HomeMy WebLinkAbout10A - Downtown Redevelopment
MEETING DATE:
AGENDA #
PREPARED BY:
OCTOBER 20, 2008
10 A
PAUL SNOOK, ECONOMIC DEVELOPMENT DIRECTOR
CONSIDER APPROVAL OF A RESOLUTION ACTING UPON THE
ECONOMIC DEVELOPMENT ADVISORY COMMITTEE
RECOMMENDATION REGARDING SCOTT COUNTY
COMMUNITY DEVELOPMENT AGENCY (SCOTT COUNTY CDA)
RESPONSE TO REQUEST FOR PROPOSALS FOR DOWNTOWN
REDEVELOPMENT
AGENDA ITEM:
DISCUSSION:
Introduction
The City Council is asked to consider a resolution accepting the
Economic Development Advisory Committee's recommendation
regarding the Scott County Community Development Agency's
response to the Request for Proposals for Downtown
Redevelopment.
Historv
On April 4, 2008 the City Council authorized the release and
distribution of a Request for Proposals (RFP) for Downtown
Redevelopment.
The City received one proposal in response to the Request for
Proposals, from the Scott County Community Development Agency
(Scott County CDA).
The City Council held a work session on August 18th to review and
discuss the proposal, and ask questions of the Scott County CDA
and developer Dunbar Development.
Current Circumstances and Conclusion
The Economic Development Advisory Committee (EDAC) met on
October 1, 2008 to consider the proposal from the Scott County
CDA. The EDAC believes the proposal fails to meet critical
objectives as set forth in the Downtown Redevelopment Request for
Proposals.
ISSUES:
The EDAC is recommending that the City Council reject the
downtown redevelopment proposal from the Scott County CDA for
the following reasons (these reasons reflect the issues outlined in
the attached EDAC Agenda Report of October 1st):
· The proposal does not provide enough of a mix of housing
to the downtown. The proposal contains senior housing of which
there is abundance in the downtown area (Lakefront Plaza). The
EDA~~~t!JR~U~@J?cott CDA is an exceptional
Phone 952.447.9800 / Fax 952.447.4245
ALTERNATIVES:
developer of quality senior housing in Scott County. However,
the EDAC is of the opinion that a mix of housing makes for a
more dynamic downtown both residentially and commercially,
and therefore the City should pursue a more varied residential
stock in redevelopment.
.
The CDA proposal does not have a strong retail component.
Private developers of quality mixed use projects work with
retailers in their developments and therefore have a more
accessible source of retail tenant prospects than the Scott CDA
has. While the Scott CDA's projects are certainly high-quality
and contribute to the communities in which they exist, the Scott
CDA's history of having service-related businesses, medical
clinics I office, and other public uses (like in the Hamilton
Building in Savage) do not meet the City's goal of a strong retail
base in the downtown.
.
The proposal does not provide enough parking. It does not
provide a parking structure as specified in the RFP, nor does it
provide adequate surface parking for the new development.
.
The proposed public ownership of the development would
encumber the City's ability to use tax increment financing
for this project and throughout the downtown. Nor does it add to
the commercial property tax base of the city.
The Economic Development Advisory Committee developed a two
part recommendation that:
a.) City Council reject Scott County Community
Development Agency's Downtown Redevelopment
Proposal, and
b.) City Council direct staff to identify specific developers
that have projects that the City believes are similar to
its goals; find out if they will be interested in future
opportunities for redevelopment when the market
improves, and if there are specific items in the RFP
that are barriers for them submitting a proposal; work
to modify those barriers to accommodate both the
City and developer; and authorize re-issuance of the
Request for Proposals for Downtown Redevelopment
at a future date.
1. Approve a resolution accepting the two part
recommendation of the Economic Development Advisory
Committee (above); or
2. Approve a resolution to not move forward with Scott
County Community Development Agency's Downtown
Redevelopment Proposal, and do nothing more at this
time.
RECOMMENDED
MOTION:
ATTACHMENTS:
The Economic Development Advisory Committee recommends
Alternative 1.
Staff recommends Alternative 2.
Attendant documents from the October 1, 2008 Economic
Development Advisory Committee meeting:
· Economic Development Advisory Committee Agenda Report
· Redevelopment Proposal from the Scott County CDA
· Questions presented by City staff and the corresponding
response by Scott County CDA and Dunbar Development.
· List of developers RFP was sent to
· Memo regarding developer feedback
· Memo from the City's financial consultant, Ehler's &
Associates, in follow-up to the Scott County CDA's
presentation at the August 18th City Council work session.
'-
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f.., ~~ 4646 Dakota Street S.E.
U ?\ Prior Lake, MN 55372-1714
l'1'1
"'NNES'!ft/ CITY COUNCIL
RESOLUTION OS-xx
A RESOLUTION ACTING UPON THE ECONOMIC DEVELOPMENT ADVISORY COMMITTEE
RECOMMENDATION REGARDING SCOTT COUNTY COMMUNITY DEVELOPMENT AGENCY
RESPONSE TO REQUEST FOR PROPOSALS FOR DOWNTOWN REDEVELOPMENT
Motion By:
Second By:
WHEREAS, redevelopment in downtown Prior Lake is supported and called for in various policy and
planning documents of the City, including the 2030 Vision and Strategic Plan;
Comprehensive Plan; The Prior Lake Downtown Development Guide; Development
Potential Study; and Downtown Building Design Guidelines; and
WHEREAS, the City of Prior Lake 2030 Vision and Strategic Plan, under the Downtown
Redevelopment element, calls for a thriving downtown, and for the downtown to be a
unique community focal point and attraction that contributes to the City's identity and
offers opportunities for recreation, employment, housing, shopping and dining; and
WHEREAS, goals included under the Downtown Redevelopment element of the 2030 Vision and
Strategic Plan include encouraging redevelopment, and construction of mixed use
buildings; and
WHEREAS, Blocks 2, 4, 13 and 15 in downtown Prior Lake are well positioned for redevelopment
since there are a significant number of parcels owned by the City, and there is a
prevalence of blighting conditions on these blocks that contribute to the
underperformance of downtown; and
WHEREAS, On April 7,2008 the City Council authorized the release and distribution of a Request
for Proposals for Redevelopment of Downtown, and
WHEREAS, The City received a proposal from the Scott County Community Development Agency
dated June 30, 2008, and
WHEREAS, The City Council held a workshop on August 18, 2008 to discuss and consider the
proposal and pose questions to the Scott County Community Development Agency
staff, and
WHEREAS, At its October 1,2008 meeting, the Prior Lake Economic Development Advisory
Committee considered the proposal from the Scott County Community Development
Agency and voted to recommend that the City Council reject the proposal because it
failed to meet critical objectives for the redevelopment of downtown Prior Lake as set
forth in the 2030 Vision and Strategic Plan and Request for Proposals for Downtown
Redevelopment, and
www.cityofpriorlake.com
Phone 952.447.9800 / Fax 952.447.4245
WHEREAS, At its October 1, 2008 meeting, the Economic Development Advisory Committee voted
to recommend that the City Council direct staff to identify specific developers that have
projects that the City believes are similar to its goals; find out if they will be interested in
future opportunities for redevelopment when the market improves, and if there are
specific items in the RFP that are barriers for them submitting a proposal; work to
modify those barriers to accommodate both the City and developer; and authorize re-
issuance of the Request for Proposals for Downtown Redevelopment at a future date.
NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE,
MINNESOTA as follows:
1. The recitals set forth above are incorporated herein.
2. The City Council accepts the recommendation of the Economic Development Advisory Committee
to reject the Scott County Community Development Agency's Downtown Redevelopment Proposal.
3. Staff is directed to identify specific developers that have projects that the City believes are similar to
its goals; find out if they will be interested in future opportunities for redevelopment when the market
improves, and if there are specific items in the RFP that are barriers for them submitting a proposal;
work to modify those barriers to accommodate both the City and developer; and authorize re-
issuance of the Request for Proposals for Downtown Redevelopment at a future date.
PASSED AND ADOPTED THIS 20th DAY OF OCTOBER, 2008.
YES
NO
I Haugen
I Erickson
I Hedberg
I LeMair
I Millar
Haugen
Erickson
Hedberg
LeMair
Millar
Reviewed By:
Frank Boyles, City Manager
R:\Council\2008 Agenda Reports\10 20 08\EDAC Recommmendation re Scott County CDA Redevelopment Proposal\CC
Resolution - EDAC Recommendation re Scott CDA DT Proposal.doc
4646 Dakota Street S.E.
Prior Lake, MN 55372-1714
ECONOMIC DEVELOPMENT ADVISORY COMMITTEE
AGENDA REPORT
MEETING DATE:
AGENDA #
PREPARED BY:
OCTOBER 1, 2008
3A
PAUL SNOOK, ECONOMIC DEVELOPMENT DIRECTOR
SCOTT COUNTY COMMUNITY DEVELOPMENT AGENCY (CDA)
RESPONSE TO REQUEST FOR PROPOSALS FOR DOWNTOWN
REDEVELOPMENT
AGENDA ITEM:
DISCUSSION:
The Scott County Community Development Agency (CDA) has
submitted a response to the City's Request for Proposals for Downtown
Redevelopment.
Attached are the following:
1. Redevelopment Proposal from the Scott County CDA
2. A list of the questions presented by City staff and the
corresponding response by Scott CDA and Dunbar
Development.
3. List of developers RFP was sent to
4. Memo regarding developer feedback
5. A memo from the City's financial consultant, Ehler's &
Associates, in follow-up to the CDA's presentation at the August
18th City Council work session.
The City Council held a work session August 18th to review and discuss
the proposal, and ask questions of the CDA and Dunbar Development.
Features of the proposal include:
General
· A four story mixed use development of independent senior
housing and neighborhood retail
· Scott CDA has been successful in developing, owning and
operating senior housing in New Prague, Savage, and
Shakopee
· The concept for neighborhood retail would be to provide a
retail location that would be acceptable in the marketplace
for neighborhood business owners to conduct their service
related businesses.
· A condition of proceeding with the development would be to
secure either a master tenant or have a significant amount
of the retail space pre-leased.
DeveloDment Plan
· 54 senior apartment units (18 one bedroom; 18 one
bedroom + den; 18 two bedroom)
· 11,225 square feet of neighborhood service retail
www.cityofpriorlake.com
Phone 952.447.9800 / Fax 952.447.4245
Land Acauisition
· CDA would work with the City in the acquisition of parcels
· CDA is confident of arriving at a land cost that will allow
economic viability of the proposal.
Market
· For residential/housing, CDA has secured a third party
independent analysis from Maxfield Research
· Analysis shows that a market exists for this development
proposal in this location in Prior Lake at this time.
· For retail, CDA views this to be the most challenging market,
and is ongoing in its market analysis for the space.
· A master tenant or significant level of pre-leased space will
be a contingent factor in allowing CDA to move forward with
this development.
Desian
· Southeast corner of Main Avenue and Eagle Creek Avenue
(Hwy 21)
· A plaza at the corner of the building
· Public, surface parking behind the building
· Amenities such as benches, public gardens and a fountain
· Architecture takes cues from older and newer buildings in
downtown Prior Lake
· Design is in keeping with the Downtown Building Design
Guidelines
· Storefronts open on to Main Ave
· Common areas for the apartments are at street level and
include a community room with kitchen, exercise room,
library, and woodshop.
· Apartments will meet the needs of residents, including extra
wide entry doors, handicapped adaptable kitchens and
bathrooms, individual heating, ventilation and air
conditioning, and remote storage lockers
· Concept drawings do not suggest final development; CDA is
open to input to clearly define the final design
Financina
· CDA will use Springsted, Inc. as the financial advisor
· Housing component - CDA will use its tax exempt authority
for bonding
· Commercial/Retail - will use more conventional financial
model
Challenaes
· Land acquisition
· Potential relocation
· Acceptable neighborhood retail tenancy
· Potential environmental conditions; need for
abatement/clean-up
ISSUES:
Number of Prooosals Received
After sending out forty-one request for proposals, we received one
response, from the Scott Count CDA. Staff followed up with a majority
of the developers. Many of the them suggested that they are interested
in submitting a proposal and see potential in downtown Prior Lake, but
for a variety of reasons, the timing is not right to submit at this time. It is
difficult to know the potential for redevelopment when only one proposal
is received. See related attachments:
Senior Housina
Senior housing has a significant presence in the downtown area with
Lakefront Plaza, which has seventy-nine living units. Does the city want
another 54 units of senior housing in the downtown? A range of
housing elements makes for a more vibrant downtown in terms the mix
of people inhabiting downtown and the wider retail market that
downtown residents would support.
