HomeMy WebLinkAbout05-28-1996 EDA1
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PROCEEDINGS OF THE MOUNDS VIEW
ECOIVOMIC DEVCLOPMENT AUTHORITY
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Meeting No. 22
May 13, 1996
Mounds View City Hall
2401 Hwy. 10, Mounds View MN 55112
CALL TO ORDER
The Economic Development Authority was called to order by President Linke on May 13, 1996 at 9:05
p.m.
ROLL CALL
MEMBERS PRESENT: President, Jerry Linlce; Vice Pi•esident Phyllis Blanchard, Secretaiy, Julie Trude;
Commissioner Gary Quick, Commissioner Sue Hanlcner, Cathy Bennett, Executive Director, Chucic
Wliiting, Clerlc-Administrator and Bob Long, City Attoi•ney.
OTHERS PRESENT: None
APPROVAL OF AGENDA:
Ms. Bennett asked that one item be added to the Agenda, (7)(e) Consideration of Continued Operation of
the Bel-Rae Ballroom through July 1996.
MOTION/SECOND: Trude/Blanchard to Approve EDA Agenda as Amended.
VOTE: 5 ayes
APPROVAL OF MiNUTCS:
Apri122, 1996 - Re�ular Meetin�
0 nays Motion Carried
MOTION/SECOND: Trude/Hanlaier to approve the minutes of the Regular EDA Meeting of Apri122,
1996 as presented.
VOTE: 5 ayes 0 nays Motion Carried
Apri129, 1996 - Special Meetine:
MOTION/SECOND: Quicic/Hankner to approve the minutes of the Special EDA Meeting of April 29,
1996 as presented.
VOTE: 5 ayes 0 nays Motion Carried
Mav 6. 1996 - Special Meeting:
Ms. Trude stated she had a correction on Page 2, Line 5. The sentence should be changed to read as
follows: "the EDA needs to conduct its business. .."
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EDA Meeting #20
February 12, 1996
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MOTION/SECOND: T►-udeBlanchard to approve tiie minutes of the Special EDA Meeting held on May
6, 1996, AS AMENDED.
Ms. Hanlaier stated the minutes state that she was aware that the EDA may talce action at this meetinb,
which she feels is merely a presumption on Ms. Trude's part. Additionally, lines 8 and 9 are not
completely accurate and aslced for some clarifications.
Ms. Trude stated she would lil<e to amend Line 8 of the minutes to read as follows: "Commissioner Trude
held discussions with several entities in the community regarding community needs such as Community. .
.". This was agreeable to Ms. Blanchard.
MOTION by Ms. Trude to table the approval of these minutes. Motion FAILS for lack of second.
VOTE on the original motion:
4 ayes
CONSENT ACENDA:
0 nays (1 Abstain - Hanlcner) Motion Carried
There were no items placed on the Consent Agenda for this meeting.
PUBLIC HEARiNCS:
There were no Public Hearings scheduled for this meeting.
EDA BUSiN�SS:
A. Consideration of Deposit Agreement By and Between the Mounds View EDA and V. B. Digs.
Ms. Bennett stated she had prepared a Deposit Agreement in the amount of $2,500.00 to be applied toward
the EDA's costs to evaluate the use of tax increment assistance witli V.B. Digs for the redevelopinent of the
Bel-Rae site. V. B. Digs is the entity that has stressed an interest in constructing volleyball coucts on that
site. She noted that the agi•ee►nent will allow the EDA to collect additional funds if the costs to evaluate
TIF assistance is in excess of the $2,500 deposit. If the project does not proceed due to either parties
decision, the deposit will be applied to expenses incurred up to that point. The agreement does not obligate
EDA in any way to proceed with the redevelopment of the prope�-ty.
MOTION/SECOND: Hanlcner/Linke to approve the Deposit Agreement by and between the Mounds View
�DA and V.B. Digs.
VOTE: 5 ayes 0 nays Motion Carried
B. Consideration of Resolution No. 96-EDA-47, Approving the Purchase of Tax Forfeiture Lands.
Ms. Bennett explained that at the April 22, 1996 Regttlar Council Meeting, the council made a motion to
recommend that the EDA purchase three contiguous properties that are up for tax forfeiture by Ramsey
County. The staff has reviewed the property and concluded that they are developable and would be
EDA Meeting #20
February 12, 1996
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worthwhile to own for redevelopment purposes in he future. The total cost of all tlu-ee properties,
including closing fees ainounts to $4,798.35.
MOTION/SECOND: Hanlaier/Quick to approve Resolution No. 96-EDA-47, Approving the Purchase of
Tax Forfeiture Lands.
VOTE: 5 ayes 0 nays Motion Carried
C. Consideration of Resolution No. 96-EDA-4G, Approving a Housing Replacement Program.
Ms. Jennifer Bergman, Housing Inspector, explained that this program was discussed at the May 6, 1996
work session. The p►•ogram proposes that the city would put•chase substandard or dilapidated housing on a
voluntary basis that could be demolished and the land used for redevelopment. The property could be sold
to a buyer/developer team and a new structure could be constructed on the land.
