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HomeMy WebLinkAbout1992 05-18 EDAP Work Session EDA WORK SESSION 7:00 P.M. EARLE BROWN HERITAGE CENTER TACK ROOM MONDAY, MAY 18, 1992 1. Call to Order: 7:00 p.m. 2. Roll Call 3. Approval of Minutes - March 18, 1992 4. Brooklyn Center Business Expansion and Retention Program 5. Earle Brown Heritage Center Report 6. Art Show - Brooklyn Center Promotional Event 7. Status Report on 6715, 6717, 6719 and 6721 Humboldt Avenue 8. Status of EDA Owned Property at 5449 Emerson Avenue North 9. Other Business 10. 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 EDA SPECIAL WORK SESSION MARCH 18, 1992 EARLE BROWN HERITAGE CENTER CALL TO ORDER The Brooklyn Center Economic Development Authority met in special session and was called to order by President Todd Paulson at 7 p.m. ROLL CALL President Todd Paulson, Commissioners Celia Scott, Dave Rosene, and Philip Cohen. Also present were City Manager Director Gerald Splinter, EDA Coordinator Brad Hoffman, Heritage Center Manager Judith Bergland, and Assistant EDA Coordinator Tom Bublitz. Commissioner Jerry Pedlar was absent from the meeting. 1992 EARLE BROWN HERITAGE CENTER MARKETING PLAN The EDA Coordinator reviewed the January 19, 1992, monthly report for the Earle Brown Heritage Center. He explained from one year ago in January 1991, there has been a significant increase in revenue and also an increase in operating costs for the Heritage Center. He explained 1992 revenues are showing a steady increase relative to 1991. The EDA Coordinator explained the revenue from the Bed - and - Breakfast is up "from one year ago in 1991, and February 1992 has been the best month to date at the Bed- and - Breakfast. The EDA Coordinator introduced Mr. Merrill Busch who presented the 1992 marketing plan for the Earle Brown Heritage Center. Mr. Busch reviewed a display of existing ads for the Heritage Center and explained the primary effort for the marketing program..is print media for both the Heritage Center and the Bed -and- Breakfast. He then reviewed the publications where existing ads are run for the Heritage Center and Bed - and - Breakfast. Mr. Busch explained that last year's emphasis was to introduce the facility to meeting planners along with the Bed - and - Breakfast facility. In 1992, the effort will be to refine the marketing approach and focus on endorsements from past users of the facility. With regard to the Inn, the focus will be on concentrating the message to fill the early part of the week and obtain more event driven stays. Birthdays, anniversaries, and other special events are also a focus as well as smaller business meetings at the Inn. In 1992, the focus for the Heritage Center will be on specific market segments including business, professional, associations, legal seminars, medical training and education, and special markets. In the 1992 campaign, endorsements will be obtained from past users along with testimonials from past users to promote the facility. 3 -18 -92 -1- Commissioner Cohen inquired as to the total audience which will be targeted in the marketing promotion. In response to Commissioner Cohen's question, Mr. Busch pointed out the following publications and there estimated audiences: Star & Tribune Bed - and- Breakfast Directory 700,000, Minnesota Monthly Magazine 80,000, State -wide Minneapolis /St. Paul Magazine 60,000, State -wide Home and Away Magazine 300,000, Minnesota Ventures 30,000, Minnesota Calls 30,000, Minnesota Womens' Press 15,000, and Country Inn 250,000. Circulation for the Convention Center included noted the following specific audiences: Corporate Report 25,000, Purchasing Managers 8,000, and Minnesota Ventures 35,000. Commissioner Cohen stated he would like to see the City of Brooklyn Center promoted in the marketing campaign as well as the facility. He pointed out he believes this would strengthen the overall community image, and this marketing promotion provides an opportunity to promote the City's image in a positive light. He stated he would like to see Mr. Busch and his staff consider this in their campaign. He emphasized that he believed the City is in an image position that cannot be isolated from the Heritage Center. Adding to Commissioner Cohen's comments, Commissioner Scott suggested the Chamber of Commerce could do something for local employers to provide something to their employees to promote the City along with local businesses. EARLE BROWN HERITAGE CENTER CAPITAL OUTLAY REQUESTS The EDA Coordinator introduced the items to be considered for capital outlay including 300 chairs for the Heritage Center, window treatments for the Inn, and use of the C Barn. He explained the first request is for 300 chairs to be used for outside use and to supplement the chairs used inside. Presently, the Heritage Center has 1,100 chairs and when the facility is fully utilized inside, there are no chairs left to be used outside the facility. He explained the estimated cost of the 300 chairs is approximately $12,000 including storage caddies. The EDA board discussed the purchase of the chairs, and questions arose as to the weight and testing including a concern over the quality of chairs and making certain that the hinges on the folding chairs will hold substantial weight. In consideration of the additional capital outlay request items, the EDA board proceeded to the C Barn and Inn to consider the other capital outlay requests. The EDA Coordinator explained the C Barn is presently used for meeting space, and the option other than continued use as meeting space would be to try to lease the property which would cost approximately $20 per square foot in tenant improvements. Also, he pointed out it would cost between $36,000 - $40,000 to do the needed tenant improvements to lease the upstairs of the C Barn. He noted that if the C -Barn is used for meeting space, the building will not be on the tax rolls, but if it is leased it will be on the tax rolls. Additionally, he explained the meeting space use of the C Barn will generate more income than leasing it with approximately $50,000 per year in revenue for meeting space, and $17,000 per year for leased space. The EDA members proceeded to the Inn where the EDA Coordinator explained the only window treatments in the rooms presently are window blinds. The cost estimate to do the additional window treatments is approximately $10,865. 