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Home My WebLink About4.c. Discussion of the "Steubner Strategy" for Development of the Business Park CITY OF ROSFIVIOUNT EXECUTIVE SLTPvIlVIARY FOR ACTION PORT AUTHORiTY CONIlvIISSION NIEETING DATE: JANUARY 4, 1994 " "` `..� ' ' AGENDA ITEM: "Steubner Strategy" for Business Park AGENDA SECTION: Development Old Business PREPARED BY: John Miller, AGENDA NO. Item 4.C. Economic Development Coordinator ATTACfII��NTS: Staff Report from December 21, 1993 APPR B : � The Port Authority did not have time to consider this item at its December 21 meeting. Please see the attached materiaL 0 RECO?1�i�IE��ED ACTIO�: MOTIOI�T to refer tl�e item to the Promotions Sub-Committee for � consideration and recommendation. PORT AUTHORITY ACTION: , CITY OF ROSEMOIINT � EXECUTIVE SUi�2A.RY FOR ACTION PORT AUTHORITY MEETING DATE: DECEMBER 21, 1993 AGENDA ITEM: THE STEUBNER STRATEGY FOR AGENDA SECTION: BUSINESS PARK DEVELOPMENT WORK SESSION PREPARED BY: JOHN MILLER, AGENDA NO. ECONOMIC DEVELOPMENT COORDINATOR 4 .D. (5) ATTACF�+iENTS : BUILDING SKETCHES FROM VANNEY OV BY: ARCHITECTS, NlEMO FROM J. MILLER , �� Please see attached. RECO2�+�_END�D ACTT_02�T: D�scussian item. Poss:ible reference to business park promotion subcommittee. PORT AIITHORITY ACTION: M E M 0 TO: Chair Dunn Commissioners Anderson, Carroll, Edwards, MeMenomy, Sinnwell, Wippermann FROM: John Miller, Economic Development Coordinator DATE: December 16 , 1993 RE: The Steubner Strategy for Business Park Develapment The most successful business park developer I know is Brooklyn Park' s Jim Steubner. It was in the 1960' s that Steubner bought more than 200 acres of Brooklyn Park potato fields that were visible from I-694 but nat accessible . For years Steubner worked to get access from the freeway and finally was successful in getting the Boone Avenue interchange constructed. I was a fresh-out-of-school �lanner at t�-?e _ : Highway Department at the time and did some traffic projections for � Boone Avenue and I remember wondering how anyone could think an interchange was justifiable. There was nothing there. Steubner was a salesperson though. First of all he sold Brooklyn Park and the Highway Department on a folded diamond interchange. Then he sold 200 acres of industrial land. Oh, it did take him 25 or 30 years but he did get the job done. It should be remembered too that wher_ Steubn�r was ac�ive in marketing his property, th� north side was not a hotbed of business activity. The "southside syndrome" was alive and well and anybody who knew anything would tell you that any ctuality or large scale development would most likely end up on the south side. Tha�' s now tnings wo�ked in the mAtropolitar_ are�, plain and simple. T'r.e north side was the home cf the 3-b' s of beer, bowlir�g, and blue �.�i�Gr.��. ....�� :Q�.. :rt�u�:-_ ��5� . . . . . . . O :. `I'Z1@Y'? are a COL'p�? O� simila=ities between St2i1�?72Y'' S j�r�St situation a�d p�eser�. day �cos�:r.oun;. . First, tn� city can easii.y� be perceiveci "as too �ar out° just as Brooklyn Park was when the Beatles were still po�ular. And sQcor_d, the southeast part of �he metropolitan area is ='-J= G�= G=�� Wy��_ c, i;1� cz11Q Q�OWIII,C, ,pL1S1rieSS .fJr�S�, ;riOSt business 1S i:1 some othe� part c� ;.h� metropolitan area. This means there will be little spin-off development occurring in Rosemount . � So how did Steubner do it? hThat was his strategy? Simple, he put up a building. He didn' t sell it but he leased space to smaller tenants keeping ownership nimself . Some of the tenants went broke, others moved away, and a few brospered. Those that prospered were offered space in a l�rger Steubner owned building or offered