HomeMy WebLinkAbout6.a. Carlson Development Proposal ly,s�:"-�- t_�.. � r'� �`�
CITY OF ROSEMOUNT
�, .h � E�ECtTTIVE SiTMMARY FOR ACTION
�"C1`TY COUI�.zCIL MEETING DATE: AUGUST 3 , 1993
AGENDA ITII+�: CARLSON DEVELOPMENT PROPOSAL AGENDA SECTION:
NEW BUSINESS
PREPARED BY: JOHN MILLER, AGENDA
ECONOMIC DEVELOPMENT COORDINATOR �'� if..lY1 �
ATTACF�IENTS: PROJECT PLAN/BUDGET ROSEMOUNT APP VED BY:
VILLAGE SQUARE, MEMO FROM JOHN MILLER, OTHER
SUPPORTING DOCUMENTATION
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Please see attached memorandum.
RECOI�II�lENDED ACTIC?N: Motion to approve port authority financial
participation in the Rosemount Village Square project, not to exceed
$250, 000 in present value on a city tax abatement, pay-as-you-go basis.
The payments shall not extend beyond ten years.
COUNCIL ACTION:
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MEMO
TO: Mayor McMenomy
Councilrnembers Klassen, Staats, Willcox, Wippermann
FROM: John Miller, Economic Development Coordinator
DATE: July 30, 1993
RE: Carlson Development Proposal
The Rosemount Port Authority is required by law to gain city council approval of any
project in which it wishes to participate.
Recer�tly the port authority reviewed the Rosemount Village Square project as
proposed by Carlson Properties of Rosemount. This development would occur on
approximately 7.2 acres of land located on the south side of County Road 42. A
preliminary site plan showing locations in greater detail is found in the attached
document titled °Draft Proposal Project Plan and Project Budget Rosemount Village
Square.°
Highlights of the proposal, however, are as follows:
• 52,000 square feet of building area
• Grocery store anchor of 25,000 square feet
• Total cost of $3,610,000
• Estimated property tax payments of $200,000 to $227,000
• Projected creation af 62 full-time and 143 part-time jobs
The proposal is before the city council because the Carlsons are requesting financial
assistance from Rosemount to complete the project.
At its July 20 meeting the port authority endorsed the payment of the present value of
$250,000 to the Carlsons, slightly less than seven percent of the project's cost. This
payment would be made on a pay-as-you-go basis from revenue the city would receive
from property taxes paid by the Carlsons.
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With the pay-as-you-go, the city sells no bonds and hence incurs no financial risk.
Similarly, if the Carlsons do not build the project or if they build only a scaled down
version, the city has no obligation to pay the Carlsons.
How would the payment work? If the Carlsons pay $200,000 yearly in property taxes
and if the city's share of that is $50,000, the council would enter into an agreement
with the port authority to transfer $50,000 annually to the port authority. In turn the '
port authority would have a development agreement with Carlson Properties to pay
them $50,000 annually. This would continue for a specified period of time as agreed
to in a development agreement.
The city's bond counsel, Briggs and Morgan, has reviewed this finance tool and has
found it is legal.
Carlson Properties is presently working with the city's engineering and planning
people on site plan review and infrastructure items. These issues are distinct from this
financing proposal. Upon city council approval of the port authority's request for
"Project Plan and Project Budget Approval," the port authority would enter into a
development agreement with Carlson Properties. The other details would be resolved
just as the planning commission will resolve site issues.
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'� CITY OF ROSEMOUNT
g EXECUTIVE SUMMARY FOR ACTION
PORT AUTHORITY COMMISSION MEETING DATE: JULY 20, 1993
AGENDA ITEM: PROPOS.AL FROM CARLSON PROPERTIES AGENDA SECTION:
TO DEVELOP A NEIGHBORHOOD COMMERCIAL CENTER OLD BUSINESS
PREPARED BY: JOHN MILLER, AGENDA NO.
ECONOMIC DEVELOPMENT COQRDINATOR 4 . A.
ATTACHMENTS: DRAFT PROPOSAL SUBMITTED BY APPROVED BY:
CARLSON PROPERTIES, CORRESPONDENCE FROM TOM
HEIBERG DATED JULY 1, 19 9 3 , MEMO FROM JOHN ���,i��
MILLER, SPRINGSTED INC. PROJECTIONS �� �,
Please see the attached proposal from Carlson Properties of Rosemount, my
review, and other supporting docurnents .
RECOMMENDED ACTION: Motion to approve participation in the development
of the Carlson Neighborhood Commercial Center as outlined in Rosemount
Village Square proposal submitted by Carlson Properties of Rosemount
contingent upon city council approval of a °Project Plan" and "Project
Budget. "
PORT AIITHORITY ACTION:
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MEMO
TO: Chair Dunn
Commissioners Anderson, Carroll, Edwards, McMenomy, Sinnwell,
Wippermann
FROM: John Miller, Economic Development Coordinator
DATE; July 16, 1993
RE: Carlson Center Proposal
I have received the proposal to construct a neighborhood commercial center submitted
by Carlson Properties of Rosemount. The highlights are as follows:
� Carlson proposes to build approximateiy 52,000 square feet of retail
space anchored by a 25,000 square foot grocery store. A second phase
would increase the grocery store to 40,000 square feet.
• The second anchor has not yet been identified, it may be a di-ug store.
--- • The county asse�sor has reviewed the project and has given an estimated
market value of $4,00O,OOQ. Annual property taxes are estimated at
$227,246 with the city's share being $52,1Q9.
• Carlson's project is estimated to create 62 full-time jobs and 143 part-
time jobs.
• Financial assistance from the port authority in the amount of (present
value) $250,000 is requested in the pay-as-you-go format.
• Carlson has submitted financial data showing the actual cost of�212,298
square feet of land to be $645,645 or $3.08 per square foot.
• Carlson has provided a response to my letter af June 23 regarding:
1. Gateway's commitment to the project.
2. Potential tenants.
3. Calculation of land values.
4. Market anaiysis for the grocery store.
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These are all issues raised by commission members.
• The Carlsons have met with Dakota County representatives regarding the
issue of road access. It has been agreed that access from County Road
42 will be permitted.
• City planning and engineering staff have met with the Carlsons regarding
site plan issues. An application for site plan review has been received by
the city. At this time it appears all site plan issues can be resolved.
• The city's financial assistance to the project has been reviewed by
Springsted, Inc. and by bond counsel Briggs and Morgan. No
unresolved legal issues were identified.
� Construction would start in 1993 with initial occupancy in March of
1994.
Other issues regarding the Carlson proposal:
� Competition with the existing grocery store has been used as an
argument against the project. I would reject this argument for two
reasons:
l. Presently most dollars spent for groceries go outside the city,
ergo, local shoppers must-want other shopping opportunities. --
2. To the best of my knowledge, the present owner of the existing
grocery store knew of the Carlson-Gateway Foods propc�s�l when
he purchased the store, as did the wholesaler. The risk of
competition was understood and accepted.
• Carisons center will hurt the city's traditional downtown. I would reject
this argument based on these reasons:
1. The Downtown Scoping Committee has determined that the C.R.
42 commercial area and the traditional downtown are dependent
upon one another. In this regard the only area where new large
scale projects are possible is C.R. 42 as it's the only place where
enaugh vacant land is available to support them.
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Shoppers at C.R. 42 are mare likely to support other downtown
businesses than are shoppers doing business in Apple Valley, i.e.
traffic in one area helps the other. Don't we all expect the theater
to help downtown Rosemount?
2. Can anyone name a successful commercial area or city with one
grocery store, one used car lot, one bookstore, one clothing store,
one clothing store, one drug store, one gas station.
• Financial assistance is not really needed by the Carlsons' projecf. Here's
the case against that argument.
1. The land has all utilities in and has good visibility from County
Road 42 with an ADT of 13,000 vehicles. If a self-supporting
project were possible somebody would have built it. They
haven't.
2. There is no correlation between a property owner who is
personally financially secure and a economically feasible project.
Did Apple Valley provide assistanee to wealthy people to locate
businesses in that city? Did Bloomington help the Mall of
America owners? Minneapolis?
• The Carlsons will not pay back any assistance.
1. Property taxes generated from the project will pay all the public
assistance costs. At about the same time, about $170,000 in
property taxes will annually be paid to o�her taxing jurisdictions.
Final Analysis:
With a relatively modest investment of appro�cimately $250,000 Rosemount gets a big
� return: it gets over 200 full and part-time jobs, $4,000,000 in tax base, and evidence
that the city's commercial and retail base is at take-off. City support should be given.
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07/15/9a 15:56 F�� 612 223 3002 SPRIrGSTED INC. C�002/002
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i'RELIMINARY ANA�YSiS (NQT FOR GENERAL DISTRIBUTlO� �
City of Rosemount, Minnesata
Carisan Propetties Proposal
Hosemourtt Vi11a e S uare
Pr�jected Ta�c Increment Repart - Looa) Effort Oniy!
�---- Total -----�. �__--- C ity ----(
Annual Increased �Increasad Tax Tax
Period Est. Markef Tax Gapacity Annua! Capacity Annua!
End'tng Value (1) • Capacity Rate Taxes Rata 'faxes
12J31!93 0 0 130.000°k 0 29.810% �
12/31 l94 0 0 13a.OQ0°,� 0 29,810°,G �
1 12/31/95 3,8�0,'f 00 17A�,805 130,Q00% 227,246 29.81 t?°i6 52,109
2 12/31 J�� 3,800,14Q 174,805 i 30.00�% 227,246 29.810% 52,109
3 12/3�j97 3,800,100 17�,8Q5 13Q,000% 227,246 29.810% 52,105
4 y 2/31/98 3,80Q,1 aa 17�-,$D5 130.Q00% 227�246 29.810% 52,1 d9
5 12/31J99 3,800,100 174,805 13D.000°�fa 227,246 29.810% 52,109
6 12I31/2000 3,800,140 174,805 13Q,040°rb 227,246 29.81 Q% 52,'I 09
7 12131/2001 3,800,100 174,805 130.000% 227,246 29.81�% 52,109
8 12/31/2002 3,800,1 UO 174,805 13�.000% 227T 2A-6 29.S 10% 52,1 Q9
- ��,a»,sss ._ ���s,s�2 {3} -
(1) Assumes project is �00'�o completed in 1993 for full assessmerlt an 1/2/94, anc�
taxes payable in 1995. Assumes$4,D00,000 EMV of project upon camptetion
less$i 99,900 cutrent EMV of land.
(2) EMV times commercial�ndustrial classification rate of 4.60%.
{3) Maximum supportabla debt Q 9.0% 288,414
, Less: 18 manths of ca�italized interest 25,957
Available for project casts 8�other expenses �262,457
Prepared by: Springsted tnoarpnrated ( 15—Ju1--93 )
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� C11I�e�ON I�I�OI��I�'�I�e� o��o��Mo�r�r
Box 69 • �osemount, Minnesots 55068 � 61Z • 423 • ZZZZ
NOT FOR GENERAL DISTRIBUTION
July l, 1993
Mr. John Mi11er
Economic Development Coordinator
City of Rosemount
P.O. Box 510
Rosemount. MN 55068-0510
RE: Rosemount Village Square
Response to your letter of June 23. 1993
Dear John:
In response to your letter of June 23. 1993. I submit on behalf of Carlson
Properties of Rosemount, the project sponsor and developer. the following:
l. Attached copy of internal memo from Gateway Foods Division President,`
Rudy Comchoc, to Jerry Nelson. President. Minneapolis Division of
Gateway Foods.
2. Letters of intent from potential tenants in addition to Gateway Foods.
a. Great Clips -- Mr. David Rubenzer, 1,200 sq. ft.
b. Mr. Movies, Store 4�82 -- Ms. Gail Bendt. 3,500 sq. ft.
c. Little Caesar Enterprises. Inc. -- Mr. Joe Rybowicz, 1 .200 sq. ft.
3. Attached calculation sheet by C1iff Carlson. _-
4. Market Analysis Information is the property of Gateway Foods of
Minneapolis and the proposed ,operators. Market Analysis Information
is their opportunity information and as a policy it is confidential
information to Gateway.
Gateway and the operators are prepared to meet privately or in a closed
session with the Port Authority to discuss operating performas or
projections which were developed from the Market Survey material .
Thank you for this opportunity to respond to the Port Authority's questions.
The information contained herein about specific prospects and costs is to be
kept confidential by members of the Port Authority.
Since ly yours.
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Thomas W. Heiberg
Representative
Carlson Properties of Rosemount
TWH/jjk
Enclosures
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TO: Jezry Nelson
FR�M: Rudy Camchoc
DATE_ June 22, ].993 VIA FACSIMILE
SUBJ: Management Cammittee Request P�G};�q�
Rosemourit Jubi.Zee
Jerzy:
The Manage7a�nt coinmittee Request Package for th� Rasemount
Jubilee, h�s been approved as submitted.
Pleas� contact Terry Helz to have the proper gaperk�ork
dra�rll up, in q��ier �to proceed with this project.
�incerely,
Rud �mchoc
RC:ps
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July 1 , 1993
Carlson Properties of Ros�unt
Box 69
Rose�nount, MN 55468
Dear Cliff:
Please accept this letter of intent as our intentian to negotiate
a lease with you for approximately 3500 square feet of space in
your new shopping center. We wnuld like to be close to the new
qr'ocerY stare, if possi.ble.
Sincerely,
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Mr. Nbbies, Store #82
Gayle Y. Bendt
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David A. Rubenzer
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June 2$, 1993
Mr. Cliff Carlson
Carlson Tractor- Equipment Company
P.O. Box 69
Rosemount, MN 55068
T�e.ar Cliff: .
Adrienne Olson, my partner in Great Clips in Burnsville has indicated that she is interested
in leasing space for a Great Clips shop at your proposed strip center in Rosemount. We
typically use 1200 feet with a minimum of 20 feet frontage,a standard vanilla shell with
bathrooms to code, stub plumbing for sinks, hot water heater,and floor drain(s),electrical
and lighting.
Would you please provide us with a proposed site plan and available spaces and lease
terms.
We're excited to talk with you about this opportunity. Thank you in advance far your
cooperation.
Best e ards,
David Ruben r
cc: Adrienne Olson
DAR/wmg
I�JOlti(:recn��•a�• :1�enuc 1'ri��r I.akc. !11innesnt:i S�i72 Ilmne-196-1696 ('ar 750-6}iti7 Ofli�•��R9�_911HR
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May 22, 1992 ,
Cliff Carlson
Carlson Tractor & Equipment Co.
Highway 3 South
Rosemount, Minnesota 55068
RE: Rosemount Center - Space to be determinad
Rosemount, Minnesota 55p68
1 ) Tenant - Little Caesar Enterprises, Inc.
2) Use - A Little Caesar Restaurant for the retail
sales of food and beverages and related
promotional items.
3) Term - Five (5) years with two (2) additional (5)
five year options.� . ,
4) Permitting Time - Sixty (60) days from the execution of lease
to secure all building permits.
5) Figturing Time - Sixty (60} days from when all landlord's
work is complete, official possession of
space is released and tenant has secured
all building permits.
- �:6) Landlord a) Landlord to provide space of
Contributions - approximately 1200 (20 x 60) sq.ft. as
discussed in our earlier conversation.
b} Landlord to provide a 7.5 ton roof-
mounted HVAC unit with distribution,
diffusers, accustat thermostat, and
hook-up: per LCE plans and specification.
c) Landlord to provide electrical servi.ce
which shali consist of 20$/240 volt, 3
phase, 4 wire, 400 AMP, service and 42
breaker panel , including breakers, with
plans and specificatians.