3 -18 -92 -2- The EDA Coordinator explained if the EDA agrees with the staff recommendations on the three capital outlay requests, staff will prepare a resolution for formal EDA consideration. The EDA returned to the Heritage Center where they continued their discussion of the capital outlay requests. The EDA discussed opening up the ceiling area of the C Barn with a vaulted ceiling thereby eliminating the upstairs space and improving the appearance of the facility for meeting space. President Paulson requested delaying action on the C Barn until the March 23, 1992, meeting. There was a motion by Commissioner Rosene and seconded by Commissioner Scott to authorize the staff to pursue the purchase of the 300 chairs and window treatments for the Bed - and - Breakfast facility, not to exceed $13,000 for the purchase of the chairs and $11,000 for the purchase of the window treatments. The motion passed. There was a motion by Commissioner Cohen and seconded by Commissioner Rosene to table consideration of the capital request for the C Barn until the March 23, 1992, EDA meeting. The motion passed. COMMERCIAL /INDUSTRIAL REDEVELOPMENT OUTLINE The City Manager introduced the draft of the commercial /industrial redevelopment outline and explained the purpose of the draft is to begin to focus on modifying the existing comprehensive plan in conjunction with the recommendations of the Maxfield Commercial /Industrial Study and the Brooklyn Boulevard Study. He explained the redevelopment plan will begin to develop an approach to commercial /industrial redevelopment in the City. The EDA Coordinator proceeded to review the community vision draft outline. He began the focus of the outline on Brookdale and pointed out it is one of the main economic engines that drives much of the north suburban area. He explained he had met recently with the manager of Brookdale, and the City is exploring various financial packages with Brookdale Center. Another major element of the redevelopment plan is a pro- active business expansion and retention program for local businesses which would include the entire north metro area. The north metro local economy would be defined as Brooklyn Center, Brooklyn Park, Fridley, and Blaine. He explained there has been staff level discussions to create an organization to promote businesses within these member cities and to promote the sale of products within this market. He pointed out there are almost 500 businesses operating in the City of Brooklyn Center, but the City has no accurate record of what they are and what they do. One of the features of the plan would be to build a data base and link businesses with common needs even to the extent of joint purchasing. He explained Senator Bill Luther is assisting the north metro area with a grant to provide financial assistance in beginning to establish the business retention /expansion data base. He pointed out the concept is to create living wage jobs and opportunities in the north metro market area. He explained further that cities could initiate the program and ultimately may work on it or it could 3 -18 -92 -3- become its own separate organization. Commissioner Cohen pointed out the three major anchor points in the north metro area include the Brooklyn Center Heritage Center, the Edinburgh Golf Course and meeting facility in Brooklyn Park, and the Blaine Sports Center. The EDA Coordinator continued his review of the draft outline and explained the issue of multi - family apartment units is included since they are presently an excess of multi - family apartments in the north metro area, and this has an impact on the redevelopment objectives. Commissioner Cohen suggested a wording change in objective C with regard to multi - family buildings. He stated he would like to see the language change to read, "reduce and /or restructure the number and type of multiple family dwelling units to be more consistent with market demand and future needs." The EDA Coordinator discussed various elements of image enhancements for the City including plans for a new informational /promotional piece for the City which would consist of a printed folder promoting the City which will accommodate a variety of inserts from various City departments, along with information from school districts and the Chamber of Commerce. He explained the concept is to tailor make the packet for each end user. The City Manager pointed out the City is in a maintenance cycle with regard to development and existing ordinances of the City reflect rules and regulations most pertinent to a growth phase. In short, the existing ordinances may be outdated for the City's current needs. President Paulson indicated that he had a favorable impression of the community vision draft outline presented by staff and had a number of recommendations for additions and revisions to the document. The following additions and revisions to the community vision draft outline were noted by EDA President Paulson: OBJECTIVES f. Create a sense of community through pursuit of a neo- traditional style of town planning and building architecture. g. Pursue a path along the outline in the Wilson quarterly article of winter 1992 entitled "The Second Coming of the American Small Town." h. Avoid becoming an urbanized suburb and avoid becoming an "Edge City as written about in the book Edge City. i. Be creative, innovative, open- minded, and persuasive. COMPREHENSIVE PLAN d. Revise the comprehensive plan and ordinance to reflect the objectives stated above particularly letters f, g, h, and i. e. Remove some traditional suburban barriers to creative development by reducing setback requirements or parking space and location requirements. 