proposal to run queens carousels

CENTRAL PARK CAROUSEL INC. C/O SAL NAPOLITANO 1055 BRINSMADE AVE.

BRONX, NEW YORK 10465

SOLICITATION #

Q15-Q99-SB-C-Cl

FRIDAY, MAY13, 2011

AT 3:00 PM

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1. FEE OFFER

FOREST PARK CAROUSEL

Central Park Carousel is estimating to open the carousel in Forest Park by July 1, 2011 and be in operation through September 30, 2011, providing we can obtain the necessary permits and inspections required to operate the facility, and the carousel is in safe operable condition. The $1,500 fee for the first year will be paid in three $500 installments July 1, 2011, August 1, 2011, and September 1, 2011. All fees after 2011 will be paid in equal monthly installments starting from April 1 and ending September 1. We will not be operating the food concession during the first season due to the extensive repairs needed to open the facility.

Year 1: $1,500.00 Year 6: $7,500 Year 11: $10,000

Year 2: $6,000 Year 7: $8,000 Year 12: $11,000

Year 3: $6,000 Year 8: $8,500 Year 13: $11,500

Year 4: $6,000 Year 9: $9,000 Year 14: $12,000

Year 5: $7,000 Year 10: $9,500 Year 15: $12,500

FLUSHING MEADOW CAROUSEL

Given the costs for capital improvement projects, two years of which will take place at Forest Park Carousel, followed by four years at Flushing Meadow Carousel (see maintenance and restoration details below), 5% increases will begin in Year 7 for Flushing Meadow Carousel.

Year1: $50,000 Year 6: $55,000 Year 11: $68,068.35

Year 2: $50,000 Year 7: $56,000 Year 12: $71,471.77

Year 3: $52,000 Year 8: $58,800 Year 13: $75,045.36

Year 4: $53,000 Year 9: $61,740 Year 14: $78,797.63

Year 5: $54,000 Year 10: $64,827 Year 15: $82,737.51

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2. CAPITAL INVESTMENT, IMPROVEMENTS and DESIGN.


Upon closure of the carousel for the season, the restoration of the snack stand will begin.

We are allocating $12,000 for this renovation. Renovation will include painting of the entire structure both inside and out, repair and or replacement of any damaged fixtures, repair and or replacement of the exterior wooden fence, and installation of new equipment to operate the stand. Wherever possible, we intend to use Energy Star appliances. Such equipment will include but not be limited to: popcorn machine, cotton candy machine, two ice cream freezers, large beverage refrigerator, pizza oven, and grill.

After completion of the snack stand and prior to the April 2012 opening season, renovation and restoration of the carousel will begin and will continue throughout the length of the contract. The restoration will include but not limited to the repairing, painting, and varnishing of the carousel figures, the painting of the building, as well as the inner and outer façade panels.

The carousel deck will be sanded and varnished and any damaged floor boards will be replaced. It should be noted that Central Park Carousel Inc. is uniquely qualified for the restoration, and all restoration work will be done in-situ. Central Park Carousel Inc. is allocating $15,000 per year towards restoration. This figure is an estimate based on what Central Park Carousel Inc. would charge other clients for this type of restoration during the off season.

In October 2013, the restoration of the military band organ will begin. This renovation will take approximately one year and cost $18,000.

Central Park Carousel Inc. does not intend to operate an additional amusement venue at this time, but may include this option in the future with any additional rides and /or attractions, after Parks approval.

FLUSHING MEADOW PARK CAROUSEL

Central Park Carousel is allocating $25,000 toward the purchase of new equipment. This equipment will include one new processing cart and two new non-processing carts.* New equipment on the carts will include but not limited to: popcorn machine, cotton candy machine, nachos and cheese dispenser, pretzel warmer, and grill.

In addition, we plan to purchase a refrigerated ice cream cart as well as two new Energy Star freezers for storage.

Also to be purchased are two new carts for the sale of children’s souvenirs, which will match the design of the food carts.*

Upon return of the restored organ at Forest Park in the fall of 2014, Central Park Carousel Inc. will either replace or restore the band organ at the Flushing Meadow Park carousel. The cost of this restoration or replacement will be $60,000 and take approximately two years to complete.

