02-23-05 Council Workshop Minutes

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mINUTiJs CITY COUNCIL FI'1BRUARI' 23, 2005 he has received the necessary approvals for this building, and would continue with the building as approved. Sherman indicated that he had hoped to have the building pre-leased before starting construction; but since that has not happened will begi^ construction confdent that once the building starts to go up, the leasing will occur. Sherman indicated that he has found that the smaller, local businesses typically do not commit to new space rn~til it is close to being ready for occupancy. S1~ennan also informed the Council Chat there is a lot more environmental contamination on the site than initially anticipated. He estimated the clean up costs at $250,000 to $350,000. T'he previous owner has put funds in escrow to assist iu these costs. Sherman noted, however, that the clean up costs must be well-documented given the escrow agreement with the previous properCy owner. Sherman reported that this first office building will consist of 20,000 square feet, will be two stories with 10,000 square feet on each floor. 'fhe first floor is anticipated to be occupied by small specialty shops and a restaurant. The second floor will be small businesses such as medical and dental clinics and realtor offices. Sherman reported that they had attempted to lease with a larger user, however, those efforts were unsuccessful. Slrerman pointed out that north side of the redevelopment area and indicated that the interest that he is getting for that area includes office condominiums, auto service-related businesses, and coffee shops. He even had interested expressed from the McDonald's that is located in Little Canada for a new site. Sherman indicated that it is not a part of his plan to pursue and relocate ah~eady existing Little Canada businesses. Sherman indicated that any development of the north parcel will include the same high-quality architectural elements that are evident on The Lodge and The Villas. With regard to 1"he Lodge, Sherman reported that of the 78 senior rental units, there are 22 lei't to rent. While rentals are slow at 2 or 3 per month, Sherman felt this was typical for the senior market. Ile also noted that once seniors relocate to this type of housing, they are loner term tenants. With regard to'fhe Villas, Sherman reported that sales are also slower than desired. 1-te noted that `fhe Villas is a tremendous value compared to the cost of similar housing in adjacent cities. La Valle asked about the retail space at The bodge. Sherman reported that be is in the process of adjusting his rental rate for that space in response to the market. New proposals will be going out for the space very soon.