HomeMy WebLinkAbout2007 02-12 EDAP EDA MEETING
City of Brooklyn Center
February 12, 2007 AGENDA
l. 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 Authoriry),
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. January 22, 2007 Regular Session
4. Commission Consideration Items
a. Resolution Authorizing the First Amendment to the Agreement for Food Service
Management between the City of Brooklyn Center Economic Development Authority
and Flik International Corp.
•Requested Commission Action:
—Motion to adopt resolution.
b. Approval of Embassy Suites Hotel Building Elevation Plan and Preliminary Site
Plan for Phases One and Two and Further Directing the Staff to Prepare Technical
Corrections to the Development Agreement for EDA Consideration.
•Requested Commission Action:
—Motion to approve Embassy Suites Building Elevation.
5. Adjournment
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
I JANUARY 22, 2007
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 7:58 p.m.
2. ROLL CALL
President Tim Willson and Commissioners Kay Lasman, Mary O'Connor, Dan Ryan, and Mark
it Mana er Curt
Bo ane Pub
lic Works
Yelich. Also resent were Executive Director/C
P Y g g Y
Director/City Engineer Todd Blomstrom, Community Development Director Brad Hoffman,
Planning and Zoning Specialist Ron Warren, City Attorney Charlie LeFevere, and Deputy City
Clerk Camille Worley.
3. APPROVAL OF AGENDA AND CONSENT AGENDA
Commissioner Lasman moved and Commissioner R an seconded approval of the Agenda and
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Consent Agenda, and the following item was approved:
3a. APPROVAL OF MINUTES
1. January 8, 2007 Regular Session
Motion passed unanimously.
4. COMMISSION CONSIDERATION ITEM
4a. RESOLUTION NO. 2007-02 AUTHORIZING THE ACQUISITION OF REAL
T DISTRICT
PROPERTY FOR REDEVELOPMENT WITHIN TAX INCREMEN
NO. 3
Executive Director/City Manager Curt Boganey discussed the Resolution and the background of
the proposal.
There was discussion on the funding for the 57 and Logan project along with funding and
possible locations of the affordable housing obligation.
O 1 /22/07 -1- DRAFT
Commissioner Lasman moved and Commissioner Ryan seconded adoption of RESOLUTION
NO. 2007-02 Authorizing the Acquisition of Real Property for Redevelopment within Tax
Increment District No. 3.
Commissioner O'Connor expressed concern that the Brooklyn Center School District No. 286 is
negatively affected by being in a Tax Increment Financing District.
Mr. Boganey stated a work session is scheduled for February where Tax Increment Financing in
Brooklyn Center would be outlined for the City Council with specific discussion on the
relationship between TIF and School Districts. He also explained that School Districts continue
to receive taxes at the level they were receiving them before the establishment of a TIF District.
Further discussion from the EDA members took place regarding the proposed agreement.
Commissioner O'Connor voted against the same. Motion passed.
5. ADJOURNMENT
Commissioner Lasman moved and Commissioner Ryan seconded adjournment of the Economic
Development Authority meeting at 8:13 p.m.
Motion passed unanimously.
President
O 1 /22/07 -2- DRAFT
EDA Agenda Item No. 4a
COUNCIL ITEM MEMORANDUM
Date: February 8, 2007
To: Economic Development Authority
From: Curt Boganey, Executive Director�%�
Subject: Flik International Corp Agreement
Recommendation:
I recommend EDA approval of the resolution approving the First Amendment to the
Agreement for Food Service Management between the Brooklyn Center Economic
Development Authority and Flik International Corp for the Earle Brown Heritage Center.
This amendment is effective February 1, 2007 and extends the current service agreement
for two (2) additional years through December 31, 2009.
Background:
c nomic Develo ment Authori has had a Food Service Mana ement Agreeme
nt
The E o p ty g
with Flik Corp since 1999 with very positive results. In fact the EBHC has been
recognized as one of the best conference facilities in the Twin Cities in part due to the
excellent food service provided by Flik International Corp. The current contract with Flik
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expires December 31 2007.
The last three year term was approved with the expectation that it would expire
a roximatel one ear after the ro osed connectin hotel had been com leted. It was
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t the a reement ma
that after the new hotel had been com leted modifications o y
believed p g
be necessary or appropriate. As you know the construction of the new hotel is expected to
commence in 2007 and will not be completed until mid or 1
ate 2008.
