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EDA 03/10/03-'- OFFICIAL FILE COPY -,-- CITY OF NEW HOPE EDA MEETING. City Hall, 4401 Xylon Avenue North Monday, March 10, 2003 President W. Peter Enck Commissioner Sharon Cassen Commissioner Don Collier Commissioner Mary Gwin-Lenth Commissioner Steve Sommer 2. 3. 4. o Call to Order Roll Call Approval of Regular Meeting Minutes of February 24, 2003 Discussion Regarding Updated Proposal and Continued Interest by Quest Real Estate, Inc./Plymouth Heights Pet Hospital on City-Owned Property at 9200 49th Avenue North (Improvement Project No. 597) Discussion Regarding Joint Development Proposal for City-Owned Property at 7500- 7528 42"d Avenue North, the former Electronic Industries Site (Improvement Project No. 665) Adjournment CITY OF NEW HOPE 4401 XYLON AVENUE NORTH NEW HOPE, MINNESOTA 55428 EDA Minutes Regular Meeting February 24, 2003 City Hall CALL TO ORDER ROLL CALL APPROVE MINUTES IMP. PROJECT 737 Item 4 EDA RESOLUTION 03-01 Item 4 ADJOURNMENT New Hope EDA Page 1 President Enck called the meeting of the Economic Development Authority to order at 8:44p.ra. Present: W. Peter Enck, President Sharon Cassen, Commissioner Don Collier, Commissioner Mary Gwin-Lenth, Commissioner Steve Sommer, Comm_i'ssioner Motion was made by Commissioner Collier, seconded by Commissioner Sommer, to approve the Regular Meeting Minutes of February 10, 2003. Voting in favor: Enck, Collier, Gwin-Lenth, Sommer. Voting Against: None; Absent: None; Abstained: Cassen. Motion carried. President Enck introduced for discussion Item 4, Resolution Finding Need to Acquire Title and Possession of Property at 7600 49~ Avenue North Prior to Commissioner's Award, Approving the Appraisal of Damages Resulting from the Taking and Ratifying and Authorizing All Steps Taken by Staff to Acquire the Property (Improvement Project No. 737). Mr. Steve Sondrall, City Attorney, stated adoption of the resolution by the EDA approves the $335,000 appraised value to ensure acquisition of the fee title to the property on or before May 31, 2003. This action is necessary to permit Navarre Corporation's building expansion project to be: completed during the 2003 construction season. Commissioner Cassen introduced the following resolution and moved its adoption "RESOLUTION FINDING NEED TO ACQUIRE TITLE AND POSSESSION OF PROPERTY AT 7600 49TM AVENUE NORTH PRIOR TO COMMISSIONER'S AWARD, APPROVING THE APPRAISAL OF DAMAGES RESULTING FROM THE TAKING AND RATIFYING AND AUTHORIZING ALL STEPS TAKEN BY STAFF TO ACQUIRE THE PROPERTY (IMPROVEMENT PROJECT NO. 737)". The motion for the adoption of the foregoing resolution was seconded by Commissioner Sommer, and upon vote being taken thereon, the following voted in favor thereof: Enck, Cassen, Gwin-Lenth, Sommer; and the following voted against the same: None; Abstained: Collier; Absent: None; whereupon the resolution was declared duly passed and adopted, signed by the president which was attested to by the executive director. Motion was made by Commissioner Collier, seconded by Commissioner Gwin- Lenth, to adjourn the meeting. All present voted in favor. Motion carried. The New Hope EDA adjourned at 8:46 p.m. Respectfully submitted, Valerie Leone City Clerk February24,2003 EDA ! REQUEST FOR ACTION Originating Department Approved for Agenda Agenda Section Community Development B ('-'--"~1¥:~~ 3-10-03 EDA Item No. By: Kirk McDonald 4 DISCUSSION REGARDING UPDATED PROPOSAL AND CONTINUED INTEREST BY QUEST REAL ESTATE, INC/PLYMOUTH HEIGHTS PET HOSPITAL ON CITY-OWNED PROPERTY AT 9200 49TM AVENUE (IMPROVEMENT PROJECT NO. 597) REQUESTED ACTION In follow up to the February 10, 2003, New Hope Economic Development Authority meeting, staff and consultants have met again with representatives of the Plymouth Heights Pet Hospital, per their request, and a more detailed proposal has been submitted. Staff requests that the EDA provide direction to staff as to how to respond to this updated proposal and to Plymouth Heights Pet Hospital's continued interest in the city-owned property at 9200 49t~ Avenue. Staff has also sent the other interested party a letter stating that the EDA had some interest in the office condominium proposal, but that party has not pursued the matter further as of this date. POLICY/PAST PRACTICE In the past, the City Council or Economic Development Authority has reviewed and considered proposals for development on city-owned sites on a case-by-case basis and authorized staff to negotiate on select proposals. BACKGROUND In June 1997, the City of New Hope purchased this vacant 2.8 acre industrial site because a portion of the property was identified in the New Hope Surface Water Management Plan as a future site for a water quality pond to help improve the water quality of the large wetland north of, and adjacent to, the site. The City acquired the property to have control over the future development of the site and has been interested in a 3otential joint-cooperative development where a development could occur in conjunction with the installation of a water quality pond. The 1997 appraisal on the property indicated a value of $282,000, but the appraisal was discounted due to the poor soils on site. The City purchased the property for the adjusted appraised value of $195,000 and the City Engineer has estimated that the City would need to utilize one acre of the site for ponding improvements, leaving approximately two acres available for development. Over the past several years, the City Council has discussed several potential developments for this site, but no development proposal has moved forward due in part to the poor soil conditions on the property. In 2000, a permit MOTION BY SECOND BY I rfa~planmng~improvement~Q 9200 49 Request for Action Page 2 3-10-03 application for the water quality pond excavation was approved by the Army Corps of Engineers and DNR, however, the permit has lapsed. It is the City Engineer's opinion that the permit could easily be renewed. It is staff's desire to move forward with some type of development on this property and to complete ponding excavation in conjunction with the development. The property is zoned I, Industrial and is located on the north side of 49"' Avenue approximately 600 feet east of Highway 169. Industrial zoned properties are located to the north, east and west, with a wetland to the southwest and R-1 single family homes to the southeast, across 49th Avenue. Two well-designed buildings are located on either side of this site, with a three-story brick office building located to the west and Englund Graphics located to the east. The property is located in Planning District No. 3 and the Comprehensive Plan indicates the primary goal within this district is the preservation and enhancement of its industrial land uses, and specifically suggests promoting industrial infill development of the remaining vacant parcels on Bass Lake Road and 49th Avenue. Pet hospitals and veterinary clinics are not currently listed as permitted or conditional uses in the I District, however, staff and consultants are currently working on a modification to the code to allow animal day cares in the I District and the Planning Consultant is agreeable that this use would also be appropriate for that Zoning District. At the February 10 EDA meeting, the EDA considered three proposals for this site and indicated an interest in two of the proposals for this site. The EDA indicated an interest in the Plymouth Heights Pet Hospital and Amcon office condominium proposals. Subsequent to that meeting, representatives from Plymouth heights Pet Hospital have met again with staff and submitted a more detailed proposal. While staff has communicated with Amcon, that proposal has not proceeded any further at this point. The most recent correspondence submitted by Quest Real Estate, Inc., on behalf of Plymouth Heights Pet Hospital, states that "This letter shall serve to express the continued interest of my client: Mr. Fleming, in purchasing the parcel of land at 9200 49~h Avenue North in New Hope for construction of a pet hospital. We were pleased to learn the EDA and City Council members of New Hope have indicated an interest in our initial development proposal and would like to pursue the matter in more detail. As such, I have enclosed the following information: 2. 3. 4. A background narrative on Plymouth Heights Pet Hospital A proposed site plan prepared by Paul Meyer Architects, Inc. A proposed image sketch also prepared by Paul Meyer Architects, Inc. An estimate from Dobszenski & Sons, Inc. for soil correction and site preparation work at the subject property including cover letter from Scott Builders, Inc. dated February 28, 2003 A memorandum I prepared summarizing the estimated costs contained in the information received from the contractors. As previously discussed, the property consists of approximately 124,086 square feet and Mr. Fleming is interested in purchasing about two-thirds of the front portion of the parcel or about 80,848 square feet. The City of New Hope would retain the balance of the property for the development of a drainage pond or water retention area. Based on the enclosed estimate we received from Dobszenski & Sons, Inc., the cost for correcting the existing soil conditions and preparing the site for development is significant. Although Mr. Fleming views this property as an ideal location for a pet hospital, the site has some development considerations and economic limitations. Consequently, in order to construct a first class facility, Mr. Fleming is seeking to acquire the property "as is" from the City of New Hope for $61,500 for the exclusive purpose of constructing a pet hospital. We anticipate the cost for soil correction and site grading work could be as high as $262,000. The proposed total price for acquiring and preparing a "buildable" site is $323,500 or $4 per square foot. Currently, Plymouth Heights Pet is serving over 6,000 active patients including more than 700 New Hope families and represents a valuable asset to the community. In addition, Mr. Fleming is prepared to move expeditiously on his development plans. Request for Action Page 3 3-10-03 We request that you present our proposal to the EDA and/or City Council for consideration at its next scheduled meeting on March 10. If the City is interested in pursuing Mr. Fleming's aforementioned proposal for purchasing and developing the subject property, it would seem reasonable for both parties to enter into an "Option Agreement" on the property for a maximum term of no more than ninety days. This would allow sufficient time for my client to review documents, prepare plans and obtain the necessary approvals before closing on the property. We could prepare the "Option Agreement" for consideration by the City at its scheduled March 24 meeting." Information submitted with the initial inquiry on February 10 indicated that "the property appears to be very compatible to my client's needs. The location of the subject property and its proximity to their existing facility would be very desirable for serving their established client base. In addition, the size of the site at 2.9 acres is nearly one acre larger than the amount of land required by Plymouth Heights Pet Hospital should the City of New Hope be interested in retaining part of the site for use as a drainage or water retention pond. The larger site size would provide an excellent natural buffer between the proposed clinic and the adjacent buildings and allow for the preservation of many of the existing trees. The proposed structure would consist of a single story, "state of the art" pet hospital and boarding facility totaling approximately 7,000 square feet in size. In an effort to address the significant problems with adverse soil conditions, the building would be constructed on a concrete pad and incorporate pilings, if required. The building would most likely be positioned on the west side of the property to provide space for parking in front and to the east side of the structure. The architectural design of the building could easily compliment the surrounding residential and office land uses. For example, the roof would be pitched with a brick exterior fac,.ade. Plymouth Heights Pet Hospital is a proven, financially strong business engaged in a rapidly exPanding service of caring for pets within the community. Obviously, the availability of the property and cost are critical concerns for my client and they are prepared to move forward very quickly on purchasing and developing the subject parcel of land should an agreement be researched." Plymouth Heights Pet Hospital has prepared the attached narrative describing the business operation in more detail, stating that the business has a staff of approximately 25 persons. ^ site plan, image sketch, and soil correction costs/construction estimates have also been submitted. Staff is supportive of this proposal, unless the EDA desires to obtain more details from the other developers before proceeding. The positive aspects of the current proposal are that Plymouth Heights desires to proceed in a timely manner, would construct a quality facility, would coordinate with the City on the balance of the property and has offered a price for the property in its current uncorrected condition. While the office condominium proposal may generate more tax revenues, the timeline or seriousness of the ,Pdro_posal is not known at this time and a similar development is being proposed for the city-owned site at 42 and Quebec later on this agenda. RECOMMENDATION City staff is supportive of pursuing the redevelopment of this site with this development proposal. Staff recommends that the EDA authorize staff to continue pursuing this matter further and meet with the City's financial consultant and the developer to discuss the financial implications of the project and a potential Letter of Intent. Staff would propose that the City and the developer split the cost of the financial analysis 50/50 on this site, due to the fact that it is city owned. Staff will then return to the EDA for further direction. ATTACHMENTS · 3/3 Correspondence from Quest · 1/19 Correspondence from Quest · Plymouth Heights Pet Hospital Narrative · Maps · Site/Sketch Plans · Correction/Construction Costs · 2/12 City Correspondence · Amc, on Correspondence and Site Plan Quest Suite 150 10700 Old Court6' Road 15 Plymouth..~L~ 55441 ~. ': Tel: 763-595-9511 Fax: 763-595-9512 March 3, 2003 Mr. Kirk McDonald Community Development Director City of New Hope 4401 Xylon Avenue North New Hope, MN 55428 RE: 9200 49t~ Avenue No. New Hope, MN PID# 07-118-21-23-0022 Dear Mr. McDonald: This letter shall serve to express the continued interest of my client; Mr. Fleming, in purchasing the parcel of land at 9200 49t~ Avenue North in New Hope for construction of a pet hospital. We were pleased to learn the Economic Development Agency and City Council Members of New Hope have indicated an interest in our initial development proposal and would like to pursue the matter in more detail. As such, I have enclosed the following information: . .1.) A background narrative on Plymouth Heights Pet Hospital 2.) A proposed Site Plan prepared by Paul Meyer Architects, Inc. 3.) A proposed Image Sketch also prepared by Paul Meyer Architects, Inc. 4.) A estimate from Dobszenski & Sons, Inc. for soil correction and site preparation work at the subject property including cover letter from Scott Builders, Inc. dated February 28, 2003 5.) A Memorandum I prepared summarizing the estimated costs contained in the information received from the contractors. As previously discussed, the property consists of approximately 124,086 square feet and Mr. Fleming is interested in purchasing about two-thirds of the front portion of the parcel or about 80,848 square feet. The City of New Hope would retain the balance of the property for the development of a drainage pond or water retention area. Mr. Kirk McDonald Page Two March 3, 2003 Based on the enclosed estimate we received from Dobszenski & Sons, Inc., the cost for correcting the existing soil conditions and preparing the site for development is significant. Although Mr. Fleming views this property as an ideal location for a pet hospital, the site has some development considerations and economic limitations. Consequently, in order to construct a first class facility, Mr. Fleming is seeking to acquire the property "as is" from thc City of New Hope for $61,500.00 for the exclusive purposeofconstructing a pet hospital. We anticipate the cost for soil correction and site grading work could be as high as $262,000.00. The proposed total price for acquiring and preparing a "buildable" site is $323,500.00 or $4.00 per square foot. Currently, Plymouth Heights Pet Hospital is serving over 6,000 active patients including more than 700 New Hope families and represents a valuable asset to the community. In addition, Mr. Fleming is prepared to move expeditiously on his development plans. We request that you present our proposal to the EcOnomic Development Agency and/or City Council for consideration at their next scheduled meeting on March 10, 2003. If the City is interested in pursuing Mr. Flemlug's aforementioned proposal for purchasing and developin_ g the subject property, it would seem reasonable for both parties to enter int° an ,,Opti°n Agreement" on the property for a maximum term of no more than ninety days. This would allow sufficient time for my client to review documents, prepare plans and obtain the necessary approvals before closing on the property. We could prepare the "Option Agreement" for consideration by the City at their scheduted March 24, 2003 meeting. We appreciate the opportunity to present our latest proposal to the City and are open to any suggestions, recommendations or alternatives that may assist us in completing this project. Please feel flee to call me if you should have any questions or require additional information. :5tephen ~. Ludovissie Director of Property Management Cc: Pi~'rce Fleming, Plymouth Heights Pet Hospital March, 3, 2003 PLYMOUTH HEIGHTS PET HOSPITAL NARRATIVE Plymouth Heights Pet Hospital was built by Dr. Elmer Hokkanen in 1969. At that time he was also the owner of Belt Une Pet Hospital which was just south of 36~ Avenue on Highway 100. He had been told the county was going to expand Highway 100 and his clinic would eventually be tom down. For that reason, he built a large pet hospital and boarding facility in an area surrounded mostly by farms so he would be prepared for Belt Line's demise and ready for future growth and expansion. For eleven years he owned and staffed both pet hospitals and, after it was determined BLPH would not be tom down, he finally decided to sell Plymouth Heights Pet Hospital. In Apdl of 1980 the practice, land. and building were sold to Drs. Tom Corson and Pierce Fleming. Ultimately, BLPH was indeed tom down in the summer of 2000. Drs. Corson and Fleming were classmates in veterinary school and both graduated with the class of 1978 from the University of Minnesota. In 1990, Dr. Corson sold his portion of the clinic to Dr. Fleming and moved to Bemidji. Dr. Fleming has been the sole owner of PHPH since that time. In 1995, PHPH applied for American Animal Hospital Association hospital certification. AAHA is a national veterinary organization which sets 'Standards of Excellence" that clinics must pass to become certified. In fact less than 4% of all Minnesota veterinary clinics can pass these standards. All of our staff members worked very hard in all areas of the practice in order to pass the required testing and inspection. We were rewarded for our hard work with certification by AAHA in the summer of 1996. The process took us to a.higher level of veterinary care and provided us with a strong sense of pride, accomplishment and teamwork. Our clinic and boarding kennel is very successful by veterinary standards without any marketing other than the yellow pages. We have over 6000 active patients (including over 700 New Hope families). In fact, wa have had a hard time limiting our growth, a problem which has led to seeking new facilities. We attribute our success to excellent medical and surgical skills combined with a clinic that emphasizes compassion and customer service instead of product sales. We have three full time and two part time doctors and total staff of close to 25. Dr. Pierce Fleming has been active in assisting and promoting the veterinary college, the Minnesota Veterinary Medical Association (MVMA) and veterinary medicine in general. He has served on the boards of the Animal Care Foundation, Affiliated Vet Emergency Service as well as his church board. He has also served on numerous committees for the UofM Veterinary Teaching Hospital including Dean's Advisory Council and the VTH Hospital Director Search committee. He is a Past President of the MVMA and served on their Executive Board for four years. He has been married for 30 years and lives in Golden Valley with his wife, Sue. They have two children, Sam and Alice, who are in college, and two cats and a dog who choose to live at home. ~-L'~ "1: r Suite 150 107OO Old County Road 1 $ Plymouth, Minnesota 55441 RB: Plymouth Heights Pet Hospital New Hope Site ~ons Cost Dear Steve, With thc information rcccivcd for the 49* Ave. N site, which included: Borings and sit~ plan wc generated fro' thc rcfcrcnocd client, we bare estlmate the cost to correct and balance the usable portion of the site at $'227,755. or, appro~~ $2.g2 per sfbased on use of~O,84g ff. It is our opinion _~_,,,_ based on current infoxmaflon that a 15% ~ ~ c~'ie~ on tho above amot~ to dca] with unforese~ issues that may arise[ * Tttis price inclu~ permits ~ ~ of~ · Corrcction ~ h also inoludcd under waterline 1~ * Price does not include importing ofsmq$ for balanci~. , '' * Price does not include winter condfllon$. Price docs not include bonds of nny type. (2%) Please call if you should have any questions. C: Heree l~nnning, Phi Meyer 18 Dlvision 'Street. ·,Suite A:' m:, Buffalo.' Mln nes~a:<6531.5 ·: y.63.684_.00110 --m: Fax: DOBOSZENSKI & SONS, INC. ii OF PAGES INCLUDING Tfl]S SIlEET: 2 SCOPI~ OF WOl~ ~ SCOFE OF WORK: L~fatee ndd: ~,,O0 iJa. g z, v~,~' hinter M(h ~ ~ s2,s?,47S.oo Pqel of'2 7::S',S,-- .... MEMORANDUM TO: FROM: DATE: RE: Pierce Fleming Plymouth Heights Pet Hospital Stephen A. Ludovissie Quest Real Estate, Inc. March 3, 2003 9200 49t~ Avenue No. New Hope, MN Attached is a copy of the proposal from Scott Builders, Inc. regarding the estimated cost to perform the required soil correction and site preparation work at the above referenced property. The following is a brief summary of the costs: 1.) Soil correction work for building and utilities including soil removal and replacement ................. $ 2.) Site grading .................................................. $ 3.) Silt fencing .................................................. $ 4.) Engineering/Testing .................................... ~ ~.