HomeMy WebLinkAbout2024.09.09 EDAPE conomic Development
Authority
City Hall Council Chambers
S eptember 9, 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 approve the minutes.
b.Heritage Center F ood S ervice Contract
- Motion to approve authorization by the EDA for the executive director to
enter into this service agreement Mintahoe Catering & Events to provide
food management services.
4.Commission Consideration Items
5.Adjournment
Economic Development Authority
DAT E:9/9/2024
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 approve the 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
8.12 Minutes 9/4/2024 Backup M aterial
8/12/24 -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
AUGUST 12, 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 8:31 p.m.
2. ROLL CALL
President April Graves and Commissioners Marquita Butler, Kris Lawrence-Anderson, Dan
Jerzak, and Teneshia Kragness. Also present were City Manager Reggie Edwards, Assistant City
Manager/City Clerk Barb Suciu, and City Attorney Siobhan Tolar.
3. APPROVAL OF AGENDA AND CONSENT AGENDA
Commissioner Lawrence-Anderson moved and Commissioner Lragness seconded to approve the
Agenda and Consent Agenda, and the following item was approved:
3a. APPROVAL OF MINUTES
1. July 8, 2024 – Regular Session
3b. RESOLUTION APPROVING THE MICRO-FAÇADE GRANT AWARD TO
OGA MADAM
Motion passed unanimously.
4. COMMISSION CONSIDERATION ITEMS
5. ADJOURNMENT
Commissioner Jerzak moved and Commissioner Kragness seconded adjournment of the Economic
Development Authority meeting at 8:32 p.m.
Motion passed unanimously.
Economic Development Authority
DAT E:9/9/2024
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, D irector of Parks and Recrea-on
S U B J E C T:H eritage C enter Food S ervice Contract
Requested Council A con:
- Moon to approve authorizaon by the E DA for the execuve director to enter into this service
agreement M intahoe C atering & Events to provide food management services.
B ackground:
The a2ached res olu-on represents an agreement between A G R E E M E N T betw een the
Economic D evelopment Authority in and for the C ity of B rooklyn C enter, a poli-cal subdivision of the State of
Minnesota with its principal office located at 6301 Shingle C reek Parkway, B rooklyn C enter, Minnesota, 55430,
and Mintahoe, I nc. a Minnesota corpora-on d/b/a as Mintahoe C atering & Events, with its principal office
located at 2850 Anthony L ane South, Minneapolis, Mn 55418.
Brooklyn Center E DA ow ns the Brooklyn C enter H eritage C enter, w hich is a conven-on center and exhibit
hall.
Brooklyn Center E DA buildings are equipped w ith full kitchens and banquet space for catered affairs and
other special events, collec-vely the "C atering Facility".
The Brooklyn C enter E DA des ires to s ecure the s ervices of Mintahoe C atering & Events in providing
management services.
Mintahoe C atering & Events is experienced in the management and opera-on of commercial food and
beverage opera-ons and is in the business of providing management and consultant services to such enterprises.
T hereby, staff request authoriza-on by the E DA for the execu-ve director to enter into this agreement.
B udget I ssues:
The H eritage C enter shall receive all funds from patrons including payments for food, beverages and all
menu-related charges . I n accordance w ith 8(d), M intahoe Catering & Events shall trans fer all cas h receipts
from cash bars and concession sales to O wner. O w ner s hall have control of all S ales Revenues .
(a) The Food and Beverage Revenue s hall be allocated 75% to M intahoe Catering & Events and 25% to
H eritage Center.
(b) S ervice Charge Revenue shall be allocated 13/24 to M intahoe Catering & Events and 11/24 to H eritage
Center.
