The URL can be used to link to this page

Home My WebLink About4.i. Viewing oc Cottages Inc. Video (eight minutes) CITY OF ROSIIKOUNT EXECIITIVE SUMMARY FOR ACTION PORT AUTHORITY MEETING DATE: JANUARY 18, 1994 AGENDA ITE�I: VIEWING OF COTTAGES INC. VIDEO AGENDA SECTION: WORK SESSION PREPARED BY: JOHN MILLER, AGENDA NO. ECONOMIC DEVELOPMENT COORDINATOR 4 . I. ATTACHMENTS: NONE APPR D BY• � The "Cottages Lifestyles" promotional video will once again be available for viewing. The full running time is eight minutes. Once again, you should be aware that a field trip to North St. Paul to a Cottages Inc. site is also possible. � � � �� RECOI�II+�IENDED ACTION: None. Discussion item. PORT AUTHORITY ACTION: i�� o osemoun� PHONE (612)423-4411 2875-145th Street West,Rosemount,Minnesota MAYOR FAX (612)423-5203 Mailing Address: Edward B.McMenomy P.O.Box 510,Rosemount,Minnesota 55068-0510 COUNCILMEMBERS Joan Anderson Cathy Busho James(Red)Staats Dennis Wippermann INTERIM C�TY ADMINISTRATOR NOTICE OF SPECIAL MEETING Ronald E.Wasmund TO WHOM IT MAY CONCERN: Notice is hereby given that the Port Authority of the City of Rosemount in Dakota County, Minnesota will meet at Rosemount City Hall, located at 2875 - 145th Street West, Rosemount, Minnesota, at 5 : 15 p.m. , on Wednesday, the 2nd day of February,� 1994, for the purpose of discussing the redevelopment of the Carlson site. Dated this 21st day of January, 1994 . r c /. Date Posted: 1-21-94 Signature Edmund Dunn, Chairperson Place Posted: City Hall Rosemount Pc�rt Authoritv �ver�l�tng's �om.ing `Ul�i �osemoun�� c.,�,��. i�� o osemoun� PHONE{612)423-4411 2875-745th Street West,Rosemount,Min�esota MAYOR FAX (612)423-5203 Mailing Address Edward B.McMenomy P.O.Box 510,Rosemount,Minnesota 5506&0510 COUNCILMEMBERS Joan Anderson Cathy Busho James(Red)Staats Dennis Wippermann WTERIM CITY ADMINISTRATOR Ronald E.Wasmund NOTICE OF SPECIAL MEETING TO WHOM IT MAY CONCERN: Notice is hereby given that the Port Authority of the City of Rosemount in Dakota County, Minnesota will meet at the Rosemount Fire Station, located at 14425 Brazil Avenue, Rosemount, Minnesota, at 5 : 15 p.m. , on Monday, the 24th day of January, 1994, for the purpose of completing the January 18, 1994 meeting and agenda, which was cancelled due to the extreme cold weather conditions . Dated this 21st day of January, 1994 . � 1 / ��' _ ��`"r� �� Date Posted: 1-21-94 Signature Edmund Dunn, Chairperson Place Posted: City Hall Rosemount Port Authoritv �ver��ing's �omi�ng `Uf,�6 �osemounl�� L=recvcled vaper � � 7 /( � �, ...,�:'3{zac.-�. C��li \iU�"l..'�/i�'t,, / y C (i January 24 , 1994 Board of Commissioners Rosemount Port Authority Rosemount City Hall 2875 145th Street West Rosemount , Minnesota 55068 Dear Commissioners : As you are no doubt aware, Carlson Properties of Rosemount (CPR) and Guetschoff Theatres , Inc . (GTI ) have closed an the sale of the CPR land to allow GTI to build a major eight-screen movie theater in Rosemount . Rough grading and soil testing work has been completed and construction will begin shortly to allow for a grand opening next summer. We are pleased to bring first run motion pictures to Rosemount in first-class style. We understand, however, that you are considering making a below cost sale of land to the Mullers for a competing theatre. No one can reasonably contend that Rosemount needs two new multiplex theatres . We object strongly. This proposal violates good sense, good economics and a clear Rosemount policy that public subsidies should not be given to a new business that competes with existing businesses that meet the needs of the market . First , the amount of the Muller subsidy is incredible. Our rough calculation shows that it exceeds $451 , 000 . The figure is arrived at as follows : Cost of Land $500 , 000 Cost of Issuance of Bonds $ 80 , 000 Total Cost of Land Acquisition Before Development �580 , 000 Saleable Acreage Per SEH 50 Acres Cost Per Saleable Acre $ 11 , 600 Muller Per Acre Price $ 6, 500 Unrecovered Land Cost Per Acre $ 5, 100 Muller Land Subsidy ( $5, 100 x 10 Acres ) $ 51 , 000 Cost of Infrastructure Abutting Muller Parcel $630 , 000 Cap on Muller Infrastructure Costs $230 , 000 Port Authority Funded Infrastructure $400 , 000 Total Subsidy for Muller Parcel �451 ,000 The subsidy of $451 , 000 far exceeds the $295, 000 the Mullers would pay for the property. All this to require the construction of an unnecessary theatre is insane. Further, this would be the largest sinqle subsidy ever given to a private business in Rosemount . . . Second, a sale of the ten most valuable acres in your new business park at a price that is less than 60$ of your cost merely puts a cap on the value of all of the remaining acreage. Everyone who knows that Muller paid $6, 500 per acre (and everyone will know) will not want to pay more for property with poorer access and poorer visibility. You will thus never to able to recoup your other development and carrying costs . This is no way to run a railroad. It is even a poorer way to run a public agency. We have tried to be good citizens and taxpayers , proceeding without the benefit of any subsidy. We had hoped that our good faith actions would demonstrate that we were people of our word, providinq first-quality service to Rosemount . We had presumed that once we had done our part , any talk of subsidizing a competitor would cease. Were we wrong? We hope that you will show that our trust in the good sense of Rosemount public officials was not misplaced. Please do not damage both the City as well as us with ill advised actions that the law does not require you to take and that good sense says you should not take. Sincerely, GUETSCHOFF THEATRES, INC. CARLSON PROPERTIES OF ROSEMOUNT B V - �� _ y� � By �� .-----^�„�� a general partner � cc: City Council ;