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Home My WebLink About4.a.1. Report on Negotiations with Muller Family Theaters CITY OF ROSEbIOUNT FsXECUTIVE SUbIlKARY FOR ACTION PORT AUTHORITY MEETING DATE: MAY 17, 1994 AGENDA ITEM: REPORT ON NEGOTIATIONS WITH AGENDA SECTION: MULLER FAMILY THEATERS OLD BUSINESS PREPARED BY: JOHN MILLER, AGENDA NO. ECONOMIC DEVELOPMENT COORDINATOR 4. A. (1) ATTACFII2ENTS: NONE APPROVED BY: Mr. Miles and Mr. Burt are continuing negotiations with Bob and Mike Muller. They will have an oral report for the commissioners at the May 17 meeting. ; , RECON�lENDED ACTION: Discussion item. PORT AUTHORITY ACTION: e ` M E M O R A N D U M TO: Chair Kevin Carroll and Members of the Rosemount Port Authority FROM: Mike Mile /�f City Att'a�y DATE: May 18 , 1994 RE: Muller Family Theatre Project Please find attached copies of the two pieces of correspondence which have been exchanged since the last Rosemount Port Authority meeting. Since my letter to Mr. Tyson of May 12, 1994 , I have had no response whatsoever, from either the Mullers or their legal representative. Since the Port Authority has expended a significant sum of money in developing the approximately ten-acre parcel of land which the Mullers indicated they intended to purchase for their theater project and, since we have received no indication from the Mullers that they intend to meet to further discuss their project, I would suggest the Port Authority consider vigorously marketing this property to any other interested parties in order to mitigate its damages . � JMM:gmo att. � G ��1EILL, BURKE, O'NI�YLL . LEONARD & O'BRIEN )ohn B.Burke,l�• 'timothy M.walsh Jose�h T.O'Ndll* Arnomeys At Law Jaeeph)•Deulut,)r. Patricic H.O'Ndll• Thonus G Aanoee Briac►F.Lwnard* A Professional Aseociation Keren A.Ck�ama�Wc Mkheel R.O'Brim �R,� Lawren«A.Wilf«�dt 800 Norwesc Center 100 South Fifch Streec John T.Kdly �J•SP�K,lt" 55 East Fifd�Strat Suite 1200 Eric D.Coolc Ed"'°rd W Gak Sainc Paul,Mincusota 55101 Minnea Peoer H.Gdlls Po1is,Minnesota 55402 of couneet J�,��e Tdephone(612)227-9505 Telephone(612)332-1030 Davui E Crawford M�McQ�„R;�Coloon Fax(612)297-6641 Fax(612)332-2740 •��w� Gova C.Sayre,m tCadfled Reat PropMy Spedal�t °��T''°°"*t tt�ty To: Minneapolis �"°°�°��"°°�°°°^� �w.�mt Brlan F.Kidwell n`°�°Q''N`"'°°`"° May 9, 1994 Mr. J. Michael Miles VIA TELECOPIER - FAX NO. 612-438-9775 Fluegel, Moynihan & Miles, P.A. AND FIRST CLASS MAIL 1303 South Frontage Road Hastingsi MN 55033 Re: Your Client: The Rosemount Port Authority Our Client: Muller Family Theatres Dear Mr. Miles: I am in receipt of your letter of May 4, 1994. While it may be true that you offered a number of dates for meedng purposes, I have indicated to you on a number of occasions that merely to set up a time to meet is not going to answer the questions my clients wish to have answered. Specifically, is the City willing to live with the proposal which it approved in August, 1993 regarding the development of a movie theatre complex by my clients in the City of Rosemount within the City's business park? This neE:ds to be the starting point for the discussions. If not, it will be my client's position that the City does not intend to fulfill its promises to my client with regard to the construction of a movie theatre complex by them in Rosemount. My client has expressed to me concern that the City, although appearing to be cooperative, is apparently just setting up meeting times for the purposes of being able to use this effort as an excuse to say my clients refused to meet. This is not the case, my clients would � wiiung tu meet, however, the discussion must focus on i12e projec;t they were cnosen to deveiop. I also requested that you forward to me the City's written proposal for meeting which shows a willingness to meet my clients expectations, which we have never seen from the �ity, which details the economic terms as well as the timetable for the project. Very truly yours, ' L, BURKE ' L, LEONA O' By ie son DRT:cmr cc: Mr. Michael Muller Mr. Robert Muller ��'�� i � ig9� Attorneys At Law 1303 South Frontage Road Hastings, MN 55033 Telephone 612-438-9777 F FLUE GE L MOYN I H A N & M I L E S, P.A. Fax 612-438-9775 Donald J. Fluegel Shawn M. Moynihan J. Michael Miles Joan M. Fluegel May 12, 1994 Daniel R. Tyson, Esq. 0'NEILL, BURKE, 0'NEILL, LEONARD & 0'BRIEN 100 South Fifth Street Suite 1200 Minneapolis, MN 55402 Re: Muller Family Theatre Project Dear Mr. Tyson: This letter is in response to your correspondence of May 9 , 1994 . Hopefully, it will be the last letter that needs to be written before we can sit down with you and your clients to see if there is a basis on which the Muller Theatre project can go forward. Unfortunately, however, it is again necessary to correct several misstatements which you made in your correspondence. First, you make reference "that the City does not intend to fulfill its promises to my client with regard to the construction of a movie theater complex by them in Rosemount. " Let's set the record straight on this illusion once and for all . The facts are that your clients submitted a proposal to the Rosemount Port Authority on July 28, 1993 . On August 3, 1993, the Rosemount Port Authority accepted your client' s proposal, conditioned upon the fact that a development agreement be negotiated and executed by not later than August 17 , 1993 . The development agreement alluded to in the City's authorizing resolution was not concluded by August 17th and, as a matter of fact, to this day the City and your clients have not en_tered into a development/purchase agreement. Thereafter, your clients apparently made a political decision to withdraw your July 28th proposal and seek conventional financing for the movie theater complex. Clearly, the passage of the August 17th deadline and your client' s withdrawal of its proposal effectively eliminated any obligation the Port Authority owed to your clients . Nevertheless, City officials have continued to try and work with your clients to i ~ Daniel R. Tyson, Esq. • May 12, 1994 Page 2 enter into some form of agreement through which a movie theater would be constructed in the Rosemount Business Park . Indeed, the Port Authority is still extremely interested in pursuing the Muller Theatre project in a financially feasible manner. Contrary to what you state in your letter of May 9th, we are not attempting to set up meeting times "for the purposes of being able to use this effort as an excuse to say my clients refuse to meet . " We sincerely want to determine if the project may proceed and the City has taken many costly steps, which I detailed in a previous letter, to put it in a position to sell attractive land to your clients . As to the "starting point" you propose, which is essentially a resubmission of the proposal withdrawn in August of 1993, I do not have the authority to bind the Rosemount Port Authority to such a new proposal . However, City Administrator Tom Burt and I would be most pleased to meet with you and your clients to discuss whatever basis your clients now propose for undertaking the project. At the conclusion of that meeting, Mr. Burt and I will be glad to take this to the Port Authority for its consideration. I believe the best way to progress this project is through the medium of a meeting at which all parties can express their ideas and concerns . Mr. Burt and I will be as flexible in our schedules as possible to meet at the convenience of you and your clients . Please advise. Sincerely, FLUEGEL MOYNIHAN & MILES, P.A. J. Michael Miles .TMM:gmo cc; Tom Burt, City Administrator