3 -18 -92 -4- BROOKDALE b. Promote Brookdale as a mass transit hub and provide convenient, frequent, and reliable transit to Brookdale. d. Establish a Brooklyn Center presence in Brookdale either through a Brooklyn Center booth or Earle Brown Heritage Center booth. BUSINESS EXPANSION RETENTION d. Search for, discover, and design a downtown Brooklyn Center. Make us a main street. e. "Buy Brooklyn Center" or "Buy North Metro Program." In addition to the revisions noted under this section, President Paulson suggested that the business expansion /retention section be removed and pursued as a separate topic in all further discussions unless it relates to specific Brooklyn Center planning and development issues, since this would be approached on a regional or subregional basis. LIFE STYLE ISSUES e. Set up a community that invites people to walk, bike, bus, or wheel chair around the City. Movement of cars is less important than movement of people. f. Use the Planned Unit Development ordinance to mix and merge multi - uses on single lots. Examine housing above businesses for low - income persons or employees. g. Foster an education ethic, attract the intelligentsia, bookshops, news stands, schools, and colleges. h. Search for, discover, and design a plan for downtown Brooklyn Center. i. Build buildings closer to the style exemplified by the Earle Brown Heritage Center. That is, move to human scale, and less glass, concrete, and steel box buildings. COMMUNITY PROMOTION g. Integrate promotional roles of communications coordinator, volunteers, commissions, and committees with this new direction in development. Commissioner Cohen suggested the City would need to determine out what the overall redevelopment program is going to cost. Commissioner Rosene commented the joint meeting recently held with Brooklyn Park is an example of getting groups together and perhaps getting the City commissions together once a year would also be advisable. - The EDA Coordinator stated he would like to see some direction from the EDA specifically regarding the business retention concept and the proposed grant 3 -18 -92 -5- through the Department of Trade and Economic Development. Commissioner Cohen recommended the staff be directed to incorporate the comments made this evening, by the EDA, on the redevelopment policy, and circulate it to the EDA, and have the EDA take formal action and proceed with the grant for the business retention program. There was a motion by Commissioner Scott and seconded by Commissioner Rosene to approve the business retention plan as presented by staff and to direct the staff to seek grant funding for costs related to the start -up and creation of a data base for the business retention program for the north metro area. The motion passed. There was a motion by Commissioner Cohen and seconded Commissioner Rosene to approve the community vision draft outline for commercial /industrial redevelopment in concept and incorporate the comments of commission members and circulate the document to the Chamber of Commerce and return the document to the EDA board at the meeting after the next EDA meeting. The motion passed. MINNESOTA CITY PARTICIPATION PROGRAM The Assistant EDA Coordinator explained the Minnesota City Participation Program (MCPP) is a mortgage program offered through the Minnesota Housing Financing Agency (MHFA) for first -time home buyers. Through the MCPP, the MHFA sells bonds on behalf of cities participating in the program. The interest rates on these mortgages are typically one and one -half to two percentage points below market mortgage interest rates. The Assistant EDA Coordinator explained the advantage of the Minnesota City Participation Program is the City would have a specific set aside of mortgage funds for first -time home buyers and would be able to market and promote the program. In order to apply for the program, the City must submit an application identifying the local housing needs relative to the program. The City must also submit a proposal deposit equal to one percent of its requested allocation, and the deposit will be returned upon the sale of the mortgage revenue bonds. Cities may apply for a maximum set aside of $4,000,000. The Assistant EDA Coordinator pointed out that initially, the program will require a considerable amount of staff time to respond to inquiries and requests for information on the program. The major cost to the City will be in the area of marketing the program. He concluded by stating that if the EDA board decided to participate in the program, staff would request a motion to authorize preparation of an application for the Minnesota City Participation Program. There was a motion by Commissioner Scott and seconded by Commissioner Cohen to authorize the staff to prepare an application for the Minnesota City Participation Program. The motion passed. PURCHASE PLUS UPDATE The Assistant EDA Coordinator explained the City of Brooklyn Center, along with the cities of Richfield, Rochester, and Red Wing have been participating in a test market for the Purchase Plus Program offered through the Minnesota Housing 3 -18 -92 -6- f Finance Agency (MHFA). Continuing, he explained the Purchase Plus Program is a special financing program which provides permanent mortgage financing to combine the cost of remodeling and the cost of the mortgage for refinancing existing homes or buying a new home. The Assistant EDA Coordinator explained City staff has placed several articles in the City newsletter and to date, the program has generated a substantial amount of interest, but based on the information staff has presently, no