Retail
The goal as outlined in the Request for Proposal is to have a downtown
that has a mix of uses and design character rich enough to attract
people to live downtown, and cause people to linger, visit more
commercial and retail establishments, and spend more money.
The CDA proposal lacks a detailed market analysis for the retail
portion. The CDA states that it is ongoing in their market analysis for
retail, that this is the most challenging market, and that the retail
component, working through a master tenant, will be a contingent factor
in allowing the CDA to move forward with the project.
In the workshop meeting with the City Council, the CDA stressed that
service related businesses, medical related (clinics 1 offices), and public
uses would be a good fit in the ground level retail space at this time
(similar to the Hamilton building in downtown Savage), until the retail
market rebounds. The CDA proposal falls short of the RFP goal of
having a strong retail component to the project.
Parkina
The CDA proposal includes underground parking dedicated to
residents. The proposal would not include a general public parking
structure as specified it he RFP. The CDA and Dunbar Development
are of the opinion that the suburban market is not comfortable with an
urban style parking ramp. A ramp would be more conducive to an office
setting.
In addition to not providing for a parking structure, the proposal does
not provide a significant number of surface parking for the 11, 000
square feet of retail.
OwnershiD / Financina
The CDA, a public entity, would be the owner of the building. By statute
the CDA is required to pay real estate taxes on the retail/commercial
portion of the project. Taxes would be market rate on the retail /
commercial portion, and on the housing portion it would be payment in
lieu of taxes (PILOT). Typically, PILOT is 1/3 of what taxes are for a
ALTERNATIVES:
privately developed and owned project. Public ownership by the CDA
and consequent PILOT would likely eliminate the City's ability to create
a TIF district and use tax increment financing, whether it be for this
project, to assist in creating additional downtown parking, or to use in
redeveloping other areas of the downtown.
The financing structure the CDA anticipates would be taxable bonds for
the retail 1 commercial component and tax exempt bonds backed by the
City, CDA and County for the residential portion.
Offer and pass a motion recommending that the City Council not move
forward with Scott County Community Development Agency's
Downtown Redevelopment Proposal; and
1. As outlined by Ehlers & Associates, direct staff to identify
specific developers that have projects that the City believes are
similar to their goals. Find out if they will be interested in future
opportunities for redevelopment when the market improves, and
if there are specific items in the RFP that are barriers for them
submitting a proposal; work to modify those barriers to
accommodate both the City and developer; and, authorize re-
issuance of the Request for Proposals for Downtown
Redevelopment at a future date;
. or.
2. Do nothing at this time
RESPONSE TO REQUEST FOR PROPOSALS FOR:
Downtown
Redevelopment
PRESENTED BY:
Scott County
Community Redevelopment
Agency
June 30, 2008
.
CDA
Scott County
Community Development Agency
323 South Naumkeag Street
Shakopee, MN 55379-1652
Phone: 952.402.9022
Fax: 952.496.2852
~'1_'I...'J'J"'.".
June 30, 2008
Mr. Paul Snook,
Economic Development Director
Prior Lake City Hall
4646 Dakota Street SE
Prior Lake, MN 55372
Subject: RFQ/RFP Response to Prior Lake Downtown Redevelopment
Dear Mr. Snook,
The Scott County Community Development Agency (CDA) is pleased to respond to your request
for proposals by submitting a proposed mixed-use development which includes Independent
Senior Housing and Neighborhood Retail on the site set forth in your request. We have
assembled a team of experienced organizations that have worked in the development of Senior
Housing and Neighborhood Retail over the years and with whom we have had a strong working
relationship. Weare confident in our team's ability to work with the City of Prior Lake to
achieve your goals and objectives for the site.
The Scott County CDA has made it a high priority mission to develop, construct and operate
Senior Housing in Scott County . We are truly pleased to submit this proposal for your
consideration. We are optimistic that our proposal will meet the goals and objectives of the
City of Prior Lake.
Our entire development team stands ready to respond to any questions or explain our proposal
to address any issues that the City has during your review. Please direct all questions to
Bill Jaffa at 952-402-9022 or Frank Dunbar at 763-377-7090. They will respond with the
appropriate team member to address your inquiry.
Again, thank you for your consideration.
Sincerely,
~
William I. Jaffa
Executive Director
Scott County Community Development Agency
Enclosures
Cc: Dunbar Development Corporation - Frank Dunbar
Great Lakes Management - Mike Pagh
DeAnn Croatt
Commissioner
District I
Ben Zweber
Commissioner
District II
Marjorie Henderson
C ,,,,..'ssioner
District III
Patti Sotis
Commissioner
District IV
Jane Victorey
Commissioner
District V
An Equal Opportunity / Affirmative Action Employer
City of Prior Lake, Minnesota
Downtown Redevelopment
Index
Letter of Introduction
Tab #1 - Development Plan
Tab #2 - Market Report Letter
Tab #3 - Design
Tab #4 - Marketing and Management Plan
Tab #5 - Proforma
Tab #6 - Time Line
Tab #7 - Resume: Scott County CDA
Tab #8 - Resume: DDC
Tab #9 - Resume: GLM
Tab #10 - Resume: MHP
Tab #11 - Development Team Members
DEVELOPMENT PLAN
Development Plan
Introduction
Scott County Community Development Agency (CDA) is pleased to describe a development
concept for consideration by the City of Prior Lake for the development of a portion of the parcel
of land described in your request for proposal dated April, 2008. We propose a mixed-use
development of independent senior housing and neighborhood retail. One of the strong missions
of Scott County CDA is to provide independent senior housing within the communities of Scott
County. We have been successful in developing, owning and operating senior housing in New
Prague, Savage, Shakopee and other communities within Scott County. We have developed
mixed-use developments in both Savage and Shakopee. Our concept for this site would continue
our mission of providing senior housing and would hopefully align with the mission of the City
of Prior Lake. Our concept for the neighborhood retail would be to provide a retail location that
would be acceptable in the marketplace for neighborhood business owners to conduct their
service-related businesses. A condition of us proceeding with this development would be that we
secure either a master tenant or have a significant amount of the space pre-leased prior to
commencement of the overall development.
DeveloDment Plan
The Development Plan would consist of 54 senior apartment units and 11,225 square foot of
neighborhood service retail. The site plan attached (please refer to Tab #3) will give you a sense
of our concept for the development. The unit breakdown is set forth below:
. 18 - 1 Bedroom
. 18 - 1 + Den
. 18 - 2 Bedroom
Land Acouisition
Scott County CDA would work with the City of Prior Lake in the acquisition of any parcels that
would need to be acquired and will work with the City to detennine the proper land cost. Land
cost is a critical component of economic viability for this development and at this time we are
unable to detennine exactly how that will come together. We are confident and optimistic that
we can come to a land cost that will allow economic viability of our proposal.
Market
Housing - We have secured a third-party independent analysis from Maxfield Research,
providing us comfort that a market truly exists for this development program in this location at
this time. During our development process we will continue to interact with Maxfield Research
to refine the market customer and provide that customer with the precise product necessary to
meet the market demand. Please see Tab #2
Retail - We are ongoing in our market analysis for the retail space. We view this to be the most
challenging market and we are optimistic that we can fmd the right tenants to occupy the space.
As we have stated before, this component will be a contingent factor in allowing us to go forward
in this development.
Desie:D
Our proposal for the southeast comer of Eagle Creek A venue and Main A venue combines
exceptional senior residences with high quality commercial space in a mixed-use development.
As a gateway building to the Prior Lake downtown district, the design places a plaza at the
comer, connecting the apartment building entrance with retail storefronts and public parking
behind the building. The plaza will become a hub of activity that supports downtown 'street life'
with amenities such as benches, public gardens and a fountain. The introduction of a tall building
form at the comer creates a back drop for the plaza and becomes an identifying gateway element.
The architecture takes its cues from both the older and newer buildings in downtown Prior Lake
and is in keeping with the design principals described in Downtown Building Design Guidelines.
It continues the line of storefronts from the northeast to the comer and harmonizes with the newer
downtown structures.
As directed by the Design Guidelines, storefronts open onto Main Avenue and anchor the Eagle
Creek A venue facade. Public parking is behind the building and is reached by pedestrians from
the plaza. By locating a pedestrian access point at the comer, active use of the plaza is increased
and the idea of this as a place for the community to gather is reinforced.
The common areas for the senior apartments are right at street level, along Eagle Creek A venue,
and include a community room with kitchen, an exercise room, a library and a wood shop.
Residents have easy access to all that downtown living offers and will energize the downtown
Prior Lake community.
Each apartment has special design features that meet the unique needs of the residents, including
extra wide apartment entry doors, handicapped adaptable kitchens and bathrooms and remote
storage lockers for personal belongings. Every apartment also features individual heating,
ventilation and air conditioning controls and all-electric, energy efficient appliances.
Additional apartment amenities include private balconies and heated underground parking.
As a strong gateway building and as a focal point of activity, this mixed-use development has the
potential to increase the economic vitality and quality of life in the downtown community.
City Process
Once our proposal has been evaluated by the City we would want to meet with the City to clearly
understand the City's entitlement process that would conform to our development. We are
comfortable that our team will work closely with the City Staff to determine the process that
needs to be undertaken to secure the necessary approvals to allow our mixed-use development to
go forward.
Should we be successful in the selection process, we have set forth the proposed time schedule to
achieve this development. Please refer to Tab #6.
Financine;
At the time of our selection we will bring on our financial advisor, Springsted, Inc., to develop,
construct and suggest a financial model that will permit the financing of this development to
proceed. We will need two components to the financing: one component will be for the housing
which will allow us to use our tax exempt authority for bonding which has historically been
supported by the City and the County to achieve market level rents for the community. The
second financing will have to be for the commercial which will need to have more of a
conventional financial model developed to allow us to finance that component of the
development.
Tab #5 is a draft proforma for preliminary financing purposes evidencing a very preliminary
feasibility of the development.
Marketinl!: and Manal!:ement
Great Lakes Management Company, on behalf of Scott County CDA, has presented a concept of
the Marketing and Management plan. Please refer to Tab #4.
Suoolemental Information
This proposal is submitted to give the City of Prior Lake an overall concept of our development
plan. We have included a draft proforma and a suggested time table of activities. We are
prepared to modify the proposal to assure that it comes into alignment with the goals and
objectives of the City.
The concept drawings submitted in this package depict our concept and do not suggest the
actual development. We will be open to input from the community to clearly define the
final design proposal.
There are a few developmental challenges we would like to bring to your attention. Land
acquisition, potential relocation and acceptable neighborhood retail tenancy will be critical factors
in developing the economic viability of this proposal. We are prepared to work closely with the
City to achieve a financial structure that allows this concept to be implemented. We also want to
confirm that the site has all environmental conditions resolved prior to our development proposal
proceeding which is in all parties' best interest. We look forward to working with the City in
bringing forward this exciting downtown mixed-use concept.
MARKET REPORT LETTER
"
. ~fi~'bK
"
June 18,2008
Mr. William Jaffa
Executive Director
Scott County Community Development Agency
323 Naumkeag Street
Shakopee,~ 55379
RE: Potential Demand for Adult, Independent Senior Housing in Prior Lake, Minnesota
Dear Mr. Jaffa:
As requested, Maxfield Research Inc. has completed a very preliminary assessment of the
potential demand for market rate, adult, independent senior housing (rental) that would be
located on a site in Prior Lake, Minnesota. As we understand, you are considering the potential
development of adult/few services senior housing in the community. Our initial assessment
indicates that the defined Prior Lake Market Area could support 59 units of adult/few services
housing that would be targeted to meet the needs of independent, older adults and seniors.
Because there is additional independent senior housing in many of the communities that
surround Prior Lake, we have limited the draw area for this product, but have allowed that a
higher proportion of seniors with moderate incomes may move to Prior Lake and seek out this
type of housing.
We are not aware of any pending senior developments in Prior Lake at this time, although new
senior housing has recently opened in the community (Shephard's Path).
Prior Lake enjoys a strong reputation in Scott County as a highly desirable residential location.
