HomeMy WebLinkAbout4.j. Adopt Resolution Extending Commercial Development Revenue Bonds, Series 1985 , r . • �
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Agenda i tem 3a
Agenda ltem 4j
TO: Mayor, City Council, Ci#y Administrator .
FROM: Dean Johnson, I}irector of Community Develapment
DATE: November 10, 1988
SUBJ: Shopping Centee Bond Extension
' In the summer of 1985, the City appr�vad the eancept af a shapping cent�r alang
CSAH42 in South Rose Park, The City Counci! also authorized the sal� of $4.8
milliQn tax exempt commercial deueiopment revenue bonds to support Che project.
19$S was the last year these bonds were ailowed under [ederal tax la�us. The
City has no liability, obligation or exposure to these types of bonds; rather, it
serves merely as the "vehicle" ta allow the tax exem�tion.
The bonds were originally structured so they could be "parked" and reissued or
extended twice at one year intervals. The bonds techniealiy expire December l,
1�8$; however, the underwriter and bond counsel fox this issuance have
determined they can be extended one rnore tirne and be uti}ized for the current
sho�ping center proposal. Attachecfi are capies of the present concept plan,
suhrnitted l�y Riehard Dreher and Associates, general partner and developer. Alsc�,
attached are copies of a resolutifln and indenture supplement, that would permit
the extension ot' the bands.
The Planning Commission has reviewed the concept plan and recommended the
developer proceed with the platting and PUD process. Staff fee�s mc�re
comfortable with the present pian than that appro��ed for Haven Enterpxises,
because the scope of the project has been cut back and the parkingltraffic
circulation seems more appropriate. While we are nc�t in any position to make
final or formal recommendativns an the project, we see no obstacles in making a
favorable recommendation as the pr�cess maves fc�rward.
Tirc decision to exlend lhc bc>ncis, h�wever, must l�e ntade at lhis time. The
t�c�nds can not be exlendcd without C�luncil .�pprc�val ancl musl t�c au[hori•r,c�l pri��r
to December i, 1988. There is a certain convenience in this situation; in that,
the City Cauncil is in a good position to make same reasonable demands on the
� aesthetic characteristics of the development in exchange for bond approval.
I have contacted Dreher and ASsociates and requested ihat they be in a posiiion
to describe the types of building materials they pro���se to use and descril�e the
landsca�ing/screening elements. They are weti aware that the Couneil may� not
chaose to extend the bonds without an understanding �f the type of buiiding we
may end up with.
A colored rendering is being }�repared at this time and witl be avai}able along
with a presentation by the architects at the meeting. Bond counsel wili afiso be
available for any questions the Council may have. Pr�vided the Council is
satisfied with the aesthetics, I would recommend approval of the resolution to
extend the b�nds. Extending the bands does n�t commit the City to any other
}�ressures for ap�roving the }�rc�,ject. The pr�►.jert will be reviewed and approved
and{or denicd regardles5 of any tzonds that could be utilized.
Shopping Center B d Extension
•,. ' November 10, 198� ,
Page Two
Finally, I have asked for a written description of the parties involved in the
project. I think it is im�ortant to kn�w who the developers, managers and
owners of the project wilt be. That information should be available for
distribution with the packets.
One remaining issue that may be a�rpro�riate for consideration regards
krai(/sidewalk access to the development. Whiie this topic is one that will he
discussed in the course of the approval process, I think reference to this issue at
the time of bond a�rproval could result in a better commitment for proper
pedestrian access to the development. We don't know whether the co�nty trail
will be constructed along the south side of CSAH42 �r n�t. i€ it isn't, a
- c�mrnitment frc�m the develo�er is reasonable. I helieve a tr��il along 151st Sircct
to Chippendale Avenue warrants aaa���o�ai consideration.
Dreher i •
and
Associates, Inc.
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CORfM�12C1AL REAL ESTATF OEVEI:t)PMENT
November 9, 198$
Mr. Dean Johnson
Director of Community Development
City of Rosemount
2875 145th Street West
Rosemount, MN 55068
Dear Mr. Johnsan:
I am writing in reference to Rosemount Csnter in Rosem�unt,
Minnesota.
Dreher and Assaeiates, Inc. is pleased to have become
involved in this ratail develogment project. We are
currently working on pro�ects in 10 suburban loeations. Our
experience with rapidly growing cities and community
convenienee retailin� has made us confident that the praposed
center wi11 be both a financial suecess and an asset to the
community.
Rosehaven Center will be a forty thousand square foot strip
style rstail cen�ter. We anticipate having 3 maj�r anchor
tenants (6,D40 to 10,000 S.F. ) as well as approximately 15
smaller tenants (9�U to 3,�00 S.F. ) . We expect most of the
shops to ba either eonvenience retail or service orisnted
businesses.
Leasing, of the centsr is going very well . We have been
involved with this p.roject for just a short time and have
made significant progress with several tenants. Several
leases have already been signed. In addition we have reached
agreement on terms with severai other tenants and are
negatiating lease Ianguage. We have secured commitments or
signed leases with the folTowing tenant categories:
Day Care Center 6,000 s. f.
. Video Store 2, 520 s. f.
Pizza I�estaurant 1 , 200 s. f. .
Family Hair 1 , 2Q0 s. f.
Lease negotiations are currently underway with the followin�'
additional prospeetive tenants=
Hardwarc� Store 10,0�0 s. f.
Auto Parts Store 6,000 s. f.
Suite 126, 5275 Edin�� Fndustrial Batilevar-d • Fdina. Mii�nesc�t� SS435 • bl2/�i35-�$44
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Drug Store 6,000 s. f .
Carpet Store 3,000 s. f.
Dxy Cleaner 1 , 200 s. f.
Chiropractor 1 , 200 s. f .
Dental Clinic 1, Z0� s. f.
The proposed rents at Rosemaunt are $12.00 per square foot
for small tenant space and somewhat less for larger tenants.
The leases are triple net leases with the costs of operating
the center being paid by the tenants.
- The center will be owned by the Rosemaunt Shopping Center
Group. This partnership has contracted tha services of
Dreher and Assaciates, Inc. for the development and leasing
of the eenter. Dreher and Associates will manage all aspeets
of the development praeess for the partnership ineluding
gc�vsrnmental approvais, financing, leasing, a�chitactural,
supervisian and coordination, and management of the property.
The partnership will also sign a contract with Haven
Enterprises, Inc. (Steve Ramsey) to act as the General
Gontractor on the projeat. Additional construetion
management services will be provided by Northland
Construction Management. The Architectural Coalition is
pro,jeet architect. Tha general partnership itseif wi11
inelude Carlson Farms (Clifford Carlson, �tonald Carlsa�n and
Richard Carlson} and Dreher Investments (Richard E. Dreher
Jr. and Jay Blanehard) .
The building itself will include floor to ceiling glass and
aluminum store fronts, a metal colored canopy, integraliy
colored decorative block, burnished block, and spectra-�'laze.
Careful attention will be paid to landscaping and site
lighting. A colored elevation wili be available fox the City
Couneil meeting on November 15, 1988.
We look forward to working with you in the future, if you
have any questions or comments please feel free to call.
in erely,
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Ric ard E. I3reher Jr.
Presidant
Enclosures
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DR�SHER AND ASSC)CIA't'ES, INC.
Suite 126, 5275 �dina industrial Blvd
Tsdina, Minnesota 554�35
Dreher and Associates, Ine. is a small shopping develapment
company located in Minneapolis, Minnesota. It is pr3.marily
involved in retail and multi-use develogment in Minnssota,
Iowa, Wisconsin and Illinois.
BACKGRt}I1ND QF PRINCIPALS
RICHAAD F. DRTHER JR.
PRESIDENT
Education: B.A. , University of Minnesota, Political Science.
M. A. , Univsrsity of Minnesota Schoai of Publie Affairs.
Government Experience: Local Gavernment - Assistant to the
Mayor of Dul.uth - 4 years. Principal Management Analyst,
Hennegin County - 2 1/2 years. Federal Govexnment - Special
Assistant to Secretary of Healtl�, Education and Welf are,
Washingtan, D.C. - 1 year.
Retail Experience: Director of Marketing, Pianning, Research
and Real Estate, Dayton' s D�partment Stores - ? years.
Stares developed:
St. Cloud, MN - 100,OQ0 s. f.
Siaux Falls, SD - 100,000 s. f.
Grand Forks, ND - 100,000 s. f
LaCrosse, WI - 100,000 s. f.
Surnsville, MN - 200,000 s.f.
St. Paul, MN - 383,004 s. f . remodel .
Development Experience: Dev�iopment consultant f or:
Green Bay, WI (expansian of Port Plaza)
Normal, IL (College Park Ma].l)
Minneapolis, MN (Calhoun Square)
Pro,jects Complet�d for Fees:
Barclay Square - Rochester, MN
Westwind Pl.aza - Minnetonka, MN
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Westgate Mall - Brainerd, MN
Northbridga - Albert Lea, MN
Pavilion Place - Roseville, MN.
Current Projects (Under Development) :
Baywood Shops - Shorew4od, MN
Countarysi�de Center - Burnsviile, MN
Gateway Center - Champlin, MN
EdgextQn Plaza - Vadnais Heights, MN
. Bunker Gake Shops - Andover, MI�
Eastview Genter - Oakdale, MN
Rosemount Center - Rosemount, MN
Frojeets Completed or Under Construction and Owned
River's Bend Plaza - Ramsey, MN
Algonquin Town Center - Algonquin, IL
Northlake Shc�ppes - Coon Rapids, MN
Southerass Plaza - Burnsville, MN
East Valley Plaza - Appls Valley, MN
JAY J. $LAN�CHARD
Assuciate
Education: B.A. , St. Cloud State University, Political
Science and Saciolo�y.
M.A, , Anticipated 1990, Hubert H, Humphrey
Institute, University of Minnesota.
Position: Director of Development
Kevin D. �'ossum
Asa+oeiate
Education: B.A. , University of Minnesota, Morris, Business
. Economies.
Position: Director of Leasing and Management
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Ia0I.27.H[.ANID a R[A^.TION MANAt,'P�INFfiTP, II+IC De�nis K. '1'�risler, P.E.
5275 Edi.na Industrial Baulevard. Edin;a, Mn 55435 President
(612) 831-1707
1987-1988 RAPYD OIL CHAIVGE Minneapolis, Mn
Director of Construetion. Assembled an entire staff of construction
project managers and support personnel to direct a national build-ou�
program of 100 plus new units annually at a cost exceeding $25 Million.
Created policies and procedures to develap corporate real estate. Man-
aged the development of the prototype building and subsequent construc-
tion documents. 1Vegotiated national accounts for building ma�erials,
equipment and signage,.
1979-1987 BURGER KING C�RPORATION Minnetonka, Mn
Reqional Mana er of Canstruction. Managed a sta�f of site develop-
men� engineers, drafters and support personnel to da,rect an annual
. deveZopment plan of 40-6a new units and re-models. Assisted fran-
chisees with thei.r real estate develoFxnent program. Met periodicaily
with corporate staff ta review and recom�nend moc�i:Eications to the
prototype building, materials and equipment. �
Sfte Develo�nt Enqineer. Managed the real estate dev�lopment pro-
cess for assigned projec�s from site feasibility through canstruction
completian, Worked cooperativeZy with reai estate representativ�s in
, the selec�ion of new market areas.
1978-1979 BRAUER AND ASSOCI,ATES, INC Eden Frairie, Mn
. Vice Pres_ ident o�' En ineerin,g. 5upervised the completion c�£ all ].and
dev�lopment projeets. Promcated new wca�rk wit�h clients and as�isted in
. � the dev�elopment o� market strategies fQr company growth.
1976-1978 DAYTO�i HUDS�t PROPERTIES Minneapolis, Mn
Projeet Manaqer. Managed the planning, design, estimating, scheduling
and constMaction phases of Target store deve].opment. N�gotiated con-
tracts with consultants, vendors and contractors.
1974-1976 I.D.S. MORTGAGE CORPORATION Minneapolis, Mn
, Construction Enqineer. Appraised construction documents submitted
with loan applications far develo�nt of residential, carranerciai
and industrial real estate. Inspected projects, disbursed funds
and directed the maintanencejrehabilitation of distressed properties.
LICEIVSES: Registered Frofessional EY�gineer
HONORS: '�Top Performer�� . Burger King Corpora�ian
"Top Development Team" B�irgez King Corpc�ration
Guest Speaker Burger King National Construction Seminar
EDUCATIOtV: B.S. Civil Engineering, South D�kota State University
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CITY OF ROSEMOUNT
RESOLUTION 1988 -
� A RESOLUTION APPROVING SUPPLEMENT NUMBER ONE,
AMENDING THE INDENTURE OF TRUST, DATED AS OF
DECEMBER 1 , 1985 , BETWEEN THE CITX OF
ROSEMOUNT AND NORWEST BANK MINNESOTA,
NATIONAL ASSOCIATION
WHEREAS, The City of Rosemount , Minnesota (the "Issuer" ) has
issued its $4,800,000 Commercial Development Revenue Bonds
.(Rosemount Shopping Center Project) , Series 1985 , dated
December 1 , 1985 (the "Bonds" ) ; and
WHEREAS, The Bonds were issued pursuant to an Indenture of
Trust , dated as o£ Deeember l , 1985 (the "Indenture")
between the Tssuer and Norwest Bank Minnesota, National
Association, as Trustee ( the "Trustee") ; and
WHEREAS, the Rosemount Shopping Center Partnership, a
Minnesota Limited Partnership (the "Company" ) , has requested
that the Trustee and the Issuer amend the Indenture by �he
execution of a Supplement Number One to the Indenture of
Trust dated as of December l , 1988 between the Issuer and
the Trustee ( "Supplement Number One" ) ;
NOW, THEREFORE, BE IT RESOLVED by the City CounciX of the
City of Rosemount as follows :
Section l . The City Council of the Issuer hereby authorizes
and directs the Mayor and City Clerk-Treasurer to execute ,
on behalf of and under the corporate seal of the Issuer,
Supplement Number One . Supplernent Number One shall be
substantially in the form on file with the Issuer on the
date hereof, and is hereby approved.
Section 2 . If for any reason the Mayor or the City Clerk-
Treasurer are unable to execute and deliver Supplement
Number One, any other member or members of the City Council
may execute and deliver such document with the same force
and effect as if such document was executed by the Mayor and
City C1erk-Treasurer .
Section 3 . No costs or expenses shall be borne by the City
in connection with the matters set forth in this resalution,
the preparation of any documents relating thereto, or any
1ega1 or financial consultants retained in eonnection
therewith. The Bonds and interest thereon shall never
constitute the debt or indebtedness of the Issuer within �he
meaning of any provisions or limitations af the Constitution
or statutes of the State of Minnesota and shall not give
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to a pecuniary liability of the Issuer or charge against its
general credit or taxing powers, but shall be secured and
payable by a pledge of revenues derived from the Company.
Nor shall the Bonds ever be cleemed to be an obligatian or
agreement of any elected official , officer, agent " or
employee of the Issuer in such person ' s individual capacity,
and none of such persons shall be subject to any persanal
liability in connection with the Bonds .
Section 4 . This resolution shall be in full force and
effect from and after its passage . _
ADQPTED this 15th day of November, 1988. '
Rollan Hoke , Mayor
ATTEST:
Stephan Ji1k, Administrator Clerk
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SUPPLEMENT NUMBER ONE
TO .THE
YNDENTORE OF TRUST
BETWEEN
THE CITY OF RdBEMOUNT, MINNESOTA,
AND �
NORWEST BANK MINNESOTA,
NATIONAL ASSOCIATION
AS TROSTEE
Dated as of December 1, 1988
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SUPPLEMENT NUMBER ONE
This Supplement Number One, dated as of December 1, 1988,
between The City of Rosemount, Minnesota, a body corporate and
politic and a political subdivision of the State of Minnesota
(the Issuer") and Norwest Bank Minnesota, National Association, a
national banking association, as trustee (the "Trustee") , - -
(hereinafter referred to as "Supplement Number One") amends the
Indenture of Trus�, dated as of December 1, 1985, between the
Issuer and the Trustee, (the Indenture of Trust, as amended by
Supplement Number One, is hereinafter referred to as the
"Indenturey) .