one in any of the cities has yet completed a purchase plus loan. He added he had met with a representative of the MHFA staff on Tuesday, March 17 to discuss the status of the Purchase Plus Program. He pointed out the MHFA staff member indicated the Purchase Plus Program is certainly not meeting the expectations they had originally planned for the program. He added that originally the program was designed to have local lenders originate the loans, but due to the back log of refinancing faced by many lenders, MHFA staff will now be originating the Purchase Plus loans. He added that the MHFA staff indicated they want to become more involved in the program early on and to assure that a high level of service provided to people interested in the program. The Assistant EDA Coordinator indicated there are obviously serious problems with the Purchase Plus Program since there appears to be little activity to date. One of the specific problems appears to be the length of time involved in completing a Purchase Plus loan transaction and the amount of uncertainty as to the exact procedures for persons wishing to participate in the program. Commissioner Cohen commented his neighbor had applied for a Purchase Plus loan and the time - period for completing the transaction was six months which is entirely too long a period of time and unacceptable in terms of a reasonable period of expectation for someone desiring to complete a mortgage transaction. Ultimately, he pointed out his neighbors elected to not go through with the loan transaction. CITY USE OF EARLE BROWN HERITAGE CENTER The EDA Coordinator reviewed his memorandum regarding the establishment of booking guidelines for the Earle Brown Heritage Center. His recommendations focused on the establishment of pricing and booking guidelines so that the staff can continue to provide the best possible service to both paying and nonpaying clients. Commissioner Cohen commented he believes the major goal is to strike a balance between the financial health of the center and the community needs for space. The City Manager explained the City can refine the guidelines presented this evening and bring back a more specific set of guidelines for formal approval but for the present time he suggested that all reservations for meeting space at the Heritage Center be taken through the EDA Coordinator. President Paulson commented that one of the primary needs is to look at the facility as a public facility. He added the facility has not been structured so the public can use it. The EDA Coordinator briefly reviewed the contract with Atrium catering and the potential for some possible changes in the contract. 3 -18 -92 -7- President Paulson discussed his desire to see some of the bad news as well as the good news regarding the Heritage Center. He expressed a concern that he is not seeing all the bad news with regard to the Heritage Center. The City Manager commented that staff does send the EDA board comments on the operations of the center. He added that in development of the Earle Brown Heritage Center the issue of revenue production versus the use of the facility by the public will be a considerable conflict. The EDA board continued its discussion of the use of the Earle Brown Heritage Center and the cost associated with maintaining the facility in a more open position to the public. ADJOURNMENT There was a motion by Commissioner Cohen and seconded by Commissioner Rosene to adjourn the meeting. The motion passed. The Brooklyn Center Economic Development Authority adjourned at 10:38 p.m. Todd Paulson, President 3 -18 -92 -8- MEMORANDUM TO: Gerald G. Splinter, City Manager FROM: Brad Hoffman, EDA Coordinate, , / DATE: May 12, 1992 SUBJECT: Brooklyn Center Business Expansion and Retention Program Monday evening I would like the EDA to consider the enclosed proposal for a business retention /expansion program. The program was previously discussed at the February EDA work session. Also, Joseph Strauss will be available to discuss the concept in greater detail. The proposal before you outlines a more detailed description of the plan. You will note that should Brooklyn Center elect to participate, we should be prepared to commit for three (3) years minimum. The cost would be an estimated $30,000.00 annually. At the time I am writing this memo, I am exploring the potential for using CDBG funding. I will give you more detail Monday on this funding source. If not available, I would recommend that we use EDA levies for this activity. You should be aware that the actual survey instruments would not be finalized until we know which communities will be involved. At that time, specific community needs would be addressed. Also, the communities will need to establish the organization through a joint powers agreement, all of which comes back to the EDA for comment and approval. Monday evening, if the EDA is inclined, I would recommend that staff be instructed to draft a resolution to fund Brooklyn Center's participation. MEMORANDUM TO: Gerald G. Splinter, City Manager FROM: Brad Hoffman, EDA Coordinator -, DATE: May 12, 1992 SUBJECT: Earle Brown Heritage Center Quarterly Report Monday evening I would like to review the status of the Heritage Center through the first quarter of 1992. Attached are the monthly reports for January, February and March. The initial glance at these reports tends to be misleading. The deficit between revenues and expenses appears to be significantly higher (55.2 % for the quarter) in 1992 through 1991. As we review the reports, it is important to recall that one year ago the EDA was in the transition from management by EBF to ourselves. There was no real budget at the time (certain expenditures were not allowed until a new budget was established), nor was there a real accounting system in place. On the expense side, 23.2% of the budget has been expended. If that pattern continues, we could