$ 5.) Permits ....................................................... $ 6.) Contractors fee~..'.....' ..................................... $ 7.) Site supervision ............................................. $ Sub-total ..................................................... $ 8.) Contingency factor ~ 15% .......................................... .$ Sub-total ...................................................... $ 9.) Excavation/Sand for footings and concrete pad ........ 10.) Water and sewer installation .............................. $ 11 .) Vapor barrier ................................................ $ Total .......................................................... $ 135,275.00 63,300.00 2,109.00 - - 7,500.00 4,164.00 10,617.00 4,788.00 227,753.00 34,163.00 261,916.00 10,600.00 38,300.00 1,050.00 311,866.00 The aforementioned costs are based on 80,848 square feet. A contingency factor of 15% has been included to deal with unforeseen issues that may arise as detailed in Mr. Scott's letter dated February 28, 2003. The total estimated cost of$311,866.00 is $3.86 per square foot of which $261,916.00 or $3.24 per square foot is directly related to soil correction and site grading work. As I indicated in my previous Memorandum dated February 20, 2003, there is at least one undeveloped parcel of land within aborn two miles of the subject property that is available for under $4.00 per square foot and requires minimal site work. 'Quest Suite I~ ~Tanuary 19, 2003 Mr. K/rk McDonald D/rector o£ Commun/ty Development City of New Hope 4401 Xylon Avenue No. New Hope, MN 55428 RE: Letter of Interest 9200 49th Avenue No. New Hope, MN PID # 07-118-21.23.0022 Dear Mr. McDonald: 63-895-9511 ~595-9512 Th/s letter shall serve to express our interest in purchasing the vacant parcel ofland located at 9200 49e Avenue North in New Hope for construction ora pet hospital My client, the Plymouth Heights Pet Hospital, has been operating very successfully at 3401 North H/ghway 169/n Plymouth for over twenty years. The clin/c employs approximately 25 people including five doctors and/s we//known for the h/gh quality of meet/cai services it prov/des. However, due to sign/fieant business growth, the owners are seeking to expand the/r faci//ty but are constrained by the s/ze ofthe/r lot. /n order to accommodate the/r eurren! and future space requirements they are/nterested in acqu/ring approx/mately two acres of undeveloped land in the/mmediate area. As discussed in myprev/ous correspondence dated October 22, 2002 and during our meeting on November 25 and December 1 fi, 2002, the above referenced property appears to be very compatible to my client's need~. The location of the subject property and its prox/na/ry to their ex/st/ng fae///ty would be very desirable for serving theft' establish client base./n add/t/on, the size of the site at 2.9 acres is nearly one acre larger than the amount of/and requ/red by Plymouth Heights Pet Hospita/should the City of New Hope be interested/n Mr. Kirk McDona/d .lanuary 19, 2003 Page Two retaining part of the site for use as a drainage or water retention pond. The larger site size would provide an excellent natural buffer between the proposed clinic and the adjacent buildings and allow for the preservation of many of the existing trees. The proposed aructure would consist of a single story, "state of the art" pet hospital and boarding faeil/ty totaling approximately 7,000 square feet in size. In an effort to address the significant problems with adverse soil conditions, the building would be constructed on a concrete pad and incorporate pilings, fi'required. The building would most likely be positioned on the west side of the property to provide space for parking in fi'ont and to the east side of the s~ueture. The arehkectural design of the building could easily compliment the surrounding residential and office land uses. For example, the roof would be pitched with a brick exterior fagade. Plymouth Heights Pet Hospital is a proven, financially strong business engaged in a rapidly expanding service of caring for pets within the commuaity. Obviously, the availability of the property and cost are critical concerns for my client and they are prepared to move forward very quickly on purchasing and developing the subject parcel of land should an agreement be reached. We are seeking a formal response from the City of New Hope regarding the/r interest in enteriag into an agreement with Plymouth Heights Pet Hospital for the "Option To Purchase" the above referenced property within the next 90 to 120 days. This would allow us the opportunity to establish a mutually agreeable price and provide the City of New Hope with · specifications, comprehensive architectural plans and If you should have any questions, please call me. We look forward to the opportunity of presenting our proposal to the New Hope City Council and possibly working with the City on a project that will beneirlt many. CC: Pierce Heming; Plymouth Heights Pet Hospital CHURCH CHR;T ':, ' _ ._ , ....... SUBdECT PROPERTY: i ;- ..........: ';___ : ~ e~ ;, ~ .' ..... 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February 12, 2003 Mr. Kevin Maas AMCON 200 West Highway 13 Bumsville, MN 55337 Subject: Amcon Proposal, 9200 49~ Avenue North, New Hope Dear Mr. Maas: This letter is to inform you that the New Hope Economic Development Authority discussed your Letter of Interest to potentially develop the city-owned property at 9200 49~ Avenue at its February 10 meeting, along with several other proposals that were received. As you are aware, the EDA considered two office-type uses (including yours) and one construction company-type use. The EDA indicated it did not feel the construction-type use was appropriate for the property, but indicated it was interested in both of the office-type uses. The final determination as to which proposal it may select would be based on the best price offered for the property. Other factors that would be taken into consideration would include taxes generated from the 'new development, traffic flow, jobs created, etc. The EDA directed staff to continue coordinating with you on your proposal and is pleased that Amcon is interested in completing a project in New Hope. The City is in receipt of your preliminary site plan, and if you would like to pursue this matter further, please contact me at 763-531-5119, and I will be glad to coordinate a meeting with the appropriate city staff and consultants to discuss this matter in greater detail. S~'~.ereJy, .. /~ Kirk McDonald Director of Community Development Cc: Daniel J. Donahue, City Manager Steve Sondrall, City Attomey Vince Vander Top, Assistant City Engineer Roger Axel, Building Official Valede Leone, City Clerk CITY OF NEW HoP . 4401 Xylon Avenue North · New Hope, Minnesota 55428-4898 * www. ci.new-hope, mrcus City Hall: 763-531-5100 * Police (non-emergency): 763-531-5170 · Public Works: 763-592-6777 ,, TDD: 763-531-5109 City Hall Fax: 763-531-5136 * Police Fax: 763-531-5174 * Public Works Fax: 763-592-6776 February 12, 2003 Mr. Stephen Ludovissie Quest Real Estate 10700 Old County Road 15, Suite 150 Plymouth, MN 55441 Mr. Pierce Fleming Plymouth Heights Pet Hospital 3401 North Highway 169 Plymouth, MN 55441 Subject: Plymouth Heights Pet Hospital Proposal, 9200 49~ Avenue North, New Hope Dear Messrs. Ludovissie and Flemming: This letter is to inform you that the New Hope Economic DeVelopment Authority discussed your Letter of Interest to potentially develop the city-owned property at 9200 49~ Avenue at its February 10 meeting, along with several other proposals that were received. As you are aware, the EDA considered two office-type uses (including yours) and one construction-type use. The EDA indicated they did not feel the construction-type use was appropriat® for the property, but indicated it was interested in both of the office-type uses. Several of the EDA members indicated a preference for your proposal, but indicated the final determination may be based on the best pdce offered for the property. Other factors that would be taken into consideration would inclUde traffic flow, taxes generated by the development, jobs created, etc. The EDA directed staff to continue coordinating with you on your proposal and is very interested in having your business relocate to New Hope. Please contact me at 763-531-5119 in the near future so that we can identify some dates/times that you would be available to meet to discuss your development of the city-owned site. I will make arrangements to have the city engineer and planning consultant in attendance at that meeting to discuss your proposal in greater detail. Thank you for your Letter of Interest and we are looking forward to determining if a mutually acceptable agreement can be reached by both parties for you to develop the property. ~SincerelY, . Kirk McDonald Director of Community Development Cc.' Daniel J. Donahue, City Manager Steve Sondrall, City Attorney Vince Vander Top, Assistant City Engineer Roger Axel, Building Official Valerie Leone, City Clerk CrrY OF NEW HOPE 4401 Xylon Avenue North * New Hope, Minnesota 55428-4898 · www. ci.new-hope.mn.us City Hall: 763-531-5100 · Police (non-emergency): 763-531-5170 · Public Works: 763-592-6777 · TDD: 763-531-5109 City Hall Fax: 763-531-5136 · Police Fax: 763-531-5174 · Public Works Fax: 763-592-6776 January 20, 2003 Destgn Construction Construction Management ~. ~k McDo~d D~ector of Co~~ Dev~opment Ci~ of New Hope ~01 Xylon Av~ue No~ New Hope, ~eso~ 5~ Re: 9200 - 49m Avenue North Dear Mr. McDonald: I would like to thank you for your time last Wednesday. We hope that we can work with you and Ken to facilitate a successful development at the above site. The purpose of this letter is to confirm our interest in acquiring and developing the site. As discussed, we have interest in building either an office buflclin~, or a series of office condominiums compatible with the adjacent neighborhood. This week will begin preliminary feasibility analysis by reviewing the geotechnical report and discussing the stormwater requirements with Vince at Boonestro. We will then complete a site plan and preliminary pricing that must include either a pile system of foundations or substantial soil correction. Once this information is obtained, we can provide a written offer to acquire the property. Meanwhile, should other serious interest surface, please inform me. We anticipate some expenses to accumulate during this analysis in order to make a bona fide offer. You may telephone me at 952-200-4646 if you have any questions or concerns. Sincerely, Amcon Construction Company Kevin G. Maas Director of Sales and Marketing Kgrn Jim Wi~qs H:\~a] e~ta Iz\ ~W HOPE~ ]_20_03K~riddc Donald.d oc 200 W. Hwy. 13 · Bumsville, Minnesota 55337 Phone: 952-890-1217 · FAX: 952-890-0064 · - ~ M ' on~O~ald Kirk From: Sent: To: Subject: Kevin Maas [kmaas@amconconstruction.com] Wednesday, February 05, 2003 2:30 PM McDonald Kirk 49th Ave Property Kirk: We have a site plan completed for offices. calculating. I hope to make an offer soon. Thanks, Kevin G. Maas 952-808-5374 Direct Director of Sales & Marketing AMCON Construction Company 200 West Highway 13 Burnsville, MN 55337 cell: 952-200-4646 T-Mobile N~W fax: 952-890-0064 We are pricing & POND PROPOSED DEVELOPMENT PLAN 1"=40' C SITE DATA : SITE AREA - 122,422 $.F'. / 2.8 EIUILDING I~1 ~ 10,000 S.F. BUILDtNG 1~2.3 ~, 6000 S.F'. EA. = 12,000 TOTAL -- 22°000 S PARKING REO°D 8 22,000/300, 74 STALLS + 9 f 83 TOTAL PA~KtNC PROVIDED 8 85 CARS A1 I EDA REQUEST FOR ACTION Originating Department Approved for Agenda Agenda Section Community Development ~ 3-10-03 EDA Item No. By: Kirk McDonald, Director of CD & Ken Doresk¥, CD Specialist DISCUSSION REGARDING JOINT DEVELOPMENT PROPOSAL FOR CITY-OWNED PROPERTY AT 7500- 7528 42ND AVE. N., THE FORMER ELECTRONIC INDUSTRIES SITE (IMPROVEMENT PROJECT NO. 665) ACTION REQUESTED Staff is requesting EDA discussion and direction regarding the attached joint development proposal from Retail Site Development Services for the City-owned site at 7500-7528 42nd Avenue North. The development proposal is for two uses: a Culvers restaurant on the western portion of the site and three (3) office condominium buildings (seven (7) separate ownership units) on the eastern portion of the site. POLICY/PAST PRACTICE City goal #2 is to pursue the maintenance and redevelopment of commercial and residential properties within the City. The EDA has been addressing the commercial portion of this goal through the City's many development activities, including coordinating with potential developers for the sale and development of City- owned property. The EDA often directs staff to coordinate with potential developers and the City's financial consultant to investigate the feasibility of redevelopment. BACKGROUND On March 4, 2003, staff received the attached joint development proposal from Retail Site Development Services for the City-owned site at 7500-7528 42nd Avenue North. The development proposal is for two uses: a Culvers restaurant on the western portion of the site and three (3) office condominium buildings (seven (7) separate ownership units) on the eastern portion of the site. The City has been working for several years to initiate the environmental cleanup process and subsequent commercial redevelopment of this site. In conjunction with cleanup funding grant applications submitted during the spring of 2002, the Council approved a Request for Proposal (RFP) process for the site. As a result of the RFP, the City received a proposal for the office condominium component of the current proposal. Using the office condominium proposal in the cleanup grant applications, the Department of Trade and Economic Development (DTED) rated New Hope's application #1 in the State of Minnesota due to the economic development and job creation potential. DTED subsequently approved a fully funded grant in partnership with a Hennepin County approved grant. Culver's Restaurant/Retail Site Development Services came later in the ~rocess and staff suggested they provide a joint development proposal with the office condominium developer MOTION BY SECOND BY Request for Action Page 2 · 3-10-03 which they have done. The submitted description for Retail Site Development Services (RSDS) is as follows: "The proposal being presented here involves a Culver's Restaurant and an office condominium project with seven units in three buildings. RSDS will coordinate this project. A preliminary site plan will provide cross easements for parking and access which will allow for better utilization of the property. We are aware of the City of New Hope's plans to redevelop the 42nd Avenue and Winnetka area and we feel that the development proposed here is consistent with the City's goals for the area and in fact will held add credibility that this area is worthy of additional development. We see this project as one of the initial steps in the creation of a true community center for the City of New Hope." In addition, the proposal states: "RSDS will serve as the coordinator of the New Hope project with Dexter Marston acting as the contact person. Dexter Marston is a licensed real estate broker in the State of Minnesota. RSDS's fee will be $40,000 for the services related to the New Hope project. The services include: providing buyers for the site {JSC Development (Culvers) and Frey Development (Office Condominiums)) and overseeing the project through City approvals and closing. The City will be responsible for this fee and should include this cost with their other expenses when determining the value of the land. At this time I expect that the two prospective buyers will represent themselves in negotiations for the site. If either party chooses to have RSDS represent their interests during the negotiations, the City of New Hope will be informed of that change." Culver's Restaurant JCS Development, Inc. of Culver's restaurant states, "1 am proposing to develop a 120-seat Culver's Restaurant in New Hope, MN. It will be a quick service restaurant specializing in burgers and frozen custard. The development will be 52,000 sq. ft. There will be 60 employees - 5 salary employees ranging in salary from $25K - $40K depending on experience, 8-12 other full time employees and the remaining part-time employees paid hourly ranging from $6/hr to $12/hr. The hours of operation will be from 10:30 am - 10 pm seven days a week and we will provide 61 parking spaces although the requirement is less." Also JCS Development states, "The typical construction cost for a Culvers is $900,000 for the building, parking lot and the landscaping. In addition, the building costs for our equipment package is $380,000, the soft costs will be an additional $320,000 and the land cost needs to be $400,000 or less. Therefore, the total development cost will be right around $2,000,000." Office Condominiums Frey Development, Inc. of the office condominiums states, "Please consider this correspondence as notice of our interest in developing an office condominium project on the east half of the subject parcel. Our project is part of a mutual proposal with JCS Development, Inc. JCS Development will construct a 120-seat Culver's restaurant on the west half of the parcel." Our concept would involve the construction of seven office condominium units. These units would be individually owned. This concept is similar to a residential townhome project where the owner owns the land beneath their unit as well as their pro-rata share of the common area. A unit can range from 1,300 to 3,000 square feet. Each unit would have a private entrance, individual signage, custom designed interior plus the convenience of parking at your front door. Many small businesses owners desire the benefits of owning their own business space but financially they cannot afford to build or purchase a single user building. This type of development provides small business owners that opportunity. Typical users may include professional offices, medical offices, financial offices and manufacturing representatives. The number of employees that occupy each space will vary depending on the use. A 1,500 sq. ft. unit will typically provide enough space for a staff of 6 to 8. Individual signs at each entrance will identify each unit. A monument sign identifying the project will be installed along 42nd Ave. N. · Request for Action Page 3 3-10-03 Parking provided will be based on the City of New Hope's parking ordinance. Hours for a typical user are 8:00 to 5:00. The Dunsmore Company of Minnesota and Frey Development, Inc. will develop this project jointly. Tom Dunsmore has developed and sold over l O0-office condominium units in six locations in the Twin Cities metropolitan area in the past three years. I have been involved in the development, construction and marketing of commercial real estate for eighteen." Site Status Diversified Environmental, the City's environmental consultant has submitted the following information regarding status of the site. 1. Environmental Restrictive Covenant: The Minnesota Pollution Control Agency (MPCA) will require the City to prepare an environmental restrictive covenant (filed with the property deed) relating to future use and development of the Electronic Industries (El) property. The covenant will prevent future uses except for industrial or restricted commercial uses; the MPCA will allow the uses proposed by the current interested developers. The covenant will be somewhat general in nature (not incorporating the specifics of any proposed development), but list future triggering activities that will need review and approval of the RCRA group of the MPCA prior to construction. These activities will likely include excavation, dewatering, monitoring well sampling access, soil vapor sampling and/or collection, maintenance of pavement cover, etc.; monitoring and mitigation plans will need to be submitted to MPCA by the proposed developer when site plans are firm. Costs relating to these activities should be considered by the City during purchase agreement development. 2. Cleanup activities at the El site: Cleanup activities (subsurface permanganate injections into the shallow ground water) are currently expected to commence in March or April. Five rounds of injections, spaced at 30 day intervals, were funded by DTED and Hennepin County and are planned. Subsurface testing will also occur monthly to measure the effectiveness of the injections in reducing the contaminant levels to levels acceptable to the MPCA for site closure. While no one can guarantee their effectiveness, we are all optimistic about the likelihood of success. Should all five rounds of injection be warranted, and the results be acceptable to MPCA, application to MPCA for site closure would occur in early fall, 2003. We expect that MPCA would expedite official site closure and allow redevelopment to begin in fall, 2003. 