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HomeMy WebLinkAbout3.a. Minutes of August 3, 1993 Regular Meeting . � Ir?�USEMOUNT PORT AITTH(?RITY PROCEEDINGS � REGUL.AR MEETING AUGUST 3, 1993 Pursuant to due call and notice thereof a regular meeting of the Rosemount Port Authority was duly held on 'hiesday, August 3, 1993 at 5:30 p.m, in the Council Chambers at Rosemount City Hall, 2875 - 145th Street West. Chair Dunn called the meeting to order with Gommissioners Carroll, Anderson, Wippermann,McMenomy, Sinnwell, artd Edwards present. Staff present included Executive Director Jilk, Economic Development Coordinator Miller, and Port Authority Attorney Miles. MaTION by Commissioner Anderson to discuss the meeting time for the August 17, 1993, under the Executive Director's Report and accept the agenda as amended. Second by Canoll. Ayes: 7. Nays: None. MOTION by Edwazds to approve the consent agenda.. SECOND by Carmll. Ayes: 7. Nays: 0. Executive Director Stephan Jilk reviewed the staff recommendations deterniined from the criteria esta.blished in the proposals submitted on July 28, 1993. Two theater groups submitted proposals, the Muller Family Theaters, Inc. and GTT, Guetschoff Theaters, Inc. Staff and City consultants met with each group July 29, 1993 to clarify items in the proposals. Based on these discussions and the proposals submitted staff recommends the Muller Family Theaters, Inc. Mike Muller thanked staff for their consideration. Muller gave an overview of the plans for a ten screen theater, 2200 seats, 168 - 400 seats per screen, a crying room, hearing impaired equiprnent, wheelchair ' spaces, pop cup holders, the latest in stereo sound, and security cameras in each theater. Ticket prices would be $2.50 child, $4.50 adult, $2.50 matinee, $2,50 for all on Tuesday. Muller estimated that 4$0,000 to 680,000 people would use the theater annually. An estimated SD jobs would be available, mastly part tune students. Publie service announcements would be encouraged and special discount rat�es available for groups. Bob Muller reviewed the fmancial commitment of $1 million from their group and $2 million from City financing. The City would hold the mortgage on the building and 10 acres of land. Bonds would be used for funding. This allows the City some controls over the project. Port Authority Commissioners asked several questions on construction and time schedule. Muller planned on six months far construction. Dunn visited the East Bethel theater and noted it was well kept and managed. The Guetschoff Theaters, Inc. also gave an overview of their proposal. They own and operate 5 theaters, each theater is run by a family member. Architect Bob Vanney presented a concept 'drawing with examples of materials to be used. Tfie interior decor having an "oid time° flavor with rich floral design, velvet and chandeliers. The Hastings Thea.ter is an example of the decor. The exterior would have a marquee with the name of the city on it. Ticket prices would be $2.50 child, $4.50 adult, $2.50 mati.nee, $2.50 far all on Tuesday. Bob Guetschoff explained the reasoning behind the number of screens; their original concept was 8 sereens to expand to 14 screens within five years. It would also be for first run movies. The stereo saund is the best equiprnent available. Guetschoff's plan to purchase the land from the City, instail private water and sewer until city utilities are available, and obtain their own fmancing with two commitments already. No City funding would be required. Commissioner Sinnwell visited the Apple Valley Six Theater owned by Guetschoff Theaters, Inc. notang it was in need of maintenance on the interior. Mr. Guetschoff responded that their maintenance plan requires a 7 year facelift. The Apple Valley T1�eater is 5 years old now. Better materials havebeen found and that theater is very popular with rnuch use. . , ROSEMOUNT PORT AUTHORITY PROCEEDINGS REGULAR MEETING AUGUST 3, 1993 Commissioner Dunn noted that the total project for Guetschoff is $2,637,000 , Kraus Anderson would be the contractor. Letters of credit have been abtained far financing. About 25� will be funded by the owners with a ten year mortgage on the remaining. Brian and Cheryl Olson, 15320 Darjeeling Court, Rosemount, expressed concern that another bond for the City would risk funds that maybe used for education or children's programs. The public interest should be considered. Facecutive Director and City Administrator Jilk assured Olson that these bonds would not cause any competition for parks, fire halls, or the school district financing program. Mayor McMenomy noted that if the Muller Theater business failed, a worst case scenario, it could corne back to the taacpayers. The Guetschoif proposal failing would not cause any payment by ta.xpayers. The City's financial consultant from Springsted, Inc. replied that an additional.$2 million could have an overall effect on the Moody Bond Rating, but there would be a very small chance that it would. The feasibility of the theater project has a very high pmbability of succeeding as shown by the theater standards. Commissioner Carroll believed the Muller proposal allowed the City more protection and involvement. The City would actually be on the land mortgage. If it defaulted back to the City, the best use could be determined in the interest of the City. Also, it seems the Guetschoff's owning theaters in �Iastings and Apple Valley would be competing against themseives for patrons. Would Guetschoff s be able to unprove d have the best movies and facility in Rosemount with their other theater only six miles away? � Commissioner Anderson noted that sinee one praposer is willing to start up a theater business without City� funding and it would be at no risk to the City, a better situation. � _______.__._ __--- - ----__ _ ,- OTION by Commissioner Edwards to approve the Resdlution of the Rosemount Port Authority Accepting the Muller Family Theaters, Inc. proposal. Second by Carroll. Discussion followed. Executive Director Jilk read the entire Resolution. The motion was polled. Ayes: Wippermann, Dunn, McMenomy, Edwards, Sinnwell, CarrolL Nays: Anderson. MOTION by Edwards to recommend to the City Council to complete the Business Park Plans and specifications. Second by Sinnwell. Ayes: Dunn, Edwards, Sinnwell, Carroll, Anderson, Wippermanrt. Nays: None. Absent: McMenomy. • The August 17 work session for Port Authority will begin at 5:15 p.m. Commissioner Wippermann will no be able to be present. Be�ause of the need to complete regular business at the Port Authority meetings it was suggested that all regular Port Authority rneetings begin at 5;15 p.m. The Commissioners were in agreement. MOTION by Sinnwell to adjourn. SECOND by McMenomy. Ayes: 7. Nays: 0. Meeting adjourned at 7:25 p.m. Respectfully submitted, Linda Jentink Recording Secretary 2