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11-18-96 agenda
CITY OF RICHFIELD, MINNESOTA MONDAY, NOVEMBER 18, 1996 REGULAR HOUSING AND REDEVELOPMENT AUTHORITY MEETING COUNCIL CHAMBERS 7:00 P.M. AGENDA CALL TO ORDER APPROVAL OF MINUTES OF (1) REGULAR HRA MEETING OF OCTOBER 21, 1996 AND (2) SPECIAL HRA MEETING OF OCTOBER 28, 1996 OATH OF OFFICE TO HRA COMMISSIONER JOAN HELMBERGER 2. OPPORTUNITY FOR CITIZENS TO ADDRESS THE HRA ON ITEMS NOT ON THE AGENDA 3. CONSIDERATION OF SELECTION OF CSM CORPORATION AS DEVELOPMENT CONSULTANT AND AUTHORIZE STAFF TO DEVELOP SCOPE OF SERVICE AND SUPPORTING AGREEMENT FOR RICHFIELD LAKE AREA HRA LETTER NO. 73 4. PUBLIC HEARING AND CONSIDERATION OF RESOLUTION AUTHORIZING SALE OF REAL PROPERTY AT 1700 WEST 78TH STREET TO THE LIMITED, INC. TO PROVIDE FOR CONSTRUCTION OF GALYAN'S TRADING COMPANY RETAIL PROJECT IN NORTHWEST QUADRANT OF INTERSTATE HIGHWAYS 35W AND 494 HRA LETTER NO. 74 5. PUBLIC HEARING AND CONSIDERATION OF RESOLUTION AUTHORIZING SALE OF 7625 EMERSON AVENUE TO ROCKPORT HOMES, INC. FOR SINGLE FAMILY HOME DEVELOPMENT HRA LETTER NO. 75 6. CONSIDERATION OF ADJUSTMENT OF PAYMENT STANDARDS FOR SECTION 8 VOUCHER PROGRAM 0 HRA LETTER NO. 76 i 7. PRESENTATION BY BRUCE NORDQUIST, HOUSING AND REDEVELOPMENT MANAGER, ON HOUSING AND COMMUNITY DEVELOPMENT TRENDS AT STATE AND NATIONAL LEVEL HRA LETTER NO. 77 8. PUBLIC HEARING AND CONSIDERATION OF RESOLUTIONS ADOPTING 1997 HRA PROPOSED PROPERTY TAX LEVY AND BUDGET HRA LETTER NO. 78 9. EXECUTIVE DIRECTOR REPORT 10. CLAIMS AND PAYROLL ADJOURNMENT Auxiliary aids for individuals with disabilities are available upon request. Requests must be made at least 96 hours in advance to the Administrative Services Director at 861 -9702. HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 78 Agenda November 18, 1996 Issue Statement: Public hearing and consideration of resolutions regarding adoption of the 1997 HRA proposed property tax levy and budget. Background: At the August 19, 1996 meeting, the HRA adopted a preliminary levy according to the Truth -in- Taxation law. That levy was then forwarded to the City Council and adopted with the City's preliminary levy. The Truth -in- Taxation law does not require any further action by the HRA, nor does it require a public hearing on the final tax levy and /or budget. The HRA levy will be included as part of the City's final levy document which will be considered at the City's Truth -in- Taxation hearing on December 4, 1996. However, a public hearing on the proposed HRA 1997 budget and tax levy has been scheduled for November 18, 1996 to provide for public input. At the conclusion of the hearing, the HRA should adopt a final budget and tax levy for 1997 to be forwarded to the City Council. The HRA budget resolutions are included with the budget document and represent official action on those items by the HRA. Recommended Motion: Approve the resolutions adopting a 1997 HRA budget and property tax levy for 1997. Basis of Recommendation: 1. The HRA approved the Proposed 1997 Budget and Proposed 1997 HRA General Fund and Relocation Information Fund tax levies at its August 19 meeting. 2. The HRA should now take official action to finalize the HRA budget and tax levy. 3. Notice of the public hearing was published in the Richfield Sun Current. Alternative Recommendation: 1. The HRA could select another meeting date before December 4, 1996 to consider these items. However, there would be little time to publish a timely notice. Discussion /Decision Mode: It is recommended that the HRA take action on the HRA budget and property tax levy on November 18, 1996. Respe y submitted, James D. Prosser Executive Director JDP:ds HRA RESOLUTION NO. • RESOLUTION ADOPTING 1997 HOUSING AND REDEVELOPMENT AUTHORITY BUDGET AND CERTIFYING THE 1997 TAX LEVY BE IT RESOLVED by the Housing and Redevelopment Authority of the City of Richfield, Minnesota as follows: Section 1. The budget for the Housing and Redevelopment Authority General Fund of Richfield for the year 1997 in the amount of $865,400 is hereby ratified. Section 2. The estimated gross revenue of the Housing and Redevelopment Authority General Fund of Richfield from all sources, including general ad valorem tax levies as hereinafter set forth for the year 1996, and as the same are more fully detailed in the Executive Director's official copy of the budget for the year 1997, in the amount of $887,300 are hereby approved. Section 3. There is hereby levied upon all taxable property in the City of Richfield an ad valorem tax in 1996, payable in 1997 for the following purposes: Housing and Redevelopment Authority $153,900 Relocation Information Services and Assistance $15,300 Section 4. A certified copy of this resolution shall be transmitted to the County Auditor. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 18th day of November, 1996. ATTEST: Vern Luettinger, Secretary U Thomas E. Harms, Chair . HRA RESOLUTION NO. RESOLUTION AUTHORIZING REVISION OF THE 1996 BUDGET OF THE HOUSING AND REDEVELOPMENT AUTHORITY OF RICHFIELD WHEREAS, Resolution No. 533 appropriated funds for personal services and other expenses and capital outlay for the Housing and Redevelopment Authority for the year 1996; and WHEREAS, the Executive Director has requested a revision of the 1996 budget as detailed in the 1997 budget document. NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority of Richfield, Minnesota as follows: Section 1. That the 1996 appropriation for the Housing and Redevelopment Authority General Fund be revised as follows: $145,010 Increase Section 2. Estimated 1996 gross revenue of the Housing and Redevelopment . Authority General Fund from all sources, as the same are more fully detailed in the Executive Director's official copy of the 1997 budget document, are hereby revised as follows: • $201,200 Increase Section 3. That the 1996 appropriations for Relocation Information Services and Assistance be revised as follows: $ 6,810 Increase Section 4. That the Executive Director bring into effect the provisions of this resolution. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 18th day of November, 1996. ATTEST: Vern Luettinger, Secretary Thomas E. Harms, Chair HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 77 Agenda November 18, 1996 Issue Statemenfi: Presentation by Bruce Nordquist, Housing and Redevelopment Manager, on housing and community development trends at the state and national level. Background: Bruce Nordquist is President of the Minnesota Chapter of the National Association of Housing and Redevelopment Officials (MN NAHRO). MN NAHRO is a 600 - member professional organization with the mission of ensuring that affordable housing and livable communities can be provided for all Minnesotans. A copy of the complete mission statement for the organization and a recent article from the New York Times provides further insight. Recommended Motion: Accept a report on state and national housing and community development trends. Basis of Recommendation: 1. Bruce Nordquist wishes to provide a midterm report to the HRA on community development trends. 2. The HRA has been supportive of Bruce Nordquist's leadership positions in this professional organization. Alternative Recommendation: Defer the report to another time. Discussion /Decision Mode: Bruce Nordquist is attending the HRA meeting to share his observations. Respectfully submitted, James . Prosser Executive Director JDP:ds • • MINNESOTA CHAPTER National Association of Housing and Redevelopment Officials Mission Statement We Believe A. That people should have an opportunity to access affordable, decent, safe and sanitary housing in livable communities. B. In the professional delivery and development of publicly assisted housing and community development programs. C. That housing and community development officials should be informed and educated to best serve the needs of their communities. D. That as a unified group of housing and community development professionals we are able to advocate for the people and the communities we serve. 11. Our Purpose To ensure the provision of decent affordable housing and livable communities for all Minnesotans. III. We will accomplish this purpose through the association of agencies providing housing and community development resources: A. Creating professional development opportunities for all members. B. Providing advocacy on housing and community development issues. C. Serving as a means for communication, interaction and an exchange of ideas among housing and community development professionals. r� u r � 4 i W Ac OCTOBFR 20, 1996 / SECTION fi _ EILI 0 Slamming the Door The low -wage jobs of the new economy cannot pay the rent. If stable housing keeps families together and productive, why has Washington let the number of new subsidized housing units drop — to zero? Photographs by Andrea Modica HERE PROBABLY AREN'T MORE THAN A DOZEN people who have read this year's housing appropria- tions bill, but its eye - straining type breaks new ground in the revision of the social contract. With one obscure sentence, the Federal Government has essentially conceded defeat in its decades -long drive to make housing affordable to low-income Ameri- cans. Even in an era of Government retreats this one stands out, both for its importance and its odd election year invisibility. No one seems to have noticed, least of all the candidates. But two decades of rising rents and falling wages have created record numbers of people, including working people, who can't afford to pay the rent. The Government's response is noted on page 29 of the housing bill's accompanying report. There, Congress specifies the number of "incremental certificates and vouchers" — in English, the number of additional families that can expect rent subsidies from the Govern- ment this year. Housing analysts monitor this number the way pitchers study batting averages; it is the best single summary of what they need to know. Protesters hit the streets during the early years of Ronald Reagan's Presidency when the Government "slashed" the number of new families getting help to 40,000 a year, from previous highs of about 400,000. Oh, for the good old Reagan days: the bill that President Clinton signed last month drops the number to zero. And there is no reason to hope that it will rise again. Stable, affordable housing keeps kids in school and adults on the job. It helps the upwardly mobile save to buy homes, and it keeps the downwardly mobile out of foster care and shelters. While the housing cuts are alarming for any number of immediate concrete reasons, they also present a troubling symbolism. The zero marks the demise not just of a budgetary line but also of a hope that has transfixed reformers for a century: that all Americans can find safe, decent and affordable housing. These days that hope sounds quaint at best, if not impossibly naive. 0 Jason DeParle is a staff writer for the Magazine based in Washington. 