1j. Liquor Agreement Bloomberg Companies and Int'l Broadcasting Corp 6
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CITY O ---c---
. ,,, ,
1 , 1/4A . CHANHASSEN
, , ?_ 690 COULTER DRIVE •• P.O. BOX 147 •• CHANHASSEN, MINNESOTA 55317
1 (612) 937-1900 ;'Ktson uv ` / llmine0-v q^s
1 MEMORANDUM ''''''d''' ��
'.:at° C ".4-°•-6
TO: Don Ashworth, City Manager r e ,abmitted to sswa
1 FROM: Karen Engelhardt, Office Manager e --
fl (ante Submitted to your c�4
DATE: June 21, 1989 t,- .2‘-' ,.,
1 SUBJ: Liquor Concession Agreement, Bloomberg Companies and
International Broadcasting Corporation
1
As you know, International Broadcasting Corporation has purchased
I the Chanhassen Dinner Theatres and is requesting to transfer the
liquor license to their name. I have been working with represen-
tatives of their firm, but it is not possible to complete all the
forms, background investigations, liquor bond, liquor liability
I
insurance, etc. , prior to Monday' s City Council meeting.
Therefore, attached please find a copy of a Liquor Concession
Agreement which states that Bloomberg Companies will continue to
I manage the liquor business and receive all profits from the sale
of liquor until International Broadcasting can complete the
license process . The City Attorney has approved said agreement.
II anticipate that the license transfer will be scheduled for the
July 10, 1989 City Council agenda.
I Approval of the attached Liquor Concession Agreement is recom-
mended.
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LAW OFFICES
GRANNIS, GRANNIS, FARRELL & KNUTSON
DAVID L. GRANNIS- 1874-1961 PROFESSIONAL ASSOCIATION TELECOPIER:
DAVID L. GRANNIS,JR. - 1910-1980 POST OFFICE Box 57 (612)455-2359
VANCE B. GRANNIS 403 NORWEST BANK BUILDING ELLIOTT B. KNETSCH
VANCE B. GRANNIS,JR.* 161 NORTH CONCORD EXCHANGE MICHAEL J MAYER '1
PATRICK A. FARRELL TIMOTHY J. BERG
DAVID L. GRANNIS,III SOUTH ST. PAUL, MINNESOTA 55075
ROGER N. KNUTSON TELEPHONE(612)455-1661
DAVID L. HARMEYER
*ALSO ADMITTED To
PRACTICE IN WISCONSIN June 16 , 1 98 9
Mr. Don Ashworth
Chanhassen City Hall
690 Coulter Drive, Box 147
Chanhassen, Minnesota 55317
RE: Chanhassen Dinner Theatre
Dear Don:
As you know, Bloomberg Companies is selling the dinner
theatre to International Broadcasting Co. ( "IBC" ) . The sale will
take place before IBC has time to get a liquor license. Enclosed
is a management agreement between IBC and Bloomberg under which
Bloomberg will continue to manage the liquor business and receive
all profits from the sale of liquor until IBC receives a license.
The arrangement is acceptable to me.
Very truly yours,
GRANN . RANNIS, ARRELL
& y,.■ •
BY:
Roger N. Knutson
RNK:srn
Enclosure
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JUN 2 0 1989
CITY OF CHAtir,.-�.3�c4
6 ASSOCIATES TEL No . ' 1 5'9,'-1721 Jun 15 ,89 12 : 49 No . 006 F' .02
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LIQUOR CONCESSION AGREEMENT
This is an agreement between Bloomberg Companies
' Incorporated , a Minnesota corporation , with offices in
Chanhassen , Minnesota ( "Bloomberg) and International Theatres
' Corporation , a Minnesota corporation , with offices in
' Minneapolis , Minnesota and its affiliated corporation ,
International Broadcasting Corporation ( "IBC" ) and it provides
that:
WHEREAS, IBC is about to purchase the dinner theatres known
as Chanhassen Dinner Theatres ( "CDT" ) and Bloomberg is the holder
' of certain permits from the Minnesota State Liquor Commission and
the Chanhassen City Council ( the "Council" ) which permits it to
' sell alcoholic beverages at CDT; and
WHEREAS, IBC will be unable to obtain its permits from the
' Council until the normal tourist season is well under way;
substantially after the anticipated closing of the transaction;
and
' WHEREAS, substantial damages will befall CDT and many jobs
lost unless alcoholic beverages are sold on the Theatre premises
' and therefore it is agreed that:
FIRST: CONCESSION OPERATION - Bloomberg agrees to operate
' CDT until such time as IBC obtains all necessary licenses or
' until October 1, 1989 , whichever comes earlier.
SECOND : INSURANCE - IBC shall carry general liability
insurance, including Liquor Liability and Dram Shop coverage,
naming Bloomberg as an additional insured party.
rTHIRD: FEES - IBC shall pay Bloomberg the net income from
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Liquor 40 ( 3 )
ASSOCIATES TEL No . 612-593-].721 Jun 1589 12 : 49 1'Jr� .C7t�6 P . 03
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all sales requiring a liquor license.
FOURTH : NET INCOME - Net income, which '
� ch is to be determined
by IBC, is defined as all income from the sale of alcoholic '
beverages less the cost of inventory, labor, rent, utilities ,
equipment , payroll taxes, management fees and depreciation .
Bloomberg agrees to be bound by IBC ' s determination of Net
Income.
FIFTH : _EMPLOYEES - IBC employees shall staff the various '
locations requiring liquor licenses under the overall supervision
of Bloomberg. Bloomberg will pay a management fee to IBC for the '
services of these employees but , under no circumstances, shall
Bloomberg be considered their employer. IBC shall : (a ) be
responsible for all payroll deductions and withholding taxes, (b)
carry all required insurance , and ( c )
( ) be responsible for
providing a safe work place under the Minnesota State Labor Laws . '
SIXTH : COLLECTION OF REVENUE - IBC employees shall be
responsible for the collection of all revenues generated by sales
of alcoholic beverages at CDT.
SEVENTH : NO ASSIGNMENT - This Agreement shall not '
be
assignable by IBC or Bloomberg.
THE PARTIES HERETO have ca '
used this Agreement to be duly and
properly executed as of this 15th day of June, 1989. '
INTERNATIONAL THEATRES BLOOMBERG COMPANIES
CORPORATION INCORPORATED
By:
-. -- By
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Liquor 40 (3 )