11. EDSR 10-08-2007ITEM # 11.
c
~ ~•~,
liver
MEMORANDUM
TO: Economic Development Authority
FROM: Heidi Steinmetz, Assistant Director of Economic Development
DATE: October 8, 2007
SUBJECT: Consider Proposal From Restaurant Brokers of Minnesota
Attachment
• Proposal dated October 3, 2007
• David Goldberger information
Background
At its September 10, 2007 meeting, the EDA directed staff to focus on the marketing
component of restaurant recruitment. One of the marketing tools or methods that the EDA
expressed interest in was hiring a restaurant real estate broker to assist in the recruitment of
restaurants to Elk River.
Discussion Points
The Restaurant Brokers of Minnesota have submitted the attached proposal for the EDA's
review and consideration.
If the EDA wishes to accept the proposal, David Goldberger of the Restaurant Brokers of
Minnesota would serve as Elk River's restaurant real estate broker. See the attached
information on Mr. Goldberger and his current listings. Due to a prior commitment, Mr.
Goldberger is unable to attend tonight's EDA meeting, however he has requested direction
on the EDA's expectation for what types of restaurants the EDA wishes to attract. Some
examples may include:
• Ethnic
• Sports bars
• Family sit-down
• Fine dining (what is the EDA's definition of "fine dining"?)
• Independent owners
• Innovative franchises
Consider Proposal Prom Restaurant Brokers of Minnesota
October S, 2007 >JllA Meeting
Page 2 of 2
In addition, Mr. Goldberger is aware of the EDA's interest in asking restaurant owners or
representatives what types of financial incentives they would need to locate in Elk River.
Furthermore, Mr. Goldberger has requested EDA policy direction on the types of incentives
the EDA is willing to offer (i.e. land acquisition, loans, Tax Abatement, etc.
Recommendation
Staff recommends that the EDA review and consider the attached proposal from the
Restaurant Brokers of Minnesota. Elk River would be the first city in the State of Minnesota
to enter into a contract with the Restaurant Brokers of Minnesota.
Steinmetr, Heidi
From: goldynboys@charter.net
;ent: Wednesday, October 03, 2007 9:31 PM
To: Steinmetz, Heidi
Cc: djsikka@restaurantsforsale.com
Subject: Elk River Proposal
Heidi,
We appreciate the opportunity to work with the City of Elk River to bring more restaurant
options to your community.
Restaurant Brokers of Minnesota would commence a 3 month search for a fee of
$10,000($5,000 up front and $5,000 at the end of 3 months).
This fee would be paid back through commissions Restaurant Brokers of Minnesota earns from
any sales or leases that are signed in connection with this project.
Once an agreement is signed we would, with the help of the EDA, determine what area and
properties are best suited for restaurant development. Then we would begin our search by
first contacting our clients which include a mix of national and regional franchises as
well as local independents and restaurant groups.
Some of these include, Green Mill, Outback Steakhouse, Timberlodge, Chammps, Buca,
Jensen's Supper Club, La Grolla, and Wayzata Eatery-Alaska Eatery, Mississippi Belle,
Outdoorsman Grill, Viva Italia, Taste of India, and Two Guys From Italy to name a few.
In order to lure these type of establishments it is our opinion that the city will need to
make considerable concessions including but not limited to land grants and low interest
loans. The typical restaurant in the segment you are looking would be 6000 sq feet.
?hich would require 1.5 -2.25 acres depending on city requirements with setbacks and green
jpace.
To realistically pursue our clients and groups like Axel's/Bonfire/Rudy's we will need
something concrete and substantial to catch their attention. Vague ideas and dreams will
not be enough. We believe by offering strong concessions and build to suit options, the
City of Elk River and Restaurant Brokers of Minnesota will be able to entice the type of
restaurants you are looking for to compliment and upgrade your community.
We look forward to working with you.
Thank you again,
DJ Siklca
David Goldberger
Restaurant Brokers of Minnesota
1