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 9/6/2024 Cover Memo
Draft Proposal
AGREEMENT FOR FOOD SERVICE MANAGEMENT
AGREEMENT dated September 11, 2024, by and between the Economic
Development Authority in and for the City of Brooklyn Center, a political subdivision
of the State of Minnesota with its principal office located at 6301 Shingle Creek Parkway,
Brooklyn Center, Minnesota 55430 ("Owner") and Mintahoe, Inc. a Minnesota corporation
d/b/a as Mintahoe Catering & Events, with its principal office located at 2850 Anthony Lane
South, Minneapolis, Mn 55418 ("Manager").
WITNESSETH
WHEREAS, Owner is the owner of a convention center and exhibit hall called The
Heritage Center of Brooklyn Center ("the Buildings") in Brooklyn Center, Minnesota; and ·
WHEREAS, Owner's Buildings are equipped with full kitchens and banquet space for
catered affairs and other special events, collectively the "Catering Facility"; and
WHEREAS, Owner desires to secure the services of Manager in providing management
services for Owner's Catering Facilities as desired by Owner; and
WHEREAS, Manager is experienced in the management and operation of
commercial food and beverage operations and is in the business of providing management
and consultant services to such enterprises.
NOW, THEREFORE, the parties hereby agree as follows:
1. ENGAGEMENT OF MANAGER: Subject to the terms of this Agreement, Owner
hereby engages Manager and grants Manager the exclusive right to supervise and direct
the management and operation of Owner's Catering Facility described in Exhibit A
attached hereto; provided, however, Owner reserves the right to use alternate third-party
caterers for City of Brooklyn Center sponsored events only. Manager agrees to operate
the Catering Facility in a manner consistent with high quality catering facilities in the
Twin Cities as determined by Owner.
Manager further agrees to consult with Owner to keep Owner advised of all policy matters
relating to the Catering Facility. Subject to the foregoing and to the provisions of this
Agreement, Manager shall have the control and discretion with regard to the operation and
management of the Catering Facility for customary purposes and the right to determine all
operating policies affecting the appearance of the Catering Facility, the standards of operation,
the quality of service, and all other matters affecting customer opinion of the Catering Facility.
Manager agrees to obtain the approval of the Owner with respect to all major programs and
policy matters which would have a material and substantial effect upon the reputation and
character of the Catering Facility. Owner has engaged Manager herein as an
Independent Contractor. Notwithstanding the foregoing, if Owner utilizes third -party
caterers, Manager will be relieved of the foregoing duties, Owner will contract with
such alternate providers for its catering services directly and will indemnify Manager
for any claims against person or property as set forth herein.
2. FISCAL YEAR AND ACCOUNTING PERIODS: For purposes of this Agreement the parties have
agreed to enter into a temporary, contract period from September 11, of 2024 through
December 31, of 2024.
3. EQUIPMENT: Owner will furnish, at its own expense and for the use of Manager, all
furniture, fixtures and other equipment necessary for the performance of the services
by Manager including, but not limited to, china, glassware, flatware, trays, utensils and
other smallwares, and office furniture and equipment.
Owner will annually allocate nine percent (9%) of the total par value of the annual smallware
inventory for the purpose of replenishing smallwares. Manager will continuously evaluate the
physical appearance of the Catering Facility premises and the furniture, fixtures and equipment
therein, and will recommend to Owner any changes which seem necessary or advisable
to Manager. In connection therewith, Manager will recommend correction of any health
or safety hazard immediately upon the discovery of such hazard. If for any reason,
Manager's inventory of smallwares is not sufficient for any specific event, the Manager,
with prior approval of Owner shall rent smallwares necessary for such event and rental
cost shall be Included as a Cost of Business.
Manager, at Owner's sole expense, will maintain and repair all such equipment and,
from time to time, will replace and furnish such additional equipment as may be
reasonably necessary for the furnishing of services by Manager. Any expenditure for
furniture, fixtures and other equipment for the Catering Facility shall be individually
approved by the Owner. Upon termination of this Agreement, Manager agrees to return
to Owner all equipment furnished to it at any time in good condition, allowing for
ordinary wear and tear, reasonable loss and breakage of smallwares, and damage by fire
or the elements.
