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Home My WebLink About2009 07-13 EDAPEDA MEETING City of Brooklyn Center July 13, 2009 AGENDA 1. Call to Order —The EDA requests that attendees turn off cell phones and pagers during the meeting. A copy of the full City Council packet, including EDA (Economic Development Authority), is available to the public. The packet ring binder is located at the front of the Council Chambers by the Secretary. 2. Roll Call 3. Approval of Agenda and Consent Agenda —The following items are considered to be routine by the Economic Development Authority (EDA) and will be enacted by one motion. There will be no separate discussion of these items unless a Commissioner so requests, in which event the item will be removed from the consent agenda and considered at the end of Commission Consideration Items. a. Approval of Minutes 1. June 22, 2009 Regular Session 4. Commission Consideration Items a. Resolution Authorizing the City of Brooklyn Center Economic Development Authority (EDA) to Enter Into an Amended Agreement with Flik International Corp for Food Service Management at the Earle Brown Heritage Center Requested Commission Action: Motion to adopt resolution. 5. Adjournment EDA Agenda Item No. 3a 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 JUNE 22, 2009 CITY HALL COUNCIL CHAMBERS 1. CALL TO ORDER The Brooklyn Center Economic Development Authority (EDA) met in Regular Session called to order by President Tim Willson at 8:24 p.m. 2. ROLL CALL President Tim Willson and Commissioners Kay Lasman, Tim Roche, Dan Ryan, and Mark Yelich. Also present were Executive Director Curt Boganey, Public Works Director /City Engineer Steve Lillehaug Community Development Director Gary Eitel, Assistant City Manager/Director of Building Community Standards Vickie Schleuning, Police Chief Scott Bechthold, Assistant City Attorney Sarah Sonsalla, and Carol Hamer, TimeSaver Off Site Secretarial, Inc. 3. APPROVAL OF AGENDA AND CONSENT AGENDA Commissioner Lasman moved and Commissioner Roche seconded approval of the Agenda and Consent Agenda, and the following item was approved: 3a. APPROVAL OF MINUTES 1. June 8, 2009 Regular Session Motion passed unanimously. 4. COMMISSION CONSIDERATION ITEMS 4a. RESOLUTION NO. 2009 -11 EXPRESSING APPRECIATION FOR THE DONATION OF CENTERPOINT ENERGY AUDITS IN THE VACANT FORECLOSED RENEW HOUSING PROGRAM Executive Director Curt Boganey introduced the item, discussed the history, and stated the purpose of the proposed resolution. 06/22/09 -1- DRAFT C7 Commissioner Lasman moved and Commissioner Ryan seconded adoption of RESOLUTION NO. 2009 -11 Expressing Appreciation for Vacant Foreclosed Renew Housing Program. Motion passed unanimously. 5. ADJOURNMENT the Donation of CenterPoint Energy Audits in the Commissioner Lasman moved and Commissioner Ryan seconded adjournment of the Economic Development Authority meeting at 8:26 p.m. Motion passed unanimously. 06/22/09 -2- DRAFT DA Age °da Item N 4a E Or City of Brooklyn Center A Millennium Community TO: Curt Boganey, City Manager FROM: Jim Glasoe, Director of Community Activities, Recreation and Services 4 DATE: July 8, 2009 SUBJECT: RESOLUTION AUTHORIZING THE CITY OF BROOKLYN CENTER ECONOMIC DEVELOPMENT AUTHORITY (EDA) TO ENTER INTO AN AMENDED AGREEMENT WITH FLIK INTERNATIONAL CORP FOR FOOD SERVICE MANAGEMENT AT THE EARLE BROWN HERITAGE CENTER Recommendation: Staff is supportive of this contract amendment and recommends its execution, as it provides for a continuation of the positive working relationship between FLIK International Corp and the Earle Brown Heritage Center. This relationship has been forged on the premise of high quality food and service. Background: On January 11, 1999, after an extensive Request for Proposal process, the EDA entered into an agreement with FLIK International Corp to provide food service management at the Earle Brown Heritage Center. The initial term of this agreement was five (5) years. On February 20, 2003, the contract was amended and extended for one year. On January 1, 2005, the EDA entered into a revised agreement with FLIK International Corp to provide food service management at the Earle Brown Heritage Center for a two year term. By EDA action, this agreement was extended on February 1, 2007. As this working relationship remains very positive, FLIK International Corp and the Earle Brown Heritage Center management desire to amend this agreement and extend it for a period of five years beginning January 1, 2010. Staff has worked with the City Attorney's office and FLIK International Corp to develop a second amendment to agreement for food service management that is acceptable to both parties. The basic parameters of the amendment are as follows: Agreement commences January 1, 2010. Agreement Term to be five (5) years. Base management fee for 2010 will be $105,600, and will increase $3,000 per year for the duration of the agreement. 