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Home My WebLink About9F - Prior Lake Library / Resource Center Lease Agreement MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: DISCUSSION: ,.~ :_. CITY COUNCIL AGENDA REPORT 9L SEPTEMBER 7, 1999 9F CHRIS ESSER, RECREATION SUPERVISOR ~u CONSIDER APPROVAL OF RESOLUTION 99-~ AUTHORIZING THE MAYOR AND CITY MANAGER TO ENTER INTO A LEASE AGREEMENT FOR OPERATION OF THE LIBRARYIRESOURCE CENTER COFFEE SHOP History The plans for the construction of the new Library/Resource Center include a 480 square foot space designated as a coffee shop. The intention has been that the coffee shop be run by an independent vendor familiar with such sales who would lease the space from the City. Current Circumstances On July 28, 1999 a Request for Proposal (attachment A) for the operation of the Library/Resource Center Coffee Shop was advertised with a deadline for submittal of August 13, 1999. Fifteen interested parties were mailed requests for proposals and four vendors responded (attachment B). On August 25, 1999 a committee comprised of representatives from the City and the County Library System interviewed the four vendors. The interview committee recommends that the City enter into a lease agreement with David and Wendy Bergeron and Mickie Fisher to operate the coffee shop in the new Library/Resource Center. Mr. Bergeron is a successful local businessman who has experience in the food retail business. His associate, Ms. Mickie Fisher has retail management experience and experience operating similar retail food and beverage ventures. Mr. Bergeron's proposal is the most thorough received including a market analysis and specific design for the proposed facility. The menu (attached) includes hot and cold beverages, snacks, and a limited food menu. The Issues The proposed vendor will be responsible for providing all of the equipment needed for the operation, as well as, cabinets, counters, and furnishings. Mr. Bergeron has assured us that all equipment and furnishings will be new. All furnishings, equipment and signage will 162Qq,~~k'~Fl'lditF.go~~5'dsMinnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER ALTERNATIVES: RECOMMENDED MOTION REVIEWED BY: .: require City and Architectural approval and must comply with Minnesota Health Department regulations. The vendor is also required to supply their own staff and be open for operation during regular facility hours and use. The lease will be paid to the City ona monthly basis, with an initial contract ofthree years. The monthly leas~ate for ' ~"':" the first year is $900.00, for the second year $950.00, ~dthe thircr-' year $1,000.00. This amounts to $22.50 per sq. ft. a year assuming a 480 sq. ft. facility. The annual increase is 5.5% and 5.3% respectively. A copy of the lease agreement is attached for Council review. The city attorney's office has reviewed the lease agreement and the proposed vendors will be signing the lease on Tuesday, September 7th. Conclusion If all goes well we would plan on the coffee shop opening for business in October, around the time of the Library/Resource Center grand openmg. 1. Approve Resolution 99-XX authorizing the Mayor and City Manager to execute a lease agreement for the operation of the coffee shop at the Library/Resource Center with David and Wendy Bergeron and Mickie Fisher. 2. Table this Agenda item for a specific reason. 3. Deny this Agenda item for a specific reason. Motion and second to approve Resolution 99-XX authorizing the Mayor and City Manager to enter into a lease agreement for the operation of the coffee shop at the Library/Resource Center with David and Wendy Bergeron and Mickie Fisher. r of Parks and Recreation K:\PAUL\AGDEN.REP\COFFESHP.DOCBret Woodson MOTION BY: WHEREAS, WHEREAS, WHEREAS, WHEREAS, WHEREAS, WHEREAS, -~~ ";_. RESOLUTION 99-XX RESOLUTION AUTHORIZING THE LEASE AGREEMENT FOR OPERATION OF THE LIBRARY/RESOURCE CENTER COFFEE SHOP SECOND BY: On February 25, 1997 the citizens of Prior Lake passed a referendum which included a Library/Resource Center; and, the plans and specifications for the Library/Resource Center approved by the City Council included a coffee shop; and, staff has prepared, distributed and solicited a Request for Proposal to proceed with the selection of a vendor to operate the coffee shop space located in the new Library/Resource Center; and, sent out 15 Request For Proposals and 4 vendors responded, and, rtj a proposal was submitted by David and Wendy Bergeron and Micki , ry' which was in full conformance with the Request for Proposal; and, \_. the interview committee recommends to the City Council, that David and Wendy Bergeron and Mickie Fisher be selected as the vendors to operate the Library/Resource Center Coffee Shop; and, NOW THEREFORE, BE IT / BY THE CITY COUNCIL OF PRIOR LAKE, hereby authorizes the Mayor and City Manager to e ter into lease a ment with David and Wendy Bergeron and Mickie Fisher subject to review and the approval of the . e fl e operation of the coffee shop at the Library/Resource Center with a start date of October 1, 1999 and completion date of September 30, 2002; and, FURTHER, The monthly rate be as follows: October 1,1999 - September 30,2000 - $900 per month October 1, 2000 - September 30, 2001 - $950 per month October 1,2001 - September 30, 2002 - $1,000 per month Passed and adopted this 7th day of September, 1999. YES NO Mader Mader Kedrowski Kedrowski Schenck Schenck Petersen Petersen Wuellner Wuellner {Seal} City Manager , City of PriQf Lake coJ~P.6bEagle Creek Ave. S.E" Prior Lake, Minnesota 0531Z:1714 / Ph, (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER ATTACHMENT A ~~ -:-- REQUEST FOR PROPOSALS CITY OF PRIOR LAKE COFFEE SHOP OPERATION DESCRIPTION The City of Prior Lake is currently building a 20,000 sq. ft. Library/Resource Center in Downtown Prior Lake. Included within this new facility is approximately 480 sq. ft. which has been designed to include a coffee shop/lounge area. The City is looking for interested parties that may want to operate this coffee service. Presently, there are no other coffee shops in Downtown Prior Lake. CONDITIONS Hours of Ooeration . The hours of operation for the Library are 10:00 a.m. - 8:00 p.m. Monday - Thursday, 10:00 a.m. - 5:00 p.m. Friday, 10:00 a.m. to 4:00 p.m. Saturday, and 1 :00 to 4:00 p.m. Sunday. This is a year-round operation. . The Resource Center is the home of the Prior Lake Dance Program. The Dance program runs from early September to early May. The hours of operation are typically 2:30 p.m. to 8:30 p.m., Monday through Friday, and 9:00 a.m. to 1 :00 p.m. on Saturdays. . The Resource Center will also be used for a variety of community events and recreation programs during the non-dance program hours. . There will be approximately 200-300 people using the Library/Resource Center on a daily basis. REQUIREMENTS AND EXPECT A TIONS Space Requirements . The operator will lease the space from the City of Prior Lake on a monthly basis. . The operator will provide the furnishings including tables and chairs, counters, service areas, sink, coffee machines, display cases, etc.. The furnishings provided by the operator will be new. . All furnishings will comply with State of Minnesota Health Department regulations. . All equipment, furnishings, and signage will require City and Architectural approval for style, color, and design. . The operator will maintain and clean the coffee shop area on a daily basis. The operator is responsible for rubbish collection and deposit into proper building receptacles. Operation . The operator will be expected to operate the coffee shop during the hours of operation as listed above, however, there may be the opportunity to operate longer should there be a need. 16200 ~~~f~.