HomeMy WebLinkAbout2023-113 CCRMember Jerzak introduced the following resolution and moved its adoption:
RESOLUTION NO. 2023-113
A RESOLUTION APPROVING A PAYMENT PLAN AND AN AMENDMENT TO
THE COMMERCIAL LEASE AGREEMENT WITH PHU BIA LIMITED LIABILITY
COMPANY FOR PROPERTY LOCATED AT 1350 SHINGLE CREEK CROSSING
WHEREAS, on or about February 15, 2022, the City of Brooklyn Center ("City") and
Phu Bia Limited Liability Company ("Lessee") entered into a Commercial Lease Agreement
("Agreement") with regard to the property located at 1350B Shingle Creek Crossing in the City
of Brooklyn Center ("Premises"), which is owned by the City; and
WHEREAS, in conjunction with the Agreement, on February 15, 2022, the Lessee
entered into a Loan Agreement with the Economic Development Authority of Brooklyn Center
to assist with the costs of renovation and furnishing of certain equipment for the Premises,
including a walls -in cooler, restrooms, sidings and polishing of exiting concrete floor, all of
which was deemed necessary for the operation of a retail store for the distribution of produce;
and
WHEREAS, the Lessee experienced significant difficulties completing the renovation of
the Premises and as a result, was unable to commence retail operations on the Premises until
October 31, 2023; and
WHEREAS, due to the delay in commencing retail operations, the Lessee was unable to
make rent payments under the Agreement, which were to commence on August 1, 2022; and
WHEREAS, the Lessee has agreed to implement a payment plan that would allow the
City to recover past due rent and late fees and ensure that all amounts are recovered by the City
by the Agreement's renewal date of January 31, 2027; and
WHEREAS, the City's review of the Agreement revealed additional terms and conditions
requiring amendment and clarification, and the Lessee has agreed to adopt an amendment to the
Agreement to provide for such amendment and clarification; and
WHEREAS, the City and the Lessee desire to enter into the Payment Plan Agreement
and Amendment to Commercial Lease Agreement to allow the Lessee to continue commercial
retail operations and to allow the City to recover all costs due and owing under the Agreement.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Brooklyn
Center as follows:
1. The City Council hereby approves and adopts the Payment Plan Agreement
attached hereto and incorporated herein as Exhibit A, in substantially the form
presented to the City Council, together with any related documents necessary in
connection therewith, subject to modifications that do not alter the substance of the
Payment Plan Agreement.
1
2. The City Council hereby approves and adopts the Amendment to Commercial
Lease Agreement attached hereto and incorporated herein as Exhibit B, in
substantially the form presented to the City Council, together with any related
documents necessary in connection therewith, subject to modifications that do not
alter the substance of the Amendment to Commercial Lease Agreement.
3. The appropriate City officials are authorized to execute all appropriate documents
on behalf of the City to facilitate the agreements and to take all steps and actions
necessary or convenient to accomplish the intent of this Resolution
4. Upon execution and delivery of the agreements, the officers and employees of the
City are hereby authorized and directed to take or cause to be taken such actions as
may be necessary on behalf of the City to implement the agreements.
November 27 2023
Date
ATTEST: ORU�6&A
City Clerk
The motion for the adoption of the foregoing resolution was duly seconded by member
Kragness
and upon vote being taken thereon, the following voted in favor thereof:
Butler, Jerzak, Kragness
and the following voted against the same: none.
whereupon said resolution was declared duly passed and adopted.
FA
EXHIBIT A
Payment Plan Agreement
[attached hereto]
A-1
EXHIBIT B
Amendment to
Commercial Lease Agreement
[attached hereto]
171,01