4. a. OWNER REPRESENTATIVE: Owner agrees to appoint one employee of Owner to whom
Manager will be responsible regarding Manager's obligations and under this Agreement. The
appointed Owners representative is named in Exhibit C attached hereto.
b. MANAGER REPRESENTATIVE: Manager agrees to appoint one of its employees as its
immediate representative for the Catering Facility premises. The appointed Manager
Representative is named in Exhibit C attached hereto.
5. UTILITIES: Owner will procure, at its sole expense, all light, power, heat, ai r conditioning, hot
and cold water, local telephone service, pest exterminating service, HVAC maintenance and
garbage and trash disposal service necessary for the Catering Facility premises.
6. CLEANING THE CATERING FACILITY PREMISES: At Owner's sole expense, Manager agrees to
supervise the cleaning and maintenance on a regular and consistent basis of the following
portions of the Catering Facility premises: the entire kitchen, the dishwashing area, exhaust
vents and hoods, plate-up areas and those areas used for clearing after any catered event.
7. HOURS OF OPERATION AND PREMISES: The hours during which the Catering Facility shall be
open for business shall be as designated by Owner.
8. DUTIES OF MANAGER: Manager agrees to supervise the performance of all functions
reasonably required for the proper operation and management of the Catering Facility
including, without limitation, the following:
(a) Operate food, dining and beverage services within the Catering Facility premises and assist
the Owner’s Sales personnel in the sales of food and beverage services to patrons.
(b) Hire, train and supervise all personnel, it being understood that all personnel shall be
employed in the name of Manager, or an affiliate of Manager. Manager shall provide and
designate one individual to function as the supervisor for all of Manager's employees providing
services under this Agreement. Such supervisor shall have the authority to act on behalf of the
Manager in all matters relating to daily operational activities of Manager under this Agreement.
At times when supervisor is not available, these duties and responsibilities may be assigned to
other qualified employees of Manager with Manager informing Owner of the assignment. All
hiring, assignment of duties and termination of any employees shall be under direction of the
Manager. Owner may direct that any one or more staff members not be assigned to provide
services to Owner under this Agreement. Manager shall be responsible f or all disbursements to
employees of wages and gratuities, all withholdings required by law to be taken from income
paid to employees, and the proper payment and reporting to governmental taxing authorities.
(c) Prepare and serve food consistent with the variety, type and quality found in similar high
quality Twin Cities catering facilities as determined by Owner;
(d) Collect for food and beverages at the concession stand and cash bars and hold the proceeds
in the safe in the catering kitchen and deliver to Owner's office on the next business day, and
provide a price breakdown of revenue categories for each entity to Owner. Owner will make
payment as appropriate to taxing authorities;
(e) Provide all accounting and reporting functions for Manager’s business operation, Such
accounting services shall be provided at the expense of Manager;
(f) Provide necessary administration and supervisory services for the Catering Facility;
(g) Secure and maintain in force insurance coverage insuring both Owner and Manager (naming
Owner as an additional insured) during the term of this Agreement in accordance with Section
10, subject to the availability of continuation of said coverage upon renewals and subject to
Owner's approval of increased policy premium upon renewals. Attached hereto and marked
Exhibit D, is a Schedule of insurance for the Catering Facility which has been independently
reviewed by Owner and Manager and hereby approved by both parties. The representative of
the Owner shall be entitled to communicate directly with the insurance agent, or agents, at all
times hereafter with the prior approval of the Manager regarding any matters pe rtaining to the
insurance policies and coverage itemized in Exhibit D including, but not limited to premium,
coverage, deductibles, claims and renewals. Coverage shall be carried with a carder holding a
Certification of Authorization (licensed) to do business in the State of Minnesota. Carriers shall
have an A.M. Best's rating of at least B+. Evidence of such insurance shall be in the form of a
Certificate of insurance (I.S.O. Accord Form) to be sent to the Owner's representative. This
