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HomeMy WebLinkAbout1993 02-08 EDAP Regular Session EDA AGENDA CITY OF BROOKLYN CENTER FEBRUARY 8, 1993 (following adjournment of City Council meeting) 7 p.m. 1. Call to order 2. Roll Call 3. Approval of Minutes: a. EDA Minutes - January 11, 1993 - Special Session 4. Discussion Item: a. Authorization for Management Audit of the Earle Brown Heritage Center 5. Adjournment CITY OF BROOKLYN CENTER cameo Meeting Date Febniary s. 1993 Agenda Item Number 3 REQUEST FOR COUNCIL CONSIDERATION ITEM DESCRIPTION: EDA MINUTES - JANUARY 11, 1993 - SPECIAL SESSION DEPT. APPROVAL: Brad Hoffman, A Coordinator I y MANAGER'S REVIEW/RECOM IENDATION: No comments to supplement this report Comments below /attached SUMMARY EXPLANATION: (supplemental sheets attached _) i RECOMMENDED CITY COUNCIL ACTION 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 JANUARY 11, 1993 CITY HALL CALL TO ORDER The Brooklyn Center Economic Development Authority met in special session and was called to order by President Todd Paulson at 8:30 p.m. ROLL CALL President Todd Paulson, Commissioners Celia Scott, Dave Rosene, Barbara Kalligher, and Kristen Mann. Also present were City Manager Gerald Splinter, Director of Community Development Brad Hoffman, City Attorney Charlie LeFevere, and Council Secretary Nancy Berg. APPROVAL OF MINUTES DECEMBER 10. 1992 - SPECIAL SESSION There was a motion by Commissioner Scott and seconded by Commissioner Rosene to approve the minutes of the December 10, 1992 EDA meeting as printed. The motion passed unanimously. RESOLUTIONS The City Manager presented a Resolution Authorizing the Executive Director to Write -Off Uncollectible Accounts Receivables. He explained the resolution would write -off uncollectible accounts receivable for the Earle Brown Heritage Center. The City Manager further explained collection efforts by staff had been exhausted and the event accounts had been turned over to a collection agency. The collection efforts will continue by the agency, and if the resolution is adopted, the accounts will be removed from the receivable records and charged off as uncollectible accounts. RESOLUTION NO. 93 -01 Commissioner Scott introduced the following resolution and moved its adoption: RESOLUTION AUTHORIZING THE EXECUTIVE DIRECTOR TO WRITE -OFF UNCOLLECTIBLE ACCOUNTS RECEIVABLES 1/11/93 - 1 - The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Kalligher, and the motion passed unanimously. The City Manager presented a Resolution Designating Depositories for EDA Funds. RESOLUTION NO. 93 -02 Commissioner Rosene introduced the following resolution and moved its adoption: RESOLUTION DESIGNATING DEPOSITORIES OF EDA FUNDS The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Scott, and the motion passed unanimously. ADJOURNMENT There was a motion by Commissioner Scott and seconded by Commissioner Kalligher to adjourn the meeting. The motion passed unanimously. The Brooklyn Center Economic Development Authority adjourned at 8:40 p.m. Todd Paulson, President Recorded and transcribed by: Nancy Berg TimeSaver Off Site Secretarial 1/11/93 -2- CITY OF BROOKLYN CENTER c ouncil Meeting D ate FEhnag 8.1993 Agenda Item Numbe� REQUEST FOR COUNCIL CONSIDERATION ITEM DESCRIPTION: AUTHORIZATION FOR MANAGEMENT AUDIT OF THE EARLE BROWN HERITAGE CENTER DEPT. APPROV . Brad Hoffma , Director of Community Development MANAGER'S REVIEW/RECOnEWENDATION: No comments to supplement this report Comments below /attached SUMMARY EXPLANATION: (supplemental sheets attached _) At the May 18, 1992 EDA workshop, staff requested the commission to consider a proposal from Marquette Partners to perform a comprehensive evaluation of the Heritage Center's operation. Marquette Partners is a small firm specializing in workouts for troubled or difficult properties in the hospitality industry. At the time, it was suggested by staff that it would be beneficial to have an independent review of the entire operation, including management, staffing levels, operation costs, market niche and pricing. Marquette Partners had been recommended to the EDA from a variety of sources, all of whom were in the hospitality industry. In recommending the review of the Heritage Center's operation, staff hoped to identify areas in need of corrective action, including an assessment of our degree of competitiveness with our competition, new potential markets, as well as cost reduction possibilities. At the time, a specific proposal had not been finalized but the cost was estimated to be up to but not exceeding $10,000. The commission decided at that time not to go forward with the study pending further information about sales levels, pricing, etc., relating to the addition of another sales position. Staff has since provided the requested information about an additional sales position and the position was created. However, I am still of the opinion that an objective outside review of the operation is a worthwhile pursuit. In the best case scenario, such a study would tell us we are on • the right track and do nothing different or it could suggest changes that would put the Center in the black sooner. In the worst case, it would tell us the Center will never operate in the black and suggest ways to reduce the red ink. In any case, it will provide the commission with additional information upon which decisions about the Center can be made. Monday evening, I would propose that staff be directed to bring a proposal from Marquette Partners back to the EDA for acceptance if the commissioners are comfortable with using Marquette Partners. If not, then staff should be directed to develop the appropriate RFP for the EDA's approval and proposals will be solicited from a variety of interested parties. • I will be available Monday g evenin to discuss this item. RECOMMENDATION: Either proceed with Marquette Partners or develop a request for proposal. • M M �� MAP - �r P . '0.00MAt t IIrATf II RViCt; February 5 1993 Judith Berelantl . . �x�c;utivg