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Item 2 - Redevelopment <br />January 5, 2009 <br /> Page 2 of 7 <br /> <br />At the December 8, 2008 EDA meeting, the EDA provided city staff and the developer <br />with the following direction about a potential project: <br /> <br />• The EDA is willing to explore additional redevelopment concepts for the 5.7-acre <br />site. The December 2006 redevelopment concepts for the site (offices and <br />townhomes) are not viable in today’s market. <br /> <br />• The EDA prefers that sit-down restaurants or destination-type businesses be <br />located on the site. Of the list of businesses that the developer has approached, <br />the EDA is most interested in Staples. <br /> <br />• The EDA would consider assisting the developer with redevelopment costs (such <br />as the following) after careful consideration of a development pro forma: <br />o Demolition <br />o Grading/Site Preparation <br />o Storm water management <br /> <br />• The EDA is not interested in providing financial assistance for Tires Plus to locate <br />on the site. <br /> <br />• The EDA is interested in speaking with the developer to conceptualize on land <br />uses and financial aspects of a potential project. <br /> <br />Also on December 8, 2008, EDA members asked the following questions to which the <br />developer has responded as follows: <br /> <br />1. What is the financial gap that the developer is projecting between project costs and <br />potential site sale prices to attract sit-down restaurants or Staples to the site? <br /> <br />The developer told City staff that the financial gap could be between $952,000 and $1.3 <br />million. <br /> <br />2. What types of businesses is the developer going to try to attract to the site based on <br />the EDA’s input from December 8, 2008? <br /> <br />The developer will continue to try to attract “small box” and sit-down restaurants. There <br />are few retailers and sit-down restaurants (with the exception of Buffalo Wild Wings) that <br />are expanding in today’s market. Therefore, if the EDA wishes to limit the site to “small <br />box” and sit-down restaurants, it may be 24-36 months before those types of businesses <br />are willing to consider building on the site. <br /> <br />3. How would those new businesses help the City of Mounds View? <br /> <br />The increase in market value and property taxes are the main benefit to the City. <br />Residents would have new services close to home and the project would create a domino <br />affect that would encourage further development and redevelopment in the County Road <br />10 corridor.