We believe that the community will continue to attract a wide variety of residents and that
seniors currently living in Prior Lake will want to remain and that others in the surrounding area
will choose Prior Lake as a residence to take advantage of conveniently located goods and
services and the amenity provided by the Lake.
We defined a Market Area for adult/few services senior housing in Prior Lake that includes the
communities of Prior Lake, Savage, Spring Lake Township and Credit River Township. We
estimate that this Market Area will account for approximately 60% of the potential draw for the
proposed housing product. The remaining 40% of demand will come from outside of this area
from senior households that consider Prior Lake to be a highly desirable community and are
looking for the features and amenities that would be offered by the proposed development. We
have projected that a higher proportion of target households would come from outside of the
defined Market Area because of Prior Lake's current high quality reputation in the market and
high level of desirability in the Twin Cities Metro Area.
615 1 51 Avenue NE, #400, Minneapolis, MN 55413
(612) 338-0012 (612) 904-7979
www.maxfieldresearch.com
Mr. William Jaffa
Scott County CDA
June 18, 2008
Page 2
The 40% of demand from outside of the Market Area includes prospective residents who have
previous ties to the area or parents of adult children currently living in the draw area who would
move there to be closer to their families. We also believe that Prior Lake has a regional appeal
for seniors from other locales who would move to Prior Lake because of its current qualities and
characteristics.
As shown on Table 1, since 2000, the number of households in the Market Area has increased by
just over 35%. Population increased by 35%. Both of these increases are significant and reflect
growth rates for the past eight years that is substantially higher than that of the Twin Cities
Metro Area. Over the next five years, from 2008 to 2013, strong growth is projected to continue
with the overall population forecast to increase by 17% and overall households expected to also
increase by 17%.
A review of senior population and household growth trends reveals that adult households age 55
and over are projected to increase in the Prior Lake Market Area by 2,241 households over the
next five years (2008 to 2013). This is a growth rate of 48.4%. Those age 65 and over are
projected to increase by 979 households or 53.4%. Senior households age 75+ are projected to
increase by 249 households or 44.1 %. The significant growth projected among households age
55 to 64 suggests that a portion of this group may want their aging parents to live in closer
proximity to them, creating an additional segment of the potential demand for senior housing in
Prior Lake. Table 1 presents this information.
Table 2 presents information on the incomes of Market Area older adult and senior households.
As shown, as of2008, there were an estimated 3,646 households age 55 and over that are
estimated to have annual household incomes of at least $35,000 and would be age and income-
qualified for the proposed development. Another 313 households age 55 and over that own their
own homes but currently earn between $25,000 and $35,000 would also be potential candidates
for the proposed housing if they sold their homes and invested a portion of the proceeds toward
funding the cost of alternative housing. Household homeownership rates from the 2000 Census
were applied by age group. These proportions were 77% of householders age 75+, 90% of
householders age 65 to 74 and 94% of householders age 55 to 64. These proportions are applied
to the moderate income household base, those that earn between $25,000 and $35,000 per year.
MAXFIELD RESEARCH INC.
Mr. William Jaffa
Scott County CDA
June 18, 2008
Page 3
TABLE 2
OLDER ADULT (55+) INCOME DISTRIBUTION
PRIOR LAKE MARKET AREA
2008 & 2013
2(HlS
55-64 65-74 75+ Total 65+
No. Pet. No. Pet. No. Pet. No. Pet.
Under $15,000 126 4.5 102 8.0 129 22.8 231 12.6
$15,000-$24,999 65 2.3 131 10.3 116 20.5 247 13.5
$25,000-$34,999 61 2.2 122 9.6 130 23.0 252 13.7
$35,000-$49,999 223 8.0 194 15.3 101 17.9 295 16.1
$50,000-$74,999 410 14.7 275 21.7 34 6.0 309 16.8
$75,000-$99,999 606 21.7 170 13.4 37 6.5 207 11.3
$100,000 or more 1,303 46.6 275 21.7 18 3.2 293 16.0
1 100.01
Total 2,794 100.0 1,269 100.0 565 100.0 1,834
$35,000+ 2,542 91.0 914 72.0 190 33.6 1,104 60.2
Median Income $96,121 $57,772 $27,884 $44,508
20B
55-64 65-74 75+ Total 65+
No. Pet. No. Pet. No. Pet. No. Pet.
Under $15,000 151 3.7 144 7.2 140 17.2 284 10.1
$15,000-$24,999 83 2.0 137 6.9 157 19.3 294 10.5
$25,000-$34,999 96 2.4 167 8.4 155 19.0 322 11.4
$35,000-$49,999 194 4.8 334 16.7 156 19.2 490 17.4
$50,000-$74,999 530 13.1 425 21.3 99 12.2 524 18.6
$75,000-$99,999 722 17.8 255 12.8 48 5.9 303 10.8
$100,000 or more 2,280 56.2 537 26.9 59 7.2 596 21.2
Total 4,056 100.0 1,999 100.0 814 100.0 2,813 100.0
$40,000+ 3,662 90.3 1,441 72.1 311 38.1 1,751 62.3
Median Income $108,724 $62,794 $32,096 $50,787
( hall~l' 200S-20 B
55-64 65-74 75+ Total 65+
No. Pet. No. Pet. No. Pet. No. Pet.
Under $15,000 25 19.8 42 41.2 11 8.5 53 22.9
$15,000-$24,999 18 27.7 6 4.6 41 35.3 47 19.0
$25,000-$34,999 35 57.4 45 36.9 25 19.2 70 27.8
$35,000-$49,999 -29 -13.0 140 72.2 55 54.5 195 66.1
$50,000-$74,999 120 29.3 150 54.5 65 191.2 215 69.6
$75,000-$99,999 116 19.1 85 50.0 11 29.7 96 46.4
$100,000 or more 977 75.0 262 95.3 41 227.8 303 103.4
Total 1,262 45.2 730 57.5 249 44.1 979 53.4
$35,000+/$40,000+ 1,120 44.1 527 57.6 121 63.4 647 58.6
Median Income $12,603 13.1 $5,021 8.7 $4,212 15.1 $6,279 14.1
Sources: Claritas, Inc.; Maxfield Research Inc.
MAXFIELD RESEARCH INC.
Mr. William Jaffa
Scott County CDA
June 18, 2008
Page 4
Our analysis identified two adult/few services rental developments in the Prior Lake Market
Area. These developments are age-restricted and provide housing for fully, independent seniors
(those that do not need or want services).
Older adult and senior households earning at least $30,000 annually would qualify for the
proposed development based on an income allocation of 40% of income toward housing.
The average home price in Savage and Prior Lake as of 2008 was $328,920. A more
conservative average sale price for older homes, those 15 years and older, and excluding the
highest priced sales is $258,800. A household with a home priced at the average sale price of
$258,800 could obtain an additional roughly $800 per month that could be used toward housing
costs. A household with an annual income of $15,000 who owns their home could afford senior
housing by utilizing a portion of the proceeds from a home sale.
Our demand analysis applies an estimated capture rate for each age cohort based on their
projected propensity to move to alternative senior housing as well as our experience in this
market with adult/few services senior rental developments.
Historically, adult/few services developments, especially those that are affordable, have been
well-received in the Twin Cities Metropolitan Area and have performed very well against other
higher service levels (congregate, assisted living).
Our demand analysis applied the following capture rates to each age cohort:
55 to 64 - 0.5%
65 to 74 -7.5%
75+ - 18.0%
These capture rates were been developed by Maxfield Research Inc. and reflect our experience in
Scott County and the Twin Cities market, the propensity of each age group to move to alternative
housing and the general competitiveness of the market (i.e. available product choices) in the area
in which the proposed development would be located.
Our demand analysis results in total potential demand for 47 adult independent units as of 2008
and increasing to 72 units by 2013. The analysis segments the demand between ownership
independent senior housing without services and independent rental senior housing without
services (40% ownership and 60% rental). We have subtracted all units that are age-restricted
with no services (rental and ownership) within their respective categories in the demand
calculation.
MAXFIELD RESEARCH INC.
Mr. William Jaffa
Scott County CDA
June 18, 2008
Page 5
Table 3 presents our preliminary potential demand for age-restricted senior units in the Prior
Lake Market Area.
TABLE 3
PRELIMINARY MARKET RATE ADUL T/FEW SERVICES HOUSING DEMAND
PRIOR LAKE MARKET AREA
2008 & 2013
# of Households wI Incomes of $20,000 to $29,9991
(times) Homeownership Rate
(equals) Potential Market
(plus) # of Households wI Incomes of $30,000+1
(equals)Total Potential Market Base
(times) Potential Capture Rate
(equals) Demand Potential
Total Market Rate Demand Potential
(times) % for housing wlservices & wlo services
(equals) Demand potential
(plus) Demand from Outside Market Area (40%)
(equals) Total Demand Potential
(minus) Existing Competitive and Pending Units2
(equals) Long-term Demand
(times) Percent capturable at Site
(eauals) # of units supportable at Site
200H
Aee of Householder
55-64 65-74 75+
63 127 123
x 94% 90% 77%
59 114 95
+ 2,573
2,632
x
0.5%
13
975
1,089
7.5%
82
158 ~
18.0%
63
Adult
Rental
x 60%
95
+ 63
158
91
67
x 70%
47
201J
Aee of Householder
55-64 65-74 75+
107 185 179
94% 90% 77%
101 166 138
255
350
3,736
3,836
1,568
1,734
377
515
Ownership
x 40%
63
+ 42
105
78
27
x 70%
19
x 0.5%
19
Ownership
x 40%
97
+ 32
129
78
51
x 70%
1= 36
7.5%
130
242 ~
18.0%
93
Adult
Rental
x 60%
145
+ 48
194
91
103
x 70%
72
I 2013 income-qualified figures adjusted for inflation ($34,999K or more + homeowners wI inc. of$22.5K - 34,999K)
2 Competitive existing and pending units include adult rentaVownership at 95% and 92% occup. (equilibrium).
Source: Maxfield Research Inc.
MAXFIELD RESEARCH INC.
Mr. William Jaffa
Scott County CDA
June 18, 2008
Page 6
Table 4 shows a suggested unit mix, sizes, and rents for an adult/few services development in
Prior Lake, Minnesota. As shown on the table, we suggest that rents begin at roughly $850 per
month for a one-bedroom unit and range to $1,450 per month for a two-bedroom plus den unit.
We believe there is demand for an age-restricted independent building in the community.
Township residents typically have larger residences with acreage and are more likely to prefer
larger size units (i.e. two-bedroom and two-bedroom plus den units). We recommend that you
offer a balanced mix of unit sizes to capture sufficient demand from both segments of the
market.
TABLE 4
PRELIMINARY SUGGESTED UNIT MIX/SIZESIRENTS
SITE IN PRIOR LAKE
June 2008
Unit Type
lBR/IBA
IBR+Den/1.5BA
2BR/2BA
2BR+Den/2BA
Total
Preliminary
# of Units % of Total
14 28.0%
12 24.0%
16 32.0%
8 16.0%
50 100.0%
Square
Feet
Rent
$850-$895
$975-$1,050
$1,150-$1,200
$1,350-$1,450
Rent!
Sq. Ft.
$1.17 -$1.23
$1.11-$1.20
$1.14-$1.21
$1.11-$1.16
725
875
950-1,050
1,220-1,250
Note: Rent includes water, sewer, and trash.
Rents are quoted in 2008 dollars.
Source: Maxfield Research Inc.
If you have any questions or need additional information, please contact me.
Sincerely,
MAXFIELD RESEARCH INe.
VJ1(~ eOffi
Mary e. Bujold
President
MAXFIELD RESEARCH INC.
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MARKETING AND MANAGEMENT PLAN
Marketing and Management
Great Lakes Management Company has a 20-year history of successfully marketing and
managing multifamily and senior properties throughout the state of Minnesota.
The marketing of a senior housing community would commence at the time of groundbreaking.
Marketing events and activities would be on-going through the property's grand opening
celebration and beyond until the project reaches stabilized occupancy.
The goal of the marketing efforts would be to create a positive public image of the property
along with community and regional awareness for the purpose of generating interested and
qualified seniors who are prepared to enter into lease agreements.
