a) The Agreement is for the Foodservice, which may include the Athletic Training Table, at MSU Athletic Facilities. The proposed contract term is for a five-year term. Given the potential requirements of tax-exempt financing that has been applied to the Facilities, Proposers will present two financial proposals for MSU consideration. Once MSU determines allowable options under its financing, MSU will select the appropriate financial proposal for evaluation. a. Proposal A: Commission Agreement: Concessionaire proposes a percentage of Gross Receipts by Sales Category to be paid to MSU and a Capital Investment. i. In addition, Concessionaire will propose a reimbursement cost from MSU for three Training Table meal types, Breakfast, Lunch and Dinner. b. Proposal B: Safe Harbor Agreement: Concessionaire will propose two fixed fees they would receive for managing the Foodservice and their Capital Investment. One Fee would be for all Foodservices including the Training Table Meals and the other fee would be without the Training Table Meals. Concessionaire will be reimbursed by MSU for all approved operating expenses including applicable amortization of their Capital Investment. The Fixed Fee may increase annually by the applicable CPI percentage. In addition, Concessionaire may receive an annual Incentive equal to no more than 50% of their Fixed Fee. Concessionaire will propose the criteria for earning that Incentive which may not be based on net profits with respect to the Foodservice. Under IRS rules the five-year agreement may be terminated, without cause or penalty after three years. b) MSU may contract for Breakfast, Lunch, and Dinner at the Training Table. Still, some special team meals may be provided by others, including team sponsors, elsewhere at the University, including pre-game meals at Kellogg Center. c) Foodservices have been managed in-house by MSU employees. It is expected that the selected Concessionaire will offer employment opportunities to the existing full-time and part-time Foodservice staff as well as opportunities for the Not-For-Profit Groups that staff the operation and MSU-approved subcontractors to continue with the Concessionaire. A list of those employees, NPO’s, and subcontractors will be provided at the pre-proposal meeting. d) Unique Catering requirements of the Renter, such as Kosher, Halal, Indian, and other Ethnic Foods not regularly prepared by the Concessionaire, may be excluded from these rights if so directed by MSU. e) Catering or other Foodservice in the offices, locker rooms, backstage dressing rooms, or in any area of the Facilities during non-events, other than designated Foodservice spaces, are excluded from this Agreement. Still, the Concessionaire may be required by MSU to perform such services on an eventby-event basis. f) MSU reserves the right to bring in outside food and beverages for dinner and other team meals at the Training Table. g) MSU teams may work with their supporters to provide food and beverages, encouraging attendance at events. An example would be a pre-game tailgate party outside of the stadium. These events are excluded from this Agreement. h) Operations under this Agreement are estimated to commence July 1, 2025. i) The Concessionaire will be responsible for designing, upgrading, and equipping all Foodservice improvements, including required technology upgrades in the Facilities, based on MSU’s approval of the design, over and above the current Equipment and facilities provided by MSU. j) The Concessionaire will make the investment in Foodservice Equipment, Leasehold Improvements, Smallwares, and Uniforms, as approved by MSU. k) A schedule of projected events and attendance for the first Agreement Year is attached as Exhibit B. Failure on the part of MSU to meet event projections shall not relieve the Proposer from the obligation to comply with the Agreement. l) MSU nutrition staff shall have significant input and approval of the menu, ingredients, and recipes. It is expected that a significant number/percentage of recipes shall be locally developed. m) Catering or other Foodservices in the offices, locker rooms, or other non-public spaces may be excluded from the Agreement. However, MSU may request the Concessionaire to provide services in any of these areas or the surrounding areas outside of the ticketed Venues on a non-exclusive basis.