In November of 2016, Central Park Carousel Inc. will install a new soft drive unit on the carousel; the cost of the unit will be approximately $18,000 and would require the carousel to be closed for several days. Due to the worn condition of the present drive unit, this capital improvement may have to be scheduled before the restoration of the band organ.

Central Park Carousel Inc. has already begun restoring the carousel figures. To date, twelve figures and one chariot have been restored. In November of 2012, it is our intention to continue this restoration throughout the length of the contract.* *

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The inner façade panels have deteriorated to the point that they should be replaced and new lighting installed. Central Park Carousel Inc. is allocating $15.000 per year for restoration, with all restoration done in-situ. As in Forest Park, this figure is an estimated base on what other clients would be charged for this service.

*Please note design for new food carts and Souvenir carts at the Flushing Meadow Park Location.

** Please note enclosed restoration photos.

3. OPERATION AND MAINTENANCE

FOREST PARK

It is our intention to operate the carousel daily from 11:00 a.m. to dusk April 1, 2011 through September30, 2011. From October through March, the carousel will be in operation on weekends from 11 a.m. to dusk. All operating hours are “weather permitting.” Weekdays from October through March will be primarily devoted to restoration.

Days that the carousel is not in operation due to inclement weather will be devoted to maintenance and restoration.*

Three employees will be assigned to the Forest Park Carousel., one full time employee and two seasonal employees. One employee will be a Health Department licensed vendor for the food cart and two will be licensed operators for the carousel. An additional seasonal employee may be assigned on weekends and holidays.

Carousel sales, food sales and children’s souvenirs will be recorded daily via cash registers. Additionally, numbered carousel tickets sales will be recorded daily.

* Please note the attached daily maintenance schedule for the carousel.

The following menu items are planned to be sold at the Forest Park Carousel:

Hot Dogs $2.00 Cotton Candy $3.00 Pretzels $2.00 Popcorn (36 oz.) $3.00 Canned Soda $1.25 Ice Cream $2.00 or $3.00 Bottled water $2.00 Italian Ices $2.00 Sport Drinks $3.00 Potato Chips $ .50 Fruit Juices $3.00 Cookies $1.00 Hamburgers $3.50 Pizza $5.00 Cheeseburgers $4.00 Nuts $1.00 Sunflower seeds $1.00 Granola/protein bars $2.00 Souvenirs

Children’s souvenirs with a carousel theme will be given preference.

Inflatables $4.00 or $5.00 Animal Water Shooters $3.00 Balloons $2.00 Kites $2.00 Bubbles $2.00 Trumpets $2.00 Golf Sets $3.00 Baseball Sets $3.00 Frisbees $3.00 Bubble Shooters $5.00 Super Soakers $5.00 Trumpets $2.00 Kites $2.00

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It is our intention to operate the carousel daily from 11:00 a.m. to dusk April 1 through September 30 each year.

From October through March, the carousel will be in operation on weekends from 11 a.m. to dusk. All operating hours are “weather permitting.” Weekdays from October through March will be primarily devoted to restoration.

Days that the carousel is not in operation due to inclement weather will be devoted to maintenance and restoration.*

Five employees will be assigned to the Flushing Meadow Park Carousel, two full time employees and three seasonal employees. One employee will be a Health Department licensed vendor for the food cart, one will be a cashier and two will be licensed operators for the carousel and one employee for the sale of children’s souvenirs. An additional seasonal employee may be assigned on weekends and holidays.

Carousel sales, food sales and children’s souvenir will be recorded daily via cash registers. Additionally, numbered carousel tickets sales will be recorded daily.

* Please note attached copy of the daily checklist for cleaning and maintenance schedule.

The following menu items are planned to be sold at the Flushing Meadow Park Carousel:

Hot Dogs $2.00 Cotton Candy $3.00 Pretzels $2.00 Popcorn (36 oz.) $3.00 Canned Soda $1.25 Ice Cream $2.00 or $3.00 Bottled water $2.00 Italian Ices $2.00 Sport Drinks $3.00 Potato Chips $ .50 Fruit Juices $3.00 Cookies $1.00 Hamburgers $3.50 Shish-ka-bob $3.00 Cheeseburgers $4.00 Churros $2.00 Sunflower seeds $1.00 Nuts $1.00 Granola/protein bars $2.00 Souvenirs

Children’s souvenirs with a carousel theme will be given preference.

