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REQUEST FOR COUNCIL ACTION Date:September12, 2022 Item No.: 7.j Department Approval City Manager Approval Item Description: Authorize First Addendum to Professional Services Agreement with BBQ Holdings, Inc., owner of Granite City Food and Beverage; Agreement for Termination 1 B ACKGROUND 2 The Cedarholm Community Building has a kitchen/grill area that includes food preparation 3 equipment, space for full beverage service and customer seating. 4 In 2019, the City issued a Request for Proposal and engaged in a community process to select a 5 vendor to provide food and beverage service in the kitchen/grill area of the Cedarholm Community 6 Building. 7 In September 2021, following a significant delay due to the COVID-19 pandemic, the City entered 8 into an agreement with BBQ Holdings LLC for Granite City Food and Beverage to providefood and 9 beverage service at Cedarholm Community Building. 10 The agreement was intended to provide a higher level of food and beverage service than the City is 11 able to provide with our seasonal staff and to connect us with a partner who shared our vision of the 12 Cedarholm Community Building as a vibrant, year-round community destination. 13 In exchange, the City made Granite City the exclusive catering option for rentals and events at 14 Cedarholm. 15 As Granite City prepared to begin operations at Cedarholm, they experienced staffing changes and 16 began to show a change in approach. They ultimately were unable to begin service on the agreed 17 upon date of January 3, 2022 and were delayed until April 1. Additionally, the hours of operation 18 that they were willing to provide service were much more limited than those that were stated in the 19 agreement or acceptable for building users. 20 Throughout the summer, City staff attempted to support Granite City and allow them to gradually 21 expand their hours of operation until they reached the agreed upon hours of operation listed in the 22 agreement. However, in spite of persistent requests, Granite City was unwilling to expand their 23 hours to an acceptable timeframe. Additionally, other concerns regarding service and fit began to 24 arise. 25 In August, Granite City notified the City of their intent to terminate the agreement. Staff have 26 worked with Granite City to negotiate a termination of the agreement that makes the City financially Page 1 of 2