Agenda Packets - 2005/09/26 - Laserfiche WebLink

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Mounds View City Council August 22, 2005 Regular Meeting Page 33 1 City Administrator Ulrich recommended that the City Council consider Resolution 6605 2 Adopting an Amended Contract with Canyon Grille for the Lease of Space at the Mounds View 3 Community Center contingent upon the Council awarding bids for remodeling the City Hall. 4 5 Councilmember Flaherty stated this is a lease back to the City so it is not for zero, it is for $5,000 6 a month. He stated he supports staff’s recommendation. 7 8 Councilmember Thomas stated that prior to considering this matter, she had asked for a rent 9 comparison, which she thinks is favorable. She stated she was hopeful in discussion with Mr. 10 Dodds that they would have an indication if their business would be viable in seven month’s time 11 period. For the record, he said he should have an indication at the end of that time. With that 12 assurance, she stated she can support staff’s recommendation. 13 14 Councilmember Stigney stated he believes this is the “beginning of the end” of the banquet 15 operation being handled by Canyon Grille. He stated his concern with this recommendation and 16 asked if the City can give them 100 days notice and then the City has it. 17 18 City Administrator Ulrich stated the downside with that option is that the City would lose a 19 caterer who has provided a good service and if the City wants to give them any opportunity of 20 success. It would also throw the City into the scenario of trying to cover events that are already 21 booked. Financially, the City would be zeroed out anyway but there would be some obligation 22 for future events and the City would have to arrange for a caterer to come in for scheduled 23 events. 24 25 Councilmember Stigney pointed out that Canyon Grille would also pay zero dollars for seven 26 months but get to use the facility for weekends to do their business. He stated he does not 27 support that proposal. 28 29 Mayor Marty stated rents are paid by the day care and Chamber of Commerce, and the City 30 would be paying more rent than any of them. He asked why the City should pay more for their 31 own building, even if it is cheaper than other space checked. He stated it is only $1 a square foot 32 more but it makes more sense for the City to be across the street. 33 34 Councilmember Gunn stated she will support this recommendation because when City staff is 35 there using all the resources it will be less desirable to rent out. 36 37 Councilmember Stigney stated Canyon Grille will have the full use of the space every weekend. 38 39 MOTION/SECOND. Flaherty/Gunn. To waive the reading and adopt Resolution 6605 Adopting 40 an Amended Contract with Canyon Grille for the Lease of Space at the Mounds View 41 Community Center. 42 43 Councilmember Thomas stated it is somewhat attractive to use vacant space but the cost to the 44 City would be substantial to cover the scheduled events and there would also be less income into 45