Is Twin City Catering Off The Hook?
THE PARK BOARD WILL VOTE AT ITS JANUARY 21, 2009, MEETING ON TERMINATING TWIN CITY CATERING'S 2004 LEASE FOR SPACE IN THE HEADQUARTERS BUILDING.
The Board will also be voting on a lease with Mintahoe Hospitality Group for Twin City Catering's space in the Headquarters Building. This lease with the new tenant will reflect a SPACE REDUCTION of 7,700 square feet and a LOSS for the MPRB of approximately $90,000 per year.
What's unusual in this real estate transaction is that MPRB General Manager Donald Siggelkow is allowing Twin City Catering to terminate its agreement without making the MPRB and the public whole for this large loss of income. So why does Siggelkow seem more concerned about protecting the interest of the tenant than he does the interest of the MPRB and the taxpayer?
Here are some other questions about this transaction that should be answered BEFORE the vote:
1. What is the MPRB going to do with the vacated 7,700 square feet of space to replace the lost income?
2. Mintahoe Hospitality Group already has an existing catering lease with the MPRB for the Nicollet Island Pavilion, which is located on state financed regional park board property. Because Mintahoe, a private for-profit company, has also used the Nicollet Island Pavilion as its corporate headquarters, it has been in violation of its lease. The Metropolitan Council has expressed serious concerns about the nature of Mintahoe's use of state financed regional parkland. Have the Met Council's concerns been resolved?
3. What due diligence has the MPRB done to assure itself that Mintahoe is financially strong enough to assume this additional financial obligation?
4. As of December 31, 2008, Mintahoe owed $67,000 in back taxes, plus penalties and interest, to Hennepin County. Has this debt been paid?
Arlene Fried Co-founder of Park Watch