\i\W:; S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER , IIiI tillRi~:':" : :. ~ '......:d.",'....J"""...:.. ,.:,~~.,'~,l;~" ,.!;i . T', :,.....;I~.. fa . The operator wilL comply with all food and beverage service in accordance with ~tate of Minnesota Health Department regulations. . The operator will have the option of providing refreshments and beverages, such as large urns of coffee, for meetings and special events. . The operator will pay for telephone service. . The operator will provide any measures necessary to secure their appliances and space (i.e. locks, gates, etc.) . The operator will work in harmony with the City staff assigned to oversee the facility. ,,~~C:;O- CITY PARTICIPATION . The City will provide all utilities (gas, water, sewer, electricity). . The City will provide rubbish removal. . The City will provide floor and window cleaning of the customer area. . The City will provide and collect the revenues from vending machines located adjacent to the space. . The City will provide electrical outlets and rough-in plumbing. APPLICATION PROCESS To be considered, all applications must include: . Completed Application Form. . Business Resume. . Business Plan/Proposal. . All materials must be submitted to the Prior Lake Parks and Recreation Department by 4:00 p.m., Friday, August 13, 1999 SELECTION PROCESS . Proposals will be reviewed and finalists will be selected for an interview. . The finalists will present their proposal to an interview panel including Library and City staff. . The interview panel will make a recommendation to the Prior Lake City Council for approval of the lease agreement with the selected operator. Please return all application materials to: Prior Lake Parks and Recreation Department 16200 Eagle Creek A venue Prior Lake, MN 55372 612-447-9822 RFPCOFFE.DOC CITY OF PRIOR LAKE LIBRARY I RESOURCE CENTER APPLICATION FOR OPERATION OF COFFEE SHOP ,~ ;;;:: Applicant information Name: Address: Telephone No.: Work: Home: BUSINESS EXPERIENCE REFERENCES Name: Address: Telephone No.: Name: Address: Telephone No.: Please attach resume and business Plan.. COFFESHP.DOC ,,"ot' ,__ ~', ,.".. ATTACHMENT B DAVE BERGERON 15291_EDGEWATER CIRCLE PRIO~ LAKE MN 55372 720-3455 PARTNER - BRIAN NASI 440-6274 SHARON MEIER 3115 202ND COURT EAST PRIORLAKE MN 55372 ' .~~ DEBORAH ROSS 3924 PERSHING STREET SW PRIOR LAKE MN 55372 GINA'S JAVA ATTN: GINA 6001 EGAN DRIVE, SUITE #150 SAVAGE MN 55378 TRACICUOVER 3993 HIDDEN POND TRAIL PRIOR LAKE MN 55372 PAUL HURLEY 14699 COACHMAN CT PRIOR LAKE MN 55372 DAVID JASPER 4677 OAKWOOD CIRCLE PRIOR LAKE MN 55372 CAROL STAMSON 16095 WREN COURT PRIOR LAKE MN 55372 KRIS MURRAY 16741 SIMPKINS AVNEUE SW PRIOR LAKE MN 55372 MARLEEN STROMME 2225 LASALLE #301 MINNEAPOLIS MN 55403 ROCHELLE SEEWALD 16845 LYONS AVENUE PRIOR LAKE MN 55372 CHRISTINE HORTON 16274 PARKVIEW DRIVE SE PRIOR LAKE MN 55372 PAT HELGET 6266 WHITE DRIVE PRIOR LAKE MN 55372 TAMMY HAUGEN 3649 WILLOW BEACH TRAIL SW PRIOR LAKE MN 55372 BECKY LARSON 9220 153RD STREET WEST PRIOR LAKE MN 55372 KAYLYN'S ATTN: PENNYBORCHART 16760 TORONTO AVENUE SE PRIOR LAKE MN 55372 CSHOPAPP.DOC Ji Co e ~~, PROPOSAL AND BUSINESS PLAN A Unique Opportunity For The Citizens Of Prior Lake Presented August 13, 1999 Mickie Fisher, David and Wendy Bergeron 612-226-2360 612-447-1400 . r' Ail., &i.irl~jili6l1sf:n..:,Ili'ci.'i;,\:";f "";. ., "<< ....\J.'~Mi:;..'H!> 1,-.:if.h."..:it~~ .~~ :r", ".""';~~""'Ii. ,it ." ,f PROPOSAL AND BUSINESS PLAN" ~-;?- ~... A UNIQUE OPPORTUNITY FOR THE CITIZENS OF PRIOR LAKE EXECUTIVE SUMMARY The cultural and civic vitality of a city can often be measured by its commitment to providing Citizens the opportunity for civic interaction and learning. With the imminent opening of the 1l:ew Prior Lake Library, the citizens of Prior Lake, City and County Officials, the Scott County Library Board and the Library Director have shown a commitment to placing the Prior Lake Library at the forefront of twentieth century library management and operation. As we enter the twenty-first century, technological changes in the way we access and use information have worked to redefine the expectations of a typical library patron. Today's library user wants and expects a more robust library experience, from Internet access to more comfortable seating for browsing. In addition, the development of the big-box bookstore and affiliated coffee shop has raised the expectations of citizens with regard to the amenij;ies expected of their public library. By recognizing the evolving technological and social expectations of library patrons, upgrading the library infrastructure, and plaruiing for the location of a coffee/snack shop as a part of the totalllbrary experience, civic leaders have taken a great step toward solidifying the cultural and civic identity of Prior Lake and meeting the long term expectations of city residents. We believe this proposal is an exciting example of public/private business cooperation, which can be a model for other communities, and we see this venture as an opportunity to take a significant step toward the revitalization of the downtown business area. 2 .".. -;"-- ~-~ VISION STATEMENT: MORE THAN JUST A COFFEE SHOP In recognition of the commitment of the numerous stakeholders involved in the establishment of the new Prior Lake Library, the owners of Jitters Cafe are committed to making Jitters the premier coffee experience in the City and helping establish the, Prior Lake Library as a centerpiece of a revitalized downtown experience. At Jitters, our goal is to be more than just coffee and croissants, we want to be known for our quality and consistency, and helping build the Prior Lake' community. In addition, by working in c19se cooperation with the Library and Dance Studio, and through active participation in community events, we hope to build co~unity pride and contribute to the development?f downtown Prior Lake as a destination for its citizens. - .' - Recent surveys by consultants retained by City officials and the Economic Development Authority evidence a strong desire by the citizens for a commercial district of small shops with character. We are dedicated to providing precisely that experience. 