4.7 SR 11-18-2024The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community
engagement that encourages and inspires prosperity
Request for Action
To
City Council
Item Number
4.7
Meeting Date
November 18, 2024
Prepared By
Joe Stremcha, Business Services Director/Assistant
City Administrator
Item Description
FT Center - Mendota Valley Amusement Inc.
Agreement 2024-28
Reviewed by
Cal Portner
Tina Allard
Action Requested
Approve, by motion, the Mendota Valley Amusement Inc. agreement as presented.
Background/Discussion
The FT Center is expanding its service offerings by providing games, redemption devices, digital juke box, etc.
to increase revenue.
Financial Impact
An initial two-week demo in October yielded $203.75 in gross profit for the FT Center.
Mission/Policy/Goal
Opportunity to live, work, and play
Attachments
1. Mendota Valley (Games & TouchTunes)
Page 24 of 204
Page | 1 MVA/Furniture and Things Community Event Center Location Agreement
LOCATION AGREEMENT
For the Operation of Coin and
Currency Operated Machines
THIS AGREEMENT, made and entered into this _______day of __________________, 2024, by and
between MENDOTA VALLEY AMUSEMENT INC., 390 Richmond St. East, South St. Paul, MN,
55075, a corporation organized and existing under the laws of the State of Minnesota, hereinafter
referred to as “MVA”, and Furniture and Things Community Event Center located in the City of Elk
River, County of Sherburne, State of Minnesota, hereinafter referred to as “Location”.
NOW, THEREFORE, in consideration of their mutual promises to each other, and of the mutual
promises and covenants herein contained, MVA and Location agree as follows:
1. MVA agrees to place coin and currency operated amusement, music, bulk vending and/or
redemption devices with Location. MVA agrees to install said devices in a prompt and workmanlike
manner and shall be fully responsible for necessary repairs and maintenance of the devices so placed.
2. Location grants MVA the exclusive right to place, install and operate coin and/or currency
operated machines, including the installation and wiring of the digital juke box and sound system, photo
booth and additional items including but not limited to pool tables, pinball machines, video games,
redemption devices, dart machines, cranes, bulk vending and other coin or currency operated
amusement, music devices and ATM’s. The machines placed on site will be at the discretion of
Location, agreed upon before they are placed. This warranty shall extend for the full term of this
agreement. No other person or entity, including the proprietor shall have the right to operate such
machines at Location during the term of this agreement. Location warrants that it has granted no
conflicting rights to any third party and that its execution of this agreement does not violate any other
agreement to which Location, or its proprietor may be a party.
3. The devices placed and installed by MVA are and shall continue to be the sole property of
MVA. Location shall be fully responsible for all loss, injury, or damage to the said devices while in its
possession or on its place of business, normal wear and tear excepted.
4. Location agrees that all equipment, including the cash contained within them is the sole property
of MVA. Location has no legal right to tender equipment or cash for sale, process, levy, execution,
garnishment, attachment, judgement and lien whether given by statute, lease or agreement, for rent due,
or to be due, or for any other claim or demand, present or future of the undersigned Location.
Page 25 of 204
Page | 2 MVA/Furniture and Things Community Event Center Location Agreement
5. Subject to exceptions detailed herein and any additional terms included below, net proceeds
collected from operation of equipment at the Location shall be divided as outlined hereafter. Subject to
exceptions listed herein, net proceeds shall be defined as total collections minus sales tax, required
permits and licenses, refunds, online connection and content fees, league fees, cost of products and
prizes and any promotions agreed upon by MVA and Location. Future equipment installed at the
Location by MVA shall be governed by this paragraph, including exceptions detailed below, unless
agreed upon in writing by Location and MVA.
a) PAID JUKEBOX PLAYS – MVA shall select the appropriate jukebox brand and fee structure
to be used at the Location. Revenues collected from jukeboxes shall be divided as follows: 35% shall
be retained by MVA to pay for music fees. Any remaining revenues shall be divided 50% to MVA and
50% to Location.
