VI.5. Approve Letter of Agreement between City of Hopkins and Artspace for an Arts Market Study; BeekmanFebruary 5, 2018 Council Report 2018-025
Approve Letter of Agreement between City of Hopkins and Artspace for an Arts
Market Study
Proposed Action
Staff recommends adoption of the following motion: Move to approve the Letter of
Agreement between the City of Hopkins and Artspace for an Arts Market Study.
Overview
In August 2017, the City completed a preliminary feasibility study with Artspace to
explore an affordable artist live/work development in Hopkins. The results of that initial
study were favorable and Artspace presented their report to the Council at their October
work session meeting. At that time, the Council directed staff to move forward with the
next phase of analysis; an arts market study to evaluate the depth and breadth of a
market for arts-oriented spaces in Hopkins.
City staff will work with Artspace to craft an online survey that will be the basis for the
market study. In addition, three focus groups will be held that will specifically focus on
getting input from harder to reach respondents such as the City’s east-African
community, the Latinx population, and youth.
The City received a $30,000 grant from the Metropolitan Council to assist with
completing the market study. The total cost of the study is $35,000. The City will also be
supporting the work with staff time and marketing efforts to get word out about the
study.
Supporting Information
Letter of Agreement
___________________________
Meg Beekman
Community Development Coordinator
Council Report 2018-025
Page 2
Financial Impact: $_5,000___Budgeted: _Y__ Source: 2014 – Econ. Dev.________
Related Documents (CIP, ERP, etc.): _______________________________________
Notes:_______________________________________________________________
Alternatives
The Council has the following alternatives:
Approve the Letter of Agreement
Deny the Letter of Agreement and opt not to move forward with the study
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Letter of Agreement - Arts Market Study
THIS LETTER OF AGREEMENT (this "Agreement") made and entered into this _____ day of
______________, 2018 (the "Effective Date") by and between ARTSPACE PROJECTS, INC.,
a MINNESOTA NONPROFIT CORPORATION having an address at 250 3RD AVENUE
NORTH, SUITE 400, MINNEAPOLIS, MN 55401 ("Artspace") and City of Hopkins, a
municipality, with a mailing address at 1010 F irst Street South, Hopkins, MN 55343. "City of
Hopkins" and Artspace are each a "party" and together the "parties".
The parties agree as follows:
1.Overview:
Subject to the terms, conditions and covenants in this Agreement, Artspace contracts
with City of Hopkins, and City of Hopkins contracts with Artspace, to perform the
scope of work ("Scope") as more particularly described in Exhibit "A" attached hereto.
2.Term:
The term of this Agreement shall commence on the Effective Date (as defined above)
and shall continue until all deliverables as outlined in Exhibit "A" are completed (the
"Scope Completion"; such period, the "Term").
3.Qualifications:
City of Hopkins shall provide any and all support relevant, the City of Hopkins’ sole
discretion, to the successful completion of the Scope as outlined in Exhibit “A” and
further defined in Exhibit “C”, including, but not limited to, providing documents
relevant or appropriate for Artspace review, assigning key staff to work with
Artspace, coordinating logistics for meetings and leading public outreach and
promotional efforts.
4.Fee:
The total fee for this work is Thirty-Thousand Dollars and 00/100 ($35,000.00). On
the Effective Date, City of Hopkins shall pay Artspace an initial deposit in the amount
of $17,500 Dollars and 00/100 ($17,500) ("Initial Deposit"). City of Hopkins shall pay
Artspace the remaining balance in the amount of $17,500 Dollars and 00 /100
($17,500) ("Balance") upon Scope Completion. In the event of a cancellation
requested by City of Hopkins within the first thirty (30) days of the Term, Artspace
shall be entitled to a nonrefundable cancellation fee in the amount Two Thousand
and Five Hundred Dollars and 00/100 ($2,500.00) ("Cancellation Fee"), which may be
deducted from the Initial Deposit the remainder of which must be repaid to the City
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of Hopkins within 10 days of notice of such termination. In the event of a
cancellation requested by City of Hopkins at any point after the first thirty (30) days
of the Term but before Scope Completion, Artspace shall be entitled to compensation
calculated at the hourly rate described in Exhibit "B" for the actual hours worked plus
any documented out-of-pocket expenses ("Balance Due"). Artspace may retain a
portion of the Initial Deposit up to the amount of the Balance Due. In the event that
the Initial Deposit is insufficient, City of Hopkins agrees to immediately remit the
remaining Balance Due to Artspace.
