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Home My WebLink About7.a. Consideration of Disposition of the "Schneider Property" � CITY OF ROSEMOUNT EXECIITIVE SIIbIMARY FOR ACTION PORT AUTHORITY MEETING DATE: SEPTEMBER 20, 1994 AGENDA ITEM: PROPOSAL FROM BETTY JO' S DANCE AGENDA SFsCTION: CENTER NEW BUSINESS PREPARED BY: JOHN MILLER, AGENDA NO. ECONOMIC DEVELOPMENT COORDINATOR 7. A. ATTAC�lENTS: MEMO, CORRESPONDENCE FROM RSMT AP OVED Y: NATIONAL BANK, SITE LOCATION MAP, SITE PLAN Please see attached memo. RECOD�IIKENDED ACTI M tion to direct the port authority' s executive director to hav�(��l�. a development agreement with Betty Jo an Steven Schmitt for the construction of Betty Jo' s Dance Center. ��gStr�g,�to set a public hearing on the sale of the "Schneider Property" for 5 :30 p.m. , October 4, 1994 . PORT AUTHORITY ACTION: MEMO TO: Chair Carroll Commissioners Anderson, Busho, Edwards, McMenomy, Miller, Wippermann FROM: John Miller, Economic Development Coardinator DATE: September 16, 1994 RE: Betty Jo's Dance Center Proposal Betty Jo and Steven Schmitt have expressed an interest in relocating Betty Jo's Dance Center to the former Schneider property. This is a site located near the corner of 147th Street and Burma Avenue. Please see the map. The attached site plan shows construction of a 3576 square foot structure on the property. The Schmitts are requesting that the three residential lots be sold them for a dollar. The port authority would retain all the resulting ta�� increment fmancing. Let's look at some potential benefits and problems from the relocation. Here are some benefits: • The new building would generate needed ta.x increment financing revenue needed to support the HRA's senior housing project. � A Rosemount business would be retained. If Betty Jo's Dance Center does not locate on the Schneider property, then a rental location in Apple Valley or Eagan will be sought. • Additional traffic to the downtown will be generated. Betty Jo Schmitt has about 300 students attending lessons each week. Having the parents in the downtown area for drop-off will be of benefit to other downtown businesses. • Additional rental space will become available in Dr. Detlefsen's building. The present location of the dance center. Other tenants of Dr. Detlefsen have expressed an interest in that space. The move of Betty Jo's will permit them to expand. • The new building coupled with Quik Trip, Rosemount Professional Building, and pending improvements to the street scape near Arlyn Cope's building, all add to the momentum of an improving downtown. Here's a potential problem: • What about the long term use of the block? If a large development is possible for the block, will the existence of Betty Jo's new building preclude new large scale development? And, in a worst-case scenario is the port authority going to be forced to repurchase land it sold for a dollar, at a cost at or above market price? Let's address this issue. The city has owned the Schneider property since 1988. The only identified use for the property was senior housing and that site has since been moved to Cameo Avenue. No private sector interest in the property has been identified. With Betty Jd s Dance Center on the property the west half of the block, that part adjacent to T.H. 3, is still available far redevelopment. In addition the residential properties north of the site could be added to any forthcoming commercial or office project. And finally, Ron Wasmund, the city's community development director, has suggested that Betty Jo's building be located on the south half of the property. That would have only parking on the north side of the Schneider property. In the future the parking lot would be available for redevelopment if needed and the residence at the corner of 147th Street and Burma could be acquired for Betty Jo's Dance Center parking. As I noted in my earlier memo on this subject, the Schmitts are at a decision point in the project. For them to continue they must start to spend a fair amount of money in appraisals, platting of land, and architect's fees. Before they incur those costs -- and they are willing to do so -- the 5chmitts want to know if the proposal looks accepta.ble to the port authority. To provide approval of the project the port authority must: • Enter into a development agreement to transfer the property to the Schmitts provided the Schmitts build the dance center. Of course there would be a reverter in the agreement for the port authority to regain title to the land if the 5chmitts did not perform. • Review and approve site plans. • Hold a public hearing on the sale of the property. • Receive city council approval of the project. The Schmitts would also need to get planning commission approval of the site plan. It should be added that the Schmitts are under some time restraints. Their lease expires at the end of December so fall construction is necessary. 2 At this point the commissioners should hear Betty Jo Schmitt's request and decide if the dance center is a proper use of the land. If it's decided that it is, then the commissioners may want to comment on some design issues. Should the building be located on the south side of the property? What about the exterior treatment of the building? To continue the project if that is the commissioners' choice, the members should implement the recommended action. dw 3 Rosemount National Bank 15055 Chippendale Avenue South ARCADE OFFICE P.O.Box 439 1351 Arcade Street Rosemount,MN 55068-0439 St.Paul,Mn 55106-1801 612 423-5000 612 772-2541 September 14, 1994 Re: Bettv Jo' s Dance Center , Inc . New Building Proposal To: Rosemount Port Authority Betty Jo Schmitt has presented her preliminary plans for ccnstructing a new building for Betty Jo' s Dance Center , Inc . on land currently owned by the Rosemount Port Authority. Rosemount National Bank will be pursuing a financing commitment upon receipt of additional information from Betty Jo regarding the scope of the building costs . 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Dear Mr. Burt: .�� : .�,r; r � - : - �:� -�� . .. - � � � ;; ,.This letter �s �o advise yoa that Ron and. Cliff Carlson fiave retained our firm to assist in the ' �.,preparation o�t�e Taxy In�rement Financi�g application far the development o�their site. _ � We:have had the opportrinity to meet on three occasions and I expect to comp�ete the request � t�� the end�af this�week. T understarid that }�our Port Authority meefs on the firsf and third ��uesday"of each month.� : n Plea.se actvise the Port Authorit;��of our progress at your meedng on September 20, 'V�e would J. � request to be on your agenda for your next meeting, October 4. ' . 'Please contact me if you have additional questions.�or corriments. Sincerely, � - UBLIC RE O E ROUP, �NC. - , � Patrick W. Pelstring - . : Y Chief Executive Officer � ' � : . . PWP\dp - : � � � , cc: C: W. Carlson � Ron Carlson 4205 Lancaster Lane Nor'th�♦ Suite 1100 ♦ Minneapolis;Minnesota 55441 ♦ (612) 550-7979 ♦ (612)550-9221 Fax - $ � -