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515 Little Canada Road, Little Canada, MN 55117-1600 <br />(651) 766 -4029 / FAX: (651) 766 -4048 <br />www.ci.little-canada.mn.us <br />MEMORANDUM <br />TO: Mayor Fahey & Members of the City Council <br />FROM: Joel Hanson, City Administrator <br />DATE: February 8, 2002 <br />RE: R. A. Morton Development Project <br />A4AYOR <br />Michael 1. Fahey <br />COUNCIL <br />Beverly Scare <br />Jim LaValle <br />Matt Anderson <br />Ricic Montour <br />ADMINISTRATOR <br />Joel R. Hanson <br />Attached is correspondence received from Ron Morton regarding the status of the office project for the <br />northeast corner of Rice Street and Little Canada Road. Conventional financing may be possible, but will <br />add significantly to the time for delivery due to pre - leasing requirements. (In my opinion, substantially <br />more than is indicated on the time line attached by Mr. Morton.) <br />Another option would be for the City to finance construction over a limited time period (three to five <br />years). Once the project has stabilized, conventional financing would be placed and we would be paid <br />off. (Similar to our Market Place Shopping Center transaction with the notable exception that no tenants <br />currently exist for this project.) <br />Mr. Morton also provided us with some profiles of the proposed building. You will note that the height <br />has been reduced from three stories to two. The advantages from the developer's standpoint are reduced <br />construction costs thereby making the project easier to finance and lease. This layout also provides more <br />scale along Rice Street and Little Canada Road that corresponds well with the potential new project <br />across the street. <br />Mr. Morton will be present at Wednesday's meeting to review this information with you in greater detail. <br />Based on this discussion, we will need to decide if we should continue to pursue the development the <br />R.A. Morton and Associates or seek other options. At this point in time, I do not have a recommendation <br />as to which alternative is in our best interest. <br />cc: R. A. Morton & Associates <br />Guerin Family Partnership <br />