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d) Landlord to provide two (2) inch gas
line (per LCE plans and
specifications) .
e) Landlord to provide all underground
plumbing per LCE plans and
specifications) .
f) Landlord to provide (4) four inches
of smooth concrete floor, with vinyl
composition tile floor covering (per
LCE plans and specifications) .
g) Landlord to provide handicapped
restroom per all local and state
codes. Restrooms to include all
necessary fixtures such as handicap
rails, sink, mirrors, soap and paper
dispensers, ceiling light, exhaust
fan and water closet. Walls finished
and painted to meet code
requirements. Floors finished with
vinyl composition tile (per LCE plans
and specifications) . Pre-finished
hollow core wood door with privacy
lockset and self closure.
h) Landlord to provide dropped ceiling
grid at height of 9.4 feet per LCE
specifications, with 2 'x4 ' lay-in
acoustical ceiling grid system. Said
tiles shall be smooth and washable to
meet Health Department requirements.
Landlord shall further supply 2x2
acousticaZ ceiling tiles in customer
lobby (per LCE plans and
specifications) . Also, landlord shall
supply 2 'x 4 ' recessed lay-in
fluorescent light fixtures (per LCE
plans and specifications) .
, i ) Landlord to provide drywall extending
to the bottom of the roof structure,
drywall surface to be taped and
sanded, and painted with one coat of
walls.
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�I� �`�I�i�KAlr�e � . . � .. � . .
j ) Landlord to allow tenant signage in
conjunction with signage provided to
other tenants, on front and side af
building per LCE plans and
speeifications. Also, we ask
permission to erect our own, or be
allowed space on the pylon sign in
front of the shopping center.
k) Landlord to provide four (4) foot wide
rear door for deliveries.
1) Landlord shall complete automatic fire
sprinkler system, if required, above
and below ceiling to meet a11 local
code requirements and Little Caesar' s
plans and specifications.
m) Landlord to provid+e a seventy-five
(75) gallon commercial hot water
, : heater or 80,D00 BTU equivalent {per
LCE plans and specifications) .
n) Landlord to give tenant the exclusive
right to sell pizza within the
shopping center and all other
contiguous properties. ._..__ "��'
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7) Rental schedule - Five Year Lease
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(1200 Sq.ft. )
_..., , _ .._ ��'-j
1 - $i0.00/ft. .1-. t�
2 . $10.00/ft.
3. $10.00Jft.
4. $10.00/ft.
5 . $10.00/ft .
Option 6 . $11 .50/ft.
7. $11 .50/ft.
8. $11 .50/ft.
9. $11 .50/ft .
10. $11 .50/ft.
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Irittle Caes��rs�
oPtion
11 . $13.80/ft.
12. $13.80/ft.
13 . $13 .80/ft.
14. $13.80/ft.
15. $13 .80/ft.
16 . $1fi.56/ft.
1?. $16.56/ft. •
18. $16.56/ft.
19 . $16.56/ft.
20. $16.56/ft.
This proposal is subject to all nec+essary governmental
approvals to operate a Little Caesar restaurant at this location in
addition to the final approval of Little Caesar Enterprises, Inc.
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After: your review, please contact me so that we may finalize
preparation of the lease. I appreciate your consideration of our
proposal .
i cere y,
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iJ e Ryb• icz
R al Estate Man g r -
JR/dc
Little Caesar Enterprisc�,Ine.,
5999 Nc�v Wilke Road
Suite I04
Rolling Mea�oH-s,lilinois(�(1(Nlfi
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Land Cost Summary*
8.6 Acres
for
Rosemount Village Square
Original cost of (4.87 acres) 212.298 sq. ft. purchased from Jim Evenson on
March 14, 1983 was t275,000.00 on a five year Contract for Deed at 10%
interest.
Interest paid on 5 year C.D. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . t 94,524
Interest cost at 10% on down payment of 535.000 for 5 years . . . . 17,500
Int. cost at 1QX on 510,000 principal payment for 4 years . . . . . . 4.000
Int. cost at 10% on 510.000 principal payment for 3 years . . . . . . 3,000
Int. cost at 10% on 510.000 principal payment for 2 years . . . . . . 2,000
Int, cost at 10% on t10.000 principal payment for 1 year . . . . . . : 1 .000
Interest cost to March 1988 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122.024
Purchase price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 275.000
Rea1 Estate Taxes paid by us through 1988 on same . . . . .. . . . . . . . . 17.931
Cost of property as of March 1988. . . . . . . . . . . . . . . . . . . , . , . , , , , , 414.955
Int. cost for 5 years at 10� 1988-1993 not compounded . . . . . . . . . . 207.477
622.432
Taxes paid on same 1989 through 1993. . . :: . . ... . . . . . . . . . ... . . . ..:. . 32.213
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Cost in 1993 of 212,298 sq. ft. = 53.08/sq. ft. .. . . . . . . . . . . . . . . t654,b45
Total shopping center site is 375,236 sq. ft. x 53.08 = E1.155,726.80.
*The land was acquired at different times and from different Sellers.
Development costs were incurred at different times. To simplify calculations
the cost of the 4.87 acres was projected over the 8.6 acre site.
Prepared by C1iff Carlson
June 30. 1993 �
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D raft Pro osa l
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Pro 'ect Plan Bud et
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Rosemount Villa e S uare
g a
Rosemount, Minnesota
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Submitted to
Port Authority City of Rosemount
- Dated July 15, 1993
for July 20, 1993 -
Port Authorifiy Meeting
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Table of Contents
Rosemount Village Square
8.6 Acre Commercial Oevelopment
Rasemount, Minnesota
by
, Carlson Properties of Rosemount
A. Project Background
B. Current Project Recap
C. Project Development Team Assembled
1. Carlson Properties of Rosemount - Developer. Spo.nsor & Owner
P.O. Box 69
Rosemount. MN 55068 Phone: (612) 423-2222
Partners C1iff Carlson. Ron Carlson and Rich Carlson
2. Land'Sake - Project Coordinator, Real Estate Bro}cer, Leasing Agent
P.O. Box 24127
Apple Ualley, MN 55124 Phone: (612) 431-7500
Company Representative: Tom Heiberg
3. Architect: Runyan-Vogel Group
Suite 6Z00
1300 Godward St.
Minneapolis. MN 55413
Mr. Gary Voge1 . Company Representative
Mr. John Kohler, Company Representative
(612.)__.3Z9-4100: , _ _-. ,
_ _ (612) 379-4847 FAX _. _
4. Engineer: Rehdor & Associates, Inc.
� Suite 240
3440 Federal Drive
Eagan, MN 55122
(612) 452-5051
(612) 452-9797 FAX
5. Surveyor: Sigma Surveying Services
3908 Sibley Memorial Highway
Eagan, MN -55122
Mr. Wayne D. Cordes. Company Representative
(612) 452-3077
6. Contractor: ECI Building Contractors
1771 Yankee Doodle Road
Eagan, MN 55I21
Mr. Mike Gresser, Chairman of the Board
Mr. Larry Grell , President and Company Representative
(612) 452-0555
(612) 452-0057 FAX
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D. Legal Description and Boundary Survey
l. Legal Description �
2. Boundary Survey �
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E. Proposed Development ±
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1. Conceptual Site Plan
2. Conceptual Building Elevations
F. Statement of Need And/Or Assistance .
G. Project Impact �
1. Job Creation �
2. Estimate of Real Estate Taxes Generated
3. Psychic Benefits to the Community
H. Impact on Public Infrastructure
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l . Sanitary Sewer
2. Storm Sewer
3. Water
4. Roads, Highways and Traffic - Ex
Roadway Access - Letter from Dakota County Plat Commission
I . Development Time Table
J. Cost Estimate of Project
� l. Shopping Center _ __ ___ _ . �
2. Pad Sites for Freestanding Retail Structure
K. Nature and Amount of Project Assistance Requested
1 . Amount
2. Expenditure Categories
L. Preliminary Cost Recap and financial Information
M. Fifteen Year Projected Cash -�low
l. Assumptions Summary
2. Cash Flow Without Assistance
3. Cash F1ow With Assistance
N. Assistance Funding Mechanism and Repayment Source Plan
0. Summary
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A. Project Background �
The 8.6 acre site is a part of the South Rose Park Addition Replat
and its second addition. The site has been commercially zoned for
ten years or more. Rosemount's comprehensive guide plan
designates the area as a major commercial area within the city.