Inflatables $4.00 or $5.00 Animal Water Shooters $3.00 Balloons $2.00 Kites $2.00 Bubbles $2.00 Trumpets $2.00 Golf Sets $3.00 Baseball Sets $3.00 Frisbees $3.00 Bubble Shooters $5.00 Assorted Candy $1.00 Super Soakers $5.00 Kites $3.00 Trumpets $2.00

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General Operations and Customer Satisfaction

Central Park Carousel Inc. is well aware of our responsibility to the public. We make customer satisfaction a priority. This is evident by the minimal amount of complaints received by the Parks Department in

comparison to the hundreds of thousands of riders who enjoy rides on carousels overseen by Central Park Carousel Inc. These policies include the refund of tickets to those who do not ride for whatever reason. Any items purchased at the carousel will be replaced or refunded should the customer not be satisfied. The fare for the carousel will be $2.00 per person, per ride; however, it is our intention to offer a group rate of $10.00 with the purchase of six tickets, thus giving the public a discount.

In the three years that we have been maintaining the Flushing Meadow Park Carousel, we have made a commitment to make the carousel available for community and Parks sponsored events, often at our own expense. We stayed open after hours and offered free rides to the public in support of these events. This can be attested to by both Commissioner Cooper and Park Supervisor Simmons, both of whom have expressed their satisfaction and have commented on the vast improvements to the concession since Central Park Carousel Inc. has been involved. In fact, there have not been any public complaints or violations issued by any city agency in the three years that Central Park Carousel Inc. has been involved with the Flushing Meadow Park Carousel.

At both Forest Park and Flushing Meadow Carousels, maintenance will include ensuring the surrounding area, including vegetation, is kept clean and sustained. Central Park Carousel Inc. has a strong commitment to environmental protection. As such, we also plan to partner with the NYC Parks Department and the Forest Park Alliance to initiate and support a program of environmental education in the surrounding park area, offering free rides on the carousel for New York youth groups’ participation in environmentally educational seminars on how to preserve and beautify our parks.

4. OPERATING EXPERIENCE

The primary concern of Central Park Carousel Inc. has always been the preservation of antique carousels. The president of the company, Mr. Sal Napolitano, has forty-one years of experience in the field and with this type of antique carousel in particular. There is no one with more experience or expertise in maintaining and restoring antique carousels than Mr. Napolitano. Mr. Napolitano is currently listed on the New York City Parks Department website as a carousel expert. Central Park Carousel Inc. was associated with the Friedsam Memorial Carousel in Central Park, and under his supervision the carousel was always on the list of top carousels in the country. Central Park Carousel Inc. restored the Friedsam Memorial Carousel and military band organ with funds provided by the Central Park Conservancy.

Central Park Carousel Inc. has also done work on carousels in Riverbank State Park (Manhattan), Willow Brook Park (Staten Island), Forest Park (Queens), and is currently restoring the Flushing Meadow Park Carousel in Queens.

Central Park Carousel Inc. has set the maintenance standards for all other antique carousels; its daily maintenance routine is currently used as a guide for the industry. Safety belts are manufactured, inspected, and replaced on a regular basis. Mechanical parts are oiled and greased methodically, and the carousel is washed and swept daily. Central Park Carousel Inc. has an exemplary safety record. Before each ride, children are properly fastened with safety belts. The staff workers on the carousel are trained by Mr. Napolitano and are licensed by the New York City Building Department. There has never been a serious injury at any carousel under Mr. Napolitano’s supervision.

Central Park Carousel Inc. has shown the ability to successfully operate this concession. As concessionaire of the Friedsam Memorial Carousel from 1982 through 1995, there were no citations or infractions issued by any

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city agency against this company. Mr. Napolitano’s dedication to the restoration and preservation of carousels is legendary. This dedication has been the subject of numerous stories in the media. He has been featured in the Daily News, New York Post, The New York Times, as well as local television stations.*

Mr. Napolitano is a hands on owner and plans to be present daily at either the Forest Park Carousel or Flushing Meadow Carousel to insure their safe and proper operation.