3 ., ., 'I!I' "'~,,,.,',',' ._,_. ~ !Sf ~:"~~;i;'~,J1~m:, '1'"~",,.' .'.. . :',."'iiI,~II~WJ!l,'r,,\t~ Q -~~ ":-_. - STRATEGY: QUALITY AND COMMUNITY . The finest Emopean Roasterie coffee beans will be used to make our coffee. Along with a variety of coffee drinks, we will offer gourmet drinks, including Italian ices, coolers and juices. (Of course all Pepsi Products will be available too!!) .Panini bakery products and sandwiches, made daily and recognized as the finest in the marketplace, will be available. . We will be 'using ~ espresso coffee machines . market leader in the industry. . Espresso Services Incorporated, the industry leader since 1912 in the technology, art and business of specialty coffeeyis our primary consultant and supplier of coffee and related drink products. . Design and Layout Services, a nationally recogniz~d cafe design studio with clients such as Caribou Coffee, has been selected to provide consulting services including: Floor Plan Health Code Compliance Equipment and Cabin~try Specifications Plumbing and Electrical Compliance Business Process Engineering 4 . We are committed to delivering superior customer.se@ce~ oUr 20+years of management and operational experience in the restaurant and retail sales industry give us the ability to understand the needs of our customers. . We intend to actively marketorir Cafe in the community through the use of direct mail technology, local information outlets such as the Prior ~ake American, arid sponsorship of local events. ./ " 5 ,if' -V}~.. ~_~. :... ,~~ . - ;;:. , . MARKET POTENTIAL, ECONOMICS AND DESIGN STRATEGY: ,~~=.:;O- ":-_. ~.. The most recent projections of growth in the specialty coffee retail industry suggest a 50 % increa~e in the number of stores by the year 2015. While this signifies the market potential for the retail coffee industry, it also suggests that competition will exist. We recognize that, while the proposed site poses a positive opportunity, it takes time to develop a strong local reputation and regular clientele. In addition, we acknowledge that the . redevelopment of the downtown core is an ongoing process. We intend to dedicate our time and energy toward establishing our Cafe as a successful and distinguished cornerstone of the Prior Lake business community. In addition, we have the financial resources to commit to making this a successful endeavor for Jitters and the community at large. We intend to serve not only library and dance studio' patrons with the finest coffee products and bakery goods available, but we hope""'to reach out to the business community and other visitors by fostering an atmosphere that encourage that people to view our caf~ 9;s a gathering place to socialize as well as learn. 6 In addition to our coffee, our food selection will be hand made and baked daily at a local facility using state of the art equipment to assur~ that only the freshest pastries/bread are available. Along With fresh- baked breads, only the best meats, cheeses and vegetables will be used in our sandwiches. (See enclosed sample menu.) Our business plan calls for hours of operation to meet, and most likely exceed, the operational hours of the Library and Dance Program. As stated in the RFP, 200-300 visits per day by library patrons and dance studio participants are anticipated. We think these estimates are conservative. We also anticipate unique events such as Victorian Tea Parties, and catering to the users of the Conference Rooms, etc. ~,~ Flexible hours of operation would be implemented to respond to unique community events or recreation programs~ Conservatively, we project a total facility traffic count of approximately 500 visits per day.. Projecting a cO':lservative 20 to 250/0 penetration rate would generate 125 sales per day (from walk by traffic alone). /". 7 .- ~ ""!" ].';f,.:~~~;":r:.:'!1lr!,!rr~;~:~":- <: .. ~ 'l~::"':-"'-.~~'~1"'''',I'''''-~rl'11Bl m~" .."..tJ:~!rl,=,""J 'iI!' 1t '1( -~ -"- - DESIGN AND FURNISHINGS Design and Layout, our architectural consultant has developed a unique style and design to take maximum advantage of the space available while creating a warm and inviting atmosphere consistent with the look and feel of the Library and Resource Center. Similarly, all furnishings would be consistent with the look and feel of the Library and Resource Center. Through the design and layout process, and based upon the advice of our consultant in the area of business process, we are recommending a modification of the physical layout of the Cafe. (See Attachment) We are suggesting the location of an access door to the south of the coffee preparation area into the main hallway. This will allow for greater security of the production area, increase counter space and product visibility and operational efficiengr. To comply with Health Department Regulations we do need to install a three-compartment sink and a floor drain. We would bear any costs associated with any modifications resulting from these design improvements. It is also our understanding that there is a tentative understanding between the City and Pepsico related to the location of soft drink vending machines in the Cafe area. Based upon functional design concerns referenced earlier, we would propose that the vending machines be replaced with our agreement to carry Pepsi soft drink products at our location and to make them available at a reasonable price consistent with the marketplace. We would be willing to pay an additional amount of rent in lieu of. Overall, our intent is to establish a Cafe that projects a positive and professional and friendly atmosphere that flows consistently into the mood and appearance or the rest of the facility and community. 