HomeMy WebLinkAbout4. Receipt of Grocery Store / Retail Center Proposal from Carlson Rosemount Properties CITY OF RQSEMOUNT
EXECUTIVE SUMMARY FOR ACTION
PORT AUTHORITY CQMMISSION MEETING DATEc JUNE 15, 1993
AGENDA ITEM: GROCERY STORE/RETAIL CENTER AGENDA SECTION:
PROPOSAL FROM CAR.LSON PROPERTIES OF ROSEMOUNT COMMITTEE OF THE WHOLE
PREPARED BY: JOHN MILLER, AGENDA � �
ECONOMIC DEVELOPMENT COORDINATOR ��� # l:� �.
ATTACFiMENTS: DRAFT PROPOSAL FOR DEVELC}PMENT/ APP VE B :
DRAFT PRELIMINAR.Y DEVELOPMENT AGREEMENT
Enclosed for your review is a draft development proposal for Rosemount
Village Square as submitted by Carlson Properties of Rosemount. The
Carlsons see their proposal as a beginning of a dialogue with the city.
They are aware that road and utility issues exist and they want to work
with the eity (and caunty) in resolving them.
The Carlsons, Tom Heiberg, and the grocery store operators will attend the
June 15 meeting to begin discussions with you.
I 've also attached, for information and discussion purposes, a draft
preliminary development a.greement prepared by Port Authority attorney Mike
Miles. This will show what an agreement with the Carlsons might look like.
It ' s not presented as an action item but for information purposes only.
RECONIlriENDED ACTION: None. Committee of the Whole meeting.
PORT AUTHORITY ACTION:
t.
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sem�unt V�IIa e Square
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� Rosemount, Minnesota
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Dated June 8, 1993
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Port Authority Meefiing
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Table of Contents
Rosemount Village Square
8.6 Acre Commercial Development
Rosemount. Minnesota
by
Carlson Properties of Rosemount
A. Project Background
B. Current Project Recap
C. Project Development Team Assembled
1. Carlson Properties of Rosemount - Developer, Sponsor & Owner
P.O. Box 69
Rosemount, MN 55068 Phone: (612) 423-2222
Partners C1iff Carlson, Ron Carlson and Rich Carlson
2. Land'Sake - Project Coordinatar, Real Estate Broker. Leasing Agent
P.O. Box 24127
Apple Valley. MN 55124 Phone: (612) 431-7500
Company Representative: Tom Heiberg
3. Architect: Pending
4. Engineer: Pending
5, Surveyor; Sigma Surveying Services
3908 Sibley Memorial Highway
Eagan, MN 55122
Mr. Wayne D. Cordes, Company Representative
(612) 452-3077
6. Contractor: Pending
D. Legal Description and Boundary Survey
1. Lega1 Description
2. Boundary Survey
E. Proposed Development
1. Conceptual Site P1an
2. Conceptual Building Elevations
F. Statement of Need And10r Assistance
G. Project Impact
1 . Job Creation
2. Estimate of Rea1 Estate Taxes Generated
3. Psychic Benefits to the Community
H. Impact on Public Infrastructure
1. Sanitary Sewer
2. Storm Sewer
3. Water
4. Roads. Nighways and Traffic
I . Development Time Table
J. Cost Estimate of Project
l . Shopping Center
2. Pad Sites for .Freestanding Retail Structure
K. Nature and Amount of Praject Assistance Requested
A. Amount
B. Expenditure Categories
L. Preliminary Cost Recap and Financial Information
M. Summary
A. Project Backgraund
The 8.6 acre site is a part of the South Rose Park Addition Replat
and its secand 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 .
Aver the years several proposals for a retail center on the site
have been proposed and have not been completed for numeraus
reasons, such as high construction costs relative to market rents.
lack of adequate population, high interest rates, and the
siphoning of retai] sales demand by large stores in adjacent
communities to the north and west.
B. Current Project Recap
The current concept is for a 65.000 square foot. two phase, project plus
twa 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 16,500
square feet for small shops to hause smaller retail businesses and
personai service businesses.
The second phase will accommodate a 15.000 square foot expansion of the
grocery store as the market demands .
