Medical Lake council reviews plan to turn city kitchen into business incubator, eyes consultant contract

Councilors in Medical Lake spent a large portion of their June 2 meeting on a plan to turn a city-owned kitchen into a commercial incubator that would rent certified production space, offer training and generate revenue for the city.

Aaron Bishop, owner of a Washington cottage-food business called The Canery, presented the contract scope and a 30- to 120-day operational readiness plan. Bishop said the kitchen would function as “a commercial kitchen, rental facility, food business incubator, pop-up and supper-club venue, event and catering support kitchen” and include an operations binder, marketing toolkit and training materials the city could use when the facility opens.

The nut of Bishop’s presentation was a package of deliverables intended to make the facility rentable on day one: renter agreements, a policies-and-procedures manual, a compliance checklist, marketing templates and a membership-and-pricing structure. Bishop offered sample membership tiers, including a low-barrier tier he described as “$49 with two hours included” to encourage first-time renters, and projected a range of possible revenue streams from rentals, classes and storage.

Councilors and staff tested operational issues. Council member Spears and others pressed Bishop and staff about insurance and the logistics of offering dry-shelf, refrigerated and freezer storage; Bishop said storage would require renters to carry business insurance and likely list the city as an additional insured, and he recommended clear labeling and secure, lockable storage as part of a risk-mitigation strategy. Staff noted the city will consult with WCIA (the municipal insurer) and the Spokane Regional Health District for food-safety and storage requirements.

Council members also asked about calendar management and scheduling priority for different membership tiers. Bishop said the plan anticipates a 60-day scheduling notice and a calendar policy coordinated among parks, programs and the kitchen manager; any long-term rental agreement would be developed as a contract and brought to council for approval.

Staff said the initial consulting work is proposed as a 1099 contract through Dec. 31, with a suggested consulting fee cited in the presentation of $2,500 per month while Bishop produces the operational systems. Staff told council they expect to bring a formal contract back for approval; council signaled support for advancing the agreement but sought clearer fee schedules, an insurance review and written policies on storage and scheduling before final approval.

The council also approved a small, related roofing services resolution (see separate item) and heard that Spokane restaurant equipment vendors will install the kitchen hood once the roof work is complete. Staff said the in-place hood and roofing penetrations must be finished before the kitchen can be certified by health authorities and opened to renters.

The next steps: staff will return with a formal consulting contract and fee schedule, an insurance/risk assessment and a draft calendar and scheduling policy for council review.