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~ ;, ~ .' ..... ' !Prope~r~ I Size i
· ! !i .,~, ~
· ~ .ST A~ N~
_--i ,: C)~ ~
= ~ ;~i l'"' ~...:.'.':"?~..' :'?;-"'." .. '..
-- ~.. :~: : ?:. ·
~ ~ ~ }~ .~ · ~ ' . ...~.,,~.. .-..;.- ',~-... :
~ ~ ,~; ~ ~- ,I ' ·
-- ~ ..... ~~~~~ .... . ·.
~ t ....' ~- ·.
~ ~ '.. '. ! : "~-;'::..; .:."' :,'. '-.,...:.-?~. ':':
~ 'I ' ' '. ·
m '< ~ --r-~~~~~~.'..~
= ~ i /":X.>.. '%;- ~.,~'.'s~
, ,..-...
: -, ..... ....,
i '"'., ";,' :.'
: . -". '-' ': -";:'~'~~: ~
'. ' ' : ..... ~ ~ '
.. ...-~. .' , .. ... ·
: ~: , · ......., .. -.~ j ~sr~, ~1--~~--_[:~_ ~~:~ ~.~
..... · ~.:. : f , -~-. ,
, ' ':':" .'..:.'~:t: "~z.:.:~., ~~
· : ..... : , ~
...... ,-, .... . ,~
, .... · ...-~-~ ....... ~ , ~ , , ~. ~7 , , . i-. Z ,
.... :., ,,. .... s~. ~.~
· ' ' . ,.. J:~"~". ' ; ' ~:
· ., .-..; ..... . ...... ~; . ~ ~ ~ :~ ~4, .
..... · ....... · ...... } ~ ,
' · ..... ~". "'* i ~--~
· ' .: . .. ' '*-'~d' - '~: ~ : ~ ~
· '.' .... ':'".'-'~*'~ .... ~ '---- ' _ ' ' , '~~,
. - ...... ::.' .. , : .&;7 .... ,~ : ~1 ~ .... 4 ~' ...... : ..
. . --..~.,:~-* . , ~ ~ ~ ~ ~ ~ ~' ~ ~' ~ .... , ....
- :' ';, · ~-'- / ~ ~ ~: · ·
..... ~. .- /-. ~ . ,~~~~ ~ ,~ .- , ~ .- -..
" ' ' ":'..:' /' ~'~ X~ '~'~ i~
' ' --- · - ~'" "· ~ ~ I ~'~ ~' ~ ~ ' % ' ';. ."'
. -' ,~.<" &x%X~z~x,~
. '~ z ~ '~ ~' v ~ i · · -- ~" ~ ~ '.. %~ ~".. ".,
..~., ~.~ x ,. , ~ ~-.~ z ~ ., , . ~;~.., .,, .. ..
-=.~. .,.. ~-.~, ,. ~~. ~.-,~ , = ~~ ~ ~%~,,' ,..,- ,< ',, ..
24 ........ . , ~4~ ~ · i · i -- I ~ ~ ~ t , / .. -- -,.
.... ,. ~ .. , . ~, . . ~ .... ~. ,, ,. .. :.,
" ' ,~. ,.~-., ~. / '- ~ ~. ~
· . .,-.~ ..-'*, ~1 I ~ ..'~- ' ...' ~/ ', ,. .... ..
'.
....... x ~ . ~ -. .:-,.. ~-..
· · ·
G;
/
'-
!
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.