HomeMy WebLinkAbout5. Receipt of Movie Theater Proposal From Muller Family Theaters CITY OF ROSEMOUNT
EXECIITIVE SiTNIlKARY FOR ACTION
PORT AUTHORITY COMMISSION MEETING DATE: JUNE 15, 1993
AGENDA ITEM: MOVIE THEATER PROPOSAL AGENDA SECTION;
COMMITTEE OF THE WHOLE
PREPARED BY: JOHN MILLER, AGENDA NO.
ECONOMIC DEVELOPMENT COORDINATOR
.s
ATTACHMENTS: CORRESPONDENCE FROM MULLER APP
FAMILY THEATERS
Attached for your review is a faxed copy of the Muller Family Theater' s
proposal for a ten screen theater to be located on the Lund-Thorsen site.
I have forwarded the propasal to Springsted for its review and analysis of
thA financial part of the proposal .
Mike Miles and I have visited with Springsted about the proposal and also
with City Engineer Bud Osmundson about engineering concerns and site
concerns.
It is possible to have 1993 construction on the site but several issues
should be resolved. The Mullers and their consultant should be invited to
a special Port Authority meeting on June 22, 1993 .
RECON.Q+�IENDED ACTION: Discussion - Committee of the Whole meeting.
PORT AIITHORITY ACTZON:
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Mf.nneapoli� Community Deve.lapm�nt Agency
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h1ULLER FAMILY THE.�,TF?�5
49�0 - 54TH ST, N,W.
M�PLE LAI�.E, C1N. �53�8
612-963-3041
June 10, 1993
.�ahn Miiler
Economic Develapment CaordSnator
Ros�maur�t Port Authorlty
Cfty of Rosemount
2875 - 145th St, West
Rosemount, MN, 550�8
RE: Rosemount Mov1e Theatre Development
The Muller �amily Theatre'� propose to develop a 2Q �creen movle
theatre. Initially wlth ten screens, on th� Lund �nd Thro��r� parcel in
t�e Northwest Development quandrartt cf �,T,H, �'3 �nd �.�.A.H. �'42
Th1s develapment will lnvoive an lrtve5tment of �2,9�9,OOa for
bullding, equlpmer�t and slte 1mprOvem�nts, not lncluding th� cost of
l�nd, Bas�d on our experlence ir� camparable communit�es we are
pro�ecting s�m� 46g,00� partrons annually at tnls locatl�n, w1t� t��
flrst Ahase develo�ment, The Th�atre w111 feature first r�n movies and
be open 3b4 days a ye�r, lnitla�ly, there w111 be � Se�t1n� C�p�G1ty ot
2,�Q0 seats.
We have� chosen thts slte for several reasons;
a.) ba�ed on the lnformation that has been provlded, this site can
be�t meet our time schedule for 1nitlatian of construction late
thls summer with an opentng ofi the factllty prfor to the Easter
season;
b.) a movje theatre d�ve}apment at this locatior� would be mutually
b�nefictal to both the existing retail businesses in th� Centrai
Business Otstrlct and for future retall develapment, 1t has been �
obs�rued that our p�trons w111 mak� addltianal purchases both
before and �fter attendance at theatres, for at a minimum m�als
ana refres�ments; and
c,) our development on �his site, will be Gomp�t�ble with the Design
Crlterla recommended by the Downtawn Scoping Committee,
which wili further the implementatlon of their criterea for
future development,
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Mull�r Famiiy Theatres owns and operaies theatre� in th� [ollowing
citles: Monticelia �4 Screens), pelano (5 screens), waconta (6 screens),
' and East B�th�l t6 screens). Currently we are adding 4 screens ta our E.
