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HomeMy WebLinkAbout1991 03-25 EDAP Regular Session EDA AGENDA CITY OF BROOKLYN CENTER MARCH 25, 1991 (following adjournment of City Council meeting) 1. Call to Order 2. Roll Call 3. Approval of Minutes: a. March 11, 1991 - Special Session 4. Resolutions: a. Authorizing Execution of Third Party Agreement for Year XVI Urban Hennepin County Community Development Block Program b. Establishing Offer of Just Compensation for the Purchase of Real Property Located at 5538 Colfax Avenue North in Brooklyn Center C. Amending the Economic Development Authority Budget for the Year 1991 to Provide for an Amended 1991 Budget for the Earle Brown Heritage Center Including Certain Capital Outlay Items d. Approving and Authorizing Execution of Contract with Omega Foods 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 SPECIAL SESSION MARCH 11, 1991 CITY HALL CALL TO ORDER The Brooklyn Center Economic Development Authority met in special session and was called to order by President Pro tem Celia Scott at 7:50 p.m. ROLL CALL President Pro tem Celia Scott, Commissioners Jerry Pedlar, Dave Rosene, and Philip Cohen. Also present were EDA Director Gerald Splinter, Director of Public Works Sy Knapp, Director of PIanning and Inspection Ron Warren, City Attorney Charlie LeFevere,- Assistant EDA Coordinator Tom Bublitz, and Council Secretary Ann Odden. President Todd Paulson was absent. APPROVAL OF MINUTES JANUARY 2, 1991 There was a motion by Commissioner Pedlar and seconded by Commissioner Rosene to approve the minutes of the January 2, 1991, EDA meeting. Vote: Three ayes. The motion passed. Commissioner Cohen abstained. FEBRUARY 12. 1991 There was a motion by Commissioner Cohen and seconded by Commissioner Rosene to approve the minutes of the February 12, 1991, EDA meeting. The motion passed unanimously. Y DISCUSSION ITEM CONSIDERATION OF ACQUISITION OF THE SINGLE - FAMILY PROPERTY LOCATED AT 5538 COLFAX AVENUE NORTH The City Manager briefly reviewed this item for the EDA. He noted staff recommended approval to proceed with the purchase of the property. 3/11/91 - 1 _ In response to President Pro tem Scott's question, the EDA Assistant Coordinator stated the house had been on the list to be acquired by the City in part because it was situated sideways on the property, as well as being a detriment to the surrounding area. He indicated the property was currently vacant, which would eliminate the expense of relocation. There was a motion by Commissioner Pedlar and seconded by Commissioner Cohen directing staff to proceed with all necessary actions required to purchase the property using Community Development Block Grant funds. The motion passed unanimously. ADJOURNMENT There was a motion by Commissioner Rosene and seconded by Commissioner Cohen to adjourn the meeting. The motion passed unanimously. The Brooklyn Center Economic Development Authority adjourned at 7:55 p.m. President Recorded and transcribed by: Y Ann J. Odden Northern Counties Secretarial Service 3/11/91 .2- CITY OF BROOKLYN CENTER Council Meeting Date 3/25191 Agenda Item Number REQUEST FOR COUNCIL CONSIDERATION ITEM DESCRIPTION: Resolution Authorizing Execution of Third -Party Agreement for Year XVI Urban Hennepin County Community Development Block Grant Program ik iE ltMIF IF 9FMiF iF iF iF iFl FMMMNMMNNMNiFMNNNit iF ltMNilMiiMMMMMMMNMMMMMNMMMNiF iiMNMNNMMiFMNNiiFMN1iMMNii IF i►MiF i/iiF i! DEPT. APPROVAL: ? Assistant EDA Coordinator Signature - title .. *. * *a•�r * �► * * *aw ** a re►** e* e** a« aaa ... * *www•ww *+taata,�'waw *� « *.� �,►, ��t� ..�+�.�t.r►..,►�►.«..,► *• *x * *s MANAGER'S REVIEW /RECOMMENDATION: No comments to supplement this report Comments below /attached . e**** s•********** w + r+ t* r* w* w* *******■ �r***«** rw* �r*** r* �terx* �r+ r . * « * ■. «..e. «�r..�r+� *x« « « « *�r: SUMMARY EXPLANATION: (supplemental sheets attached ) The Resolution authorizes the Economic Development Authority to execute a third -party agreement for the amended Year XVI Urban Hennepin County Community Development Block Grant Program. The City and Hennepin County are required to execute an agreement amending the Community Development Block Grant Program to reallocate $57,000 from Rehabilitation of Private Property to Scattered Site Redevelopment. The necessity of the third -party agreement between the City and the Economic Development Authority is that the Economic Development Authority is the body that actually provides the service for the project. • Cv Commissioner introduced the following resolution and moved its adoption: EDA RESOLUTION NO. RESOLUTION AUTHORIZING EXECUTION OF THIRD -PARTY AGREEMENT FOR YEAR XVI URBAN HENNEPIN COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM WHEREAS, the City Council of the City of Brooklyn Center has authorized an amendment to the Year-XVI Community Development Block Grant Program by reallocating $57,000 from the Rehabilitation of Private Property to Scattered Site Redevelopment. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority for the City of Brooklyn Center that its President and Director are hereby authorized to execute a third - party agreement between the City of Brooklyn Center and the Economic Development Authority for the City of Brooklyn Center for the purpose of supporting the activities identified in the amendment to the Year XVI Community Development ment Block Grant Program for the City of Brooklyn Center. 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. CITY OF BROOKLYN CENTER Council Meeting Date 3/2 Agenda Item Number `7 REQUEST FOR COUNCIL CONSIDERATION • w *r * * *ra *•rsr * *•rraear•+ parr •xrrr•rN•+rwNrrrNesrrer•rrrrrrare *x *wx+r *exrrrrarrra *rarr•rra• ITEM DESCRIPTION: Resolution Establishing Offer of Just Compensation for the Purchase of Real Property Located at 5538 Colfax Avenue North in Brooklyn Center iFlF ii iF IF iF 1F iFMiF iFNMiF IF iFMMNMNM�FMMMl1 IFMNNNMM3iMMMMNNMNMMMMM MMNMiF lFMM1FRiF NfiMMiFNIFMiF if MiF iFM3FNN! M #iFNlF iF M N DEPT. APPROVAL: Assistant EDA Coordinator Si na't re - Title *.««.* �r•**.* r«* wr«•* e* •ew.e « * *. *ea ■..r. *w�►r�t *.w+►.. +rs'� * ._ �r* *.err «xarac�rraar.�r MANAGER'S REVIEW /RECOMMENDATION: No comments to supplement this report Comments below /attached rrrrrrrrrr�r+rex. era+ �...* �r+ r*+►.* e�►« r..«* r.«...... �r�r**. a ,►..•.e * « «.w.�r. «.x�r,► * *�r.�r« *area *.�r *. SUMMARY EXPLANATION: (supplemental sheets attached yes ) • The resolution establishes an offer of just compensation for acquisition of the single - family property located at 5538 Colfax Avenue North. According to the Federal Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, an offer of just compensation must be established by an initial appraisal and review appraisal. The initial appraisal and review appraisal on the property both agree just compensation for the property at 5538 Colfax Avenue North should be $45,000. If the Economic Development Authority approves the resolution, the next step would be to make a written offer to the owner. If the owner accepts the offer, we would then negotiate a purchase agreement for the property. A requirement relative to the use of Federal funds on the project is an environmental review of the project. The environmental review is done to assure that the project proposed for single - family redevelopment does not present any problems with regard to excessive noise, problems with floodplains, air quality and a number of other environmental considerations. The environmental review information has been submitted to Hennepin County, but as yet the project has not been formally released under the environmental review requirements. No problems are anticipated, and this should be just a formality in the project. Additionally, since the home is 50 years old, it requires that the Minnesota State Historical Society review and release the property before the project can proceed. The required documentation has been sent to the Minnesota State Historical Society, but the society has not yet formally released the property. The resolution establishing just compensation for the property addresses these two items and would make the offer of just compensation contingent on complying with these two requirements. Copies of the initial appraisal report and the review appraisal are included with this memorandum. l II qh Commissioner introduced the following resolution and moved its adoption: EDA RESOLUTION NO. RESOLUTION ESTABLISHING OFFER OF JUST COMPENSATION FOR THE PURCHASE OF REAL PROPERTY LOCATED AT 5538 COLFAX AVENUE NORTH IN BROOKLYN CENTER WHEREAS, the Brooklyn Center Economic Development Authority has received the following items relative to the appraisal of the real property located at 5538 Colfax Avenue North: a. Appraisal report dated February 24, 1991 b. Review appraisal dated February 25, 1991; and WHEREAS, the fair market value of the real property located at 5538 Colfax Avenue North, as established by the appraisal is $45,000. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority for the City of Brooklyn Center that the appraisal documents described in paragraph 1 of this resolution are hereby accepted, and the fair market value of $45,000, established by the appraisal, is hereby accepted and established as just compensation for the real property located at 5538 Colfax Avenue North. BE IT FURTHER RESOLVED that the Economic Development Authority staff is authorized to make a written offer of $45,000 to the owner of the real property at 5538 Colfax Avenue North for the acquisition of the property, contingent on state historical society release of the property and release of the property from Department of Housing and Urban Development (HUD) environmental conditions. 