Discussion:
Staff solicited proposals for an operator for the SandVenture proposed new restaurant area. Out of the twenty-five solicitations, only one company responded and they wanted to operate the space if the city were to pay them an annual management fee.
The owner of Tommy's Malt Shop approached the city staff and was considering a possible relocation from Chaska to Shakopee. They explored several locations and asked about SandVenture. Working with MSR and Confluence, they explored potential layouts at the site. In the past the city parks and recreation staff had operated concessions at SandVenture. A restaurant was included in the original redevelopment plans and included a small outdoor patio.
Tommy's proposed a larger menu, including wine and beer, and would be open all year to serve people using the park including the playground, pickleball courts, disc golf and ice skating in the winter. Tommy's would also provide food service to the proposed community room for parties and events. During the winter, that room would be used as the warming house for skating. Tommy's has agreed to pay for all utilities in the four season building as part of its lease.
Kennedy & Graven drafted a lease with a minimum percentage base rent of $40,000 per year with the percentage capping at $60,000 per year. The rent is index to inflation on a yearly basis. There is no rent in year one since the city is delivering the space as a vanilla shell and the tenant is responsible for all tenant improvements. The city is bringing in electrical, plumbing and mechanical into the space but the tenant is responsible for connections and all equipment. City is providing sheetrocked walls, or what is considered a vanilla shell.
Tommy's would like to move forward with its final design and construction cost estimating and needs an approved lease to move forward.
Council has previously approved a maximum budget for the construction costs for Sandventure and RJM, the city's construction manager as agent, is working to bring final bids, within that budget, to Council this summer for award to start construction September 1, 2023 with an opening June 1, 2024