8 SUMMARY ~~ ~-~ We believe the market potential is strong. With a movement away from the consumption of alcohol asa part of social interaction, the coffee shop as an avenue for social interaction has been experiencing a renaissance. Joining this trend to the growing movement toward expansion of the learning and socialization experiences available at our local library and resource center only strengthens the opportunity for success in this location. Clearly, the co-location of a cafe with the Prior Lake Library and Resource Center poses the potential for synergistic growth opportunities. Further, the site is a great opportunity to initiate an exciting beginning to the revitalization of downtown Prior Lake. We have extensive experience in retail sales and a clear recognition of the larger role the Library, Resource Center and Cafe can play in the community~ We are committed to working toward helping build that community. Finally, we are dedicated to using only the finest equipment and products in the preparation of our menu, and believe this places Jitters at the top of the list when considering the best opportunity for the citizens of Prior Lake. We look forWard to working with you and serving the community of Prior Lakel '. ' 9 ,t: ~j[';(~ . ,"""'_,./ot,:"'-"'" "-';., )!"'~d~. ~: . I I--f c> ........ Specialty Drinks LATTES EXpRESSO cAppucciNO REqulAR & DECAf. Sips ITAliAN SodAS . HOT CHOCOlATE ICEd CHAI/HoT CHAI FRESH BREWEd HOT CHAi ICE TEA FiNE HOT TEAS (12) STEAMERS Pop & JUiCE PEpsi PRoduCTS Food BAqEl SANdwicHES wi CREAM CHEESE (12) WRApS SouPS PEANUT BUTTER & JElLiE CHips FRUiTS a e Chillie Specialty Drinks FROZEN BLENdEd LAnE ICEd COffEE MacHo COffEE COOLERS SMOOTHIEs/GRANiTA (fRESH, NATURAL, fROM SCRATCH) Pastry Treats CHOCOlATES SCONES MuffiNS CookiES Biscorri CI-IOCOlATE COVEREd EXpRESSO BEANS I Ice Cream Prices are comparable to area coffee shops I 'f : .j .ij. Iii J "1 :::-_. J itters,Cafe Prior Lake Public Library !: The succt),ssfulcoffee bar concept is typically more complicated than is often thought. Ttle menu, equipment, health codes, and customers each playa significant role in the l?'" " . " space requirements. TheJitters Cafe project was no exception. The following summary will help describe the planning of this space. ,9ur client's goal was to provide a great selection of coffee, espresso, blended smoothie drinks, tea, bottled juices, Pepsi fountain products, baked goods, and gourmet sandwiches and soups. This menu, based on our experience of hundreds of coffee , projects, is vital to the success of this concept. With the determined menu, the following equipment will be required; refrigeration, ',' freezer space, an ice machine, a bakery and deli display case, a microwav,~, a~$.p,da" dispenser unit, under counter refrigeration, storage shelving, water filtra~oJl;,3 J compartment sink for ware-washing, hand-washing sink, espressoequiprrient, grJnd~ts~ coffee brewers, and high speed blenders. These equipment items represertt ~~J>~r~'. minimums required for a menu of this type. In fact, the majority of this equipm~ntwould be required with even a very basic coffee menu. . , Now with a complete equipment list, the floor plan could be designed. The challenge was to fit all of the equipment, the required aisle spaces and the counters into a layout that would facilitate proper workflow as well as customer flow. After nearly 15 revisions, we d~ermined that the optimum operation that truly works for the operator, the library staff and the customers would require taking all of the space available and even inserting a door into the back room. The end result is a. design that will significantly help the success of this venture. Design & Layout Services * The final finishes, colors, laminates, chair, table and cabinetry design will be sel,ected according to the architect's specifications. ., 1685 Concordia Street Wayzata. MN 55391 fax 612.471.8797 tel 612.471.7170 800.471.8448 G-~ @) www.designlayout.com ;:. ",~,L ,'~2;~~m~:_,,: . --.. -... ..... ".~ "j' :7 . L:'''''c, i EQUIPMENT LEGEND 1 Mop Sink - Janitor's Closet 2 Ice Machine 3 Water Filter ~ 4 Single Door Freezer 5 Wan SheMng 6 3 Compartment Sink 6A Pre-rinse with Add-On Faucet 7 Trash Receptacle 8,9 5- Tier Shelving 10 Single Door Refrigeramr 11 Smoothie Counter 12 Commercial Blender 13 Toppingllngredient Bin 14 Undercounter Refrigerator 15 Cup Dispenser 16 Soda Disp. Unit with Ice Bin 17 Dipperwell 18 Knock Box 19 Espresso Dosing Grinder 20 Espresso Machine 21 Undercounter Refrigerator 22 Cash Register 23 Front Counter wI Retail Display 24 Dual-zone Display Case 25 Back Counter 26 Soup Cooker 27 Microwave 28 Air Pots 29 Bulk Coffee Grinder 30 Coffee Brewer 31 Hand Sink 32 Condiment Counter 33-36 Seating ~ '-(2)~ ~. ~ '-I~I \ · @ -:0 (0 ~ ~~ ~ =-f~ ~ I ~~~- (17 18 ~ ~@ f19\ 21.... \:::J /~ 20 8 ~ ~~ ~ 31 ~@ 28 ~@ ~DX@ (( ~ -Z@ ~~ . 0) .. 15 @ @~ ff/ j/ " " @ 15 SEATS ~N6> ~<Yo DD~DD ,/ @ \ . h @ O~ ~ '-- o D o o D D~ [ LJ \ ~ ~ ~ JITTER'S CAFE VESTIBULE 1 Prior Lake Public Library ~ 16210 Eagle Creek Ave SE LJ ~ FLOOR PLAN 1/4" Scale August 13, 1999 ~ City of Prior Lake, Minnesota LEASE AGREEMENT ,.'~, THIS LEASE AGREEMENT is made and entered into this day of : 1999, by and between the CITY OF PRIOR LAKE, MINNESOTA, a Minnesota municipal corporation (hereinafter referred to as "CITY", and DAVID BERGERON, WENDY BERGERON and MICKIE FISHER, (hereinafter collectively referred to as the "LESSEE"). In consideration of the mutual covenants and promises hereinafter set forth, the sufficiency of which are not disputed, the CITY and LESSEE do hereby agree as follows: 1. DESCRIPTION OF THE PREMISES. CITY does hereby lease to LESSEE and LESSEE does hereby lease and take from CITY certain premises consisting of 480 square feet (the specific location of the premises is as outlined and delineated on the attached Exhibit "A") (hereinafter referred to as "Leased Premises"), and located in the Prior Lake Library/Resource Center building at 16210 Eagle Creek Avenue, Prior Lake, Minnesota 55372 (hereinafter "Building"). 2. TERM. This Lease Agreement shall be for a term of three (3) years commencing on the 1 st day of October, 1999, and terminating on the 30th day of September, 2002. 3. USE OF PREMISES. It is agreed that the Leased Premises may be used by the LESSEE for retail food and beverage space, with the exception of vending machines, subject to all local, state and federal laws and regulations regarding the use of the Leased Premises. However, any other use shall require the written consent of the CITY, which shall not be unreasonably withheld. 4. RESPONSIBILITY OF CITY REGARDING LEASED PREMISES. The LESSEE shali not be required to provide any service or do any act in connection with the Leased Premises not specifically set forth in this Lease Agreement. As hereinafter further described in this Lease Agreement, the CITY is responsible for and shall pay all utility charges, property insurance premiums on the Building exclusive of furnishings for the Leased Premises, all repairs, maintenance and services unless excepted therefrom in this Lease Agreement. 