Strategies that will be employed to achieve the goal of a rapid lease-up would include but are not
limited to:
. Brochures (including unit floor plans, amenities and available services)
. Site signage
. Newspaper Advertising
. Internet web site and web advertising
. Open houses
. Targeted mailings
. Media announcements and feature stories
Management of the project is performed by personnel hired and directed by Great Lakes
Management Company. It is anticipated that staffmg would consist of a full-time on-site
manager who would be assigned to oversee all of the day-to-day responsibilities of managing
and maintaining the property. The on-site manager would report directly to GLMC's Director of
Senior Housing.
Housekeeping positions would be staffed to perform common area cleaning and unit "turn"
cleaning duties. All housekeeping personnel will be employed by Great Lakes Management and
will report directly to GLMC's on-site manager.
The maintenance duties will be performed by an on-site maintenance person who will also be
employed by GLMC and will report directly to GLMC's on-site manager.
All accounting and financial administrative activities are performed by Great Lakes Management
at the company's home office in Golden Valley, Minnesota.
~
Great Lakes Mana6~M";' Co.
J....&~J" ". .
PROFORMA
DRAFT
PRIOR LAKE
Preliminary PrOject Budget
Housing Retail Total
Land Costs TBD TBD TBD
Design Costs 276,374 38,746 315,120
Development Costs 266,770 43,139 309,910
Cost of Insurance 180,208 10,000 190,208
Financing Costs 0 21,530 21,530
Capitalized Interest 321,509 52,909 374,417
Construction Costs 6,480,000 1,066,375 7,546,375
Marketing / Management 106,000 67,350 173,350
Operating Reserve TBD TBD TBD
Debt Service Reserve TBD TBD TBD
Contingency 34,140 5,950 40,091
7,665,000 1 ,306,000 8,971,000
Unit MIx
Units
18
6
12
6
6
6
Unit Type
1 BR. & 1 BA.
1 BR. + DEN
1 BR. + DEN
2 SA. & 2 SA.
2 BR. & 2 BA.
2 BR. & 2 BA.
SF
722
784
941
1033
1065
1081
Monthly
Rent
$890
$940
$1,130
$1,250
$1,290
$1,310
Average Rent
Average Price Per SF
$1,080
1.21
Parking
Projected Vacancy
54 stalls $45 per month
7% First Year
5% Year 2-10
NOTE: Actual results could vary from these projections because of the uncertainties inherent in any
financial forecast.
PRIOR LAKE
DRAFT
54 UNITS - SENIOR
11,225 SF RETAIL
DRAFT
HOUSING
RETAIL
BUDGET/BOND
---- - -- ----------------------------------- --.----------------------- -------------
---- - -- ----------------------------------- --.----------------------- -------------
LAND COSTS
1 LAND TBD TBD TBD
TOTAL LAND COST TBD TBD TBD
DESIGN COSTS
2 ARCHITECTURAL & ENGINEERING 178,200 35.920 214,120
3 SOIL TEST 5,581 919 6,500
4 SURVEY 5,152 848 6,000
5 ENVIRONMENTAL 6,440 1,060 7,500
6 PERSONAL PROPERTY I INTERIOR DESIGN __~] ,000 0 _lB~Q9~
TOTAL DESIGN COSTS 276,374 38,746 315,120
DEVELOPMENT COSTS
7 MARKET STUDY 5,152 848 6,000
8 TITLE INSURANCE 9,581 1,632 11,214
9 MUNCIPAL FEES 8,587 1,413 10,000
10 REAL ESTATE TAXES & ASSESSMENTS 0 0 0
11 INSURANCE 13,500 66 13,566
12 DEVELOPMENT ADMINISTRATION (3% of TDC) ~~~50 ~_!:l,~llQ 269,1 ~Q
TOTAL DEVELOPMENT COSTS 266,770 43,139 309,910
COST OF ISSUANCE
13 FINANCIAL CONSULTANT 35,000 5,000 40,000
14 BOND COUNSEL / LEGAL 35,000 5,000 40,000
15 TRUSTEE 11 ,498 0 11 ,498
16 RATING AGENCY 7,500 0 7,500
17 PRINTING 1,500 0 1,500
18 UNDERWRITER FEE 89,710 0 89,710
TOTAL COST OF ISSUANCE 180,208 10,000 190,208
FINANCING COSTS
19 APPRAISAL 0 5,000 5,000
20 LENDER LEGAL 0 10,000 10,000
20 FINANCING FEE 0 6,530 6,530
TOTAL FINANCING COSTS 0 21,530 21,530
CAPITALIZED INTEREST COSTS
19 CONSTRUCTION INTEREST ~~!~Q~ 52,909 374,417'
TOTAL CAPITALIZED INTEREST COST 321,509 52,909 374,417
CONSTRUCTION COST
20 CONSTRUCTION CONTRACT 6,480,000 898,000 7,378,000
TENANT IMPROVEMENTS 0 _168!-375 _ ~B8,~?,5
TOTAL CONSmUCTION COST 6,480,000 1,066,375 7,546,375 \I
II
MARKETING I MANAGEMENT COSTS II
21 MARKETING 81,000 0 81,000 \I
22 BROKER'S COMMISSION 0 67,350 67,350 II
23 MANAGEMENT STARTUP 25,000 0 25,000. II
TOTAL MARKETING I MANAGEMENT COSTS 106,000 67,350 173,350 II
\I
OPERATING DEFICIT RESERVE 0 0 0 II
DEBT SERVICE RESERVE 0 0 0 II
CONTINGENCY 34,140 5,950 40,091
------- -... --- ----------------------------..----.....------------------------..- -----..-------------- -------------------- -----------------------
TOTAL DEVELOPMENT COST
DEBT
==== = == =================================== I
I
==== = == =================================== I
7 665 000 1 306 000 R 971 (JOO
7665000 1 306000 B 971 000
----------- ----------- -------------
----------- ----------- -------------
----------- ----------- -------------
----------- ----------- -------------
6/2012008 54 UNITS_11225COMMERCIALxls
NOTE: Actual results could vary from these projections because of the uncertainties inherent in any financial forecast.
TIME LINE
Submit RFP
Select Development Team
Secure Land
--..---------
Secure Retail Gro\J~()r l'en~~ts_n
Concept Dr~wi~~__
Concept Dra\Vil1~ A.Pjlr.oval13yCity
_ _ 0 Crc:~~eS=ity ~_~ic~i()~__nm___ __n
oSubnUt C;ity_Entitlement Process
Secure .I~()nd Financing JHo~~i~~L
o Submit i\pplication
o ~.e_c~ive _Apjlro~al
Secure Bond Financing(~etail)
. Subll1it~_ol1~ A.Jl'~~~1 ___
o Receive Bond Authorization
c;o..ITIe!~~'pesi~__
Select Contractor
C;lo~il1..g <l.1!I'in~n~ill!l
Star! Construction
<:()II1!l1..eI!_c.e:._P~e-_~1l':1<~in~__
COlTlplet~ C;onstruction (Sept. 20 I 0)
Sec~r.e ()c:u!,an~}' Permit (~eEt.20!91
City of Prior Lake, Minnesota
Downtown Redevelopment Time Schedule
MONTHS I 2008 I
I__~~IL I A\J_g 1_ _Sept I Oct
Nov
Dec
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I II I I
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I J I I I
I J I II L I
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I J I I II I I
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2009
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2010
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RESUME: SCOTT COUNTY CDA
.
CDA
Scott County
Community Development Agency
323 South Naumkeag Street
Shakopee, MN 55379-1652
Phone: 952.402.9022
Fax: 952.496.2852
.."l...j....l.I..'...~..
The Strategic Vision of the Scott County Community Development Agency
(CDA) is to encourage the formation of new and innovative public and private
partnerships to ensure long term sustainability of housing and community development
activities and the leveraging of public and private resources to transform communities
within Scott County.
The Scott County CDA has proven successful in creating partnerships to
redevelop downtown areas with mixed use projects resulting in a thriving downtown
community where residents want to live, work, shop, and obtain services.
Successful revitalization of downtown Prior Lake will require a VISIOn for
preservation and economic growth while incorporating Prior Lake's unique historical
identity into the project. The Scott County CDA has experience partnering with cities to
ensure a successful project. This is done through careful planning and cooperative
financing.
PLANNING
. Downtown businesses/civic groups
Merchants
Chamber of Commerce
. City government
Councils
Economic Development Authorities (EDA's)
. County Community Development Agency
F acilita tor/Developer
. Joint Powers Agreement
Partnership-Development Agreement
Cost Sharing
Market Studies
. Concept Development
Housing, Retail and Historic Amenities
Site Selection
Timetable
. Development Team Selection
Project Coordinator
Bond Counsel
Financial Analyst
Architect
FINANCING
. Sale of Bonds
Tax Exempt Revenue Bonds
Taxable Commercial Bonds
Low Interest City Loan
Tax Increment
Special Benefit Tax Contribution
Grants
Examples of the Scott County CDA successfully partnering with cities for downtovm mixed used
developments follow,
DeAnn Croatt
Commissioner
District I
Ben Zweber
Commissioner
District IT
Marjorie Henderson
Commissioner
District ITI
Patti Sotis
C. po,," "."ssioner
District IV
Jane Victorey
Commissioner
District V
An Equal Opportunity / Affirmative Action Employer
I~. '^
~.... r.
'I']JE'
~_=-l~~~I_l_1
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.- -,>,,~ ,
. 42 units of 55+ independent rental housing in downtown
Savage
. Approximately 17,528 square feet of office/ classroom space on
first floor
. Public Master Lease Tenant
, ,~-- ~
I <;
.~~ -~:.~~'1~
( 'I< i ' r
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'-"V" ..,.-<"
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(~:'~-- t---t)! /\ :~) /\-:> r -1 }V.-~~ \~ r " (~
. 52 units of 55+ independent rental housing in downtown
Shakopee
. Approximately 25,000 square feet of retail space
. Private Master Lease Tenant
RESUM~: DDC
.,
DUNBAR DEVELOPMENT CORPORATION
Dunbar Development Corporation (DDC), formed in 1985, is a Twin Cities based corporation.
DDC has worked extensively with many communities to provide development coordination
services for residential components consisting of market rate, mixed-use, senior and student
housing along with development services for light industrial, commercial and office
developments. DDC develops unique financial, design and construction methods to meet the
ever changing market.
SCOPE OF SERVICES
DDC's areas of expertise include the following:
. Market interpretation
. Design concept
. Financial modeling
. Site acquisition and preparation, including coordination of:
Traffic analysis
Environmental/wetlands assessment
Soil analysis
. Bond Structuring
. Governmental relations, including:
Community presentations
Design and zoning coordination with Planning Department
Design and construction coordination with Inspections & Public Works
Departments
. Development coordination of architects, attorneys and other project-related consultants
. Construction bid negotiations
. Construction supervision and management
. Coordination of marketing/management activities
Attached is a resume for Frank C. Dunbar, President of DDC, along with a list of developments.
'-..:
J
FRANK C. DUNBAR
President, Dunbar Development Corporation
Dunbar Development Corporation (DDC) was created in 1985. Since that time, DDC has
focused primarily on multi-family developments, owned both by private partnerships and
governmental agencies. DDC has developed over 4,500 rental units in the Minnesota, many of
which are located in designated redevelopment areas. In recent years, DDC has expanded its
development activities to include commercial office, light industrial, for-sale condominiums and
retail affiliated with mixed-use developments.
Mr. Dunbar has expertise in market
interpretation, design concepts, financial
modeling and analysis. Mr. Dunbar is
involved in site acquisition and
preparation with emphasis on
environmental concerns. His experience
includes strong governmental
relationships and detailed coordination
with public agencies. The success of DDC is built on strength in construction bid negotiations,
construction supervision and management.
Mr. Dunbar has and does serve on a number of Boards of professional associations, as well as
religious and civic non-profit organizations, throughout the Twin Cities.
Mr. Dunbar received his B.A. Degree in Business Administration from S1. Mary's University in
Winona, Minnesota in 1972. He received a Masters Degree in Real Estate Appraisal and
Financial Analysis from the University of Wisconsin-Madison in 1975.