C. Project Deuelopment Team Assembled
1. Carlson Praperties 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 professianal building tenants. Rosemount
Gardens. a contractor service building. Holiday Station Store and
the Carlson Chippendale Retail Center. These facilities are a
strong part of Rosemount's cammercial identity.
2. Land'Sake
Land'Sake and its owner Tom Heiberg have been active in the
commercial land and building business as a braker and developer in
northern Dakota County and the Twin Cities metropolitan area since
the early 1970s. tand'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
restaur�nts.
Land'Sake has managed and 7eased shopping centers, offices and
office service warehouses in the last ten years.
3. Architect: Pending
4. Engineer: Pending
5. Surveyor. Sigma Surveying Services
D. Legal Description and Boundary Survey
l . �egal Description
Proposed Property Division Description
-- p/o Block 1, SOUTH ROSE PARK ADDITION REPLAT--
-Parcel C-
Lot 1, Block 1, SOUTH ROSE PARK ADDITION REPLAT, according to the
recorded plat thereof. Oakota County. Minnesota, Except the West
225.00 feet thereof, as measured at right angles to and parallel
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 foilowing 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 terminating.
and -
Lot 3. Block l , SOUTH ROSE PARK 2ND ADDITION, according to the
recorded plat thereof, Dakota County. Minnesota .
and
(Common Driveway)
The North 60.00 feet of Lot 4, Block 1 . SQUTH ROSE PARK 2N0
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.
(8.612 aeres)
D. Legal Description and Boundary Survey
2. Boundary Survey
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E. Proposed Development
1. Concepted Site Plan
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E. Proposed Development
2. Conceptual Rendering of Shopping Center
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F. Statement of Need And/Qr Assistance
In today's retail market, community shopping centers 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 Foods 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 occur. Because they are large they can incur some
initial losses , to build a competitive advantage by keeping competition
out of the market place and therefore strongly influencing developmer�t.
Since Rosemount is only #our (4) miles fram one of these regianal
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 community
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 substantial additional retail demand and
development as residents are attracted to the area for shopping. Both
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
retail 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 cammunity
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 today's competitive retail market,
We believe that Rosemount desires and deserves a one stop eommunity
shopping center. If one is to develop it needs a grocery store anchor.
To get a grocery store anchor the developer needs to provide the grocery
store anchor with significant incentive the first couple of years and
less incentive in the later years of its lease. With the balanced mix
of incentives the whole community will prosper.
Not only does the grocer need help and assistance, the smaller
businesses and the secondary anchors need smaller amounts of assistance.
This assistance will produce significant payroll . employment and real
estate taxes for the community, which will contribute positively to
Rosemount's quality of life.
_- -
Without the help of the community and its economic deve1opment catalyst.
the Port Authority, it is unlikely that a community shopping center will
develop in the near term.
G. Project Impact
1. Job Creation
Full -time Part-time
��, Jobs
Grocery 30 45
Shops 20 30
Secondary Anchor 7 18
Freestandi ng Retai 1 Si tes .1.2 .�Q
Tota1 69 133
2. Estimate of Real Estate Taxes Generated
Phase I Shopping Center ST12,500 Annual Real Estate 1993 Tax Dollars
Phase II 5 33.750 Annual Real Estate 1993 Tax Dollars
Fully Completed Shopping Center 3146.250 Annual Real Estate 1993 Tax Oollars
Freestanding Retail Sites (2> E 30.000 Annual Real Estate 1993 Tax Dollars
Proposed Project Total 5176,250 Annual Real Estate i993 Tax Dallars
3. Psychic Benefit to the Community
A significant part of a community's identity is its shopping area .
Currently our principle shopping area has served the needs of the
community well over the years. However, now as the community
grows, our popuiation 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 corridor.
� Today's customers are looking for one-stap shopping and the
Rosemount Village Square as proposed will begin to address this
one-stop shopping need. It should help keep residents ' shopping
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.
H. lmpact on Rublic 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.
3. Storm Sewer:
Further analysis needs to be conducted to determine the likely impact
that the project will have on the storm water system. Such analysis and
proper sizing will be part of the final submission to the City.
4. Roads. Highways and Traffic
A. Access ta the site will be off of Chippendale Avenue
and Canada Avenue or directly off of County Road 42.
