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HomeMy WebLinkAbout2009-012 EDARCommissioner Kay Lasman introduced the following resolution and moved its adoption: EDA RESOLUTION NO. 2009 -12 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. Julv 13, 2009 Date R President The motion for the adoption of the foregoing resolution was duly seconded by commissioner Dan Ryan and upon vote being taken thereon, the following voted in favor thereof: Tim Willson, Kay Lasman, Tim Roche, Dan Ryan, and Mark Yelich; and the following voted against the same: none; whereupon said resolution was declared duly passed and adopted. EDA RESOLUTION NO. 2009-12 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 for the City of Brooklyn Center "Owner and Flik International Corp "Manager is effective 1 2,0 jo, wov_,� 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 years commencing January 1, 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 351260v1 CLL BR305 -2 I EDA RESOLUTION NO. 2009 -12 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 L Dated: Cornelius Boganey Executive Director FLIK INTERN *TIONAL CORP /I By: Its President Dated: Wo�Voq 351260v1 CLL BR305 -2 2