3. Cleanup activities at Gill Brothers site: Deeper groundwater contamination (leaching from the El site) is present at the Gill Brothers site, and MPCA has directed El to install new ground water remediation equipment at this site. El has successfully negotiated an agreement with Gill Brothers for this work, and currently is nearing final approval from the City for building design and construction. The city's issuance of the building permit for this work will function as El's Notice to Proceed for cleanup work at both the Gill Brothers site and the El site. MPCA site closure for the El site is conditioned on the installation and operation of the new remediation system at the Gill Brothers site; City staff is working with El to expedite this work for that reason. Once the City has issued the building permit, cleanup work at this site will begin, with installation and operation expected to be completed in late spring or early summer, 2003. Additional Background On January 13 2003, the Council approved a cost-sharing agreement with the Responsible Party (RP), Electronic Industries to facilitate the RP cleanup match funding and outline cleanup responsibilities. Electronic Industries is in the process of obtaining a building permit for the new remediation system and scheduling remediation activities. On April 8, 2002, the City Council approved resolutions authorizing staff to apply for cleanup funding from DTED and Hennepin County for the City-owned site at 7516 42nd Avenue North, the former Electronic Industries site. On July 23, the Hennepin County Board approved funding for the project in the amount of $31,125. In June, DTED approved $217,860 for the project. On July 22, the Council passed a resolution Request for Action Page 4 .3-10-03 formally authorizing the DTED grant agreement. On August 12, the Council passed a resolution formally authorizing the Hennepin County grant agreement. As mentioned previously, the City initiated the grant process in order to expedite the cleanup of the site and market the property for commercial redevelopment. In the spring of 2000, the City applied for and received a Contamination Investigation and Remedial Action Plan (RAP) Development Grant from DTED to determine the extent of contamination, develop a RAP and prepare for the submission of the follow-up DTED cleanup grant. The RAP was completed during the fall of 2001. The City was funded by DTED in the amount of $217,860, Hennepin County in the amount of $31,125 and Electronic Industries is responsible for $82,995 (25% match). The total cleanup costs are estimated at $331,980. At the time of grant submission, the City had received a proposal for the office condominiums. Using this development proposal, DTED rated New Hope's application as #1 in the State due to the economic development and job creation potential. Culvers/RSDS came later in the process and staff suggested that they provide a joint development proposal with the office condominium developer which they have done. At the time the contamination was discovered in 1984, the MPCA identified Electronic Industries as the responsible party. With this designation, Electronic Industries became legally responsible for the investigation and cleanup of the contaminants. By the early 1990s, the MPCA and Electronic Industries developed a Remedial Action Plan (RAP) that identified the stages and timeline for the site cleanup. This RAP called for the site to be gradually cleaned over a span of 20-30 years. Now that the additional site investigation is complete and the extent of actual contamination is known, the initial 20-30 year cleanup plan was determined inadequate as it would take many more years to complete in its present state. On February 11, 2002, the Council authorized staff to obtain a property appraisal update for 7516 42nd Avenue North, the former Electronic Industries site for the cleanup grant proposals. Also, the Council authorized staff to obtain an appraisal update of all three accumulated sites, post-cleanup (7500, 7516 and 7528) to be used for discussions with developers regarding the potential sale and redevelopment of the property. The accumulated site appraisal was completed on April 22, 2002 and lists the remediated value at $730,000. Also on February 11, in order to continue activities toward the cleanup and redevelopment of this site, the Council approved an updated Request for Proposals (RFP) for the site and authorized staff to distribute the RFP. The Council approved a similar effort in February 2000. At that time, staff distributed the proposal information to thirty-eight (38) potential developers. The second time, a specific effort was made to target Brownfield developers as RFP recipients. Staff sent the updated RFP to one hundred and eighty-five (185) developers, many with significant Brownfield redevelopment experience. In addition, staff sent the RFP to the original list developed in 2000, for a total of two hundred and twenty-three (223) recipients. The attached development proposal was received as a result of the RFP effort approved in the spring of 2002. Staff attempted to contact the Hennepin County Assessor to obtain a preliminary estimate of taxes for this proposal. At the time of this RFA, Hennepin County had not responded to staff's request. Staff is unable to provide an accurate estimate of City taxes due to the many factors involved including: TIF district, State of MN commercial tax share, fiscal disparities, levy limits, building/land valuation and ownership of offices. The Sunshine Factory currently has an agreement in place with the City for parking on the site. That agreement can be terminated at any time with a sixty (60) day notice. Currently, staff does not believe that the cleanup activities will interfere with parking on the site. When redevelopment activities near, staff will request a meeting with the Sunshine Factory to discuss future parking and to terminate the agreement. Staff has notified the Sunshine Factory that cleanup grants were funded for the site and that at some point in the near future parking on the site would no longer be permissible. City staff expects cleanup activities to begin this spring. The site cleanup should be completed by fall 2003. Redevelopment activities could begin shortly thereafter. · Request for Action Page 5 3-10-03 Finally, the property is zoned CB, Community Business· The site is properly zoned for both components of this proposed development. FUNDING Fees generated by the City's financial consultant for review of this proposal will be the developer's responsibility. As stated previously, RSDS's fee will be $40,000 for the services related to the New Hope project. The services include: providing buyers for the site (JSC Development (Culvers) and Frey Development (Office Condominiums)) and overseeing the project through City approvals and closing. The City will be responsible for this fee and should include this cost with their other expenses when determining the value of the land. The DTED Contamination Cleanup Grant can pay up to 75% of the cost of cleaning up the contamination. Electronic Industries has agreed to provide the 25% match. The total estimated cost to implement the RAP is $324,218. Clay investigation costs incurred by Electronic Industries have been included in the overall project cost at the request of Electronic Industries in the amount of $7,762, increasing the total cost to $331,980. Electronic Industries is responsible for providing $82,995 in matching funds. DTED has approved $217,860 in cleanup funding. Additional funding in the amount of $31,125 has been approved by Hennepin County. The City is not responsible for contributing funds for site cleanup. RECOMMENDATION City staff is supportive of pursuing the redevelopment of this site with this development proposal, but has some concern about the fee being requested. Staff recommends that the EDA authorize staff to pursue this matter further and meet with the City's financial consultant and the developer to discuss the financial implications of the project. Staff would propose that the City and the developer split the cost of the financial analysis 50/50 on this site, due to the fact that it is City owned. Staff will then return to the EDA for further direction. ATTACHMENTS Location Map · Development Proposal · Diversified Environmental Memorandum ~1 ~ ~TetO! ~1 ~i ........ i 43oo --~ ¢.4~ED AVE N 4224 4501 · ~ i 4424 -- 45TH : AVE N i 4$RD AVE N ! ; .: ~ ; I ....."'-"~ ~ -: . ,' ~ ~ ,,,-. ......... i i ~ i il 4215 -~ t t .......) ~. ...... j 72~ ~ 45RD A~ N -..~-; ~ ....... ~ ........~ ~ * , ~ ~ · ~ : , , I ~ : I: ~ ~ ~ ~ ~ ~ : ~ " .... ~ ;'~ ?~- ' ---- '~ .... ~'~ ~ ~~..~_~ .......................... ~__. : ~ 4124 3HOOL JS 4124 4100 -- 3943 - 3981 OLY i 'IVITY ~ · ; :,react 7.321:, i7315~40SS' ' 4o~.~,! ....... ~.. , ~..__~ .... ~ ~ ..... ~= ..... ~ .... ~ ~] , , , , ~ ~ , :' ~: ~ .... '~ ~ ..... ~' .... ~ ~ ....... ~ ~ ~1 ~,.,~ .... ~---- ~ ~ · : .... iw ~ --',~ ~ : .... ~2--~ .... ~'. ~7~ F.~3.T~T~ .... ~'-; r ........... ~ *~ ~ ~. . ~ t .~. ( , . . ! ~. 3917 i ' --~.~ ~. ' ' ~: _~ 3041 j 3909 .-" DEVELOPMENT PROPOSAL 7500-7528 42~ AVENUE March 4, 2003 Retail Site Development Services March 4, 2003 Mr. Kirk McDonald Director of Community Developmem City of New Hope 4401 Xylon New Hope, MN 55428 RE: 7500-7528 42"a Avenue Development Proposal Dear Kirk: Comprehensive and Integrated Development Services 5775 Wayzata Boulevard Suite 700 Minneapolis, MN 55416 First I want to express my appreciation to you and your staff for their cooperation. My involvement with this project goes back to August of 2002, and everyone at City Hall has gone out of their way to be helpful. The proposal being presented here involves a Culver's Restaurant and an office condominium project with seven units in three buildings. Retail Site Development Services will coordinate this project. A preliminary site plan has been included in this packet. The site plan will provide cross easements for parking and access which will allow for better utilization of the property. The two developers are: Culver's Restaurant: JCS Development, Inc. John Siebert, President PO Box 636 Anoka, MN 55303 763-421-2335 Office Condominiums: Frey Development, Inc. Bernie Frey, Principal 4801 ~ Nicollet Avenue South Minneapolis, MN 55409 612-827-4201 We are aware of the City of New Hope's plans to redevelop the 42"a Avenue and Winnetka area and we feel that the development proposed here is consistent with the city's goals for the area and in fact will help add credibility that this area is worthy of additional development. We see this project as one of initial steps in the creation of a true community center for the City of New Hope. 952-525-2220 Fax: 763-377-9002 E-mail: RSDSUS~aol.com www. RetailSiteDevelopmentServices.com This packet is intended to both share our vision for this property and provide you with a better understanding of who we are. You will find information on Retail Site Development Services, JCS Development and Frey Development. We are looking forward to meeting with you and the City Council on March 10, 2003. Bernie Frey Enclosures DEXTER J. MARSTON 5775 Wayzata Blvd. Suite 700, Minneapolis, MN 55416 Office (952) 525-2220 · Cellular (612) 419-3499 Retail Site Development Services (RSDS) RSDS's Role RSDS will serve as the coordinator of the New Hope project with Dexter Marston acting as the contact person. Dexter Marston is a licensed real estate broker in the State of Minnesota. Background ' - ..... - .