Customers will exit in a reverse but similar fashion. No
median cut across County Road 42 is requested. There will
be an eastbound deceleration and acceleration lane on County
Road 42 for entering and exiting traffic respectively.
B. Trip Generation
Further analysis of the trip generation from the
proposed development and its impact on surrounding streets
needs to be completed prior to final approval .
I . Development Time Table
The developer anticipates the necessary leasing and financing
cammitments so constructian can commence late summer or early fall 1993,
presuming an adequate City assistance package is agreed to by the
necessary public agencies.
J. Cost Estimate of Project
1 . Shopping Center
A. Ldnd S 750.000
B. Construction and Improvements t2.500.Q00
-2. Pad Sites for Freestanding Retail Structures
A. Land - each site between 5150.000 and 5200,000
B. Construction and Improvements 5300,000 to 5600,000
K. Nature and Amount of Project Assistance Requested
1 . Site Development Assistance
A. Amount S3S0,000
B. Expenditure Categories
1. Roadway improvements, including grading
2. Parking lot construction; surface and curbs
3. Parking lot lighting
4. Landscaping
5. Storm sewer construction
L. Preliminary Cost Recap and FinanciaY 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 350 autos
Shopping Center Costs:
Land t775,000
Buildings
Site Costs: �400.000
General Conditions 5140.Q00
Building Shell b1,050.Q00
Leasehold Improvements
A) Grocery 49Q.000
B) Retail 270.000
Tota1 Direct Costs Buildings b2,350,000
Indirect Costs:
Architect. Leasing, Marketing
and Professional Fees 225,000
Financing Fees 50.000
Interim Interest 135.000
Legal and Consulting
and Miscellaneous 75.000
Total Indirect Costs �485.OQ0
Shopping Center Casts 53.610,000
Rosemount Village Square
` Preliminary income and Expense Summary
Gross Scheduled income: Rents Averaged Over First Five Years of Lease
June 8, 1993 Draff
A• g„
` Rents required by " Market rents
costs and retum on
investment standards
Per Market Flve
Leased Square Required Per Square Scheduled Annua( (5)Year
L�� A[� E9�S.Qf� �IIt �4�.H�Dt B�llt Difference Difference
Grocer 25,500S.F. $7.00 5178,500 S 4.25 S 108,375 S70,125 5350,625
Sub Anchor 10,000 S.F. $9.00 $ 90,000 S 7.50 S 75,000 $15,000 S 75,000
Shops 16,500 S.F. S T2.� S 198,0� S 10.00 S 165,000 S33,�0 S 165,000
A B
Annual Gross Scheduled Income: 5466,500 5348,375 S 118,125 5590,625
Less Vacancy and Credit Loss(b.l�o) S 28,600 S 28,600(8.2�a)
Adjusted Gross Schedule ineome $437,900 5314,775
Less Expenses
Vacancy Care Charges 2,600 S.F. x 54.25/S.F. $ 11,050 S 11,050
Leasing and Remodeling Expense S 30,OU0 S 30,000
Administrative Expense $ 5,OQ0 $ 5,000
Sfiructural and Roof Maintenance S 7.500 � 7.500
Total Expenses: $ 53,550 S 53,550
Net Operating income: 5384,350 S266225
-Debt Service Summary:
Proposed Debt and Terms: Mortgage 52,700,000 9%Interest 25 Year Amortization
Less Debt Service 5271,890 5271,890
Average Cash Fiow First Five(5)Years S 112,460 <S 5,665> S 118,125 5590,625
Rosemount Village Square
Preliminary Income and Expense Summary
Gross Scheduled Income: Rents Average Years 615 of Lease
June 8, 1993 Draff
Leased Per Square Scheduled
ienant Area �t Rate gg�
Grocer 25,500 S.F. 57.50 S191250
Sub Anchor 10,0�S.F. S 10.� S 100,�7
ShoPs 16,500 S.F. $14.00 $231.00Q
Annual Gross Scheduled Income: S522,250
Less Vacancy and Credit Loss t8.5qo) S 44,391
Adjusted Gross Schedule Income $477,859
Less Expenses
Vacancy Care Chorges 3,000 S.F. x$6.50/S.F. S 19,500
Leasing and Remodeling Expense $ 44,000
Administrative Expense $ 14,0�
Structurai and Roof Maintenance S 35.00Q
Total Expenses: $112,500
Net Operating Income: $3b5,359
Debt Service Summary:
Proposed Debt and Terms: Mortgage 52,700,OOQ 9%Interest 25 Year Amortization
Less Debt Service 5271,890
Average Cash Flow Years 6-15 S 93,4b4
M. Summary
Upon final agreement from the City of Rosemount detailing its commitment
to provide 5380.000 of funds for site improvements. Carlson Properties
of Rosemount is prepared to commit to build a shopping center containing
approximately 52.000 square feet to serve the community and its
surrounding area, subject to final lease negotiations and permanent
financing on approximately seven (7) acres af an 8.b 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 the dialogue about our request and
action on our request by the Planning Cammission, the Port Authority and
City Council .