land on which to build. This strategy coupled with a lot of hard work and a lot of cold calling on business prospects worked. Steubner beat the southside syndrome and developed his business park. Now just for the record, Steubner in his later years developed a Midas syndrome believing he was infallible. He built a large hotel, I think called Northland Plaza, and ended up filing bankruptcy when the hotel failed. But still the Steubner model should be of interest to us in Rosemount. I�ve visited with Bob Vanney, you' l1 remember he' s the architect �hat' s done some work for Rosemount and worked with the port authority in studying Nardvick' s building as a possible site for Repairs, Inc. Attached are a couple of rather generic plans for multi-bay buildings, one planned for Apple Valley and one for Cambridge. Today the most marketable bays are about 2, 500 square feet with room for offices in front and warehousing or assembly in the back. Usually each bay has a separate office entrance and loading door or dock. Construction costs range form $17. 00 to $30 . 00 per square foot and in today' s market can be leased triple net for about $8 .00 for the office area and $4 . 00 ior the remainder. With the higher construction cost better grade exteriors including some brick can be had. Y�S �C�Gi �'„1.�'?�.riCJ CO9�S C�:: b� ?:1�C?:. A '"2:": �G�., h,.:.�ir?�::� :•:��1:'•`'?5 , �v� , • square feet at the high end cost of $30 . 00yis $750, 000 . Of the calls received in the office, more than half of them are for small spaces - not necessarily retail . I have briefly visited with Diane Pir_kert about the local market and she also has received calls about smaller non-reta�l spaces . She ras no lis�ings_ I've discusszd the proposal with only a handful of people locally and one persor_ has a1�=ady expresspd an interest ir_ leasing a bay. Could this also be Y�venue producer fo� the port authority? ?resentiy �he port autnority' s subcommittee on marketing is studying di�ferent ways of promoting the business park. Developing a business �ark sales strategy that includes at l�ast one port author�.ty ownec ..,..._��.._;y �S ... II1G CY' Q=C15i0:1 GAC.�'' .. ._S ra r T � ` S- �, � � � �n -_ =� _g� d wGnt d �o e �:r�- ia�a with the full boarci. If you see�any merit in the strategyyat all I would recommend asking the promotiarl committe� f o� � y�commAnda`�or af��r �.�s s`udy �na �eview. �Gl T .�i a.�.�.e tiT ��.ssociates _�rchitects � Planners Q RT('R �� ,N+i-kl',C�t,�� Nel�on H�^_d�cr�w � �,c�� ,,�� - ��oom_r�-=- :.,r. — GO1J C�'IC�.1 ��` � 17 .�� - ��,c;c. �� _�. _ �,� L �£� � 17 DOt� . � - v�T��VG:�.�. •r=.... . � n- � _ �. � -– -� '� ` — � . 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APi�t.E VALLFY 91.�,SINES3 CEMTEA AM'l.E VKLEY.�ESOTA . � o � ' . � . � � � . �Vanney �.s�ociates Architects . ' Planners OFRTCS SHQWRCI[1htS * Nelson Handscrew * Dakota Business Plaza - Bloomingtan, Mn. - Mendota Heights, Mn. - 35,000 sf - 49,000 sf - 1 story - 1 story - Office and Manufacturing - Office and Showroom * Rubber Research * Anoka Business Center - Fridley, Mn. - Osseo, Mn. - 150,000 sf - 42,000 s� - 1 story - 1 story - Office and Manufacturing - Office and Showroom * Apple Valley Business Center - Apple Valley, Mn. - 80,Q00 sf - 1 story - Office and Manufacturing * Rush Lake Business Center - Phase I - New Brightor., Mn. - 44,000 sf - i story - Office and Showroom * Rush Lake Busi.ness Center - Phase II - New Brighton, Mn. - 26,QOQ s� - i story � - Office and Showroom . * VFG Building - - Brooklyn Park, Mn. - 150,000 sf - 1 story - Office .and Warehouse * . DeVries Bar Grindi.ng , - Minneapolis, Mn. - 15,000 sf - 1 story - Office Additicn 3440 FEDERAL DRIVE EaQan. Minnesota