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
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NORWEST CORPORATION Financial Statement
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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
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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
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/ re
$..::
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$
Per ,W o ^xr14
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Year,SP1,
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Year.....
Collateral or
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How payable
Maturity
Date
titiiltc
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$....:. fZ,aC30
$
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Year t
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Year
$
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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 (
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$
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$ 00
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$
per mo
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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
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$
per ZZ
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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.