b) BACKGROUND MUSIC – If the Location chooses to use passive background music supplied
by TouchTunes, $50 per month shall be deducted from Location’s revenue share on a monthly basis.
c) VIDEO GAMES, DARTS AND POOL TABLES – Revenues collected from video games, darts and
pool tables shall be divided as follows: 50% to Location and 50% to MVA. ** Revenues collected from
pinball machines released after 2014 and quarter pushers shall be divided as follows: 40% to Location
and 60% to MVA.
d) BULK VENDING - Revenues collected from bulk vending machines shall be divided as
follows: 60% shall be retained by MVA to pay for product then 50% to Location and 50% to MVA.
e) REDEMPTION GAMES – Revenues collected from redemption games shall be divided as
follows: 40% will be retained by MVA to pay for product then 50% to Location and 50% to MVA.
f) AUTOMATIC TELLER MACHINES (“ATMS”) – ATMs shall be stocked, operated, and
serviced by MVA affiliate. ATM users shall be assessed a fee of $3.00 per transaction, of which $.50
shall be paid to Location as a commission per transaction from 50 to 100 transactions, $1.00 per
transaction from 100-200 transactions and $1.50 per transaction for 200+ transactions per month. ATM
commissions shall be paid to Location on the 20th of day of each month for the previous month’s
transactions.
g) OTHER AGREED UPON EXCEPTIONS – The parties may upon specific revenue splits,
guarantees or other fee structures for specific equipment. Such exceptions shall be made in writing
6. The term of this agreement shall be for a period of 36 months from the date of this agreement
and shall be automatically renewed for like periods on the same terms and conditions, unless either party
to this agreement shall give to the other party notice in writing sent registered mail of its intention to
terminate and cancel this agreement, which notice shall be given no more than sixty (60) days and no
less than thirty (30) days prior to the expiration of the then current term hereof.
7. In the event of any breach of this Agreement, in addition to any other remedy which may be
available, MVA may elect to terminate this Agreement and remove all of its equipment, without
interference from Location, and shall be entitled to liquidated damages in a sum equal to the Company’s
Page 26 of 204
Page | 3 MVA/Furniture and Things Community Event Center Location Agreement
average weekly share of collections multiplied by the number of weeks remaining in the unexpired term
of this Agreement. Such damages shall become immediately due and payable upon the breach. In
addition, MVA shall be entitled to recover from Location all costs and expenses, including reasonable
attorney fees, for the collection of amounts due under this Agreement. Liquidated damages as described
shall be paid to compensate MVA for lost income and not as a penalty enforced against Location.
8. The parties hereto undertake this agreement on behalf of themselves, their heirs, assigns,
successors or persons who may come into possession of said premises, or any part thereof, in any
manner whatsoever. This agreement shall be binding on any business or firm succeeding the business of
the Location, including by way of acquisition or merger, and shall apply to any other address to which
the business of Location is moved.
9. This instrument contains the entire agreement between the parties and supersedes any and all
agreements previously made. Any oral representations or modifications concerning this instrument shall
be of no force and effect excepting a subsequent modification in writing signed by all the parties. Both
parties’ signatures below acknowledge their understanding and ascent to the contents of this agreement.
10. In the event of any controversy, claim or dispute between the parties hereto, arising out of or
relating to this agreement of the breach thereof, the prevailing party shall be entitled to recover as part of
its judgement reasonable expenses, attorneys’ fees and costs.
11. This agreement, executed and delivered in the state of Minnesota, shall be governed by and
construed in accordance with the laws of the state of Minnesota.
IN WITNESS WHEREOF, the parties hereto have executed these presents the day and year first
above written.
By: Mendota Valley Amusement, Inc. By: Furniture and Things Community Event Center
Signature Signature
Andrew Klassen
Printed Name Printed Name
Chief Operating Officer
Its Its
____________________________
Federal Tax ID#
Page 27 of 204
Page | 4 MVA/Furniture and Things Community Event Center Location Agreement
Additional Terms/Information:
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Initial Here: AK Initial Here:
MVA Location
Page 28 of 204