DUNBAR DEVELOPMENT CORPORATION
DEVELOPMENT LIST
I. :\IIXED LiSE
DEVELOPMENT NAME
MONROE VILLAGE
Minneapolis, MN
TOWN CENTRE
Waconia, MN
BRICKY ARD APARTMENTS
Chaska, MN
HAMIL TON BUILDING
Savage, MN
RIVER CITY CENTRE
Shakopee, MN
LAUREL VILLAGE
The McNair
RESIDENTIAL UNITS
COMMERCIAL SQ. FT. COMPLETION
51 Units November, 2004
7,000 sJ. Commercial
69 Units December, 2003
32,300 s.f. City Hall/Library
32 Units January, 2001
8,415 s.f. Commercial
42 Units September, 2000
17,000 s.f. School District Offices
52 Units August, 1998
25,373 s.f. Commercial
Scott County CDA
OWNER
V olunteers of America,
Minnesota
Carver County CDA
Carver County CDA
Scott County CDA
Laurel V ilIage Partners
February, 1991
77 Units
10,000 s.f Commercial
72 Units
15,793 sJCommercial
210 Units
29,580 sJ. Commercial
68 Units
6,000 s.f. Commercial
Deforest Apartments
April, 1990
Hennepin Crossing
June, 1989
June, 1986
Alden Apartments (Rehab)
Minneapolis, MN
11. \1 'T R.UE 110l 'SI:\(;
DEVELOPMENT NAME RESIDENTIAL UNITS COMPLETION OWNER
HOIGAARD VILLAGE 220 units Under Construction Camerata, LLC
The Camerata - St. Louis Park, MN
ARBOR GLEN APARTMENTS 264 Units June, 2002 MG Longstreet, LLC
Maple Grove, MN
LAUREL VILLAGE Laurel Village Partners
Wilson Park Tower 204 Units July, 1991
Laurel Curve 89 Units July, 1991
S winford Apartments (Rehab) 52 Units June, 1991
Swinford Townhomes (Rehab) 23 Units June, 1991
Minneapolis, MN
GABLES APARTMENTS 102 Units December, 1987 Grand Gables Partners
Bloomington, MN
111. OFFICE
DEVELOPMENT NAME RESIDENTIAL UNITS COMPLETION OWNER
ING DIRECT BUILDING 72,954 s.f. December, 2007 Cloudbar & Associates,
St. Cloud, MN LLC
W A YZA TA EXECUTIVE 104,000 s.f. April, 2002 Wayham, LLC
PLAZA Wayzata, MN
SPRINGBROOK EXECUTIVE 32,136 sJ. October, 2000 Net Rapids, LLC
PLAZA Coon Rapids, MN
MINNETONKA EXECUTIVE 16,597 s.f. February, 2000 Ambar, LLC
PLAZA Minnetonka, MN
MAPLE GROVE EXECUTIVE 57,112sJ. November, 1998 Merchant Development
SUITES Maple Grove, MN LLC
CHAMPLIN PROFESSIONAL I 1,757 s.f. September, 1998 Champlin Drive, LLC
BUILDING Champlin, MN
V ALLEY CREEK OFFICE 128,000 s.f. August, 1998 Valley Creek
PARK Golden Valley, MN (3 buildings) Development, LLC
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DEVELOPMENT NAME RESIDENTIAL UNITS COMPLETION
GLENDALE PLACE 64 Units Under Construction
Savage, MN
PEACE VILLA 36 Units October, 2006
Norwood Young America, MN
THE OAKS OF LAKE GEORGE 52 Units July, 2006
Oak Grove, MN
CHAUNCEY BARETT 31 Units December, 2004
GARDENS. PHASE II
Centerville, MN
NORTHRIDGE COURT 58 Units August, 2004
Shakopee, MN
ORONO WOODS 62 Units October, 2002
Orono, MN
PHILLIP SQUARE 55 Units September, 2002
New Prague, MN
SA V ANNAH OAKS 50 Units October, 1999
Ramsey, MN
CHAUNCEY BARETT 16 Units May, 1998
GARDENS
Centerville, MN
GARDEN TERRACE II 37 Units June, 1997
New Ulm, MN
LINCOLN PLACE APARTMENTS 30 Units May, 1997
Eveleth, MN
WASHINGTON MANOR 63 Units May, 1997
(Rehab)
Virginia, MN
THE WILLOWS 49 Units March, 1997
Ham Lake, MN
CENTENNIAL HILL 62 Units July, 1996
Chanhassen, MN
SUMMERFIELD PLACE - II
Thief River Falls, MN 47 Units April, 1996
Baudette, MN 30 Units February, 1996
WILD RIVER APARTMENTS 36 Units September, 1995
Sandstone, MN
SUMMERFIELD PLACE - I
Crookston, MN 30 Units February, 1995
Ada, MN 31 Units January, 1995
Park Rapids, MN 60 Units January, 1995
Warren, MN 20 Units December, 1994
Clearbrook, MN 10 Units December, 1994
Fertile, MN 14 Units November, 1994
Fosston, MN 12 Units November, 1994
LAKESHORE PLACE 60 Units July, 1994
Grand Rapids, MN
GARDEN TERRACE 51 Units May, 1994
New Ulm, MN
AMBERFIELD PLACE
Arlington 30 Units June, 1994
Madelia 20 Units June, 1994
Trimont (Rehab) 10 Units May, 1994
Sherburn 14 Units May, 1994
Gaylord 26 Units March, 1994
Madelia 16 Units February, 1994
LAURENTIAN MANOR 80 Units March, 1993
Virginia, MN
NORTH VIEW MANOR 60 Units October, 1992
Bemidji, MN
OWNER
Scott County CDA
City of Norwood Young
America
Anoka County HRA
Anoka County HRA
Scott County CDA
V olunteers of America,
Minnesota
Scott County CDA
Anoka County HRA
Anoka County HRA
New Ulm EDA
Eveleth EDA
Virginia HRA
Anoka County HRA
Carver County CDA
Northwest Minnesota
Multi-County HRA
Sandstone HRA
Northwest Minnesota
Multi-County HRA
Grand Rapids HRA
New Ulm EDA
South Central Minnesota
Multi-County HRA
Virginia HRA
Bemidji HRA
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DEVELOPMENT NAME RESIDENTIAL UNITS COMPLETION OWNER
COBBLE HILL APARTMENTS 45 Units June, 1992 Washington County HRA
Woodbury, MN
ANN BODLOVICK 50 Units September, ]99] Washington County HRA
APARTMENTS Stillwater, MN
WOODLAND PARK 180 Units December, 1989 Washington County HRA
APARTMENTS
Cottage Grove, MN
VERNON TERRACE 146 Units December, 1987 Grandview Partners
Edina, MN
\. S II IH"'\ I 1101 SI,\(;
DEVELOPMENT NAME RESIDENTIAL UNITS COMPLETION OWNER
EAST LAKE APARTMENTS 100 Units August, 2003 Winona State University
Winona, MN Foundation
KEELER APARTMENTS 44 Units August, 2003 J.A.Wedum Foundation
Minneapolis, MN 10,000 s.f Episcopal Church
UNIVERSITY VILLAGE ] 99 Units August, 1999 J.A. Wedum Foundation
Minneapolis, MN 24,000 s.f. Commercia]
CAMPUS COURT 40 Units November, 1995 Northwest Minnesota
APARTMENTS Multi-County HRA
Thief River Falls, MN
ALPINE VILLAGE 24 Units November, 1995 Virginia HRA
Virginia, MN
\ 1. \It LTl-F.\\IILY lIot'SI'\(;
DEVELOPMENT NAME RESIDENTIAL UNITS COMPLETION OWNER
JONATHAN TOWNHOMES 86 Units 1999 Carver County CDA
(Rehab) Chaska, MN
SUMMERFIELD PLACE - II Northwest Minnesota
Roseau 4] Units April, 1996 Multi-County HRA
Thief River Falls 36 Units March,1996
Baudette 12 Units February, 1996
Badger 8 Units November, 1995
WILD RIVER APARTMENTS 36 Units September, 1995 Sandstone HRA
Sandstone, MN
CITY VIEW APARTMENTS 144 Units September, 1995 Hillside Neighborhood LP
(Rehab) Des, Moines, IA
SUMMERFIELD PLACE - I Northwest Minnesota
Warren 16 Units January, 1995 Multi-County HRA
Crookston 40 Units December, 1994
Greenbush 12 Units December, 1994
Erskine 10 Units December, 1994
Clearbrook 6 Units December, 1994
Fisher 14 Units November, 1994
Shelly 8 Units November, 1994
Newfolden 8 Units November, 1994
Fosston 12 Units November, 1994
Park Rapids 36 Units November, 1994
Argyle 8 Units October, 1994
FOREST PARK WEST 36 Units September, 1994 Grand Rapids HRA
Grand Rapids, MN
AMBERFIELD PLACE South Central Minnesota
Arlington 26 Units May, 1994 Multi-County HRA
Henderson 14 Units April, 1994
St. James 28 Units April, ] 994
Madelia 24 Units March, 1994
Winthrop ] 6 Units February, 1994
Gibbon 12 Units February, 1994
Lafayette 12 Units January, ] 994
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DEVELOPMENT NAME RESIDENTIAL UNITS COMPLETION OWNER
AMBERFIELD PLACE South Central Minnesota
Janesville 24 Units January, 1994 Multi-County HRA
Courtland 20 Units December, 1994
St. Clair 8 Units December, 1994
LAKE GRACE APARTMENTS 19 Units October. 1993 Carver County CDA
Acquisition Units
Chaska, MN
TRAIL EDGE APARTMENTS 50 Units November, 1992 FaribauIt HRA
Faribault, MN
BRIAR POND 196 Units November, 1991 Washington County
Oakdale, MN HRA
\ II. 1.1(;11"1" I:\IH S'I IH \1.
DEVELOPMENT NAME RESIDENTIAL UNITS COMPLETION OWNER
PAINTER'S BUILDING 57,000 sJ. December, 2003 International Union of
Little Canada Painters & Allied Trades
District Council 82
Building Corporation Inc.
HUGO LIGHT INDUSTRIAL 92,980 s.f. September, 2002 Hugo Land
BUILDING Development, LLC
Hugo, MN
RAMSEY SQUARE 41,755 s.f. August, 2000 Ramsey B&B, LLC
Ramsey, MN
CHUCK'S GRINDING 16,000 sI March, 1997 Hercules, LLC
Chanhassen, MN
\ III. '10\\ :\HO\IES &: CO:\DO\II:\1l \IS
DEVELOPMENT NAME
HOIGAARD VILLAGE
Harmony Vista
The Adagio
Medley Row
St. Louis Park, MN
CRESCENT TRACE
CONDOMINIUMS
RESIDENTIAL UNITS
COMPLETION
OWNER
24,363 sf For-sale Commercial February, 2008
74 For-sale Condominiums February, 2008
58 For-sale Condominiums Under Development
22 For-sale Townhomes Under Development
Union Land II, LLC
Webster Group, LLC
Medley Row, LLC
56 For-sale Condominiums December, 2006
10,062 sf For-sale Commercial
Union Land III, LLC
Minneapolis, MN
WYLDEWOOD CONDOMINIUMS 39 For-sale Condominiums December, 2005
Minnetonka, MN
RA VOUX RIDGE
Chaska, MN
35th & BLOOMINGTON
24 For-sale Townhomes
Under Construction
Wyldewood Condominiums
LLC
Carver County CDA
Minneapolis Urban League
8 Rental Townhomes
April, 2003
Minneapolis, MN
FERNDALE TOWNHOMES
Wayzata, MN
900 LINCOLN
Minneapolis, MN
6 For-sale Townhomes June, 1989
For Sale
25 For-sale Townhomes September, 1988
For Sale
1:\. \IISCELI. \:\EOI S
DEVELOPMENT NAME
GIANT'S RIDGE LODGE
Biwabik, MN
DUAL FACILITY FOR
JUVENILES
Crookston, MN
ANN BODLOVICK SR CENTER
Stillwater, MN
RESIDENTIAL UNITS
COMMERCIAL SQ. FT. COMPLETION
83 Units December, 1999
OWNER
Hotel Capital Group
XXIV
Northwest Minnesota
Multi-County HRA
9,000 s.f. February, 1997
6,042 s.f. September, 1991
Washington County
HRA
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RESUM~: GLM
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(hwu. Lakes Manao\:..uAdA Co.
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An Overview
Great Lakes Management Company (GLMC), formed in 1988, is a Minnesota business
corporation which provides real estate management and marketing services for real estate
partnerships and corporations as well as other property owners such as pension funds, bank:
trustees, condominium associations and private institutions. More specifically, GLMC has
developed extensive expertise in serving the management and marketing needs of a diverse
group of commercial property owners and developers including private investors, institutional
investors and not-for-profit organizations.