52 Housing has simply evaporated as a political issue. But housing problems are far more central to the lives of the poor than a number of the issues — immunizations, school lunches that have made recent headlines. The cost of shelter breaks the budgets of low- income Americans or crowds them into, violent ghettos, far from good jobs and schools — or both. Indeed, it's hard to imagine a poverty solution that doesn't take account of the relentless struggles most poor people face just finding a place to live. About the time that Congress was eradicating the signature line of housing policy, another report was rolling off the Government printing presses, again in utter obscurity. It notes that five million needy households now pay more than half their pretax income. for shelter, a punishing percentage that can crowd out other pur- chases, like food. (The Government says shelter is "affordable" if rent and utilities consume no more than 30 percent of a house- hold's income.) These five million households constitute a record number and one that is growing at a near- record rate, through recessions and recoveries alike. Their circumstance is not, as it might seem, the perennial condition for low- income Americans. It is something ominous and new. A generation ago, there were more cheap apartments than poor families. But demolition and gentrification have reduced the supply at a time when stagnating incomes virtually doubled the demand. As a result, there is a housing shortage that has altered the way low- income Americans live. Throughout the provinces of the new low -wage economy, people are making beds and guarding buildings, vacuuming offices and washing dishes, and they can't afford the rent. To put things in perspective, consider that 15 million households qualify for Federal housing assistance, but only 4.5 million actually get it. (Out of these, about a third live in Government -run projects, and two- thirds rent from private landlords with Government help.) Of the 10.5 million that don't get help, the 5 million that spend at least half their income on shelter are simply the most desperate. Indeed, the scarcity of housing assistance offers a preview of how �J .Market forces keep people like Harold Coleman in a state of permanent crisis. Nearly half of his $7 -an -hour wage goes toward shelter. other programs may fare in a post - entitlement, balanced- budget world. Only one eligible family in three receives aid, and the demand is so great in many cities that even the waiting lists are closed. While those paying 50, 60 or even 70 percent of their income for shelter include the disabled, the elderly and welfare recipients, there are also surprising numbers of working families in the same fix. Two million of the five million household heads with severe rent burdens are employed, and 1.2 million are working full time. Among other things, their situation offers a dark commentary on the stringent new welfare bill. Say it proves its doubters wrong, and those pushed from the rolls find jobs. Where are they supposed to live? THE DEATH OF AFFORDABLE HOUSING — WHAT A STRANGE notion in a nation as spectacularly housed as this one. Overall, the United States shelters more people in better - quality homes than any country in the world. (Ask the Japanese.) And it does so by offering the middle and upper classes exactly what it tells the poor it can no longer afford: generous Government subsidies. The $66 billion a year the Federal Government now spends on mortgage- interest and property tax deductions is about four times as much as it spends on low- income housing. More than two- thirds of it goes to families with incomes above $75,000. If the candidates detect any inequity in this arrangement, they haven't yet said so. For most of the campaign, they simply ignored the subject of housing costs. Then after months of silence, Bob Dole and Bill Clinton faced off this summer in a sudden competi- tion to give prosperous homeowners even bigger breaks, by all but eliminating capital gains taxes on the sale of expensive homes. On a practical level, their proposals scarcely matter. Most homeowners already qualify for the exemptions (at a cost to the Government of another $20 billion a year). But as a matter of symbolism, the further courtship of the lavishly housed captures all too well Washington's reverse Robin Hood ways. Perhaps it seems there is no other choice: the very words "subsidized housing" conjure a landscape of failure and waste. But the Government is curtailing its efforts just as the low- income- housing world has produced a variety of success stories the nation could build on, if not to serve the most desperately poor then at least for those a step or two above. As counterintuitive as it seems, the past two decades have arguably produced more successes in low - income THE NEW YORK TIMES MAGAZINE / OCTOBER 20, 1996 53 T 1, .,orris uDsidized housing" conjure a landscape of failure anci ,,vaste. But as counterintuitive as it seems.. its possible to ar6ue that the past two decades have produced more successes in lov,7- income housin_Y than in any other anti - poverty field. housing than in any other realm of anti- poverty policy. The quiet resuscitation of parts of the South Bronx is just one example. Most of the progress has been led by nonprofit groups that, with Government and foundation support, have grown into adept landlords and developers. They screen tenants and keep projects small; they monitor main- tenance and strive, when possible, to mix the poor with the working class. Henry G. Cis- neros, the Secretary of Housing and Urban Development, is now trying to apply some of those lessons to an ambitious redesign of the worst public housing. So far he has presided over the destruction of 22,000 scarcely inhab- itable apartments and is replacing them with smaller, mixed- income developments. But the effort comes with a cost. Since the new complexes will also be smaller, the overall housing shortage may grow. I got my first sense of the problem's scale five years ago on a reporting trip to Charlotte, N.C., which as a midsize South- ern city is no one's idea of an unaffordable place to live. But a few days in town and my notebooks were filled with the woes of low - wage workers stooped by their rents. One was a character of such earnest energy, and unlikely misfortune; that he's never quite left my mind; if the housing crisis hit the big screen, Harold Coleman could be its Jimmy Stewart. A kitchen aide at a downtown hotel, he spent almost 60 percent of his income to keep his wife and two young sons in a decent apartment. He furnished his living room with a reclining chair salvaged from a Dumpster, and all was well, relatively speaking, until the police knocked one night at 3 A.M. and carted him off to jail. The incriminating evidence was the extension cord connecting his alarm clock to a neighbor's patio outlet. With no money for a utility deposit, Harold Coleman had turned into an electricity pirate. I returned to Charlotte recently to check on its housing situation and found an impressive blend of economic growth and civic concern. The city is booming, with two major sports teams, the headquarters of two growing bank empires, a row of new skyscrapers and virtually no unemployment. The good times have kept the public purse full, and the city is spending a good sum on housing, more than $3 million a year. The banks have been similarly generous, the housing groups are sharp and Habitat for Humanity, the nonprofit home builder, has constructed more homes in Charlotte than almost anyplace else. Citing such promise a few years ago, Jimmy Carter came to town, hammer in hand, to predict that Charlotte would become "the first American community in the whole United States that's going to succeed in eliminating poverty housing." Guess how the story turns out. AT 7:30 A.M. THE DOORS OF THE CRISIS ASSISTANCE MINISTRY HAVE yet to open, but the line outside is already 60 deep. Each year about 012,000 ,people trek to the social services center, just north of 54 Charlotte's downtown, for help with rent and utilities, and Crisis responds with a mix of funds from churches, businesses, the Government and individuals. Today, the first woman staked her place by arriving under moonlight at 4:20 A.M. The door flings open and the crowd rushes in, clutching the numbered cards that determine the order in which they'll be seen. No. 4 is seeking a weekly room because a friend kicked her out. "I am working," she snaps at the social worker across the counter. No. 12, a groundskeeper, carries his eviction papers with him, and so does No. 17, a clerk at a temporary agency who was laid off after breaking her toe. (Hers come with a cheerful reminder from the landlady- "Only good things can come from paying your rent on time. ") In an effort to keep someone's lights turned on, a Crisis worker calls Duke Power to say the ministry will send a check. Though social work is typically shrouded in euphe- mism, this exchange comes with an exquisite clarifying slang. In local parlance, this is "Crisis calling the Duke." Though Charlotte is booming, so is its housing crisis. The ministry got 1,000 more requests for help last year than it did the year before; despite the city's overall prosperity, those seeking help reported incomes that were 4 percent lower and shelter costs that were 7 percent higher. Two years ago, the average person walking through the ministry's doors paid $417 for rent and utilities out of a monthly income of $622, a shelter burden of 67 percent. By last year, the average was $448 out of $596 — an astonishing 75 percent. It's fair to question the precision of the numbers. (Poor people tend to underreporrtheir income.) But it's hard to find anyone in Charlotte who doubts the general story the numbers tell. Char- lotte's city officials are as given to boosterism as those anywhere else, but when they discuss their low- income - housing market, they start quoting Dickens. "Even with such a bright future, Charlotte is becoming a `tale of two cities,' " says the city's official housing plan. "There is a growing economic division of the `haves' and `have - nots.' " There are 160,000 households in Charlotte, and about 20 percent meet the Federal definition of "very low income "; that is, they live on less than half the area's median income, or less than $21,000 a year. The city plan notes that these households "cannot afford adequate housing" and that they "often must make hard choices on whether to spend their limited income on shelter, food or heat." About 10 percent — 16,000 households —live on less than $12,000 a year. About their prospects, the city is even more pessimistic. Without rental assistance, the plan says, they "are likely to be living in highly unstable situations, or doubled up with other families, behind on their rent and prone to eviction." Each year the Federal Government publishes a list of "fair market rents," locally adjusted cost estimates of decent but modest • Mary Patton, opposite, has worked since her teens, but the $500 rent on her house, above, takes a 61 percent bite out of what she earns in a year. shelter. And each year the National Low Income Housing Coali- tion then calculates the wage needed to afford the rent. To afford a one - bedroom apartlent in Charlotte (at $454 a month), a worker needs an hourly wage of $8.73. To afford a two- bedroom apart- ment (at $511 a month), a worker needs $9.83. That is more than twice the minimum wage of $4.75 an hour. Notice here that we are talking about workers. Whatever one chooses to think about welfare mothers and their children, the nation makes no pretense to house them: only about one in four nationwide gets rental assistance, and in North Carolina the rest live on cash stipends that average about $270 a month. In other words, a mother on welfare could spend 100 percent of her cash income for rent and still have only half of what the Government says it costs to rent an apartment. Indeed, a welfare check won't pay the fair market rent in 48 states, which is why most recipients rely on boyfriends or unreported jobs, and why many families live doubled up. And so be it: from President Clinton on down, the nation has just said, "Get a job!" But the lesson of Charlotte's economy is that even when poor people do, at hourly wages of $5.50, $6 or even $7, many will still find themselves unable to afford a place to live. PHOTOGRAPHS BY ANDREA MODICA FOR THE NEW YORK TIMES As a result, the Crisis Assistance Ministry is flooded with welfare and working families alike. At age 54, Mary Patton is a repeat client though she has been working since her teens — on farms, in textile mills and now as a night security guard at a commercial bakery. She started the job four years ago, at $4.75 an hour. By this summer she was up to, well, $4.75 an hour. "They don't give raises that often," she says. Where does one live on a wage like that? Patton left one apartment when drug dealers shot through the door. She moved from a second when a police helicopter landed in the backyard while raiding her drug- dealing neighbors. Then she found a small brick cottage at the edge of a wooded cul -de -sac, which makes her yard a popular place for teen -agers to strip stolen cars. Patton stores her lawn mower in the kitchen to keep it from being stolen and has decorated her bathroom walls with red pot holders, just for the cheer. Rent and utilities for the two- bedroom house, which she shares with a granddaughter, run $500 a month, or $6,000 a year. That's 61 percent of the annual earnings ($9,896) recorded on her