certificate shall carry a condition that no cancellation or reduction in coverage may be made
without thirty days prior written notice sent to the certificate holder;
(h) Comply with all applicable federal, state and local laws, regulations and ordinances related
to Manager's services and obtain all necessary permits and licenses, taking special care to
observe all conditions relating to the on-sale liquor license issued to Owner;
(i) Prepare and submit for Owner's approval no later than July I of each year, annual sales and
capital expenditures budgets for the upcoming fiscal year;
(j) Manager has skilled personnel who will work in conjunction with Owner personnel to create
Sales and Marketing plans and execute those plans with the goal of attracting more patrons to
the Catering Facility. Manager’s support will include, but not be limited to, the inclusion of the
Buildings and Catering Facility in Manager’s marketing for other venues where Manager has
Exclusive Catering Agreements, inclusion of the Building and Catering Facility in Manager’s
social media marketing which is a critical element of Marketing in today’s environment,
inclusion of Owner’s Sales and Marketing Personnel in Manager’s Sales Meetings and
Marketing meetings including access to Manager’s Sales Management Personnel and
Manager’s Marketing Personnel. Manager will provide its extensive Sales and Marketing skills
to cooperate with Owner personnel for the purpose of increasing sales at the Catering Facility.
Create an enhanced plan with Owner to provide tastings for patrons and potential patrons with
greater sales appeal with the intention of increasing Sales at the Catering Facility. Manager
participation and efforts that are intended to increase sales at the Catering Facility will be
carried out by Manager without cost to Owner and prior approval by Owner. Manager will
work with Owner to host an annual Open House at the Buildings and Catering Facility with
Manager’s participation carried out at Manager’s expense. All major promotions or programs
shall be subject to the approval of Owner;
(k) Comply with applicable requirements of the Uniform Contracting Act, Section 471.345 of
Minnesota Statutes in connection with the acquisition of property for the Catering Facility;
(l) Assure that catering staff are professionally attired in a uniform to be agreed upon by Owner
and Manager. Staff shall be properly groomed and wearing approved shoes and name tags.
Such attire shall be mandatory when on the event premises; and
(m) In the event refunds or discounts to customers of catering operations are required due to
complaints about unsatisfactory service by Manager, such refunds or discounts shall be made
by Manager, from its own funds at its own expense.
9. PERSONNEL: All personnel employed in connection with the operation of the Catering
Facility shall be subject, from time to time, to such health examination as any proper
governmental authority may require at Owner's expense. Manager agrees to develop and
implement emergency first aid procedures for all employees.
10. INDEMNITY AND INSURANCE: Manager agrees to indemnify, defend and hold Owner
harmless in connection with any liabilities, claims, obligations, demands, causes of action or
suits, whether based in tort, contract, per statute or other basis arising out of the Manager's
operation of Catering Facility and due to the negligence of the Manager. Owner agrees to
indemnify, defend and hold Manager harmless in connection with any liabilities, claims,
obligations, demands, causes of action or suits whether based in tort, contract, per statute or
other basis arising out of the Catering Facility and due to the negligence of the Owner. Nothing
in this Section 10 shall be deemed a waiver by the Owner of the limitations o n the Owner's
liability set forth in Minnesota Statutes, Chapter 466; and the Owner's obligation to indemnify
Manager shall be limited to the amounts set forth therein. Owner and Manager agree that
neither party will make any claim against or seek to recover from the other for any loss or
damage to either party's property or the property of others or business interruption in so far as
the same may be covered by fire or extended coverage or other insurance. Notwithstanding the
foregoing, Owner will defend and hold Manager harmless in connection with any liabilities,
claims, obligations, demands, causes of action or suits whether based in tort, contract, per
statute or other basis arising out of a third-party caterer's use of the Catering Facility and/or
due to the acts of such third-party caterer.