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. CITY 6301 SHINGLE CREEK PARKWAY OF BROOKLYN CENTER, MINNESOTA 55430 ROOKLYN TELEPHONE: 569 -3300 C ENTER FAX: 561 -0717 EMERGENCY - POLICE - FIRE 911 MEMORANDUM TO: Brad Hoffman EDA Coordinator FROM: Mark Parish (� City Assessor DATE: February 27, 1991 RE: Appraisal Review 5538 Colfax Avenue North Having reviewed the appraisal report of this property completed by J. Scott Renne, I am in agreement with his findings and conclusion of value of the property. My review included Mr. Renne's analysis and a verification of the comparable sales upon which his analysis is based. While a number of minor discrepancies were found, they were of a typographical nature and did not alter the final conclusion. Therefore, I agree with his analysis and findings and believe the market value of the subject property as of February 15, 1991, to be Forty -Five Thousand Dollars ($45,000.00) � �� i�uiu�caan � CITY OF BROOKLYN CENTER Council Meeting Date 3125/91 Agenda Item Number L- 1 C i REQUEST FOR COUNCIL CONSIDERATION ITEM DESCRIPTION: Resolution Amending the Economic Development Authority Budget for the Year 1991 to Provide for an Amended 1991 Budget for the Earle Brown Heritage Center Including Certain Capital Outlay Items DEPT. APPROVAL: Assistant EDA Coordinator Signature - title + rraa�rr* r* rrr�r* ws• s+ rww****** �rrw�t *�r�rr * *+t�trw�r�rrara *�r�r* ** �r * ' arai�r • �`�h'i�!� *��r�r *�t *rs *rw+rr� MANAGER'S REVIEW /RECOMMENDATION: No comments to supplement this report Comments below /attached �+ c. x�* s�***.** �r�r**«+ �. x«*■ r. �rx �rs�r��r..«* w*, r�r....*, rx. �r.* r« �r, r. *.�r�,r «,►.x�r * * * * * *�r * * «..,► SUMMARY EXPLANATION: (supplemental sheets attached Yes ) This resolution provides for the adoption of a revised 1991 budget for the Earle Brown Heritage Center. The resolution also allows certain capital outlay items for the Earle Brown Heritage Center to be funded by a loan to the Economic Development Authority from the City's Investment Trust Fund. • y� Commissioner introduced the following resolution and moved its adoption: EDA RESOLUTION NO. RESOLUTION AMENDING THE ECONOMIC DEVELOPMENT AUTHORITY BUDGET FOR THE YEAR 1991 TO PROVIDE FOR AN AMENDED 1991 BUDGET FOR THE EARLE BROWN HERITAGE CENTER INCLUDING CERTAIN CAPITAL OUTLAY ITEMS WHEREAS, Resolution 90 -16 adopted by the Brooklyn Center Economic Development Authority approved the Brooklyn Center Economic Development Authority budget for the year 1991; and WHEREAS, the budget for the Earle Brown Heritage Center is art of the approved 1991 Brooklyn Center Economic Development PP Y P Authority budget; and WHEREAS, staff has proposed an amended 1991 budget for the Earle Brown Heritage Center which is attached to this resolution; and WHEREAS, Resolution 89 -253 adopted by the Brooklyn Center City Council authorized the City's Finance Director to issue a master note for transfer of funds from the Investment Trust Fund to the Economic Development Authority; and WHEREAS, Council Resolution 89 -253 authorizes the Brooklyn Center Economic Development Authority to borrow funds from the City's Investment Trust Fund for the purchase of capital outlay items for the Earle Brown Heritage Center. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority for the City of Brooklyn Center as follows: 1. The 1991 Economic Development Authority Budget is hereby amended by adopting the revised 1991 Earle Brown Heritage Center budget prepared by staff and attached to this resolution. 2. The capital outlay items for the Earle Brown Heritage Center proposed by staff and attached to this resolution are hereby approved and funding for the purchase of these items is to be made available pursuant to Brooklyn Center Council Resolution 89 -253. Date President Resolution Number 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. ADMINISTRATION 4550 CAPITAL OUTLAY 1. Grand Piano (1) $ 10,000 2. Wide Angle Lens Slide Projector (1) 132 3. Desk (1) 800 4. Chair (1) 400 5. Side Chairs (2) 600 6. Computer Terminal (2) 3,300 7. Phone (2) 300 Administration Subtotal $ 15,532 MAINTENANCE 1. Rubber Trash Receptacles (8) $ 784 2. Platform Truck (4- Wheel) (1) 494 3. Wet /Dry Vac 1,290 4. Dry Vac a. Hoover C1125 With Dirt Cup* (1) 300 b. Hoover Conquest 28* (1) 1,248 Truck In - $1,500 5. Variable Speed Fan /Surge Protector (1) 7,000 6. Desk 600 7. Computer Remote Control 2,500 8. Iron Removal System 7,500 Maintenance Subtotal $ 21,716 INN 1. Food Processor (1) $ 200 2. Dryer (Electric) (1) 500 3. Coat Racks (Wooden) (2) 400 4. Desk /Lamp /Chair 600 5. Reading Lamps ($175 Each) (11) 1,925 Inn Subtotal $ 3,625 CAPITAL OUTLAY TOTAL $ 40,873 I MEMORANDUM TO: Gerald G. Splinter FROM: Brad Hoffman IN N�-J DATE: March 21, 1991 SUBJECT: Heritage Center Update and 1991 Budget Revision Monday evening, I would like to spend some time with the