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HomeMy WebLinkAbout2024.06.10 EDAPE conomic Development Authority City Hall Council Chambers J une 10, 2024 AGE NDA 1.Call to Order The City Council requests that attendees turn off cell phones and pagers during the meeting. A copy of the full C ity Counc il packet, including E D A (E conomic Development Authority ), is available to the public. The packet ring binder is located at the entrance of the council chambers. 2.Roll Call 3.Approval of Consent Agenda The following items are considered to be routine by the Economic Development Authority (E D A) and will been acted by one motion. There will be no separate disc ussion of these items unless a Commissioner so requests, in whic h event the item will be removed from the c onsent agenda and considered at the end of Commission Consideration I tems. a.Approval of Minutes - Motion to approval minutes. 4.Commission Consideration Items a.Resolution A pproving the Termination of the A greement for Food Service Management with F lik I nternational Corp - Approve resolution authorizing the Economic Development Authority Executive Director to terminate the food service management agreement between the Heritage Center of Brooklyn Center and Flik International Corp. 5.Adjournment Economic Development Authority DAT E:6/10/2024 TO :C ity C ouncil F R O M:D r. Reggie Edwards, City Manager T H R O U G H :Reggie Edw ards , D eputy City Manager BY:Barb S uciu, A ssistant City Manager/C ity C lerk S U B J E C T:A pproval of Minutes Requested Council A con: - Moon to approval minutes. B ackground: I n accordance with M innesota S tate S tatute 15.17, the official records of all mee5ngs must be documented and approved by the governing body. B udget I ssues: N/A I nclusive C ommunity Engagement: - None A nracist/Equity Policy Effect: - None S trategic Priories and Values: AT TA C H M E N TS : D escrip5on U pload D ate Type M inutes 1.8.24 6/5/2024 Backup M aterial 01/08/24 -1- DRAFT MINUTES OF THE PROCEEDINGS OF THE ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA REGULAR SESSION JANUARY 8, 2024 CITY HALL – COUNCIL CHAMBERS 1. CALL TO ORDER The Brooklyn Center Economic Development Authority (EDA) met in Regular Session called to order by President April Graves at 7:55 p.m. 2. ROLL CALL President April Graves and Commissioners Marquita Butler, Dan Jerzak, and Teneshia Kragness. Commissioner Kris Lawrence-Anderson was absent and excused. Also present were Executive Director Reggie Edwards, Zoning Administrator Ginny McIntosh, Assistant City Manager/City Clerk Barb Suciu, and City Attorney Jason Hill. Mayor April Graves and Councilmembers Marquita Butler, Kris Lawrence-Anderson, Dan Jerzak, and Teneshia Kragness. Also present were City Manager Reggie Edwards, Zoning Administrator Ginny McIntosh, Assistant City Manager/City Clerk Barb Suciu, and City Attorney Jason Hill. 3. APPROVAL OF AGENDA AND CONSENT AGENDA Commissioner Jerzak moved and Commissioner Kragness seconded to approve the Agenda and Consent Agenda, and the following item was approved: 3a. APPROVAL OF MINUTES 1. December 4, 2023 – Regular Session 3b. RESOLUTION NO. 2024-01; ELECTING OFFICERS FOR THE ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF BROOKLY CENTER Motion passed unanimously. 4. COMMISSION CONSIDERATION ITEMS None. _/__/24 -2- DRAFT 5. ADJOURNMENT Commissioner Butler moved and Commissioner Jerzak seconded adjournment of the Economic Development Authority meeting at 7:57 p.m. Motion passed unanimously. Economic Development Authority DAT E:6/10/2024 TO :C ity C ouncil F R O M:D r. Reggie Edwards, City Manager T H R O U G H :N/A BY:C ordell W is eman, Recrea+on D irector S U B J E C T:Res olu+on A pproving the Termina+on of the A greement for Food S ervice M anagement with F lik I nterna+onal Corp Requested Council A con: - A pprove resolu on authorizing the Economic D evelopment A uthority Execu ve D irector to terminate the food service management agreement betw een the H eritage C enter of Brooklyn C enter and F lik I nterna onal C orp. B ackground: I n accordance with the terms of the agr eement between the H eritage Center and F lik I nterna+onal Corp, the agreement w ill terminate on J anuar y 1, 2026. T he agreement s+pulates that the agreement may