FLk�lE�EL MO'7`I�IHHfd TEL No . 16124�b9777 Jun 11 ,03 13 ��� No .001 P .02
F'R�LIMINARY DEVEL�DPMENT AGf��EMENT
THIS AG}t�:r:.MENT, is �ntPred int� by and b�tw�:c�r� t_�ie City af
KC,�Pmountr Ninnesota, acti_ng through it:s �tosemount PU�rt Autharity
{h�r�:irt�fter r�fc�zred to a5 "ft�'A" ) and Carlsan Prc►��£r't�,i.Qs af
Rosem�un�_, P . t7. Box 69 , Rosemaunt, Ni,nnesota 5506f� (hereinaf:t:Qr.
r�ferr_�d to as "CARI..SON" ) .
�K�ITALS
i CARLSON �.s desirou:� oi: r.c�nstructinc� e,� neighL-orhood �-etail
cammer�ial ��:nter of d��roxS mately 5S, 000 square f�;c:i: ar�d
a ��arka.ng lot th�refor. , on prc���rl.y owned by C��rlson, ir�
Rasemount, Minnesota , and hereaft�r' describec3 in
Lxhibit I�. The neighbor.hood r�tail cammercial ceriter and
related facili�:ies axP her�inafter refc:rr�c3 to as the
„P�ZO��CT; ��
• R�'A is desa.r.aus of prov�d i ng financ�.a7. ince.riti.v�,s Lc�
CAIZLSON t� cor��trucL and rnairitairl t:hP PRn�7�CT;
• C:AttLSUN c�nd RPA wish to cnt�z� �i�Lo a �z-eliminary
D�v�logment Agrecntent through whS ch the b�sy c terms ar►t�
conditions ��ssociatEd wit_h the consi�ruction of the
YROJFCT and tti� �rov�.sion Uf �t�'i1' s assi5tdrice to C:ARLSUN
r,an 17e s�t ft�rth; and
i CARLSON ��nd RI'A intend to be l'�ount3 by the LE�z�t7�s c�f thc
Yre1�ma�nary De:velopmenr. �,gre:rmenL ,
, rLI,IE�EL �1Ur'fdIHHfJ TEL Na . 1b1243�977� Jun 11 ,03 1� � 34 No . UU1 P .U�
NC)W, '1'H�TtEF�RF, it is agr.eed bet�aecn the �artic:� as fc�llows :
] . C,ARLSON'S CONSTRUCZ'].UN RESPONSI�YLYTIES. Ii�
c:c�n�z.d�ration Uf th� incentives fic_t forth ii� S�ction 3 �f t_his
AgrePment, CARI,SON agre�5 Lo r.on�truct thQ px'a�ect �n the ��r.�perty
dcs�ribed in r:xhibit A, suk�stantially a� s�� farth in the
dimensions and drawings con't�ained in Lxhi.�:.i: B. Additional2y, ttie
anchor ten�nt in i.he pro�ect shall b� a ma�or grc�c:c��'y si:or� chai.n
autl�t . CARLSQN agrees t.nat it will e�nt:er into a f i r'm ca�ztract
with a ma�oz' grocery sLoz:e chain to scrve as th� arYchc�x- tenant for
t.hF project by rtot later than Ai�gust 1 , 1993 and provid� a �apy of
S�id CUntract tc� t}fc: RP11.
