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Home My WebLink About1993 12-20 EDAP Regular Session EDA AGENDA CITY OF BROOKLYN CENTER DECEMBER 20, 1993 (following adjournment of City Council meeting) 1. Call to Order 2. Roll Call 3. Approval of Agenda and Consent Agenda -All items listed with an asterisk are considered to be routine by the Economic Development Authority 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 in its normal sequence on the agenda. 4. Approval of Minutes: • a. December 6, 1993 - Regular Sessions — h< 5. Resolutions: • a. Establishing a Restaurant at the Inn on the Farm and Approving the Purchase of Furnishings and Equipment Necessary to the Total Operation * b. Declaring Surplus Property �-M C. Approving the Final Brooklyn Center Economic Development Authority Budget for the Year 1994 Pursuant to MSA Chapter 469.107, Subdivision 1 C S _ o t'� d. Requesting the City of Brooklyn Center to Levy Taxes for the Benefit of the Brooklyn Center Economic Development Authority for the year 1994 6. Adjournment 3 F2 CITY OF BROOKLYN CENTER c ouncil Meeting Date December 20, 1993 Agenda Item Number REQUEST FOR COUNCIL CONSIDERATION ******************************************************** * * * * * * * * * * * * * * * * * * * * * * * * * * * * * ** ITEM DESCRIPTION: EDA MINUTES - DECEMBER 6, 1993 - REGULAR SESSION DEPT. APPROVAL: Brad Hoffman, IVrector of Community Development MANAGER'S REVIEW/RECONMENDATION: r� No comments to supplement this report Comments below /attached SUAWLARY EXPLANATION: (supplemental sheets attached ) • RECOMMENDED CITY COUNCIL ACTION MINUTES OF THE PROCEEDINGS OF THE ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY TY OF 13ROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA REGULAR SESSION DECEMBER 6, 1993 CITY HALT. CALL TO ORDER The Brooklyn Center Economic Development Authority met in regular session and was called to order by President Todd Paulson at 10:04 p.m. ROLL CALL President Todd Paulson, Commissioners Celia Scott, Dave Rosene, Barb Kalligher, and Kristen Mann. Also present were City Manager Gerald Splinter, City Attorney Charlie LeFeverc, and Council Secretary Kathy Stratton. APPROVAL OF AGENDA AND CONSENT AGENDA President Paulson inquired if any Commissioner requested any items be removed from the consent agenda. No requests were made. APPROVAL OF MINUTES OCTOBER 2S 199' - REGULAR SESSION There was a motion by Commissioner Mann and seconded by Commissiuiier Kalligher to approve the minutes of the October 25, 1993, EDA meeting as printed. The motion passed unanimously, RESOLUTIONS The City Manager presented a Resolution Amending the 1993 Capital Outlay Budget for the Earle Brown Heritage Center and explained this resolution would authorize the purchase of a laser jet printer and two white board easels. RESOLUTION NO, 93 -37 Ct)It mi55ioncr Celia Scott introduced the following resolution and moved its adoption; RESOLUTION AMENDING THE 1993 CAPITAL OUTLAY BUDGET FOR THE EARLE BROWN HERITAGE CENTER The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Yarn Kalligher, and the motion passed unanimously. 12/6/93 - 1 - ADJOURNMENT There was a motion by Commissioner Mann and seconded by Commissioner Scott to adjourn the meeting. The motion passed unanimously, The Brooklyn Center Economic Developmcnt Authority adjourned at 10:06 p.m. Todd Paulson, President Recorded and transcribed by: Kathy Stratton TimcSaver Off Sitc Sccrcwrial 12/6/93 - 2- CITY OF BROOKLYN CENTER Council Meeting Date December N 1993 Agenda Item Number REQUEST FOR COUNCIL CONSIDERATION ITEM DESCRIPTION: RESOLUTION ESTABLISHING A RESTAURANT AT THE INN ON THE FARM AND APPROVING THE PURCHASE OF FURNISHINGS AND EQUIPMENT NECESSARY TO THE TOTAL OPERATION *************************************** * * * * * * * * * * * * * * * * * * * * * * * * * * * * * ** DEPT. APPROVAL: a Brad Hoffman, Director of Community elopment ************************************* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * ** MANAGER'S REVIEW/RECOIVEVIENDATION: No comments to supplement