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Home My WebLink About4.d.5. The Steubner Strategy for Business Park Development S CITY OF RO5EM0'ONT EXECIITIVE SUNIl�SARY FOR ACTION PORT AUTHORITY MEETING DATE: DECEMBER 21, 1993 AGENDA ITEM: THE STEUBNER STRATEGY FOR AGENDA SECTION; BUSINESS PARK DEVELOFMENT WORK SESSION PREPARED BY: JOHN MILLER, AGENDA NO. ECONOMIC DEVELOPMENT COORDINATOR 4 .D. (5} ATTACffi�iENTS: BUILDING SKETCHES FROM VANNEY A: ,OV�, BY: ARCHITECTS, MEMO FROM J. MILLER Please see attached. RECONIl+�NDED ACTION: Discussion item. Possible referenee to business park promotion subcommittee. PORT AtTTHORITY ACTION: M E M 0 TO• Chair Dunn Commissioners Anderson, Carroll, Edwards, McMenomy, Sinnwell, Wippermann FROM: John Miller, Economic Development Coordinator DATE: December 16, 1993 RE: The Steubner Strategy for Business Park Development The most successful business park developer I know is Broaklyn Park' s Jim Steubner. It was in the 1960` s that Steubner bought more than 200 acres of Brooklyn Park potato fields that were visible from I-694 but not accessible. For years Steubner wo�ked to get access from the freeway and finally was successful in getting the Boone Avenue interchange constructed. I was a fresh-out-of-school planner at the Highway Department at the time and did some traffic projections for Boone Avenue and I remember wondering how anyone could think an interchange was justifiable. There was nothing there. Steubner was a salesperson though. First of all he sold Brooklyn Park and the Highway Department on a falded diamond interchange. Then he sold 200 acres of industrial land. Oh, it did take him 25 or 30 years but he did get the job done. It should be remembered too that when Steubner was active in marketing his property, the north side was not a hotbed of business activity. The "southside syndrome" was alive and well and anybody who knew anything would tell you that any quality or large scale development would most likely end up on the south side. That' s how things worked in the metropolitan area, plain and simple. The north side was the home of the 3-b' s of beer, bowling, and blue collars and not much else. There are a couple of similarities between -Steubner' s past situation and present day Rosemount. First, the city can easily be perceived "as too far out" just as Brooklyn Park was when the Beatles were still popular. And second, the southeast part of the metropolitan area is not an area with a big and growing business base, most business is in some other- part of the metropolitan area. This means there will be little spin-off development occurring in Rosemount. . So how did Steubner do it? What was his strategy? � Simple, he put up a building. He didn' t sell it but he leased space to smaller tenants keeping ownership himself. Some of the tenants went broke, others moved awa�r, and a few prospered. Those that prospered were offered space in a larger Steubner awned building or offered land on which to build. This strategy coupled with a lot of hard wo�k and a lot of cold calling on business prospects worked. Steubner beat the southside syndrome and developed his business park. Now just for the record, Steubner in his later years developed a Midas syndrome believing he was infallible. He built a large hotel, I think called Northland Plaza, and ended up filing bankruptcy when the hotel failed. But still the Steubner model should be of interest to us in Rosemount. I've visited with Bob Vanney, you' ll remember he' s the architect that' s done sorne work for Rosemount and worked with the port authority in studying Nordvick' s building as a possible site for Regairs, Inc. Attached are a couple of rather generic plans for multi-bay buildings, one planned for Apple Valley and one for Cambridge. Today the most ma.rketable bays are about 2, 500 square feet with room for offices in front and warehousing or assembly in the back. Usually each bay has a separate office entrance and loading door or dock. Construction costs range form $17. 00 to $30 . 00 per square foot and in today' s market can be leased triple net for about $8 . 00 for the office area and $4 . 00 for the remainder. With the higher construction cost better grade exteriors including some brick can be had. Yes, total building costs can be high. A ten bay building with 25, OQ0 square feet at the high end cost of $30 . 00 is $750, 000 . Of the calls received in the office, more than half of them are for sma.11 spaces - not necessarily retail. I have briefly visited with Diane Pinkert about the local market and she also has received calls about smaller non-retail spaces. She has no listings . I've discussed the proposal with only a handful of people locally and one person has already expressed an inCerest in leasing a bay. Could this also be revenue producer for the port authority? Presently the port authority' s subcommittee on ma.rketing is studying ditferent ways of promoting the business park. Developing a business park sales strategy that includes at least one port authority owned building is a major decision and in this regard I wanted to test the idea with the full board. If you see any merit in the strategy at all I would recommend asking the promotion committee for a recommendation after its study and review. dw 'V �'��.e�tr v l�.ssociates _�rchitects � Planners OFRTC:R �� ,iyT�c{�f�t�� Nelson Har_d�cr�w � �,��i'r"i" �G�� — BIOGu?T<��:'_'_, �'!y:. � WN 'i) i"� � � ��.�tJ f _ ��,��:0 Jc . _u. ._ L� � � _ �z�rv � �-�' �� )-��Qp�} - Gfii�s ar.c i•fa.^.u��ct��r=.�^� — (�, �:� �� Q�� U * Rubber R�sear�'r. ._.- � /ln� �,}--. � �C..t.J 3� �`'IC!�y. 11_^.. - 15G ,CCO �c . _�. — i sL�;�y vr�_.�� Cni.. .�G�Ii:��GC:.��ii��:i:. � . * Apple Valle� Rusiness Cent�r ��.�"� � � �'l,,� - �� j�,�,��f�J `� �'�'� �� - ?T:D?� `Jc�_=�, i/�r�.�. �' "�� ! �� ---�.-...�.. 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Oit.• �aI . . � g C ,, ; D F O H J N P a R t�tlH � F1.00F�PI.AN AV.IR` APPLE VALI.EY Bl1.SiNESS CENTER Af'Fl.E VALLEY.MMESOTA �Vanney A.ssociates Architects . � Planners oFFTCg �unwRrx�►M� * Neison Handscrew * Dakota Bi.isiness Plaza - Bloomington, Mn. - Mendota Heights, Mn. - 35,000 sf - 49,Q00 sf - 1 story - 1 story - Office and Manufacturing - Office and Showroom * Rubber R�esearch * Anoka Business Center - Fridley, Mn. - Osseo, Mn. - 150,000 sf - 42,000 sf - 1 story - 1 story - Office and Manufacturin� � - Office and Showroom * Apple Valley Business Center � - Apple Valley, Mn. - 80,000 sf - 1 story - Office and Manufacturin� * Rush Lake Business Center - Phase I - New Brighton, Mn. - 44,000 sf - 1 story - �ffice and Showroom * Rush Lake Business Center - Phase II - New Brighton, Mn. � - 26,000 sf - 1 story ` , Office and Shawroom ._ . - * VFG Building , � - Brooklyn Park, Mn. - 154,000 sf ; - 1 story - Office_;and .War.ehouse _ ' . ..� .. . . . . <: . . * . DeVries. Bar Grind ' . � ��.,:-: . . , ��• � _ . - Minneapolis� Mn'. ` - 15,000 sf - 1 story - Office Addition 3440 FEDERAL DRIVE Eagan, Minnesota _...,..., � � . � �.. .n\ •..., ....n.+