most recent 1040 form. Oddly enough, Charlotte's housing problems represent progress of a son. More accurately, they represent the price of progress — THE NEW YORK TIMES MAGAZINE / OCTOBER 20, 1996 55 0 To `heat or eat" is all too often the question. The Crisis Assistance Ministry helps with rentand utilities when it can, but couldn't prevent Richard Ussery's eviction from the house above. The agency has been able to keep the lights on at the Coleman' home, opposite. progress in this case being the eradication of the seriously substand- ard housing that was prevalent in the United States a generation ago. Maly Patton grew up in a house in the Carolina countryside with no running water and a wood stove for heat. It was brutish but cheap: the rent was just $4 a month. Even Charlotte was awash in shotgun shanties at the time. Now, for the most part, the outhouses, tin roofs and slumlords are gone; they've been replaced by housing inspectors, due process — and rents that are out of reach. Perhaps no one in Charlotte knows more about the trade -offs than Ted Fillette, a Legal Services lawyer who pushed for much of the change. He arrived in Charlotte 23 years ago, fresh from a legal clinic in Boston, then the hotbed of the tenants' rights movement. Charlotte, he says, "was literally like a third world country — tenants were like serfs." The city had an entire submarket of caveat emptor homes: take 'em as you find 'em structures with weekly rents and no heat. Tenants could be evicted on two days' notice if they dared to call a housing inspector. "I just decided this would be my focus," he says. "Tenants had to have some rights." Now they do: rights to repairs; rights against evictions without a court order, rights to trial by judge and jury, rather than landlord- friendly magistrates. What they don't have is money to pay for the improved housing stock Fillette himself is ambivalent about the trade -off. "Were people better off when they were cold and paying $150 for their own place ?" he asks. "Or are they better off with heat and plumbing, but living doubled up or paying every last cent for rent? I don't know." In the old days, one of Fillette's most frequent adversaries was Robert Pressley, a rural migrant in overalls who was among the most infamous of the city's low - income landlords. These days, the Pressley empire is run by Robert's son, Tony, who is no one's idea of a slumlord. Low- income property is a small pan of his sprawling commercial and residential business. He talks of renting inexpensive housing as a "duty," and he has served on the board of Charlotte's leading nonprofit housing agency. But he owns less low- income housing than his father did for a simple reason: there's no money in it. The market can adapt to the poor person's purse by selling cheaper toys or shoes, but there are only so many corners that can be cut in building cheaper housing. To be sure, codes should be simplified and red tape should be cut. But interest, utilities, taxes — these costs are fixed, regardless of the occupants' income. It costs between $40,000 and $55,000 to build an 800 - square -foot two- 56 PHOTOGRAPHS BY ANDREA MODICA FOR THE NEW YORK TIMES 0 • • The market can adapt to the poor person's purse by selling eaoer shoes; but there are only so many corners that can be cut to produce cheaper housing. The only way to push the rents loiver is through a subsidy - to the tenant. to the landlord or through the tax code. bedroom apartment in Charlotte, depending on the land and the inter- est rate. To service the debt, main- tain the building and earn a modest return, landlords need to charge rents of $600 to $750. The only way to push the rents substantially lower is through a subsidy, either to the tenant or the landlord or through the tax code. "I can't walk on water —and you don't see any new $400 -a -month apart- ments coming on the market," Tony Pressley says. The handful he still rents are mostly old ones, already paid off. Though Fillette has spent his life suing landlords, he speaks sympathetically of the younger Pressley. "It's virtually impossible to make a profit and comply with the law because of the inadequate income of the customers," he says. When a middle- income family spends half its budget on shelter (in fact, few do), it is making a life -style choice. When a low-income family does so, it is courting a crisis. The remaining money is rarely enough to pay for the bare necessities. Forget for a moment that these families may find themselves living in a virtual war zone. They may also be facing evictions, utility cutoffs or even shortages of food. Poor families tend to get displaced so often it's not hard to find children in Charlotte who have attended six elementary schools in a single year. Social workers at A Child's Place, a Charlotte program for homeless children, recently saw a third grader who had been to 13 different schools in a year. In the District of Columbia, the head of foster care has estimated that as many as half the city's foster children could be reunited with their parents if the families had stable housing. While there is surprisingly little research on the impact of rent burdens, some disturbing hints come from Dr. Alan Meyers, a pediatrician at the Boston Medical Center. In three different studies (two with a colleague, Dr. Deborah A. Frank) he found a connection between high rents and inadequate nutrition. In a 1993 study of 580 poor children, he found iron deficiencies in 19 percent of those whose families had subsidized rents. But of those in families without housing subsidies, 30 percent were iron deficient. In 1995 he published a more sophisticated study of 200 poor children, and this time the differences were even more dramatic. Only 3 percent of the children whose families got housing assistance were underweight for their age. But of the children whose families were on the housing waiting list, 22 percent were underweight. Earlier this year, Meyers published a third study. After examining the records of 11,000 children, he found that they were most likely to be underweight in the 90 days after the coldest month of the year. This bolstered his theory that families choose whether to "heat or eat." Enough wild claims get made on the topics of homelessness and hunger that one hesitates to make too much of the findings. As Meyers is quick to note, two are based on small samples, and all come from a single hospital. As a scientist, he calls them "suggestive." But as a citizen he speaks with less equivocation: "It's not rocket science. Without housing subsidies, the .likelihood is that there will be more hungry and undernourished children." And more parents like Richard Ussery, a veteran of the Crisis Ministry lines. His file there shows a trail 15 years long of utility cut - offs and eviction notices and dou- bling up with relatives, though it also shows steady employment. He's 43, separated from his wife and raising an 11 -year -old son on his own. These days he's unloading trucks at piecemeal rates. He's been with the same company for about four years. His wages aver- age less than $6 an hour. I found him in August in a weather - beaten two- bedroom home stuck between two car lots. He was spending about 50 percent of his income on shelter, which doesn't count the $240 repair when Richard Jr. dropped a tennis ball down the toilet. He had curtains on the windows and napkin rings on the table. He also had a stack of eviction threats, with court dates for February, May, June and July. Each had been averted at the last minute by family loans or Crisis Ministry donations or forgone luxuries like fixing his broken false teeth. "Don't none of them go to trial," he declared "I always pay 'em." In a three -hour conversation, Ussery did not utter a word of malice toward his landlord, "who's doing what he got to do." And there wasn't a trace of sarcasm in his voice when he said, "I love this place." When I called back a few weeks later, Ussery had been evicted. THE BULLDOZER LOOKS LIKE A HORROR -FILM INSECT AS IT roars across a desolate lot in Detroit. It slams its steel claw through a second -story window and lunches on bricks and glass. The action has drawn a crowd straight out of "The Bonfire of the Vanities" — kids chomping hot dogs, guys in dashikis, television crews and a man in purple sunglasses who flashes peace signs. When the demolition dust settles and the cheers fade, another 1,064 units of public housing will he in ruins. The scene cries out as a metaphor, but a metaphor for what? Presiding in a ceremonial hard hat, Henry Cisneros, the Housing Secretary, hopes the rubble will stand for renewal, of public housing and of urban life more generally. At a time when most housing funds are being trimmed, Cisneros will spend $80 million to transform the site into a smaller, mixed- income development. He is trying to bring down a total of 100,000 of the nation's most blighted units over the next few years. 'This is about a renaissance," he tells the crowd, "a rebuilding." But his efforts coincide with a second, less -happy demolition, that of the overall housing budget. Across the country, the Government is being forced to spend many new billions repairing, preserving or replacing apartments it built years ago; this leaves almost no money for new ones. Housing secretaries like Continued on page 68 THE NEW YORK TIMES MAGAZINE / OCTOBER 20, 1996 57 HOUSING Continued from page 57 to measure their progress by xtent to which the sub - � ed inventory grows. ut Cisneros may be the first to see it actually shrink. "It's like bailing water out of the boat while at the other end someone's got a hose and they're filling it from the ocean,". he says, leaving the demolition site. "No matter how fast you bail, you can't beat the water coming in. I hope against hope — I hope against reason — that the other things we're doing will keep us even." Keep us even: it says some- thing when the nation's Housing Secretary "hopes against reason" to preserve a status quo that is at a record level of distress. But Cisneros is right to consider this an exercise in optimism, since he operates in a political climate hostile to low- income hous- ing in every way. He runs a discredited bureaucracy with an unpopular cause at a time when even popular programs trouble getting financed. W ceesident Clinton came to with a crowded agen- da, and housing was no- where on it. Moreover, housing programs always face a competitive disadvan- tage in Congress. They don't just serve a smattering of poor people with no political pull; they also compete in the same appropriations bill with formidable rival inter- ests — like veterans' bene- fits, the space program, envi- ronmental programs and Americorps (the President's national service initiative). And Cisneros' personal clout certainly didn't grow when Federal agents began investigating his payments to a former girlfriend. Still, he has worked Washington with the same skills he used in San Anto- nio to become the nation's first big -city Hispanic May- or at the age of 33; other- wise, housing funds would be eroding even faster. After g a fight for money for Zomeless, Cisneros won an Oval Office appeal by 68 reminding Clinton that the inner -city vote in Cleveland and Detroit had clinched two crucial state victories. When Vice President Al Gore thought about abol- ishing the Housing Depart- ment, Cisneros got out front with a "reinvention plan." He stalked around the White House after hours, slipping his plan un- der the doors of officials three ranks beneath him. It was demeaning, but effec- tive. "Henry did more with less than anyone I can think of," says Christopher Edley, a former White House budget official. "Under a lesser politician, the depart- ment might be dead" But Cisneros has little con- trol over the broader market forces that leave those like Harold Coleman in a state of permanent crisis: rising rents and falling incomes. As re- cently as 1970 there were almost a million more cheap apartments nationwide than there were poor households. (The Center on Budget and Policy Priorities defines a "cheap" apartment as one that rented for the equivalent of $325 today.) But bulldoz- ers knocked some of those units down. Gentrification fixed others up. And rent hikes in general outstripped