MOTION/SECOND: Blanchard/Trude to approve Resolution No. 96-EDA-46, Approving a Housing
Replacement Program.
VOTE:
5 ayes 0 nays Motion Cai•ried
D. Consideration; of Resolution No. 96-EDA-48, Amending Economic Development Authority By-
Laws to Comply with State Statutes.
Ms. Bennett noted that Mr. Long had suggested that the Mounds View EDA bylaws be amended to comply
with State Statutes regarding Special Meetings and Emergency Meetings. The amendment would change
Special Meetings whereby there must be a 3 day notice to all Commission and Board members to call a
Special Meeting versus a 2 day notice as it requires now. Also a section will be added entitled Emergency
Meetnigs to comply with the State Open Meeting Law.
MOTION/SECOND: Trude/Hanlcner to approve Resolution No. 96-EDA-48, Amending Economic
Development Authority ByLaws to Co►nply with State Statutes.
VOTE: 5 ayes 0 nays Motion Carried
E. Consideration of Continued Operation of the Bel-Rae Ballroom through July 1996.
Ms. Bennett explained that on Friday she received a call fi•om N1r. Jambor who wanted to 1<now if the city
would want to continue some of the regular activities at the Bel-Rae ttu�ough the month of July. He is in
the process of preparing for advertised activities and needed some input as to what the city intends to do.
Mr. Jambor stated his staff and himself would be willing to stay on as long as needed for a nominal fee. If
the commissioners are in agreement, some type of agreement would need to be drafted for the period of
time between the EDA and Mr. Jambor for running the operation. Mr. Jambor has assured the city that
this wotild be of financial benefit to the city.
MOTION/SECOND: Trude/Hanlaier to authorize staff to continue the operation of the $el-Rae Ballroom
through July 1996, provided it is of financial benefit to the city.
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EDA Meeting #20 ;., � ,� ,Y� �» , �,,,,�, �{ ��-� �'I--•�� �
February 12, 1996 • , ., _ _ _ . „ ._ ,., __ . ...
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1 Mr. Whiting noted that staff cannot guarantee that there couldn't be some liabilities on behalf of the city, as
2 an accident could occur. There are some risks associated with the decision which need to be evaluated
3 further.
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5 MOTION/SECOND: Trude/Linke to AMEND the previous motion, and to authorize staff to enter into
6 necessary negotiations with Mr. Jambor to continue the operations of the Bel-Rae Ballroom, with those
7 agreements to be reviewed by the commission on May 28, 1996.
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9 It was decided that a message could be prepared for the Bel-Rae Ballroom's telephone, advising residents
10 of the upcoming schedule, therefore eliminating the need for advertisement in the paper.
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12 MOTION/SECOND: Trude/Linl<e to withdraw the previous motion.
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14 MOTION/SECOND: Linlce/Trude to authorize staff to evaluate the financial arrangements for a potential
15 agreement with Tony Jambors to operate the Bel-Rae Ballroom on behalf of the �DA through the month of
16 July 1996, and to enter into an agreement if the evaluation is in the best financial and other interests of the
17 city.
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19 VOTE: 5 ayes 0 nays Motion Carried
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21 REPORTS
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23 Report of President Linke: No Report.
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25 Repot•t of Vice President Blanchard: No Report.
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27 Report of Secretary Trude: No Report.
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29 Report of Commissioners:
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31 Commissioner Quick: No Report.
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33 Co►ninissioner Harilcner: No Report.
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35 Report of Executive Directoi° No Report.
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37 President Linke adjourned the meeting at 9:50 p.m.
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40 Respectfully submitted,
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43 Tamara D. Saeflce
44 Recording Secretary
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ECONOMIC DEVELOPMENT AUTHORITY Agenda Section 7a
R�QUEST FOR EDA CONSIDERATION Report Number:EDA96-53c
STAFF R�PORT Report Date: 5/23/96
EDA MEETING DATE
Mav 28, 1996
Special Order of Bus.
Consent Agenda
Public Hearings
X �DA Business
Item Description: Consideration of Continuing Operations at the Bel-Rae Ballroom through July
Executive Director's Review/Recommendation:
-No Comments to supplement this report
-Comments attached.
Lxplanation/Sumn2aNy (attach supplenzent sheets as necessary)
Sumrnary:
Mr. Jambor has prepared an estimated cash flow projection for July based on the regular Thursday and Friday
night events which has had a steady and dedicated patronage. The City(EDA) would need to hold the liquor
license and secure insurance coverage for that license in addition to general liability coverage for the building
and its contents. Mr. Jambor has offered to oversee the operations of these events for the City through July
and beyond if we so desire. Bob Long has prepared a management agreement which would allow Mr.
Jambor to hire laUor and run the events as he has done so for many years. All of the operating expenses
would come out of the profit generated from the events. The agreement includes a provision for the Jambors
to talce 50% of the profits after all of the operating expenses are covered. This would cover Tony's time for
arranging and overseeing the events and Dolores' time for preparing the necessary financial statements and
handling the booldceeping.