Bethe] Theartre, wfth a campletion qate of July 1 S, 199�, providing an
aggregate�mavte s�reens in four city's,
B. The complex wili be owned by Muller Fam11y Theatres. Mlchael �nd
Robert Muller are the princlpal owners. M1Ghae1 Muller� age 52 1s
married wlth thre� chlldr�en, He has a B.A. dec�r�e 1n accounting
from St, Cloud State, He had worked tor the U,S, Govenment for 1?
years. Bob Muiler age �81s marrled w�th three chtl�ren. He has a
B,A. 1n 6usiness Management from St, C1oud State Unlverslty. He
and his partner awn and op�rate Muller Pribly Ut111t1es, � Mtnnesota
based Cprpbr�tion,
C, Managemerit of this and the ath�r Theatres w111 be handied by
�1lcnael i�uller, Mr. Muiler has b�en in the the�tre business far over
�0 years, the last 15 years as owner/manager, His son Ken Muller
(age 26� w111 assist 1n same of tf�e mar�agement dutles. Rabect
Muifier will consult and be involved wlth the buiiding of the project.
The curr�nt owners have been responsible for tt�e develapment c�T
three af thelr the�tres and are currently expanding the h�a�#e�filo C-rrs� g,�{,�,
Theatre.
D. No �ppr�aisals have been made. Nowever, based on aur experience in ;
comparabie cbmrr�unites we would estlmate the value og thts site if
1t were prepared far development to range $0,15tper square faot ta
$0.56 per square fvot.
�, 7he costs of the proposed prtv�te development, slte costs and
preparation cauplec� wlth conv�ntlon lending �ates and terms are
prohlbltiv� to proceeding with thts pro ject, T�erefore anly v�ith '
�ub11c fin�rtcing asslst�nce and �1te �ssembly and preparatlon can
the development acnleve feas�billty.
�. The on-site mandgement vt the Rosemount Tf�e��re beside Mike and
Kert Muller will cottsist of 2 fulltime ttcf�et selters, six part tlme
tlCk�t sellers, � fuli time projectianist and 1d p�rt time
pr6�ectiontst, Opportunities far youth emC�loyment w111 be provided
by the 4� part-time concession stand attendant positlans. At ather
Mu11er Famtly theatr�s, the posltlons are fi3led primarlly by high
school honor students al�o, � full tlme �anitortal p�rson w1l1 be
empioyed.
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�2. W� ��t1t11�C� th� initial pro�ect COStS tb bC $�,949,000, wh1�h
includes the bt�ildir�g, eqwipment a�d parking lot inst�llation. T�1s
tlaes not include the cost to us far the sSt�.
F3. The initiai complex can be expected to attract �68,000 patrons
annually, appraximately 9004 peopie per week, based upon Muller
Family Theatres experlence at other �he�tres, Our studles have
shown that �bout 70 to 75 percent of the people attending a movie
wt11 elther stop for meais ar other refreshments. A key element �n
the �ucce5s of h�uiler Famiiy Theatres oper�tion has been 1ts
atrtllty to obtaln first run fe�tures u$ualiy an the natfanal r�lease
dates which colnClde wlth their �howings at otf�er M�tra theatres.
Ticket prlces are lower tt�n what other metra-area theatt�es are
�hargSng for the same shows at the Smae t1me. Prices for
concession ltem are also lower than our competitor5. Muiler
Family the�tres ar� kr�own for their clean ar�d trendly a�mosphere,
smoking is not allowed anywhere in the theatre building.
Disturbances by individuals that might affect en�oyment of a shc�w
by ot�ers are not toFerated. Each auditorium wii3 have "cry room°
for Parents with young children. Ail seats wi11 have pop cup
holders. The auditorum floar�s will be covered with vinyl t11e.
Regulation perta�nfng to ur�qeraged p�ople attending R-rated
movtes are strictly �nfarced, sfgned r�otes from parent are
req��red fc�r admlttance and are verlff�d by phone, Muiler Family
Theatres do not play X-Rated or NC 17 rated movles, Each of the
tert sCreens w111 feature 5 showing d�1�y with the complex being
open from about 1 1;4� AM ta mldntght,
G1, Based on our experfer�ce, we estlmate the vehlcie count to be 4,040
cars per week, spread over the tlme perlod de5cribed,
�2, We propose vehicles wilt acce$s the s1�e prfmarlly from state
truck highway number 3, wlth four ianes at ea�h tngress-egress
locatlon,
G3. �ee �ttached prellminary stte ptan.