anticipate expenditures to run an estimated $82,000.00 under budget. One of the highlights is the use of part-time help for maintenance and set -ups. Through the first quarter, they have used only 16 % of the hours budgeted to them. Over the past year, I believe we have identified what the real operational costs for the facility are. We have identified a number of areas where savings could be realized and have taken steps to make the appropriate changes. There are also a number of opportunities which we will discuss Monday to further reduce our operational costs. Overall, I believe we have established control over the operational expenditures of the Heritage Center. On the revenue side, you will note that the Heritage Center is up 63.3 % over the first quarter. It should be noted that the biggest component of our revenues, the rental of the conference center and related income, has a 6 to 12 month lag behind sales. In other words, the revenues we are receiving now are for the most part the result of sales last fall. The down side is that during the first quarter of 1992, the Heritage Center generated only 16.1% of the projected revenue. The first quarter is generally one of the slowest quarters, however, it would be more assuring had the revenue been around the 20% point. Convention center rentals averaged $4,200.00 per week during this period and we need to bring in $7,900.00. I referred to the lag in time between sales and revenue. During the first quarter, weekly sales have averaged $8,018.00. At that rate, revenue should project to $12,530.00 per week at the center which is in line with the budget projection. The Inn is currently running slightly ahead of budgeted operating projections but I am confident it will come in on line by year's end. Currently, revenues are running at 81 % of projection. Again, this is a slow quarter and I would anticipate that this gap will close during the year. Two (2) of the office space leases are up at the end of this year. I will be renegotiating them this fall. However, during the first quarter the office rental has generated a net profit of $4,506.00. At this time, I would like to recommend that the EDA consider a proposal from Marquette Partners to perform a comprehensive evaluation of the operation of the Heritage Center. Marquette Partners is a small firm that specializes in workouts for troubled or difficult properties in the hospitality industry. They were recommended to us by the owner of Days Inn and the Riverwood Conference Center. After a year of direct management of the Center by the EDA, I feel it would be beneficial to have an independent review of what we are doing along with necessary corrective suggestions. Attached you will find a copy of the proposal from Marquette Partners. I would propose that this analysis be funded out of the Heritage Center's advertising budget. Another area of concern to me that I would like to discuss Monday is the sales staff. It has been my observation that the sales staff is reacting to incoming calls only. I am concerned that we are not out on the street making direct contact with people to expand our market. Ads in papers and magazines only create an awareness and then only to a certain level. The current staffing level is not sufficient to do what needs to be done. I believe we need additional sales staff in order to expand our business. Our current staff can barely keep up with the incoming calls. I would propose that we defer any decision until after the Marquette study. Finally, most of you are aware that D'Amicos, the managing firm for Atrium Catering, was fired shortly after the Super Bowl. Atrium continues to provide catering services under the contract. Atrium, which is a subsidiary of Omega Food, is being sold to Safeco, a large insurance company. Safeco wants to keep the catering at the Heritage Center. D'Amicos also wants to be the catering provider. Monday evening I will update you on the current status of my discussions with the two groups. This could have a significant impact on the revenues being generated at the Heritage Center. -2- American Automobile Association 1000 AAA Drive Heathrow, Florida 32746 -5063 4071/444 -7000 FAX 407,444 -7380 May 6, 1992 Telex 89 -9485 City of Brooklyn Center 6150 Summit Drive N. Brooklyn Center, MN 55430 RE: Inn on the Farm Minneapolis, MN Dear Sir or Madam: Thank you for your recent letter advising us of the steps that you have taken to correct the problems noted during our initial evaluation. Based upon your assurance, your property has been approved for listing in the TourBook. The listing for your property will appear with a three diamond rating. As an added benefit, information on your property will be available to AAA travel counselors who use TravelMatch, our electronic booking system. While a listing for your property will not appear in a TourBook until the next edition is published, TravelMatch will allow travel counselors to offer your property to members within the next 45 days. Less than 40% of the lodging establishments throughout North America qualify for AAA approval. Your listing in the TourBook reflects a commitment by you and your staff to provide superior accommodations to the traveling public. We appreciate your interest in the AAA TourBook and thank you for welcoming AAA members to your establishment. Sincerely, Diane M. Thomas Inspection Coordinator TourBook Inspections National Travel Department (407) 444 -8373 DMT /ek cc: Ms. Lynn Mottaz, Mgr. 569 -6300 • CITY OF BROOKLYN CENTER., MINNESOTA EARLE BROWN HERITAGE CENTER . FINANCIAL REPORTS FOR THE MONTHS AND PERIODS ENDED JANUARY 31, 1992 & 1991 F Department of Finance EARLE BROWN HERITAGE CENTER STATEMENT OF REVENUES AND EXPENSES FOR THE MONTHS AND PERIODS ENDED JANUARY 31, 1992 and 1991 January January YTD YTD 1992 1991 1992 1991 Operating Revenues Convention Center 25,812 5,280 25,812 5,280 Inn on the Farm 