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HomeMy WebLinkAbout2.c. Minutes of June 22, 1993 Special MeetingROSEMOUNT PORT AUTHORITY PROCEEDINGS SPECIAL MEETING DRAFT JUNE 22, 1993 Pursuant to due call and notice thereof a special meeting of the Rosemount Port Authority was duly held on Tuesday, June 22, 1993 at 5:30 p.m. in the Council Chambers at City Hall, 2875 145th Street West. Chair Dunn called the meeting to order with Commissioners Anderson, Carroll, Edwards, McMenomy, Sinnwell, and Wippermann present. Staff present included Executive Director Jilk and Economic Development Coordinator Miller. The purpose of the meeting was to hear development proposals for a theater project and for a motel or motel/restaurant project. Mike Muller and Bob Muller from Muller Family Theaters were present to discuss their proposal for a theater in Rosemount. Mike Muller presented background information on their company and discussed the tour of their East Bethel theater. Mr. Muller advised that the proposed theater for Rosemount would start with ten screens and would have the potential to go to 20 screens. Of those ten screens, some would be in larger auditoriums and some in smaller and would provide a total of approximately 2200 seats. All auditoriums would contain rocking seats and cry rooms would also be available. Mr. Muller further advised that they would run first -run movies and would not show X-rated or X117 movies. Admission and concession prices were also reviewed. Mr. Muller went on to explain that the reason they chose Rosemount for their new theater was because of demographics. Theaters showing first-run.movies cannot be within ten miles of another theater playing first -run movies. Burnsville and Hastings are the closest theaters showing first -run movies but are over the ten mile limit. Mr. Muller also advised that a theater in Eagan was being proposed, but was also over the ten mile limit. He expressed some urgency in getting started with the Rosemount theater before another proposal could get started within ten miles of their project. Discussion followed regarding locating the theater in the proposed business park because it appears to be the quickest site to get in on and the least expensive. It was determined that the County Road 42 and Highway 3 site was not large enough and too expensive for the theater. Economic Development Coordinator Miller informed the Board that the purchase agreement for the business park property was being reviewed by Roy Abbott and his attorney and he expected a reply from them shortly. At the request of Chair Dunn, Executive Director Jilk commented on the Dakota County Physical Development Committee meeting he had attended on Monday, June 21, regarding changing County Road 42 to a principal arterial designation. Jilk advised that the committee had voted 3-2 to recommend to the full county board to allow Rosemount to review the two proposed developments east of T.H. 3 and west of Biscayne under current standards. Commissioners felt that the Mullers' proposal was good but felt a more complete proposal should be submitted by July 6th and also felt that the Mullers should put more personal money into the project. Chair Dunn directed staff to work with the Mullers, focusing on the Commissioner's questions, and firming up the details and numbers. ROSEMOUNT PORT AUTHORITY PROCEEDINGS SPECIAL MEETING DRAF1 JUNE 22, 1993 Chair Dunn called for a break at 6:30 p.m. The meeting reconvened at 6:38 p.m. Economic Development Coordinator Miller advised the board that two developers had submitted proposals for a motel/restaurant and motel project. Miller introduced Mr. Ray Anderson, of Ray Anderson and Associates, who is proposing to build a Comfort Inn with a Bridgemans Restaurant. Ms. Mary McKee, an officer of Bridgemans, showed a slide presentation of their restaurant development concept. Anderson advised that his company would be made up of five directors, three of which have already been chosen. Anderson explained that their proposed motel is slightly larger than the market survey suggests. In response to questioning, Anderson advised that they will purchase the property and have submitted a purchase agreement to the owners of the site. Anderson reviewed the particulars of that agreement. The property needs to be rezoned from single residential to commercial and berms and fences would be placed as a buffer for the adjoining neighborhoods. Anderson explained that he chose Comfort Inn because of their booking ability and rates. In response to more questioning, Anderson advised that there would be a 6 percent franchise fee for the motel and a 4 percent fee for the restaurant. Commissioners inquired about the two accesses shown on the plan and asked if they were both required to make the project feasible. Anderson responded that it would be nice to have both, but was aware of the County Road 42 principal designation issue and felt that something else could be worked out. Traffic issues were also discussed. Miller introduced Mr. Emmett Erpelding, general manager of New Ulm Enterprises, who is proposing to build a Super 8 motel. Mr. Erpelding explained that their proposed motel would be much the same as the Holiday Express that they built in Hinckley, Minnesota and passed around pictures of that motel. He advised that the motel would contain 60 units. Commissioners inquired whether a restaurant would be built with this proposal. Mr. Erpelding responded that they hadn't actively sought a restaurant chain, to date, but assured the Commissioners that a restaurant proposal would be pursued because he felt that a restaurant was needed to make the motel successful and vice versa. More discussion followed regarding the financing of the project and Commissioners questioned whether more personal equity could be put into the project. Chair Dunn directed staff to analyze both proposals, address the Commissioners questions and concerns and put back on the July 6th agenda. MOTION by Edwards to report back to a regularly scheduled Port Authority meeting that the committee of the whole finds that the proposals are insufficient and to re-initiate the request for proposal process to seek additional proposals. SECOND by Sinnwell. 2 ROSEMOUNT PORT AUTHORITY PROCEEDINGS DRAFT SPECIAL MEETING JUNE 22, 1993 Discussion followed. Commissioners questioned Economic Development Coordinator Miller regarding the possibility of other motel developers submitting a proposal. Miller responded that he knew of two other potential developers that were interested in Rosemount, but could not guarantee that either would submit a final proposal. Roll: Ayes: Anderson, Sinnwell. Nays: Carroll, Dunn, McMenomy, Edwards. Abstain: Wippermann. MOTION failed. MOTION by Edwards to report to the regular Port Authority meeting of July 6th the motel proposals and the Chase Brackett report for Port Authority consideration. SECOND by Sinnwell. Ayes: Anderson, Wippermann, Dunn, McMenomy, Edwards, Sinnwell, Carroll. Nays: 0. MOTION by Dunn to adjourn. SECOND by McMenomy. Ayes: 7. Nays: 0. Meeting adjourned at 8:05 p.m. Respectfully submitted, Deborah Widstrom Recording Secretary 3