H. 5ee att�ched slte pian, The entrance to the slte wi11 need to
provide � �ntrances & 2 exit lar�es at each locatlan, erge 4 1�n�s far
each poSnt �f ingress and egress.
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i. The tirst stage ot the pro�ect will be to canstruct a 30,OOq to
35,Oa0 square fr�ot building out of lntergral colored block, gt�z�d
biocK burmshed bl�ck and giass. The bulldtng would accomodate 10
ampie si�ed auditorlum�, with seating capaclty af 2,2C�0 seats, Th�
lvbby w111 serve as a walting area �or those coming to see shows,
thfs ar�a will acCpmmodate approxim�t�ly 25� people, After seeing
� show, people will leave by exlts which will allow the departing
traffic to be s�per�ted fram those w�iting far the next show, All
aeCess at�d exits w111 c�nform to state regulations, 1nCiuding the
required allqwanCe for� the handiCapped,
The parking lvt would contain a minlmum �f 6�d parking spaces. The �
second phrase ot the pro ject woul� be to add addltianal aud�toriums an�
parking spaces when war��nte� by popu�ation increases in Rvsemount
and a nine mile radius,
J. We would hope to have the s1tA avatia�te for construction no later
then �eptember 1 , 1993, have the buiiding enclosed fn m1d to late
Octaber, the parking lat blacktapping done befare freeze up, �nd
selling the f#rst tickets by March 15, 1994. Final iandscaping of the
slte would qe done in sprfn� of 1994.
K i. Untt l th� actual costs �f ���Uistion �t1� �ite preparativn of the
subject site are determined, we are unable to answer this, lt wouid
be aur lntent to answer this, !t would be our lntent ta purchase the
stte �t a cost comp�rab)e to our ather develapments. We would
cansider "P�y as You Go" to potentially daminish the City's bond
debt for the acquisition and site preparation, including the
potential ot doing some of the site pr�paration worK tt� expedit� the
slte being ready tor c�nstruction.
2-4 We have prev�ously outiined th�se costs,
�. The publlc asslstanc� we are r�questing to permlt us to Qroceed are
as foltows:
1. The Port Authority to tssue a taxabi� G.O, k�ond wtth $2,949,00�
c�P proceed� ta f#nar�ce the cvnstructlon of tne t�eatre, parking lot
lmprovements and equipment, 1'he interest rate on these bonds not ta
exceed six (6�) percent, w� wfii be tne responsible partles for debt
servlce. Al�o it is our lntent to provide �ppraprlate gaurantees for the
debt servlce on these bands,
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?. The Port Authorfty to aquire the total �ite and ir��tialiy provlde a
�fx (6) acre parcel for our lmmediate developernent. Our
purchase and our lease of the iand wili be negotlated, based on
yaur costs and our tax incriment.
3. Tne Port Authortty wtil do a phase 1 environmental assissment
pius saii bor�ir�gs to determine any sofl carrection needs,
4, The Port Authority will provlde for appropriate site preparation,
utility, vehtcular access, plus suitable buffering trom adjacent
restden�lal areas, We w111 be r�sponstbie for the slte and
parking 3ot improvement,
M, Title ar�d access for cor�struction of the site� by September 1 , 1993,
Final site grading for a canstructlan pad and pav� tootings by
September 15, 1993, Extend ut111t1es to bullding foundatlon by
Sep�ember 30, 1993, Parking iat black topping by Qctober 10, 1993,
Bulldtng framed and enclosed by November 15, i993, Butlding
fjnlshed by March 15, 1994. Landscaping at' site compieted by
M�y 1 S, 1994.
We feel our propc�sed develapment wi1! be posit9ve addition to
Rosemaunt and act as strang magnet tor drawfn� people to yaur
Community, fram a radius of over nine mtles, I've retained Jack
Crtmm�ns as vur representattve to work out the detalls wlth you and
your Consultant�, he may be reached at either 338-0640 or 377-2597.
W� loak forward to hearing from you at your earilest convenfence.
S1�cereiy,
Robert Muller and Mtke Mu11er
Mu11er Family Theatres
�c: l��yor Edw�ra B. �Icr�enony
Administrat�on; �tephan�Jilk
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