2 . CONSTRIJCTION TIMF X.1NE. CARLSUN shall cause the P�zn.7ECT
to be fully CorlStructed arid c:nmpleted n�t l.�i_er. than Jun� l , 1995 .
3 . RPA K�SYON'SIBII�TTIES . in cansideration of CARLSON'S
under.taking Uf i:he PRaJ�CT, ttle KY�1 shall providP the f�ll�w,a.iig
incentiv�s to CA�T,SQN:
A. Provision of Land. RPA sl�a�.]. pr.ovide ap��1"csximately
ten acrPs of conLie�uaus xsal praper.ty witYiin t.t��� �lann�cl
}2t�semount businc�ss park, whic:}� park shall k�e located on L-hc:
proYerty s�t forth ir� �xhihi.t C . T��e s��r...i fic t�riWac7'� tr.act
r�f land wS.�khin the proper.t,y described �.n Exi�ik�it C, whicti
shall be: prav�.dsd to CAItLSON shall be se�.er.Led by the R�A.
3'he �2YA' s fulfillment of th�.s cov�ndnL �i�c3 conveyance oi the
ten-acre parc�l are subjec:� to and 4on�:zngent upon :
2
, FLUEGEL h1UYNIHHN TEL No . 1b12�1.��sy777 Jun 11 ,0� 13 ���l No .OU1 F' .Oa
( 1 ) The KYA' s acc�ui,si.t.iori of the property d�:�Gr.a.k��d
in �:;xh�,n�.t C;
( 2 ) AApxoval. of both thc acquis� �:a o7� of the
�iroperty s�t forth an Exhi.bit C and conveydr�C.h o�: r� tPn
{ 10 ) acr� porta.an thereof , t� CARLSON by LhP Rosemount
Ca.ty Council;
( 3 ) CAI2LSON' S �yr.ee���ent, as evid�ncCd by execut�on
of. thas Agreement, to pay any nnd t�ll assessmEnts
attributable to the specific t�n � 10 } acre tract conveyed
to CARx.SON within Exhibit C resulting f.r.om the RPA' s or
t:h�: City of Ros�rn�unt'S deve.l.��ment af the property
cicscrik�ed in Exh.i.b�.t C as a bu�iness park; �:�nd
{ 4 ) C�mp].eted Constructiori k�y CARI,SON, by no later
tttc�r► Ju],y 1 , 1y95, of an enCloscd hua,].dinc� of at 1�1st
25 , 000 squ�x�s feet �n the t�en ( 1� ) acre tx-act cr�rzv�:y�ci to
CARLSUN within th� �roperLy dQscx:ibed in Exhibit C .
�3. �3evea.4pment I'unding. In addition to the provisior�
of real estate, r�s sCi: forL•h a n Section 3 .A. , aYaovt�, 'Che RPl�
�haJ.I �rov,i.dP the sum of Two �iuridr�d �nd r'orty Thausancl
Dnllars ( $240, 000 ) to CAKJ�SON for expenditure vn Lhe �R0�7�:CT
subject to the following cond�.t9.ons :
( 1 ) '1'he sum may only be used for aqp�cts of the
N1ZUJk:CT c�ther than c�nstruct�ion and fur.ni.shing of the
n��,ghboxhood retail c�mmerc:ial. ccn�.ez building(s ) ;
3
r��E�EL 11UYIdIHHN TEL No . 1b"12���977? Jun 11 , 03 13 : 34 No .uu1 P .GS
( ?. ) Th� sum shall be only �ai.d �ut i,� �rr��ars u��n
�rc:scntat:,ion by CRRLSON of reccipts or li.en waivers for
improvem�nt5 alrcady cam�] eted and paid fc�r by C11RZ�SON
��ux su�►r�L Lc:� ( 1 ) al�ov�;
( 3 } No poxti.on o� the Twc� Huricirc:d r�rici k'�a:�,y
Thousnnd Dollars { $240, 000 ) snal,l he available to CARLSdN
uni�il C�RLSQN has produc�d doCurncntation that it has
expendeti at lcasL art equ�'�� sum of money c�n thc: �rc�jec�;
and
( 4 ) `1'he 'T'wc� Hunt�r.ed and Forty Thousand t�t>a.]�rs
( $2.40, 000 ) shali only be made �vai.lan�,� to C1�RLSt7N after
r3p�r�va1 �f th� provision of th�.s �unding by thc:
Rosem�unt City Cvur�c:z�. .
