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HomeMy WebLinkAbout2018 05-14 EDAP EDA MEETING City of Brooklyn Center AGENDA May 14, 2018 1Call to Order . –The EDA requests that attendees turn off cell phones and pagers during the meeting. A copy of the full City Council packet, including EDA (Economic Development Authority), is available to the public. The packet ring binder is located at the podium. 2.Roll Call 3. Approval of Agenda and Consent Agenda –The following items are considered to be routine by the Economic Development Authority (EDA) and will be enacted by one motion. There will be no separate discussion of these items unless a Commissioner so requests, in which event the item will be removed from the consent agenda and considered at the end of Commission Consideration Items. a. Approval of Minutes 1. March 26, 2018 – Regular Session b. Resolution Approving and Authorizing the Execution of a Services Agreement for st the 1 Saturday Market Place. 4. Commission Consideration Items –None. 5.Adjournment EDA Agenda Item No. 3a MINUTES OF THE PROCEEDINGS OF THE ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA REGULAR SESSION MARCH 26, 2018 CITY HALL - COUNCIL CHAMBERS 1.CALL TO ORDER The Brooklyn Center Economic Development Authority (EDA) met in Regular Session called to order by President Tim Willson at 8:40 p.m. 2.ROLL CALL President Tim Willson and Commissioners Marquita Butler, April Graves, Kris Lawrence- Anderson, and Dan Ryan. Also present were Executive Director Curt Boganey, Deputy Executive Director Reggie Edwards, Finance Director Nate Reinhardt, Community Development Director Meg Beekman, Planner and Zoning Administrator Ginny McIntosh, City Attorney Troy Gilchrist, and Michaela Kuj awa-Daniels, TimeSaver Off Site Secretarial, Inc. 3.APPROVAL OF AGENDA AND CONSENT AGENDA Commissioner Lawrence-Anderson moved and Commissioner Graves seconded to approve the Agenda and Consent Agenda, and the following item was approved: 3a. APPROVAL OF MINUTES 1. January 22, 2018 - Regular Session Motion passed unanimously. 4.COMMISSION CONSIDERATION ITEMS 4a. RESOLUTION NO. 2018-04 APPROVING A PRELIMINARY DEVELOPMENT AGREEMENT WITH ALATUS, LLC FOR THE OPPORTUNITY SITE Community Development Director Meg Beekman introduced the item, discussed the history, and stated the purpose of the proposed resolution. President Willson stated he had mentioned they were moving forward with Alatus, phase one may include apartments and grocery stores, and that information was well received. 03/26/18 -1- DRAFT Commissioner Ryan stated he is pleased to see this come forward. He noted he understands the complexities in this type of project, he has a lot of faith in Alatus, and looks forward to seeing how it progresses. Commissioner Graves stated she wants to note the importance of involving the community in this process as well. Mr. Boganey stated he would like to invite the developers forward to introduce themselves. Bob Lux with Alatus introduced himself and Chris Osmundson. Mr. Lux stated community engagement is very important to them and they always work to involve as many people as possible. He also congratulated the Commission on their community involvement. Mr. Lux stated the geo study on this project is going to be very important. He noted they have already started to explore options in speaking with theatre operators and grocery stores. He stated they want to create the heart of what the City wants and needs. Commissioner Graves moved and Commissioner Lawrence-Anderson seconded to adopt RESOLUTION NO. 2018-04 Approving a Preliminary Development Agreement with Alatus, LLC for the Opportunity Site. Motion passed unanimously. 5. ADJOURNMENT Commissioner Lawrence-Anderson moved and Commissioner Butler seconded adjournment of the Economic Development Authority meeting at 8:55 p.m. Motion passed unanimously. 