The URL can be used to link to this page

Home My WebLink About5.d. Update on Motel/Theater/Grocery Store/Business Park Projects CITY OF ROSEMOUNT EXECUTIVE SUb�tARY FOR ACTION PORT AUTHORITY MEETING DATE: JUNE 1, 1993 AGENDA ITFsNt: MOTEL/THEATER/GROCERY STORE - AGENDA SECTION: BUSINESS PARK UPDATE OLD BUSINESS PREPARED BY: JOHN MILLER, AGEND�� ECONOMIC DEVELOPMENT COORDINATOR ATTACHMENTS: MEMORANDUM AP OV B : Please see attached memorandum. RECOMMENDED ACTION: None. Informational item only. PORT AUTHORITY ACTION: MEMO TO: Chair Dunn Commissioners Anderson, Carroll, Edwards, McMenomy, Sinnwell, Wippermann FROM: John Miller, Economic Development Coordinator DATE: May 28, 1993 RE: Update on Motel/Theater/Grocery Store/Business Park Projects At the Port Authority's May 17 meeting I was directed to complete the purchase agreement on the business park. In addition, it was hoped by the commissioners, that additional steps could be completed with several other pending projects including the Carlson Ma11 project. What I've found is that all of these projects are interconnected in one or more ways. At this point in time it appears that when the Port Authority convenes on June 15, that will become the pivotal meeting. I think the following update will make that clear. Motel: As you will recall, the proposal for the motel or motel/restaurant are due June 15. I've heard that Ray Anderson will be presenting a proposal, probably with Comfort Inn. Emmett Erpelding will submit a Super 8 project and Americinn has first offered the site to John Thomas and I believe Omni Ventures is to be offered the site if Thomas does not wish to get involved. Theater: The Muller Family Theater Partnership has hired an economic development consultant to help it in selection of a site and in packaging a development proposal acceptable to the city. The consultant, Jack Crimmins, has met with me and with David Drourr of Springsted. In looking at the Mullers' time requirement for an August start, Droun and I have convinced Crimmins that the business park site is not feasible. The city cannot guarantee sewer to the site and the land is outside the 1979 TIF district. Presently, Crimmins is working with the Mullers on proposals for locating the theater on the Lund-Thorsen site or on the present Carlson Equipment property. Let's discuss the Lund-Thorsen site first. This seven acre piece of land could well become the site of the theater, motel, and restaurant. A quick calculation of parking requirements shows that about five acres would be needed for parking. With some imagination in design and shared parking agreements, the project most likely could be accomplished. Use of the site would certainly provide the focal point and the identity for Rosemount's business district. The second option for the theater is the present Carlson Equipment site. This would allow a slightly less dense development on the Lund-Thorsen site and provide a greater mass of development on the south side of C.R. 42. With the development of Carlson's center, the major commercial area in Rosemount would become the area from T.H. 3 to Chippendale. ' To accomplish this, the Carlson Equipment site would be placed in a 20 or 25 year redevelopment district and a finding of blight would be required. The Carlsons, of course, would need to agree to a very quick move to either land they presently own south of the corner location or to the business park -- see how it all starts to tie together -- and remember too that the Carlsons were already considering a move from , the corner of T.H. 3 and C.R. 42 within five years. I've visited with Ron Carlson about this option and he is interested. He promised a final answer in a few days. At this writing, Jack Crimmins, on behalf of the Mullers, is preparing a proposal to locate the theater at the Lund-Thorsen site. In addition, he will also prepare a proposal for the Carlson Equipment site if the Carlsons indicate they can make a quick move. I should have noted earlier that if the theater is located at the Carlson site, the theater building would be located north of the present Carlson building -- where the tractors are parked -- and the new Carlson building would be constructed concurrently with the theater. Just as the Mullers would need to start parking lot construction , the Carlsons would vacate their present building and it would be demolished. I hope to have one or two Muller Theater proposals by June 15. I also want to note that for the benefit of both Springsted and the Port Authority, ' David Droun and I have advised the people we are working with that they are to make proposals to us for our review and acceptance. Obviously, Springsted can't solicit projects from the private sector and I'm not about to start making wild promises to potential developers. We provide developers with information but the proposals are always their creations. Carlson Center: Presently, Tom Heiberg, the Carlsons development advisor, is preparing a proposal for development of the grocery store / strip center. He originally believed he could have the work done by June 1 but called me earlier this week and told me he could not meet that deadline. Written approval of the grocery store site is expected this week from Gateway Foods. The Carlsons are presently interviewing architects and the last meeting is scheduled for today. 2 With regard to the grocery situation, I have met the new owner of Tom's Super Value and he indicated to me that he will be placing a new awning on the building similar to the one at Shenanigans and is interested in working with the Port Authority in expanding the store. He mentioned an addition of 10,000 square feet. Business Park: Mike Miles has drafted the purchase agreement to include terms approved by the commissioners at their last meeting. I have visited extensively with Roy Abbott's broker, Keith Collins. Mr. Collins will carry the purchase agreement to Abbott for his approval. If Abbott approves the agreement, it will be brought back to the Port Authority. In visiting with several of you, I've been informed that the Port Authority would be very interested in reducing the risk in this project. In this regard, I proposed to Collins that if Abbott wasn't satisfied with the purchase price or wanted to ma.ximize his profit, he might wish to: 1. Sell only a portion of the land to the Port Authority. 2. Accept assessments for infrastructure to the remaining Phase 1 of the business park. 3. Use the money he received from the partial-area land sale to meet his assessment and tax costs for the first few yeaxs, and 4. Market the buildable lots himself. This would meet Port Authority ends, in that development of the business park would be started and it would limit Port Authority debt by a considerable amount. It is scary to look at almost $2,000,000 in land and infrastructure costs. Collins will meet with Abbott the week of May 31 and this issue should also come before the Port Authority at the June 15 meeting. Conclusion: As you can see, this is kind of a musical chairs game and the projects are very much inter-dependent on each other. It also appears that the evening of June 15 could be very busy. I certainly encourage you to ca11 me to discuss these projects. Any recommendations, warnings, of potential pitfalls, or other information would be welcomed. dw 3