biz�ctc�r , Earle Brown Heritage Center 6155 Earle Brown Drive Brooklyn Center, MN 55430 Dear Ms- Bergland; in response to your regaest we are pleased to present this proposal to 'provide marketing and opei - ational consulting services to the Earl Brown Hf fltage Center. In the following proposal we describe the scope ' of analysis, the methodology. we' intend 'td `use, communication of findings and our prt ro.ssional fees. We understand that business at the Heritage Center continues to improve os the Center estai llshes its market position among atea conference and bffncttiet facilities. Accordiogly, tl.tls is an opportune time to examine the Center's marketing program and sales efforts to determine if'it is pursuing a niche approprlatc for the facilities and conditions that exist in ttlis Twin Cities marketplace, The objective of our Work will be to eutnment . on and provide iuggestions regarding suvb operational &rcas as sales efforts, staffing, pricing, market position, markets to pursue and other similar concerns that come 16 our attention during the analysiss, iii larder to improve the financial success of the Center. METHODOLOGY In this proposal we describe two levels of analysig; the first level involves analysis of existing records, financial operating statements, functlon streets, evaluation forms and ether Internal documonts that will help us to understand the ge:ttion. T ' second level of analysis involves market research among exlsting Center users as well as non - users, to Identify market perceptions and vpinlons. This Information would provide Independent support for the , more 6ubJmt1ve findings and 6onclusions that will, be developed from the Internal analysis. Hospitality Consulting Gr oup � IL Minneapolis, 700 Notthstar East • 608 2nd Ave. So. • nneapolis, MN $5402 Phone: 612-313-65t5 * FAX; 6 t 2- 338 -2216 February 5, 1993 • Ms. Judith Bergland Page 2 Phase I. JUterngl Evaluation This phase of our analysis includes examination of existing opemdons to identify the nature of the Center's business and generAl operations. 'Through evaluation of cuffent operations and utilization patterns, we will make subjective twommendations based on our findings and out knowledge and experience in the, Turin Cities hospitality industry. More specifically, our analysis wil include the following tasks: We will tour all of the Center's facilities and interview the people In key management positions; We will review the existing pricing structure and policies concerning daft use, functions and concessions /catering; We will review evaluation forms subinitted by past users to identify recurring probleans, guests, perceptions, etc.; We will evaluate the utilization pattcros for all of the various facilities within the Center, based on trade sheets or other surninarys to be obtained from • management. Patterns of interest will be time of week (weekend, midweek, evenings), average group size and type of group (busltteass vs. Social), We will evaluate the present. level of sales efforts, including brochures and promotional materWs, staffing, reporting and follow -up procedures, Bard on the Information obtained, the results of our analyses and our knowledge and experience In the hospitality Industry, we will make suggestions and mommendations regarding the Center's operations, that may include the folowing areas: Staffing - Pricing - Appropriate tna -rket position - Potential markets to pursue - Ways to enhance image February 5, 1493 Ms. Judith Bergland Page 3 Phase 11! MarkeLgesearch This phase of our study is era optional opportunity to analyze snore critically the Centers market Position within the am "s competitive conference and banquet market. The scope of analysis In this pltam would include interviews with both users and non -users of the Center tend with competitive conference facilities to identify the Center's strength` and weaknesses and also trends in the local industry, COMM UMCATIUIV' We will meet with you at the conclusion 'of our study to discuss our findings, conclusions and recommendations, and to explore potential action plans to achieve the desired rpmults. We will then document our findings and recommendations Ina brief written report. ESMIATED TNIE FRAME AND FEES Our professional fees are+ based on the time required to complete the assignment, billed at our standard hourly rates of $175 for Steve Sherf and $175 for Jim Klas who would perform a substantial amount of the research on this engagement. used on the scope of work outlined above, out fees for both levels of research are esthnated as follows: Internal Evaluation $5,000 Market Research $3,000 -5,000 We anticipate that that the level I analysis can be completed In three weeks with the report following in an additional week. The level II analysis would require two to three additional weeks to eottiplete, depending on the amount of Interviews to be conducted. Out fees will not excel the amounts quoted above unless the scope of the engagement is substantially expanded beyond the enclosed description. If at any point you choose to discontinue the study, you will be baled only for the fees incurred to that point. We willrequlm a retainer in the amount of $3,000to begin the study; the remainder of our fee will be due at the conclusion of the engagement, prior to our release, of the final report. February S, 1993 Ms. Judith Bergland Page 4 ACCEPTANCEPROCEDUWS We appreciate the opportunity to present this proposal to yoa. We believe that we can provide valuable insights and suggestions and look forward to working with you Ott this assignment. If this m e e ts wi your approv lease si n the enclosed a c0 g P�Po� ee i � p S y PP copy and return it to us along with a check for the retainer as authorization for us to proceed. If you have any questions regarding this pmpoml or wish to discuss the matter further, please do not hesitate to call. Very truly ours, n MARQUE TE PARTNERS '�� %4j . %�4 I Stephen W, Sherf Vice President Hospitality Consulting Group