Over the years several proposals for a retail center on the site
have been proposed and have not been completed for numerous
reasons, such as high construction costs relative to market rents.
lack of adequate population. high interest rates. and the
siphoning of retail sales demand by large stores in adjacent
communities to the north and west.
B. Current Project Recap
� The current concept is for a 67,000 square foot. two phase, project plus
two areas designated for freestanding retail buildings out in front of
the shopping center near County Road 42.
The initial phase will consist of a 25.000 square foot`"grocery store
anchor tenant. a 10,000 square foot secondary anchor tenant and
approximately 17,000 square feet for small shops to house smaller retail
businesses and personal service businesses .
The second phase will accommodate a 15.000 square foot expansion of the
grocery store as the market demands.
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C. Project Development Team Assembled �
1. Carlson Properties of Rosemount
The Carlson Group has been developing land and buildings in the
Rosemount area for many years. Through their efforts twenty or
more strong businesses have developed in South Rose Park. -
including the doctors and professional building tenants. Rosemount
Gardens, a contractor service building. Holiday Station Store and
the Carlson Chippendale Retail Center. These facilities are a
strang part of Rosemount's commercial identity.
2. land'Sake
Land'Sake and its owner Tom Heiberg have been active in the
commercial land and building business as a broker and developer in
northern Dakota County and the Twin Cities metropolitan area since
the early 1970s. Land'Sake has developed or �been the development
manager for single family land, commercial . retail�, office land as
well as buildings and industrial buildings , motels, and
restaurants. '"
Land'Sake has managed and leased shopping centers, offices and
office service warehouses in the last ten years .
3. Architect: Runyan-Vogel Group. Architects and Planners
The Runyan/Vogel �roup is an architectural , planning and interior
design firm established in 1973 as David Todd Runyan & Associates
and was subsequently changed to The Runyan/Vogel Group, Inc. in
1987. The firm has a diverse practice which encourages innovation
and creativity while dealing with a wide variety of building
.
types. � These include office, officelretail , institutional
including health care, retail , governmental , light industrial /
manufacturing/warehousing, and multi -family housing. Since the
' firm's inception, it has been involved in the planning and design
of over six million square feet of constructed space. These
projects include new as well as remodeled and/or renovated space.
4. Engineer: Pending
5. Surveyor: Sigma Surveying Services
6. ECI Building Contractors
ECI is an Eagan, Minnesota . contractor that has built a strong
reputation as a reliable builder with high integrity that delivers
a quality product and dependable service to their client and the
community.
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D. Legal Description and Boundary Survey
1 . Legal Description
Proposed Property Division Description
-- p/o Block 1, SOUTM ROSE PARK ADDITION REPLAT--
-Parcel C-
Lot 1, Block l. SOUTH ROSE PARK ADDITION REP�AT, according to the
recorded plat thereof, Dakota County, Minnesota . Except the West
225.00 feet thereof, as measured at right angles to and paralleT
with the west line of said Lot 1.
Together with a 30 foot wide non-exclusive driveway easement being
15.00 feet on each side of the following described centerline:
Beginning at a point on the west line of said lot 1, distant
208.33 feet Southerly of the northwest corner of said Lot 1,
thence Easterly at right angles to said west line, a
distance of 225.00 feet and there terminatinc�.
and .�
Lot 3, Block l , SOUTH ROSE PARK 2ND ADDI7ION, according to the
recorded plat thereof, Dakota County, Minnesota .
and
(Common Oriveway)
The North 60.00 feet of Lot 4, Block 1. SOUTH ROSE PARK 2ND
ADDITION, as measured at right angle to and parallel with the
north line of said Lot 4.
_ -Parcel C- Land Area = 375.236 Sq. Ft.
_ r - t$.612`acres) _
t
D. Legal Description and Boundary Survey
2. Boundary Survey
' COUNTY STATE_ , A!D HIGHWAY NO. 42
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F. Statement of Need And/Or Assistance �
In today's retail market, community shopping eenters like the proposed
Rosemount Village Square are competing in many respects with the
regional shopping areas . This is particularly evident in the Twin
Cities grocery market where two major grocery wholesalers are supplying
better than 70% of all grocery stores. These two suppliers have two
major retail outlets , Cub Foods and Rainbow Foads that often anchor the
regional shopping centers. Because these large stores have such drawing
power they siphon off normal demand in growing and developing areas.
This is the case in Rosemount.
A second significant factor at work in determining the feasibility of
shopping center development is that these large stores build in
"anticipation" that the population is going to grow and therefore growth
and demand will occ�rr. Because they are large they can incur some
initial lasses, to build a competitive advantage by keeping competition
out of the market place and therefore strongly influencing deveiopment.
Since Rosemount is only four (4) miles from ane of thes� regional
centers Rosemount might be passed over if it does not build its own
community shopping area now, before the next regional area is
identified.
Rosemount is not alone, as other second and third ring suburbs work to
develop and keep their retail areas strong by offering comrnunity
assistance. Chanhassen is an example of a community that was
experiencing a siphoning of retail demand from retail areas in
neighboring communities . Recently the City stepped forward and provided
a package of incentives and a significant center has developed. Along
with the center has come subs_tantiat additional retail demand and
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development as residents are 'attracted to the area for shopping.: Botfi
existing and these emerging retailers are benefiting from this expanded
dctivity.
Most retail professionals familiar with Chanhassen have said that
Chanhassen would not have the retail business it has today if the
community hadn't stepped forward with a package of incentives
principally for a grocery store anchor and the proper secondary anchor.
The combination of siphoning off demand and going to the next regional
reta-il. center site in "anticipation" that growth will occur puts the
smaller retail areas at a competitive disadvantage.
It is a generally recognized fact that to have a healthy community �
shopping center with its service shops and small retail business, a
grocery store anchor is required to draw customers in significant
numbers and on a regular basis to help other small retail businesses
(such as dry cleaners, shoe shop, video store, drug store, beauty shop.
barber, travel agent, sports store, clothing store, etc. ) have the �
customer base to survive in taday's competitive retail market. ;
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We believe that Rosemount desires and deserves a one stop community �
shopping center. If one is to develop it needs a grocery store anchor.
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` To get a grocery store anchor the developer needs to provide the grocery
store anchor with significant incentive the first couple af years and
less incentive in the later years of its lease. With the balanced mix
of incentives the whole community wi11 prosper.
Not only does tMe grocer need help and assistance, the smaller
businesses and the secondary anchors need smaller amaunts of assistance.
This assistance will produce significant payroll . employment and real
estate taxes for the community. which wili contribute positively to
Rosemount's quality of life.