GLMC is presently managing a portfolio of approximately 600,000 square feet of suburban
office, light industrial and retail space along with 26 properties and approximately 3,500
apartment and condominium units. The majority of the properties in the portfolio have been new
construction where GLMC was responsible for the initial lease-up of the property and transition
from construction to operations.
Owner Services
GLMC offers professional property marketing and management services to owners of
commercial, investment-grade multifamily residential, retail and office properties.
Superior Service through a Team Approach
A consistently superior level of service is provided to our clients through a team approach to
management. The skills and experience of highly trained professionals, representing a broad
range of real estate disciplines are coordinated and applied to the specific marketing and
management needs of the property.
Communications
To assure that our efforts are meeting the needs and expectations of the property owner, our
procedures include regularly scheduled communications between all parties. These
communications include weekly marketing updates, monthly income statements and variance
reports as well as regular meetings and site inspections.
A Tailored Approach
Systems and procedures are designed with the flexibility to meet the specific needs of a given
property while conforming to the client's financial and management reporting requirements. A
creative approach to management and marketing means Great Lakes Management tailors its
services to each client's individual needs.
Marketing
Marketing expertise at Great Lakes Management spans all stages of a property's evolution from
the pre-marketing of new construction to maintaining desired occupancy levels at established
projects. A thorough and project-specific marketing plan is prepared that defines the realities of
the market, appropriate marketing techniques and materials to be used, staffmg requirements and
the budget which will most effectively support the project's marketing objectives.
Resident Services
Recognizing that it is through consistently superior service that property residents, retail tenants
and commercial tenants are satisfied, GLMC strives to maintain the utmost in tenant satisfaction
while providing a positive living and/or working environment. To this end, GLMC has invested
in concierge and corporate services as well as researching the benefits of new technology for
each asset.
The Physical Asset
Maintaining and upgrading the physical asset is important as well. Great Lakes Management
performs a maintenance checklist on each rental home and commercial space prior to a new
tenant taking occupancy. In addition, a preventative maintenance team works with the managers
of each property to ensure smooth on-going operation of each asset.
The People Make the Difference
GLMC has a staff of over 250 employees engaged in all phases of residential, retail and
commercial management. While employees work in specific positions including management,
marketing and leasing, maintenance, painting, housekeeping and caretaking, administration,
accounting, services coordination, data entry and financial analysis, they understand that only
when working as a team will they be successful.
Customer Service Philosophy
Our customer service policies and procedures flow out of a philosophy that can be stated as
follows:
. We believe that effective customer service is grounded in a commitment to knowing the
customer and their needs, wants and desires.
. We believe that for customer service to be effective it must remain relevant to the changing
needs of the customers being served.
. We recognize that superior quality customer service doesn't just happen, it is planned. We
are, therefore, very intentional about employee training that stresses the consistent nurturing
of a "Customer Minded Orientation."
. Our customer service philosophy is characterized by our commitment to "answer the phone
when it rings" and to take ownership of the call until it is 100% satisfied. If it is a question
we answer it, if it is a problem we resolve it and if it is an opportunity we seize on it.
KhY PERSONNEL
Great Lakes Management Company is controlled by a Board of Directors comprised of the
stockholders of the company. The company is staffed by an energetic and creative group of
individuals, each of whom brings a wealth of experience to their area of responsibility.
The organizational approach to be used at a specific property is determined during the
completion of the management plan prior to Great Lakes Management (GLMC) stepping in to
commence the management of the property.
A Property Manager is in charge of supervising the on-site personnel. The Property Manager is
the key link to GLMC's administrative office. Senior GLMC staff have regular and consistent
contact with on-site personnel for purposes of training and the implementation and monitoring of
the management and marketing plans.
The Property Manager is responsible for adhering to the owner-approved budget and for the
achievement of the goals and objectives outlined in the management plan. Accounting and
reporting functions are administered at GLMC's main office through a centralized accounting
department. Cross-training of on-site employees is implemented so that each maintains a "big
picture" view of the goal ofthe property. This has been a key element in the success ofGLMC's
approach to property management.
Key senior personnel and positions are described herein:
Michael B. Pagh
President
moaehlallrreatlakesmc.com
Mr. Pagh oversees and coordinates all aspects of marketing, management and administration for
Great Lakes Management. Mr. Pagh is a graduate of the University of Minnesota with a B. A. in
Economics and Business Administration and has been actively involved in Twin Cities-based
investment real estate businesses for the past 26 years. Mr. Pagh's industry background includes 10
years of full-time commercial mortgage banking work for regional and national financial
institutions. Mr. Pagh is a member of the National Association of Industrial and Office Parks. Mr.
Pagh is a licensed real estate broker and has recently served as Chairman of the Board of Directors
ofthe Minnesota Multi-Housing Association.
Vicky M. Dwyer
Corporate Controller
vdwver@lrreatlakesmc.com
As Corporate Controller, Ms. Dwyer is responsible for the administration of financial reporting for
all properties under management by Great Lakes. Ms. Dwyer received a Bachelor of Science in
Business Administration degree from Mankato State University where she majored in both
Accounting and Finance. Prior to joining GLMC, Ms. Dwyer held several financial and accounting
positions for Twin Cities-based real estate develupwent and property management firms. Ms.
Dwyer's responsibilities also include Human Resources administration and oversight.
Mary Gamec
Vice President-Commercial Division
mQamecla),lITeatlakesmc.com
As Vice President-Commercial Division, Mary is responsible for the day-to-day management and
oversight of Great Lakes Management's commercial portfolio. She earned a CPM designation from
the Institute of Real Estate Management (IREM) and is a licensed real estate broker in the state of
Minnesota. Ms. Gamec has over 25 years of hands-on experience in the management and
marketing of office, retail and industrial properties. Over the course of her career, she has worked
for several national property marketing and management firms. She is also an active member of the
National Association of Industrial and Office Parks having held numerous committee positions
within the local chapter.
Robin Barrett
Director of Senior Housing
rbarrettla2l!Teatlakesmc.com
As Director of Senior Housing, Ms. Barrett is responsible for overseeing the marketing and
management of GLMC's portfolio of senior rental housing units. In addition, she oversees the
establishment of appropriate human service programs and initiatives at all properties under the
management of Great Lakes Management. Ms. Barrett has over 20 years of experience in senior
housing management and service coordination. Over the course of her career, Robin has been
involved in new construction and with companies having national portfolios. Ms. Barrett is a
member of MHHA, MHA and the National Association of Housing and Redevelvpulent
Authorities.
Kenneth Perusek
Director of Operations
)merusekla2l!Teatlakesmc.com
As Director of Operations, Mr. Perusek is responsible for overseeing the fmancial and
operational issues of the general occupancy and condominium multifamily portfolio. Mr.
Perusek holds a Bachelor of Science in Business Administration from John Carroll University
and has over twenty-five years of experience in hospitality and multi-family housing.
MANAGEMENT PORTFOLIO
At the present time, Great Lakes Management Company is leasing and managing on a fee basis a
diverse group of senior housing developments owned by a variety of Housing and
Redevelopment Authorities and Community Development Agencies. Great Lakes Management
is currently marketing and managing properties on a fee basis for a diverse group of building
owners, institutional investors and governmental agencies. A representative sample of our Senior
Housing properties follow:
Senior Housing Developments
St. Therese Southwest
Hopkins, MN
The Towers of St. Therese Southwest is a
227-unit senior high-rise located in
suburban Hopkins. The property is
owned by a non-profit corporation and
has been managed by Great Lakes
Management since 1992. It features
amenities such as a dining room with
meals served daily, beauty salon, library,
party room, craft room and a chapel.
Designed for seniors able to live
independently, health care services are on
a "fee for service" basis. This property
is able to accommodate a wide range of
personal and health care needs and has
been operated at full occupancy with a waiting list for many years.
An 86-unit Assisted Living facility called The Terraces of St. Therese Southwest offers assisted
care and includes a 25-unit memory care wing. In whole, this campus approach to senior
housing is an example of the continuim of care that allows seniors to age in place.
Savannah Oaks Apartments
Ramsey, MN
Savannah Oaks is a 50-unit senior rental apartment
community owned the Anoka County HRA. The
project features large and spacious community
spaces, underground parking and individual
washers and dryers. Savannah Oaks also serves an
active group of seniors with an average age of 71.
The Willows of Ham Lake
Ham Lake, MN
The Willows of Ham Lake was
completed in April 1997. It was 100%
occupied on day one and has maintained
this stellar performance ever since. All
budget projections for the property have
been met. It is situated on the beautiful
Majestic Oaks Golf Course in Ham Lake
and features numerous community rooms
and common area amenities. This
property is owned by the Anoka County
HRA.
Wild River Apartment and Townhomes
Sandstone, MN
Located in the woods of central Minnesota,
Wild River features 36 units of senior and 36
units of multifamily housing. This project
features a dining room with catering kitchen,
guest suite, heated parking, card and craft
rooms and library. It also features
underground parking and the townhomes
offer private, detached parking. All homes
feature central air and heat as well as full-size
washers and dryers.
Broadway Court
Robbinsdale, MN
This mixed use property features 57 apartment homes
for seniors 55 or better along with 6,400 SF of retail
space.
This property is owned by the Robbinsdale EDA.
Amberfield Place
South Central, MN
Amberfield Place consists of 300
units spread over six counties in
South Central Minnesota.
Owned by the South Central MN
HRA, Amberfield Place consists of
a blend of multifamily apartments
and housing for seniors age 55 or
better.
Chauncey Barett Gardens I and II
Centerville, MN
This community features 47
apartments in two separate buildings
for seniors 55 or better.
Our client is the Anoka County
HRA.
The project is owned by the Scott County
CDA.
The Hamilton
Savage,MN
The Hamilton features 42 apartments for
seniors 55 or better, a library, guest suite
and a billiards room.
Lincoln Place
Eveleth, MN
This quaint apartment community on northern
Minnesota features 30 apartment homes for
seniors 55 and better along with a community
room, library and guest suite.
The project is owned by the Eveleth EDA.
Monroe Village
Minneapolis, MN
Owned by the Volunteers of America (of Minnesota), Monroe Village features 51 apartment
homes for seniors 55 and better along with 6,200 SF of retail space on the first level.
~
Great Lakes Manae,w.uwJ: Co.
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Great Lakes Management Co. also manages:
Multifamily Housing
. Laurel Village
Minneapolis, MN
Client: The Travelers
. Arbor Glen Apartments
Maple Grove, MN
Client: MG Longstreet, LLC
. Hazelton Apartments
Edina, MN
Client: Edina A & P, LLC
. Harmony Vista
St. Louis Park, MN
Client: Union Land, LLC
. The Camerata (under development)
St. Louis Park, MN
Client: Camerata, LLC
Senior Housing
. Northridge Court
Shakopee,MN
Client: Scott County CDA
. Oaks of Lake George
Oak Grove, MN
Client: Anoka County HRA
. Orono Woods
Orono, MN
Client: Volunteers of America
of Minnesota, LLC
Senior Housing
. Phillip Square
New Prague, MN
Client: Scott County CDA
. River City Centre
Shakopee,MN
Client: Scott County CDA
Student Housing
. University Village
Minneapolis, MN
Client: J. A. Wedum Foundation
. Keeler Apartments
Minneapolis, MN
Client: J. A. Wedum Foundation
Condominiums
. The Wyldewood
Minnetonka, MN
Client: The Wyldewood
Condominium Association
RESUME: MHP
MILLER HANSON PARTNERS
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ARCHITECTS + PLANNERS
Design Team Leaders
Wilt Berger
President and Partner
Celebrating 35 years with Miller Hanson Partners, Wilt assures that the
firm's commitment to design excellence is matched by its dedication to
providing clients with exemplary professional services in construction
document production, field observation and project close-out. Now
more than ever, he sees creating better places for people to live as the
best opportunity to strengthen our neighborhoods and communities.
;", Kent Simon, AlA
Vice President and Partner
~
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With more than 25 years of design experience, Kent has developed a
commitment to the creation of quality senior housing environments.
He emphatically believes that the design of housing not only plays a
significant role in a person's well-being, but also keeps residents active
and involved with family and community. Kent strives to respond to
the diverse values of residents, staff, and community while at the same
time remaining accountable to the owner's budget limitations. The
comprehensive portfolio of projects he has overseen since joining Miller
Hanson Partners in 1980 is a testament to the success of these values.