Because we continue to enjoy a complimentary and mutually beneficial working
relationship with Flik International Corp and we see no need to consider any significant
changes to our current agreement, we recommend a contract amendment and renewal
effective February 1, 2007 running through December 31 2009
Even though nearly a year remains on the current contract, we recommend renewal at this
time for the following reasons:
l. We are pleased with the working relationship and service quality from Flik
International Corp.
2. If we were interested in entertaining proposals from other providers, we should
begin that process well in advance (approximately six months) of the anticipated
expiration date.
3. Renewal allows Flick employees greater certainty regarding their future which
contributes toward a positive work environment and strengthens the partnership
between or management teams.
4. The negotiated terms continue to be favorable for the EDA/EBHC.
5. The New Hotel is not expected to be completed before the end of 2008.
Key Elements of the Amended Agreement:
40,000 investment in EBHC operations over two years.
Two year extension of existing terms.
Modification of non-compete radius from 250 miles to 200 mile radius and
allowance of Heartwood Conference Center in Trego Wisconsin.
Modification of the capital equipment contribution language allowing for
amortized reimbursement to Flik in the event of a non-cause City initiated early
contract termination.
We believe that the proposed $40,000 investment in the facility continues to strengthen
the partnership with Flick. The fact that Flick is willing to make a tangible investment in
the operation in order to improve efficiency and customer service recognizes the fact that
catering and facility rental are interdependent, symbiotic relationships.
The two year extension would allow for review of the contract about a year after the hotel
has been constructed. By this time we should know if hotel catering needs and facility
catering needs should be merged or better coordinated.
Flik has requested a change in the non-compete language so that it can consider business
opportunities within this new range. Our experience suggests that such a change should
pose no threat or risk to the financial viability of our facility.
We believe that the proposed language that would require amortized reimbursement to
i Flik for capital investments is reasonable. As indicated in the language there would be no
reimbursement if the contract is terminated by Flik without cause or if it is terminated by
the City for cause there will be no reimbursement.
We believe that adoption of the resolution amending the current agreement with Flik
Brown Herita e Center will
i International Inc. for Food Service Management at the Earle g
serve the interest of the EDA and customers of the facility. We recommend approval.
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Budget:
Annually, prices are adjusted to reflect increased cost of business. We believe the
proposed contract will have no negative financial impact on the operating objectives of
this enterprise or our ability to compete in the conference market.
Cc: Brad Hoffinan
Judith Bergeland
G:\City ManagerlFlick International Corp Agreement011707.mem.doc
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 Januaxy 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 unremedied 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 unremedied 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 E�ibit 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 FLIK INTERNATIONAL CORP
AUTHORITY IN AND FOR THE
CITY OF BROOKLYN CENTER
By: By:
Name: Name: Scott Davis
Title: Title: President
Date: Date:
i
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 1NTERNATIONAL CORP FOR FOOD
SERVICE MANAGEMENT AT THE EARLE BROWN HERITAGE CENTER
WHEREAS, the current contract for Food Service Management with Flik
Internatianal 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.
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 atta.ched 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 favar thereof:
and the following voted against the same:
whereupon said resolution was declared duly passed and adopted.
EDA Agenda Item No. 4b
i
MEMORANDUM
TO: Curt Boganey, City Manager
FROM Brad Hoffman, Community Development Director�
DATE February 6 2007
SUBJECT: EDA Approval of Embassy Suites Building Elevation
Recommendation:
I recommend that the Brooklyn Center EDA Board approve the exterior elevation
of the proposed Embassy Suites Hotel and the Preliminary Site Plan for Phases one
and two as consistent with the terms and conditions as set forth in the development
agreement between Brooklyn Hotel Partners, LLC and the Brooklyn Center EDA.
In addition, staff should be directed to bring back a technical correction to the
restated development agreement between the EDA and Brooklyn Hotel Partners,
LLC acknowledging the inconsistency of the Section 4.1 reference to Planning
Commission Application 2005-010.
Background:
Under the terms of our agreement with Brooklyn Hotel Partners, the EDA is to
provide approval, at its sole discretion, to the palette of materials used and the
color of the exterior of each of the two (2) phases of the development. The resta.ted
development agreement was approved October 23, 2006. A copy of Section 4.1 of
the agreement is attached. It should be noted that Section 4.1 of the agreement
refers to Planning Commission Application 2005-010 which was the original
submission by the developer approved by the Council. However, the restated
agreement was meant to recognize the fact that Embassy Suites had changed their
building format and thus a change in the building foot print which would mandate
for the developer a change in the elevations of the building as well as the site plan.