Without the help of the community and its economic development catalyst.
the Port Authority, it is unlikely that a community shopping center will
develop in the near term. �
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` G. Project Impact
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1. Job Creation �
Ful1 -time Part-time �tal
s�4�.�. ��-
30 45 75
Grocery (1994) 20 30 50
Shops � 18 25 �
Secondary Anchor � �
Freestanding Retail Sites -.�
Total
62 143 205
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2. Estimate of Real Estate Taxes Generated
Phase I Shopping Center 5150,000 Annual Real Estate 1993 Tax Dollars
Freestanding Retail Sites (2)
A. Approx. 41,550 sq. ft. 18.000 Annual Real Estate 1993 Tax Dollars
B. Approx. 12.160 sq. ft. 7 _000 Annual Real Estat.e 1993 Tax Dollars
Total First Phase Sll5.000 Annual Real Estate 1993 Tax Dollars
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Phase II Shopping Center t 45.000 Annual Real Estate 1993 Tax Dollars ,
ion E220.000 Annual Real Estate 1993 Tax Dollars ,
Total at Full Complet �
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3, Psychic Benefit to the Community
A significant part of a community's identity is its shopping area .
Currently our principle;-shaPping area has served the needs of the
community well over the years. However, now as the community
grows, our population increases and our traffic patterns change.
we need the area for more stores and related parking to serve the
shopping needs of our larger population. We are fortunate to have
the space to expand the downtown area down Highway 3 to include
the County Road 42 corri dor.
Today's customers are looking for one-stop shopping and the
Rosemount Village Square, as proposed, will begin to address this
_. one-stop shopping need. It should help keep residents' shoppin9
activity in Rosemount and their dollars spent in town which should
make all business within Rosemount stronger and give us a new
sense of pride for our community.
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s ,�.:: .;. <�.;.. � ::�r .�. ._
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H. Impact on Public Infrastructure
1. Sanitary Sewer:
Sanitary Sewer currently serves the property and no burden greater than
what was planned is expected.
2. Water:
Water currently serves the property and no need greater than what was
planned is expected. �
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3. Storm Sewer: '�
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Further analysis needs to be conducted to determine the likely impact ;;
that the project will have on the storm water system. Such ana1ysis and �}
proper sizing will be part of the final submission to the. City. F
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4. Roads. Highways and Traffi'c �-� �
A. Access to the site wi11 be off af Chippendale Avenue j
and Canada Avenue and directly off of County Road 42. ;
Customers will exit in a reverse but similar fashian. There �
wi11 be an eastbound deceleration lane on County Road 42 for �
entering traffic. �
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B. Trip Generation �
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Further analysis of the .trip generation from the __ '
proposed development and its impact on surrounding streets � ?
needs to be completed prior to final approval .
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GdRY H.STEVENSON,R.L.S.
' �A KO T/ 1 �O�,;_/ l Y T� LANOCIN ORM T ON DIRECTOR
� (612)891-7087
SURVEY& LAND INFORMATION DEPARTMENT FAX(6t2)891-7031
• � � � 7 4955 GALAXIE AVENUE APP�E VALLE`(.MINNESOTA 55124-8579
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.>..�'4.�g� . . . . . .
'A.•u-" � . . � � . � .
[� z L,' . . . . . . . .
� July 13, 1993
City of Rosemount
1167 - 145th St. E.
P.esaTMo��r.t, NL*t 55068 .
ATT: Stephan Jilk, Administrator
. ROSEMOUNT VILLAGE SQUARE
Dear Mr. Jilk: .. '
The Dakota County Plat Commission met on July 12, 1993, to
reconsider the revised preliminary plat of ROSEMOUNT VILLAGE
SQUARE. Said plat is adjacent to C.S.A.H. NO. 42 and are,
therefore, subject to the Dakota County Contiguous ` Plat
ordinance.
The Plat Commission on a 3 to 1 vote recommends the
following:
1. ) A right in only at the proposed access location is the -
only allowed intersection with the existing conditions
at Canada Avenue. This is a variance from our
guidelines since it is not a .public street. However,
with the internal road network of the development it ,
; serves the same purpose. Right turns onto C.S.A.H. NO.
42 from this property need to be prevented at this time
to minimize L'-�urns an C.S.A.v. �::0. 42 at Canada P.�Ts.^.ue.
2 . ) If the median at Canada Avenue is closed now, a right
; out and :.a left in would be possible. Future guidelines, #
� however, may not allow this type of intersection this •
� close to Chippendale Avenue. �
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3 . ) In conjunction with this development, staff recommends �
that the County and City work together to improve
traffic in this area by installing right turn lanes at
Chippendale, Canada, and TH #3.
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The City should respond to these concepts before the
development moves to the final plat stage.
No work shall commence in the County right of way until a
permit is obtained from the County Highway Department.
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^mted on Recycled Paper l�+' ��f ULe SOU.utLiG� :.Cv EQUAL OPPORTUNITY EMPIOYER
.,.:,:
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Sin erely, �
�Gary H. Stevenson �
Dakota County Surveyor & Land Information Director
Secretary, Plat Commission
GHS f iTi '
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cc: Carlson Properties r �
Bud Osmundson, City Engineer
Tom Heilberg ,:
Dave Everds, County .Engineer
Louis Breimhurst, Physical Development Director
Brandt Richardson, County Administrator
Steven Loeding, County Commissioner
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I . Development Time Tabte
The developer anticipates the necessary leasing and financing
commitments so construction can commence late summer or early fa11 T993,
presuming an adequate City assistance package is agreed to by the
necessary public agencies. .
J. Cost Estimate of Project . i
1. Shopping Center i
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A. land � E 750.000 i
B• Construction and Improvements 52,500.000 �
2• Pad Sites for Freestanding Retail Structures �
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A. Land �
1• Large outlot -- Range of Value 5180,000 t,o �225,000 i
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2. Smaller outlot -- Range of Value 5100.00D ta 5125,000 '
B• Construction & Improvements �� �
7.. Large outlot -- Range of Value E500.O00 to t650.000 '
2. Smaller outlot -- Range of Value 5125,�00 to b280.000 {
K• Nature and Amount of Project Assistance Requested
1. Site Oevelopment Assistance �
A. Amount: Approximately 5380,000 over six to seven ears . �
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B• Expenditure Categor,ies �
: .. 1. ' Roadway `�mprovements. including grading ;
2• Parking lot construction; surfaee and curbs i
3. Parking lot lighting f
4• Landscaping
5• Storm sewer construction '
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L. Preliminary Cost Recap and Financial Proforma
Rosemount Village Square
Preliminary Cost Recap and Project Financial Proforma
6/8/93
Building Area: 52.000 S.F.
Leasable Area: 52,000 S.F. . ;
Parking Provided: Approximately 375 autos '
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Shopping Center COStS: f
Land 5775.000 (Approximately 7 .2 acres or 313,600 sq. ft. ) 52.47fsq. ft. �
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Buildings �
Site Costs: b40Q.000 �
General Conditions 5140,000 �
Building Shell 51,050,000 . ;
Leasehold Improvements
A) Grocery 490,000 '�
B) ` Retai 1 2Z9�4S2
Total Direct Costs Buildings 52,350.000
Indirect Costs:
Architect. Leasing, Marketing
and Professional Fees 225,000
Financing Fees 50,000
Interim Interest 135.000
- Legal and Consulting __ _
and Miscel7aneous �-�
Total Indirect Gasts 5485.000
Shopping Center Costs 53,610.000
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Rosemounfi Viilage Square � i
• Preliminary Income and Expense Summary
Gross Scheduled Income: Rents Averaged Over First Five Years of Lease
June 30, 1993 Draft
q• B., .
' Rents required by " Market rents
eosts and retum on
investment standards �
Per Morket -- Five
Leased Square � Required Per Square Scheduled Annuai (5)Year
�� �� F�tB�€ B�t Foot Rent g�pf Difference Difference
Grocer 25,OOQ S.F. S7.00 S 175,000 S 4.25 S 108,375 S66.b25 S333.125
Sub Anchor 10,0�S.F. S9.00 S 90,0� S 7.50 $ 75,000 �15,000 S 75,Q00
Shops 14.600 S.F. S 12.00 S 175,200 S 10.00 S 146.000 $29200 S 146,�0
Totai Annuai Gross Scheduled Income $4d0,200 Tofial Diff. $329,375 $110,825 $554,125
A B �
Annual Gross Scheduled Income: 5440,200 5329,375 S 110,825 S554,125 �
Less Vacancy and Credit Loss (3%) S 22,000 S 22,000(6.7qo) ;
Adjusted Gross Schedule Income S418,200 5307,375 '
Less Expenses:
Vacancy Charges _ :S 11,050 S 11 A50 _ ;
CAM Charge 2,600 S.F. x 54.25/S.F. '
Leasing and Remodeling Expense S 30,000 S 30,000 i
Administrative Expense S 5,Q00 S 5,000 ?
