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REQUEST FOR COUNCIL ACTION Date: March 20, 2023 Item No.: 7.e Department Approval City Manager Approval Item Description: Consider Agreement with Burro Loco LLC as the Kitchen/Grill Vendor for the Cedarholm Community Building Page 1 of 4 BACKGROUND 1 The Cedarholm Community Building has a kitchen/grill area that includes food preparation 2 equipment adequate for a full-service kitchen and beverage operation. This space is intended to 3 provide food and beverage service to the community building users including golfers, users 4 participating in other recreational activities, users who rent the space for private events and 5 neighborhood foot traffic. Dating back to the earliest community conversations about a possible 6 expanded community space at Cedarholm, there was some thought that a third-party vendor could 7 utilize the kitchen and grill space to provide a high level of service to all Cedarholm users. 8 In September of 2022, the city and BBQ Holdings (the previous third-party vendor who was 9 operating out of Cedarholm) terminated their agreement. At that time, the city decided to issue a 10 request for proposal (RFP) to determine if there were any qualified vendors who were interested in 11 providing food and beverage service in the space. The RFP was issued in late October and one 12 proposal was received (Attachment B). 13 The proposers are Dannelle and Edison Bautista, two experienced restaurateurs who are currently 14 operating a food truck and restaurant in St. Francis, MN, named Burro Loco. Dannelle has 15 experience in many food service roles including several years as a sous chef at the Hudson Country 16 Club. The Bautistas’ proposal includes a reasonably priced menu that was formulated based on 17 Dannelle’s experience with golf courses, event spaces and fast/casual dining. 18 Staff have worked with Dannelle and Edison to seek clarification on what their proposal would 19 entail and their capability to effectively operate at the Cedarholm Community Building. The 20 preliminary terms for a potential agreement have been reached (Attachment D). Some specifics of 21 the proposed agreement include: 22 • A three-year and eight-month agreement for operation of the Cedarholm kitchen/grill 23 (through December 2026). 24 • Public kitchen/grill hours during the golf season that would effectively serve our golf 25 community, and provide consistent hours for non-golf users. It should also be noted that 26 although not required in the draft agreement, the proposer has stated their intention to grow 27 the business to year-round service. 28 • A catering menu that offers flexible catering options for a wide variety of events. 29