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<br /> <br />Item No. 07S <br />Type of Business: CB <br />Meeting Date: March 13, 2006 <br />City of Mounds View Staff Report <br />To: Honorable Mayor and City Council <br />From: Kurt Ulrich, City Administrator <br />Item Title/Subject: Resolution No. 6777 Approving the Amended <br />Banquet Center Management, Catering and Food <br />Service Agreement with Canyon Catering <br />beginning April 1, 2006 <br /> <br />Meeting Date: March 13, 2006 <br /> <br />Background: <br />Recently, the Mounds View Community Center Task Force recommended to the <br />Council that the City pursue an alternate management structure for the <br />Community Center that does not rely on a long-term lease of the Community <br />Center banquet facility. The Task Force recommendation was forwarded as a <br />result of a study that was commenced when the current caterer served a <br />termination notice to the City indicating that they are unable to operate the center <br />at a profit under the previous rent level of $5,000 per month. Notably, the caterer <br />has been allowed to operate the facility free of rent while the City occupied space <br />during the City Hall remodeling over the past six months. <br /> <br />It was on November 1, 2004 that the City entered into an agreement with Canyon <br />Catering, LLC. of Coon Rapids as the manager of the Mounds View Banquet <br />Center. Canyon Catering, has been leasing 11,537 sq. ft. of space in the M.V. <br />Community Center. This includes the Ballroom, the former Community <br />Education area, storage space and related hallways. <br /> <br />The attached Agreement has been reviewed by the City Attorney and is currently <br />being reviewed by Canyon Catering. <br /> <br />Under the negotiated agreement Canyon Catering will make a monthly payment <br />of $2,000, under a 30-day, automatically renewing lease, which has a 30-day <br />termination notice provision. Under this agreement, the church will continue to <br />sublet directly from Canyon Catering. <br /> <br />During the term of the original agreement, Canyon Catering invested <br />approximately $14,000 in kitchen equipment. Additionally, property taxes for the <br />entire Banquet Area will be paid by Canyon Catering amounting to $973 per