Structural and Roof Maintenance S 7.500 7 500 �
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Totai Expenses: $ 53,550 S 53,550 i
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Net Operating Income: 5364,650 5253,825
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Debt Service Summary: �
Proposed Debt and Terms: Mortgage 52,850,000 9%Interest 25 Year Amortization �
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Less Debt Service S286,995 S286,995 �
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Cash Flow S 7�,655 <S 33,170> `
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M. Fifteen Year Projected Cash Flow '
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I . Assumptions Summary -- following two pages
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2. Cash Flow Without Assistance -- pages three and four that follow �
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3. Cash F1ow With Assistance -- pages five and six that follow I
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CARLSON PROPERTIES OF ROSEMOUNT
ROSEMOUNT VILLAGE SQUARE
52,000 SQ. FT. COhIMUNITY SHOPPING CENTER
SUMMARY OF SIGNIFICANT PROJECTION ASSUMPTIONS
FIFTEEN YEAR PERI00
NOT AUDITED ;
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This financial projection is ba�ed on deveioping a new 52,000 square foot shopping center �
in Rosemount, Minnesota at County Road 42 and Chippendale Avenue. The center is to ba
anchored by a grocery store and a d�ug store. This projection presents, as of June 29, ;
1993, to the best of management's knowledge and belief, the Center's expected cash flows for
the projectian period when the Center is developed. The purpose of this presentation is to .
analyze the feasibility of developing the Center. Accordin9ly, this'�projection may not be
useful for other purposes. The assumptions disclosed herein are those that management �,
believes are significant to the projection; however, management has not decided that it will '
develop the Center. Even if such a Center is developed, there will usually be differences
betWeen projected and actual results, because events and circumstances freque�tly do not
occur as expected, and those diffe�ences may be materisl.
1 . The City of Rosemaunt has expressed the possibility of offering up to $250,000 cash
of Tax Increment Financing (TIF) as the form of reimbursement of infrastructure casts
associated with the development. To avoid bonding costs,the project can laak at a pay-
as-you-go Tax Increment Financing plan. Calculating the present value of a six and
ane haJf. (6 1/2) year payback of the $250,000.00 at ten percent (i0%) interest it is "
approximately $364,000.00. One run shows $2,850,000.00 with no Tax Increment Financing
pay-as-you-90 assistance and the other run shows $2,850,000.00 of debt plus the annual
Tax Increment Financing income.
2. The Grocery Tenant's annual Base Rent is projected to reflect a letter of intent with
Gateway Food dated April 23, 1993.
3. The Grocery Tenant is responsible for maintenance of hard surfaces, snow removal ,
parking lot 8� building lighting, maintenance of a security system and lawn & shrub
maintenance in the area designated Gracery Tenants common area.
4. The Second Anchor Tenants' annuat Base Rent on 10,000 square feet of space is assumed ,�
to be $85,000 for year one, $75,000 (10,000 square feet x $7.50/sf) for years two �
through five, and then increase 4% annualiy thereafter.
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5. The in-line Tenants annual Base Rent is assumed to average $10.50/sf for the first one
year and then i�crease 4% annually thereafter. In-iine Tenant 8ase Rent assumes each
tenant will average two months af `free Base Rent as a leasing incentive. The 17,000
square feet of in-line tenant space is leased according to the following schedule:
Sauare Feet T�•min9
5,500 . At Opening
4,500 Six Months Later
4.300 Start ot Year 2
14,300
2.700 � Yacancy allowance (15.94% of in-line
tenant space; 5% of total space) '
17,000 �
6. Gomman area participation assumes tennants pay thei� pro rataC- share of the annual
comman area operating sxpenses of the 52,000 square foot Center.
7. Operating expenses are 5ased on management's estimates for a comparable center of this
size and design. Expenses, otfier than real estate taxes, management fees and teasing
cortunissions (separately estimated}, are expected to increase at an annual rate of 4%.
8. In each case, a 9% rate of interest and a twenty-five {25) year amortization period
are used. The annual debt service is projected to be $287,005 based on a loan
principal balance of $2,850,000.
-9. Total and net p:roject cnsts are �timated=to -be: ----- --.: - .
A. Project costs:
Construction Costs and Land Value $3,475,000
Construction Period Interest � 135,000
Total Project Costs $3,610,000
Equity: $ 760,000
- Loan of: $2,850,000
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C1flLSQN PHOPEflTIES OF flOSE�OUNT 1/ 1/93
flOSEKOUNT VILLAGE SQUIflE
PaOJECTI�N OF CASH EtOYS
V�THOUT TAI-INCflE�EBT FIHANCING
YEAH ! YEA9 2 YEAB 3 YEAfl 4 YELfl 5 YEAfl 8 YEAfl 1 YEsfl B
IHCO�E --------- --------- --------- -------- --------- --------- --------- --------- �
BASE flEt(TS
Grocery store 112,500 125,600 131,500 150,000 156,250 181,250 181,250 i81,250
2nd lpchor 65,000 �5,004 75,000 75,000 15,060 78,000 81,140 84,300
In-tine teaanta 77,500 151,300 163,592 170,170 117,434 184,184 19I,620 199,342
Tottl baee renta 255,000 357,300 396,092 395,170 408,284 443,434 453,970 464,892
CO�KAII AflEI PAflTICIPtTION
Grocerp atore 0 0 0 0 0 0 0 0
� 1nd inc�or 18,000 48,600 58,900 59,000 61,300 63,800 66,400 69,I80
In-line tenanta 13,950 TI,405 82,232 85,545 88,a94 92,4i2 96,070 99,876
Totai participatioa 31,950 t20,005 139,I3Z 144,545 tS0,i94 156,Z12 162,410 168,916
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TtI INCflEHEHT FI�A1(CIUG INCOHE 0 0 0 0 0 0 0 0
TOTAb INCOBE 286,950 411,305 515,224 539,T15 558,498 599,646 6I6,440 833,868
4PEflATING EYPEIiSES:
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COM�ON AflEI EYPENSES
fleal estae taiea 8,000 15,500 94,500 98,280 102,211 105,299 110,55t (14,973
Iaenrance 6,380 6,635 6,900 7,t76 1,463 1,962 8,072 8,395
�anage�ent feea 1,I25 1t,615 11,930 12,259 12,602 13,109 I3,636 I4,182
Otilitiea 8,I80 8,50T 8,841 9,201 9,569 9,952 (0,350 IO,T64
Traah re�oval 12,950 13,260 13,990 14,342 14,916 t5,513 16,134 16,119
Larn care 2,660 2,T66 2,871 Z,992 3,112 3,236 3,365 �,500
Parting !ot ereeping 940 9T0 80l 833 866 901 937 914
Snor reaoval 3,19U 3,�f8 3,45t 3,589 3,T33 3,E82 4,637 4,198
Cleaning and iaintenance 4,250 4,420 4,591 4,181 4,972 5,171 5,3�8 5,593
8epiira, _ _ 2,680 , 2,966 2,877_ Z,992 3,ti2 3;236 3,365 3,500
tdvertiaing 2,130 2,215 2,304 2,396 2,492 2,592 2,696 2,804
Suppties 430 449 465 484 503 523 544 566
Security 1,460 1,102 1,146 1,192 I,240 1,290 1,342 1,336
I.icenae tees 160 t66 t73 t80 L89 194 202 Z[Q
Hiscellaneous
Tota1 Codaon Area Eip 59,715 139,487 t54,658 t60,697 166,918 i73,660 t80,609 t81,834
NON COKMOH IflEA EYPENSES
leasing cooeisaions 15,000 1,5d0 5,000 5,000 5,�00 5,000 5,200 5,414 . .