It is the intention of Central Park Carousel Inc. to restore and preserve the carousels in Forest Park and Flushing Meadow Park so that they may enjoyed for future generations.

* See attached documentation.

References

1) Carousel Works, Inc.

225 Central Ave.

Mansfield, Ohio 44905

419-522-7558

Contact: Dan Jones-President

Carousel Works, Inc. is the sole source provider of wooden carousels for New York City. They have manufactured carousels for Willow Brook Park in Staten Island and the Bronx Zoo. The company has also restored a number of carousels in the New York area including the Friedsam Memorial Carousel in Central Park and The Carousel for all Children in Riverbank State Park.

2) Bryant Park Corp.

1065 Avenue of the Americas

Suite 2400

New York, N.Y. 10018

917-438-5126

Contact: Dan Pizark-Vice President of Retail Services

Dan Pizark is Vice President of Retail Services for Bryant Park in Manhattan. Mr. Pizark oversees

operation of the Bryant Park Carousel and is a carousel enthusiast.

3) BAB Organ Company 7867 Wilton Road Richmond, Virginia 23231-8006 646-879-9468 Contact: Gavin McDonough-President

B.A.B. Organ Company specializes in the restoration and repair of carousel organs. Among their clients

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are Kennywood Amusement Park in Pennsylvania and Bush Gardens in Virginia. The company has also

restored the Military Band Organ at the Friedsam Memorial Carousel in Central Park.

4) Chase Bank 3528 East Tremont Ave. Bronx, New York 10465 718-828-7397 Contact; Eddy Santos

Chase Bank is the business bank for Central Park Carousel Inc. and will be assisting the company in

matters, such as payroll and financing.

5. FINANCIAL CAPABILITY

Central Park Carousel has assets exceeding $350,000 from both retail and professional services. Also, personal assets exceed $1,000,000, which includes real estate and personal finances. Further, the line of available credit is $15,000.*

* Please note attached documentation.

9


YEARS

2011

2012

2013

2014

2015

EXPENSES

RENT

$1,500

$6,000

$6,000

$6,000

$7,000

PAYROLL

$12,000

$40,000

$40,000

$40,000

$41,000

PRODUCT

$0

$6,000

$6,000

$6,500

$6,500

INSURANCE

$4,000

$12,500

$12,500

$12,750

$12,750

TAXES

$1,500

$7,000

$7,000

$8,000

$8,000

CAPITAL IMPROVEMENTS

$8,000

$30,000

$33,000

$15,000

$15,000

MISC.

$30,000

$5,000

$5,000

$5,000

$5,000

UTILITIES

$3,000

$8,000

$8,000

$8,500

$8,500

TOTAL

$60,000

$114,500

$117,500

$101,.750

$103,750

.

INCOME

$12,000

$75,000

$75,000

$77,000

$77,000

TOTAL

$12,000

$75,000

$75,000

$77,000

$77,000

10


YEARS

2016

2017

2018

2019

2020

EXPENSES

RENT

$7,500

$8,000

$8,500

$9,000

$9,500

PAYROLL

$41,000

$42,000

$42,000

$43,000

$43,000

PRODUCT

$6,750

$6,750

$7,000

$7,000

$7,000

INSURANCE

$12,750

$13,000

$13,000

$13,000

$13,250

TAXES

$8,500

$8,500

$9,000

$9,000

$8,000


$15,000

$15,000

$15,000

$15,000

$15,000

MISC.

$5,500

$5,500

$6,000

$6,000

$6,000

UTILITIES

$8,500

$9,000

$9,000

$9,000

$9,500

TOTAL

$105,500

$107,750

$109,500

$111,000

$111,250

.

INCOME

$78,000

$78,000

$80,000

$80,000

$80,000

TOTAL

$78,000

$78,000

$80,000

$80,000

$80,000

11


YEARS

2021

2022

2023

2024

2025

EXPENSES

RENT

$10,000

$10,500

$11,000

$11,500

$12,000

PAYROLL

$43,000

$43,000

$44,000

$44,000

$44,000

PRODUCT

$9,500

$9,500

$9,500

$10,000

$10,000

INSURANCE

$13,250

$13,500

$13,500

$14,000

$14,000

TAXES

$9,500

$9,500

$10,000

$10,000

$10,000


$15,000

$15,000

$15,000

$15,000

$15,000

MISC.