Pursuant to Section 8(g) of this Agreement, Manager shall procure and maintain the following
insurance:
(a) Workers Compensation insurance coverage as provided by state law applicable to
employees, agents, volunteers and assigns of Manager;
(b) Commercial General Liability coverage including Bodily Injury, Personal Injury Liability,
Property Damage, Contractual Liability, and Products coverage with limits of $1,000,000 per
occurrence and $2,000,000 in the aggregate;
(c) Automobile Insurance, covering for all owned, non -owned and hired vehicles, the minimum
liability coverage shall be $1,000,000 per accident or occurrence;
(d) Liquor Liability Insurance in an amount not less than $1,000,000 per occurrence and
$2,000,000 in the aggregate.
13. FOOD AND BEVERAGE SALES: "Food and Beverage Sales" is hereby defined as the total
revenues and receipts derived from sales made on or from the Catering Facility premises, as
determined by the accrual method of accounting. Food and Beverage Sales shall not include
applicable sales, excise or similar taxes or gratuities other than standard service charges paid to
the Catering Facility's employees, rental fees or building surcharges payable directly to Owner.
14. REVENUE SHARING:
Owner shall receive all funds from patrons including payments for food, beverages and all
menu-related charges. In accordance with 8(d), Manager shall transfer all cash receipts from
cash bars and concession sales to Owner. Owner shall have control of all Sales Revenues.
(a) The Food and Beverage Revenue shall be allocated 75% to Manager and 25% to Owner.
(b) Service Charge Revenue shall be allocated 13/24 to Manager and 11/24 to Owner.
15. SETTLEMENT OF ACCOUNTS:
Owner shall prepare and submit to Manager a statement of Sales Revenues for the prior
Accounting Period within fifteen (15) working days after the ending of each Accounting Period.
Owner shall wire transfer funds to Manager bi-weekly or may take (up to 35 days) following the
Manager submission of the invoices/statement.
Manger submission of invoices/statement,
Owner will handle all billing and collection for Catering Facility events. Owner is responsible for
collection of all revenue. Manager's share of revenue is the responsibility of Owner if third
parties fail to pay Owner for catering events.
16. COMMENCEMENT OF SERVICES: Manager agrees to commence the performance of
services under this Agreement on the first day of the term of this Agreement, and services shall
continue to be provided during the term of this Agreement until this Agreement is terminated
at any time for any reason by one of the parties in accordance with the provisions of this
Agreement.
17. TERM AND TERMINATION:
(a) The term of this Agreement shall be four months commencing September 11, 2024 The
Agreement may be extended upon mutual agreement of the parties. However, this Agreement
may be terminated at any time by either party if the other party shall fail to keep, observe or
perform any material covenant, agreement, term or provision of this Agreement and such
default shall continue for a period of ten (10) days after written notice thereof by the party
giving notice to the party in default.
(b) This Agreement may be terminated by the Owner without cause at any time by delivery of
sixty (60) days written notice delivered to Manager, and may be terminated by Manager
without cause at any time by delivery of one hundred twenty (120) days written notice
delivered to Owner.
(c) In the event of dissolution, termination of existence, business failure, appointment of a
receiver, assignment for the benefit of creditors or the commencement of any proceeding
under any bankruptcy or insolvency law, or the service of any attachment, levy, or similar
process involving either Manager or Owner, the other party may at its sole option immediat ely
terminate this Agreement upon giving notice as provided in Paragraph 21.
(d) Notwithstanding any other provision herein to the contrary, if the right of the Owner to
enter into and perform its obligations under this Agreement is enjoined by a court of
competent jurisdiction, the period during which such injunction is effective shall be deemed not
to be a part of the term of this Agreement, and the Manager shall not be entitled to any
compensation for any resulting reduction of the term of this Agreemen t. In addition, if the right
of the Owner to enter into and perform its obligations under this Agreement is directly
or indirectly challenged in a court of law, then the Owner may at its discretion, terminate this
Agreement upon delivery of not less than fifteen (15) days' notice to Manager.