I.egal k profesafonil t,000 (,040 I,480 1,120 I,160 1,210 1,260 t,310 _
Vacant area espense
Anchor proao � iaceat 85,000 45,000 2�,000
Anchor �anage�ent 4,500 6,250 6,875 7,500 7,813 9,083 9,063 9,063 t
Aeaerve for structural/roof 3,190 3,320 3,450 3,590 3,730 3,880 4,040 4,200
Niscellaaeona
Total Aon-Couon lrea EYp I08,690 63,110 36,405 19,210 t9,703 I9,153 l9,563 (9,983
TOT11. OPEfltTING EYPENSES I68,405 I96,597 (91,063 197,907 I84,68t 19Z,813 200,17Z 201,8t7
NET OPEflATING IHCO�E 118,545 280,908 �Z4,161 36I,848 373,191 406,833 416,268 426,05t
DEBT SEflVICE 287,005 287,005 287,005 287,005 281,005 287,005 267,�05 287,005
NET CASH FLON (168,460) (6,2971 �T,1S6 14,803 8fi,192 it9,827 I29,263 l39,046
CAflLSON P�OPEBTIES OF HOSE80UNT
flOSE�40NT�IILLAGE SQUAflE
PEQJECTION OE CLSH FLOYS
�ITHOOT TAY-INCaEHEHT FININCING
YEAfl 9 YEAfl 10 YEAB !1 YEA9 12 YEAfl l3 YEAg 14 YEAx 15 �
INCOHE --------- --------- --------- --------- --------- --------- ---------
BASE flEHTS
Grocery etore 181,250 181,250 193,750 i93,950 193,750 193,750 193,950
2nd lnchor 81,700 91,200 94,800 99,600 IOZ,500 106,660 1I0,900
In-line tenanta 201,�50 215,644 224,224 233,233 242,528 Z52,252 262,405
Total base rents 416,300 488,094 5I2,174 525,583 538,778 552,602 561,055�
C6�81N 1flEA PAflTICIPlTION
Grocery atore 0 0 0 0 Q 0 0 ,
2nd lnchor 11,900 74,800 77,800 80,940 84,I04 81,SOQ 91,400
In-line ten:nta l03,845 109,980 II2,Z88 116,19! 121,�99 126,320 I31,397
Total participation 115,945 �182,180 19Q,088 197,69t 205,590 213,820 2ZZ,377 �
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TAl It1CflEHEUT FIliAIfCIIiG INCOBE 0 0 0 0 0 0 0 .
TOTAL INCO�E 652,045 6T0,814 70Z,86Z 7Z3,274 144,368 166,42Z 789,432
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OPEfli?ING EIPENSES:
C0��4N 1BEA EYPENSES
fleal eatae taiea 119,572 I24,355 129,328 t34,S02 139,882 145,477 15I,296
Insnraace 8,?3I 9,080 9,443 9,8Z1 10,214 l0,823 1t,448
8anage�ent feea l4,753 15,342 15,951 16,592 17,Z51 17,943 18,865
Otilitiea 11,195 I1,643 IZ,109 12,593 I3,097 I3,621 14,166
Traa6 re�ovat 17,450 I8,i48 18,814 19,629 Z0,414 21,23I 22,680
Larn care 3,640 �,186 3,937 4,094 4,258 4,428 4,605
ParYin� lot ereeping 1,013 1,OS4 l,096 1,140 1,186 1,233 1,282
Snor reeoval 4,366 4,541 4,T23 4,912 5,108 5,11Z 5,5Z4
Cleanin� and iaintenance :,: 5;81T &;050 6,292 6,544 : 6,846 T,Q78 T,3B1
Bepaira 3,640 3,786 3,939 4,494 4,258 4,428 4,605
Advertiaing 2,9i6 3,033 3,154 3,280 3,41I 3,549 3,689
Suppliea 589 613 63B 66# 69t ?f9 148
Security 1,452 1,510 1,570 1,633 1,698 f,166 1,831
I.icease leea 2I8 ZZ? Z36 245 255 Z65 276
Miacellaneoua
Total Cov�on Area Eip 195,352 Z03,168 211,289 219,743 228,529 237,671 241,182
NON COHflO}� AflEA EYPEHSES
I.eaaing cflasieaione . 5,630 5,860 6,09� 6,330 6,580 6,840 7,1f0
Legal k profeasional 1,960 1,410 1,470 1,510 I,S90 1,650 1,120
Vacant area eipenae i
Anchor pro�o k incent �
Anchor aanagesent 9,063 9,063 9,688 9,688 9,688 9,688 9,688
fleaerve for atrnctaral/rooi 4,310 4,540 4,T20 4,910 5,110 5,310 5,520
�iscallaneous
Totat Non-Canaon Area Eip 20,4Z3 20,813 21,968 22,458 22,9fi8 23,488 24,038
--------- --------- --------- --------- --------- --------- ---------
tOTAL OPEflATING E%PENSES 215,775 224,04t 233,257 242,2QI 25I,497 261,159 211,220
--------- --------- --------- --------- --------- --------- ---------
NET 4PEflATING INCOflE 436,2T0 446,833 469,605 481,093 492,871 505,Z63 518,212
DEBT SEflVICE 287,005 281,005 287,005 287,005 281,005 287,005 287,005
YET C�SH FLOY 149,265 159,828 182,600 194,068 205,666 2I8,258 Z31,206
.HLSON PflOPEflTIES OF 90SENOUNT T/ 1l93
)SEHOUNT YILLAGE SQUAxE '
�OJECTION OF CASH FLO�S
:TH TAX-IN�CflE�ENT FININCING
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YElB ! YEtfl 2 YEAB 3 YEtfl 4 YEAA 5 YEifl 6 YEAfl 7 YEAfl 8
`COdE --------- --------- --------- --------- --------- --------- -------- ------- .
BlSE flENTS
Grocery atore 1i2,500 125,000 13T,500 150,000 l56,250 181,250 181,250 l81,250
2nd Inchor 65,000 15,000 75,000 95,000 75,000 78,000 81,100 84,300
In-line tananta 17,500 I51,300 163,592 (T0,170 I71,034 184,I64 19I,620 l99,341
------ --------- --------- --------- ---------
Totii baae renta 255,000 357,300 376,092 395,Iy0 408,284 443,434 453,910 464,d92
COlt�At( 1&El Plfl2ICIPl?ION
, Grocery atore 0 0 0 0 0 0 0 0
2nd lachor I8,000 48.804 56,900 59,000 61,300 63,800 66,400 69,ID0
In-line teainta 13,950 11,405 8Z,132 55,545 88,894 92,l12 96,070 99,816
Tot:t participation 31,950 12U,005 t39,i32 144,545 150,194 158,21Z (6�,470 tBs,916 .