$6,500

$6,500

$6,500

$7,000

$7,000

UTILITIES

$9,000

$9,000

$9,500

$9,500

$9,500

TOTAL

$115,750

$116,500

$119,000

$121,000

$121,500

.

INCOME

$82,000

$82,000

$84,000

$84,000

$84,000

TOTAL

$82,000

$82,000

$84,000

$84,000

$84,000

12


YEARS

2012

2013

2014

2015

2016

EXPENSES

RENT

$50,000

$50,000

$52,000

$53,000

$54,000

PAYROLL

$100,000

$100,000

$100,000

$105,000

$105,000

PRODUCT

$20,000

$20,000

$21,000

$21,000

$21,000

INSURANCE

$12,500

$12,500

$12,750

$12,750

$12,750

TAXES

$40,000

$40,000

$41,000

$41,000

$41,000


$35,000

$15,000

$35,000

$35,000

$35,000

MISC.

$5,000

$5,000

$5,000

$5,000

$5,000

UTILITIES

$10,000

$10,000

$10,000

$10,500

$10,500

TOTAL

$272,500

$252,500

$276,750

$283,250

$284,000

.

INCOME

$310,000

$315,000

$315,000

$320,000

$320,000

TOTAL

$310,000

$315,000

$315,000

$320,000

$320,000

13


YEARS

2017

2018

2019

2020

2021

EXPENSES

RENT

$55,000

$56,000

$57,000

$58,000

$59,000

PAYROLL

$105,000

$108,000

$108,000

$110,000

$110,000

PRODUCT

$22,000

$22,000

$22,000

$23,000

$23,000

INSURANCE

$13,000

$13,000

$13,000

$13,250

$13,250

TAXES

$41,500

$41,500

$42,000

$42,000

$42,000


$35,000

$15,000

$15,000

$15,000

$15,000

MISC.

$5,500

$5,500

$5,500

$6,000

$6,000

UTILITIES

$11,000

$11,000

$11,500

$11,500

$12,000

TOTAL

$287,000

$272,000

$274,000

$278,750

$280,250

.

INCOME

$310,000

$315,000

$315,000

$315,000

$320,000

TOTAL

$310,000

$315,000

$315,000

$315,000

$320,000

14


YEARS

2022

2023

2024

2025

EXPENSES

RENT

$60,000

$61,000

$62,000

$63,000

PAYROLL

$110,000

$112,000

$112,000

$112,000

PRODUCT

$23,000

$24,000

$24,000

$24,000

INSURANCE

$13,500

$14,000

$14,000

$14,000

TAXES

$42,500

$42,500

$43,000

$43,000


$15,000

$15,000

$15,000

$15,000

MISC.

$6,500

$6,500

$7,000

$7,000

UTILITIES

$10,000

$10,000

$10,000

$10,500

TOTAL

$280,500

$285,000

$287,00

$288,500

.

INCOME

$330,000

$330,000

$335,000

$335,000

TOTAL

$330,000

$330,000

$335,000

$335,000

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For the year 2011, Misc. includes $22,500 security bond required by Parks, as well as professional services and operational costs. After 2011 Misc. includes professional services, office supplies, cleaning equipment, and other operational costs.

Product is for both food and souvenir carts.

Taxes include sales tax as well as payroll tax.

Capital improvements include restoration, restoration supplies, and equipment purchases, organ restoration for both carousels, new drive unit for the Flushing Meadow Park Carousel, new food and souvenir carts, and equipment for the snack bar at the Forest Park Carousel.

Central Park Carousel Inc. estimates the cost of the insurance required by Parks to be $4,000 for the three months that Forest Park will be in operation during 2011. The insurance cost after the initial season represents one-half of the premium to insure both carousels.

Although there is no way of predicting what future costs will be Central Park Carousel Inc. anticipates modest increases in operational costs as well as income.

Central Park Carousel, Inc 1055 Brinsmade Ave. Bronx, New York 10465 646-823-3990 Corporate Officers: Sal Napolitano President Mary Ann Napolitano Vice President

proposal to run queens carousels

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