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515 Little Canada Road, Little Canada, MN 55117 -1600 <br />(612) 484 -2177 / FAX: (612) 484 -4538 <br />MEMORANDUM <br />TO: Mayor Fahey & Members of the City Council <br />FROM: Joel Hanson, City Administrator <br />DATE: January 23, 1998 <br />RE: Economic Development Workshop <br />MAYOR <br />Michael 1. Fahey <br />COUNCIL <br />Beverly Scalze <br />Jim LaValle <br />Steve Morelan <br />Bob Pedersen <br />ADMINISTRATOR <br />Joel R. Hanson <br />While I do not have a lot of specifics to report at this time, there should be much information to discuss at <br />Wednesday's workshop regarding the redevelopment project. On Monday, Mr. Kim Wise of Cinemark <br />Theatre Group will be here to go over his concepts for site development and to discuss project financing. <br />The meeting will start at 4:00 p.m. at City Center and will continue over dinner at the Venetian Inn at <br />6:00 p.m. Mayor Fahey and Council Member Pedersen will be attending. Michael Schroeder and Rusty <br />Fifield will also be present to assist in the discussions. <br />Mr. Wise has indicated to me that his idea for site layout is similar to the one Michael Schroeder last <br />presented to the Council. I told him that we would likely be concerned with that proposal given its <br />visibility impact on the shopping center. I emphasized some of our key concerns regarding sharing of <br />parking and site lines to other properties that need to be maintained. Hopefully, we can make some <br />progress on this item at Monday's meeting. <br />I have also asked Rusty Fifield to analyze the deal from the standpoint of shortening the duration of our <br />debt on the project. Past projections assumed 20 years of debt which is a long time to bank on the <br />viability of all development components. He will be looking at what type of up front participation is <br />necessary on the part of the developers to reduce the term of the debt to under 15 years. My justification <br />for this concept relates not only to the risk incurred by the City, but also on the land sale comps for other <br />theatre sites I presented in my last memo. <br />Another key concern with the project at this point in time is that if it is to go forward, we will need to <br />make some very significant and rapid progress to achieve construction yet this summer. Acquisition <br />issues and road design also need to be factored into this equation in order to provide enough lead time to <br />ensure success. <br />If you have any concerns or comments on the information I presented, please let me know prior to <br />Monday's meeting. Otherwise, we will be able to have a more detailed discussion at Wednesday's <br />workshop. <br />JRH:kpv <br />cc: Rusty Fifield <br />Michael Schroeder <br />Page 1 <br />