4 . DEVELOPMENT SEC:URITY. Tri ConsidCration of the RPA' �
w�.J .l xngness to untiertake it;s covPnants under this Aqr�ement,
C:�x1.,SON agre�;5, an LhP ciaLe of executian of t}i.i:� Ay c���n�cr�t, La
pr.�vide the RPA wi�h a C:ashier' s �x. Certified Ch�ck in the sum af.
Fi.ft��n T2iau�and Uollars ( �a.5 , 044) . This sum sha11 ksQ placed in
�scrow by t:hP RPA and may b� liquidaL�d ksy the RP7� in accc�z�c� w�.t.t�
t}ie provi�j.oz�s �f paragraph S below,
.5 . UUTY TO PURSUF.. nEVF.z.OI'MLN1.`. C.ARLSON 5}�d] ] ��LvCe�d
dilic��ntly wit;h thP unc3ertakinq aric� complGt:ion ts� the PROJECT.
S�i�ulci CARTaSON fail to make substant�_at �x;ogress with the �'K�,7F,C'�'
by ,7un� 1 , 19 9 4 , Lh� tt1�A may 1 iquidat� arit3 r�ta i n the Fi f teen
rl�ho����nd Do�.l.ar {$15, 000 ) surn speciii�d �.n p��ragraph 4 , at�c�ve, and
term,i.nate this and any su}��cquenL aqa.rPement b�tw��n Lh� RPJ� and
4
rLU�.��L f1UYN1HH�� TEL Ida . ibi2:138y777 Jun 11 03 13 � �4 No .uU1 P . Ub
C�LRLS�N regard.i.ng the PROJEC'1'. 1n sur.h event, CARLSON shall remove
any and ail o� its equipmen� and material� fro�n the �ROJr�CT sit�:
anci �ha].]. restoxe the site Lo LriP canditifln iri wtlir.h iL existed
prior tc� thc� unclert�king of any PROJF.C�' activities . F�r ��urp�ses
of L•his �ar.�3gx'aph, "subst:antial. progress" t�n i:hc �tZ0,7ECT shall mean
that CARLSON has obtained wc�rking drawings for th� Y2t0,7x�CT and
ad�c�u��te and firrn financing for completiUn of Lhe k�KOJECT. If
CARLSUN d�.ligently undertak�s c�nci completes the PRUJEC7', t,}ie
$15, Q00 held by thP R�A shall b� r�?LuLned to CARLSON wit?iiri �.h�.r'�_y
{ 3U ) days of suhstanti� l. com�letion of the PR�J�C7`.
6 . PROVISION Or PRQ�r;C'I' xNFOFtM71TION. Ir� t�rd�?r i.o allow the
RFA to d�t�.ermine what progress CAEtL50N is m�aking �n t2'►e 1'ROJECT,
C;A�tLSON a�i�es to �11ow the RPA to reqt�est and inspt�cL any �RUJECT
doc:uments in th� j5c��ses�a.�n of CILRLSUN at any time during th�
pendency di the YftU�t.C'1' during busines.� houx's . 1'he 1��A sYiall �rc�d t.
any Pk�Jr,C`1.' � ntor.matian sa �rovided i_r� it as confid�rit,9.a3 �nd sha12
nr�L d i s�a ose this infr�rrnaL.i.t�n tc� any third pdx.��.y, GL11ez tha�1
officials �nd �mplayees of the City c�f Rosemourtt, wa.t:}iC�tit t�lE
direct�.on �nd/or written cflnscnt �� C�LS�N .
