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EDC Minutes July 15, 2016 Page 8 of 10 Empire House has approached the City looking at constructing a building on the vacant land north of Biolife. For some reason, they were negotiating with a company that didn't own the land. Once they found out, they decided to back out of the project. Beeman identified a person that sits on the real estate board for Biolife and ensured that the two were in contact going forward. To date, Beeman hasn't heard from the Empire House owner other than the owner saying he would follow up with the contact. The owner also had mentioned in past conversations with Beeman that he liked Mounds View and how its staff has worked with them and desired to stay in the City if possible even though they have looked at Blaine and surrounding sites. Beeman informed the Commission that it would be much easier if the City owned more land and could assemble those parcels for redevelopment. There is a high demand for industrial use and with the City owning little land, staff is forced to contact the private land owners and get them in contact with business owners. This complicates and prolongs the process making it more difficult. Helgemoe thought it was interesting that they were negotiating with someone that didn't own the land. Beeman said there have been similar cases even on the residential side out of Chicago and other places where an unknowing buyer will sign a purchase agreement with someone that doesn't own the property. This buyer transfers the money then never sees the person again. The buyer is then out both the house and the money. Next, Beeman informed the Commission that EI Loro has indicated that they will be closing in about two months. They mentioned a construction project a few years ago along 1-35 that closed a street for a time. The customers got used to taking the alternate route and they were never able to regain the customer base like they had before. They also mentioned that they tried negotiating their lease but were unsuccessful. Commissioner Rieland asked how long they have been in business. Helgemoe said they have several locations around the Twin Cities. Beeman thought they had been in the Mounds View location for about five or so years. Beeman said there isn't much that can be done to assist them. They would need to decrease their lease amount and/or increase their customer base. The owners liked the idea of the Crossroad Pointe apartments which in theory would add more customers. However, they said they are not able to hold on for another year until the new apartments are built. Helgemoe asked if Pastor Enterprises, who owns the building, had mentioned any plans for that location. Beeman said he has been approached by a restaurant who may be interested in the building; however the owner has asked that staff keep the inquiry confidential at this time. Since the building has a commercial kitchen it has a higher demand than other buildings. Beeman informed the Commission that a private event center group was looking at the Tires N More area as a possible location to hold weddings, caterings, and other gatherings. On the weekends there could be around 200 vehicles. The group was intrigued by the property since the EDA owns an adjacent parcel. However, the parking ratios may have been a challenge and the city's desire for that area is to redevelop all three parcels as one project rather than piecemeal parcels to force a project. As a result, the group has decided to continue its search in other locations.