03/26/18 -2- DRAFT EDA Agenda Item No. 3b EDA ITEM MEMORANDUM DATE: May 8,2018 TO: Curt BeWy , City Manager FROM: Michael Ericson, Assistant to the Community Development Direti7)'[V i THROUGH: Meg Beckman, Community Development Director \fJQ7 SUBJECT: 1st Saturday Marketplace - Lennie Chism Recommendation: It is recommended that the Economic Development Authority adopt the attached resolution and approve the Services Agreement with Lennie Chism for the 1st Saturday Marketplace. Background: At its January 23, 2018, Work Session meeting the City Council received a presentation from Lennie Chism as he shared a Power Point presentation describing his vision for a 1st Saturday Marketplace which would be an Open Air Marketplace in the parking lot of Brookdale Health. The goal of the market is to provide an opportunity for Brooklyn Center residents to cultivate new and existing startup businesses while increasing their economic stability. This "pop-up" style event would provide an opportunity to test out the demand for such businesses, both for the City and those participating as vendors. After discussion, the City Council directed staff to work with Mr. Chism to develop plans including site logistics, potential vendors, community partners, and put together a budget. At its April 23, 2018, Work Session meeting the City Council received a staff presentation for the 1st Saturday Marketplace that provided an update on the project. Staff shared a budget plan which included infrastructure, staffing, security, insurance, day-of-event needs, and a site plan with room for 29 vendors. When first presented Mr. Chism requested a sponsorship level of $25,000 from the City. Since the April 23, Work Session, staff, together with Mr. Chism, has met with representatives from CEAP, CAPI, Sun Foods, the Liberian Business Association, the Asian Economic Development Association (AEDA), and local restaurants to identify opportunities to collaborate and partner. In addition, Mr. Chism is now exploring the former Jerry's Foods site as a possible alternative location, which would provide more space and parking for the Market. Staff has also met internally and with the City Attorney to identify the best way to move forward with the project, while meeting the City's goals and protecting its interests, City Attorney Troy Gilchrist has prepared a resolution and Professional Service Agreement (Attached), which would be between the EDA and Mr. Chism. Both documents highlight the City's goal of raising the community's economic makeup by cultivating new and existing startup businesses with local immigrant entrepreneurs. The EDA's contribution would not exceed $25,000. Mr. Chism would Ow 'isbn: lie envision Brook! Vii Center as a thriving, diverse conununitv with a full range of housing. business, cultural and recreational otferings. It is a safe and inclusive place that people of all ages love to call home, and visitors enjoy due to its conventent location and commitment to a healthy environment receive an initial advance from the City for start-up costs and would submit event reimbursement forms for approved event expenses he has detailed in his proposed budget. Staff has worked very closely with Mr. Chism to detail and estimate all related expenses. Policy Issues: The proposal is an opportunity for the City's underserved entrepreneurs to be provided a space and venue for which to display, market, and sell their products. Mr. Chism' s vision is consistent with the City's Strategic Priorities. Staff continues to work with Mr. Chism on logistical issues including the use of the Jerry's Food site. He has been very open and transparent sharing his extensive work experience and business acumen with the primary goal to kick-off the event on June 2''. The Economic Development Authority would act as the financial partner as per the City Attorney. Budget Impacts: • Not to exceed $25,000 from the EDA fund Strategic Priorities: • Resident Economic Stability Attachments: • Resolution Approving and Authorizing the Execution of a Services Agreement for the 1 " Saturday Market Place • Services Agreement for the 1st Saturday Market Place • Estimated Event Budget• 1st Saturday Marketplace Overview and Site Layout Our Vision: We envision Brooklyn Center as a thriving, diverse community with afull range of housing, business, cultural and recreational offerings. it is a safe and inclusive place that people of all ages love to call home, and visitors enjoy due to its convenient location and commitment to a healthy environment Commissioner introduced the following resolution and moved its adoption: EDA RESOLUTION NO. 2018- RESOLUTION APPROVING AND AUTHORIZING THE EXECUTION OF A SERVICES AGREEMENT FOR THE IST SATURDAY MARKET PLACE WHEREAS, the Economic Development Authority of the City of Brooklyn Center, Minnesota ("EDA") is authorized pursuant to Minnesota Statutes, Sections 469.090 to 469.1081 to provide for and promote economic development activities within the City of Brooklyn Center ("City"); and WHEREAS, the l Saturday Market Place ("Market") is proposed as a means of providing an open air business incubator for entrepreneurs located in the City, and