District
Court rules that it was the city -- not Black Bear -- that breached agreement
by Tesha M. Christensen
Black Bear Crossings on the Lake at
the Como Pavilion won the legal dispute between the restaurant and the city of
St. Paul, but they’ve decided to close at the end of 2014 anyway.
Citing a breach of the management
agreement, last fall St. Paul decided not to renew its contract with Black Bear
Crossings. On May 15, 2014, the district court in Ramsey County ruled that it
was the city that had breached the management agreement with Black Bear
Crossings by denying Black Bear’s request for an extension to continue
operating through 2018.
The court also ruled that the city
“is liable to [Black Bear] for any money damages caused by its breach of the
agreement.” Citing the “bitter dispute” over the city’s breach of the agreement,
however, the court did not require the parties to continue doing business
together.
The court found that the terms of the
agreement were “clear and unambiguous” and that the city had “failed to come
forward with evidence” that would justify its refusal to extend the agreement.
In a previous ruling, the court found that statements the city made to the
local media about Black Bear caused “irreparable harm” to Black Bear’s
business.
Specifically, the city had alleged
that Black Bear paid its rent late for the past four years; did not provide the
city with three bids for each project it undertook; and submitted receipts two
years late. Additionally, the city had said that Black Bear did not submit its
financial records to the city for review in a timely manner. The city requested
the records on May 15, 2013 and expected them within 15 days. They were
provided in August 2013.
The city had also pointed out that
there are almost 4.4 million visitors at Como each year, and expressed concern
that the cafe had not shown the level of sales that would be expected from a
successful establishment in that location.
Pamela and David Glass (a member of
the White Earth Band of Ojibwe) opened Black Bear Crossings in 1997 and moved
to the Como Pavilion in 2000. During the Glasses’ tenure, a patio was built on
the lakeside of the pavilion, and two perennial gardens created. A concession
stand was added on the lower lever of the pavilion, and the cafe also handles
paddleboats and canoe rentals.
“For 17 years, Pam and I poured our heart and soul into Black
Bear to make it a destination for the community worthy of Como Park’s rich
heritage. We received countless awards and accolades for our service and now a
court of law also recognized our contributions,” said David Glass.
“The Glasses will pursue damage
claims against the city to compensate them for the irreparable harm that the city
caused to their business both in breaching the contract and making erroneous statements
to the media that their breach was justified, which a court has now found to be
without merit,” said Black Bear’s lawyer Jan Conlin of Robins, Kaplan, Miller
& Ciresi L.L.P.
City Park and Recreation staff opted
not to comment on this issue, citing the city’s policy of not commenting on
pending litigation due to legal constraints.
MOVING FORWARD
Events can still be booked with Black
Bear Crossings through the end of 2014; however, no new bookings will be
accepted for dates after Jan. 4, 2015. All event already booked for 2015 or
2016 will continue to be honored by the city (and the new partner). Customers
may also elect to cancel their event and request a full refund.
Over the next several months, the
city will complete a competitive selection process for finding a new vendor for
the management of the Pavilion. In June, the city collected feedback and ideas
via an online survey. Browse http://www.stpaul.gov/index.aspx?nid=1146 to stay informed.
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