RECITALS '
WHEREAS, the Issuer issued $4, 800,0�0 principal face amount
of its Commercial Development Revenue Bonds (Rosemount Shopping
Center Project} , Series 1985 (the "Series 1985 Bonds�') , to
finance a shopping center project to be located in The City of
Rosemount, Minnesota, (the "Project") ; and
WHEREAS, the portion of the Pro�ect constructed with the
proceeds of the Series 1985 Bonds is to be owned by Rosemaunt
Shopping Center Partnership, a Minnesota Limited Partnership,
WHEREAS, the proceeds of the Series 1985 Bonds have been
held in escrow and invested since the issuance of the Series 1985
Bonds pending application of the proceeds to the financing of the
Project; and •
WHEREAS, in order to ensure that the Series 1985 Bonds
remain outstanding and available to finance the Project, certain
amendments must be made to the Indenture;
NOW THEREFORE, the parties hereto agree that the Indenture
shall be amended as follows: �
' Secti�n 1. Definitions. The definition of nMandatory
Tender Date, " set forth in Section 101 of the Indenture, is
hereby amended ta read as follows:
nMandatory Tender Date" shall mean, with respect to any
series of Bonds, unless the Conversion Date occurs prior thereto,
December 1, 1986, December 1, 1987 and December 1, 1988. A
Mandatory Tender Date shall also mean, with respect to any series
of Bonds, any date on which a Substitute Credit secures or is
required ta secure such series of Bonds.
Section 2 . Section 301(a) (2) of the Indenture. Section 301
(a) (2j of the Indenture is hereby amended to read as follows:
_2_
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(2) On June 1, 1989, if evidence of a Credit securing the
payment of principal of and interest on the Bonds on and
after June 1, 1989, is not delivered to the Trustee on or
before May 1, 1989; provided, however, that the Bonds shali
not be redeemed on June l, 1989, pursuant to this Section
301 (a) (2) , if the Trustee receives, on or before May 1,
1989, an opinion of nationally-recognized bond counsel to
the effect that a failure to redeem such series of Bonds on
June 1, 1989, will not adversely affect the exemption from
Federal income taxation of interest on such series of Bonds
(or any other series of Bonds issued pursuant to this
Indenture) . If such an opinion is delivered to the Trustee
on or b�fore May 1, 1989, then such series of Bonds shall
not be redeemed on June 1, 1989. Such series of Bonds shaIl
be redeemed on December 1, 1989, however, unless on or
before November 1, 1989, evidence of a Credit securing the
payment of principal of and interest on such series of Bonds
on and after December 1, 1989, is delivered to the Trustee.
Section 3. Terms and Conditions of the Indenture. All
terms and conditions of the Indenture, except to the extent
modified by this Supplement Number One to the Indenture, shall
continue in full force and effect.
Section 4. Counterparts. This Supplement Number One t�o the
Indenture may be executed in several counterparts, each of which
shall be an original and all of which together shall constitute
but one and the same instrument.
IN WITNESS WHEREOF, the Issuer and the Trustee have caused
this Supp�.ement Number One to the Indenture to be executed in
their respective corporate names and thei� respective corporate
seals to be hereunto affixed, all as of the date first above
written.
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CITY OF ROSEMOUNT, MINNESOTA
(SEAL) By
Mayor
By ,
C1erk-Treasurer
STATE OF MINN�SOTA)
)ss
COUNTY OF DAKOTA ) :
The for_e�;oinp, instrument -was �cknowledgeci
before me this day of , 1988, by Rollan
Iloke, Mayor, and Stephan Jilk , Clerk Administrator, of the
City af ltosemount , a Minnesota municipal corporation, �n
behalf of the corPoration ` ancl gursuant to the authority
�ranted l�y its City Council .
Notary Public