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Date: May 24, 2005 |
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To: RCPL Trustees |
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From: G. Chapman |
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Re: Proposed coffee shop |
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Recommendation: Define a coffee shop vendor lease fee to be a set percentage of the vendor profits. |
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Background: As part of the implementation of the Strategic Plan, we have researched a vendor-operated coffee shop in the library. The City Attorney’s office has drafted a Vendor Agreement, which could serve as the RFP, and an RFP announcement. The Vendor Agreement does not now include language regarding leasing costs, but that can be added. |
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As a result of previous Board discussion, research was done as to what we might charge a vendor for leasing of the library space. Options include: |
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o Take
a defined percentage of profits as rental; for example, the |
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o Charge a flat-fee rental based on the amount of square footage |
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o The Rushmore Mall rents kiosk spaces for approximately $1100 per month, which increases to about $3000 per month in November and December |
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o Food Court vendors pay approximately $3.00 per square foot of space |
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§ In addition to the flat-fee rentals, mall tenants also pay a percentage of their profits to the mall |
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Because the space identified for the coffee shop is not enclosed, defining a strict cost per square foot may not be a satisfactory solution. Therefore, staff recommends setting a lease fee as a percentage of vendor profits. |