5. RENT AND SECURITY DEPOSIT. LESSEE shall pay monthly rent for the Leased Premises for the term of this Lease Agreement, as set forth in City Council Resolution 99-_ attached hereto as Exhibit "B". Rent payments shall be made on a monthly basis and paid by the 1 Oth day of the given month in which payment is due. A late fee of $5.00 per day shall be assessed for payments received after the 10th day of the month. All rental payments required hereunder shall be paid to the CITY at 16200 Eagle Creek Ave. S.E., Prior Lake, MN 55372, or such other place as determined by the CITY. The first month's rent shall be paid at the time the Lease Agreement is signed by both parties. LESSEE shall pay to CITY at the time the Lease Agreement is signed by both parties an amount equal to one and one-half times (1112) the initial rent payment as security deposit for the Leased Premises. The security deposit may be used by the CITY to restore the Leased Premises to its original condition, normal wear and tear excepted, upon termination or expiration of the Lease Agreement. If the security deposit is insufficient to cover all costs of such repair, LESSEE (not business) shall be personally liable for the balance of the cost of repairs. 6. OTHER COSTS. The LESSEE shall pay the following costs during the full term of this Lease Agreement: a. Any and all telephone bills related to the Leased Premises; - '" .' -:'.;'!l!'<tl:". ,'\Ii, .. _~,!lfill!'lll!!!!,;If,'BlI!I__ !If . ,.."..;:.,- , ,I 4 l!r to,;, 'II Coffee Shop Lease Library/Resource Center September _, 1999 ., .~-? b. Any measures to secure appliances and equipment located' and sitaated onJhe iET- Leased Premises. c. Any and all insurance which LESSEE desires to insure its own property which is located and situated on the Leased Premises. CITY shall not be liable to LESSEE for any loss or damage of any kind whatsoever caused or sustained by reason of failure of any mechanical system within the Building including, but not limited to the heating or ventilating and air conditioning system servicing the Leased Premises or because of inability to obtain energy or utilities for any reason beyond CITY's control. 7. INSURANCE. The LESSEE shall maintain in full force and effect during the term hereof, a policy of public liability insurance in a form acceptable to the City Attorney. The minimum limits of liability of such insurance shall be $1,000,000 for injury or death to anyone person, $1,000,000 for injury or death to more than one person and $500,000.00 for property damage. LESSEE shall be responsible for the payment of any and all other insurance which it desires, and/or a public liability policy which insures LESSEE above the limits as required hereunder of the CITY. The CITY shall be named as an additional insured in the public liability policy. Said policy shall contain a provision that the insurance cannot be terminated without 60 days written notice by the insurance company to the CITY. LESSEE shall provide CITY with a Certificate of Insurance which conforms with the provisions herein, before LESSEE may operate at the Leased Premises. The CITY shall carry and cause to be in full force and effect a fire and extended coverage insurance policy on the Building containing the Leased Premises, but not the contents owned, leased to, or otherwise in possession of the LESSEE. Said fire and extended coverage insurance policy on the Building covers, without any rating surcharge, a wide range of uses. The uses set forth in Paragraph 3 of this Lease Agreement falls within such wide range of uses. In the event, however, the LESSEE changes the use of the Leased Premises or contents kept in the Leased Premises, or refuses to follow directions from the Fire Inspection Bureau, or general housekeeping causing CITY's fire and extended coverage insurance premiums for the Building to increase, then the LESSEE agrees to pay to CITY any increase in CITY's premium. 8. LIABILITY OF CITY AND LESSEE. The CITY, its employees, agents and representatives, shall not be liable to LESSEE or LESSEE's agents, servants, employees, customers, or invitees for any damage to person or property arising out of LESSEE's use of the Leased Premises; including, but not limited to any act, omission or negligence of LESSEE. LESSEE further agrees to hold the CITY harmless from any and all such claims for damages including legal fees. CITY will indemnify and hold LESSEE harmless from any damages arising out of the negligence of the CITY and its agents, servants, and employees from all claims for such damage. 9. MAINTENANCE. The LESSEE shall be wholly responsible for the maintenance and repair of the interior of the Leased Premises and will keep the Leased Premises in as good a condition as when turned over to LESSEE, reasonable wear and tear excepted. The LESSEE agrees to keep the Leased Premises in a clean, orderly and sanitary condition and will neither do nor permit to be done therein anything which is in violation of insurance policies on the Building or that is contrary to any State or local law, ordinance or regulator thereof. The LESSEE will neither commit nor suffer waste to the Building or to the Leased Premises. 2 CSLEASE.DOC Coffee Shop Lease Library/Resource Center September _' 1999 ~-?- '~'_. ~.. The maintenance and repair obligations of the LESSEE specifically extend to all interior walls and to all doors and electrical fixtures that serve the Leased Premises, except as these obligations may be covered by manufacturer or contractor warranties. The CITY agrees to cooperate with and reasonably assist LESSEE in pursuing such warranties relating to the Leased Premises which are still in effect. The CITY shall, at its own expense, keep in good order, safe condition and repair, the structural parts of the Building (including, but not limited to, roof, exterior walls, foundation and concrete floor) in which the Leased Premises are located, except where repairs to the structural parts are required due to the fault or negligence of the LESSEE, its employees or invitees, in which case the LESSEE shall be responsible for reimbursing the CITY for the costs of such repairs. 10. APPEARANCE AND ACCESS. CITY, to the extent obligated herein, and LESSEE mutually agree to keep the grounds, Building, and the Leased Premises in a condition of good repair and appearance as their respective responsibilities and rights require. LESSEE agrees to keep all of its trash containers, refuse and waste within the Leased Premises and agrees not to litter any of the grounds or entries. LESSEE acknowledges that, upon occupancy of Leased Premises, LESSEE will cause the Leased Premises to be inspected in order to ascertain the condition thereof, that any objections thereto not delivered in writing to the CITY within ten (10) days after occupancy shall be deemed waived; and that no representations, either expressed or implied, have been made regarding the quality or condition of the Leased Premises except as specifically stated below: a. The Leased Premises, at the time of initial occupancy shall comply with applicable building codes; b. The Leased Premises will be completed substantially as agreed to in this Lease Agreement; and c. The mechanical system service to the Leased Premises will have been checked and found to be operating satisfactorily. 