be terminated pr ior to the termina+on date by E DA w ithout caus e at any +me by deliv er y of s ixty (6 0 ) days w ri8en no+ce delivered to M anager. Bas e on r ev iewing the H eritage C enter budget expens es , revenues , the F lik contract, revenues , expens es and S ale E xpense payback to the H eritage C enter/City along with feedback receiv ed from the F inance department staff has determine that T he H er itage C enter can no longer operate and be profitable under the current condi+ons and issues w ith F lik I nterna+onal C orp. Contractual I ssues : D eteriora+on of staff rela+ons (both organiz a+on s taff) F lik Exces s ive invoices charges (not providing receipts or suppor+ng documents for charges) I ncreas ing and unexplained charges outside of the scope of the contract I ncreas ing opera+ng expens es for F lik services S ale Expense Target Payback 70% to The H eritage C enter/City T he contract sitpulates that Flik’s costs shall not exceed 70%. B ased on finance department's calcula+ons, F L I K ended the year 2023 at 83.25%. T he 13.25% difference in c o st results in F L I K contractually owing the Heritage C enter/C ity $343,647.70 for the year 2023. Staff will seek to recover the funds. I n review of this contr actual obliga+on da+ng back to the year 2020, F lik has not appr opriately paid the H eritage C enter in exces s of $1,000,000. F lik has over charged the H eritage C enter over the following Years (contractually 70% cap on cost): 2020 115.55% 2021 102.00% 2022 83.15% I t is the recommenda+on of staff that it is in the best interest of the E DA to terminate the agreement. N ext steps wo uld be to onboard a tempo rary food service provider while and forma l Request Fo r Propo sals is conducted. Staff have iden+fied two viable temporary food service providers. B udget I ssues: I nclusive C ommunity Engagement: A nracist/Equity Policy Effect: S trategic Priories and Values: AT TA C H M E N TS : D escrip+on U pload D ate Type Res olu+on 6/4/2024 Resolu+on Le8er Commissioner introduced the following resolution and moved its adoption: EDA RESOLUTION NO. 2024- RESOLUTION APPROVING THE TERMINATION OF THE AGREEMENT FOR FOOD SERVICE MANAGEMENT WITH FLIK INTERNATIONAL CORP WHEREAS, on January 1, 2020, the Economic Development Authority of Brooklyn Center, Minnesota (the “EDA”), the owner and operator of The Heritage Center of Brooklyn Center (the “Heritage Center”), entered into a Food Service Management agreement (the “Agreement”) with Flik International Corp (the “Manager”) to provide management services for the Heritage Center’s catering facilities for certain events; and WHEREAS, in accordance with the term of the Agreement, the Agreement will terminate on January 1, 2026; and WHEREAS, Section 18(b) the Agreement provides that the Agreement may be terminated prior to the termination date by the EDA “without cause at any time by delivery of sixty (60) days written notice delivered to Manager”; and WHEREAS, City of Brooklyn Center (the “City”) staff and Heritage Center staff have advised the EDA that it would be in the best interests of the EDA to terminate the Agreement; and WHEREAS, the EDA has determined that it is in the best interests of the City and the EDA to terminate the Agreement. NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Economic Development Authority of Brooklyn Center, Minnesota (the “Board”), as follows: 1. The EDA hereby approves and authorizes the termination of the Agreement pursuant to Section 18(b) of the Agreement. The termination is effective sixty (60) days after notice is provided to the Manager. 2. The Executive Director and City staff are authorized and directed to provide notice of termination to the Manager as set forth in the Agreement. 3. The appropriate EDA and City officials are authorized to execute all appropriate documents on behalf of the EDA to take all steps and actions necessary or convenient to accomplish the intent of this Resolution. 4. The Executive Director and City staff are authorized and directed to prepare and present to the EDA options to replace the services provided by the Manager. Date President The motion for the adoption of the foregoing resolution was duly seconded by Commissioner and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted.