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HomeMy WebLinkAbout6.a. Review of Mote Proposal for the Intersection of Trunk Highway 3 and County Road 42CITY OF ROSEMOUNT EXECUTIVE SUMMARY FOR ACTION PORT AUTHORITY COMMISSION MEETING DATE: July 21, 1992 AGENDA ITEM: Motel Proposal for N.W. AGENDA SECTION: Quadrant of T.H. 3 and C.R. 42 New Business PREPARED BY: AGENDA NO John Miller, Economic Development Coord. ITER# ATTACHMENTS: Proposal, Financial Statement, APPROVED BY; and 'Resume of Ray G. Anderson'JAML `w Over the last several months preliminary discussions have been held with Ray G. Anderson of Burnsville regarding Mr. Anderson's desire to build a motel at T.H. 3 and C.R. 42. Attached is a financial statement submitted by Mr. Anderson as well as some background information and correspondence outlining Anderson's proposal. As you will see, Mr.Anderson estimates the cost of developing the motel at $2,500,000. Of that total more than $2,000,000 would be in the form of a loan from the City. I have referred the submittal to Mike Miles, the Port Authority's attorney, and he will have a verbal report for you on July 21. In my opinion, the request of Mr. Anderson is more than the Authority is financially capable of funding at this time. If Mr. Anderson wishes to pursue the project, he should be directed to investigate methods of increasing his equity in the project. The Authority should direct its staff to seek other motel developers. RECOMMENDED ACTION: Motion to deny the request from Ray G. Anderson for participation of the Rosemount Port Authority in developing a motel at C.R. 42 and T.H. 3. PORT AUTHORITY ACTION: 13300 Acorn Circle Burnsville, Mn. 55337 July 14, 1992 Mr. Ed Dunn Mr. John Miller Port Authority City of Rosemount 2875 145th Street West P.O. Box 510 Rosemount, Minnesota 55068 Dear John and Ed, I am enclosing a personal resume and a recent financial statement. The statement will change somewhat in the near future with the planned sale of our lot in Apple Valley and our former home in Burnsville. Proceeds will be used to clean up short term debt and for the pre- liminary expenses on the Rosemount project. Estimated costs are set at $2,500,000.00 of which at least 20% would be cash from the investment group and the balance from aparticipation loan from the city. I would be the primary common stock holder with a cash contribution of some $50,000.00 and another$150,000.00 as a result of a developer's or general contractor's fee. I would be working with Krause/Anderson Construction who would be supplying a project engineer for an additional 3%. They would assist in the bidding process, schedule all work and generally insure that all phases of the project would be done in a good workmanlike manner. Another $300,000.00 would be raised from the sale of preferred stock. I have over 90 names of people who have indicated an interest in buying a minimum of $5,000.00. A firm commitment could not be asked until we had the results of the marketing study and the architect's preliminary drawings. They would be obligated for 5 years unless some serious personal problem would arise. At the end of this time the preferred would be recalled and at the owner's disgression either sold back at par value or converted share for share for new common. There would be a predeclared dividend of 12% and this would be cummulative if earnings were insufficient in any given year. I am considering naming one preferred shareowner as a director to get their full input and better protect their interests. At this point it appears that a choice can be made of who to bring in. The ideal stock partner would be well respected for their business ability, must be community minded and most of all have a high degree of character and personal integrity. Personally I would want a good mix of age, race, gender and background. Let me give you some local names to help verify our legitimacy. Dave Spartz Rosemount Tom Wahlen Apple Valley Steve Markwell Bloomington Tom Southbloom Eagan Ralph Judd Eagan Jim Canine Burnsville It is the consensus of most of us that we should own and operate our own restaurant to maintain the maximum profit potential and control. This would be built into the end of the mall for economy of construction, convenience of mall shoppers and optimum use of land. We wouldmodel our building, menu and service after one of the many successful;_ franchises available. My thinking is an operation similar to Shoney's in Hudson, Wi. except that it would be open 24 hours. Nearly all of the 7 -acres would be needed and we are working under the assumption that this land can be purchased for around $500,000.00 plus improvements. We are waiting for a firm purchase agreement between the city and Lund and partners and I feel that it is important that :we are kept informed as to the progress of these negotiations. We are then prepared to order the marketing survey from Marquette Partners Inc. Please contact me at any time if you have further questions. Yours truly, Ray G. Anderson I ®jff"er Personal ® ®®'A NORWEST CORPORATION Financial Statement ®/iff/iff NV'V®AU To _ - �,-�:vsw N.A. i If I have any questions regarding the completion of this F form, l should contact my representative at the bank. i �;-0077 I may apply for a credit extension, loan or other financial accommodation alone or together with someone else, ("co -applicant'). If I apply with a co -applicant and our combined assets and debts can meaningfully and fairly be presented together, the co -applicant and I may complete this required statement and any supporting schedules jointly. Otherwise, separate forms and schedules are required. APPLICANT Name Social Security number7G Address 1,3800 1�?e 4,C u C�1,P�h� i�s24) 6, /.1 /1 Telephone number C6 I z) — / Z- Date of birth Present employer iy17A50 P"�L'c' c� C✓ � PositionZktd, �ltdt�/�cli5a2 Address 33 '9 Nor tri � sr�iV Business phone Loan purpose 1-1�0c' AL CO -APPLICANT Name (20141%/E Social Security number s �Z Address /-3-90(,/ Cc�n/ 012�i.utr7L�.lc, w Telephone number ��/��/ — /��� Date of birth Present employer D4(" 044C f 202/O.9*C Position (9414�n� /1a:52 Address Ao e -J O heCr Business phone --a-.421t E Loan purpose r Darr, c' vaivatior • Round all amounts to the nearest $100 • Attach separate sheet if you need more space to complete detail schedule Assets (assets you own) Amount Liabilities (debts you owe) Amount Cash in this bank: Checking TD`:O , Loans payable to banks schedule 7 Savings As guarantor Loans payable to others schedule 7 - C.D.sinstallment Lawsuits contracts payable (schedule 7) j p ()(I IRA For taxes j Amounts due to dept. stores and others CdO : Cash in otner banks 1 I Credit cards MasterCard, Visa & others Due from friends. relatives and others (schedule 1) Income taxes payable Mortoaae and contracts for deed owned ischedule 2 OCL' " Other taxes payable Securities owned (schedule 3 l crr : e o ❑ Check here if "none" TOTAL INCOME Cash surrender value of life insurance (schedule 4) Qp Loans on life insurance schedule 4 o0 "- Homestead (schedule 5) s5 Otner real estate owned schedule 5 Ii(p C7L,C OC, I Mortgage on homestead (schedule 6) Automobiles hear, make, model 00,0 Cb or.liens on other real estate -Mortgage owned schedule 6 — lJ6t� Contracts for deed schedule 6 Personal property cys;15,� 00 Other liabilities detail Other assets detail N UIP :� OC TOTAL LIABILITIES Net worth total assets less total liabilities v'L TOTAL 1 1% : -700 00 TOTAL OO :OC) Annual income Applicant Co -applicant Contingent liabilities Amount Salary c7c As endorser Commissions As guarantor Dividends Lawsuits Interest For taxes Rentals CdO : Other detail Alimony, child support or maintenance (you need not show this unless you wish us to consider it). Other ❑ Check here if "none" TOTAL INCOME Q Qp TOTAL -CONTINGENT LIABILITIES Name of debtor SCHEDULE 2 MORTGj Name of debtor RELATIVES AND OTHERS Owed to Collateral How payable Maturity date Unpaid balance $ per $ per $ per TOTAL )NTRACTS FOR DEED OWNED Type of property 1st or 2nd lien Owed to How payable Unpaid balance $ per -7 $ Per $; per $ per TOTAL SCHEDULE 3 No. shares or Bond amount OWNED Description Qr1149MI11 F A F ICC WC110AWIC Present L -listed In whose name(s) registered Cost Market value U -unlisted I � roraL 1,:�� :Lc Face value Insured Insurance. company Beneficiary of policy Cash value Loans �G AJ N tZ60 00& co At OA's Cost 4),V" Amount of Address and type of property Title in name(s) of Income Year acquired TOTAL Insurance SCHEDULE 5 REAL FSTATF SCHEDULE 6 MORTGAGES OR LIENS ON REAL ESTATE Monthly Cost Present Amount of Address and type of property Title in name(s) of Income Year acquired Market value Insurance Homestead r / re $..:: 00 G c, N ¢�' $ Per ,W o ^xr14 yAgmp:OW Year,SP1, :4 ', CWAV $ 00 per Ix 10 7 :.300:00 i-t*cc5 div /IV �Oti Year /C% 000: Do ....... RAY � . c))V IU t u r� /,_,, � $...... %,000 ....:. coc) 0 --' �" tJ� Year..... Collateral or Unsecured How payable Maturity Date titiiltc '9C pms� $....:. fZ,aC30 $ per q S 4 2r — 1000 t Pt ru'^_ tU C 12 Year t 7 W -0 ce h (4 43 4 r• .................................... 0; Do -- 5 GL $ per r r : OQ ti Year $ per2 60 SCHEDULE 6 MORTGAGES OR LIENS ON REAL ESTATE To whom payable How payable Interest Rate Maturity Date Unpaid Balance Homestead ,r✓; /yffJ G $ per fy/pr ( / re 00 G c, N ¢�' $ Per ,W o ^xr14 yAgmp:OW :4 ', ' . J $ 00 per Ix 10 7 :.300:00 i-t*cc5 $ per mo 000: Do Is per nt d - coc) 0 SCHEDULE 7 LOANS PAYABLE TO BANKS & OTHERS AND INSTALLMENT CONTRACTS PAYABLE To whom payable Address Collateral or Unsecured How payable Maturity Date Unpaid Balance '9C pms� $ per q Or i S4 4a tU C 12 $ per ZZ r 0; Do -- 5 GL $ per r r : OQ ti $ per2 60 rc 5-40 00 $ per 60 0 1 $ per S rr 061: CV Calf t JS 4C $ perZ0O " :QO O.Z $ per go I ' Std : 92 • Have I ever gone through bankruptcy or had a judgment against me? Are any assets pledged or debts secured except as shown? Have F made a will? /N 2��5 Number of dependents (if none, check "None' Marital status (answer only if this financial statement is provided in connection with a request for secured credit or applicant is seeking a joint account with spouse.) APPLICANTCO-APPLICANT ❑ Yes nn L2J- No ❑ Yes a No ❑ Yes &�No ❑ Yes 1 No ❑ Yes ❑ No ❑ Yes ❑ No a ❑ None 0 ❑ None Q Married lMarried ❑ Separated ❑ Separated ❑ Unmarried ❑ Unmarried (Unmarried includes single, divorced, widowed) The foregoing statement, submitted for the purpose of obtaining credit, is true and correct in every detail and fairly shows my/our financial condition at the time indicated. 