11. CONDEMNATION. If substantially all of the Leased Premises shall be taken under the power of eminent domain, then the term of this Lease Agreement shall cease as of the day possession shall be taken and gross rent shall be paid up to that date with a proportionate refund by CITY of such rent as may have been paid in advance. If more than twenty percent (20%) of the floor space in the Building shall be taken under the power of eminent domain, LESSEE shall have the right to terminate this Lease Agreement as of the day possession shall be taken by notice to CITY given within ten (10) days after possession is taken. If more than one-third (1/3) of the parking area in the Building in which the Leased Premises is situated is taken under the power of eminent domain, LESSEE shall have the right to terminate this Lease Agreement as of the day possession shall be taken, unless a reasonably equivalent substitute parking area is provided. LESSEE shall be allowed a reasonable time not to exceed sixty (60) days after any such termination to vacate the remainder of the Leased Premises and rent shall be paid up to the day possession be taken or the LESSEE vacates the remainder of the Leased Premises, whichever :3 CSLEASE.DOC .~;,~,j;;; ..... ,.:::;:;;", ~0Tr" """f .... H _ ,_. ."",,,> .~....~...... ... ... Coffee Shop Lease Library/Resource Center September _, 1999 . ,~ is later. .If this Lease Agreement is not canceled pursuant to this paragraph 11, the etTY shalf at - = its expense make the necessary repairs to that part of the Leased Premises not affected by such condemnation as rapidly as reasonably possible to restore the Leased Premises to as near the condition which existed immediately prior to the taking as is reasonably possible. In the event that any portion of the Building in which the Leased Premises are located or the Leased Premises themselves are condemned, the CITY shall not be responsible to LESSEE for any costs or damages related to LESSEE's use of Leased Premises or LESSEE's business. 12. ASSIGNMENT. The LESSEE will not assign this Lease Agreement, and will not sublet any part of said Leased Premises without the prior written consent of the CITY. Said consent will not be unreasonably withheld. Any such assignment or subletting will not release the LESSEE from its responsibilities under this Lease Agreement, unless expressly agreed to in writing by the CITY. 13. BREACH OF LESSEE. If the LESSEE shall default hereunder and such default shall continue for a period of fifteen (15) days after written notice from the CITY of such default, then it shall be lawful for the CITY to terminate this Lease Agreement and enter into and take possession of the Leased Premises and remove all persons and their property therefrom; provided that if the default be of such a nature that it may require more than fifteen (15) days to cure, with the written permission of the CITY. Said time to cure default may be extended for such period of time as specified by CITY's written notice to LESSEE. The LESSEE shall cure any default with due diligence and within the time period provided herein. 14. ALTERATIONS. The LESSEE shall not make any alterations to the Leased Premises without the prior written consent of the CITY. If the LESSEE shall desire to make any such alterations, an accurate description shall first be submitted to and approved by the CITY and shall be done by the LESSEE at its own expense. Approval shall not be unreasonably withheld. LESSEE agrees that all such work shall be done in a good, workmanship-like manner, and in conformance with applicable building codes, that the structural integrity of the Building shall not be impaired, and that no liens shall attach to the Leased Premises by reason thereof. The LESSEE shall and will in each instance save the CITY and said Leased Premises forever harmless and free of all costs, damages, losses and liabilities of every kind and character which may be claimed, asserted or charged, including liability to adjacent owners based upon the acts or negligence of said LESSEE or their agents, contractors or employees, and will preserve and hold the CITY and said Leased Premises forever free and clear from liens for labor and material furnished. Any such alterations shall become the property of the CITY as soon as they are affixed to the Leased Premises and all right, title and interest therein of the LESSEE shall immediately cease unless otherwise stated in writing. The LESSEE however, shall remain the owner of any installed trade fixture and shall have the right to remove such trade fixture at the expiration or termination of this Lease Agreement, so long as the Leased Premises is restored to its original condition. Any alterations to Leased Premises shall be restored to their original condition at the termination or expiration of this Lease Agreement and subject to the provisions provided in Paragraph 5 herein. 15. SIGNS. The LESSEE shall have the right, at its own risk and expense, to place signs identifying LESSEE's business within the Building in which the Leased Premises is located. CITY reserves the right to determine size and location of all signs. Said signs shall not be erected without the written prior approval of the CITY, which approval the CITY will not unreasonably withhold. LESSEE agrees to maintain the sign(s) in good repair, to remove such sign(s) at the end of the 4 CSLEASE.DOC Coffee Shop Lease Library/Resource Center September _, 1999 ...... - ".. ~ term or.any extended term. The CITY reserves the right to remove all unapproved-signs at..!tl~ z;; expense of LESSEE. 16. RULES AND REGULATIONS. The LESSEE shall perform, observe and comply with all reasonable Building rules and regulations of the CITY with respect to the safety, care and cleanliness of the Leased Premises, and the preservation of good order thereon, and, upon written notice thereof to LESSEE, LESSEE shall perform, observe and comply with any changes, amendments or additions thereof as from time to time shall be established and deemed advisable by the CITY. Said rules and regulations shall be in writing. 17. ENTRY. During the ninety (90) days prior to the expiration of the term, the CITY or its agents may exhibit the Leased Premises to prospective Lessees. 