12-17-98 Council Minutes - Laserfiche WebLink

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MINUTES CITY COUNCIL DECEMBER 17,1998 rather would be used for parking. If Moarn is not successful in acquiring the bank site, then the City could pursue the property. Moarn would have funds in escrow to reimburse the City for this property. The Administrator anticipated that tax increment financing utilizing the pay-as-you-go method would be part of the financial package. This allows the City to be reimbursed on the front end of the project. Fahey noted that there is another developer interested in this same parcel. Fahey indicated that the City has been working with Moarn for some time now, and felt he should be given a reasonable time frame to put a project together. Moarn stated that the key to his project is the tenant is his working with and the time frame that tenant has. However, this tenant is also looking at sites in Roseville and in Maplewood as other alternatives. The City Administrator reported that H. J. Development has expressed interest in this same piece of property. H. J. Development is proposing a retail development for this corner, but it may be possible to incorporate this proposa( somewhere else within the development district. The Administrator reported that H. J. Development has been informed of Mr. Moarn's :nterest in the City, but that if the Moarn proposal does not move forward, the City is willing to look at other proposals. Jerry Hertel, H. J. Development, indicated that his firm is interested in putting up a multi-tenant building composed of both retail and office uses. Hertel reported that his firm has been in business for 15 years and they typically retain ownership of their developments. Pedersen asked if H. J. Development has looked at the demographics for the area and whether or not it could support more retail. Hertel replied that he believes the traffic on Rice Street would support additional retail. Hertel also felt that with the right tenant, he could fill the remainder of the retail center. Hertel felt that he could lease enough of the space so that construction of this project could commence in the spring. Hertel reported that he is proposing 10,000 square feet of oPFice space and 35,000 square feet of retail space centered around a courtyard area. Moarn indicated that his proposal consists of 95% office space. Fahey indicated that the City appreciated the concept proposals and pointed out that it is incumbent upon Mr. Moarn to move quick(y to work out the details of his proposal. Moarn stated that his prospective tenant needs to know whether the project will move forward within 60 days. 17