5.Proprietary Use:
With the exception of the deliverables (“Deliverables”) described in Exhibit "A", all
materials, written or otherwise, provided by Artspace remain the property of
Artspace and may not be reproduced, copied, or disseminated to third parties for
purposes of sale or other benefit beyond the intended use under this contract as
particularly described in Exhibit “A” as the “Purpose”, without the prior written
approval of Artspace. This includes but is not limited to: photos, survey respondent
contact information and the survey instrument. Confidential information collected
from survey respondents under this scope of work may not be shared with third party
organizations or utilized in any manner that violates the privacy of survey
respondents.
Notwithstanding any provision contained herein, the City of Hopkins shall have a
non-exclusive, irrevocable license to use such materials for any non -commercial
purpose which it deems necessary and appropriate.
6.Trademark Infringement:
City of Hopkins is granted the right to use the Artspace name and/or brand solely in
conjunction with the Scope of the project as outlined in this Agreement, and shall not
use the Artspace name and/or brand in conjunction with or connection to any other
projects or marketing materials for which Artspace is not a consultant including, but
not limited to, identifying a future project or development as arts -focused. City of
Hopkins agrees to notify Artspace of any potentially unauthorized use of the
trademarks internally or by others promptly as it comes to City of Hopkins’s
attention. Artspace shall have the sole right and discretion to bring infringement
proceedings involving trademarks.
Because the damages resulting from unauthorized use will render irreparable harm to
Artspace that will be difficult to quantify, Artspace shall be entitled to seek any and
all equitable relief, including, but not limited to, injunctive relief, and to any o ther
remedy that may be available under any applicable law or agreement between the
parties. City of Hopkins acknowledges that an award of damages to Artspace does not
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preclude a court from ordering injunctive relief. Both damages and injunctive relief
shall be proper modes of relief and are not to be considered as alternative remedies.
The City of Hopkins shall have no liability for any unauthorized use of such materials
by third-parties.
7.Assignment or Subcontracting:
With the exception of subcontract ors identified in Exhibit "A", Artspace may not
subcontract any portion of the Scope without the prior written consent of City of
Hopkins.
8.Address of Artspace and City of Hopkins Notices:
All notices required hereunder between Artspace and City of Hopkins shall be given
in writing, by United States certified mail, return receipt requested, or by nationally
recognized overnight courier service, to Artspace and City of Hopkins at the address
shown in the opening paragraph of the Agreement. All payments due hereunder
shall be given to Artspace and City of Hopkins, as the case may be, at the address
shown in the opening paragraph of the Agreement.
9.Termination:
This Agreement may be terminated by either party without cause with 10 business
days’ advance written notice; provided, however, that all compensation due to
Artspace through such termination date, as defined herein, shall be paid by City of
Hopkins. Upon termination, Artspace shall deliver to City of Hopkins all completed
materials as of the date of termination.
10.Amendment and Modification:
This Agreement embodies the full agreement of the parties and supersedes any and all
prior understandings or commitments concerning the subject matter of this
Agreement. Any modification or amendment must be in writing and signed by both
parties.
11.Governing Law:
This Agreement is governed by and shall be construed in accordance with the laws of
the state of Minnesota without any consideration for choice of law principles. Any
dispute arising hereunder shall be venued in the state or federal courts located within
Hennepin County, Minnesota, and the parties hereto waive any objection to such
venue.
12.Release and Indemnification:
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Neither party to this Agreement shall be liable to the other for any negligent acts or
omissions committed by any of that party’s officers, agents, employees, or assigns. To
the extent that such negligence creates any third-party liabilities, the negligent party
shall agree to indemnify, defend, and hold harmless the non-negligent party from any
and all claims arising hereunder. Further, Artspace specifically agrees to indemnify,
defend, and hold harmless the City of Hopkins against any and all claims of
intellectual property violations arising under Artspace’s activities hereunder. Such
claims include, but at not limited to, claims related to patent infringement,
misappropriation of intellectual property, and any other claims related, in any way, to
the intellectual property of a third party.