18. NOTICES. All notices, consents, demands and requests which may be or are required to be given by either party of the other, shall be in writing and sent by United States registered or certified mail, with return receipt requested, addressed to the LESSEE at , and to the CITY at 16200 Eagle Creek Avenue S.E., Prior Lake, MN 55372, or to such other address as CITY may direct, in writing, in the future, with a copy to Suesan Lea Pace, City Attorney, 600 Pillsbury Center South, 220 South Sixth Street, Minneapolis, MN 55402-4501. The date which said registered or certified mail is mailed by the CITY shall be conclusively deemed to be the date on which a notice, consent, demand or request is given or made. The above address of a party may be changed at any time, or from time to time, by notice given by said party to the other party in the manner herein above provided. 19. CLAIMS. The LESSEE will make no claim against the CITY for any loss of or damage to property and/or the Leased Premises caused by theft, burglary, water, gas, electricity or other means, except as provided for in Paragraph 6 of this Lease Agreement. 20. FIRE REPAIR. In the event of damage to the Leased Premises by fire, the elements or other casualty, the CITY shall repair the damage with reasonable dispatch. If the damage renders the Leased Premises untenantable in whole or in such part that it is impractical to conduct business therein, the rent shall wholly abate until the damage has been repaired. If the damage renders the Leased Premises untenantable in part but LESSEE continues to occupy them in part, the rent shall be reduced in the proportion that the unoccupied portion of the Leased Premises bears to the occupied portion of the Leased Premises, until the damage has been repaired. The CITY shall not be responsible for any loss of LESSEE's fixtures, property or for any lost profit. If the damage is not repaired by CITY within a reasonable time, or in any event, within one hundred twenty (120) days, LESSEE shall thereupon have the right to terminate the Lease Agreement by giving the CITY written notice of such termination. 21. QUIET ENJOYMENT. LESSEE, upon payment of the rent herein reserved and upon performance of all of the terms, covenants and conditions of this Lease Agreement by it to be kept and performed, shall at all times during the term hereof or during any extension or renewal hereof, peaceably and quietly enjoy the Leased Premises without any disturbance from CITY except that LESSEE understands and agrees the use of the Building for the public purpose for 5 CSLEASE.DOC ',I",' ;". ......._~~;;;i~,:: JI' ':';: '.". n1Fd!7,.'1;r.'~~'IIIIf~r'!'~, l' '': I ,f ,,\:"'c~:~,.- -'I: ":! !! !' II Coffee Shop Lease Library/Resource Center September _, 1999 -c;::;'- whom it was constructed shall not constitute a breach of quiet peace and enjoyment of Leased =. Premises. Upon expiration or sooner termination of the term hereof, LESSEE shall surrender the Leased Premises in good condition and repair, except for reasonable wear and tear. 22. HOLDING OVER. If LESSEE shall hold over the Leased Premises or any part thereof for sixty (60) days after the expiration of the term hereof, such holding over shall be construed only to be a tenancy from month to month subject to all of the covenants, conditions and obligations hereof except that the rent shall be one hundred ten (110%) percent of the amount identified in Paragraph 5 herein and shown in Exhibit "B" plus the increase in operating expenses. Nothing herein shall be construed to give Lessee any rights to hold over and to continue in possession qf the Leased Premises atter the expiration of the sixty (60) day period during which hold over the CITY and LESSEE shall execute a new Lease Agreement. 23. HOURS OF OPERATION OF LEASED PREMISES. LESSEE may only operate or have open for business the Leased Premises at such times and dates that the Library and Resource Center is open to the public, unless agreed to by the CITY in writing. 24. NO VENDING MACHINES. LESSEE shall not install vending machines without the prior written consent of the CITY. 25. INDEPENDENT CONTRACTOR. It is agreed that nothing herein contained is intended or should be construed in any manner as creating or establishing the relationship of co-partners between the parties hereto or as constituting the LESSEE as an agent, representative or employee of the CITY for any purpose or in any manner whatsoever. LESSEE is to be and shall remain an independent contractor with respect to all services performed under this Lease Agreement. LESSEE represents that it has, or will secure at its own expense, all personnel required in performing services under this Lease Agreement. Any and all personnel of LESSEE or other persons while engaged in the performance of any work or services required by LESSEE under this Lease Agreement shall have no contractual relationship with the CITY and shall not be considered employees of the CITY and any and all claims that mayor might arise under the Workers' Compensation Act of the State of Minnesota on behalf of said personnel or other persons while so engaged, and any and all claims whatsoever on behalf of any such person or personnel arising out of employment or alleged employment including without limitation claims of discrimination against the LESSEE, its officers, agents or employees shall in no way be the responsibility of the CITY; and LESSEE shall defend, indemnify and hold the CITY, its officers, agents and employees harmless from any and all such claims regardless of any determination of any pertinent tribunal, agency, board, commission or court. Such personnel or other persons shall not acquire nor be entitled to any compensation, rights or benefits of any kind whatsoever from the CITY, including without limitation, tenure rights, medical and hospital care, sick and vacation leave, Workers' Compensation, Unemployment Compensation, disability, severance pay and PERA. The CITY shall not be bound by and the LESSEE's performance hereunder shall not be conditioned upon any contract between the LESSEE and any other entity or party. 26. NONDISCRIMINATION. In connection with the execution of this Lease Agreement, the LESSEE agrees that it and any of its subcontractors, material suppliers and vendors shall not discriminate against any employee or applicant for employment because of race, creed, age, sex, religion or national origin. The LESSEE will take affirmative actions to insure that applicants are employed, and that employees are treated during employment without regard to race, color, sex, or national CSLEASE.DOC 6 Coffee Shop Lease Library/Resource Center September _' 1999 .,. ~~ origin. Such actions shall include, but not be limited to, the following: employmenr,-upgradirig~ = demotion, transfer, recruitment or recruitment advertising, layoff or termination, rates of payor other forms of compensation, and selections for training, including apprenticeship. Certificate of Compliance for PUblic Contract: If LESSEE has employed more than twenty (20) full-time employees in Minnesota at any time during the previous twelve (12) months, it shall have an affirmative action plan for the employment of minority persons, women, and the disabled that has been approved by the Commissioner of Human Rights. The LESSEE shall submit receipt of a Certificate of Compliance issued by the Commissioner signifying that the LESSEE has an approved Affirmation Action Plan by the State Human Rights Department. Compliance with State and Federal Laws. LESSEE, in connection with the execution of this Lease Agreement, assumes compliance with the statements and conditions in the Equal Employment Opportunity Assurance included in Exhibit "C". 