this report Comments below /attached X SUMMARY EXPLANATION: (supplemental sheets attached _X_) The financial position at the Inn on the Farm has improved considerably this fiscal year. Increased room occupancy over the upcoming years will increase revenues somewhat but will never place the Inn in a break -even mode. The only way to significantly increase revenues is to establish a restaurant within the Earle Brown house. The recent Marquette Partners report supports the restaurant as a missing link to the total facility operation. Projected revenues from the restaurant wouild place the Inn close to a break even point. The present Sunroom, already equipped with tables and chairs to support the breakfast service to guests, will provide half the restaurant seating. The Earle Brown guestroom will provide the other half and, once changed over, will provide additional seminar space when not in use as restaurant seating. To facilitate this change we need to do the following: remove the door to the Earle Brown room store the bedroom furnishings currently in the room remove the door to the restroom remove the stool and sink to storage install a counter with sink, ice bin and coffee maker cover the tub and shower with a false wall install minor additional lighting insulate the floor between Earle and Gwen Brown rooms purchase tables and chairs to accommodate dinner seating move small refrigerator to the basement add stainless steel counter from stove to wall move dishwasher and disposal to basement kitchen and install Restaurant Detail - Page two under additional counter next to current pan wash purchase full size single door freezer and refrigerator to be housed in basement food storage room All work necessary accomplish i ne Heri Center staff during regularly cessary to th s change can be do by Heritage Ce g gu y scheduled work hours. All furnishings removed from the Earle Brown room will be stored on site and used as need arises. The restaurant would be open only on Friday and Saturday evenings, 51 weeks of the year. Reservations will be taken at the Inn which is already staffed on a 24 -hour basis. Some hostess hours will be added to present staff scheduling for Fridays and Saturdays. A chef and waitstaff will be supplied as an extension of the present D'Amico catering management organization. Attached is a proforma describing anticipated revenue and expense during the first year. These figures are based on an average weekly reservation of 135 covers out of a possible 184 -230 (depending on final decision regarding number of seatings per evening). Anticipated start -up costs should not exceed $25,900. Purchase of the tables, chairs, refrigerator /freezer, additional kitchen counters and parts to change the Earle Brown room should run approximately $12,000. Promotion of the restaurant will be approximately $9,500. The balance is miscellaneous contingency if needed. As you can see from the proforma, a conservative income figure on a yearly basis is estimated at $58,776. Expenses to open the restaurant are figured at $25,900. The opening is tentatively planned for March of 1994 which does not give a full year of operation the first year but will certainly still cover the expense of the opening. It is also anticipated that the loss of revenue created by removing a bedroom from the operation will be covered by the use of that room as expanded seminar space during the days the restaurant is not in operation. The financing for this project would be a loan from the Investment Trust Fund up to $25,900 for a period of one year at seven percent interest. r hi her check, more covers q 40 7 seats Open Fr i, Sat nights o T1 Accepting reservations t maxim covers Set menu, Four courses, changes b chefs choice $27.54 per person, + tax and s. charge. Includes four courses and coffee. Sou , salad, entree, dessert _ $33.69 er erson. Beer, cocktails, wine, cordials available at additional charge Average covers per weekend = 13560+75 $34 check average O en 51 weeks of the year. Room for let all other times for private