12-17-1998 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 MAYOR Michael I. Fahey COUNCIL Beverly Scalze Jim LaValle Steve Morelan Bob Pedersen ADMINISTRATOR Joel R. Hanson TO: Mayor Fahey & Members of the City Council FROM: Joel Hanson, City Administrator DATE: December 11, 1998 RE: Rice Street/Little Canada Road Redevelopment Update Activity has definitely picked up in the past couple of weeks as far as interest in this area. Here are the highlights for your review: • Chris Moarn has submitted his initial proposal for the redevelopment of the northeast corner of Rice Street and Little Canada Road (a copy is attached). Rusty Fifield and I are reviewing these numbers, but the obvious concern is the limited amount of equity into the deal at the front of the project. Another major concern is that this is a bonding project versus a "pay as you go" scenario. I feel the City can afford to be very aggressive to get the first project off and running on this corner in a "pay as you go" format. However, if the City is to bond for these front end costs, I think we need to be more conservative to ensure debt service requirements can be met. I hope to be meeting with Mr. Moarn prior to Thursday's meeting to massage these numbers. • Sherman Rutzik and Joe Vitale are working on a development proposal for their property (and possibly an expanded area). I have not seen any specific information on their concept at this time. It may be possible that we will have some information by Thursday's meeting. My understanding is that the project would consist of office, retail, and senior housing uses. • We have also been approached by H.J. Development for a retail center on the corner of Rice Street/Little Canada Road. They are contemplating between 30,000 and 40,000 square feet of retail space. In their proposal, they would be involved in purchasing some of the properties directly and would look for the City to transfer ownership on our parcels at a reduced cost. (A copy of their proposal is attached. Please keep in mind that it is very preliminary and will change if we proceed.) I have informed them that we will be able to give a definite answer in early January pending the outcome of Mr. Moarn's discussion. • Mr. Grootwassink and Mr. Hotzler are still attempting to work with Cinemark on the theater concept. I do not believe any communication has occurred since our last meeting. Page 67