7 . C,UMPLIANC� W1.'!.'H C1'1'Y' REQUIREMENTSIORnXN.112�C�S. As f_ht�
PROJECT �roceeds , CARI,SnN agrees ta abi.dP by an�r txnd ell. C�.ty
rec�uiremenLs or c�r.di,n�nces r�latir�y �o stxch � PRQJECT, ir�c.J.uc3.i,rig ,
buti ttnt_ limited to, lighting pl�ns , traffic cUn�r.c�� iequirements ,
ut:i� .i t.i �s provisians � SCYfiC'1lll1C� of trash �nd c��rb�ge containc:r.s ,
th� prov.i s,i.on of necessary �asent�nt.s and the paymertt_ nf such f��s
as park d�?dic�Lion, k�uJ.ldi.ng permit and c�SS�ssments .
5
F!I�EGEL P10' NIHHtd TtL No . 1b124389777 Jun 11 , 03 13 � 54 No .001 F . 07
II . SUF3S�.QCJ�'NT ACRE�MENTS. T}ie f�YA and C,AttLS(7N agree tht�t,
as Lhe �ROJECT proceed� ancl more s��eifics ar� availabl�, the
parti�s wa l.1 enter into subsequent �c�r��:rnen�s, �s necessary, ai.n
order to facilitdtt� t:h� r.ompletion af th� PROJECT,
9 . 7NnF.MNIFICATION. CA.RLSON Fig:r.��s th�t the RF�A' s rUl6� ir�
the project is limited t:o t.hat o� a funding SvurC� c�rld th�t the RPA
will h�v� no active ro3e in th� c�t�:5.ic,�n or construction of the
PR0,3ECT. 'i't�erE�f.�rc�, CAkL�C7N agrees tn intiramriify, dc�f�end and hald
h�r.mless the RPA from any and all r.laims anci causes vf act�ion of
whatSUt:vCa_ rtc�tU�'P arising from the urideztak�.r�g of the PROJECT.
1.0 . �.DMINISTRATIVE PFZOVYSYONS. `
� . Governing LawlCampliance. 9'h i s Agreement driti �riy
activiti�s undertaken hereunder sha1Z be yov�rrled hy the laws
t�f thC St:at_e of Ninnesota, the Cc�urtty c��' D�kota c�nd the City
c�f Kosemount, Mirirt�sUt.a . CARL�SON ��gr.ees to c�m�ly wii.ti �rty
and all �f th� abov�-refe.rencec3 ,l �ws in the uriciciLaking n� the
FROJ�CT.
B. Assignm�nts. Neit:her' pnr.ty may ab5iyri 3.1:5 :l.J1I:P.1•est
or r�5�ansihilS.ties in this Ac�r�cmcnL wa.t�naut the pric�r
wz�i.t.t.Fr� C,;t=1[1S�t11r of tl��: othcr par.ty.
C . SeveraY�ilit-y. Tf any pr.ovi.sion of this Ayreement as
fotinc] t� be un�nf�rceat7le by oper��tir�n of law or ot.herwi.se, i.t
shall not af fc�c:t L-he rem�,in.i.ng portions of ttii� l�yz'�:ern�nt,
which sha].]. bP deemed of full force arZd eff.Pct .
U. IiEIRS AND ASSIGNS. '1'n.i.s Agresmt�nt �?ia3.�. .i.nuz�r� Lo
thP benefit of the h�irs and assJ.gns of �he �artic�� }iez•�Lra.
6
, rL,.U,E�EL i1UY'I�IIHHId TEL No . 1612�1�by7�7 Jun 11 ,03 1� �34 Nr� . 001 P . 08
E. NOTIC�`S. Any notices to be c�ivc�n bx either �arty to
Lt�►e c�thPr. shall k�� s�nt; t�a �he f c�llowinc� addresses :
RPA: CAT�tLSlJN
A�Ln: Jo2in Mill�r
2�375 -- 145th St,r.�:�t Wcst
Rosemount, MN 55068
xN W1:'�'NESS WHEREOF, thE� �c�rta.t�s have executed thi.� Ac�r�eement,
S.r-�t_Fnding to be bound ther.ehy.
Uated : ^_ , 199 3 xNn
�Y• ^.......,._,. ._,
IIy: _
Uci tE:d : W�.�,..TT_ � 19 9 3 . CRRLSON
��' �._... ..� ,
BY� .� ......._._ _
cicyrosE\Carlsor.UA