27. ENTIRE AGREEMENT. This Lease Agreement represents the entire and integrated agreement between the parties hereto and supersedes all prior negotiations, representations or agreements, either written or oral. 28. HEADINGS. The headings herein are inserted only for convenience and reference and shall in no way define, limit or describe the intent of this Lease Agreement. 29. GOVERNING LAW I JURISDICTION. State of Minnesota (State) laws govern all questions and interpretations concerning the validity and construction of this Lease Agreement awarded pursuant to these specifications and the legal relations among the parties and performance under it. If any provision of this Lease Agreement is held invalid, illegal or unenforceable, the remaining provisions will not be affected. 30. EXHIBITS. This instrument contains all of the agreements made between the parties and may not be modified orally or in any manner other than by agreement, in writing, signed by all parties to this Lease Agreement. The following Exhibits listed below are made part of this Lease Agreement as if fully set forth herein: Exhibit A - Location map of Leased Premises Exhibit B - Resolution 99-XX Authorizing Lease Agreement and Rental Rate. Exhibit C - Equal Employment Opportunity Assurance 31. OTHER PROVISIONS. The invalidity or unenforceability of any provision hereof shall not affect or impair the validity of any other provision. The covenants and agreements herein contained shall bind and shall inure to the benefit of the CITY and LESSEE, their respective heirs, administrators, legal representatives, successors and assigns. During the term of this Lease Agreement, in the event the LESSEE should pay to the CITY an amount which is less than the amount due at that time, and the CITY receives and deposits such payment, such receipt and deposit shall not be assumed to be payment in full, but rather partial payment toward the LESSEE's account. 7 CSLEASE.DOC _:."~..,,,~. ~; .:.ii.,I..",,,, . 'I!l',,..._w...,...- ,;(,"'L'''''''::l.l,-;"",',:~,,,,,,,,,,,,,,, Coffee Shop Lease Library/Resource Center September _' 1999 -~~;.- .~_. One or more waivers of any covenant, term or condition of this Lease Agreement by the CITY shall not be construed by the LESSEE as a waiver of a subsequent breach of same covenant. term or condition. The failure or delay on the part of the CITY to enforce or exercise at any time any of the provisions, rights or remedies of this Lease Agreement shall in no way be construed to be a waiver thereof nor in any way effect the validity of this Lease Agreement or any part thereof or the right of the CITY to thereafter enforce each and every such provision, right or remedy. 32. SIGNATURES. The signators below warrant that they are duly authorized to enter into this Lease Agreement representing the parties hereto. IN WITNESS WHEREOF, the parties hereto have caused this Lease Agreement to be executed the day and year first above written. LESSOR: City of Prior Lake LESSEE: BY: Frank Boyles, City Manager David Bergeron BY: Wesley M. Mader, Mayor Wendy Bergeron Mickie Fisher 8 CSLEASE.DOC Coffee Shop Lease Library/Resource Center September _, 1999 .~ EXHIBIT "A" (Location Map of Leased Premises) 9 CSLEASE.DOC ,~~. a. .~~.il!i~.liL~~idri.;.;~ ~. ~ a~~~;&.~..ik~ .,tJ.~:-,; ~.l::d] I ,,\.~~~d~:,~~t;. ,i";i. EXHIBIT "B" (Resolution 99-XX Authorizing Lease Agreement and Rental Rates) Coffee Shop Lease Library/Resource Center September _' 1999 .~"'--;~ CSLEASE.DOC 10 .. ~ ~--. RESOLUTION 99-XX RESOLUTION AUTHORIZING THE LEASE AGREEMENT FOR OPERATION OF THE LIBRARYIRESOURCE CENTER COFFEE SHOP MOTION BY: SECOND BY: WHEREAS, On February 25, 1997 the citizens of Prior Lake passed a referendum which included a LibrarylResource Center; and, WHEREAS, the, plans and specifications for the Library/Resource Center approved by the City Council included a coffee shop; and, WHEREAS, staff has prepared, distributed and solicited a Request for Proposal to proceed with the selection of a vendor to operate the coffee shop space located in the new Library/Resource Center; and, WHEREAS, sent out 15 Request For Proposals and 4 vendors responded, and, WHEREAS, a proposal was submitted by David and Wendy Bergeron and Mickie Frye which was in full conformance with the Request for Proposal; and, WHEREAS, the interview committee recommends to the City Council, that David and Wendy Bergeron and Mickie Fisher be selected as the vendors to operate the Library/Resource Center Coffee Shop; and, NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, hereby authorizes the Mayor and City Manager to enter into a lease agreement with David and Wendy Bergeron and Mickie Fisher subject to review and the approval of the city attoumey for the operation of the coffee shop at the Library/Resource Center with a start date of October 1, 1999 and completion date of September 30,2002; and, FURTHER, The monthly rate be as follows: October 1, 1999 - September 30, 2000 - $900 per month October 1, 2000 - September 30, 2001 - $950 per month October 1, 2001 - September 30,2002 - $1,000 per month Passed and adopted this 7th day of September, 1999. YES NO Mader Mader Kedrowski Kedrowski Schenck Schenck Petersen Petersen Wuellner Wuellner {Seal} City Manager coJ~~agle Creek Ave. S.E., Prior Lake, Minn~~~t~~Oft:~i.4 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER ,Iioi..,.w ~,~~ ,;. ~_ IL1IIi :& ~_~'-""""'._'~j--~ .... J. . ~ . t,t: "'....:.J..,~.-,..,.. ,C . 1". Coffee Shop Lease Library/Resource Center September _, 1999 ~~;:~ EXHIBIT "e" (Equal Employment Opportunity Assurance) David Bergeron, Wendy Bergeron and Mickie Fisher hereby agree that they shall not discriminate against any employee or applicant for employment because of race, color, religion, sex, national origin, marital status, status with regard to public assistance, disability, political affiliation or sexual preference. . LESSEE: David Bergeron Wendy Bergeron Mickie Fisher Dated: 11 CSLEASE.DOC