Michael Nelson, AlA
Associate & Project Manager
J
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Professionally and personally, Michael is committed to creating better-
planned urban environments, making cities a better place to live.
Informed by extensive experience, this commitment is integral to his
work as project manager on award-winning developments such as
Gramercy Club of Edina condominiums and Heritage Commons senior
housing for the Minneapolis Public Housing Authority.
1201 HAWTHORNE AVENUE MINNEAPOLIS. MN 55403 T 612.332.5420 F 612.332.5425 WWW.MlllERHANSON.COM
I
DEVELOPMENT 'l'EAM MEMBERS
DEVELOPMENT TEAM
I
Buildini! Owner
Scott County Community Development Agency
323 South Naumkeag
Shakopee, MN 55379-1652
. William I. Jaffa
Proiect Coordinator
Dunbar Development Corporation
5000 Glenwood Avenue, Suite 200
Minneapolis, MN 55422
. Frank Dunbar
Architect
Miller Hanson Partners
1201 Hawthorne Avenue
Minneapolis, MN 55403
. Wilt Berger
Contractor
To be determined
Manaeement Comoany
Great Lakes Management Company
5000 Glenwood Avenue, Suite 150
Golden Valley, MN 55422
. Michael Pagh
Attorney
Leonard Street & Deinhard
150 South 5th Street, Suite 2300
Minneapolis, MN 55402
. Barbara Portwood
Accountant
Deloitte & Touche
120 South Sixth Street
Minneapolis, MN 55402
. Jim Weichert
Financial Advisor
Springsted, Inc.
380 Jackson Street, Suite 300
St. Paul, MN 55101-2887
. Kathy Aho
Title Comoany
Commercial Partners Title, LLC
200 South Sixth Street, Suite 1300
Minneapolis, MN 55402
. Mark Goodman
I
4646 Dakota Street S.E.
Prior Lake, MN 55372-1714
1. How does the proposal provide for structured public parking as specified in the
RFP? Would it be possible to include a three story parking structure behind the
building or incorporate it with the building design itself? We did not propose
structured parking as we have experienced a reluctance for structured parking
to be market acceptable for retail / commercial in downtown areas. We would
like to have further discussion with the City on this topic. Also we would need a
funding source to be identified for public parking.
2. It would appear that the site plan does not reflect future planned road
improvements, turning lanes, etc). How is the proposed development impacted
by the planned CR 21 / Main Avenue intersection (allowing only right in and right
out locations)? We are confident that through the dialogue of the development
process that we can adopt a plan to conform to the required road and
intersection improvements.
3. Has thought been given in respect to the timing of road improvements and the
construction of the building? The construction of the building will be developed
in the proper sequence approved by the City and CDA.
4. What are the estimated land costs? We were unable to establish a land cost at
this time. The cost of land should be based on the type of use that can be built
on the property and the cost to get the site to a buildable state for the project.
Who will be responsible for these costs? We will be proposing a Joint Powers
Agreement to work with the City for land acquisition.
5. Since the CDA would be the owner of the building, does this imply that the
residential and retail components would be tax exempt? By statute the CDA is
required to pay real estate taxes on the retail / commercial. It would be market
rate taxes on the retail / commercial space and on the housing it would be
payment in lieu of taxes (P.I.L.O.T.)
6. Please provide more detailed information regarding the anticipated financing for
both the residential and retail components. The financing structure we would
anticipate would be taxable bonds for the retail / commercial component and
tax exempt bonds backed by the City, CDA and County for the residential
portion.
7. Is a consultant being used to do the retail market analysis? What is the status of
the retail market analysis? At this time, we did not secure a market analysis as it
www.cityofpriorlake.com
Phone 952.447.9800 / Fax 952.447.4245
I
is our sense that we would not receive a favorable analysis in light of the
current economic conditions.
8. Do you have any preliminary findings regarding the market demand in downtown
Prior Lake? Currently we are finding that the market in downtown Prior Lake
is soft at this time.
9. Does the CDA intend to use eminent domain if necessary? If yes, will the CDA
be responsible for this action, or will the CDA request that the City conduct this
process? We would like to have future discussion on this topic. In the past, the
CDA has used eminent domain in other communities.
10. Is there strategy for assembling the necessary property? We would like to
determine these strategies for land assembling with the City under a Joint
Powers Agreement.
11. The proposal indicates the need to confirm that all environmental conditions are
resolved prior to the development proposal proceeding. Will the CDA or City be
responsible for this and when? Environmental conditions would be handled
under the Joint Powers Agreement.
12. In the proposal a reference is made to "clearly understanding the City's
entitlement process", what is meant by "entitlement process"? The entitlement
process simply refers to the approval process at the City or any other
governmental agency that would require a permit to proceed with the
development such as Watershed District, Met Council, etc.
13. Is the retail component of the project condo or lease, or a combination thereof?
In the past we have condominiamized the retail / commercial and residential to
provide for more flexibility in the event of a future sale. However it is
contemplated that the space would be leased initially.
14. Are there projected lease rates for the end-use/ tenants ofthe commercial space?
We need to determine the type of lease rates that can be generated in the
market. Once a plan is established it can be taken to the market to determine
the actual lease rates that can be secured.
15. In respect to the reference of service related businesses, what is the projection for
square footage devoted to service and to retail goods? We cannot distinguish
between square footage. Basically we would be lookingfor tenants, service or
retail that would be able to pay the rent levels necessary to make the project
economically feasible.
16. More detail would be helpful in respect to the Master Tenant arrangement, i.e.:
Who would the Master tenant be (as an example), what would happen if the
Master tenant was unable to perform with regards to absorption / lease-up? At
this time, we would not be able to describe the profile of the Master Tenant.
2
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17. What would the proposed rate be for the Master Tenant? At this time we would
be unable to describe the proposed rate of the Master Tenant.
18. What percentage of the space within the building needs to be pre-leased? In light
of today's market conditions we are hearing that commercial banks are
requiring close to 70% pre-leased in retail / commercial before financing could
be secure.
19. How does the CDA propose to finance the retail portion ofthe project. Taxable
bonds.
20. What is the proposed form and level of municipal financing for this project? (i.e.:
TIP). The form and level of TIF funds cannot be determined at this time.
However we would contemplate TIF funds being usedfor demolition, site
cleanup if any, streetscape and streetscape enhancements and potential
infrastructure modifications.
21. What would municipal financing be used for? Refer to response in question 20
plus if additional parking is needed in the area.
22. More details regarding the sources (and uses) of an anticipated structure of
financing for the proposed residential and retail uses would be helpful. We will
need to bring on financial advisors to determine a more detailed financial
structure once a defined concept is agreed upon in the Joint Powers Agreement.
23. How and when does the CDA propose to handle the contingency factor for the
retail so the project is neither unduly delayed, nor vacant for an extended period
of time. This question can not be answered at this time.
24. What is the plan for using community outreach and public relations to engage,
solicit input from, and inform the community about the redevelopment project?
The CDA is receptive to neighborhood meetings and the input of the community
to make sure the development meets the goals and objectives of the community.
25. Is it viable to incorporate a portion of the residential component as non-senior
housing to include a mix of residents within the building? Our experience would
suggest that combining senior and non-senior residents would not lend itself to
a successful development. The CDA has built senior and non-senior projects
but have done so in separate developments.
26. Would the CDA be open to making modifications to the proposed architecture of
the building to incorporate more elements of the Prior Lake Downtown Design
Guidelines? The CDA would be more than willing to work with the City of
Prior Lake to incorporate Downtown Development Guidelines provided that
everything falls within an acceptable and feasible financial structure.
3
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27. It should be noted that in the beginning of the proposal it refers to the southeast
comer of Eagle Creek Avenue and Main Avenue. The redevelopment area in the
RFP does not include this area. From other illustrations and references in the
proposal, it is evident that the development is proposed for the southeast comer of
the Block 4 (which is actually the northeast comer of Eagle Creek and Main
Avenue). We concur.
4
PROSPECTIVE DEVELOPERS I DOWNTOWN REDEVELOPMENT
FIRM First Last Name ADDRESS PHONE
Name CITY ST ZIP FAX E-MAIL RE!
AMCON Construction James Winkels 1715 Yankee Doodle Road, Suite 20C Eagan MN 55121 651.379.9090 651.379.9091 custservtB>amconconstruction.com Wayzata Executive Plaza
Bancor Group Paul Robinson 1521 94th Lane N.E. Minneapolis MN 55449 763.792.8974 oaulftbancorarol_I'::':t::1]!1
Bancor Group David Newman 1521 94th Lane N.E. Minneapolis MN 55449 763.792.8974
Brighton Development Peggy Lucas 614 N 1st SI., # 100 Minneapolis MN 55401 612.332.5664 brightondevelopment.com Park Avenue Lofts (Mpls); SI. i
Corporation
RMF Group Ross Fefercom 1221 W. Lake SI. #209 Minneapolis MN 55408 612.824.7000 612.824.7077 [Qssfjfi)rmfarouo.co'!l
CSM Corporation Arne Cook 500 Washington Ave. S, Suite 3000 Minneapolis MN 55415 612.395.7000 inquiries @csmcorp.net
Dominium, Inc. Paul Sween 2355 Polaris Lane Plymouth MN 55447 763.354.5500 763.354.5579 Dsween(fJ)dominiuminc.cqrr1 Carieton Place Lofts (SI. Paul:
Doran Companies Kelly Doran 7803 Glenroy Rd., Ste 200 Bloomington MN 55439 952.288.2002 952.288.2001 kellvll1>dorancomoanies.com Silver Lake Village (SI. Anthon
Duke Reaity Pat Mascia 1600 Utica Avenue South, Suite 250 Minneapolis MN 55416 952.543.2900 952.543.2999 oat.mascia@dukerealtv.com West End (1-394 & Hwy 100 - i
Corporation
Dunbar Development Frank Dunbar 5000 Glenwood Avenue, Suite 200 Minneapolis MN 55422 763.377.7090 frank@dundev.com
Interstate Partners Gregory Miller 860 Blue Gentian Road, Suite 175 Eagan MN 55121 651.406.8050 651.406.8628 www.interstateoartners.com Shops at Grand Oak (Eagan, i
JLB Companies Jeffery Larson 1380 Corporate Center Curve Eagan MN 55121 651.646.7848 651.646.8947 Bluffs of Elk River; Jackson pa
MetroPlains Lawrence Olson 1600 University Ave. Ste. 212 SI. Paul MN 55104 651.646.7848 lolsontmme.!amlains_com
MetroPlains Vern Hanson 1600 University Ave. Ste. 212 SI. Paul MN 55104 651.646.7848 Ihanson@metroolains.com
OPUS Northwest LLC David Menke 10350 Bren Road West, PO Box Minneapolis MN 55459 952.656.4444 dave.menkel6>oousnw.com
59110
OPUS Northwest LLC Tim Murnane 10350 Bren Road West, PO Box Minneapolis MN 55459 952.656.4568 tim.mumane@oousmw.com Arbor Lakes (Maple Grove, Mi
59110 Nicollet Commons (Bumsville, ,
Orrin Thompson Home Cory Lepper 935 E. Wayzata Blvd Wayzata MN 55391 952.473.0993 952.476.0194
Pratt Ordway Propertie Len Pratt 3555 Willow Lake Blvd Ste 200 SI. Paul MN 55110 651.631.8059 651.631.2408 www.orattordwav.com Siver Lake Village (SI. Anthoni
Robert Muir Company Rick Schroeder 7650 Edinborough Way, #375 Edina MN 55435 952.857.2800 952.857.2801 rschroeder@rmuir.com Siver Lake Village (SI. Anthoni
Robert Muir Company Erich Scneider 7650 Edinborough Way, #375 Edina MN 55435 952.857.2800 eschneider .com
Schafer Richardson, Bradley Schafer 615 First Ave NE, 500 Banks Building Minneapolis MN 55413 612.371.3000 612.359.5858 bschaeferlfi)sr-re.com Phoenix on the River (Mineapc
Inc.