13.Disclaimer:
Results depend upon a variety of factors unique to each agreement. Prior results do
not guarantee or predict a similar result in any pending or future project undertaken
by Artspace.
The Deliverables, in addition to the written or other materials provided by Artspace,
are intended as guidance for those who wish to explore or advance an arts -related
project. While the Deliverables and other materials provided reflect Artspace's
expertise as a real -estate developer for artists and arts organizations, and are provided
in good faith, Artspace makes no representation or warranty about the value of any of
the information in relation to the success of any specific project.
14.Return of Property:
Upon Scope Completion or termination of this Agreement, City of Hopkins agrees to
return to Artspace any property, documentation, records, or confidential information
that is the property of Artspace.
The City of Hopkins obligation under this paragraph shall only extend to those
materials which are in the sole custody and control of the City of Hopkins. The City
of Hopkins shall have no obligation to return property, documentation, records, or
confidential information which has been shared with a third-party, by either
Artspace of the City of Hopkins.
15.Capacity/Independent Contractor:
Artspace shall be deemed to be an independent contractor and is not an employee,
partner, or co-venturer of, or in any other service relationship with City of Hopkins.
The manner in which Artspace's services are rendered shall be within Artspace’s sole
control and discretion.
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16.Severability of Provisions:
Each provision of this Agreement shall be considered to be severable, and if for any
reason any provision that is not essential to the effectuation of the basic purposes of
the Agreement is determined to be invalid and contrary to any existing or future law,
such invalidity shall not impair the operation of or affect those provisions of this
Agreement that are valid.
Notwithstanding this provision, should the Section 12 of this Agreement be deemed
invalid, this Agreement shall automatically terminate, and the parties shall treat the
Agreement as terminated, pursuant to the provisions contained herein.
17.No Continuing Waiver:
The waiver by either party of any breach of the terms of this Agreement shall not
operate or be construed to be a waiver of any subsequent breach. Failure to pursue
such breach shall have no impact on a party’s right or ability to pursue future
breaches.
18.Binding Agreement:
This Agreement shall be binding on the parties hereto, and their heirs, executors,
personal representatives, successors and assigns.
19.Headings:
All section headings in this Agreement are for convenience of reference only and are
not intended to qualify the meaning of any section.
20.Terminology:
All personal pronouns used in this Agreement, whether used in the masculine,
feminine and neuter gender, shall include all other genders, the singular shall include
the plural, and vice versa as the context may require.
21.Confidentiality:
It is understood and agreed to that Artspace may provide certain information that is
and must be kept confidential (“Confidential Information”). The Confidential
Information to be disclosed may include, but is not limited to, technical and business
information relating to proprietary ideas and inventions, ideas, patentable ideas, trade
secrets, drawings and/or illustrations, existing and/or contemplated products and
services, research and development, production, costs, profit and margin information,
finances and financial projections, customers, clients, contact lists, survey responses,
marketing, and current or future business plans and models, regardless of whether
such information is designated as Confidential Information at the time of its
disclosure.
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To ensure the protection of such information, and to preserve any confidentiality
necessary under law, City of Hopkins shall not disclose any Confidential Information
obtained from Artspace.
Notwithstanding this Section, the City of Hopkins shall comply with all applicable
law, including the Minnesota Government Data Practices Act (the “Act”), Minnesota
Statutes, chapter 13. To the extent applicable, Artspace shall similarly comply wit h
the Act, pursuant to Minnesota Statutes, section 13.05, subd. 11.
[Page left intentionally blank; next page is the signature page.]
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date
shown on the first page of this Agreement.
AGREED TO:
Artspace Projects, Inc.
______________________________________________________________
Wendy Holmes Date
Senior VP, Consulting and Strategic Partnerships
City of Hopkins
_______________________________________________________________
Molly Cummings, Mayor Date
_______________________________________________________________
Mike Mornson, City Manager Date
Kersten Elverum
Director of Planning and Economic
Development
City of Hopkins
1010 First Street South
Hopkins, MN 55343
kelverum@hopkinsmn.com
Contact Information:
Teri Deaver
Vice President
Artspace Projects, Inc.
