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HomeMy WebLinkAbout2007-003 EDAR1 Commissioner Kay Lasman introduced the following resolution and moved its adoption: 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, 2007; 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 three years; and WHEREAS, Flik International Corp and the EDA have reached a proposed agreement regarding the conditions and parameters for continued food service management as set forth in Exhibit "A" which is attached hereto and incorporated herein by reference; and 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. February 12, 2007 EDA RESOLUTION NO. 2007 -03 Date 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, Mary O'Connor, Dan Ryan, and Mark Yelich; and the following voted against the same: none; whereupon said resolution was declared duly passed and adopted. 1 1 EDA RESOLUTION NO. 2007-03 FIRST AMENDMENT TO AGREEMENT This First 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 February 1, 2007. RECITALS A. On January 1, 2005, Owner and Manager entered into an Agreement for Food Service Management ("Agreement") whereby Manager agreed to manage Owner's Catering Facility; and B. Owner and Manager now desire to amend the Agreement to extend the term, add a buyback provision and amend the non-compete provision. 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 two (2) years beginning January 1, 2008. 2. Beginning January 1, 2008, the Management Fee shall be adjusted at a rate equal to the then-current rate published for the BLS Minneapolis-St Paul Urban Consumers Consumer Price Index for the prior twelve (12) month period. 3. Section 12 of the Agreement, "REIMBURSABLE IMPROVEMENTS", is deleted and replaced with the following: "Manager shall fund the purchase of a dishwasher and other equipment as may be mutually agreed upon by the parties to facilitate the performance of the services provided by Manager to Owner hereunder ("Investment"). Owner and Manager shall agree upon the type of equipment to be funded by the Investment. Owner shall hold title to the equipment, fixtures, and other items funded by the Investment. The Investment shall be internally depreciated by Manager over a period of three (3) years, calculated on a straight-line depreciation basis. The Investment shall not exceed, in aggregate, the amount of Sixty Thousand Dollars ($60,000). If this Agreement is terminated prior to the expiration of the initial three (3) year term of the Agreement (December 31, 2007) (i) by Owner without cause or by Manager for Owner's =remedied default, Owner shall pay Manager the undepreciated amount of the 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 =remedied default, Owner shall not be obligated to pay Manager the undepreciated amount of the Investment remaining up and through the date of termination." 4. The following is added at the end of Section 12 of the Agreement: "Effective January 1, 2008, Manager shall make a Forty Thousand Dollar $40,000 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 two (2) years, calculated on a straight-line depreciation basis. If this Agreement is terminated prior to the expiration of the two (2) year term of the Agreement (December 31, 2009) (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 shall not be obligated to pay Manager the undepreciated amount of the Additional Investment remaining up and through the date of termination." 5. Section 26 of the Agreement, "AGREEMENT NOT TO COMPETE", is deleted and replaced with the following: "26. AGREEMENT NOT TO COMPETE: During the term of this Agreement Manager shall not own, operate, manage, or otherwise provide food or catering services to any convention center, banquet facility, special occasion restaurant, historic inn, or other similar facility within a two hundred (200) mile radius from the Catering Facility which directly competes with Owner; provided, however, that Manager may continue to provide such services at locations at which it currently provides service, at locations listed in Exhibit B attached hereto, at the Heartwood Conference Center (formerly known as Schwan Retreat) located at N10884 Hoinville, Road, Trego, WI 54888 and at such other mutually agreed locations which Owner may approve from time to time on a case by case basis. Owner agrees it will not unreasonably withhold or delay such consent which shall be set forth in writing." 6. All other terms and provisions of the Agreement shall remain in full force and effect and shall remain unaffected by this First Amendment. IN WITNESS WHEREOF, Owner and Manager have duly executed this First Amendment on the dates indicated below. ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF BROOKLYN CENTER FLIK INTERNATIONAL CORP By By: Name: Title: Date: Name: Scott Davis Title: President Date: 1