8,993 5,472 8,993 5,472 Commercial Office rentals 9,295 6,637 9,295 6,637 Total Revenues 44,100 17,389 44,100 17,389 Operating Expenses Personal Services 40,836 10,665 40,836 10,665 Supplies 3,439 4,785 3,439 4,785 Services & Other Charges 26,397 26,882 26,397 26,882 Utilities 10,146 9,792 10,146 9,792 Total Expenses 80,818 52,124 80,818 52,124 Net Loss (36,718) (34,735) (36,718) (34,735) Convention Center Statement of Revenue & Expenses For the Month Ended January 31, 1992 Operating Revenues Januar y Year to Date Room Rentals 15,530 15,530 Food & Beverage Revenue 0 0 Equipment Rentals 4,325 4,325 Event Labor & Equipment Charges 4,465 4,465 Other 1,492 1,492 Total Revenues 25,812 25,812 Operating Expenses Personal Services: Salaries & Wages 19,316 19,316 Payroll Taxes 2,798 2,798 Employee Benefits 957 957 Total Personal Services 23,071 23,071 Supplies: General Operating Supplies 1,683 1,683 Repair & Maint. Supplies 438 438 Total Supplies 2,121 2,121 Services & Other Charges: Professional Services 269 269 Administrative Services 3,389 3,389 Telephone Services 1,849 1,849 Advertising 1,761 1 Printing 0 0 Repair & Maintenance 988 988 Equipment Rent 2,650 2,650 Other Contractual Services 2,021 2,021 Insurance 585 585 Other 926 926 Total Services & Other Charges 14,438 14,438 Utilities: Electric 3,374 3,374 Gas 3,458 3,458 Water /Sewer 0 0 Waste Disposal 970 970 Total Utilities 7,802 7,802 Total Expenses 47,432 47,432 Net Loss (21,620) (21,620) a a�so� Inn on the Farm Statement of Revenue & Expenses For the Month Ended January 31, 1992 Operating Revenues January Year to Date Room Rentals 8,262 8,262 Facility Rentals 100 100 Meal Sales 593 593 Equipment Rentals 0 0 Other 38 38 ~ Total Revenues 8,993 8,993 -- - - - - -- -- - - - - -- Operating Expenses Personal Services: Salaries & Wages 14,196 14,196 Payroll Taxes 1,829 1,829 Employee Benefits 494 494 Total Personal Services 16,519 16,519 -- - - - - -- - - - - - -- Supplies: General Operating Supplies 801 801 Repair & Maint. Supplies 417 417 Total Supplies 1,218 1,218 - - - - - -- -- - - - - -- Services & Other Charges: Professional Services 0 0 Administrative Services 753 753 Food & Beverages 1,599 1,599 Telephone Services 0 0 Advertising 0 0 Repair & Maintenance 456 456 Equipment Rent 0 0 Other Contractual Services 1,354 1,354 Property Taxes 2,250 2,250 Insurance 156 156 Other 552 552 Total Services & Other Charges 7,120 7,120 - - - - -- - - - - - -- Utilities: Electric 478 478 Gas 903 903 Water /Sewer 0 0 l Waste Disposal 191 191 Total Utilities -- - - - - -- ~ - - - -� 1,572 1,572 Total Expenses 26,429 26,429 -- - - - - -- -- - - - - -- Net Loss (17,436) (17,436) Office Rentals Statement of Revenue & Expenses For the Month Ended January 31, 1992 Operating Revenues January Year to Date Office Rent 8,990 8,990 Cleaning Services 275 275 Other Revenue 30 30 Total Revenues 9,295 9,295 Operating Expenses Personal Services: Salaries & Wages 998 998 Payroll Taxes 180 180 Employee Benefits 68 68 Total Personal Services 1,246 1,246 Supplies: General Operating Supplies 100 100 Repair & Maint. Supplies 0 0 Total Supplies 100 100 Services &Other Charges: - - -~ -M - � -N Property Taxes 3,083 3,083 Professional Services 0 0 Administrative Services 376 376 Telephone Services 0 0 Advertising 0 0 Printing 0 0 Repair & Maintenance 53 53 Equipment Rent 0 0 Other Contractual Services 1,172 1,172 Insurance 155 155 Other 0 0 Total Services & Other Charges 4,839 4,839 Utilities: Electric 437 437 Gas 0 0 Water /Sewer 0 0 Waste Disposal 335 335 Total Utilities 772 772 Total Expenses - - - - -~- - - - - - -- P 6,957 6,957 Net Income 2,338 2,338 a�sosaaa ss-sss ases-s CITY OF BROOKLYN CENTER, MINNESOTA EARLE BROWN HERITAGE CENTER FINANCIAL REPORTS FOR THE MONTHS AND 'PERIODS ENDED FEBRUARY 29, 1992 & 1991 Ff Department of Finance , EARLE BROWN HERITAGE CENTER STATEMENT OF REVENUES AND EXPENSES FOR THE MONTHS AND PERIODS ENDED FEBRUARY 29, 1992 and 1991 February February YTD YTD 1992 1991 1992 1991 Operating Revenues Convention Center 27,156 22,944 52,969 28,223 Ian on the Farm 18,066 7,697 27,058 12,999 Commercial Office Rentals 9,274 6,637 18,569 13,274 Total Revenues 54,496 37,278 98,596 54,496 Operating Expcnsm Personal Services 36,235 20,508 77,066 31,172 Supplies 5,280 3,578 8,721 8,362 Services & Other Charges 28,327 19,647 54,726 47,214 Utilities 9,949 7,184 20,096 16,975 Total Expenses 79,791 50,917 160,609 103,723 Net Loss (25,295) (13,639) (62,013) (49,227) Convention Center Statement of Revenue & Expenses For the Month and Period Ended February 29, 1992 Operating Revenues February Year to Date Room Rentals 13,753 29,283 Food & Beverage Revenue 10,117 10,117 Equipment Rentals 1,280 5,605 Event Labor & Equipment Charges 892 5,358 Other 1,114 2,606 Total Revenues 27,156 52,969 Operating Expenses Personal Services: Salaries & Wages 16,743 36,051 Payroll Taxes 3,080 5,881 Employee Benefits 957 1,914 Total Personal Services 20,780 43,846 Supplies: General Operating Operating Supplies 1,749 3,432 Repair & Maint. Supplies 2,245 2,683 Total Supplies 3,994 ~ 6,115 Services & Other Charges: Professional Services 1,017 1,286 Administrative Services 3,389 6,778 Telephone Services 1,198 3,047 Advertising 6,456 8,217 Printing 0 0 Repair & Maintenance 621 1,610 Equipment Rent 970. 