250 Third Ave N, Suite 400
Minneapolis, MN 55401
teri.deaver@artspace.org
(612) 465 - 0222
Please return executed contract
to: ATTN: Aneesha Marwah
Artspace Projects, Inc.
250 Third Ave. N, Suite 400
Minneapolis, MN 55401
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Exhibit A
Arts Market Study
City of Hopkins has invited Artspace to conduct an Arts Market Study of Individual
Artists to inform a potential development project. The “Project” will be defined as an
affordable, arts-focused live/work mixed use project. The purpose of this scope of
work (“Purpose”) is to provide City of Hopkins the data to inform the Project’s
development.
The survey(s) will collect data from artists living, working, and/or doing business
within a 50-mile radius of Hopkins, MN. The survey instrument is designed to assess
the demand for space, demographics, and specific space needs in the context of the
project.
Arts Market Study Scope of Work
1.Survey Preparation
a.Provide City of Hopkins Survey Template.
b.Provide City of Hopkins with online access to the Artspace Survey
Outreach Packet. The packet includes original documents to guide
outreach strategy, templates to organize the outreach effort, and
examples from other communities. This content can be used in
websites, social media, printed materials, and for coordinating events.
c.Create a timeline for the Scope, outlining tasks and target dates for both
Artspace and City of Hopkins, (“Timeline”).
d.Facilitate one kick-off phone call with City of Hopkins Staff to walk
through the Timeline and the Artspace Survey Outreach Packet,
review the template and goals of the study, and discuss the formation of
the Core Group (defined in Exhibit C), and answer any questions.
e.Create a customized survey instrument(s) based on the survey template
with up to three modifications.
i.Send City of Hopkins Staff customized survey instrument(s) for
review and input. The City of Hopkins Staff will have one week
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from delivery of the draft survey to review and test online
functionality and provide feedback or suggested edits (as defined
per Timeline). Main contact should compile all feedback and
edits from the Core Group into one document and submit via
email for Artspace’s review;
ii.If City of Hopkins Staff requests changes to the survey
instrument(s), one conference call may be held on or prior to
the Feedback Due Date (as defined by Timeline) to discuss the
proposed changes. If the City of Hopkins Staff does not provide
feedback by the Feedback Due Date, Artspace will
independently finalize the survey instrument(s); and
iii.Present a final draft to City of Hopkins Staff.
f.Create a web page to host the survey link, if requested.
g.Support outreach efforts by providing guidance and reviewing
promotional materials developed by City of Hopkins. All materials that
include Artspace’s name, logo and/or images must be sent to Artspace
for review prior to release.
2.Survey Launch, Focus Groups and Ongoing Support
a.Facilitate a conference call with City of Hopkins Staff to discuss Survey
Launch preparation, and confirm dates of visit and public launch event
no less than four (4) weeks prior to visit in order for Artspace to
coordinate travel.
b.Facilitate up to four (4) focus group meetings to gather input from
specific artist populations and a potential anchor tenant. These focus
groups can include:
i.Three meetings with individual artists that are often
underrepresented in online surveys but are important voices in
the Hopkins arts community. Suggested groups include: East
African artists, Latinx/Hispanic artists, and young artists
involved in the Hopkins hip-hop community. The City and/or
Core Group will coordinate the focus groups, with input and
guidance from Artspace. Artspace recommends that the City
designate one leader from each of the three target communities
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to assist with outreach. Artspace will be available for phone
calls and/or emails with these leaders to offer context and
recommendations on who to invite. These community leaders
should also be considered for inclusion in the Core Group.
ii.One (1) meeting with a potential anchor tenant to
discuss their space needs, capacity, timeline, interest, and
potential path toward pursuing a partnership as an anchor
tenant of a potential project.
c.Travel to Hopkins for a Survey Launch visit. Duration of the scheduled
visit will not exceed four (4) consecutive hours of consulting time with
client. Visit includes:
i.Presentation at public launch event. Presentation will include a
summary of the initiative to date, information about the survey and a
call-to-action to take the survey. Following the presentation,
Artspace will facilitate a question and answer period; and
ii.A meeting with the Core Group to review Survey Launch and discuss
outreach strategy moving forward.
d.Provide weekly survey updates to support outreach strategy.