6301 Shingle Creek Parkway Recreation and Community Center Phone TDD Number Brooklyn Center, MN 55430 -2199 (763) 569 -3400 City Hall TDD Number (763) 569 -3300 FAX (763) 569 -3434 FAX (763) 569 -3494 www.cityofbrooklyncenter.org Effective January 1, 2010, FLIK International Corp shall make a $100,000 investment for improvements to the owner's premises. All remaining terms and provisions of the amended agreement shall remain in full force. Budget Issues: This amendment provides for food service management fees that are consistent with current revenue and expenditure streams. It also provides for standardized annual increases that begin at 2.8% annually, and subsequent percentage increases that decrease over the course of the agreement. The amendment also provides for a $100,000 investment in the Earle Brown Heritage Center premises by FLIK International Corp. Commissioner introduced the following resolution and moved its adoption: EDA RESOLUTION NO. RESOLUTION AUTHORIZING THE CITY OF BROOKLYN CENTER ECONOMIC DEVELOPMENT AUTHORITY (EDA) TO ENTER INTO AN AMENDED AGREEMENT WITH FLIK INTERNATIONAL CORP FOR FOOD SERVICE MANAGEMENT AT THE EARLE BROWN HERITAGE CENTER WHEREAS, the current contract for Food Service Management with Flik International Corp will expire December 31, 2009; and WHEREAS, the EDA has been well served by Flik International Corp in the past and it would be in the EDA's interest to enter into a new agreement with Flik International Corp for a period of five years; and WHEREAS, Flik International Corp and the EDA have reached a proposed agreement regarding the terms and conditions and for continued food service management as set forth in Exhibit "A" which his attached hereto and incorporated herein by reference. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for the City of Brooklyn Center that the Executive Director of the Economic Development Authority be and hereby is authorized to execute the agreement with Flik International Corp for Food Service Management at the Earle Brown Heritage Center as set forth in Exhibit "A" with such language changes as may be necessary to clarify any terms, provided such language changes do not change the substance of the terms set forth in the attached agreement. 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: i whereupon said resolution was declared duly passed and adopted. 351262v1 CLL BR305 -2 0 SECOND AMENDMENT TO AGREEMENT This Second Amendment to the Agreement for Food Service Management entered into by and between the Economic Development Authority in and or the City of Brooklyn Center "Owner and Flik International Corp "Manager is effectiv RECITALS A. On January 1, 2005, Owner and Manager entered into an Agreement for Food Service Management whereby Manager agreed to manage Owner's catering facility; and B. On February 1, 2007, Owner and Manager entered into the First Amendment to the Agreement for Food Service Management; and C. Owner and Manager now desire to amend the Agreement for Food Service Management dated January 1, 2005, as amended by the First Amendment to the Agreement dated February 1, 2007 (hereinafter collectively referred to as the "Agreement and D. Owner and Manager now desire to amend the Agreement as hereinafter set forth. NOW, THEREFORE, for good and valuable consideration, the sufficiency of which is hereby acknowledged, the parties, intending to be legally bound, contract and agree as follows: 1. The Agreement is extended for an additional five ears commencing January 1 Y g �'Y 2010. 2. The Management Fee for the year 2010 will be $105,600 (for monthly payments of $8,800) and will increase, effective January 1 $3,000 per year for each of the years 2011 through 2014. 3. The following is added at the end of Section 12 of the Agreement: "Effective January 1, 2010, Manager shall make a One Hundred Thousand Dollar ($100,000) investment for improvements to Owner's Premises "Additional Investment Owner and Manager shall agree upon the improvements to be funded by the Additional Investment. Owner shall hold title to the equipment, fixtures, and other items funded by the Additional Investment. The Additional Investment shall be internally depreciated by Manager over a period of five (5) years, calculated on a straight -lined depreciation basis. If this Agreement is terminated prior to the expiration of the five (5) year term from January 1, 2010 through December 31, 2014: (i) by Owner without cause or by Manager for Owner's unremedied default, Owner shall pay Manager the undepreciated amount of the Additional Investment remaining up and through the date of termination within sixty (60) days after termination notice date; or (ii) by Manager without cause or by Owner for Manager's unremedied default, Owner 3512600 CLL BR305 -2 1 shall not be obligated to pay Manager the undepreciated amount of the Additional Investment remaining up and through the date of termination." 4. All other terms and provisions of the Agreement shall remain in full force and effect and shall remain unaffected by this Second Amendment. IN WITNESS WHEREOF, Owner and Manager have duly executed this Second Amendment on the dates indicated below. ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF BROOKLYN CENTER Dated: Cornelius Boganey Executive Director 351260v1 CLL BR305 -2 FLIK INTERS IONAL CO r By: Itd.President 42S Dated: C\L S aDO -q 1 2