Schatzlein & Bill Schatzlein 10306 Morris Road Bloomington MN 55437 612.835.5498 612.835.4586
Assocaites
Stonehenge USA Dave Carland 601Carlson Pky, Ste LL15 Wayzata MN 55305 952.288.2202 952.473.2206 dcarland/li)stonehenae-usa .com One Deephaven (Deephaven:
United Properties Bill Katter 3500 Averican Bouievard West, Ste Minneapolis MN 55431 952.837.8525 952.835.8870 wkatterlfi)uorooerties.com Centennial Lakes (Edina, MN)
200
Weiss Development Bob Weiss 175 Olde Half Day Road # 220 Lincolnshire IL 60069 847.793.2414 847.793.2415 weissdev(fJ)weissdevelooment.com Rivers Edge (Lincolnshire, IL)
Corp
Welsh Companies Ted Carlson 7807 Creekridge Circle Minneapolis MN 55439 952.897.7700 952.897.7704 tcar1son@welshco.com
FIRM First Last Name ADDRESS PHONE
Name CITY ST ZIP FAX E-MAIL RE~
City Center Retail, LLC Eric Anderson 800 Washington Ave. N. Ste 690 Minneapolis MN 55401 612.339.6400 612.339.6408 ericl6>citvcenterretail.com Cleveland Circle (SI. Paul, MN]
Lander Group Michael Lander 1302 2nd St NE #200 Minneapolis MN 55413 612.250.6655 612.825.8146 michael(Q)landerarouD.com West River Commons (Mpls, M
Sherman Associates Rob Kost 223 Pari< Ave S, Ste 201 Minneapolis MN 55415 612.604.0869 612.332.8119 rkost/B)sherman-assoc:iates.com Zenith (Mpls, MN); 311 Superi;
TOLD Development Gary Dreher Two Carlson Parkway, Ste 355 Plymouth MN 55447 952.278.9000 952.278.7574 odreher(ii)toldmn.com Excelsior & Grand (SI. Louis P;
Haugland Company Gene Haugland 5850 Opus Pari<way, Ste 108 Minneapolis MN 55343 952.936.9225 952.936.9003 ahauolandQ'i)huualandco.corp SW Comer of 50th & France {E
Cornerstone Group Colleen Carey 7610 Lyndale Ave S Ste 200 Richfield MN 55439 952.942.6900 952.942.6902 cC".arevlfl)thecornerstonearouo.com Mari<etplace Lofts (Hopkins, Mi
Solomon Real Estate Jay Scott 12300 Singletree Ln, Ste 200 Eden Prairie MN 55344 952.852.2340 952.974.9300 iavscotttfj)solomom.com Calhoun Square (Mpls, MN); E
Group
JMW Development, Mark Johnson 5402 Pari<dale Dr., Ste 280 Minneapolis MN 55416 952.546.2051 952.546.2049 marktfi:limwdevelooment.com Pinehurst Bldg I NE Corner of!
LLC
Sweeney Development Brian Sweeney 289 Fifth SI. E, Ste 101 SI. Paul MN 55101 612.817.3266 651.690.1083 brian(lJ)sweenevdevelooment.net Farmers Mari<et Lofts (SI. PaUl
Hunt Associates, LLC Daniel Hunt 24 University Ave NE, Ste 150 Minneapolis MN 55413 612.630.2448 612.746.0099 ~hl.Jnt(ii)huntassociatesllc.com Village at SI. Anthony Falls (NI
Exeter Realty Rob Stolpestad 3550 Wells Fargo Place, 30 E 7th SI. SI. Paul MN 55101 651.294.2441 651.294.2458 istoloestad/ll)exeterrealtv.com Grand Place, and Victoria Cro!
Ryan Companies US Eric Anderson 50 South 10th St, Suite 300 Minneapolis MN 55403 612.492.4000 612.492.3000 eric.andersonQl)rvancomoanies.com Midtown Exchange (Mpls, MN)
Kraus Anderson John Campobasso 525 S 8th St Minneapolis MN 55404612.335.2711 iohn .camoobassotfi)k-a-c.com
Rock Creek Builders Dan Schaefer 16180 Hastings Ave, Ste 301 Prior Lake MN 55372 952.447.4111 danlfi)rockcreekhomes.corp Rock Creek Building (Prior Lak
Wensmann Herb Wensmann 1895 Plaza Dr #200 Eagan MN 55122 651.406.4400 brudoloh((J)wensmann.coD'l
Kevin Johns 2150 189th SI. E Jordan MN 55352 952.826.9952
Scott County CDA Bill Jaffa 323 Naumkeag SI. S. Shakopee MN 55379 952.402.9022 952.496.2852 cda-infolfi)scottcda.orq River City Centre (Shakopee, i
Main Street Property Craig Semmelmeyer 985 Moraga Rd., Ste 202 Lafayette CA 94549 925.299.8170 x-; 925.284.2331 !<J:l!igililMSPSinc.com 12th & Macdonald (Richmond, I
Services, Inc.
Steiner Associates Jaromir Steiner 4016 Townsfair Way, Suite 201 Columbus OH 43219 614.414.7300 614.414.7311 Easton Town Ctr (Columbus, 6
Poag & McEwan Roy Vice 6410 Poplar Ave Suite 850 Memphis TN 38119 901.761.7604 901.761.5325 rvice@om-lifestvle.com Highland Row (Memphis, TN)
PUBLICATIONS
Minnesota R.E JournalJay
Kodytek
952.405.7781
ikor:lvt~l(tfi)reiQumals.com
FIRM First Last Name ADDRESS PHONE
Name CITY ST ZIP FAX E-MAIL RE!
Mpls-St. Paul Bus. 120 S. 6th St., Ste 900 Minneapolis MN 55402 612.288.2134 612.288.2121
Journal
Midwest Real Estate Mark Menzies 312.644.4610
News
League of Minnesota HR-CitvAdsll'lllmc.oro
Cities
Finance & Commerce 730 2nd Ave S. Minneapolis MN 55402 612.333.4244 612.333.3243 mediaarouotlJ)fjnance-commerce.com
I
Memo
To:
From:
City Council; Economic Development Advisory Committee - Downtown
Redevelopment Subcommittee
Paul Snook, Economic Development Director
Date:
9/24/08
Re:
Why developers did not submit proposals for downtown redevelopment
In follow-up to publishing and distributing the Request for Proposals for Downtown
Redevelopment, staff contacted developers on the developer list (attached) for the Downtown
Redevelopment RFP. The intent of the follow-up was to answer developer questions, gauge
interest in the request, and determine which developers would submit proposals.
As you know, one developer, the Scott County Community Development Agency in
partnership with Dunbar Development, submitted a proposal. In conversing with other
developers in great detail, staff assembled the following comments and some reasons for not
submitting a proposal at this time (the comments are categorized).
Sluooish economv: State of the residential and retail markets
· Being cautious and very selective due to the economy
· Difficult time for residential and retail markets
· Not at this time; market not good; waiting for tumaround
· Developers (including those doing mixed use) are being cautious at this time due to
the state of the residential and retail markets
· Would be interested in submitting proposal in future, when housing and retail markets
make a rebound
· Retail has pulled back in expanding
· Housing is "in the tank"
· Market is tough right now
· New start-ups are opting for established markets I areas with higher traffic counts and
a larger market (such as Bloomington)
· Real estate investors are currently pulling back on new construction since a better deal
could be had on existing real estate
· Example of local market - anticipate that The Wilds will have 100 foreclosures by
year's end; not good for the local economy
I
Future limited access of Main Ave / Hwv 21 (riaht-in / rioht out)
. Future RI/RO at Main & 21 is a major drawback; Arcadia is too far from the 13/21
intersection to be feasible for redevelopment
. Traffic counts and visibility for retailers are and will be at 13/21 in the foreseeable
future.
Develooment financino market
· Tight credit market
Other
· Firm is resource constrained at this time
. Currently busy with existing projects / can't take on another at this time
. Have hands full with other projects / have a lot on plate right now and can't devote
resources necessary to pursue Prior Lake project
. Too busy with other existing projects; won't be able to submit now
. Currently trying to put fires out / salvage other projects
· City did a fine job on RFP; very thorough
. City has done the right things to take DT redevelopment to the next level i.e. new City
Hall, Police Station, Rock Creek Building, etc.
· Appreciate follow-up on RFP
. Suggestion: re-issue the redevelopment RFP after market rebounds
. Downtown redevelopment needs to land a number of regional and national retailers
such as Panera's, Starbucks, and the like in order to make redevelopment work (they
are willing and able to pay new construction lease rates, whereas local/existing
businesses are likely not willing to pay lease rates commanded by new construction)
.P~e 2
I
.
EHLERS
& ASSOCIATES INC
0 To:
From:
:E Date:
W
:E Subject:
Paul Snook, City of Prior Lake
Rebecca Kurtz, Ehlers & Associates
September 22, 2008
Downtown Redevelopment Proposal
As a follow-up to the City Council work session on August 18, I wanted to share some thoughts and
comments.
Redevelopment is challenging even when the market is good, and the City has spent a lot of time and thought
in developing its 2030 Vision. While the City only received one proposal for the downtown redevelopment,
the City also needs to be comfortable that its vision and goals are being met as they move forward. At the time
a proposal is accepted, they are entering into a partnership, and they need to be comfortable with the
relationship that is being formed and that their vision and goals for both housing and commercial
redevelopment will be met.
The City has been proactive with its downtown redevelopment efforts, and is in a good position to move
forward when the market rebounds. The City's proactive approach with the development of the City Hall and
police facility, along with the redevelopment of the downtown buildings that has occurred and the
development of new housing units shows a commitment from the City. Additionally, the City's acquisition of
land also puts the City in a favorable position for redevelopment when the market changes.
If the City believes that the Scott County CDA proposal meets the goals and the 2030 Vision, I believe the
CDA would be able to develop a successful project. However, while the City only received a proposal from
the CDA, I do not believe that accepting the proposal is the only option for the City, if they choose not to
move forward with redevelopment at this time.
The following are a few questions for the City to consider as it evaluates the redevelopment proposal:
. The proposal includes 54 senior apartment units. Over the past several years the City has
developed senior housing in the downtown area. Does the City want additional senior housing in
the downtown, or is it looking for housing that would provide a mix of ages?
. The proposal also includes 11,225 square feet of service retail. Does this mix of housing and retail
meet the goals of the City? What mix would the City like to see with retail versus housing?
. Will seniors be a big enough base to support the retail goals of the City?
. The City has discussed the development of a parking structure. The CDA proposal does not
include the parking structure, and in the discussions, they believe that it is not necessary. During
the discussion, it was stated that customers do not want to park at a higher level and walk down
stairs to shopping opportunities. It was also suggested that employees may need to park at a
different location in order to provide adequate parking for customers. Is there adequate parking in
LEADERS IN PUBLIC FINANCE
t
3060 Centre Pointe Drive
Roseville, MN 55113-1105
Phone: 651-697-8516 Fax: 651-697-8555
rku rtz@ehlers-inc.com
I
the downtown area to support employees and customers with at-grade parking? Are there other
areas that could be used for employee parking if a structure was not built?
. Is it important to the City to have a redevelopment proposal that accommodates both Blocks or a
greater area ofthe downtown?
· The CDA would pay a PILOT on the housing portion of the development. This would most likely
reduce the costs and lower the rents for the housing units. However, it also would most likely
eliminate the City's ability to create and use tax increment financing. While the CDA project may
not need TIP assistance if the costs are lower, the project would not generate TIP to use in
redeveloping other areas of the downtown or assisting with the parking concerns.
· The CDA has limited resources, like all government entities, and may not have the financial
resources to assist with the redevelopment costs that private development entities may have.
Therefore, the City may need to absorb more of the development costs and/or provide more
assistance, such as waiving fees.
Several options were outlined in the Council work session memo. The following summaries those options:
· The Council may accept the Scott County CDA proposal and move forward with the
redevelopment.
. The Council may wait to take action after the market changes and re-send the RFP. The market
will rebound; however, we do not know the timing ofthe market change. Therefore, if the Council
chooses to wait for the market, it may be 6 months or it may be a couple years before the economy
rebounds.
· The Council may identify specific developers that have projects that the City believes are similar
to their goals and speak with them about future opportunities. Would they be interested in the
redevelopment when the market changes? Were there specific items in the RFP that were barriers
for them submitting a proposal at this time; and if so, could those items be modified to
accommodate both the City and developer?
. The Council may choose to do nothing at this time.
Please do not hesitate to contact me if you have questions.