EDA updating them on the current status of the Heritage Center and reviewing a proposed, revised 1991 budget for the complex. At this point in the transition from EBF Management to direct management by the EDA, there are still issues to be resolved. However, the EDA is now in a position to identify and quantify problems and make informed decisions to resolve the same. It has always been the intent to have the Heritage Center generate sufficient revenues to offset operating expenses. It was also anticipated that it would take three or four years before that would occur. In the 1991 budget submission of EBF Management, it was estimated that revenues for 1991 would be $674,000. In the revised budget, revenues are estimated at $642,722. There are five basic revenue components at the Heritage Center which include: office rent, bed and breakfast income, convention rental, banquet fees and miscellaneous income. Of the five components, the projections from the EDA and EBF differ significantly only with two projections - office rent and bed and breakfast income. EBF projected office rents at $124,000 for 1991. Included in their projection was $39,329.92 from D. C. Bell even though a significant portion of the revenue from that project was pledged to pay off the tenant improvements. In the current budget, all of the revenues are pledged to offsetting operation costs by ignoring the loan from the City. Also included were revenues from the Shingle Creek Business Center ($5,100) and Bruce Neilson Associates ($2,408). Shingle Creek Business Center had not paid rent since August 1990 and Bruce Neilson never took possession of his office and has never paid rent. Neither are located on the site today. Also, Sylvan Learning Center was continually 30 days or more late with their rent. Their last rent payment was in November 1990. The EDA has since obtained an unlawful detainer against them, and they are no longer located on the farm. They currently owe the EDA approximately $7,000 which the EDA will pursue. The EDA revenue projection is $65,448. The EDA projection is based upon executed leases and the amount we believe we will collect in back rent from Sylvan. There are some opportunities to increase revenue beyond this point. Currently, we are engaged in discussions with the Farm Journal about expanding their space. Also, the Tourism Bureau is looking for additional space. In 1992 and thereafter, the D. C. Bell lease will generate sufficient incomes to contribute to the Gerald G. Splinter Page 2 March 21, 1991 Heritage Center revenues as well as amortize the loan on the D Barn improvements. Revenues from the Inn were estimated conservatively at $110,000 by EBF. However, occupancy has been steadily rising. The maximum gross at the Inn, based upon current rates, is $291,500. With an overall occupancy of 45 percent, which can be attained this year, the Inn should realize revenues of $131,274 this year. Currently, we are booking heavily on weekends and building slowly with midweek business. The following is a detail of the differences between the two budgets. I feel that the EDA budget is more reflective of what should be expected to operate the farm. It should be noted that because of a lack of history, neither EBF nor the EDA can make solid projections in many areas. Unfortunately, it won't be until the 1993 budget before we have a good solid year's experience upon which we can establish a budget. EBF EDA + or ( - Salaries $424,000 $381,598 ($42,402) Fringe -0- 88,100 88,100 Office Supplies 4,000 3,500 (500) Operating Supplies 12,000 19,000 7,000 Postage 8,000 4,500 ( 3,500) Telephone 16,000 18,000 2,000 Delivery 500 400 ( 100) Freight 1,400 -0- ( 1,400) Employment Advertising -0- 300 300 Printing 15,000 9,000 ( 6,000) Insurance -0- 12,000 12,000 Equipment Repair 8,000 16,000 8,000 Contractual Services 20,700 56,000 35,300 Miscellaneous /Special 500 2,500 2,000 Dues & Subscriptions 3,000 2,373 ( 627) Promotion 60,000 102,000 42,000 Credit Card -0- 1,000 1,000 Property Tax 25,000 41,200 16,200 Cleaning Supplies 12,000 3,800 ( 8,200) Clothing 500 800 300 Safety Supplies 500 400 ( 100) Chemical Supplies -0- 500 500 Laundry 3,000 2,000 ( 1,000) Building Repair 5,500 2,000 ( 3,500) Land Scaping 1,000 1,000 -0- Small Tools -0- 500 500 Food 8,000 9,000 1,000 Gerald G. Splinter Page 3 March 21, 1991 EBF EDA + or ( -) Electricity 30,000 40,000 10,000 Gas 25,000 30,000 5,000 Water 3,000 2,800 ( 200) Sewer -0- 1,000 1,000 Solid Waste 7,000 9,000 2,000 Personal Auto -0- 100 100 $693,600 $860,371 $166,711* You will note significant differences between the two budgets. In the initial budget, benefit costs were not included. Insurance and property taxes were ignored or grossly underestimated although this information was provided. Utility rates, I believe, will come in some place between our two positions. Monday evening, I want to