Because the City would be required to secure a liquor license there are additional liability issues we must
incur. I spolce with the City insurance agent and he would not recommend offering setups because insurance
agencies are very slceptical regarding the liability. In addition, by holding a liquor license for this type of
operation we would talce the rislc of not being eovered under the Governinental Tort Ainunity limit of
$600,000. Therefore, we would need to secure additional coverage over and above the basic premium.
I have prepared a sources and uses spreadsheet based on the estimated ticicet/bar sales and fees for events. I
have also estimated the general operating expenses that we would incur to lceep the ballroom open for another
month. According to Mr. Jambor June, July and August are the slowest months due to the summer weather
for the Friday night DJ but they are the most successful months for the Thursday senior single events. He
based his estimates talcing this into consideration. If we are just loolcing at sources and uses for the events
there is a positive cash flow but once we talce out the additional operating expenses there is a negative cash
flow. '
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Executiv, �irector � (Continued)
RECOMMENDATION: Not to Continue Operations through July based on the Projected Sources and Uses
Spreadsheet and Insurance Liabilities or Consider operating for 6 months to increase the proiit margin.
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EDA STAFT REPORT NO.
PAGE TWO OF TWO
To get a better feel for actual amounts, Mr. Jambor shared with me the most recent Thursday night event
receipts and expenses. There is a positive cash flow using the estimates of operating expense divided by seven
total events.
The City would have a negative profit margin for running the Bel-Rae just for July but it may be beneficial to
enter into an agreement with Tony for a period of 6 months while we go through the planning process for the
use of the building. In this regai•ds we could offer at least an additional event on Saturday to reduce the impact
of the operating expenses and make a profit over the period of time. I have spolcen to the owner of the White
Sidewalls and he is interested in renting the ballroom for dance lessons once a weelc beginning in October. In
addition, I lcnow there is at least one wedding scheduled for September.
In summary, there is the potential for lceeping the Ballroom active with a good possibility of generating a profit
over a period of time to cover the operating costs but if we commit to only one month with a total of seven
events we would not cover all of the costs of operation.
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Budget for Bel-Rae Operations
Sources Uses
July 4th Evert Boyer Band
150 @$7 Tickets $ 1,050.00 Band Fee $ 600.00
150 @$1.25 Bar $ 187.50 Labor/clean up $ 220.00
No Band Scheduled
Ticket Sales $ - DJ/Dance Fees $ -
Bar Sales $ - Labor/Clean up $ -
Julk11th Dick Macko Orchestra
150 @$5.50 Ticket $ 825.00 Band Fee $ 400.00
150 @$1.25 Bar $ 187.50 Labor/Clean up $ 200.00
July 12th Gentleman Jim Country DJ
150 @$5 7ickets $ 750.00 DJ/Dance Fees $ 300.00
150 @$1.25 Bar $ 187.50 Labor/Clean up $ 200.00
Jul,y 18th Jack Schultz Orchestra
150 @$5.50 Ticket $ 825.00 Band Fee $ 400.00
150 @$1.25 Bar $ 187.50 Labor/Clean up $ 200.00
July 19th Gentleman Jim Country DJ
150 @$5 Tickets $ 750.00 DJ/Dance Fees $ 300.00
150 @$1.25 Bar $ 187.50 Labor/Clean up $ 200.00
July 25th Sammy Jensen Orchestra
165 @$7 Tickets $ 1,155.00 Band Fee $ 800.00
165 @$1.25 Bar $ 206.25 Labor/Clean up $ 200.00
July 26th Gentleman Jim Country DJ
150 @$5 Tickets $ 750.00 DJ/Dance Fees $ 300.00
150 @$1.25 Bar $ 187.50 Labor/Clean up $ 200.00
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Revenue from Events $'; 7,436.25 Totai Cost'Events :: $;4,520:U0':
Profit from Events $ 2,916.25
O�eratina Expenses:
Liquor Insurance $ 240.67
Utilities $ 1,700.00
Wor{<ers Comp $ 293.00
Cost of Bar (30%) $ 399.38
Sales Tax (6.5%) $ 483.36
Net Profit (loss) $ (200.15)
Prepared by City of Mounds View 5/22/96 Page 1
Actual Receipts for May 16, 1996
Dick Macko Orchestra
199 @ $5.50 tickets $ 1,094.50
Bar Revenue - 280 $ 355.00
Total Reciepts $ 1,449.50
Actual Costs for May 16, 1996
Band Fee $ 400.00
Dance Instructor $ 50.00
Labor $ 200.00
Sales Tax $ 94.22
Cost of Bar Product $ 106.50
Total Event Cost $ 850.72
Profit From Operations: $ 598.78
(Est. Operations Cost for one event)
Insurance Costs $ 34.38
Workers Comp $ 41.86
Utilities $ 242.86
Net Profit (loss) $ 279.69 -
50% Mngment Fee $ 139.85
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City Pcofit (loss) $ :,139:85
Prepared by City of Mounds View 5/22/96 Page 1