HomeMy WebLinkAbout6.a. Motel Development Review `� � CITY OF ROSEMOIINT
EXECUTIVE SUMMARY FOR ACTION
PORT AUTHORITY MEETING DATE: MARCH 2 , 1994
AGENDA ITEM: MOTEL DEVELOPMENT REVIEW AGENDA SECTION:
CONSULTANT/STAFF REPORTS
PREPAR.ED BY: JOHN MILLER, AGENDA NO.
ECONOMIC DEVELOPMENT COORDINATOR 6 . A.
ATTACfII�iENTS: CORRES . FROM JOE COMMERS OF AP OVED Y:
COMMERS CO. , LAPPIN & ASSOC. , MILLER MEMO �
Please see attached memo.
RECODII�iENDED ACTION: Discussion item only.
PORT AIITHORITY ACTION:
,
MEMO
TO: Chair Carroll
Commissioners Anderson, Busho, Edwards, McMenomy, Staats, Wippermann
FROM: John Miller, Economic Development Coordinator
DATE: February 24, 1994
�: Motel Development Review
A few weeks ago I advised the board that the Carlson family had been approached by a motel developer.
After that contact was made I unposed on myself a little motel development hiatus because certainly the
best deal for the city is one that is totally private. Obviously if the private sector can provide a service and
finance a deal without public assistance, it's best the public sector let it happen. There's less work, less
bureaucracy, less cost, and absolutely no risk to the public.
Recently, however, the commissioners were approached by Associated Developers who proposed
redevelopment of the Carlson Tractor site for a car care center. The board expressed some interest in the
proposed project. After this change on the Carlson Tractor site I again began seeking motel develope.rs.
Attached for your review is a letter from Joe Commers relating his contact with Central Group
Development Company located in St. Cloud. Central Group is a franchisee of Carlson Suites, the kind of
up-scale development the commissioners have indicated they want for the city.
I have made available to these people several copies of the Chase-Brackett feasibility study which I
understand they are presently reviewing. In visiting with Commers and Terry Lappin, I have indicated the
following:
l. The preferred site is the northwest corner of the business park at the end of the cul-de-sac and
adjacent to County Road 42 and the Muller lot.
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2. The port authority would seriously consider fmancing up tc� 75 ercent of the project cost.
3. Land and utility costs are negotiabl ,but mos�t likely would,ibe w 'tten down provided a quality motel
franchise is offered. �
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4. Private investment in the form of hard cash would definitely be required by the commissioners. I
have suggested that an internal rate of return of 20 percent for the private investors should be a
guideline in preparing a proforma.
I believe that these statements fairly reflect the position the port authority has evolved to over the past
several months. If they are not I ask that the board members provide me with other guidelines for my
discussion with the motel people.
dw
, . � COMMERS
35 W.WATER STREET,SUITE 201 COMPANY
R E A L E S T A T E ST.PAUL,MN 55107 612-227-4254
INVESTMENTS,DEVELOPMENT,CONSULTATION FAX 612-227-1508
February 18, 1994
Mr. John Miller
Economic Development Coordinator
2875 145th Street West
P.O. Box 510
Rosemount, MN 55068-0510
Dear Mr. Miller,
Mr. Terry Lappin and myself have met with Mr. Roberts Pace,
Jr. , President of Central Group Development Co. of St. Cloud,
Minnesota. In addition, Mr. Rodney Lindquist, Vice President of
development of Central Group was also present. We would like to
register these two people and their company as potential parties
that could be interested in developing 40 to 50 hotel units in
Rosemount.
Based on your initial market study being viewed favorably we
will be introducing you to these two people in the near future.
Thank you and we�re looking forward to taking the next step
in our process of evaluating the merits of this project.
Sincerely,
C,
�
Jo ph E. Commers
Pr. ident
cc: Mr. Terry Lappin
Lappin & Associates
1518 S. 7th St.
Minneapolis, MN 55454
,
r-
LAP P I N
& ASSOCIATES
February 22, 1994
Roberts H. Pace, Jr.
President
Central Group Development Co.
2700 - lst. St. N. , Suite 202
St. Cloud, Minnesota 56303
Dear Mr. Pace:
Mr. Commers and Z met with John Miller, Economic Development
Coordinator, City of Rosemount on Tuesday, February 22 at his
office. We had on speakerphone Jerome L. Hertel, Vice President
at Juran & Moody, Inc. of St. Paul.
I am enclosing the Chase - Brackett Company Market Overv�ew of
April 19, 1993. Also, I have included a briefing pamphlet re-
garding GTI Rosemount Theater and Rosemount Village Square, two
projects currently under development.
The assumptions regarding the willingness and ability of the
City of Rosemount to negotiate on the site acquisition and as-
sumptions regarding long term financing assistance are correct.
Also, a potential involvement of Bank Windsor is possible. I
think we can best expand on all of these areas for discussion
after your review of the market overview.
We are ready to continue working on your behalf. It is important
to rea h me tentative conclusions no later than March 4.
Si ,
e J. Lappin
on lta
Lappin 8�Associates 1518 South 7th Street Minneapolis, Minnesota 55454 612-339-7555