Also the developer would no longer be committed to the construction of a water
park under the terms of the current agreement. The developer has submitted a
building elevation with proposed coloring and materials for EDA consideration.
The exterior of the building is primarily masonry or a panelized product that
resembles stucco. The first nineteen (19) feet is composed entirely of brick. The
central entry tower is also made of brick and glass. The remaining exterior fa�ade
is composed of d�yvet, which is stucco like panel. There is significant glassing on
the front of the building including a large glassed entry tower.
Also before the EDA for consideration is the site plan for both phases of the
development. It should be noted that the link between the hotel and the G Barn
would be consistent in design with the current building links at the Heritage
Center. Staff has directed the developer to have the link pass adjacent to the north
side of the D Barn, not through it, and then along the north side of the G Barn
connecting at the first entrance to the link system. The link system would have
major entry points between the D Barn and the G Barn to allow public access to
Blumenthal Architect. There will also be a security door within the link at the
property line of the hotel and the Heritage Center.
If the preliminary elevation meets with EDA approval, the developer will proceed
with site and building approvals through the Planning Commission and Council.
The developer intends to start construction on Phase 1(Embassy Suites and
Heritage Center link) this spring.
Budget Considerations: None
ARTICLE IV
CONSTRUCTION OF MINIMUM IMPROVEMENTS
Section 4.1 Preliminarv Plans. The Developer will submit to the Authority the
Preliminary Plans for each Phase of the Minimum Improvements. The Preliminary Plans must be
consistent with the Redevelopment Plan, this Agreement, Planning Commission Application No.
2005-0110 and all applicable State and local laws and regulations, insofar as said consistency
may be determined at said preliminary stage. The exterior of the Minimum Improvements must
make significant use of glazed glass and be of a color compatible with the surrounding
development as acceptable to the Authority in its sole discretion. All exterior designs and
materials including the color palette must be approved by the Authority. Phase I of the
Minimum Improvements must be physically connected to the Earle Browne Heritage Center by
a.n enclosed pedestrian Connection (the "Connection"), as more fully described in Section 4.12
hereto. The Connection shall be part of the Minimum Improvements.
Section 4.2 Construction of Minimum Imnrovements. Subject to the terms and
conditions of this Agreement, the Developer agrees to construct the Minimum Improvements (a
Site Plan for which is attached hereto as Exhibit H) on the Development Property in
conformance with the approved Construction Plans for the Minimum Improvements. No
material changes shall be made to the Construction Plans for the Minimum Improvements
without the Authority's prior written approval. In no event shall any of these changes (a) affect
the quality of the Development as provided in the Construction Plans approved by the Authority,
(b) materially affect the appearance of the exterior of the Minimum Improvements, (c) reduce the
quality of the construction materials for the Nlinimum Improvements, or (d) delete or modify any
of the required elements of the Minimum Improvements set forth in Section 4.1 hereof.
Sectiou 4.3 Construction Plans
(a) The Developer shall deliver to the Authority no later than thirty (30} days
prior to Closing the Construction Plans for the appropriate Phase of the Minimum Improvements.
The Authority shall review the Construction Plans and will deliver to the Developer before the
Closing Date, a written statement approving the Construction Plans or a written statement
rejecting the Construction Plans and specifying the deficiencies in the Construction Plans. The
Authority shall approve the Construction Plans if: (i) the Construction Plans conform to the
terms and conditions of this Agreement; (ii) the Construction Plans are consistent with the goals
and ob'ectives of the Redevelo ment Plan• and iii the onstruction Plans do not to the
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knowled e of the Authorit violate an a licable Federal State or local laws ordinances rules
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or regulations. If the Construction Plans are not approved by the Authority, then the Developer
shall make such changes as the Authority may reasonably require.
(b) The approval of the Construction Plans, or any proposed amendment to
the Construction Plans, by the Authority does not constitute a representation or warranty by the
Authority that the Construction Plans or the Minimum Improvements comply with any
appiicable building code, health or safety regulation, zoning regulation, environmental law or
other law or regulation, or that the Minimum Improvements will meet the qualifications for
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