Concessionaire Bond - Florida DEP in Florida

Brief Summary

Florida State Parks concessionaires post security the day the concession agreement is signed, and the amount is written into each agreement rather than set by one statewide figure. Where the Division of Recreation and Parks approves a surety bond, it lets you meet that obligation without parking cash in a DEP administered deposit account for the life of the contract.

Businesses awarded a concession in a Florida state park sign a Concession Agreement with the Department of Environmental Protection, Division of Recreation and Parks. The agreement requires a security deposit, in the amount stated in that agreement, posted upon execution as a letter of credit, a DEP administered deposit account or, with written DRP approval, a surety bond. DEP keeps the full deposit as liquidated damages if it terminates the agreement for cause or the concessionaire abandons it.

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How to Apply for a Concessionaire Bond:

• Read Section E of the Special Conditions in your concession agreement for the security deposit amount.
• Get written approval from the Division of Recreation and Parks to post a surety bond, as the sample agreement requires.
• Give the surety a copy of the agreement, the business's financial statements and the owners' credit information.
• Confirm the surety has twice the minimum surplus and capital required by the Florida Insurance Code and a U.S. Treasury certificate of authority for Florida.
• Post the bond with the Department upon execution of the agreement.
• Keep the bond renewing automatically for the full term and give at least 120 days written notice before ending it.

Detailed Information About the Florida Concessionaire Bond:

The amount comes from your agreement

There is no single statewide bond amount for Florida State Parks concessionaires. Section E of the Special Conditions in the DEP concession agreement requires the concessionaire, upon execution, to post a security deposit in the dollar amount written into that agreement. As one example, agreement CA-0721 for Hillsborough River State Park set the deposit at $12,000.00. The sample agreement also lets the Department reassess the amount each year when the concessionaire's total gross sales are submitted.

How concessions are awarded

Florida Statutes 258.007 authorizes the Division of Recreation and Parks to grant privileges, leases, concessions and permits for the use of land for the accommodation of visitors in state parks. The Florida Park Service selects operators through a Call for Business Plans, and the final terms, including the security deposit, are set in the concession agreement.

Ways to post the security

The current sample concession agreement accepts three forms: a verified, original, current letter of credit from a bank authorized to do business in Florida, a security deposit account administered by the Department, or, with written DRP approval, a verified security bond. The surety must have twice the minimum surplus and capital required by the Florida Insurance Code and hold a certificate of authority from the United States Department of the Treasury to write surety bonds in Florida. Letters of credit and bonds must renew automatically, and the concessionaire must give at least 120 days written notice before ending either one.

When the Department keeps it

The Department returns the deposit when the agreement expires and the concessionaire has satisfied all its terms, or when the Department terminates for convenience. It collects the full deposit as liquidated damages if the Department terminates for cause or the concessionaire abandons the agreement or terminates for convenience.

Other contract requirements

The sample agreement also calls for commercial general liability insurance of $1,000,000 per occurrence and $2,000,000 aggregate, commercial automobile liability of $1,000,000 combined single limit, and workers' compensation, with the Department and the Board of Trustees named as additional insureds. Confirm the exact security amount, the accepted forms and the bond wording in your own agreement with the Division of Recreation and Parks before the bond is issued.

Eligibility and Requirements for a Florida Concessionaire Bond:

• Security deposit posted with the Florida Department of Environmental Protection under the concession agreement.
• Bond amount equal to the security deposit stated in the agreement.
• Automatic renewal on expiration for the life of the agreement.
• Surety meeting the Florida Insurance Code capital and surplus test and holding a U.S. Treasury certificate of authority for Florida.
• Credit and financial review of the concessionaire by the surety.

Florida Concessionaire Bond FAQs:

Official and Additional Resources for the Florida Concessionaire Bond: