Agenda Packets - 2004/11/01 - Laserfiche WebLink

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Item No: 07 Meeting Date: 11/01/04 Type of Business: WS City of Mounds View Staff Report To: Honorable Mayor and City Council From: Kurt Ulrich, City Administrator Item Title/Subject: Banquet Center Lease Update Based upon action of the Council at the last meeting, the following (underlined) provisions have been provided by the City Attorney and incorporated into the contract with Canyon Grill: 7. Monthly Compensation Rates. The City shall receive at a minimum a monthly lease payment in the amount of $3,000 for each of the months of November and December 2004, $3,000 for each of the months of January through June 2005, and $5,000 per month beginning July 1, 2005 until termination. Monthly lease payments are due to the City’s finance department by the first business day of each month. Periodic use of the Mounds View Community Center’s gymnasium for large banquet, conventions and trade shows will need to be coordinated with the City and the YMCA and the appropriate fees negotiated with the City. The use of “Room C” will need to be coordinated with the YMCA and the appropriate fees paid. In the event that the month to month or other term sublease presently existing at the Banquet Center (the “Sublease Area”) for the area, amount and entity defined in Exhibit D is terminated and the Sublease Area is not able to be leased for a time period in excess of thirty (30) days, the City agrees to abate the monthly lease payment set forth above in this paragraph 7 during the Agreement Term by reducing the monthly lease payment by an amount not to exceed $1,500 per month in any month that the Sublease Area is not leased. 9. Early Termination by Either Party. This Agreement may be terminated by the City or the Manager without cause at any time during the Agreement Term of this Agreement by delivery of sixty (60) day’s written notice delivered to the other party. This Agreement may be terminated by either the City or the Manager without cause at any time during any Additional Term year of this Agreement by delivery of sixty (60) day’s written notice to the other party. If the Manager should terminate the Agreement within the Agreement Term or within any Additional Term year of this Agreement, the Manager shall not move or attempt to move any event scheduled for the Banquet Center from the Banquet Center. If the City should terminate the Agreement within the first year of this Agreement, the City shall reimburse Manager for ninety percent (90%) of the value of any kitchen equipment paid for and installed by Manager at the Banquet Center. If the City should terminate the Agreement within any Additional Term year of this Agreement, subject to the terms and conditions contained herein, the City shall provide payment to Manager in the amount of fifteen percent (15%) of the retail value of food and beverages for any future single day event booking (exclusive of City events and hours) scheduled to occur (and actually occurring) within six (6) months of the date of termination. The number and scheduling of such future events shall be mutually determined by the Manager and the City at the time of Any payment that is required to be made by the City to the Manager pursuant to this paragraph shall be made to the Manager on a monthly basis within thirty (30) days of the time that it can reasonably be determined that all event costs have been finalized and documented. This paragraph shall not apply or be of any effect if either party elects not to renew the Agreement pursuant to the terms of paragraph no. 2 of this Agreement. Under Section 7, providing a partial rent abatement of up to $1500 if the current sublessee terminates, increases the likelihood that the current caterer can remain in the building on a long-term basis and provides an incentive to the caterer to re-lease the