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Home My WebLink About2003 04-28 EDAP S EDA MEETING City of Brooklyn Center April 28, 2003 AGENDA 1. Call to Order 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 - Commissioners not present at meetings will be recorded as abstaining from the vote on the minutes. 1. February 24, 2003 - Regular Session 4. Commission Consideration Items • a. Resolution Authorizing the Economic Development Authority to Enter Into an Agreement with Flik International Corp., Amending and Extending the Food Service Management Agreement for 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 FEBRUARY 24, 2003 CITY HALL - COUNCIL CHAMBERS 1. CALL TO ORDER The Brooklyn Center Economic Development Authority (EDA) met in regular session and was called to order at 9:35 p.m. by President Myrna Kragness. 2. ROLL CALL President Myrna Kragness, Commissioners Kathleen Carmody, Kay Lasman, Diane Niesen, and Bob Peppe. Also present: Executive Director Michael McCauley, Interim Assistant City Manager/Director of Public Works Sharon Klumpp, City Attorney Charlie LeFevere, and Deputy City Clerk Maria Rosenbaum. • 3. APPROVAL OF AGENDA AND CONSENT AGENDA A motion by Commissioner Lasman, seconded by Commissioner Carmody to approve the agenda and consent agenda. Motion passed unanimously. 3a. APPROVAL OF MINUTES A motion by Commissioner Lasman, seconded by Commissioner Carmody to approve the January 13, 2003, regular session minutes. Motion passed unanimously. 4. COMMISSION CONSIDERATION ITEMS 4a. RESOLUTION TERMINATING DEVELOPMENT AGREEMENT WITH JERRY'S ENTERPRISES, INC. Executive Director Michael McCauley discussed that this resolution would terminate the Development Agreement with Jerry's Enterprises, Inc. The developer has secured control of the development property making acquisition by the EDA unnecessary and parties have mutually agreed that it is no longer appropriate to proceed with acquisition pursuant to the Development Agreement. RESOLUTION NO. 2003-02 • Commissioner Lasman introduced the following resolution and moved its adoption: 02/24/03 -1- DRAFT RESOLUTION TERMINATING DEVELOPMENT AGREEMENT WITH JERRY'S • ENTERPRISES, INC. The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Carmody. Motion passed unanimously. 5. ADJOURNMENT A motion by Commissioner Carmody, seconded by Commissioner Peppe to adj ourn the meeting to a work session at 9:38 p.m. Motion passed unanimously. President • • 02/24/03 -2- DRAFT EDA Agenda Item No. 4a • Commissioner introduced the following resolution and moved its adoption: EDA RESOLUTION NO. RESOLUTION AUTHORIZING THE ECONOMIC DEVELOPMENT AUTHORITY TO ENTER INTO AN AGREEMENT WITH FLIK INTERNATIONAL CORP., AMENDING AND EXTENDING THE FOOD SERVICE MANAGEMENT AGREEMENT FOR THE EARLE BROWN HERITAGE CENTER WHEREAS, the Earle Brown Heritage Center provides excellent banquet, convention, and meeting services for thousands of residents and guest annually; and WHEREAS, the current contract for food service management will expire February 28, 2004; and WHEREAS, the Economic Development Authority (EDA) believes that the community would be well served to extend the current management agreement through December 31, 2004; and WHERAS, Flik International Corp. and the EDA have reached agreement regarding • certain amendments to the current agreement for continued food service management. NOW, THEREFORE, BE IT RESOLVED by the EDA in and for the City of Brooklyn Center that: 1. The EDA shall enter into an agreement with Flik International Corp. for Food Service Management at the Earle Brown Heritage Center. 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: whereupon said resolution was declared duly passed and adopted. • MEMORANDUM • Date: April 17, 2003 To: Mike McCauley, City Manager From: Curt Boganey, Assistant City Mane Subject: Flik International Corp Agreement The Economic Development Authority has had a Food Service Management Agreement with Flik Corp since 1999 with very positive results. The current contract with Flik expires in February of 2004. Due to the very positive relationship the City and the company have each expressed an interest in extending the existing agreement through December 31, 2004. After the current outstanding bonds are paid off in 2004, the City will have much greater flexibility in crafting a new agreement with Flik or some other service provider to continue providing quality food service management. Given the above, I believe the prudent action at this time is to extend the current agreement through December 2004. Attached is a proposed amendment to our current agreement with Flik International Corp for food service management. These change are the result of discussions between both parties. This amendment makes no substantive changes to the current agreement. • Paragraph 1 confirms the cur method that cash bar and concession stand funds are handled by the food service manager. Paragraph 2, confirms the current method and frequency of wire transfers to and from the City to the management company. Paragraph 3, extends the agreement term to December 31, 2004. Paragraph 4, establishes the current address and contact representative for Flik. Paragraph 5, maintains the current MIS fee for the remainder of the agreement. Paragraph 6, extends the current surety bond thru the remainder of the contract period. Paragraph 7, recognizes the fact that all other provisions of the current agreement remain in effect. Cc: Brad Hoffman Judith Bergland • • CATERING FOR YOUR EVERY NEED FIRST AMENDMENT TO AGREEMENT This First Amendment to the Agreement entered into by and between Economic Development Authority in and for the City of Brooklyn Center ( "Owner ") and Flik International Corp ( "Manager ") is effective February 20, 2003. RECITALS A. On February 20, 1999, Owner and Manager entered into a Food Service Management Agreement ( "Agreement ") whereby Manager agreed to provide management and consultant services to Owner; and • B. Owner and Manager now desire to amend the Agreement to extend the term. 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. Section 9(f) of this Agreement, Duties of Manager, is hereby amended as follows: "Collect for food and beverages at the concession stand and cash bars and hold in the safe in the catering kitchen and deliver to Owners offices on the next business day, and provide a price breakdown of revenue categories for each entity to Owners, which will make payment as appropriate to taxing authorities." 2. Section 17(b) of this Agreement, Settlement of Accounts, is hereby amended as follows: "Owner shall wire transfer to Manager each month the amount of money representing a cost of Business incurred for which Manager has provided information in sufficient detail for Owner to ascertain that the amount requested is accurate and represents an element of the Cost of Business." 3. Section 19 of this Agreement, Term and Termination, is hereby amended as follows: "(a) The term of this Agreement is hereby extended until December 31, 2004. 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." p R d �I CATERING FOR YOUR EVERY NEED 4. Section 22 of this Agreement, Notices, is hereby amended as follows: "IF TO MANAGER: Flik International Corp, 3 International Drive, Rye Brook, NY 10573, Attn: Scott Davis, President." 5. Section 13 (M) of this Agreement is deleted and replaced with: "An MIS fee in the annual amount of $15,000, payable in equal monthly installments." 6. The Surety Bond dated March 1 1999 and scheduled to expire April 2004 shall be extended thru December 31, 2004. 7. 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 Flik International Corp and for the City of Brooklyn Center By: By: Name: Name: Title: Title: Date: Date: •