those who may be interested in establishing a business in the City, to display and sell their products; and WHEREAS, the Market is proposed to be located either at the former Jerry's Foods property with on-site parking, or at the Brookdale Health property with off-site parking at the adjacent Cub Foods (the selected site, the "Market Site"); and WHEREAS; the EDA recognizes that many entrepreneurs, particularly those from the immigrant populations, do not have the financial resources required to establish a traditional storefront business and so the Market will provide residents an opportunity to display and sell their products at the Market without charge; and WHEREAS, the proposed Services Agreement for the 1st Saturday Market Place ("Agreement") between the EDA and Lennie Chism ("Contractor") sets out the terms and conditions under which the Contractor will conduct the Market in exchange for financial support, not to exceed $25,000, from the EDA; and WHEREAS, the EDA desires to approve the Agreement and authorize its execution once the Contractor has satisfied the conditions precedent identified below. NOW, THEREFORE, BE IT RESOLVED, by the Board of Commissioners of the Economic Development Authority of Brooklyn Center, Minnesota ("Board") as follows: The Board hereby approves the Agreement and authorizes its execution once the Executive Director determines the Contractor has satisfied following conditions precedent: (a) Delivery of a fully executed agreement with owner of the Market Site for the use of its parking lot for the Market; and (b)If the Market is to be located on the Brookdale Health property, the Delivery of a fully executed agreement with Cub Foods for the use of its parking lot for 523152v2 TJG BR305-1 EDA RESOLUTION NO. parking by those attending the Market. 2. EDA staff and officials are authorized to further negotiate the terms of the Agreement prior to its execution as may be needed to establish the Market and to otherwise carry out the purpose of this Resolution. May 14, 2018 Date President The motion for the adoption of the foregoing resolution was duly seconded by Commissioner and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. 523152v2 TJG BR305-1 SERVICES AGREEMENT FOR THE IT SATURDAY MARKET PLACE THIS SERVICES AGREEMENT ("Agreement") is made and entered into this day of May, 2018 by and between the Economic Development Authority of Brooklyn Center, Minnesota, a public body corporate and politic under the laws of Minnesota ("EDA") and Lennie Chism ("Contractor"). The EDA and the Contractor may hereinafter be referred to individually as a "party" or collectively as the "parties." RECITALS A.The EDA has broad authority to promote economic development and to provide opportunities for local entrepreneurs to display and sell their products; B.The 1st Saturday Market Place ("Market") is proposed to serve as an open air business incubator at which City of Brooklyn Center ("City") residents and others will have an opportunity to sell their products within the City from tents erected at the site of the Market; and C. The Contractor has agreed to be responsible for conducting the Market in accordance with the terms and conditions of this Agreement and the EDA has agreed to advance and reimburse the costs to conduct the Market up to a maximum of $25,000. AGREEMENT In consideration of the mutual promises and agreements contained herein, and intending to be legally bound, the EDA and the Contractor hereby agree as follows. Services. The Contractor shall be solely responsible for conducting the Market in accordance with the requirements of this section (collectively, the "Services"). (a) The Market will be: (I) Conducted on the first Saturday of each calendar month starting no later than July 2018 and shall continue through at least October 2018; (2)Located in the parking lot of Brookdale Health, 5740 Brooklyn Boulevard, Brooklyn Center, MN, or at the former Jerry's Foods, 5801 Xerxes Ave. N., Brooklyn Center, MN (the selected location hereinafter referred to as the "Market Site"); (3)Conducted from 10 a.m. to 5 p.m., rain or shine; (4)Conducted so as to provide booth space without charge to residents of the City (i.e., no booth or table rental fees); and (5)Conducted so that a fee may be charged for booth space and tables for those participating in the Market who are not residents of the City. 521206v4 TJG BR291-4 (b) The Contractor shall be responsible for: (1)Entering into such agreements with owner of the Market Site as may be