inflation. Meanwhile, as housing disappeared, the number of needy families ex- ploded during two decades of wage erosion. There are now 12 percent fewer cheap apart- ments than there were in 1970 but 72 percent more needy households: instead of a housing surplus, there is a gap — of nearly five million apartments. In thinking about why this matters, it's important to re- member that the housing market doesn't just reflect the nation's income inequal- ity. It also increases it. While renters are paying more and more for shelter, homeown- ers are now paying less — even while accumulating the ultimate prize: equity. In 1980 the average homeowner had a mortgage that con- sumed 30 percent of his af- ter-tax income. Now it con- sumes 23 percent. (The dif- ference is due to lower inter- est rates and fewer overheat- ed markets.) In fact, the aver- age homeowner now spends a slightly smaller percentage of income on shelter than does the average renter, even while accumulating consider- able wealth. In other words, the housing market offers an increasingly welcome deal to the two-thirds of Americans who can afford to buy. And it increasingly punishes the third left behind ITH RENT'S UP and wages down, there's basically one way to fill the gap: Gov- ernment help. But housing is a uniquely expensive social program. It costs more than $6,000 a year to house each additional poor family. (By contrast, it costs $5,000 a year to provide Medicare to an elderly person.) As budgets have tightened, it's no won- der that the number of new units has fallen. In the heyday of housing programs, the mid- 1970's, the Government was financ- ing about 400,000 new apartments a year. In the early 1990's the average had dropped to 36,000. That meant Charlotte was hous- ing fewer than 25 additional families a year, its waiting list is 2,900 families long. And that was before the housing budget started to im- plode. Throughout the Housing Department, a se- ries of old bills are wreaking havoc on the $20 billion budget. The technical details could fill a library, but the point is easy to grasp: the cost of preserving the stock has crowded out money for expanding it. The department now spends almost $2.5 billion a year just to upgrade old public housing projects, re= placing boilers and roofs. It spends $550 million to bull- doze and rebuild sites like the one in Detroit. It spends another $400 million to plug a loophole in a program from the 1960's and 70's that gave low- interest loans to private landlords willing to house the needy: the pro- gram gave landlords the right, after two decades, to evict the poor and raise the rent, and without the new subsidies, most would. The department even has its own miniature version of the savings- and -loan crisis looming on the horizon, which has largely gone un- noticed. The department in- sures the mortgages on about 700,000 financially troubled private apartments. If all the owners default, the bailout costs over the next few years could reach $18 billion. Even a fraction of such losses, which now seem all but inevitable, promise to plunge the de- partment into deeper politi- cal and financial turmoil. At the moment, the old - bill problem is most severe in what's known as the Sec- tion 8 program, which has long been the flagship of the nation's affordable- housing strategy. Though conven- tional public housing is bet- ter known, Section 8 houses about twice as many families through payments to private landlords. The 2.9 million families enrolled in the pro- gram spend 30 percent of their income on rent and utilities, and the Govern- ment covers the rest. (About half the program is "project based," meaning tenants have to live in spe- cific apartments; the other. half is "tenant based," meaning families can take their subsidies and move.) Like other housing pro- grams, this one has had its scandals, but on the whole the tenant -based certificates offer the fastest, easiest way to house the poor. And they are particularly appealing to market- oriented reformers because they "empower" tenants with choices that conventional projects don't allow: those who don't like where they live can leave. When the certificates were first issued in the 1970's, they were financed through long -term con- tracts. But those contracts are now expiring in record numbers, and they cost bil- lions to renew. Unless the department finds the mon- ey, the subsidies will expire and the families will face eviction. This year alone the department has to re- new the subsidies on 800,000 apartments, at a cost of about $3.6 billion. In the year 2000 the depart- ment will have to refinance 2.5 million apartments, at a staggering cost of $17 bil- lion. That is, the cost of Section 8 renewals alone could soon devour the de- partment's entire budget. Scrambling for ways to save money, Congress has settled on an obvious one: stop the program's expan- sion. In truth, the housing expansion hasn't just end- ed; an absolute reduction has already begun. With some technical tinkering, Congress has managed to slightly reduce the number of certificates in use at a given time. And given the imminent financial pres- sures, most analysts think that's just a taste of things to come; some predict the overall inventory will shrink by as much as 20 percent. "We'll be very lucky if we don't lose a million of the 4.5 million subsidized units that are al- ready occupied by very low income people," says Cushing Dolbeare, the dean of housing advocates. The cuts snake perfect sense for the Government's budget. But they offer slim hopes for those at the bot- tom of a new housing econ- omy in which wages don't pay the rent. And the budg- et cutters know it. They don't predict that the mar- ket will fill in the gap. They're not really counting on the poor to bootstrap themselves out of trouble. (Though they sometimes express that hope.) In mo- ments of greatest candor, they simply say that some needs are so great that the Government can't meet them and that housing is a textbook case. "It's a really nasty problem," says a Re- publican aide who helped Continued on page 94 HOUSING Continued from page 68 draft the housing budget. "There's no way to put a happy face on that." a it's true that other Gov - ernment programs still build housing, including a hous- ing tax credit and two hous- ing block grants. (But with- out a subsidy like Section 8, poor families can't afford the units these programs produce.) And it is true that the Government has other programs for the working poor, most notably an earned- income tax credit that provides cash payments up to $3,500 a year. (Indeed, that's a smarter solution than many housing pro- grams offer, since it spreads subsidies further and by- passes bureaucracies.) And rt's also true that the Gov- ernment can't just spend and spend. Higher deficits mean higher interest rates, and that hurts the poor, too. The point isn't that the Government has done noth- ing. The point is that it hasn't done enough to give most poor families a chance Wdecent housing, and that it esn't do nearly as much for the needy as it does for those with means. Govern- ment housing subsidies now do the most for those who need them least. And the politics of the country are construed in a way that pays the issue no mind. Last month when Presi- dent Clinton signed the bill that reverses decades of housing history, he actually did so in the middle of a Rose Garden celebration. A cele- bration, that is, of an unrelat- ed provision in the same bill — which guarantees new mothers longer hospital stays. Surrounded by digni- taries of both parties, Clinton said it was an "honor to sign this legislation," letting the day's real news — the death of affordable housing — pass without comment. ON THE NORTH SIDE OF Charlotte, a middle -aged Vovemr a shiny new van to snoop. She is 94 surrounded by eight square blocks of resurrected blight with an appropriately biblical name, Genesis Park. But here in their midst is a last ram- shackle house, with a bare - chested man on a milk crate in the front yard. 'This is Skinny's Liquor House here," she says, pointing to the neighborhood speak- easy. "Skinny has about two weeks left before he's locked out and evicted we bought the house." Pat Garrett is what a hous- ing solution might look like if the country had more money and will. She's just the son of streetwise character that a housing organization needs — part social worker, part bottom -line banker. Her pre- cepts are those of other suc- cessful managers: screen ten- ants, tend to maintenance and evict troublemakers. "If you don't have a good property manager, you're going to be in a world of hurt," she says. If Garretts are what most cities need, the good news is that many have them, at least in limited supply. There are now about 2,000 nonprofit housing groups like hers, and they've built or renovated more than 450,000 units, most of them in the past decade. They operate with Government subsidies from those programs that have survived the cuts as well as with corporate and private contributions. They also get help from two important foundations (the Enterprise Foundation and the Local Initiatives Support Corpora- tion) in picking their way through the technical thick- ets of development. Their impressive track records ad- dress the fear that more sub- sidized housing would mean more Government- financed slums. But the first problem is that there isn't nearly enough money to go around. With the groups now building about 50,000 units a year, it would take a century to house the five million families with severe rent burdens. The second problem is that the surviv- ing programs aren't suffi- ciently targeted to the poor. Nonprofit developers like Garrett rely on three main Government programs: the low - income - housing tax credit, the community de- velopment block grant and the Home block grant. Those programs generally serve less needy people — those with incomes that are 60 percent of the median, or about $25,000 in Charlotte. There's a reason: the less needy are easier to serve. No one really knows how to house large numbers of the poorest people, especially those on welfare. Group them together and neigh- borhoods collapse; spread them out in the suburbs, and their new neighbors rebel. But with more Gov- ernment support, Garrett is convinced that she could build safe, affordable hous- ing for those a half -step up — people with incomes in the $10,000- to-$12,000 range, like Mary Patton and Richard Ussery. "The big question is the funny mon- ey — the subsidy money" she says. Charlotte's willingness to provide its own funny mon- ey is unusual; most cities simply spend Federal dol- lars. After years of dealing with Ted Fillette's suits, the city's corporate and govern- ment elite decided it wanted to do more to house the needy. In 1986 they con- vened a two -day symposium and brought in James Rouse, the fabled developer and the founder of the En- terprise Foundation. Within a year, Charlotte made the decision to set aside $4.5 million of its growing annu- al revenues just for low - income housing. The main beneficiary is Garrett's group, the Char- lotte- Mecklenburg Housing Partnership. It's a public -pri- vate venture set up by the city and the town's major banks. In seven years it has built or renovated more than 400 apartments, with rents starting at $245. And it has also produced about 281 sin- gle- family homes, with mort- gages in the $400 -to -$550 range. Each deal comes with its own endlessly complex financing strategy; Garrett has grabbed loans and grants from the city, state and Feds. But her main support is a $2 million annual contribution from the city. And the banks have established a pool of modestly subsidized loans for those who buy the partner- ship's homes. No neighborhood shows the payoff more than Gene- sis Park. The neighborhood was a drug market of such renown that even the adja- cent housing project put up a wall to protect itself. In the past four years the partner- ship has bought more than half of the area's 169 homes, which it has renovated and s6ld at below-market. rates; homes start in the low $50,000's, with monthly mortgages of about $450. Other housing groups also got involved, and the city brought in two "community policemen" to bicycle down its four main streets. In 1993, Genesis Park ranked first among the city's 73 neighborhoods in violent crime. A year later it ranked 41st and violent crime had dropped 74 percent. The encouraging thing about Charlotte is that other groups, in other neighbor- hoods, can boast of similar successes. There are plenty of models for the Government to build upon and expand; what's missing is the money. Even Charlotte's housing au- thority, which deals with the poorest tenants, has a few bright spots. Its president, Harrison Shannon, is an up- from- nothing Vietnam vet- eran who dresses in French cuffs and preaches a gospel of self -help. Not long ago we Continued on page 105 HOUSING Continued from page 94 climbed into his car for a 1wour of his 5,000 -unit em- ire. Most of the old, large complexes look like public housing everywhere: run- down acres of Government tenements with too many idle people and a general feel of menace. But as the tour went on, we started rolling through some of Charlotte's nicer neighborhoods, on the way to more public housing. Beyond the downtown core, there are 20 "scattered site" developments of no more than 50 units each. Most had prompted tooth - and -claw fights from the neighbors, who had under- standable fears about prop- erty values. Understandable but, as it turns out, unneces- sary. According to a study by the University of North Carolina at Charlotte, home values in those neighbor- hoods rose between 84 per- cent and 127 percent in the decade after the public hous- t�J s ing was built. And property values grew just as fast in those neighborhoods as in other, comparable pans of the city. But the numbers are less impressive than the apart- ments themselves, which blend in with the surround- ing racquet clubs and bistros. The most intriguing sight can be found off Fairview Road in Charlotte's boom - ing southeast corridor. On one side of the road there's Morrocroft, a subdivision of million -dollar homes whose wrought -iron gates are as self - conscious as its name. Just down the road is Live Oak, 32 units of public housing on nine wooded acres. And in between, there's a fine little reminder that housing programs can work. It's a sign in a muddy field that says, "Future site of Dean & Deluca." DURING MY VISrr TO Charlotte, I kept wondering what had become of poor Harold Coleman and his il- legally illumined alarm clock. What picaresque strategies had he seized upon now to keep pace with the rent? He wasn't in the phone book, he wasn't on the old job and transience of the poor suggested he prob- ably wasn't in Charlotte at all. But I found a phone number in an old notebook and dialed in on a whim. He answered on the first ring. "We kept the same phone number," he ex- plained "I'm bad at remem- bering phone numbers." A few hours later, I arrive at a modest brick home on a quiet, wooded street and find an old Honda with a license plate that says, "Christian Radio: A New Way of Life." Harold and his wife, Vicky, have become de- vout Baptists. "It's really sparked a light in our life," he says. Now 28, Harold has stepped up from his $5 wage as a hotel fry cook, to a $T- an-hour job as a maintenance man at the church. Though he's had expensive eye sur- gery as a result of his diabe- tes, a foundation helped with the bills, and his two boys, Tony and Joshua, look healthy and happy. The Colemans have given up the food stamps for which they otherwise qualify, partly because of the hassle in- volved, but also because they do not want to be seen as charity cases by their affluent congregation. They have two nice bikes hanging from pegs on the dining -room wall, and they laugh when reminded of the old electricity caper. "Me being as naive as I am, I didn't realize it was illegal," Vicky says. In other words, things have fallen into place for the Colemans — everything, that is, but the rent. Assum- ing he works full time all year at $7 an hour, Harold can pull in $14,500. If he gets lucky and lands $1,000 in overtime, that's $15,500. Throw in the $2,700 he gets through the earned- income tax credit, and his total in- come rises to $18,200. But his rent and utilities run $600 a month. Or $7,200 a year. Or about 40 percent of the Colemans' annual income. That is, after five years of striving and 10,000 hours on the job, Harold is still barely making it. His family still has a file at the Crisis Ministry, and it's replete with utility cutoff no- tices — two from this year alone. He and his wife stand in line at the center together so neither suffers the indigni- ty alone. "It's degrading in a way," Harold says. "We're like, `Jeez, I can't believe this is happening.' ' But Harold is nothing if not an optimist. He notes that Job had it worse. With the kids in school, Vicky is about to start a job. And if the economy keeps grow- ing, and the car doesn't quit, and Harold stays healthy — who knows? Maybe they'll keep the lights and heat on next year. Among today's low -wage renters, this is what passes for success. ■ HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 76 Agenda November 18, 1996 Issue Statement: Adjustment of payment standards for the Section 8 voucher program Background: The Section 8 program is administered in accordance with an administrative plan. In accordance with the plan and HUD regulation, the voucher program provides financial assistance based on unit bedroom size. Clients pay 30 percent of their income toward rent. The HRA, through its contract with HUD, pays the balance up to the set rent amount called the "payment standard." The increase in rents in the market place since 1993 indicates a change in the payment standard is needed. The attached table clarifies the changes being proposed. Recommended Motion: Authorize the revised pay standard as follows: Proposed Pav Standard Unit Size rent rate 1 bedroom $538 2 bedroom 3 bedroom $643 $850 4 bedroom $928 Basis of Recommendation: 1. Due to a very low vacancy rate and increased demand, rents are increasing. 2. Richfield's pay standard has not been updated since 1993. 3. HUD provides sufficient financial assistance to cover these adjustments in the payment standards. Alternative Recommendation: Do not change the pay standard at this time. However, HUD guidelines suggest an adjustment is needed. Discussion /Decision Mode: A change at this time allows implementation for the January 1, 1997 beginning of the fiscal year. Respectfully submitted, James D. Prosser Executive Director JDP:ds • d CO L C-0 �(3) 31 G v rn = ta ,Q m o v C) 0 co N r C14 N � Q a C) 0 0 Q � N a C14 c _ OD d o r- W s avi V ZN 00 0 Q co ) O co LO � OO d)CL.� � `� Z v CL. Ul aN oN �0 rd Z co 0 00 O co OD co N � Or ta o� Q c N O Q N � O d' O co 00 6q a N o 0 0 v cu m ,r m m co c - N IL U 0 a N �N �- C � N -6 N a> Q- co T tU Q- a� � N co a Icco CD r N. I HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 75 Agenda November 18, 1996 Issue Statement: Public hearing and consideration of resolution authorizing sale of 7625 Emerson Avenue to Rockport Homes, Inc. for single family home development. Background: The HRA has acquired 7625 Emerson Avenue for Richfield Rediscovered Program new home development. The property was a residual piece of land resulting from the 77th Street project. Earlier plans for a house move and remodel by another developer did not come together in a timely fashion. A sale of the property now to Rockport Homes, Inc. would allow appropriate time for an entry in the March 1997 Spring Preview. The development agreement is similar in form and content to those used previously. The new home at 7625 Emerson Avenue will be a three bedroom home with two bathrooms. A full basement and attached double car garage will be part of the development. An end value of approximately $150,000 is anticipated. The sale price of the lot is $25,600, based on an appraisal by BCL Appraisals Inc. The performance security provided by the builder is $25,600. Recommended Motion: Following a public hearing, adopt the resolution authorizing the HRA Chair and Executive Director to execute agreements to sell 7625 Emerson Avenue to Rockport Homes, Inc. for the development of a new single family home. Basis of Recommendation: 1. The builder has proven to be experienced, capable and financially secure. 2. The HRA acquired 7625 Emerson Avenue from the City for the Richfield Rediscovered Program. 3. The terms of the development agreement have been negotiated and are in conformance with program guidelines. 4. Notice of public hearing for sale of 7625 Emerson Avenue was published in the Sun Current on November 6, 1996 for November 18, 1996 consideration. Alternative Recommendation: Do not proceed with the development agreement with Rockport Homes and direct staff to find another buyer. Discussion /Decision Mode: Closing would occur in late November with construction starting in December. Respec bmitted, James D. rosser Executive Director JDP:ds HRA RESOLUTION NO. RESOLUTION AUTHORIZING THE SALE OF REAL PROPERTY LOCATED AT 7625 EMERSON AVENUE TO ROCKPORT HOMES INC. IN ACCORDANCE WITH DEVELOPMENT AGREEMENT WHEREAS, the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota (HRA) desires to develop certain real property pursuant to and in furtherance of the Richfield Rediscovered Program adopted by the HRA, said real property being described as follows: Address Legal Description 7625 Emerson Avenue Lot 1, Block 1, Cloverleaf Addition WHEREAS, the HRA is authorized to sell real property within its area of operation after public hearing; and WHEREAS, a purchaser of the described property has been identified and a development agreement negotiated as follows: Performance Address Sale Price Security Builder 7625 Emerson Avenue $25,600 $25,600 Rockport Homes, Inc. WHEREAS, a public hearing has been held after proper public notice. NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority in and for the City of Richfield: 1. A public hearing has been held and 7625 Emerson Avenue is authorized to be sold for $25,600 to Rockport Homes, Inc. in accordance with a development agreement with the HRA. 2. The Chairperson and Executive Director are authorized to execute a Contract for Private Development and other agreements as required to effectuate the sale to Rockport Homes, Inc. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 18th day of November, 1996. Thomas E. Harms, Chair 0 ATTEST: Vern Luettinger, Secretary v pr 114. - IV Ain alit 0 j 1, iTAl 1v so logo dob I 7v- HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 74 Agenda November 18, 1996 Issue Statement: Public hearing and consideration of resolution authorizing sale of real property at 1700 West 78th Street to The Limited, Inc. to provide for the construction of the Galyan's Trading Company retail project at the northwest quadrant of Interstate Highways 35W and 494. Background: On October 28, 1996, the HRA adopted a resolution approving the Contract for Private Development (Contract) with The Limited, Inc. (Developer). The Developer will construct a two story 100,000 square foot Galyan's retail facility on a site currently occupied by the Naegele Company building. The Developer will purchase the property directly from the property owner, Morris Communications, Inc. Title to the property will then pass to the HRA and back to the Developer, as per the terms of the Contract. Recommended Motion: Adopt a resolution which authorizes the sale of the real property located at 1700 West 78th Street to The Limited, Inc. for construction of the Galyan's Trading Company. iBasis of Recommendation: 1. The Contract for Private Redevelopment anticipated this transaction between the HRA and The Limited, Inc. 2. The legal notice for public hearing was published on November 5, 1996. Alternative Recommendation: 1. Delay action and continue the hearing to a future date certain. 2. Do not hold the hearing. Discussion /Decision Mode: Based on the previous actions of the HRA, The Limited, Inc. anticipates a favorable response from the HRA at the November 18, 1996 meeting. Respectfully submitted, James Prosser Executive Director 0 JDP:ds HRA RESOLUTION NO. RESOLUTION AUTHORIZING THE SALE OF REAL PROPERTY AT 1700 WEST 78TH STREET WHEREAS, the HRA has adopted a modified redevelopment plan for the Richfield Redevelopment Project Area (the "Project Area ") and a tax increment financing plan for the Interchange Tax Increment Financing District (the "Tax Increment District "), (collectively, the "Plans "); and WHEREAS, the Plans contemplate the acquisition of certain real property located in the Project Area, whose address is 1700 West 78th Street, legally described as Tract A, Registered Land Survey No. 1037 Addition, Hennepin County, Minnesota, and generally known as the Naegele site (the "Property "); and WHEREAS, the HRA has entered into a contract with The Limited, Inc. (the "Developer ") for private redevelopment of the Property (the "Contract "); and WHEREAS, the Plans and Contract call for the HRA to assist the Developer with matters related to redevelopment; and WHEREAS, the HRA is authorized to sell real property within its area of operation after public hearing; and WHEREAS, the public hearing has been held after proper public notice; and WHEREAS, the Planning Commission of the City of Richfield has determined that the disposition of the Property for Project purposes is consistent with the Comprehensive Plan. NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority in and for the City of Richfield: 1. A public hearing has been held on the sale of the real property described above. 2. The Chairperson and Executive Director are authorized to execute any and all agreements required to effectuate this resolution. 3. The contract for private redevelopment contains terms and conditions for the sale. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 18th day of November, 1996. Thomas E. Harms, Chair 0 ATTEST: Vern Luettinger, Secretary • HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 73 Agenda November 18, 1996 Issue Statement: Identification of consultants to partner in the development of a coordinated planning and redevelopment strategy at Richfield Lake. Background: The Minnesota Department of Transportation (MnDOT) must improve 1 -35W and Crosstown Highway 62. In conjunction with these improvements, significant work would be performed in the 1 -35W /Crosstown Commons area. The highway modifications would result in an increase in stormwater runoff and the need for additional stormwater holding capacity. A number of options are available to accommodate the need for additional stormwater holding. One option suggested by MnDOT would be the removal of a number of apartment buildings in the immediate area north and west of Richfield Lake. MnDOT concurs with staff that alternatives to the removal of apartments needs to be explored and implemented if possible. Devising storm water retention plan for Richfield Lake appears to be a desirable alternative. With the potential of enlarging Richfield Lake, it is also appropriate to give attention to development opportunities in that area. A conceptual plan has been prepared and refined by the Planning Commission with the assistance of Tom Martinson. The HRA and City Council received a report on the outcomes of both these undertakings. The concepts from the Martinson work have become the basis for evaluating a possible development strategy that includes retail and housing in the context of an urban center. An effective approach when taking on a complex project of this scope is to rely on specialized development and planning services provided by consultants. The HRA authorized Hoisington Koegler to provide planning services and requested staff to solicit interest from developers. Developers were sought based on the attached RFQ. The developers solicited were: CSM Corporation, Frauenshuh Companies, Opus Corporation, Ryan Construction, United Properties, and Hoyt Properties. A copy of the proposals submitted from CSM and Ryan are attached. The others, although interested, felt that their present commitments and the unique retail /housing opportunity may not match their development strengths. Recommended Motion: Select CSM Corporation as the development consultant and authorize staff to develop • a scope of service and supporting agreement for the Richfield Lake area. Basis of Recommendation: 1. A partnership at the beginning of this complex project substantially increases the opportunity for success and links planning strategy to implementation. 2. MnDOT has expressed a need to implement a road improvement strategy in three years for 1 -35W and Crosstown Highway 62. 3. Tom Martinson's land use concepts have identified significant potential population growth opportunities at Richfield Lake. 4. Sid Inman, Publicorp, has confirmed that CSM is financially capable. Ryan is also capable. 5. CSM's West Ridge development which is presently underway in Minnetonka near 1 -394 and Hopkins Crossroads is being cited as very successful. The development represents a blend of retail and a variety of housing types (Ryan is an equally successful developer, however, their strength is more in office /retail combinations). 6. CSM has performed well with the Shops at Lyndale and has developed a knowledge base of Richfield. Alternative Recommendation: 1. Select Ryan Construction. 2. Solicit development interest from other developers. 3. Defer action. Discussion /Decision Mode: The HRA will be presented with scope of service agreements in January. Respectfully submitted, James D. rosser Executive Director JDP:ds October 14 = 2:30 p.in. to 3:30 pan. Oral RFQ - Richfield `Lake Developer Consultan -' Search AGENDA Ryan Companies 700 International Centre 900 Second .1xrnne South '.\Minneapolis. MN 55402-335- 61°x336 -1'00 phone 013:33- -555? fay October 21, 1996 VIA MESSENGER Mr. Bruce Nordquist Housing and Redevelopment Manager City of Richfield 6700 Portland Avenue South Richfield, MN 55423 RE: RICHFIELD LAKE REDEVELOPMENT -- RICHFIELD, MN Dear Bruce: Buildbu,Lastin; Rchitionships I am happy to present the following list of qualifications to you in hopes of your consideration of Ryan Companies as the Developer Consultant for the Richfield Lakes Redevelopment. We are excited about the possibility of working with the City and surrounding neighborhoods to create a truly unique mixed use opportunity for this community. Ryan envisions a mixed use of out patient medical, residential, commercial and independent and assisted living elderly housing for this area. We hope to restore the Richfield Lake as a viable wetland based ecosystem, and provide a gathering place and recreation area for Richfield residents. Through the use of consistent architectural themes, we would strive to create a visual aesthetic that provides an identity to the redevelopment area and greater community. Proiect Team The lead person for the Project Team will be William McHale. Bill has over 15 years of experience in the development of over 4,000,000 square feet of office and retail properties in Minnesota, Iowa, Illinois and Arizona. This includes over a dozen community shopping centers. Bill will coordinate the redevelopment of all components of the project. Bill will oversee and coordinate the development activities of Mr. Bruce Nedegaard of Nedegaard Custom Homes and Mary Tjosvold, Ph.D. of Mary T., Inc. Bruce will facilitate the design and construction of any single and/or multi - family residential housing. Mary will be very involved in the design and operation of senior assisted and independent living facilities. Bruce's (9 firm will be providing the construction of these facilities. h int"d r (I'd Pal" E) J: \DE V \TPPU.TR \961028. DOC /SE W 1), -,i'rn Bnild Real Estate Development 111-opert. Mana"'e ment • Medical Buildin <,,s Waste Atana�,enieut Mr. Bruce Nordquist October 21, 1996 Page 2 Architectural services for the senior housing component will be provided by Mr. Lou Moran of Short, Elliott, Hendrickson, Inc. The townhome and multi - family housing component will be designed by Mr. Wayne Bishop of Walsh Bishop Associates. Any retail, medical or office redevelopment will be designed by Ryan Companies in -house architectural staff. Civil Engineering, traffic analysis, land use planning and wetlands assessment services will be provided by Mr. Richard Koppy of RLK Associates, Ltd. Surveying services will be provided by Mr. Dennis Marhula of Westwood Professional Services. This Team has a proven track record of completing complex projects on time and within budget. Each member of the Team was chosen based on their commitment to providing a quality project and a satisfied customer. Each member has demonstrated over time that they have the abilities to work with a variety of interest groups to create a final product which not only meets, but exceeds the expectations of everyone involved. Each of the Team members has the financial and human resources to undertake a project of this nature and scope. Ryan Companies has been involved with many mixed use projects in recent years. While most of these developments have combined various elements of office, retail and medical uses, a few recent projects involve residential uses. Ryan recognizes the national trend toward livable communities and the demand for elderly housing. As such, an increasing number of our projects will involve these components. If you have any questions or comments or would like to meet to discuss our unique qualifications further, please contact me directly at 336 -1204. I look forward to working with you, the City and its residents in the redevelopment of this key land parcel. Sincerely, William J. McHale Vice President Enclosures c: Fred Hoisington Bruce Nedegaard Mary Tjosvold, Ph.D. Tom Palmquist J:\DEV\TPP\LTR \961028.DOC /SEW • • • Selected Project List Ryan Companies • Maplewood Retail, Maplewood, MN -- 250,000 s.f. of retail with 4.6 acres of residential • Hartford Place, Eden Prairie, MN -- 194,000 s.f. of retail, with 25 lots of high -end single family residential, 58 units of high -end townhomes, and 120 units of market rate townhomes. • Waterford Plaza, Plymouth, MN -- 135,000 s.f. of retail, with two high rise office towers totaling 481,000 s.f. • Mercy Medical Clinic, Marion, IA -- 13,000 s.f. • Twin Lakes Health, Roseville, MN -- 66,434 s.f. • Iowa Eye Center, Cedar Rapids, IA -- 26,550 s.f. • Deer Ridge, Cedar Rapids, IA -- 40 unit elderly housing • Southview Gables, Inver Grove Heights, MN -- 415 units of apartments • Abitare, Maple Grove, MN -- 72 units of apartments • Hilltop Manor, Minneapolis, MN -- 54 units, Section 8 Senior Housing • Henry Hill Apartments, Granite Falls, MN -- 54 units, Section 8 Senior Housing • Rappahannock Flats, Minneapolis, MN -- 41 units apartments • Yorkdale Townhomes of Edina, Edina, MN -- 90 units, Section 8 Multi -tenant HUD Housing • Channel View Apartments -- 110 units of apartments • Birch Court Apartments -- 108 units, Section 8 Multi -tenant Housing Nedegaard Custom Homes • Riverplace Apartments, Charleston, NC -- 466 units • Askov Senior Housing, Askov, MN -- 28 units • Avon Senior Housing, Avon, MN -- 16 units • Brightondale Senior Housing, New Brighton, MN -- 72 units • Northcross Town Estates, Coon Rapids, MN -- 58 units J:\DEVMM\NflSC\RYANPRO.DOC /SEW • Willow Creek Townhomes, Coon Rapids, MN -- 24 units • 40 -60 custom homes per year Mary T., Inc. Various senior assisted living /independent living, including: • The Villas of Caroline -- 30 units of senior housing • Camilia Rose Convalescent Center -- skilled nursing services for 94 people • Margret Place -- 72 units of senior housing • Camilia Rose Group Home -- assisted living for 35 people who have a primary diagnosis of mental retardation • Six Acres -- a Section 8 housing development with 14 townhomes 7: \DEV\WJMUvIISC\RYANPRO.DOC /SEW r� References Mr. Joe Hoesley First Bank, N.A. 601 Second Avenue South Minneapolis, MN 55402 -4301 (612) 973 -2722 Mr. Tony Pasko Norwest Bank Minnesota, N.A. 425 East Hennepin Avenue Minneapolis, MN 55470 -2060 (612) 667 -1196 Mr. Chris Enger City of Eden Prairie 8080 Mitchell Road Eden Prairie, MN 55344 -2230 (612) 949 -8300 Mr. Greg Konat City of Burnsville 100 Civic Center Parkway Burnsville, MN 55337 -3817 (612) 895 -4400 Mayor Willis Branning City of Apple Valley 13775 Guild Avenue Apple Valley, MN 55124 (612) 953 -2533 Councilmember Walter Dziedzic City of Minneapolis 350 South Fifth Street Minneapolis, MN 55415 -1318 (612) 673 -2003 Mr. Kyle Hansen First Bank, N.A. 601 Second Avenue South Minneapolis, MN 55402 -4301 (612) 973 -4081 Mr. Jim