~ In 1989, Dexter Marston established a real estate company called Retail Site Selectors (RSS). RSS was created to meet the real estate needs of small and midsize retailers that don't have a real estate staffor have short-term staffing needs. RSS built its business by seeking out clients who had these special needs. In January of 2002, Retail Site Selectors became Retail Site Development Services to better reflect the services provided by the company. By creating relationships with other consultants, RSDS is able to provide project management services for the hospitality and restaurant industry. Projects this past year include a hotel/water park/events center in East Peorin, Illinois; a hotel/water park project in Iowa City, Iowa; site selection services for Cuiver's franchisees (locally and nationally) and finally creating Culver's restaurant development opporttmities for investors. Prior to 2002, Dexter worked with Leeann Chin, Inc. and its expansion into the Seattle and Denver markets as well as the Rainforest Caf~ and their development for the Northeast United States. A partial client list includes: General Mills (New Ventures-Bringers), Burger Time, Valu Plus, Creative Kidstuffand Toys R Us/Babies R Us. From 1987 to 1988, Dexter worked with the Rapid Oil Company (Ashland Oil) to open new markets in Ohio and Pennsylvania. From 1983 to 1987, he worked for McDonald's restaurants, locating the highest-volume store in the Region at the Minneapolis/St. Paul International Airport. In 1985, as real estate manager at the San Diego Regional Office, he was responsible for managing the acquisition of new sites and a real estate portfolio that included 226 properties. Fee RSDS's fee will be $40,000 for the services related to the New Hope project. The services include: providing buyers for the site ( JCS Development and Frey Development) and overseeing the project through city approvals and closing. The City will be responsible for this fee and should include this cost with their other expenses when determining the value of the land. At this time I expect the two prospective buyers will represent themselves in negotiations for the site. If either party chooses to have RSDS represent their interests during the negotiations, the City of New Hope will be informed of that change. il 42ND.AVENUi~ NORTH October 28, 2002 City of New Hope To Whom It May Concern: 1. Proposed Project: A. I am proposing to develop a 120-seat Culver's Restaurant in New Hope, MN. B.1 Quick Se~icc Restaurant spoc~ in burgers and froze~ custard. B,2 S2,000 square feet B.~ 60 employees- S salary employees ranging in salary from $25K-$40K depending on experience, 8-12 other full time employees and the remaining part-tim~ employees paid hourly ranging hum SC/hr m $12/hr. ~ B.4 Hours of operation: 10'_30am- 10/an Seven days a week. B.S Traffic~arking needs: Will p~ovide 61 parking spaces even thc~gh requirement is less. B.6 Minimal ~ B.7 See Attached 2. Firm Or~?i~ion: SCS Development has been establish~ as a developer for $+ years. 3. Professional OrEm?i~on: see attached profile A. Culvers l~nmts: Plymouth, MN; Forest Lake, MN Americl~n Hoteb: Ankeny, IA; Austin, MN; Bolingbrook, IL; Cedar Falls, IA; B. Projecls similar in size and use: Culvers of Plymout~ MN and Culvers of Forest Lake, MN. C. BrownfieM si~ developments: Forest Lake, MN Long Lake, MN References A. J'tmGoeke 515-964-1587 B. Troy Boehnnn-Community National Bank 319-291=2000 C. Lawrence Waldron-ttHK Constrncfion 952-401-1670 D. GeoffBennedict- Vanguard Con-,m'ucfion 651-248-1510 E. Jon Kennedy- Americlnn International 952-294-5000 FO Box 636 Anoka, MN 55303 Over night eddre~ 1394't Vinewocd Ln Dayton, MN 55327 Ph: (75'3) 421~335 Fx: (763) 421-0549 Scop~ and Cost of Services A. Additional work tasks Enviornme~al Phase 1 - $3,000 Environmental Phase 2 - Gcotechnical Composition Testing- $2,500 Surv~ - $4,000 B. Estimate cost of development 8. This information is provided in the following profile on SCS Development, Inc. Sincerely, John F. Seiben President IFS/jlk Subj: New Hope Date: 3/4/2003 12:31:24 AM Central Standard Time From: joh njcsdev@spea keasy._net To: RS. DSUS@aol.com Sent from the Intemet (Detail_.s.) Dexter, The following should provide you with what you are looking for Culver's has been very successful in their development philosophy of having the manager of the restaurant share in the ownership of the operations. They also have a strong conviction that the manager of the restaurant needs to be involved not only in the operations of their restaurant but also an active perticipant in th® community. These two philosophies have controlled the growth of Culver's in an effort to keep them successful. Culver's requires that if a manager of a restaurant desires to open a second restaurant, they must demonstrate their abilities to manage their current store and have a minimum of one year in that currant store. Part of this demonstration is how well the store is received by the local community. In their efforts to prove their abilities and acceptance Culver's has found that their managers have become more active participants in commun~ activities. The typical construction cost for a Culvers is $900,000 (nine hundred thousand dollars) for the building, parking lot and the landscaping. In addition, the building costs our equipment package costs $380,000 (three hundred eighty thousand dollars), the solt costs will be an additional $320,000 (three hundred twenty thousand dollars) and the land costs need to be $400,000 (four hundred thousand dollars) or less. Therefore the total development cost will be dght around $2,000,000 (two million dollars). Dexter, I will be traveling again tomorrow. 612-810-2434. Thanks, John If you have any questions, please give me a call on my cell phone Tuesday, March 04, 2003 America Online: RSDSUS JCS Development, Inc. P.O. BOX 636 ANOKA, MN 55303 (763) 421-2335 Fax (763) 421-,0549 ,ICS DEVELOPMENT, INC. PO Box 636 Anoka, MN 55303 Phone: 763-421-2335 Fax: 763-421-0549 The following sets forth general information about the development company: Presideu,t John F. Seibert is President of JCS Development, Inc. JCS Development, Inc. develops lodging properties and restaurants for investor groups as well as individual ownership groups. John's twenty-five years of development background in the hospitality industry as a developer, contractor, and site analyst provide him with a strong and focused ability in selecting and developing hospitality properties. John's site analysis experience began in 1977 with Perkin's Restaurant and Bakery where he was a Site Analyst and also the Chief Pilot for the company. He was responsible for site development and instrumental in the architeclural and construction design of the Perkin's projects. In 1980, John was employ~l by Omni Ventu~, Ltd. (Northcott Company and Ameri¢]nn International, LLC.) as Vice President of Real Estate/Cunstm~on and Chief Pilot. He was able to continu~ his wozk with resmmants and progressed into thc lodging area where he did site selextion, preparation of market analysis, land negotiations and purchases, review of financing options, architectural and general contractor selection and supervision, governmental presentations, motel prototype development, material sel~clion, ami planning and review~g of construction bid analysis for all coxporate development. At Americlnn International, LLC, John was the consultant to all franchisees in providing similar services to those under his responsibilities as the corporate developer. During this time John was responsible for and assisted in developing moro than 75 hotels and motels. Subsequent to leaving the position as Vice President at AmericInn International, LLC, John started his own ~y JCS Development, Inc. in the fall of 1997. John's strong focus in the hospitality business has positioned his company as one of the primary developers in the Americlnn Lodging system. John was selected as Franchise Owner of the Year in 2001 by AmericInn International, LLC out of more than 175 franchises. This honor is given to the franchise that exemplifies the standards of the Franchise systm~ and has been the most inslmmm~ in the development and promotion ofthz franchise system. ~ily he has developed and has ownership in seven Americhm Lodge & Suites that are open, two that are under construction and one that is under contract. This pas~ year,lohn signed an agreement with Wingate Inns IntenmtionaL Inc. to develop six Wingate Inn & Suites with a reservation for four additional properties for sites yet to be determined. In addition to the properties that he has ownership in, 3olin has also assisted in the development of numerous other lodging and r~auran! facilities for other franchisees since his departure from Americlnn International, LLC. Attached is an outline schedule for file above referenced lodgiag properties. In addition to the development of the lodging facilities, .Iohn also is developing Culvers restaurants and has ~er, ently opened the lust one in Minnesoia and has one under construction and two additional properties und~ development. JCS Development has ownership in these properties and is responsible for setting up the parmershi~ along with the management of the restaurants. These standards and philosophies are reflected in the developmeal eompsay's mi~ioa statement, which is: JCS Development is committed to enhoncing *he lives of' our clients while developing investment projects that will provide them with a mtximum onnu~i return along with pFoviding ~n equity g~in in theiF rul estnte pFopeFties. SCS Development, Inc. also provides professional hospitality contract manag~mt services through a complete array of packaged programs. Special attention is paid to customer service in our unique guest and employee relations training. Our marketing approach utilizes current tech- knowledge through the use of the Intemet as well as using other