spend some time on promotion of the Center with the EDA. Merrill Busch will be at Monday's meeting to review 'the promotional budget in detail with the EDA. The major difference between the EBF budget and the one now being proposed is the use of color in our promotional pieces. The original budget proposed the predominant use of black and white pieces. I am of the opinion that the Heritage Center would be sending the wrong message at the wrong time in a very competitive market. Up to this time, the Center has been portrayed as a facility that is unique and one that pays attention to detail and quality. Color pieces will tend to reflect that concern better than black and white. Also missing from the original promotional budget are monies for travel to promotional events such as the Meeting Planners Conference. Conferences such as these put our product in front of large numbers of potential users and has led to many meetings held at the Center. Also, there is $5,000 included for several mass mailings planned for this year. Finally, while there are differences in most categories that I can discuss with the EDA, the difference in contractual services needs to be addressed. The original budget was for $20,700. Attached, you will find a listing and cost of all service contracts entered into by EBF. The total of the group simply amounts to $56,000. Obviously, we will be shopping these but for budget purposes, we need to assume our cost at the $56,000 level. In no way will it ever approach the $20,700 figure cited by EBF. Obviously, I am projecting an estimated loss of approximately $237,649 for 1991. Attached, you will find a revenue and expense Gerald G. Splinter Page 4 March 21, 1991 statement for February. In order for the Center to generate sufficient income to offset expenses, a number of things will have to change. First, the rates currently charged at the Inn should be increased. A $10 per night increase would add about $18,000 in revenues. Such an increase would find our rooms still very competitive within the market. At the convention center, comparable space is rented at 20 cents or more per foot. Currently, we are at 14.8 cents per foot. A 20 percent increase would put us at 17 3/4 cents per foot and still be very competitive. Second, we will be watching expenditures very closely to reduce our costs. Some costs (utilities) were to be charged back to or paid by tenants but were never followed up on. It is our intent to see that those fees are charged appropriately and collected. Third in the proposed budget, I have asked for two part -time sales people. One of the major problems we currently have is a lack of .prompt follow up on sales inquiries. The Center needs to aggressively market that facility. Aggressive marketing would include not only follow -up phone calls, but calls on area businesses, calls to past users, and calls on appropriate conference groups that have not yet used the facility. It may also require us to consider sponsoring activities to generate revenue, which could include concerts, dances, entertainment productions or others. I believe it is important that we keep our options open to activities that will financially support the facility. Attached is a listing of capital outlay items needed at the Heritage Center. Neither budget contained capital outlay items. It is our proposal that the items be acquired as part of the tax increment district. As in the past, the City would make a loan for the approved amount to the EDA. Monday evening, I will be available to discuss the need for these items as well as the rest of the budget. Attachments MEMO DATE: March c 5 1991 TO: Brad Hoffman FROM: Bruce Ballanger SUBJECT: Signed Contracts Following is a description of the signed contracts and the contract amount: NAME OF COMPANY LOCATION CONTRACT AMOUNT AIR Season - summer $2,000.00 Season - winter 1,925.00 G & K Services monthly 178.05 Plunketts , Inn 42.00 Office 36.00 Convention Center 54.00 Lagerquist 360.00 US West 64.00 Waste Management Inn 97.13 Office 162.09 Convention Center 382.45 Recycling 110.00 Cardboard 36.30 TOTAL $5,447.02 EARLE BROWN HERITAGE CENTER STATEMENT OF REVENUES AND EXPENSES FOR THE MONTH ENDED FEBRUARY 28, 1991 -------------- - - - - -- FEBRUARY -------------- - - - - -- ----------- - - - - -- YEAR TO DATE --------------- - - -- Convention Inn on Office Convention Inn on Office Center the Farm Rentals Totals Center the Farm Rentals Totals - - - - -- ----- - - - - -- ----- - - - - -- ----- - - - - -- ----- - - - - -- ----- - - - - -- ----- - - - - -- ----- - - - - -- Operating Revenues --------------- - -- Room Rentals 14,175 7,516 21,691 18,661 12,246 30,907 Office Rent 6,637 6,637 13,274 13,274 Equipment Rentals 3,767 60 3,827 4,479 85 4,564 Set -Up Charges 2,055 2,055 2,055 2,055 Other 2,947 121 3,068 3,028 668 3,696 - -- - - - - -- -- - - - - -- -- - - - - -- -- - - - - -- -- - - - - -- -- - - - - -- -- - - - - -- -- - - - - -- Total Revenues 22,944 7,697 6,637 37,278 28,223 12,999 13,274 54,496 -- - - - - -- -- - - - - -- -- - - - - -- -- - - - - -- -- - - - - -- -- - - - - -- -- - - - - -- -- - - - - -- Operating Expenses --------------- - -- Personal Services 6,680 6,680 10,102 10,102 Supplies 1,724 851 424 2,999 4,088 2,192 567 6,847 Services & Other Charges 4,079 2,729 36 6,844 7,311 6,580 50 13,941 Utilities 5,562 533 1,089 7,184 13,530 1,183 2,262 16,975 Capital Outlay 812 72 884 1,040 527 1,567 Allocated Admin. Expenses 8,606 5,164 3,442 17,212 18,604 11,162 7,441 37,207 Allocated Maint. Expenses 4,557 2,734 1,823 9,114 8,542 5,125 3,417 17,084 -- - - ---- -- - - - - -- -- - - - - -- -- - -- - -- -- - - - - -- Total Expenses 25,340 18,691 6,886 50,917 53,115 36,344 14,264 103,723 Net Loss (2,396) (10,994) (249) (13,639) (24,892) (23,345) (990) (49,227) -- - - -- -- --- - - --- - --- - --- -------- ---- ---- -- ---- -- - ------- - -- - -- -- - --- -- i r EARLE BROWN HERITAGE CENTER REVENUE Office Rent $ 65,448 Bed and Breakfast 131,274 Convention Rental 330,000 Banquet Fees 66,000 Miscellaneous 50,000 REVENUE TOTAL $642,722 EARLE BROWN HERITAGE CENTER ADMINISTRATION 4100 Salaries (Full -Time) (4) $ 99,687 4130 Salaries (Part -Time) (2) 22,028 4142 PERA 5,453 4144 Social Security 9,311 Hospitalization, 4147; Life Insurance, 4151; and Dental, 4152 12,480 4154 Workers Compensation 2,575 PERSONAL SERVICES SUBTOTAL X151,534 4210 Office Supplies $ 3,000 4220 Operating Supplies 4,500 SUPPLIES, REPAIRS, MAINTENANCE SUBTOTAL $ 7,500 4321 Postage $ 4,500 4322 Telephone 18,000 4324 Delivery Service 400 COMMUNICATIONS SUBTOTAL $ 22,900 4341 Employment Advertizing 300 EMPLOYMENT ADVERTIZING SUBTOTAL $ 300 4350 Printing $ 9,000 PRINTING SUBTOTAL General Liability, 4361; Property Insurance, 4362; Boiler /Machinery, 4363; and Bond, 4366 $ 12,000 LIABILITY, INSURANCE, MACHINERY, BOND SUBTOTAL � 12,000 4382 Equipment Repair $ 4,000 EQUIPMENT REPAIR SUBTOTAL 4 000 ADMINISTRATION (CONTINUED) 4390 Rental $ 15,000 4398 Protection Service 5,000 RENTAL, PROTECTION SERVICE SUBTOTAL $ 20,000 4410 Miscellaneous /Special Events $ 2,500 4411 Promotional 102,000 4413 Dues and Subscriptions 2,000 MISCELLANEOUS SUBTOTAL $106,500 4805 Credit Card Fees $ 1,000 Property Tax 41,200 CREDIT CARD FEES, PROPERTY TAX SUBTOTAL $ 42,200 ADMINISTRATION TOTAL $375,934 MAINTENANCE 4100 Salaries (Full -Time) (2) $ 57,761 4130 Salaries (Part -Time) 86,659 4142 PERA 6,470 4144 Social Security 11,048 Hospitalization, 4147; Life Insurance, 4151; and Dental, 4152 6,240 4154 Workers Compensation 14,095 PERSONAL SERVICES SUBTOTAL X182,273 4220 Operating Supplies $ 12,000 4221 Cleaning Supplies 3,500 4224 Clothing 800 4226 Chemical Supplies 500 4227 Safety Supplies 400 4233 Building Repair 2,000 4235 Grounds /Landscape Maintenance 1,000 4240 Small Tools 500 SUPPLIES, REPAIRS, MAINTENANCE SUBTOTAL 20,700 4334 Use of Personal Auto $ 100 TRANSPORTATION SUBTOTAL $ 100 4371 Electric Service $ 40,000 4372 Gas Service 30,000 4374 Water Service 2,800 4375 Sewer Service 1,000 4376 Solid Waste 9,000 UTILITIES SUBTOTAL 82 800 j 4382 Equipment Repair $ 12,000 EQUIPMENT REPAIR SUBTOTAL $ 12,000 4420 Contractual Services $ 56,000 CONTRACTUAL SERVICES SUBTOTAL $ 56,000 MAINTENANCE $353,873 INN 4100 Salaries (Full -Time) (1) $ 26,820 4130 Salaries (Part -Time) 88,643 4142 PERA 5,173 4144 Social Security 8,833 Hospitalization, 4147; Life Insurance, 4151; and Dental, 4152 3,120 4154 Workers Compensation 3,302 PERSONAL SERVICES SUBTOTAL $135,891 4210 Office Supplies $ 500 4220 Operating Supplies 2,500 4223 Cleaning Supplies 300 4241 Laundry 2,000 SUPPLIES, REPAIRS, MAINTENANCE SUBTOTAL $ 5,300 4413 Dues /Subscriptions $ 373 MISCELLANEOUS SUBTOTAL $ 373 4821 Food Expenditures $ 9,000 FOOD EXPENDITURES SUBTOTAL $ 9 INN TOTAL $150,564 HERITAGE CENTER TOTAL $880,371 Heritage Center Manager I I I Convention Services administrative Staff Inn Supervisor (1) FT Sales Receptionist (1) FT _ Inn Keeper (1) FT (1) FT (2) PT Maintenance Set Up Janitorial Asst. Inn Keeper Hostess (6) PT (1) FT (2) PT (1) PT _(2) PT Cook (2) PT Lead Set Un (3) PT Secretary (1) FT Lead Housekeeper (1) PT Set Up Crew (6 -15) PT Housekeeper (5) PT (EBHCPRSI) ECONOMIC DEVELOPMENT AUTHORITY OF BROOKLYN CENTER EARLE BROWN HERITAGE CENTER 1991 PROPOSED BUDGET ADMINISTRATION PERSONNEL HEALTH PERA FICA WORKERS LIFE & POSITION COMPLIMENT SALARY 4.48% 7.65% COMP DENTAL - - - - -- ---- - - - - -- - - - - -- - - - -- - - - -- - - - -- - - - - -- Manager 1 $36,996 $1,657 $2,830 $1,058 $3,120 Sales Person 1 26,172 1,173 2,002 749 3,120 Secretary 1 18,479 828 1,414 70 3,120 Receptionist 1 18,040 808 1,380 69 3,120 -- - - - - -- - - - - -- - - - - -- - - - - -- - - - - - -- FULL TIME 99,687 4,466 7,626 1,945 12,480 PART TIME Sales Person 2 22,028 987 1,685 630 -- - - - - -- - - - - -- - - - - -- - - - - -- - - - - - -- TOTAL $121,715 $5,453 $9,311 $2,575 $12,480 -- - - - - -- - - - - -- - - - - -- - - - - -- - - - - - -- (EBHCPRS2) ECONOMIC DEVELOPMENT AUTHORITY OF BROOKLYN CENTER EARLE BROWN HERITAGE CENTER 1991 PROPOSED BUDGET MAINTENANCE PERSONNEL HEALTH PERA FICA WORKERS LIFE & POSITION COMPLIMENT SALARY 4.480 7.65% COMP DENTAL -- - - - - -- ---- - - - - -- - - - - -- - - - -- - - - -- - - - -- - - - - -- Supervisor 1 $33,498 $1,501 $2,563 $3,269 $3,120 Custodian 1 24,263 1,087 1,856 2,368 3,120 -- - - - - -- - - - - -- - - - - -- - - - - -- - - - - - -- FULL TIME 57,761 2,588 4,419 5,637 6,240 PART TIME Maintenance 2 16,745 750 1,281 1,634 Lead setup 3 19,838 889 1,518 1,936 Setup crew 6 34,896 1,563 2,670 3,406 Janitorial 2 15,180 680 1,161 1,482 -- - - - - -- - - - - -- - - - - -- - - - - -- 86,659 3,882 6,629 8,458 -- - - - - -- - - - - -- ------ ------ - - - - - -- TOTAL $144,420 $6,470 $11,048 $14,095 $6,240 -- - - - - -- - - - - -- - - - - -- - - - - -- - - - - - -- -------- - - - - -- - - - - -- - - - - -- - - - - - -- (EBHCPRS3) ECONOMIC DEVELOPMENT AUTHORITY OF BROOKLYN CENTER EARLE BROWN HERITAGE CENTER 1991 PROPOSED BUDGET INN ON THE FARM PERSONNEL HEALTH PERA FICA WORKERS LIFE & POSITION COMPLIMENT SALARY 4.48% 7.65% COMP DENTAL -- - - - - -- ---- - - - - -- - - - - -- - - - -- - - - -- - - - -- - - - - -- Inn Keeper 1 $26,820 $1,202, $2,052 $767 $3,120 -- - - - - -- - - - - -- - - - - -- - - - - -- - - - - - -- FULL TIME 26,820 1,202 2,052 767 3,120 PART TIME Asst Inn Keeper 1 13,824 619 1,058 395 Hostess 6 25,179 1,128 1,926 720 Lead House Keep 1 13,824 619 1,058 395 House Keepers 5 15,180 680 1,161 434 Laundry 1 7,939 356 607 227 Cooks 2 12,697 569 971 363 -- - - - - -- - - - - -- - - - - -- - - - - -- 88,643 3,971 6,781 2,535 -- - - - - -- - - - - -- - - - - - -- - - - - -- - - - - - -- TOTAL $115,463 $5,173 $8,833 $3,302 $3,120 -- - - - - -- - - - - -- - - - - -- - - - - -- - - - - - -- -------- - - - - -- - - - - -- - - - - -- - - - - - -- r ' FABLE BROWN HERITAGE CENTER PRELIMINARY I PROPOSED MARKETING SCHEDULE & BUDGET (Printing and postage are not included in this budget) (Fifth Revision -- 1/23/91 January 1, 1991 - December 30, 1991 JAN. FEB. MAR. APR. MAY JUNE JULY AUG. SEPT. OCT. NOV. DEC. SUBTOTAL 1) Public Relations: 500 500 500 500 500 500 400 400 400 400 400 400 5,400 (Press, news releases, features, TV & editorial contacts, etc.) 2) Advertising /Mktg. Materials a) Design, copy, creative 1,500 2,800 1,950 1,000 900 - - - - -- 1,000 - - - - -- 750 750 750 - - - - -- 11,400 b) Production - - - - -- 3,000 2,200 1,000 1,000 1,000 - - - - -- 900 800 600 - - - - -- - - - - -- 10,500 c) Meeting Planner - - - - -- - - - - -- - - - - -- - - - --- - - - - -- - - - --- - - - - -- - - - - -- - - - --- - - - - -- - - - - -- - - - - -- d) Reprinting of materials - - - - -- - - - - -- - - - - -- - - - - -- -- - - -- - - - - -- - = - - -- - - - - -- - -- - -- - - - - -- -- - - -- - - - - -- 3) EBHC Advertising /Media 2,215 855 11,508 640 200 1,908 7,530 7,635 5,863 215 840 2,808 42,217 4) Special Editorial Sections, , Special publications - - - - -- - - - - -- - - - - -- - - - - -- - - - - -- - - -- -- - -- -- -- - - -- - - - - -- - - - - -- - - - - -- - - - - -- 5) Direct mail: special markets 500 500 1,500 - - - - -- - - - - -- - - - - -- - - - - -- - - - - -- - - - - -- - - - - -- - - - - -- - - - - -- 2,500 6) Inn marketing materials - - - - -- - - - - -- - - - - -- - - - - -- - - - - -- - - - - -- - -- - -- - - -- -- - -- - -- - - -- -- - - -- -- - -- - -- 7) Inn advertising 1,160 - - - - -- 260 1,000 460 - - - -- 65 1,000 365 100 165 1,200 5,775 8) AV /Video presentation 2,600 - - - - -- - - - - -- - - - - -- - - - - -- - - - - -- - - - - -- - - - - -- 600 - - - - -- --- - -- - - - - -- 3,200 (production) 9) Marketing Newsletters - - - -- - - - - -- 1,800 - - - - -- - - - - -- - - - - -- 1,800 - - - -- - - - - -- 1,800 - - - - -- - - - - -- 5,400 10) Events a) Charitable Ball -- - - -- - - -- -- - - - - -- - - -- -- - - - - -- - - - - -- - - - - -- - - - - -- - - - - -- - - -- -- - - - - -- - - - - -- N/A b) Earle Brown Days - - - - -- -- - - -- - - - - -- ------ - - - - -- - - - - -- - - - - -- - - - - -- - - - - -- - - - - -- 11) Planning, program coordination, 500 500 500 500 500 500 '500 500 500 500 500 500 6,000 scheduling, etc. 8,975 8,155 20,218 4,640 3,560 3,908 11,295 10,435 9,278 4,365 2,655 4,908 92,392 GRAND TOTAL: $92,392 L EARLE; BROWN HERITAGE CENTER /ADVERTISING & MEDIA SCHEDULE /1991 (PROPOSED) ADVERTISING JAN. FEB. MAR. APRIL MAY JUNE JULY AUG. SEPT. OCT. NOV. DEC. TOTAL CITYBUSINESS - -- - -- 2/c - -- - -- 2/c - -- - -- 2/c - -- - -- 2/c 7,632 Conv. & Mtg. 1/2 pg 1/2 pg 1/2 pg 1/2 pg 1,908 1,908 1,908 1,908 (Roster) NPI DIRECTORY - -- - -- --- - -- - -- - -- _ -- _ -- - -- - -- - -- B&W 300 (Annual) 1/2 pg 300 MPLS. MEETING - -- - -- 