needed to secure the site for conducting the Market; (2)Entering into such agreements as maybe needed to secure parking space on or adjacent to the Market Site for those participating in and attending the Market; (3)Providing for parking for the Market and a safe means for attendees to travel from the parking area to the Market Site if on-site parking is not available; (4)Entering into such agreements as may be needed to provide security for the Market; (5)Providing, or causing to be provided, the booths and tables needed for the Market either directly or through an agreement with the City; (6)Managing booth registrations, assigning booths and tables, and collecting rental fees; (7)Making all required payments to vendors; (8)Providing for the accounting of all expenditures related to the Market and the funds provided under this Agreement, including the issuance of any tax forms to vendors as may be required by law; (9)Establishing and enforcing reasonable rules for those displaying and selling products; (10)Complying with the terms and conditions of this Agreement, all applicable state and local laws, rules, and ordinances, and obtaining all permits and permissions that may be required; (11)Providing adequate toilets and waste receptacles, including the pick up and proper disposal of all wastes; (12)Obtaining and maintaining written receipts for the costs the Contractor incurs to conduct the Market; (13)Obtaining and maintaining general liability insurance for the Market during the entire term of this Agreement, including having the EDA and City named as additional insureds on the policy. Special event insurance secured for the days the Market is actually conducted shall be sufficient, provided the policy is in effect at all times the Market is being conducted; and (14)Conducting any such other activities as may be required to establish and conduct the Market in accordance with the Contractor's proposal provided to the City. 2 521206v4 TJG BR291-4 (c) The Contractor shall use all amounts it collects for, and from, the Market, including the amounts provided under this Agreement and any rental fees received, to pay the costs of conducting the Market. 2.Payments. The EDA shall pay the Contractor for providing the Services on a reimbursement basis up to a maximum of $25,000 for all Services provided under this Agreement. In no case shall the total amount reimbursed by the EDA to the Contractor exceed $25,000. The Contractor shall submit itemized written reimbursement requests to the EDA not more frequently than once per week. The reimbursement request shall be supported by written receipts for all amounts for which reimbursement is being sought. The EDA shall pay the Contractor on properly submitted reimbursement request within 30 days from the date of receipt. The EDA shall not be responsible for entering into any other contracts or making any payments to third parties related to conducting the Market or for supplying materials or staff for the Market. The EDA, through the City, may make tents and tables available for the Contractor's use for the Market on such terms and conditions as may separately be established by the City. To the extent the City agrees with the Contractor to purchase tents or tables to make available for the Market, the EDA may provide the funds to make the purchase to the City and such amounts shall be counted toward the $25,000 total maximum amount available under this Agreement. 3.Advance of Initial Expenses. (a) The EDA agrees to advance the following amounts to the Contractor to help cover some of the startup costs the Contractor will incur to conduct the Market (collectively, the "Initial Advance"): (1)$2,000 damage deposit to be held by Brookdale Health related to the use of its parking lot as the Market Site if that property is used for the Market, or such other damage deposit amount (up to $2,000) as may be required to secure the Market Site if it is located on the Jerry's Foods property; and (2)$5,000 to pay the startup costs related to the Market. (b) The Contractor shall use the Initial Advance only for the costs directly related to conducting the Market and shall obtain and keep receipts for all expenditures made from the Initial Advance. The Contractor shall provide the EDA an accounting of the Initial Escrow along with copies of receipts for all expenditures made from those funds. The Contractor shall return any remaining portion of the Initial Advance, and any subsequent advances, to the EDA after the final 2018 Market is conducted. The Initial Advance is counted toward the $25,000 total maximum amount available under this Agreement. (c) The EDA may, but is not obligated to, agree to provide additional advances during the term of this Agreement, all of which are subject to the same limitations placed on the Initial Advance and are counted toward the total maximum amount available under this Agreement. 