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TO: Mayor Thomas J. Weisner
FROM: Stephane A. Phifer, Planning and Zoning Director
DATE: May 9, 2014
SUBJECT:
A Resolution Authorizing the First Amendment to the Agreement between the City of Aurora and Two Brothers Roundhouse Inc. for the Main Food Vendor Services at RiverEdge Park Music Garden (RiverEdge Park - Main Food Vendor Agreement Amendment - PZ-14.163 - SP - Ward 2)
PURPOSE:
Attached is a resolution authorizing the execution of the first amendment to the Agreement between the City of Aurora and Two Brothers Roundhouse Inc. for the Main Food Vendor Services at the RiverEdge Park Music Garden to provide for a one year extension.
BACKGROUND:
On March 12, 2013, with resolution R13-078, the City of Aurora approved an agreement with the Two Brother's Roundhouse Inc., as the result of a Request for Proposal (RFP) process, to provide the main food vendor services for the inaugural year at the RiverEdge Park Music Garden.
DISCUSSION:
The Music Garden has only been open for one summer season but has already hosted dozens of events and brought over 100,000 people to Downtown Aurora. Two Brothers Roundhouse, the Main Food Vendor at the park, has been a committed partner with the City and ACCA in this endeavor. All parties are excited about continuing the relationship into the 2014 Season with this extension of the Main Food Vendor agreement with Two Brothers Roundhouse.
As with all initiatives, in order to stay successful the partners must be flexible and reactive especially in the initial years to adapt to the market needs and lessons learned. After year-end review, there are some modifications and clarifications to the provisions of the agreement which all involved believe will foster communication, equitable investment, and most importantly provide a more enjoyable experience for the patrons of the venue.
The proposed amendment to the existing agreement would expand the previously approved one-year term for an additional year being from May 1, 2014 to May 1, 2015. The amendment also proposes the following modifications and clarifications to the agreement:
1) There is a reduction of the requirement on the main food vendor to be open during non-event days. In the first year there was not sufficient demand to justify the main food vending area to be open for these extended hours. The parties are hopeful that in the coming years there will be such a demand, so the decision to be open during non-event times will be left up to the main food vendor.
2) There is a new provision on notification which has been added that provides more communication between the main food vendor and the Paramount staff including critical information needed to assess staffing and supply needs such as advanced ticket sales, ticket sale projections and special promotions such as Groupons. With this information the main food vendor will be able to provide enhanced customer service to patrons.
3) The provision regarding rental of the facility (i.e. "Two Brother's Concert Series") by the main food vendor is being removed. This type of "sponsorship" in the end was complicated and in the future sponsorship by the main food vendor of any events will be handled directly between the main food vendor and ACCA with a standard sponsorship agreement.
4) The sliding scale financial return from the main food vendor to ACCA (5% to 12% of a percentage of gross revenue) and the annual licensing fee will remain the same. However, the minimum commission requirement of $8,500 dollars annually to ACCA has been removed. Many factors outside of the main food vendors control impact the annual gross revenue and both the City and ACCA recognize this with the removal of this minimum. With this modification the agreement will then be a more equitable and true profit sharing arrangement, and not require more than the agreed-to percentage of the main food vendor revenues.
All other provisions of the agreement will remain in full force and effect. The partnership with Two Brothers brings many intangible benefits to the park including a local downtown business perspective, a commitment to sustainability, and a regional, even nationally, recognized brand. These proposed amendments recognize those benefits and the continued commitment by Two Brothers to RiverEdge Park.
IMPACT STATEMENT:
The Planning and Zoning Division would anticipate that this amendment to the agreement will have a positive impact on the City's health, welfare, overall tax base and viability.
RECOMMENDATIONS:
Staff recommends approval of the Resolution Authorizing the First Amendment to the Agreement between the City of Aurora and Two Brothers Roundhouse Inc. for the Main Food Vendor Services at RiverEdge Park Music Garden.
cc: Alderman O'Connor, Chairman
Alderman Mervine
Alderman Bohman
Alderman Peters, Alternate
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
title
A Resolution Authorizing the First Amendment to the Agreement between the City of Aurora and Two Brothers Roundhouse Inc. for the Main Food Vendor Services at RiverEdge Park Music Garden
body
WHEREAS, the City of Aurora has a population of more than 25,000 persons and is, therefore, a home rule unit under subsection (a) of Section 6 of Article VII of the Illinois Constitution of 1970; and
WHEREAS, subject to said Section, a home rule unit may exercise any power and perform any function pertaining to its government and affairs for the protection of the public health, safety, morals, and welfare; and
WHEREAS, on March 12, 2013 by Resolution R13-078, Two Brothers Roundhouse Inc. and the City of Aurora entered into an Agreement for the Main Food Vendor Services at RiverEdge Park Music Garden; and
WHEREAS, it is desirable that said Agreement be amended as set forth in Exhibit "A", attached hereto and incorporated herein, to provide for an extension of term of said Agreement as well as to provide clarification and modification to certain provisions of said Agreement.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: that the City Council of the City of Aurora, Illinois, finds as fact all of the preamble recitals of this Resolution, and does hereby authorize the execution of said First Amendment to the Agreement between the City of Aurora and Two Brothers Roundhouse Inc. for Main Food Vendor Services at RiverEdge Park Music Garden.