4/c - -- - -- - -- - -- - -- - -- - -- - -- - -- 4,065 PLANNERS GUIDE Full pg. 4,065 MSAE - -- - -- - -- - -- - -- - -- - -- - -- - -- - -- - -- BB& 600 DIRECTORY (Annual) 600 EXEC. BRIEFS 1/2 pg - 1/2 pg 1/2 pg - -- - -- - -- - -- 1/2 pg 1/2 pg 1/2 pg - -- - -- 600 (MSAE) 100 100 100 100 100 100 MPI NEWSLE hR 1/2 pg 1/2 pg 1/2 pg - -- - -- - -- - -- 1/2 pg 1/2 pg 1/2 pg - -- - -- 690 115 115 115 115 115 115 MPLS /ST. PAUL Color - -- - -- - -- --- - -- - -- - -- - -- - -- - -- - -- 2,000 WEDDING GUIDE 112 pg 2,000 CORP. REP. - -- - -- 4/c - -- - -- - -- - -- 4/c - -- - -- - -- - -- 5,160 Conv. & Mtgs. 1/2 pg 1/2 pg 2,580 2,580 STAR TRIB - -- 2cx4 2cx4 2cx4 - -- - -- - -- 2cx4 2cx4 - -- 2cx4 - -- 3,840 Marketplace 640 640 640 640 640 640 i EARLE BROWN HERITAGE CENTER / ADVLRTISING & MEDIA SCHEDULE /1991 (PROPOSED) ADVERTISING JAN. F'EB. MAR. APRIL MAY JUNE JULY AUG. SEPT. OCT. NOV. DEC. TOTAL CONV. & - -- - -- - -- - -- - -- - -- - -- - -- 1,000 - -- - -- - -- 1,000 VISITORS GUIDE SUCCESSFUL - -- - -- _ -- - -_ ___ ___ ___ - -- 4/c - -- - -- - -- 7,330 MEETINGS 1/2 pg (MINN.) 7,330 MIDWEST - -- - -- 4/c - -- - -- - -- - -- - -- 4/c - -- - -- - -- 3,800 M1=INGS Full Fall l 1,900 1,900 I BUSINESS --- - -- B&W - -- B&W - -- B&W - -- B&W --- B&W --- 1,000 MEDIA 1/4 pg 1!4 pg 114 pg. 1/4 pg 1/4 pg. 200 200 200 200 200 MEETING' --- 4/c - -- - -- - -- - -- 4,200 CONVENTIONS 1/2 pg (MINN) 4,200 2,215 855 11,508 640 200 1,908 7,530 7,635 5,863 215 840 2,808 $42,217 I i I !t� o THE YARM /MEDIA SCHEDULE / 1991 ( PROPOSED) 1111 PUBLICATION JAN. FEB. MAR. APRIL MAY JUNE JULY AUG. SEPT. OCT. NOV. DEC. TOTAL ENI'ERIAINMEPIT 1 /12 - -- 1/12 - -- 1/12 - -- - -- - -- - -- - -- - -- - -- 285 DIRECTORY 95 95 95 MINNESOTA 65 - -- 65 - -- 65 - -- 65 - -- 65 - -- 65 - -- 390 CALLS (B&B) SUNLIAY TRIB. - -- - -- - -- 1/12 pg - -- - -- - -- 1/12 pg - -- - -- - -- - -- 800 (FIRST SUNL]AY 400 400 SUN. PIONEER - -- - -- - -- 4/21 - -- - -- - -- 8/25 - -- - -- - -- - -- 600 PRESS (B&B) 300 300 MN MONTHLY 100 - -- 100 100 100 - -- - -- 100 100 100 100 - -- 800 (B&B) HISTORIC B&B - -- - -- - -- - -- - -- - -- - -- - -- - -- - -- - -- 200 200 DIRECTORY (STATE) MPLS /ST. PAUL - -- - -- - -- 200 200 - -- - -- 200 200 - -- - -- - -- 800 (B&B) CONNECTION 900 - -- - -- -- - -- --- _ -- - -- - -- - -- 900 RESERVE - -- - -- - -- - -- - -- 1,000 1,000 - -- - -- - -- - -- - -- 1,160 - -- 260 1,000 460 - -- 65 1,000 365 100 165 1,200 $5,775 ADMINISTRATION 4550 CAPITAL OUTLAY 1. Grand Piano (1) $ 10,000 2. Wide Angle Lens Slide Projector (1) 132 3. Desk (1) 800 4. Chair (1) 400 5. Side Chairs 2 ( ) 600 6. Computer Terminal (2 ) 3,300 7. Phone (2) 300 Administration Subtotal $ 15,532 MAINTENANCE 1. Rubber Trash Receptacles (8) $ 784 2. Platform Truck (4- Wheel) (1) 494 3. Wet /Dry Vac 1,290 4. Dry Vac a. Hoover C1125 With Dirt Cup* (1) 300 b. Hoover Conquest 28* (1) 1,248 Truck In - $1,500 5. Variable Speed Fan /Surge Protector (1) 7,000 6. Desk 600 7. Computer Remote Control 2,500 8. Iron Removal System 7,500 Maintenance Subtotal $ 21,716 INN 1. Food Processor (1) $ 200 2. Dryer (Electric) (1) 500 3. Coat Racks (Wooden) (2) 400 4. Desk /Lamp /Chair 600 5. Reading Lamps ($175 Each) (11) 1,925 Inn Subtotal $ 3,625 CAPITAL OUTLAY TOTAL $ 40,873 �d MEMORANDUM TO: Gerald G. Splinter, City Manager FROM: Brad Hoffman, EDA Coordinator DATE: March 21, 1991 SUBJECT: Atrium (Omega) Contract With the financing of the farm, it was necessary for the EDA to change certain aspects of the Atrium contract. Principally, the IRS requires us to put a cap on the revenue we can receive from them. The cap is structured in such a way that this year and possibly next year will be the only years that it could be significant. The result of reaching the cap would mean that the Center would not receive a percent of the food sales, however, we still receive the rent from the facility. I will cover this Monday evening. Commissioner introduced the following resolution and moved its adoption: EDA RESOLUTION NO. RESOLUTION APPROVING A FOOD SERVICE MANAGEMENT CONTRACT WITH OMEGA FOOD FOR THE EARLE BROWN HERITAGE CENTER WHEREAS, Omega Foods (Atrium) has served as the exclusive caterer at the Earle Brown Heritage Center; and WHEREAS, the financing of the Earle Brown Heritage Center requires the Economic Development Authority in and for the City of Brooklyn Center (EDA) to restructure the existing contract with Omega Foods; and WHEREAS, the Economic Development Authority in and for the City of Brooklyn Center desires to continue its relationship with Omega Foods, Inc. NOW, THEREFORE, BE IT RESOLVED that the Economic Development Authority in and for the City of Brooklyn Center does approve the contract between the EDA and Omega Foods, Inc. BE IT FURTHER RESOLVED that the President of the EDA is authorized to sign the contract. 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.