3,620 Other Contractual Services 341 2,362 Insurance 585 1,170 Other 1,046 1,972 Total Services & Other Charges 15,623 30,062 Utilities: Electric 3,315 6,689 Gas 2,897 6,355 Water /Sewer 664 664 Waste Disposal 167 1,138 Total Utilities 7,043 14,846 Total Expenses 47,440 94,869 Net Loss (20,284) (41,900) Inn on the Farm Statement of Revenue & Expenses For the Month and Period Ended February 29, 1992 Operating Revenues February Year to Date Room Rentals 15,053 23,316 Facility Rentals 1,125 1,225 Meal Sales 1,244 1,836 Equipment Rentals 153 153 Other 491 528 Total Revenues 18,066 27,058 Operating Expenses Personal Services: Salaries & Wages 11,557 25,747 Payroll Taxes 1,587 3,420 Employee Benefits 494 988 Total Personal Services 13,638 30,155 Supplies: General Operating Supplies 865 1,667 Repair & Maint. Supplies 173 590 Total Supplies 1,038 2,257 Services & Other Charges: Professional Services 0 0 Administrative Services 753 1,506 Food & Beverages 473 2,072 Telephone Services 597 597 Advertising 3,768 3,768 Repair & Maintenance 110 566 Equipment Rent 0 0 Other Contractual Services 474 1,828 Property Taxes 2,250 4,500 Insurance 156 312 Other 388 941 Total Services & Other Charges 8,969 16,090 Utilities: Electric 485 963 Gas 915 1,818 Water /Sewer 283 283 Waste Disposal 96 287 Total Utilities 1,779 3,351 Total Expenses 25,424 51,853 Net Loss (7,358) {24,795) Office Rentals Statement of Revenue & Expenses For the Month and Period Ended February 29, 1992 Operating Revenues February Year to Date Office Rent 8,989 17,979 Cleaning Services 275 550 Other Revenue 10 40 Total Revenues 9,274 18,569 Operating Expenses Personal Services: Salaries & Wages 1,465 2,463 Payroll Taxes 284 465 Employee Benefits 68 137 Total Personal Services 1,817 3,065 Supplies: General Operating Supplies 37 138 Repair & Maint. Supplies 211 211 Total Supplies 248 349 Services & Other Charges: Property Taxes 3,083 6,166 Professional Services 16 16 Administrative Services 376 753 Telephone Services 0 0 Advertising 0 0 Printing 0 0 Repair & Maintenance 0 53 Equipment Rent 0 0 Other Contractual Services 105 1,276 Insurance 155 310 Other 0 0 Total Services & Other Charges 3,735 8,574 Utilities: Electric 436 873 Gas 282 282 Water /Sewer 288 288 Waste Disposal 121 456 Total Utilities N 1,127 1,899 Total Expenses 6,927 13,887 Net Income 2,347 4,682 a= aaaaaa -oaaaa n. = =sa CITY OF BROOKLYN CENTER, MINNESOTA EARLE BROWN HERITAGE CENTER FINANCIAL REPORTS FOR THE MONTHS AND PERIODS ENDED MARCH 31, 1992 & 1991 F� Department of Finance EARLE BROWN HERITAGE CENTER STATEMENT OF REVENUES AND. EXPENSES FOR THE MONTHS AND PERIODS ENDED MARCH 31, 1992 and 1991 MARCH MARCH YTD YTD 1992 1991 1992 1991 Operating Revenues Convention Center 32,115 20,657 85,084 48,879 Inn on the Farm 13,623 12,285 40,682 25,283 Commercial Office Rentals 9,265 6,637 27,834 19,910 Total Rcvcmrs 55,003 39,579 153,600 94,072 Operating Expenses Personal Services 43,256 28,321 120,320 59,493 Supplies 10,104 6,449 18,824 14,810 Services & Other Charges 42,763 25,683 97,491 71,338 Utilities 7,939 7,911 28,037 24,886 Total Expenses 104.062 68,364 264,672 170,527 * Net Loss 49,059) (28.785) (111,072) (76,455) • Convention Center Statement of Revenue & Expenses For the Month and Period Ended March 31, 1992 Operating Revenues March Year to Date Room Rentals 25,320 54,603 Food & Beverage Revenue 1,358 11,476 Equipment Rentals 1,105 6,710 Event Labor & Equipment Charges 4,300 9,658 Other 32 2,637 Total Revenues 32,115 85,084 Operating Expenses Personal Services: Salaries & Wages 20,663 56,687 Payroll Taxes 3,264 9,149 Employee Benefits 1,093 3,009 Total Personal Services 25,020 68,845 Suaolies: General Operating Supplies 4,217 7,649 Repair & Maint. Supplies 859 3,542 Total Supplies 5,076 11,191 Services & Other Charges: Professional Services 2,034 3,320 Administrative Services 3,389 10,167 Telephone Services 1,319 4,366 Advertising 9,893 18,110 Printing 0 0 Repair & Maintenance 571 2,181 Equipment Rent 1,810 5,430 Other Contractual Services 2,205 4,567 Insurance 585 1,755 Other 1,187 3,158 Total Services & Other Charges 22,993 53,054 Utilities: Electric 2,867 9,556 Gas 2,192 8,547 Water /Sewer 0 664 Waste Disposal 834 1,972 Total Utilities 5,893_ _20,739 Total Expenses 58,982 153,829 Net Loss (26,867) (68,745) I Inn on the Farm Statement of Revenue & Expenses For the Month and Period Ended March 31, 1992 Operating Revenues March Year to Date Room Rentals 11,887 35,204 Facility Rentals 470 1,695 Meal Sales 1,102 2,938 Equipment Rentals 170 323 Other (6) 522 Total Revenues 13,623 40,682 Operating Expenses Personal Services: Salaries & Wages 14,077 39,840 Payroll Taxes 1,670 5,091 Employee Benefits 543 1,532 Total Personal Services 16,290 46,463 Supplies: General Operating Supplies 2,507 4,174 Repair & Maint. Supplies 782 1,371 Total Supplies -- 3,289 N 5,545 Services & Other Charoes: Professional Services 0 0 Administrative Services 753 2,259 Food & Beverages 2,755 4,827 Telephone Services 644 1,241 Advertising 7,008 10,777 Repair & Maintenance 110 676 Equipment Rent 75 75 Other Contractual Services 910 2,738 Property Taxes 2,175 6,675 Insurance 156 468 Other 288 1,230 Total Services & Other Charges 14,874 30,966 Utilities: Electric 486 1,450 Gas 607 2,425 Water /Sewer 0 283 Waste Disposal 96 383 Total Utilities 1,189 4,541 Total Expenses 35,642 87,515 Net Loss (22,019) (46,833) ______ oo =aaa aaaaoa Office Rentals Statement of Revenue & Expenses For the Month and Period Ended March 31, 1992 Operating Revenues March Year to Date Office Rent 8,990 26,969 Cleaning Services 275 825 Other Revenue 0 40 Total Revenues 9,265 27,834 Operating Expenses Personal Services: Salaries & Wages 1,603 4,068 Payroll Taxes 264 729 Employee Benefits 79 215 Total Personal Services 1,946 5,012 Suoolies: General Operating Supplies 1,633 1,771 Repair & Maint. Supplies 106 317 Total Supplies 1,739 2,088 Services & Other Charges: Property Taxes 3,008 9,174 Professional Services 110 126 Administrative Services 376 1,130 Telephone Services 0 0 Advertising 0 0 Printing 0 0 Repair & Maintenance 0 53 Equipment Rent 0 0 Other Contractual Services 1,247 2,523 Insurance 155 465 Other 0 0 Total Services & Other Charges 4,896 13,471 Utilities: Electric 380 1,254 Gas 309 591 Water /Sewer 0 288 Waste Disposal 168 624 Total Utilities 857 2,757 Total Expenses 9,438 23,328 Net Income (Loss) (173) 4,506 P TNE s MARC) ETTE AR R PROFE SSIONAI REAL ESTATE SERVICES April 15, 1992 Ms. Judith Bergland Executive Director Earle Brown Heritage Center 6155 Earle Brown