White MCDA 105 South Fifth Avenue, Suite 600 Minneapolis, MN 55401 -2534 (612) 673 -5170 Mr. Mike Franzen City of Eden Prairie 8080 Mitchell Road Eden Prairie, MN 55344 -2230 (612) 949 -8300 Mr. Richard Kelly City of Apple Valley 14200 Cedar Avenue Apple Valley, MN 55124 (612) 953 -2500 Mr. Kevin Frazelle City of Cottage Grove 7516 80th Street South Cottage Grove, MN 55016 -3195 (612) 458 -2800 LI ■ ■ JADEV\WJM\MISC\RYANREF.DOC /SEW Kean Companies ;00 International Center 800 Second Avrnue South Minneapolis, XIN 55402 -335' (i13!336-1200 Phone fb6121-3337-5552) fax October 18, 1996 Mr. John Dean Kennedy & Graven, Chartered 200 South Sixth Street 470 Pillsbury Center Minneapolis, MN 55402 RE: RICHFIELD LAKE QUALIFICATIONS 2% 1 Building Lasting Relationships Mr. Sid Inman Ehlers and Associates, Inc. 90 South Seventh Street 2950 Norwest Center Minneapolis, MN 55402 REDEVELOPMENT - DEVELOPER FINANCIAL Dear Messrs. Dean and Inman: At the request of Bruce Nordquist of the City of Richfield, I am enclosing the last two years' financial information on Ryan Properties, Inc., and a brochure which highlights the last five years. Please note that Ryan Properties, Inc., is the parent company of Ryan Companies. I have also enclosed a copy of Ryan's corporate brochure. If you have any questions or comments regarding this financial information, please contact Tim Gray, the Vice President/CFO of Ryan Properties, Inc. Tim may be reached directly at 336- 1230. Thank you for your consideration. Sincerel T omas P. Palmquist Director of Retail Development Enclosures c: Bruce Nordquist City of Richfield Fred Hoisington, Hoisington Koegler Group, Inc. Tim Gray Bill McHale JADENTPP\LTR \961021.D0GJLU Printed ou 11-. -led Pup- Design Build • Real Estate Development •. Property Management • Medical Buildings Waste Management Celebrating 20 Years of Serving You CSM Corporation 2575 University Ave. W., Suite 150 - St. Paul, MN 55114 -1024 6121646 -1717 - FAX 6121646-2404 • October 18, 1996 Mr. Bruce Nordquist Housing & Redevelopment Manager City of Richfield 6700 Portland Avenue Richfield, Minnesota 55423 -2599 Re: Request for Qualifications Richfield Lake °Developer Consultant Search Dear Mr. Nordquist: Thank you very much for inviting us to participate in your Consultant search for the Richfield Lake Redevelopment Project. I enjoyed our initial meeting several weeks ago, and also enjoyed the opportunity getting back together with you again on October 14 to formally review the • project and the Request for Qualifications. We understand that the scope of the project initially involves the selection of a developer to act in a consultative role with the City and its other planning, legal, and financial consultants to formulate a plan for the redevelopment of the Richfield Lake area that meets the long term goals of the City, the short term objectives of the imminent highway modifications, and as also a plan that can be developed. It is our understanding that this initial phase may last anywhere from 1 to 3 years. Subsequent to the formulation of the plan for redevelopment, it is our understanding that the Developer Consultant would than be afforded the opportunity to implement the plan as a Master Developer, together with other members of the development team as identified in the enclosed Request for Qualifications. We are excited about participating in this new redevelopment project in Richfield. We believe that we have uniquely distinguished ourselves as qualified developers, capable of managing the complex task of redevelopment that is presented by the Richfield Lake project. The joint efforts of CSM and the City of Richfield in the redevelopment of the Shops at Lyndale area into the successful project that it has already become, is just one sample of the type of project that we can complete, but it is not the only project which demonstrates our abilities to work on complex public /private ventures that include long lead times and significant community participation. A short list of projects that are similarly complex in nature include the West Ridge Market project in • Minnetonka, and the University Industrial Park in Minneapolis. These projects are described more fully in the enclosed statement of qualifications. One other factor that would make our team uniquely qualified is the participation of the Rottlund Company as the developer for the housing component. Our experience in working directly with Rottlund in a similar capacity on the West Ridge Market project, has shown us that this strategic alliance can produce a formidable development team, which in the case of the West Ridge project, will be responsible for the development of over 250,000 square feet of new retail development, and over 212 owner occupied housing units in a variety of configurations, including high -end condominiums, townhomes, and affordable townhomes. As highlighted in the enclosed qualifications, Rottlund's reputation and experience in developing housing is second to none in the Twin Cities, and the combination of their expertise in the housing component, together with our experience in acting as master developer to coordinate the overall development activities and the public /private partnership makes the selection of CSM as the Richfield Lake Developer Consultant a smart decision for the City of Richfield. The third component of our Development Team is the Architectural firm of Tushie Montgomery & Associates, Inc. (TMI). TMI has been involved in a number of development projects similar to the Richfield Lake project, and has worked directly with CSM and Rottlund in other projects. Including West Ridge Market, the Shops at Lyndale, and several other projects. Their attached qualifications highlight TMI's commitment to design excellence and project feasibility. We understand that the selection process includes interviews if necessary to be scheduled by you during the week of October 28th to November 1 st, with the selection of the Consultant as scheduled for the HRA Board Meeting on November 18, 1996. In the meantime, should you have any questions regarding any of the enclosed material, please do not hesitate to contact me. We look forward to being involved in the selection process, and ultimately to our selection as the Developer Consultant for the Richfield Lake project. incerely yours, Murray Kornber Acquisitions & inancing cc: Dav Carland Gary Tushie ( Tushie Montgomery) Tim Whitten (Rottlund Company) Enclosures • 0 RICHFIELD LAKE REDEVELOPMENT DEVELOPER CONSULTANT SEARCH STATEMENT OF QUALIFICATIONS - CSM INVESTORS, INC. OCTOBER 21,1996 • • The Development Team The CSM Development Team consists of three key components. The first is a CSM Investors, Inc., who will act as Master Developer, and as the lead Developer Consultant for the Richfield Lake project. CSM Investors, Inc. is an affiliate of CSM Corporation, which has been in existence for twenty years. Enclosed as Exhibit A is a real estate resume for CSM Corporation, and its sole shareholder Mr. Gary Holmes. The lead person from CSM will be Mr. Murray Kornberg, who has over ten years of development and redevelopment experience in the Twin Cities Metropolitan area. Mr. Kornberg is a Vice President of CSM Investors, Inc. CSM owns and manages in excess of 4,000,000 square feet of commercial space, 2,000,000 square feet of retail space, and 4,000 apartment units. CSM will form a strategic alliance with The Rottlund Company, Inc., who will be responsible for providing development expertise for the residential component of the Richfield Lake redevelopment area. The Rottlund Company is known as one of the Twin Cities finest residential developers. The lead person for The Rottlund Company will be Mr. Tim Whitten, whose professional resume is attached as Exhibit B, other members of the Rottlund team include Todd Stutz, the Vice President and Director of The Rottlund Company, Inc., and Richard Palmiter, the Land Development Manager, whose professional resume is attached as Exhibit C. The third key member of the CSM Development Team is the architectural firm of Tushie- Montgomery & Associates, Inc. The lead person for Tushie- Montgomery will be Mr. • Gary Tushie, the principal owner of the firm. The Tushie- Montgomery team also includes Mr. Wilson Montgomery, who has over thirty -eight years of experience in the field, and Mr. Thomas Moorse who has eight years of architectural experience. A brief history of the firm is attached as Exhibit D. Also enclosed, as Exhibit E, is a partial list of Tushie- Montgomery projects. The unique combination of the development expertise represented by these three firms, in particular their past experience in complex mixed use development projects that involve significant public /private partnership, makes the CSM Development Team highly qualified not only to be the Developer Consultant for the City of Richfield, but also to be the developer to make the development plan a reality. Each of the team leaders identified above, together with their respective organizations, have significant experience in complex projects of the type contemplated by the Richfield Lake redevelopment, and understand that projects of this nature may require several months (if not years) of involvement prior to the establishment of a plan that can actually be implemented. Each of the three primary team members is prepared to dedicate the necessary time and their respective corporate resources to the redevelopment project, on the assumption that a developable plan will be implemented, that will lead to the recouping of these significant up front costs through the development process, and the actual implementation of the plan. The enclosed exhibits identify the experience that each of the team leaders has had with mixed use projects of the type contemplated by the Richfield Lake redevelopment. • iPrior Experience with Mixed -Used Developments West Ridge Market The Development Team represented by CSM, Rottlund and Tushie- Montgomery has had direct experience in working on a significant mixed use development project in the last year and a half, West Ridge Market located in Minnetonka, Minnesota. This project, located on approximately 62 acres of the northwest corner of Interstate 394 and County Road 73 involved the acquisition 63 individual single family homes, the relocation of the 33,000 square foot Oak Knoll Lutheran Church, substantial site preparation (including asbestos abatement, well removal, and the demolition of existing improvements), significant site grading and soil correction, utility installation, and public improvements (including lift stations, public streets, and shared NURP' ponding for drainage purposes). The development of the project consists of five separate components, including a 257,000 square foot retail shopping center anchored by Galyan's Trading Company, 212 units of owner occupied condominiums and townhomes developed by Rottlund, a 64 unit affordable apartment building developed by CSM, and 126 units of a senior housing developed by CommonBond Communities and Twin City Christian Homes. For the West Ridge project CSM acted as a Master Developer, coordinating the acquisition of all the property, all of the necessary site work to prepare each of the component parcels for development, and for the purposes of negotiating the development • contract and related agreements with the City of Minnetonka. Tushie - Montgomery was actively involved in the development of the project, as the project architect for the Galyan's store, and CSM's architect for the development of the affordable apartment project. A key component of the West Ridge project is the central plaza area, incorporating an existing and enhanced wetland that was retained as part of the development, with a shared NURP pond, used by all of the project components for storm water retention and management. The public plaza that links these two water features, includes a water tower similar in architecture to those located around Lake Minnetonka, and a public boathouse pavilion, that will be used by the City's Parks Department fora variety of functions in all seasons. From this central plaza, a network of pedestrian and bike trails crisscrosses each of the components, linking them all to each other, the central plaza, and ultimately to