3.Survey Analysis and Reporting
a.Oversee third-party analysts during data compilation and analysis phase.
b.Coordinate customization of the analysis, as requested by the City of
Hopkins Staff. Customization included in this Scope may involve:
i.Cross-tabulation of up to two additional survey questions. This
analysis will be provided in an electronic Excel spreadsheet or in
the report as appropriate;
Note: Cross-tabulation is only available on certain question types. City
of Hopkins should provide requests during or before instrument
development to ensure that the survey design will permit the request.
Artspace does not guarantee that all requests for cross-tabulation can be
fulfilled.
b.Deliver a Technical Report, prepared by the third-party data analyst
firm under Artspace supervision. The Technical Report articulates
methodology and summarizes statistical information on the individual
artists interested in space in the Project.
c.Artspace will provide a Recommendation Letter that interprets the
technical report in the context of the Project.
d.Compile and deliver Supplementary Materials, including:
i.Contact information of respondents to the survey(s) who wish
to receive follow up notices;
ii.Verbatim responses provided from open-ended text fields;
iii.Summary of total respondent data;
iv.Zip code data; and
v.Data summary from City of Hopkins’s customized survey
questions.
vi.Written summary of focus group meetings
Note: Artspace will not provide raw survey data under this contract.
e.Travel to Hopkins for a Presentation of Findings visit. Duration of the
scheduled visit will not exceed four (4) consecutive hours of consulting
time with client. Visit includes:
i.Presentation at one stakeholder meeting. This stakeholder
meeting can either be a public meeting or a smaller, invitation-
only meeting, as determined by City of Hopkins. Presentation
will include a recap of the initiative to date and a summary of
findings; and
ii.A meeting with the Core Group to discuss the results of the
survey, answer questions and discuss next steps.
Deliverables:
•Technical Report
•Recommendation Letter
•Supplementary Materials
All Deliverables will be provided digitally. Up to five (5) hard copies of the Technical
Report and Recommendation Letter can be provided upon request.
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Exhibit B
Timeline and Fee Disbursement
Budget and Hourly Rate
The fee for the proposed Arts Market Study is $35,000. This flat fee includes staff
time, deliverables, and travel expenses.
This contract is set up not to exceed the total fee of $35,000 as noted above unless
another agreement is put into place with a specific work scope. For additional
services, Artspace charges $250.00 per hour for its consulting work. This rate is used
for calculating fees owed due to early termination of the contract and for additional
work requested by City of Hopkins.
All additional work requested by City of Hopkins that exceeds the Scope as outlined
in “Exhibit A” is subject to additional charg es. Additional work, resulting charges,
and fee schedule must be agreed to in writing by both parties prior to commencement
of such work.
Additional Charges will be calculated using the hourly rate plus any out-of-pocket
and third-party expenses.
Timeline and Fee Disbursement
Scope of Work will commence upon receipt of deposit.
This timeline assumes that a contract is signed and an initial payment of $17,500 (1/2
of the work fee) is received in [MONTH PRIOR TO START, 2018]. The remaining
$17,500 would be due within 30 days of the delivery of the technical report and
recommendations.
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Exhibit C
Additional notes on roles and responsibilities of City of Hopkins
The City of Hopkins agrees to:
•Assign a main contact for City of Hopkins’s communication with
Artspace;
•Complete tasks and adhere to deadlines in agreed upon Timeline;
•Assume responsibility for all community outreach and survey
promotion, including the public launch and presentation of findings
events and the focus group meetings;
•Coordinate the agenda for visits with input from Artspace and
confirmation of travel availability;
•Define members of the Core Group, which should include 2 -8
individuals, and ideally at least one person from the arts community.
The Core Group’s tasks may include participating in survey
preparation, planning and conducting outreach, and coordinating the
public launch event. City of Hopkins Staff (or assignee) will remain the
primary contact for Artspace and make final decisions on behalf of the
Core Group and City of Hopkins;
•Maintain the confidentiality of survey respondents and only use
contact information obtained from the survey to provide information
specifically requested by the respondent, subject to any applicable
requirements contained in Minnesota Statutes, chapter 13; and
•Pay additionally to Artspace any reasonable and/or necessary costs
incurred by Artspace to rearrange or cancel travel itineraries as
requested by City of Hopkins or necessitated by changes initiated by
same.