functions. ' Only F +B revenue from Fr + Sa anticipated in this case LABOR: Pty WEE1090 M mnt $160 Host (Maitre D' ), Bartender, W/A Service $179 18 wait hours, Fr, 24 on Sa. Production $380 Bar $ 0 Warewashin $ 9 8 Maintenanco Tot. labor/W /E $866 W/E F &B REVENUE $234,090 Not Inciudin income from other rentals, private Parties S.C. Income j $7,023 To t. F &B related rev $2 41,i13 Ahj d - 716% $177,908 ne 13% $30,432 Liquor, 6% $14,045 Beer, 5% $11,705 Cost of Goods 29 % _.a22 Food 30% $53,373 - Wine 30% $9030 U uor, 20 ° l0 $2,849 Beer, 30% $3,511 GROSS PROFIT $172,290 Labor 19% $44,166 Pa yroll Re lated, 4.72 °la $11,042 Pay roll taxes, workmen's com ens ation Direct Operating 8% $18,727 Chem., ch, ig fiatw Unen, Menus, Flowers, Candies, ... Marketi 5% $11,705 ssoo /month, Includes promo food, media, yell pages, G & A EX eases 2.50% $5,852 c. cards, license, aa* chargea, Data p rocessi n , ... Overhe- ad 3% Utils, repairs, trash TOT. CONTROLLABLE EXPENSES $98,51 INCOME BEFORE FIXED COSTS $73,776 FIXED COSTS $15 00o Ins. $5,000 Depree. $4,000 RE -TAX INCOME $58,776 Mngmnt fee $500x13 $6,500 $15,500 I Commissioner introduced the following resolution and moved its adoption: EDA RESOLUTION NO. RESOLUTION ESTABLISHING RESTAURANT AT THE INN ON THE FARM AND APPROVING THE PURCHASE OF FURNISHINGS AND EQUIPMENT NECESSARY TO THE TOTAL OPERATION WHEREAS, the Inn on the Farm at the Earle Brown Heritage Center desires to open a restaurant as a part of the basic operation; and WHEREAS, the cost for furnishings in the Earle Brown Room, serviceware additions to the Inn kitchen, and promotion of the restaurant will amount to approximately $25,900; and WHEREAS, City Council Resolution No. authorizes the Earle Brown Heritage Center Fund to borrow funds from the City's Investment Trust Fund for this purchase. NOW, THEREFORE BE IT RESOLVED by the Economic Development Authority, that: 1. The addition of a restaurant to the operation of the Inn on the Farm is approved at a cost of $25,900. 2. All costs of the project shall be charged to the Earle Brown Heritage Center Fund. 3. The Investment Trust Fund will provide financing as described in the City Council Resolution authorizing the loan to the Earle Brown Heritage Center Fund. Date Todd Paulson, 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. CITY OF BROOKLYN CENTER Council Meeting Date IV"10 9 Agenda Item Number -5 REQUEST FOR ECONOMIC DEVELOPMENT AUTHORITY CONSIDERATION ITEM DESCRIPTION: RESOLUTION DECLARING SURPLUS PROPERTY DEPT. APPROVAL: / cp _-- Brad Hoffman, Director of Conimunity Development MANAGER'S REVIEW/RECOMMENDATION: "I m V No comments to supplement this report Comments below /attached SUMMARY EXPLANATION: (supplemental sheets attached ) • The Hewlett Packard (HP) LaserJet II printer located at the Earle Brown Heritage Center no longer works properly. The cost to repair the printer is beyond its value and there is no guarantee that the repairs would make it operational. It is recommended that the Economic Development Authority declare the HP LaserJet II printer, fixed asset #11612, as surplus ro ertY . This item will be sold outright. P P Action Required A resolution is provided for EDA consideration. Commissioner introduced the following resolution and moved its adoption: EDA RESOLUTION NO. RESOLUTION DECLARING SURPLUS PROPERTY BE IT RESOLVED by the Economic Development Authority of the City of Brooklyn Center that the Hewlett Packard LaserJet II, fixed asset #11612, is hereby declared surplus property BE IT RESOLVED that the Deputy City Clerk is hereby authorized to accept offers for the sale of this equipment. Date Todd Paulson, 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. CITY OF BROOKLYN CENTER council Meeting Date December 20, 1993 Agenda Item Numbe REQUEST FOR COUNCIL CONSIDERATION ITEM DESCRIPTION: APPROVING THE FINAL BROOKLYN CENTER ECONOMIC DEVELOPMENT AUTHORITY BUDGET FOR THE YEAR 1994 PURSUANT TO MSA CHAPTER 469.107, SUBDIVISION 1 DEPT. APPROVAL: 7:3� g r, BradTloffman, Director of GgrYinunity Development MANAGER'S REVIEW/RECONMIENDATION: