual__ A Co-Partnership__ A Corporntion Submitted by:

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The completion and submission of this questionnaire reflects accurate and truthful statements of the signatory. (Attach additional pages if necessary)

Request for Proposal: Requirements The p posal should include the following to coincide with this RFP: / Provide a business plan or explain in detail the Proposer's proposed use of the Property and how it will contribute to the vitality of the City.

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� Explain how proposers use of the facility is compatible with the City's Zoning Ordinances.

�esumC of Proposer's previous experience, identifying not less than three (3) years of experience directly related to the proposed use. i�ree (3) business and/or personal references. Note - the City reserves the right lo contact the references listed and references other than, and/or in addition to, those being furnished. City of Saugatuck Oval Beach Concession RFP (2026-2028)

Financial statements including, but not limited to, balance sheets and income statements (audited statements preferred) for the past two (2) years supporting the financial abilities of the Proposer to operate at the facility. v;atemcnt that the proposer is or is not a subsidiary of, or affiliated with, any other corporations, partnerships, or firm. If so, please specify. If the Proposer is a subsidiary, please indicate the extent to which the parent entity will guarantee performance by the subsidiary. � hat other businesses arc you financially invested? JV' Statement that the Proposer or its officers, principal members, shareholders, or investors, / or any of its parent, subsidiary, or affiliated entities or other interested parties have or have not been adjudged bankrupt, either voluntarily or involuntarily, within the past ten (10) years? If so, explain. / Statement that there is or is not pending litigation against the Proposing entity or its officers, principal members, shareholders, or investors, or any parent, subsidiary or affiliated entities or other interested parties other than the minor personal injury suits involving claims under $250,000? If so, explain.

yr. Letter(s) from any financial credit rating service for the Proposer with whom the City //

may contract or the member or members of that entity who will be responsible for financial obligations and on whom the City should rely for financial performance.

!)A'� Any other financial statements and/or other documents that would indicate acceptable

financial standing and the ability of Proposer to fund the proposed services on the City Property.

complete description and history of the Proposer's entity (corporation, partnership, etc.) and identification of all parties including disclosure of all persons or entities having a beneficial and/or financial interest in the proposal. Include names and qualifications of corporate/company officers/owners, their addresses/location(s) and other appropriate contact information.

City of Saugatuck Oval Beach Concession RFP {2026-2028)

i:,,:"bescription of employment opportunities that will be created by the proposed services including a description of the type, number of positions, and the estimated salary range of those positions. 14. Proposed operating schedule detailing days and hours open to the public. The City requires the Proposer to open operations every weekend (Friday - Sunday), Memorial Day (and the day before and after the holiday), Independence Day (and the day before and after the holiday), Labor Day (and the day before the holiday), with a minimum of two (2) days during any given week, Monday through Thursday.

1Description of the proposed menu items or vendor items with pricing. 16. Description of the proposed marketing, adve1iising, and sales promotion plans. 17. Description of the proposed annual lease payment and proposed monthly percentage of gross revenue payment paid to the City during the two (2) year contract period. Tier percentage fees will not be accepted. The City expressly reserves the right to accept an offer other than the highest responsive offered price and also reserves the right to negotiate any terms. 1?,ist all major equipment Proposer will supply to provide services and/or goods proposed in this proposal. 19. Affirmative statements that: a. The Proposer's entity will occupy the Prope1iy. b. The Proposer will not sublet or sublease the Property. 20. You may, if you desire, provide a narrative that would include anything you feel might assist the City of Saugatuck in evaluating your experience or Business Plan. If appropriate, describe plans you may have for, including projected expenditures. Attach additional sheets if necessary.

City of Saugatuck Oval Beach Concession RFP (2026-2028)

Proposal For Oval Beach Concession Stand This project is custom made for my interests and proven abilities in food and beverage operations. My prowess in outdoor summer food and beverage operation is well documented. The Oval Beach food and beverage concession stand will be a must see, must experience local destination spot; the food and potential supporting activities will complete the local beach scene. I am confident that I will operate within applicable zoning ordinances and will review and abide by lesser known applicable ordinances. I have 50 years experience in the food and beverage industry; 30 plus years in this area: Dona Blanche Enterprises, catering and in house breakfast service at the Maplewood Hotel Saugatuck, Cafe Dona, breakfast, lunch, catering, private party dining Hoffman St Saugatuck, Red Dock Cafe (25 yrs) outdoor summer venue with original food, drinks and live music Douglas. To better acquaint you with my abilities please feel free to contact: Nick Cappaletti Capizzo Studios Saugatuck, Dene Lencioni Toons Chicago, Lauren Stanton Red Dock Douglas and Jason Blik Huntington Bank. Glad to provide phone numbers upon request. I can guarantee you that my financial health is solvent with an active subchapter S corporation and business checking account, along with my professional team of accounting, legal, insurance and banking in good order. Glad to share names and phone numbers on request. I am not affiliated with any other subsidiary corporations but I do also underwrite and produce live music events in the area at Capizzo Studios Saugatuck and Park Theatre Holland and occasionally in Santa Fe, NM. I have never experienced any aspects of bankruptcy and at this time there is no litigation pending against me. I will be glad to provide you with my accountant firm and bank to verify my financial solvency. This potential beach concession ,if approved by the city, will be operated by myself and my wife Dona. I cannot go into detail about employment opportunities until I get into the physical space and organize the work, storage and production flow as well as detail the menu until I see what the space can handle in production and execution but I will price it market fair and compensate employees on the high end of local standards, this also applies to any additional equipment I would bring in outside of the city's listed invento1y, keeping in mind accommodating the health dept, fire dept and other applicable city, county and state agencies; but note that the menu will be conservative in number of items, creative, fresh and representative of a summer beach concession in the areas of sandwiches (hot and cold), salads, hot dogs, soda and other bottled beverages, ice cream and appropriate sides and snacks. I would like to add events like live music, informative lectures, yoga and community related gatherings of interest. This will all be coordinated with social media, local papers and the "grapevine". In regard to lease agreements and payments, I am very familiar with the local market. I would need to see a five year histo1y of past lease agreements and percentage of gross sales payments

before the city took over the operation of the beach concession stand; working with averages I propose to make one payment in full (combination of monthly payments and average of percentage payments ) at the time of agreement so that my accounting is my accounting and your accounting is your accounting. I don't want to be burdened with multiple, separate payments. single figure that meets the need of the city's expenses ; one and done, I am flexible in understanding your financial needs ( I assume that utilities and garbage removal in included in monthly payment ) but if it becomes financially burdensome from the get go, it would make it difficult for any operator to set themselves up for success. Also a two year lease is a short time to enjoy the benefits of a successful operation; please explain reasoning and potential lease renewal policies. Yes, I will occupy the property for the duration of lease and look forward to the potential of operating the beach concession stand; I have 50 years of experience in the food and beverage industry embracing countertop service, catering, casual dining and fine dining. Thank you for your time and consideration.