PASSED AND APPROVED on ______________.
AYES ____ NAYS ____ NOT VOTING ____ ABSENT ____
____________________________ __________________________
Alderman Bohman, Ward 1 Alderman Garza, Ward 2
____________________________ __________________________
Alderman Mesiacos, Ward 3 Alderman Donnell, Ward 4
____________________________ __________________________
Alderman Peters, Ward 5 Alderman Saville, Ward 6
____________________________ __________________________
Alderman Hart-Burns, Ward 7 Alderman Mervine, Ward 8
____________________________ __________________________
Alderman Bugg, Ward 9 Alderman Johnson, Ward 10
____________________________ __________________________
Alderman Irvin, At Large Alderman O'Connor, At Large
ATTEST:
____________________________ __________________________
City Clerk Mayor
Legistar Number: 14-00382
ATTACHMENTS:
Exhibit "A" First Amendment
EXHIBIT "A"
FIRST AMENDMENT TO
THE AGREEMENT FOR THE MAIN FOOD VENDOR SERVICES
FOR RIVEREDGE PARK MUSIC GARDEN
This First Amendment made by the City of Aurora, Illinois, an Illinois Municipal Corporation ("City") and Two Brothers Roundhouse Inc., an Illinois Corporation ("Main Food Vendor") is entered into this _____ day of ______, 2014. The parties hereto have previously entered into an Agreement ("Agreement"), which was approved by the City of Aurora by Resolution R13-078 on March 12, 2013.
WHEREAS, the parties hereto wish to enter into this First Amendment of said Agreement as hereinafter set forth.
NOW THEREFORE, for good, valuable and legal consideration the receipt and sufficiency of which is hereby acknowledged the parties hereto agree to this First Amendment of the Parties' Agreement dated March 12, 2013 as follows:
1) Exhibit "A" Agreement:
Paragraph 3--The Term of this Agreement shall be for the period beginning May 1, 2014 through May 1, 2015. This Agreement may be renewed from year-to-year thereafter at the CITY'S sole option.
2) Exhibit "A" Agreement, Attachment "A":
i) Paragraph 1.1.2. Food and Non-Alcoholic Beverage Service
The MAIN FOOD VENDOR will not be the exclusive provider for food service at the MUSIC GARDEN, but will be the preferred food vendor and will be the only food vendor that will have access and use of the FOOD SERVICE AREA.
a) Hours of Operation
The MAIN FOOD VENDOR shall open and operate the FOOD SERVICE AREA during each and every scheduled event at the MUSIC GARDEN. These services may also be provided during certain non-event days in the spring, summer and fall months, based on a mutually acceptable written schedule with the CITY/DESIGNEE. The MAIN FOOD VENDOR shall increase the hours of operation based on customer demand.
g) Notification
The parties agree that the CITY/DESIGNEE shall keep the MAIN FOOD VENDOR apprised of all upcoming events, ticket sale projections, and special promotions.
ii) Paragraph 1.1.11.c. Investment by the MAIN FOOD VENDOR - Removed
iii) Paragraph 1.3.4. Financial Return
As consideration for the right and privileges granted under this Agreement the MAIN FOOD VENDOR shall pay an annual licensing fee of twenty-five hundred dollars ($2,500) and a commission in the form of a percentage of the food, non-alcoholic beverage and catering gross revenue. Said percentage of gross revenue shall be based on the following: five percent (5%) for the first two hundred thousand dollars ($200,000); ten percent (10%) for the next two hundred thousand dollars ($200,000), and twelve percent (12%) for the remaining. All calculation will be based on total sales exclusive of sales tax, use tax or any other transactional tax. The annual licensing fee shall be due and payable on May 1st of each year, and the commission shall be due and payable monthly.
With the exception of the above recited additions and modifications, the remaining provisions of the Agreement previously approved and adopted by City of Aurora Resolution R13-078 shall remain in full force and effect.
IN WITNESS WHEREOF, the parties have set their hands and seals the day and year written above and the signatories hereto represent that they are duly authorized to execute this First Amendment on behalf of their respective bodies.
(SIGNATURE PAGES TO FOLLOW)