18. ATTORNEY FEES: In the event of a controversy between the parties pursuant to this
Agreement requiring the institution of legal proceedings by one party against the other, each
party in such proceeding shall be responsible for payment of its own attorney's fees for services
rendered in connection with the controversy and proceedings unless a court of competent
jurisdiction determines pursuant to Minnesota Statutes, Section 549.21 that a claim is brought
or defended in bad faith, asserts a claim or defense that is frivolous and that is costly to the
other party assets an unfounded position solely to delay the ordinary course of proceedings or
to harass or commits a fraud upon the court. Legal expenses incurred by Manager, with consent
of Owner, in connection with the legal affairs between the Owner and third parties (as
contrasted to legal controversies between Owner and the Manager) shall be paid for by Owner.
19. ASSIGNMENT: This Agreement shall not be assignable by either party without the prior
written consent of the other party.
20. NOTICES: All written notices provided for in this Agreement shall be given by United States
certified or registered mail, postage prepaid and return receipt requested, and addressed as
follows:
IF TO OWNER
Economic Development Authority
Of the City of Brooklyn Center
6301 Shingle Creek Parkway
Brooklyn Center, Minnesota 55430
Attention: Reginald Edwards
And
Economic Development Authority
Of the City of Brooklyn Center
6155 Earle Brown Drive
Brooklyn Center, Minnesota 55430
Attention: Cordell Wiseman
IF TO MANAGER
Mintahoe Catering & Events
2850 Anthony Lane South
Minneapolis, Minnesota 55418
Attention: Jim McMerty, CEO
21. GOVERNING LAW: This Agreement shall be governed by the laws of the State of
Minnesota.
22. NATURE OF RELATIONSHIP: Nothing contained in this Agreement shall be construed to
create a partnership or joint venture between Owner and Manager. Save and except for the
powers specifically granted to the Manager by this Agreement, Manager shall have no authority
to enter into contracts or agreements on Owner's behalf without first obtaining Owner's
written approval.
23. MODIFICATION: ENTIRE AGREEMENT: WAIVER: This Agreement cannot be modified orally,
or by course of conduct, but only in writing signed by a duly authorized officer or agent of each
party. This Agreement contains the entire understanding of the parties with respect to the
subject matter. No waiver of any default shall be construed to be or constitute waiver of any
subsequent defaults.
24. RESTRICTIONS ON ADVERTISING: The Owner shall not use paid advertising for the Catering
Facility which uses the name of the Manager or any of its related agencies w ithout the prior
consent of the Caterer.
25. PERFORMANCE BOND: Manager shall provide a performance bond, issued by a surety
which is authorized to do business in Minnesota and acceptable to Owner, issued in the amount
of Three Hundred Fifty Thousand Dollars ($350,000) to assure the full and faithful performance
of the Manager under this Agreement.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day
and year first above written.
ECONOMIC DEVELOPMENT Mintahoe, Inc.
AUTHORITY IN AND FOR THE d/b/a MINTAHOE CATERING & EVENTS
CITY OF BROOKLYN CENTER
BY: ______________________ BY: ________________________
NAME: ___________________ NAME: James McMerty________
TITLE: ____________________ TITLE: ______________________
DATE: ____________________ DATE: _______________________
Exhibit B
OTHER LOCATIONS
Exhibit C
Owner Representative:
Name: Cordell Wiseman
Telephone Number: 763-569-3407
Cell Phone: 763-238-9781
Manager's Representative:
Name: Jim McMerty Founder, Officer and Board Member
Direct Phone: 612-767 4104
EXHIBIT D
Mintahoe, Inc. d/b/a Mintahoe Catering & Events
James McMerty
Direct Phone 612 767 4104
Suzi McMerty Shands
Cell Phone 612 532 6487
Shawn McMerty
Cell Phone 612 990 2452