Minutes - 2004/10/25 - Laserfiche WebLink

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Mounds View City Council October 25, 2004 Regular Meeting Page 10 • Ayes -5 Nays-0 Motion carried. K. Resolution 6384 Approving the Banquet Center Management, Catering and Food Service Agreement with Canyon Catering beginning November 1, 2004. Economic Development Director Backman stated that Canyon Grill would be leasing 11,500 square feet of space at the Mounds View Community Center. He stated the Canyon Grill would be paying $3,000 each month for eight months, from November of 2004 to June of 2005, and then $5,000 per month until termination of the lease. He stated the reduction in lease payments for the first eight months is due to the fact that the interim manager terminated services two months earlier than indicated in the RFP and that the interim manager has actively moved previously scheduled events to its other facility. He stated that there is only one event left on the books. Council Member Marty asked why the figure of $14,000 was used in the staff report as far as investing in kitchen equipment rather than the previously used figure of $19,000. He stated he also did not see anything regarding carpeting in the agreement. He stated he would also like a clause in the agreement regarding revisiting payment of utilities if the utility rates continue to climb. Economic Development Director Backman stated that City Clerk/Administrator Ulrich has received several quotes for replacing the carpet in the whole facility, and those quotes range from • $50,000-$70,000. He stated there have been discussions with Canyon Grill regarding reimbursing a portion of that cost. He stated that the Canyon Grill would like the shorter agreement of 14 months rather than five years in light of the changes that have occurred over the last couple of months. Roy Dodd of Canyon Grill stated that the lease process and negotiations have been extremely condensed and complicated, and that this agreement sets the stage for success versus one for conflict and failure. He stated that they are still agreeing to pay the property taxes even though they don't have bookings. He stated it will take three years to get the bookings back up, and that they will be losing money the first six to eight months. He named the current bookings that they have. He stated he had said no to committing their year two improvement investment of $10,000 to the carpeting because he wanted to spend time in the building to know what those dollars would be best used for. Mr. Dodd stated that he has discussed with City Clerk/Administrator Ulrich that in the event the church should leave, he would like an abatement of that rent until a client suitable to the City was located, and City Clerk/Administrator Ulrich had said no to that request. He stated he would like to throw out the suggestion that the rent would be abated for the first two years only. Council Member Marty suggested that since the length of this contract is 14 months, perhaps if the church left, Canyon Grill could come back and ask the Council for abatement of the rent • during the remainder of the contract, and it could be addressed at a later time.