Forest Park development authority weighs operating coffee shop, ballroom rentals at 850 Main Street

The Forest Park Development Authority discussed plans to generate revenue from its renovated property at 850 Main Street, including contracting an operator to run an on-site coffee shop and setting commercial rates for a newly renovated ballroom. The board did not vote to sell or lease the property during the meeting.

Board members said the authority has invested significant funds in exterior and interior upgrades at 850 Main Street and is exploring ways to make the property self-sustaining. A board member (name not specified) said the authority has outfitted the space with coffee equipment and kitchen appliances and prefers to locate an operator rather than lease the coffee space for a fixed monthly rent. "We put way too much money into that building to rent it out to someone for 11 to 1,200, 14 hundred bucks," the board member said. "If we could turn that thing ourselves ... we could generate some real dollars off of it."

Attorney Glaze advised the board that the authority cannot itself operate a retail business under its bylaws but can contract with an operator to run day-to-day operations. "The authority by law can't operate a business, but what you can do is contract someone for a fee to operate it," Glaze said, explaining options for procurement. He recommended a two-step public approach if the board wants competitive submissions: issue a request for qualifications to identify qualified operators, then invite proposals from those candidates rather than soliciting proposals from all comers.

Board discussion described the interior improvements — new plumbing, bathrooms, wiring and glass walls — and noted that exterior aesthetic work and site paving remain. The board member said the ballroom on the second floor has been renovated and will be another source of revenue once the authority sets appropriate rental rates. The member urged the finance committee to consider commercial rates higher than what had been charged previously.

Board questions focused on contract structure and operator commitments. Attorney Glaze recommended paying an operator an annual or otherwise commercially reasonable operating fee and making the operator responsible for staffing, wages and day-to-day costs, while the authority would retain revenue after operator fees and operational expenses. He also advised giving any prospective operator a contract term long enough to justify any required investment in equipment or staff commitments.

No formal motion to authorize a solicitation, to award a contract, or to set rental rates was recorded during the public portion of the meeting; the board later moved into an executive session for real estate matters. Next steps discussed included drafting a procurement or qualifications document and reviewing ballroom pricing in the finance committee.

The remarks about revenues, pricing and procurement occurred during the agenda item titled "Update on 850 Main Street redevelopment."