Til INCflEHElIT FINA2tCING IHCOKE 0 40,000 54,000 54,000 54,000 54,000 54,000 54,000
TAL INCO�E 286,95U 5I1,305 569,2Z4 593,1[S 6f2,4T8 653,846 6T0�440 687,868
EflATIHG EYPEHSES: ,;
C0�lIQN LflEA EIPENSES ,
fleal eatae taiea µB4O00 75,500 94,500 98,280 l02,ZII 106,299 lI0,55I 114,973
Inanrince 6,384 6,835 6,900 i,176 1,463 1,762 8,07Z 8,395
�aaige�ent leea 1,125 lI,615 11,930 12,259 12,602 13,109 13,636 14,182
Otilities 8,180 8,50T 8,849 9,201 9,589 9,952 1�,350 IO,i64
Triah re�oval 12,T50 13,260 13,T90 14,342 14,9i6 15,513 16,t34 16,719
Idm care 2,680 2,1fi6 Z,871 2,992 3,112 3,236 3,365 3,500
Parking lot areeping 140 770 801 833 866 901 937 994
Snor re�oval 3,I90 3,318 3,451 3,589 9,933 3,88Z 4,Q37 4,198
Cleaning and iaintenance 4,250 4,420 4,597 4,18I 4,99Z 5,11I 5,378 5,593
, flepaira _ Z,664 2,166 2�877 2,932 3,112 3,Z36 3,365 3;500
ldvertiaing 2,130 2,215 �,304 2,396 2,492 Z,592 2,696 2,804
Snppliea 430 44T 465 484 503 SZ3 544 566
Security 1,060 I,IOZ 1,146 1,192 1,240 1,290 1,342 1,396
I.icenae feea I60 I66 I93 180 181 l94 202 Z10
Niaceilaneous
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Tota( Coaaon Area Eip S9,1t5 133,487 154,658 I64,697 I66,978 173,660 180,609 t87,834
NOA CO�flON dflEA EIPENSES
leasing coroisaions I5,000 1,540 5,000 5,000 5,000 5,000 5,Z00 5,410
legal � profeseional I,000 1,040 I,OBO I,I20 I,t60 t,2t0 I,ZfiO 1,9I0
Vacant area eipease "
Anchor pr000 k incent 85,000 45,OOfl 20,000 ;
Anchor 0aaage�ent 4,500 6,Z50 6,875 7,500 1,813 9,063 9,063 9,063 `
9eaerve for structural/roof 3,190 9,320 3,450 3,590 3,130 3,880 4,440 4,200
Hiaceltaneous
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Totai Non-Coneon Area Eip l08,690 63,114 36,405 t1,21U I9,703 19,153 19,563 19,983
------- --------- --------- --------- --------- --------- ---------
dt OPEBATIN& EYPEHSES I68,405 198,591 l9I,063 I11,90? 184,681 192,8t3 280,I12 20T,8I1
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4PEadTING INCO�E 1t8,545 320,708 319,161 4t5,808 429,797 460,833 470,Z68 480,051
' SEflYICE 281,Q05 28T,005 28T,005 289,005 289,005 287,005 287,005 287,Q05
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CdSH EL09 (I68,460) 33,103 91,156 128,803 140,�92 173,827 183,263 193,046
iLSON PflOPEflTIES OF 80SEBOUNT
�EflOUN? YILLAGE SQUIflE
)JECTIOH $F CASH FLOVS
;6 TAY-INCflE�EHT FIHINCING
� YEAfl 9 YEAfl 10 YEAfl I1 YEAfl 12 YEAfl l3 YEA9 14 YELH 15
�0�E --------- --------- --------- --------- --------- --------- --------- �
BISE flENTS
Grocery atore 181,250 t81,250 193,750 193,150 193,750 l93,750 I93,750
2nd Anc6or 89,700 91,200 94,800 9B,600 t02,500 106,600 110,900
In-line tenanta 201,350 215,644 224,224 233,233 242,528 25Z,252 262,l05
Totil base renta 476,300 488,094 512,T74 525,583 538,718 552,602 561,055
CO�HAN tflEl PAflTICIPI?I0�
Grocery atore 0 0 0 0 0 0 0
Znd inchor 9i,900 94,800 11,800 80,900 64,100 BT,SOD 91,000
In-tine tenaati t03,845 109,980 111,Z88 116,791� 121,490 IZ6,320 131,377
Total participatioa• 115,145 t82,180 190,088 (97,69! 205,590 2I3,820 222,377
TLI INCflEtiERT EINI�CIAG IACO�E
i1L INCOHE 652,045 690,874 1UZ,882 123,274 744,368 166,422 989,�432
?flAYIIiG E7PENSES: ,:
CO��ON AflEA EYPENSES
�eel eatae taiea 119,572 124,355 129,329 134,502 i39,982 I45,417 i51,296
Insarance 8,731 9,080 9,443 9,821 t0,214 [0,623 I1,048
8anage�ent feea 14,753 l5,342 15,951 l6,592 1T,251 19,943 •18,865
Otilitiea 11,195 11,643 tZ,109 1Z,593 (3,097 13,62! 14,166
Trash re�oval 17,450 18,148 18,fl74 I9,629 20,414 21,23! 22,080
I.arn care 3,640 3,186 3,937 4,094 4,258 4,4Z8 4,605
Parking lot areeping 1,013 1,054 1,096 1,140 1,188 1,233 1,282
Snor re�oval 4,366 4,541 4,1Z3 4,9I2 5,I48 5,312 S,SZ4
Cleaning and iaintenanca 5,817 6,050 6,292 6,544 6,806 T,078 1,36i
_ : flepaira :3:,640 - 3,186. 3,939 _4�094 _ 4,258 4,.4Z8 4�605_ _
ldvertiaing . 2,9t6 3,033 3,154 . 3,280 3,411 3,541 3,689
Supptiea 589 613 638 664 691 719 148
Security 1,452 1,510 t,570 1,633 1,698 1,766 1,837
Licanae fees 2t8 2Z1 236 245 Z55 265 Z76
�iacellaneona
--------- --------- --------- --------- --------- --------- ---------
Totat Co�don Area Eip 195,352 243,I68 211,289 2i9,14� 228,5Z9 231,671 247,182
NOti C0�80N AflEA E%PEHSES
I.eaeing _cop�issions 5,630 5,860 6,090 ,6,334 6,580 _ 6,B40 1,1t0
i,egal E profesaionai 1,360 1,410 1,470 � t,530 1,590 1,650 1,120
Vacant area eipenae
lnchor pro�o � iaceat
Aachor ,ana$e�ent 9,0B3 9,Ufi3 9,688 9,688 9,688 9,688 9,688 :
fleserve for strnctural/roof 4,370 4,540 4,920 4,910 5,110 5,310 5,520
Miacellaneoua
Tota1 Aon-Cor�on lrea Ezp 2U,423 20,813 2i,968 Z2,45B 22,968 23,488 24,038
!l 4PEflATING EIPEHSES Z15,995 Z24,44i 233,Z57 242,ZO1 251,491 261,159 271,ZZ0
OPEflATIH& INCO�E 436,Z70 446,833 469,605 481,073 492,811 505,Z63 SI8,Z12
T SEflVICE 287,005 287,005 297,005 287,005 287,005 287,005 28T,005
--------- --------- --------- --------- --------- --------- ---------
CtSH F14� 149,265 159,828 182,600 19#,068 205,866 Z18,258 231,206
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N. Assistance Funding Mechanism and Repayment Source Plan.
The project. through future tax receipts, should support the requested
assistance. The mechanism for such support is a local effort tax
increment financing plan. Most of the city portion of tax revenue is
used to finance the support.
Carlson Properties of Rosemount is agreeable to a pay as you go plan so
no bonding is required. but rather a semi -annual refund of local tax is
made to Carlson Properties for a period of six and one half years. This
refund up to 5380.400 includes interest on the unpaid amount of b250.000
at an interest rate that is equal to the interest rate on the project
mortgage from the private sector.
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0. Summary
Upon final agreement from the City of Rosemount detailing its commitment
to provide 3380,OOQ of funds for site improvements. Carlson Properties
of Rosemount is prepared to commit to build a shopping center containing
approximately 52,OQ0 square feet to serve the community and its
surrounding area. subject to final lease negotiations and permanent
financing on approximately seven (7> acres of an 8.6 acre site. .
Carlson Properties of Rosemount is excited about the opportunity to help
the City of Rosemount grow and reach out to meet the needs and wants of
the community. We look forward to continui.ng the dialogue about our �
request and action on our request by the Planning Commission. the Port �
Authority and City Council . �
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