innovative marketing and We believe in the philosophy that you need to market the property, seek out and ask for business; not in the philosophy lhat ~uild it and they will come". We also are concerned with how the boiWm line is managed. It is im.r~rtant to maxlmi7e lile retllm, however, not at the cost of the guest. It is important to maintain an excellent image in ~he eyes of your custom~r;, ~herefore, we not only pay close attention to how om' customers are cared for, but also make sure the facili~ is maintained with the same high standards. These standanis and philosophies are reflected in the mangemem eompany's missioa ststemeat, which is: -/ To create a Home-away-from-Home Sound lodging experience, by exceeding guest expectations in a quite comfortable atmosphere. The owners and management ar~ committed to the team concept and will pFovide the necessary tools to assist all of the staff, the opportunity to work Jn a safe harmonious environment. Thus, we will be able to provide the gr~ amount of guest satisfaction and maximized annual returns. Partner Carol J. Sm~rt has joined John as a palmer in the development company. She is respons~le for the decorating and ordering of the furniture, fixtures and equipment. Along with ordering the FF&E she also manages tho budgets and instali~tioo of the FF&E. Carol also assists in setting up the management of the properties, which enc,~ mpasses the hiring and training of new managers as well as organizing the property and preparing it for the opening. Her 15 years of administrative support in genera] office management including sales and marketing, purchasing, personnel manag~ customer service, and acco~ and bookkeeping while in the corporate world has provided her with a solid understanding of business operations and organization. In 1983, Carol was manager of Edina Executive Services, a secretarial service, where she developed standards for operating procedures and developed advertising ~ and related brochures for marketing pur/x)ses, enabling the service to generate a profit for the first time since its inception. She also In 1984, Norstan Communications offered her a position as Corporate Admini.qtrator and Executive Assistant to the President and Senior Vice President of Sales and Marketin~ She was insmunental in ~eorlpmizing many office ~ocedures, which led to a more cost-effective environmelR. She also assisted in the development of marketing programs and related materials. Prior to joining $ohn in JCS Development, Inc., Carol was an insurance agent (property/casualty and employees. Director of Marketing / Office Manager Sennifer Knott joined JCS Devclopmen~ Inc. in October of 2000 as the office manager. In addition to the marketh~ department she is also in charge of managing the office. Prior to joining SCS Development, Inc., Jennifer was employed by Total Marketing Group. Prior to her position at Total Marketing CJroup she worked for the Pioneer newspaper in Bemidji. SenniCer's degree in -/ lViarketing from St. Cloud State University, adds a dim~sion to our organization that provides thc necessary support for our various on site property managers. Jennifer's responsibilities include overseeing the properties marketing pi-ograms, which include thc developing of marketing plans, resource guides and i~'onnation packages. Regional Lodgiag Property Maasger Klisti Miner o 'rlgiaally joined our o ~r~ni~tlon in February of 1999 as the Oene~ Manager of the ~llleri¢lnn Lodge & Suites in Atlsti~ l~innesotlL Prior to grad~ntlng fi'om the University of Nonhero Iowa, ~ wc~ied in the Franchise Services Deparlme~ aI Amcriclnn International in Guest Relations. She also was the assistant manager of the Cmmdy Center Americlnn Motel & Suites. As the Regional Manager she has the zesponsib'flity of supporting the on site property managers for the Americlnn's in Austin and Coon Rapids, Minnesota, Cedar Falls, Davenport and Ankeny, Iowa and Lincoln, Nebraska. Regional Res~urant Manqer Eric Knott joined ICS Development, Inc. in January of 2001 as the partner and general .manager of the company's first Culver' s rcstamant in Plymouth, Minnesota. Subsequently, Eric will now be overseeing the operation.q of the first restaurant along with the two additional msmmants that are under development. During Eric's short tenure with the company he has hired, trained and opened one restaurant and is in the process of putting together another team for ihe companies second restaurant. Eric's team approach and ability to understand the scope of the development process have made him a val-shle asset to ~ICS Developmems reslaumnt division I=rey Developmenf, Inc. Office Condominiums 4801 ~ NiooiletAve. South. Minneapolis, MN 55409 Frey Development, Inc. o~;-~;;-4~, ~;-~?,m~ ~x February 24, 2003 Mr. Dexter Marston Retail Site Development Services 5775 Wayzata Boulevard, Suite 700 Minneapolis, MN. 55416 Re: 7500 42"d Avenue North Dear Mr. Marston: Please consider this correspondence as notice of our interest in developing an office condominium project on the east half of the above-mentioned parcel. Our project is part of a mutual proposal with JCS Development, Inc. JCS Development, Inc. will develop a 120-seat Culvers Restaurant on the west half on the parcel. Our concept would involve the consixuction of seven office condominium units. These units would be individually owned. This concept is similar to a residential townhome project where the owner owns the land beneath their unit as well as their pro-mm share of the common area. A unit size can range from 1,300 to 3,000 square feet. Each unit would have a private entrance, individual signage, custom designed interior plus the convenience of parking at your front door. Many small business owners desire the benefits of owning their business space but financially they cannot afford to build or purchase a single userbuilding. This type of developmem provides small business owners that opportunity. Typical users may include professional offices, medical offices, financial offices and manufacturing representatives. The number of employees that occupy each space will vary depending on the use. A 1,500 s.f. unit will typically provide enough space for a staffof6 to 8. Individual signs at each entrance will identify each unit. A monument sign identifying the project will be installed along 42nd Avenue North. Parking provided will be based on the City of New Hope's parking ordinances. Hours for a typical user are 8:00 to 5:00. The Dunsmore Company of Minnesota and Frey Development, Inc will develop this project jointly. Tom Dunsmore has developed and sold over 100-office condominium units in six locations in the Twin Cities metropolitan area in the past three years. I have been involved in the development, construction and marketing of commercial real estate for eighteen. Please see attaches resumes. Attached please fred a conceptual site plan as well as plans and elevations of similar office condominium projects in the Twin Cities metropolitan area. We are excited aborn this site's potential and are confident in its success. Thanks for your time. Sincerely Bernie Frey 4801% Nicollet Ave. South Minneapolis, MN 55409 Phone: 612-827-4201 Fax: 612-827-4331 BERNIE R. FREY 1992 - 2002 FREY DEVELOPMENT, INC. - ]VIINNEA~LIS, MINNESOTA REAL ESTATE DEVELOPMENT CONSULTANT Provided site selection, project design, consu'uction management, brokerage and mnrketing services for the real estnte development & construction community. · Minnesota Valley Townoffices, Burnsville, Minnesota Negotiated site acquisition, secured ali municipal approval for platting and development of nine unit office condo park · Lakeville Town Off/ice Park, Lakeville, Minnesota Negotiated site acquisition, secured all municipal approval for platting and developmem of 17 unit office condo park · Trades Park New Market Township, Minnesota Negotiated site acquisition, secured all municipal approval for platting and development of 35 acre industrial park · Gold's Gym, Coralville, Iowa Negotiated site acquisition, secured all city approvals, managed design and construction of 17,000 s.f. health club · Midway Comainer, Inc., St. Paul, Minnesota 10,000 s.f. design/build project · ,~ir King Fastening Systems, Circle Pines, Minnesota 7,500 s.f. design/build project · Sleep Inn Hotel, Eagan, Minnesota Consm~ction Manager for 104 unit four story motel · Bisco Clean Air, Eagan, Minnesota · Identified potential building sites and negotiated site acquisition. · Grafix Shoppe, Eagan, Minnesota Identified potential building sites, negotiated site acquisition, secured all city approvals, arranged sale of excess land to City of Eagan for future park, managed design and construction of 10,000 s.f. facility. · Professional Plastias, Eagan, Minnesota Identified potential building sites and negotiated site acquisition. · Quality Contour, Lakeville, Minnesota Identified potential building sites, negotiated site acquisition, secured all city approvals, managed design and construction of 12,000 s.f. facility. · Register Resale, Eagan, Minnesota Identified potential building sites and negotiated site acquisition. · Rehabilicare, New Brighton, Minnesota Acted as client's relocation consultant. Services provided include developing clients relocation program, negotiating site acquisition and design/build contract. CALAIS CORPORATION - St. Paul, Minnesota 1991 - 1992 VICE PRESIDENT Responsible for the management of all conslruction and brokerage services of Calais Corporation. · Chargo Printing, Inc., St. Paul, Minnesota Managed design and construction of 24,000 s.f. printing facility. 1985-1991 DALLAS DEVELOPMENT CORP. - Eden Prairie, Minnesota DEVELOPMENT MANAGER · Silverbell Plaza, Eagan, Minnesota Secured all city approvals, managed design and construction, and managed leasing activities for 101,000 s.f. multi-tenant office/warehouse facility · Silver Plaza II. Eagan, Minnesota Secured all city approvals (Planned Unit D~velopment), and · managed design and bidding for 31,000 s.f. retail center, 108,000 s.f. office/warehouse, and 20,000 s.f. private school. · Westwood Business Center I, II, II1, & IV, Eden Prairie, Minn. Secured all city approvals, managed design and construction, and managed leasing activities for four building 225,000 s.f. office/warehouse park. · Southfork Village dpartments, Lakeville, Minnesota . Secured all city approvals including bond issue for public utilities and streets, and managed design of 201 unit apartment complex. · Southfork Center, Lakeville, Minnesota Secured ali city approvals including bond issue for public utilities and streets, managed design and consuuction, and managed leasing activities for three building 146,000 s.f. retail complex. · Mn-Tx Business Campus, Eden Prairie, Minnesota. Secured all city approvals, manage design and construction, and managed leasing activities for seven building 310,000 s.f. office warehouse park. · Crystal Court Od~ce Building, Crystal, Minnesota. Managed design and consuuction, and managed leasing activities for I 1,000 s.f. office building. 1973 - 1975 MADISON AREA TECHNICAL COLLEGE Associate degree in Architectural Technology. 1969- 1971 UNIVERSrrY OF WISCONSIN - PLATrEVILLE Majored in construction and project management. Licensed Real Estate Broker for the State of Minnesota 5806 BLACKSHIRE PATH. · INVER GROVE HEIGHTS, MINNESOTA 55076 PHONE 651-775-4282- FAX 651-389-1292 · E-MAIL torn.dunsmore(~suite-networks.com THOMAS J. DUNSMORE SUMMARY OF EXPERIENCE Sixteen years in the commercial real estate field, including developer of commercial office space, build-to-suit and tenant representation services. · Founding partner of commercial development firm that built and sold 102 separate town office units totaling 234,000 square feet of commercial office space in the Twin Cities Meu'opolitan Area. · Corporate Real Estate Consultant - Solely responsible for acquisition, disposition and analysis of all sites in the portfolio of Coram, Inc., an IV therapy health care fwrn which held 110 sites in all 50 states. Services included negotiating build-to-suits in 12 major cities, renegotiation of leases or sale of existing facilities at other sites over two years. Negotiated three build-to-suits for other office/light industrial clients in the Chicago area. Founding partner of commercial real estate/tenant representation f'mn that operated in the Minneapolis-Chicago-Milwaukee markets for eight years. PROFESSIONAL EXPERIENCE 2~0-2~2 DaVern-H, Inc. St. Paul, MN l/ice President Co-founder and partner of commercial development and building f'mn that developed concept, built and sold 102 individual town office units in five office park developments, a total of 234,000 square feet of office space. Gross sales of $24 million. Concept, Approvals, Marketing Sales, Production · Developed and implemented business plan and strategy to develop and bring to market town office concept. · Analyzed market and identified sites for five office park developments. · Coordinated concept plan development with engineers and architects and obtained city approvai for town office park developments. · Performed ongoing liaison duties with city planning and building inspection departments from concept through completion of construction at all sites. · Developed and implemented sales and marketing strategy. · Solely responsible for sale of 100 town office units during 2001-2002. · Assisted with overseeing construction/fulfilling production deadlines at nil sites. · Assisted in ongoing cost control measures for nil sites, including negotiating construction contracts, hiring general contractor, seeking bids from sub-contractors and modifying design and construction methods. 1999- 2002 The Dunsmore Company of Minnesota Minneapolis, MN Commercial Real Estate Consultant Developed fee-based services in conjunction with town office developments to increase the marketability of the town office units, both to owner-occupants and to investor-buyers. · Developed "Citi-Suites" concept and web page (www.citisuites.com) in which owners of commercial office space in the town office developments can list office suite space, availability, features, and contact information. · Started company that installs fiber optic connectivity and state of the art phone system in each town office development, providing occupants a full array of services. · Provided assistance to investor-buyers in securing tenants for their office space and hiring property management company. 199% 1999 The Dunsmore Company of illinois Commercial Real Estate Consultant Provided commercial brokerage, build-to-suit, and tenant clients. Clients & Projects · Chicago, IL representation services to corporate Coram, Inc. - Responsible for acquisition, disposition and analysis of ali sites in client's portfolio - 110 sites in all 50 states. Services included negotiating build-to-suits in 12 major cities, renegotiation of leases or sale of existing facilities at other sites. Philips Consumer Electronics - build-to-suit in the Chicago area. U.S. Air - build-to-suit in the Chicago area. Other tenant representation and build-to-suit projects. 1989 - 1997 Waish Dunsmore Company Chicago, IL Vice President Co-founder and partner of commercial real estate and tenant representation finn that operated in the Minneapolis-Chicago-Milwaukee markets. Solely responsible for startup and operation of Chicago office. · Responsible for day-to-day operations of Chicago office. · Averaged 300 transactions per year - represented 70% of total business of f'mn. · Maintained staffof 13 agents, including hiring, training and day-to-day supervision. PROFESSIONAL LICENSURE Commercial Real Estate Broker's License EDUCATION 1986 University of St. Thomas Bachelor of/ins in Finance St. Paul, MN MINNESOTA VALLEY townoffices 9/17/02 · Custom design your own interior space · Private entrance · Individual signage · Finished main and walkout level · Mezzanine level on center units IUnits 2,5,8J · Park at your front door · Convenient access to 35W ,--...- -~ ~' ~ ~,'~ ~ ' · Additior ~ ~ ~ ~..L ._. .~j~- ~ ;' ~ ,~ . Shower --. ..~ %,? ~. . Kitchen, ~ ~:~: ~ '" .Cabinets -- ~L~~'~''' ~.- ~t -- ,_.. J... ~ '~ t :~' Bernie Frey I ~~ .~ ..~_,~. t 95~-~2 ---=~,~~ ~- ~- ~';:~ ,_i;. exf. 208 ~. ~~. -'~ . ,_~. · Additional restroom · Kitchen or wet bar 952-626-9300 Tom Dunsmore 651-775-4282 Fax 952-646-9292 Minnesota Valley Townoffices · Portland Avenue - near Cliff Road & Hwy 13 * Bumsville, MN Office Walkout wi Office Walkout I Single Space Garage Units General Interior insurance respa~b~l~y of owt~r Trees l inndscn~r~ l sod S~ew~s/curb pnrk~ k~ Dmin-Uled f~Uo'l Sprink~ fire protection Mechanical F'.~i~u~l ½ bath - main level Finished ½ bath - tower level 92~ efficient ~ (.~as forced air) Air coxfltioni~ 1 2 6 7 8 11990 W/O .2816 11988 W/O 3756 11986 'W/O 28 i 6 11.9821' :,iW'/O.-28i6 11980 W/O 3756 '- 9 ..... 11970 !garage ~ 11978'.' ':'w/o/; ;'2816 1i974' ~ iWJO 2816 11972 w/o 3756 W/O' 2816 ..........200 oak i., ira, base, 6-panet ~ 6 vanity Laminate vanity top Bath mim:x' ~ accessories ~ foyer, bath floor, ~t walls ~ main floor and lowe¢ level $20/yard allowance Nine fool: c~/w~li ceilings - main level El!Iht-faro drywall ceilin~ - ~ level W~Us - 2 coats flat latex - Zoned heatinaJair c:onclitioni~ c:~ntroLs - Second furnace/aw ~ I~---~ams - Ack~k~l restroom - Sho~er Kitohen/wet bar $352,000 $470,000 $352,000 $352,000 $470,000 ' $352,000 $352,000 $470,000 $352,000 ' $2o,ooo Umjrec~ Ui:~raded EAGLE POINT townoffices M O · Custom design your own interior space · Private entrance · Individual signage · Park at your front door · Convenient access to 194 · Finished lower level · Fireplace · Additional restroom · Shower · Kitchen or wet bar Eagle Point · Eagle Point Blvd. · Lake Elmo, MN Eagle Point, LLC. Tom Dunsmore 651-775-4282 Fax 952-646-9292 To Eagle Point Blvd General Standard Features I,~e-feot drywall ~,.~,i~s - ~ level. WaUs- 2 u.~b Iiat late~ -Sec~ ftm'e~e/air cmdtt'klner -Six.er Office Walkout Office (Slab on Grade) 1 8687 W/O 2688 $346,000 2 8685 W/O 2688 $346,000 3 8681 W/O 2688 $346,000 4 8679 W/O 2688 $336,000 5 8677 W/O 2688 $346,000 6 8673 W/O 2912 $364,000 7 8671 W/O 2912 $364,000 8 8669 W/O 2912 $364,000 9 8665 W/O 2464 $328,000 10 8663 W/O 2688 $319,000 11 8661 W/O 2464 $328,000 12 8657 W/O 2464 $328,000 13 8655 W/O 2688 $327,000 14 8653 W/O 2464 $328,000 15 8649 W/O 2464 $328,000 16 8647 W/O 2688 $327,000 17 8645 W/O 2464 $328,000 9/17/02 Doresk¥ Ken From: Sent: To: Subject: Doug Bergstrom [djb@highstream.net] Tuesday, March 04, 2003 7:42 PM Doresky Ken El site status update Ken, As requested during our recent meeting with the developers interested in the El site, I have prepared a brief summary of environmental issues associated with redevelopment. While the issues are not trivial, neither are they thought to present significant roadblocks to the redevelopment. 1. Environmental Restrictive Covenant: The MPCA will require the City to prepare an environmental restrictive covenant (filed with the property deed) relating to future use and development of the El property. The covenant will prevent future uses except for industrial or restricted commercial uses; the MPCA will allow the uses proposed by the current interested developers. The covenant will be somewhat general in nature (not incorporating the specifics of any proposed development), but list future triggering activities that will need review and approval of the RCRA group of the MPCA prior to construction. These activities will likely include excavation, dewatering, monitoring well sampling access, soil vapor sampling and/or collection, maintenance of pavement cover, etc.; monitoring and mitigation plans will need to be submitted to MPCA by the proposed developer when site plans are firm. Costs relating to these activities should be considered by the City during purchase agreement development. 2. Cleanup activities at the El site: Cleanup activities (subsurface permanganate injections into the shallow ground water) are currently expected to commence in March or April. Five rounds of injections, spaced at 30 day intervals, were funded by DTED and Hennepin County and are planned. Subsurface testing will also occur monthly to measure the effectiveness of the injections in reducing the contaminant levels to levels acceptable to the MPCA for site closure. While no one can guarantee their effectiveness, we are all optimistic about the likelihood of success. Should all five rounds of injection be warranted, and the results be acceptable to MPCA, application to MPCA for site closure would occur in early fall, 2003. We expect that MPCA would expedite official site closure and allow redevelopment to begin in fall, 2003. 3. Cleanup activities at Gill Brothers site: Deeper groundwater contamination (leaching from the El site) is present at the Gill Brothers site, and MPCA has directed El to install new ground water remediation equipment at this site. El has successfully negotiated an agreement with Gill Brothers for this work, and currently is nearing final approval from the City for building design and construction. The city's issuance of the building permit for this work will function as El's Notice to Proceed for cleanup work at both the Gill Brothers site and the El site. MPCA site closure for the El site is conditioned on the installation and operation of the new remediation system at the Gill Brothers site; City staff are working with El to expedite this work for that reason. Once the City has issued the building permit, cleanup work at this site will begin, with installation and operation expected to be completed in late spring or early summer, 2003. I hope that this summary is useful to you. If you have any questions, or wish additional information, please contact me at your convenience.