1/we will give you prompt written notice of any subsequent substantial change in such financial condition occurring before discharge of my/our obligations to you. 1/we understand that you will retain this personal financial statement whether or not you approve the credit in connection with which it is submitted. You are authorized to check my/our credit and employment history or any other information contained herein. THE UNDERSIGNED CERTIFY THAT THE INFORMATION CONTAINED ON THiS FORM HAS BEEN CAREFULLY REVIEWED AND THAT IT IS TRUE AND CORRECT iN ALL RESPECTS. Date y�siggnn ttuure 81 97A Date Co -applicant signature (if you are requesting the financial accommodation jointly) NOTICE TO WISCONSIN MARRIED APPLICANTS ONLY: No provision of any marital property agreement, unilateral statement under §766.59, Wis. Stats., or court decree under §766.70, Wis. Stats., adversely affects the interest of the creditor unless the creditor, prior to the time the credit is granted or an open-end credit plan is entered into, is furnished a copy of the agreement, statement or decree or has actual knowledge of the adverse provision. NC 14023 LND (5-91-70276) RAY ANDERSON 13300 Acorn Circle Burnsville, MN 55337 (612)431-1324 PROFILE: Experienced manager and sales professional with successful track record of building sales and earning client confidence. Confident entrepreneur with respect for importance of revenue generation and profit. Recognized for ability to establish positive and productive rapport with individuals of all levels and diversity. EXPERIENCE: UNITED PARCEL SERVICE, Burnsville, Minnesota 1984 -Present Supervisor, Southern Miwt "a Supervisor, Twin Cities Supervisor, Northern Minnesota Manage performance of 24 long distance drivers ensuring prompt, accurate transportation of packaged goods. ► Consistently ranked number one in productivity levels for state of Minnesota over three year period of time. ► Led safety awareness achieving no serious auto accidents or personal injury resulting in loss of time during position tenure. ► Led team performance and camaraderie improving labor relations, decreasing grievances, and promoting positive corporate image, mission, and goals. ► Monitored performance of employees by preparing and reviewing weekly productivity statistics comparing work completed to goals and standards. ► Successfully resolved occasional internal conflicts removing barriers to peak performance.' ► Streamlined work increasing speed, accuracy and quality of driver routing and execution. ► Personally rode with each driver a minimum of once per quarter to train, review and evaluate worker effectiveness and efficiency. ► Worked as a district scheduler applying the work measurement system to improve efficiency and reduce driver overtime. ► Recognized by labor as a tough, but fair and trustworthy negotiator. RAY ANDERSON SUNBEAM EQUIPMENT, Minneapolis, Minnesota Sales Representative PAGE TWO 1982-1984 Hired to prospect new accounts and penetrate existing accounts selling solid waste incinerators and related materials. Northwest territory included Minnesota, North Dakota, South Dakota, Montana, and Wyoming. DAKOTA MACK TRUCK DEALERSHIP, Rapid City, South Dakota 1982-1984 Sales Representative and Dr&er Assisted with dealership general management including new and used truck sales, accounting, and service maintenance management. Occasionally drove 'over the road" tractor/trailer delivering goods for dealership manager's other business during peak demand periods. ANDERSON TRUCKING, Rapid City, South Dakota 1979-1981 Owner/Operator Built trucking business through successful sales, marketing, and service hauling freight nationally. CENTURION BUILDERS SUPPLY, Alexandria, Minnesota 1963-1978 IKI�.�i. M Founded and built retail building materials supplier business. Expanded to second store. Sold both profitable stores and initiated new business entering wholesale operations achieving even higher volume sales and profit margins. Annual revenues $2 million. Employees: 22. ► Marketed retail lumberyards, manufacturers, and high volume builders successfully rY g Y building sales and maintaining client relationships leading to repeat sales. ► Established positive community relations through interest and involvement in community issues and improvements. ► When sales plummeted due to farm recession, reacted quickly and aggressively, taking actionnecessary avoiding severe financial hardship. EDUCATION B.A. Psychology, 1963, Concordia Moorhead, Moorhead, Minnesota Emergency Medical' Technician ('BMT") Class A License, 1985. Professional Development in: Management Skills, Communications, Diversity, Leadership, Drafting/Estimating, Computer operations, etc.