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Mike Mornson May 6,2002 Page 2 12. September 2002 — Upon Ehlers recommendation, City Council rejects C-70 proposal and request Ehlers to talk to developers about possible redevelopment 13. October/November 2002 —Ehlers initiates discussions with potential developers 14. December 17, 2002 —Amcon presents redevelopment options to City Council for review and consideration. City Council directs Ehlers to complete financial analysis of proposal/options Based upon these discussions, Amcon submitted a proposal to Ehlers in December 2002. Their proposal is to construct 26,000 sq/ft of retail in two buildings. One building would be located on the northern portion of the property, at the intersection of County Road 88 and Kenzie Terrace. This building would accommodate a 5,000 to 6,000-sq/ft restaurant and its placement on the site will be contingent on the County deeding the needed additional Right-of-Way to the City. The second retail building, consisting of 20,000 sq/ft, will be located on the southern portion of the site where the existing strip center is located. It is anticipated that the new 9,000 sq/ft municipal liquor store will be located on the end cap fronting along County Road 88 and the remaining 11,000 sq/ft of retail space will span over to Kenzie Terrace. If the City Council elects to proceed with redeveloping the Stonehouse site, Ehlers recommends entering into a Pre-Redevelopment Agreement with Amcon Construction for a term of six (6) months (see attached Agreement). The purpose of this Agreement will be to provide Amcon the opportunity to finalize development plans for submittal to the City Commissions, secure their financing for the redevelopment and for Ehlers to complete a comprehensive review of the financial feasibility of the proposed transaction. Primary Issues to Consider: 1. What are the City's goals for redevelopment of the site? z. Will the County deed the needed Right-of-Way(ROW) to the City for redevelopment? 3. How -can the City be assured that the Sports Boosters will be accommodated at the new restaurant? 4. Does Amcon have redevelopment experience and the financial capability to complete the redevelopment? 5. Is the redevelopment proposal financially feasible? 6. What other issues should the City consider as part of this redevelopment proposal? Analysis of Issues: 1. What are the City's goals for redevelopment of the site? Throughout the process, the City Council has relayed the following key points for the potential redevelopment of this site: 1. The City would like to retain an 8,000-10,000 sq/ft municipal liquor store on the site