Drive Brooklyn Center, MN 55430 Dear Ms. Bergland: In response to your request we are pleased to present this proposal to provide marketing and operational consulting services to the Earl Brown Heritage Center. In the following proposal we describe the scope of analysis, the methodology we intend to use, communication of findings and our professional fees. OBJECTIVE We understand that business at the Heritage Center continues to improve as the Center establishes its market position among area conference and banquet facilities. Accordingly, this is an opportune time to examine the Center's marketing program and sales efforts to determine if it is pursuing a niche appropriate for the facilities and conditions that exist in the Twin Cities marketplace. The objective of our work will be to comment on and provide suggestions regarding such operational areas as sales efforts, staffing, pricing, market position, markets to pursue and other similar concerns that come to our attention during the analysis, in order to improve the financial success of the Center. METHODOLOGY In this proposal we describe two levels of analysis; the first level involves analysis of existing records, financial operating statements, function sheets, evaluation forms and other internal documents that will help us to understand the operation. The second level of analysis involves market research among existing Center users as well as non- users, to identify market perceptions and opinions. This information would provide independent support for the more subjective findings and conclusions that will be developed from the internal analysis. Hospitality Consulting Group 700 Northstar East • 608 2nd Ave. So. • Minneapolis, MN 55402 1 Valuation Phone: 612 - 333 -6515 • FAX: 612 -338 -2216 +CC. notwo*Inc. Ms. Bergland Page 3 Phase H: Market Research This phase of our study is an optional opportunity to analyze more critically the Center's market position within the area's competitive conference and banquet market. The scope of analysis in this phase would include interviews with both users and non -users of the Center and with competitive e . p conference facilities to identify the Center's strengths and weaknesses and also trends in the local industry. COMMUNICATION 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 results. We will then document our findings and recommendations in a brief written report. ESTIMATED TEVIE FRAME AND FEES Our professional fees are based on the time required to complete the assignment, billed at our standard hourly rates of $150 for Steve Sherf and $100 for Jim Klas who would perform a substantial amount of the research on this engagement. Based on the scope of work outlined above, our fees for both levels of research are estimated as follows: Internal Evaluation $5,000 Market Research - 3 000 $ 5,00 0 We anticipate 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 complete, depending on the amount of interviews to be conducted. Our fees will not exceed the amounts quoted above unless the scope of the engagement is substantially be on Y d the enclosed description. If at an oint ou choose t 0 Y o YP Y discontinue the study, you will be billed only for the fees incurred to that point. We will require a retainer in the amount of $3,000 to 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. Ms. Bergland Page 4 ACCEPTANCE PROCEDURES We appreciate the opportunity to present this proposal to you. We believe that we can provide valuable insights and suggestions and look forward to working with you on this assignment. If this proposal meets with your approval, please sign the enclosed acceptance 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 proposal or wish to discuss the matter further, please do not hesitate to call. Very truly yours, MARQUETTE PARTNERS Stephen W. Sherf Vice President MEMORANDUM TO: President Todd Paulson and EDA Commissioners FROM: Tom Bublitz, Assistant EDA Coordinator , `�! DATE: May 14, 1992 SUBJECT: EDA Owned Property at 5449 Emerson Avenue North In 1991, the EDA purchased the property at 5449 Emerson Avenue North and demolished a severely deteriorated single family house on the site. The lot is a buildable lot, but relatively small, with only forty (40) feet of frontage on Emerson Avenue North. Staff is working with Mr. Chuck Stevens on the sale of the EDA owned property at 6730 Perry Avenue North, and Mr. Stevens has also indicated an interest in purchasing the lot at 5449 Emerson Avenue North. Mr. Stevens has had some discussions with potential buyers for the both the Emerson and Perry lots. Mr. Stevens has indicated that he would like to secure buyers for the lots before he purchases the properties rather than buy the lots and build a spec house. The individual interested in a single family home on the Emerson lot is a disabled person who . uses a wheelchair. The small size of the lot on Emerson may be amenable to yard landscaping requiring minimal care, which is a factor for this individual. There appears to be a number of options for sale of the Emerson property, including sale to the adjoining property owners who have expressed an interest in the property. Staff would like to discuss the various options in more detail at the May 18, 1992 EDA meeting. MEMORANDUM TO- S Knapp - Y PP Paul Holmlund Jim Lindsay Ron Warren Arnie Mavis Jerry Olson Ron Boman Mark Parish Brad Hoffman Tom Bublitz Geralyn Barone FROM: Brad Hoffman, EDA Coordinato DATE: May 13, 1992 Following the staff meeting on Tuesday May 19, in the Council Chambers, I would like to meet with all of the department heads. Greta Wedell will be here to discuss with you and help you prepare materials for a general information brochure. You need to think about the audience you want to read and the message you want to give. Greta will organize the materials, but she needs to have information from you before she can even give us a quote.