4. Term and Termination. This Agreement shall be effective as of the date first written above and it shall continue through the end of the 2018 season as indicated above. This Agreement may be 521206v4 TJG BR291-4 terminated by either party at any time, and for any reason, on 30 days' written notice of termination provided to the other party. The EDA agrees to reimburse the Contractor for costs properly incurred for the Market prior to either party providing a notice of termination. Upon termination, the Contractor agrees to return to the EDA any unused portion of any advances made under this Agreement. 5.Amendments. This Agreement, including the recitals which are incorporated herein, constitutes the entire agreement between the parties and no modifications of its terms shall be valid unless reduced to writing and signed by both parties. 6.Independent Contractor. The Contractor is providing the Services as an independent contractor, not an employee of the EDA or the City. Contractor shall acquire no rights to tenure, workers' compensation benefits, unemployment compensation benefits, medical and life benefits, sick and vacation leave, severance pay, pension benefits or other rights or benefits offered to employees of the EDA or the City. The Contractor shall maintain its own insurance coverages including, but not limited to, workers' compensation insurance (unless exempt). The Contractor shall have no authority to enter into any contracts, create any obligations, or make any warranties or representations on behalf of the EDA or the City. 7.Data Practices and Records. The Contractor shall manage all data created, collected, received, stored, used, maintained, or disseminated by the Contractor pursuant to this Agreement in accordance with, and subject to the requirements of, the Minnesota Government Data Practices Act, Minnesota Statutes, Chapter 13 ("Act"). The Contractor shall immediately notify the EDA if it receives a request for data related to the Services and shall work with the EDA to respond to the request in accordance with the Act. 8.Liability. Each party is responsible for its own acts and the results thereof to the extent authorized by law and a party is not responsible for the acts of the other party or the results thereof. Nothing in this Agreement shall constitute a waiver by the EDA of any limits on or exclusions from liability available to it under Minnesota Statutes, chapter 466 or other law. 9.Audit, Pursuant to Minnesota Statutes, section 16C.05, subdivision 5, the books, records, documents, and accounting procedures of Contractor relevant to the Services are subject to examination by the EDA and either the legislative auditor or the state auditor, as appropriate, for a minimum of six years. 10.Applicable Law. The law of the State of Minnesota shall govern all interpretations of this Agreement, and the appropriate venue and jurisdiction for any litigation that may arise under this Agreement will be in and under those courts located within the County of Hennepin, State of Minnesota, regardless of the place of business or residence of the Contractor. 4 521206v4 TJG BR291-4 IN WITNESS WHEREOF, the parties have executed this Agreement effective as of the date of the last party to execute it. CONTRACTOR EDA By: By: Lennie Chism Tim Willson, President Date: By: Cornelius Boganey, Executive Director Date: 521206v4 TJG BR291-4 1'il 1Budget Lennieriiinism 202-578-274lenniechism@gmaii.comn .]ii1 -vent Staff (Market Manager to coordinate the services, staff, vendors, activities' *All Operational staff -Tax 1099 o Market Manager $1500 for each event • Time for planning *• Correspondence • Promotions • Reporting Data Gathering • Market Day Day Event Staff o Check-in, event customer experience o Setup/Takedown (before, after) o Tidy Up Staff (before, during, after) o Social Media Marketing o Ambassador • Traffic Control • Site Clean Up, maintenance o Security Services o Vendor - Limitless Protection Services, LLC (2 staff-$40/hr/$300) Infrastructure 9 Site Deposit o $2,000 - Brookdale Health 0 Event Insurance - $300/day 0 Operational Permits, • Event-$50 • Electrical for Portable Generator - $200 • Food Vendor- as per county regulations o Site Improvements o Port - a -johns Vendor - Biffs - STD & ADA-$345 + $150 • Utilities Water Portable Electrical Generator Vendor: Ziglar 50k ($2,000 estimate I per event) 0 Electrical Permit required - Electrician -$200 • Sanitation • Waste Management- 10-yard © $650 +6-90 gal.R&R -$50 • 12 90 gal. R & R: Brooms, Trash Bags, Pickup Sticks • Exhibitor Booths u Tents -20 @ $150 -$3,000 Tables - n/c Chairs - n/c Signs o Event Signage o Vendor Traffic Control: Warning Lites - $400/per event o Staff Clothing o T-shirts - $25 x 20 volunteers o Internet (hot spot) Will seek as vendor(s) to donate the service • Century Link • Metro PCS • Verizon • Sprint • 1-Mobile o Point of Sale Software for revenue generated o Event Data Collection Software for Market Evaluation o Survey of attendee - ambassadors and vendor booth o Entertainment Services • Vendor - KMOJ Remote Broad Cast - $700/per with Personality 1la-1p • Vendor - RCM (Ray Covington Management) o Children Activities • Vendor: USA Inflatables - $300 • Vendor - Chit Chat the Clown Services Face Painting - $300 o Graphic / Printing Design Services for Promotional signage $1,000 • Allen 7 Designs • UPS Store o Storage Rental o Security Services o Vendor - Limitless Protection Services, LLC (2 staff © $40/hr-$400) Miscellaneous GOAL: The 1st Saturday Market Place (lstSMP) seeks to raise Brooklyn Center's economic makeup, by cultivating new and existing startup businesses while increasing resident economic stability. Priority will be given to BC residents for source of vendors. Funding: BC's $25,000 investment will provide the working captial startup for the IStSMP. For mostmarkets, booth fees ordinarily are the primary source of income. IStSMP, a slightly different approach will be to provide the space at no charge for BC residents, and modest fee for non-resident business. Other revenue will be generated for ongoing operations from the Market Store and Merchandise, rental booth fees, sponsorships (options are being explored). Event DESC: We are transforming Brookdale Health's parking lot into an open-air market. NoWindows, No Door - Open Air Shopping. Dates: IStSMP, May-Nov 2018 Time: I Oam-5pm, Rain or Shine Location: 5740 Brooklyn Blvd, Brooklyn Center, MN 55429 FREE ADMISSION OPEN TO THE PUBLIC Attendees: Come for the Shopping! Brookdale Health's parking lot will become a shopper's street of dreams with a myriad of merchant booths featuring various categories of Arts & Crafts, Jewelry, Home Decor, Health & Beauty, Sporting Goods, and Children's Items, Clothing, Pets, Direct Sales companies, service merchants and more! woudget Items: As per discussion, BC would direct vendor pay for items IStSMP Operational staff (Tax -1099). Staff time for planning, correspondence, promotions, and reporting as well as staff time to be present in the market on market days. - Market Manager, Day Event Services (Setup, Takedown, Sanitation), Social Media Marketing, Volunteer Ambassador Coordinators Infrastructure and Supplies: Site Deposit, Operational Permits, Site Improvements, Port - a -johns, Fees for service Utilities (Water, Electrical Generator), Waste Management Services, Market Supplies (New Tents, Tables, Chairs, Trash Cans, Signs), Directional Road Signage, Staff Clothing, EBT, Internet, Point of Sale Software for revenue generated, Event Data Collection Software for Market Evaluation, Entertainment Services, Security, Services, Children Activities, Graphic Design Services, Storage Rental , Miscellaneous Insurance: Event Insurance Advertising, Promotions, Entertainment: KMOJ On-Site Live Remote, SoundStage Music Bookings, Children's Art Program and Supplies, Miscellaneous Questions - Lennie Chism, 202-578-2740, lenniechismgrnail.com May 14, 2018 EDA Meeting Meg Beekman, Community Development Director January 23, 2018 Work Session –Presentation  from Mr. Chism April 23, 2018, Work Session –Staff provided  update Internal Meeting with City Attorney, Property  Owners, and Staff Community Outreach  Create a pop-up event and opportunity for the  City’s underserved entrepreneurs to be provided an affordable space for which to display, market, and sell their products EDA Goals and Support: Not to Exceed $25,000  Location  Preferred Site: Former Jerry’s Foods ◦ Back-up Site: Brookdale Health Clinic ◦ June 2, 2018 Kick-off  Approve a Resolution Approving and  Authorizing the Execution of a Services Agreement for the 1Saturday Market Place st