01-14-1999 Council Agenda - Laserfiche WebLink

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515 Little Canada Road, Little Canada, MN 55117 -1600 (651) 484 -2177 / FAX: (651) 484 -4538 MEMORANDUM TO: Mayor Fahey & Members of the City Council FROM: Joel Hanson, City Administrator DATE: January 8, 1999 RE: Rice Street/Little Canada Road Redevelopment Update Chris Moarn Office Project: MAYOR Michael I. Fahey COUNCIL Beverly Scalze Jim LaVaile Steve Morelan Bob Pedersen ADMINISTRATOR Joel R. Hanson We have met with Mr. Moarn and his banker on two different occasions. We have been focusing on the resolution of the additional cash requirements on Mr. Moarn's part to finance the acquisition of the US Bank property as well as paying off the City's investment in the Guerin and Budget Power properties. The bank has a concern in this matter in terms of adequate security while still meeting appropriate loan to value ratios. These meetings have been productive and we believe those matters can be satisfactorily resolved. The key issues at this point are the lease of approximately 22,000 square feet to CI Title and US Bank's position on the sale of their property. Both of these items are being addressed by Mr. Moarn. We are likely to be 30 days away from a development agreement. Mr. Moarn is well aware of the timing constraints this project poses. We have informed him that when he makes appropriate progress on his two outstanding issues, we will put together the draft of the preliminary development agreement. • Vitale/Rutzik Proposal: I have not received any further information on this potential project as of the date of this memo. We have set a meeting for January 20th to review their proposal in more detail. Mr. Rutzik has indicated he is interested in focusing on a senior housing component. I have pointed out to him that senior housing can be a viable piece of the redevelopment puzzle, but it must be considered in the scope of the entire redevelopment area. Page 104