V No comments to supplement this report Comments below /attached SUMMARY EXPLANATION: (supplemental sheets attached ) RECOMMENDED CITY COUNCIL ACTION i Member introduced the following resolution and moved its adoption: EDA RESOLUTION NO. RESOLUTION APPROVING THE FINAL BROOKLYN CENTER ECONOMIC DEVELOPMENT AUTHORITY BUDGET FOR THE YEAR 1994 PURSUANT TO MSA CHAPTER 469.107, SUBDIVISION 1 ------------------------------------------------------------- WHEREAS, the Brooklyn Center Economic Development Authority has considered the attached budget and finds that this budget is necessary for the operation of the Brooklyn Center Economic Development Authority during the year 1994: NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority for the City of Brooklyn Center that the attached budget of the Economic Development nt Author' p ity for said City is hereby approved. BE IT FURTHER RESOLVED that a copy of this resolution, together with the attached budget, be submitted to the City Council of the City of Brooklyn Center. Date President ' The motion for the adoption of the forgoing resolution was duly seconded by member , 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. CITY OF BROOKLYN CENTER council Meeting Date December 20, 199 g 3 A enda Item Number J REQUEST FOR COUNCIL CONSIDERATION ITEM DESCRIPTION: REQUESTING THE CITY OF BROOKLYN CENTER TO LEVY TAXES FOR THE BENEFIT OF THE BROOKLYN CENTER ECONOMIC DEVELOPMENT AUTHORITY FOR THE YEAR 1994 DEPT. APPROVAL: Brad Hoffman, Director of G unity Development MANAGER'S REVIEW/RECONIlMENDATION. No comments to supplement r Comments below attached lement th s report PP P / ******************************************************** * * * * * * * * * * * * * * * * * * * * * * * * * * * * * ** SUALM ARY EXPLANATION: (supplemental sheets attached ) RECOMMENDED CITY COUNCIL ACTION Member introduced the following resolution and moved its adoption: EDA RESOLUTION NO. RESOLUTION REQUESTING THE CITY OF BROOKLYN CENTER TO LEVY TAXES FOR THE BENEFIT OF THE BROOKLYN CENTER ECONOMIC DEVELOPMENT AUTHORITY FOR THE YEAR 1994 ----------------------------------------------------------------- WHEREAS, Minnesota statutes currently require certification of a proposed tax levy to the Hennepin County Auditor on or before September 15, 1993 and a final tax levy on or before December 25, 1993. BE IT RESOLVED by the Economic Development Authority of the City of Brooklyn Center as follows: Section 1: That the Economic Development Authority requests the City of Brooklyn Center to levy a property tax for the benefit of the Economic Development Authority, for the year 1994, in the amount of $131,894 and at the rate not to exceed 0.01813% of taxable property, real and personal, situated within the coroporate limits of the City of Brooklyn Center, Minnesota and not exempted by the Constitution of the State of Minnesota or the valid laws of the State of Minnesota, for the purpose of maintaining the E.D.A. Special Operating Fund pursuant to MSA Chapter 469.107, Subdivision 1. Section 2: The City of Brooklyn Center will include the Economic Development Authority's tax levy in the City of Brooklyn Center's proposed tax levy to the Hennepin County Auditor on or before September 15, 1993, and a final tax levy on or before December 25, 1993. ------------------------- - - - - -- --------------------------------- Date President The motion for the adoption of the foregoing resolution was duly seconded by member , 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. ECONOMIC DEVELOPMENT AUTHORITY OF BROOKLYN CENTER SPECIAL OPERATING FUND ANNUAL OPERATING BUDGET 1991 1992 1993 1994 REVENUES Actual Actual Adopted Budget - - - - -- --- - - - - -- ----- - - - - -- --- - - - - -- E.D.A. Tax Levy: General Property Taxes 148,579 131,894 Less Estimated Uncollectable (5,489) (2,638) --- - - - - -- --- - - - - -- --- - - - - -- Net Property Taxes 143,090 129,256 Homestead Credit 34,760 36,483 Transfer from H.R.A. Fund 141,983 142,859 141,250 139,360 Grant - C.D.B.G. Programs 180,440 251,747 217,491 235,627 Investment Earnings 135,810 125,917 110,000 100,000 Development Bond Proceeds 11,558 Equity Transfer - Debt Service Fund 1 , 000 0 00 Apartment Rents 5,010 15,000 --- - - - - -- -- - - - - -- -- - - - - -- -- - -- - -- TOTAL REVENUE 1,458,233 -- 537,091 -- 646,591 -- 655,726 EXPENDITURES C.D.B.G. PROGRAMS Rehab Housing Grants 103,892 122,899 100,491 109,527 Scattered Site Redevelop 55,184 84,234 265,217 50,000 Commercial /Industrial Study 22,515 Brooklyn Blvd. Study 32,926 Community Resource Partner 30,000 30,000 H.O.M.E. Program 1,940 12,000 8,000 Head Start Program 38,100 -- - - - - -- -- - - - - -- -- - - - - -- -- - - - - -- TOTAL C.D.B.G. PROGRAMS 181,591 241,999 407,708 235,627 Administration 111,024 137,715 197,123 199,784 Rental to Owner Conversions 4,440 68,000 Spot Renewal Program 25,674 96,414 481,100 185,315 E.B.H.C. Operational Study 8,500 Brooklyn Blvd. Study Phase II 41,652 Apartment Building Maintenance 15,000 Contingency 5,725 20,000 --- - - - - -- --- - - - - -- --- - - - - -- -- - - - - -- TOTAL EXPENDITURES 318,289 480,568 1,209,808 655,726 Fund Balance, January 1 849,971 1,989,915 2,046,438 -- Fund Balance, December 31 1,989,915 2,046,438 1,483,221 ECONOMIC DEVELOPMENT AUTHORITY OF BROOKLYN CENTER EARLE BROWN HERITAGE CENTER ANNUAL OPERATING BUDGET 1991 1992 1993 1994 REVENUES Actual Actual Adopted Budget --- - - - - -- --- - - - - -- --- - - - - -- --- - - - - -- Convention Center: Room Rental Revenue 217,729 317,488 410,000 465,000 Equipment Rental Revenue 36,327 48,291 59,500 63,000 Other Revenue 26,788 57,236 37,500 60,500 Inn on the Farm: Guest Room Rentals 132,155 166,515 190,000 189,400 Facility Rentals 5,624 8,930 12,100 12,100 Other Revenue 15,380 9,735 9,830 9,850 Commercial Office Rentals: Office Rent 88,399 108,842 112,975 116,363 Cleaning Services 2,337 3,629 3,960 4,620 Other Revenue 182 802 340 340 Catering Revenues 62,065 73,689 100,000 958,125 --- - - - - -- --- - - - - -- --- - - - - -- --- - - - - -- TOTAL REVENUES 586,986 795,157 936,205 1,879,298 --- - - - - -- --- - -� - -- --------- --- - - - - -- EXPENSES Olaries & Wages 370,192 503,923 490,715 534,349 Fringe Benefits 63,488 100,918 108,732 116,761 Supplies 62,643 60,577 73,432 74,627 Consulting 45,496 16,277 9,450 11,686 Communications /Advertising 145,110 151,482 140,285 117,315 Repairs, Rentals, & Maint. 48,660 42,365 39,860 53,420 Other Contractual Services 81,235 95,079 101,823 109,849 Insurance 9,108 9,433 9,625 8,620 Utilities 94,562 120,713 107,683 119,265 Capital Outlay 35,716 22,537 Interest 10,423 9,142 6,000 8,000 Merchandise, Food & Bever. 15,194 19,975 9,856 11,750 Contingency 10,000 Catering Expenses 834,516 --- - - - - -- --- - - - - -- --- - - - - -- --- - - - - -- TOTAL EXPENSES 946,111 1,129,884 1,133,177 2,032,695 --- - - - - -- --- - - - - -- --- - - - - -- --- - - - - -- Loss Before Transfer (359,125) (334,727) (196,972) (153,397) --- - - - - -- --- - - - - -- --- - - - - -- --- - - - - -- Transfer from T.I.F. Dist. 359,125 334,727 196,972 153,397 --- - - - - -- --- - - - - -- --- - - - - -- --- - - - - -- Net Income (Loss) 0 0 0 0 ECONOMIC DEVELOPMENT AUTHORITY OF BROOKLYN CENTER E.B. FARM TAX INCREMENT DISTRICT FUND ANNUAL OPERATING BUDGET 1992 1993 1993 1994 REVENUES Actual Estimated Budget Budget Tax Increments 1,379,425 1,535,200 1,196,750 1,350,000 Land Sale 336,327 TOTAL REVENUE 1,715,752 1,535,200 1,196,750 1,350,000 EXPENDITURES Debt Service: Bonds of 1985 308,102 560,000 560,000 600,000 Bonds of 1991 620,000 640,000 640,000 650,000 Refinanced Bonds of 1992 249 Internal Borrowing Interest 119,511 95,000 170,000 104,000 Projects: 0 E.B.H.C. Projects 104,530 E.B.H.C. Capital Outlay 38,862 County Administration Expense 1,041 1,042 1,100 1,100 Legal Fees from Land Transaction 18,840 Transfer to E.B.H.C. Fund 334,727 180,000 200,058 153,397 - - - - -- --- - - - - -- --- - - - - -- --- - - - - -- TOTAL EXPENDITURES 1,545,862 1,476,042 1,571,158 1,508,497 Fund Balance, January 1 (2,441,218) (2,271,328) (2,212,170) Fund Balance, December 31 (2,271,328) (2,212,170) (2,370,667)