the transit hub located at County Road 73 and Interstate 394. This trail system also links the new redevelopment, to Oberlin Park located immediately adjacent to the development, and to the existing residential neighborhood to the north of the Park, which remained through the redevelopment activity. The West Ridge Market project was awarded 1996 City Achievement Award by the League of Minnesota Cities, and was one of the pilot projects selected by the Metropolitan Council for the Livable Communities Grant Program. A brochure for West Ridge Market is enclosed as Exhibit F. 9 Shops at Lyndale In addition to the development of West Ridge Market, CSM has also been involved in redevelopment activities of a similar complex nature, including the Shops at Lyndale, which is a mixed use retail and restaurant development located Interstate 494 and Lyndale Avenue in Richfield, Minnesota. The Shops at Lyndale project included the acquisition of approximately 25 separate parcels of property, in cooperation with the City of Richfield. The acquisition of the property, which included many operating businesses, required a close cooperation between the City, CSM, and city relocation experts, to allow for the orderly transition for prior occupants and tenants of the property. CSM was able to work with a complex environmental impact to the soil and groundwater beneath the redevelopment property, yet still complete the development on a timely basis. The project contains in total 240,000 square feet of retail and restaurant uses, and was a model of economic redevelopment along the high traffic high visibility Interstate 494 quarter. That redevelopment team included CSM Investors, and Tushie- Montgomery as the project architect. University Industrial Park CSM is currently involved in the development of approximately 30 acre parcel of land acquired from Union Pacific Railroad immediately adjacent to the University of Minnesota, in southeast Minneapolis. This area has been the focus of a significant planning effort by the City of • Minneapolis and the Minneapolis Community Development Agency (MCDA). CSM worked closely with the MCDA, the Southeast Economic Development (SEED), neighborhood groups and the Southeast Business Association (SEBA) incorporating CSM's proposed mulit- phased development into the overall Master Plan for the area. This mixed use development as proposed for the entire area includes industrial, retail, and housing components. CSM is currently developing one of the industrial sites. CSM's current plan includes the construction of a total of 425,000 square feet in four phases over the next several years of a variety of commercial/ industrial uses, including the first 50,000 square foot facility, which will be the new corporate home for Pace Laboratories. This project involved significant cooperation between the developer, the City, and the neighboring business and residential groups, substantial public input into the development of an overall Master Plan, together with substantial infrastructure improvements, including public roadways, shared drainage facilities, and the abandonment of existing railroad improvements. The site also contains a significant environmental contamination, which CSM, the MCDA, and the Railroad are working together cooperatively to remediate in accordance with state and federal requirements. Arbor Pointe The Rottlund Company recently completed the Arbor Pointe Planned Community located in Inver Grove Heights, Minnesota. The development consists of over 400 acres, which includes 60 acres of commercial, including hotel, neighborhood business and office, and 230 acres of residential property. The residential portion of Arbor Pointe includes senior housing, apartment sites, high and medium density housing and single family homes. This mixed use development has not only a wide variety of housing but also bike trails and parks to offer the homeowner. A brochure for Arbor Pointe is attached as Exhibit G. Centennial Lakes Tim Whitten has also been involved in the designing and planning of The Centennial Lakes mixed use development, located in Edina, Minnesota. Mr. Whitten was the lead design architect and a partner of architectural and planning firm for housing portions of development and a member of the consulting development team. • • Financial Statements Attached please find copies of correspondence we have sent to Sid Inman and John Dean, that included the Financial Statements of the teams two lead developers, CSM Investors, Inc. and The Rottlund Company. The City of Richfield has recently reviewed the Financial Statements of CSM Investors, Inc., in connection with the Shops at Lyndale redevelopment. 0 Celebrating 20 Years of Serving You -1CSM Corporation 2575 University Ave. W., Suite 150 • St. Paul, MN 55114 -1024 6121646 -1717 • FAX 6121646 -2404 October 21, 1996 Mr. Sid Inman By Messenger Ehlers & Publicorp 90 South Seventh Street 2950 Norwest Center Minneapolis, Minnesota 55402 Re: Richfield Lakes Redevelopment Project Developer Consultant Request for Qualifications Dear Sid: In connection with the City of Richfield's selection process for Developer Consultant for the Richfield Lake Redevelopment project, enclosed please find December 31, 1995 financial statement for CSM Investors, Inc. ( "CSM"), together with a 1996 Annual Report and Form 10 -Q for The Rottlund Company, Inc. While The Rottlund Company, Inc. statements are a matter of public record, the CSM financial statements are not, and are being provided to you solely for the purpose of conducting your analysis and investigation in order to assist the Richfield HRA in selecting a Developer Consultant for the Richfield Lakes project. As such, these financial statements should be held confidential by you, and not disclosed to anyone outside of your firm, and should not become part of the public file at the City of Richfield. We ask that upon the completion of your review of these financial statements, and the making of your recommendation to the Richfield HRA, that you return the enclosed CSM financial statements to us. Should you have any questions regarding these financial statements, you may contact me, or our Chief Financial Officer Mr. Jim Ottenstein. Sincerely yours, lt&4 Aa �& 0 AA7 Murray Kornberg Acquisitions & Financing cc: Jim Ottenstein John Dean Bruce Nordquist IEnclosures MK/cm References A. CSM Investors, Inc. Bank References 1. Kyle Hansen First Bank National Association First Bank Place 601 Second Avenue South Minneapolis, Minnesota 55402 (612) 973 -4081 2. Ed Klune Firstar Bank of America 101 East Fifth Street St.Paul, Minnesota 55101 (612) 291 -6851 City Officials 3. Bruce Palmborg is City of Richfield 6700 Portland Avenue Richfield, Minnesota 55423 (612) 861 -9760 4. James Prosser City of Richfield 6700 Portland Avenue Richfield, Minnesota 55423 (612) 861 -9760 5. Ron Rankin City of Minnetonka 14600 Minnetonka Boulevard Minnetonka, Minnesota 55345 (612) 939 -8200 6. Geoff Olson City of Minnetonka 14600 Minnetonka Boulevard Minnetonka, Minnesota 55345 (612) 939 -8200 7. David Childs City of Minnetonka 14600 Minnetonka Boulevard Minnetonka, Minnesota 55345 (612) 939 -8200 8. Jim Forsyth Minneapolis Community Development Agency Crown Roller Mill, Suite 600 105 Fifth Avenue South Minneapolis, Minnesota 55401 (612) 673 -5273 9. Craig Waldron City of Oakdale 1584 Hadley Avenue North Oakdale, Minnesota 55128 (612) 730 -2818 10. Dwight Picha City of Woodbury 8301 Valley Creek Road Woodbury, Minnesota 55125 (612) 739 -5972 B. The Rottlund Company Bank References 1. Kevin Hake Bank of Boston 115 Perimeter Center Place NE, Suite 500 Atlanta, Georgia 30346 (770) 390 -6584 2. Kyle Hansen First Bank National Association First Bank Place 601 Second Avenue South Minneapolis, Minnesota 55402 (612) 973 -4081 0 9 • CA 3. Tom Hansen Eastern Heights State Bank 7525 Currell Boulevard Woodbury, Minnesota 55125 (612) 736 -9973 4. Rob Wachholz Norwest Banks Old St. Anthony Office 425 East Hennepin Avenue Minneapolis, Minnesota 55414 -2060 (612) 667 -2655 5. Mark Novitzki Premier Bank 2866 White Bear Avenue Maplewood, Minnesota 55109 (612) 777 -7700 City Officials 6. Ron Rankin City of Minnetonka 14600 Minnetonka Boulevard Minnetonka, Minnesota 55345 (612) 939 -8200 7. Craig Waldron City of Oakdale 1584 Hadley Avenue North Oakdale, Minnesota 55128 (612) 730 -2818 8. Tom Link City of Inver Grove Heights 8150 Barbara - Avenue Inver Grove Heights, Minnesota 55077 (612) 457 -2111 9. Chris Engler City of Eden Prairie 8080 Mitchell Road Eden Prairie, Minnesota 55344 (612) 949 -8300 '• C. Tushie- Montiomery & Associates. Inc. Bank References 1. Virginia Coban First Bank, Eden Prairie, MN 300 Eden Prairie Center Drive Eden Prairie, Minnesota 55344 (612) 942 -2800 City Officials 2. James Prosser City of Richfield 6700 Portland Avenue Richfield, Minnesota 55423 (612) 861 -9760 3. Bruce Palmborg City of Richfield 6700 Portland Avenue Richfield, Minnesota 55423 (612) 861 -9760 4. Bob Erickson City of Lakeville 20195 Holyoke Avenue Lakeville, Minnesota 55044 (612) 985 -4400 5. Mike Franzen City of Eden Prairie 8080 Mitchell Road Eden Prairie, Minnesota 55344 (612) 949 -8300 • PARTIAL LIST OF CHURCH FACILITIES - PAGE 3 TUSHIE- MONTGOMERY & ASSOCIATES, INC. PROJECT NAME AND LOCATION EPIPHANY CATHOLIC CHURCH Normal, Illinois CALVARY UNITED METHODIST CHURCH Normal, Illinois ST. ALBAN'S EPISCOPAL CHURCH Edina, Minnesota WILSON MONTGOMERY • to DESCRIPTION A completely new church structure with a community room an kitchen and a new two story convent to house eight nuns. A small "A" frame church structure which was eventually expanded upon. Project included preparing design drawings for a new nave, narthex, altar area,loft choir area and an outdoor worship area. Recipient of the University of Illinois first award for the Architects short course on church planning. • • CSM Corporation, formerly Colonial Services & Management, Inc., was incorporated on December 3, 1976 under the laws of the State of Minnesota. It is engaged in the acquisition, development, leasing, financing, property management, and sale of real estate in Colorado, Illinois, Iowa, Kansas, Minnesota, Missouri, North and South Dakota, Wisconsin, Wyoming, and Oregon. CSM Corporation is a licensed real estate broker in the State of Minnesota. CSM Investors, Inc. was incorporated October 28, 1981. It's primary purpose is to acquire and /or develop real estate. CSM Investors relies on CSM Corporation for property management services. CSM is owned 100% by Gary S. Holmes. CSM and its affiliates are currently the owners, management, and leasing agents for over 4, 000 apartment and townhome units. In addition, CSM Corporation owns and manages numerous commercial properties including shopping centers, office /warehouse /showroom space, and industrial space totaling over 6, 000, 000 square feet. Development plans are currently underway for in excess of 1, 000 hotel /motel rooms including a Marriott Fairfield Suites Hotel in Eagan, Minnesota that is currently under construction. The CSM family of entities works with both national credit and local tenants. CSM has developed retail centers for Best Buy Stores, the nations' second largest publicly held consumer electronics and major appliance specialty retailer. Other national retailers include Baby Superstores, Sportmart, Blockbuster Video, Burlington Coat Factory, Michael's Crafts, Border's Books, Gaylan's Trading Company (The Limited), Lands End, Comp USA, Petsmart, Boston Market, Homeplace Stores, and Brinkers International to name a few. , In 1990, Mr. Holmes acquired 25% interest in Century Bank, a full- service banking facility located in Eden Prairie, Minnesota, and also serves as a director for the bank. Mr. Holmes is a 35% shareholder and a member of the Board of Directors of Norcraft Companies, Inc., Saint Paul, Minnesota, a manufacturer of kitchen cabinets which has sales in excess of $44 million. Mr. Holmes is a member of the Board of Directors of the Minneapolis Heart Institute and is on the Board of Directors of Abbott Northwestern Hospital in Minneapolis, Minnesota. He is a former shareholder and member of the Board of Directors of the Riverside Community Bank in Minneapolis, Minnesota. TIMOTHY WHITTEN Vice President, Architecture The Rottlund Company, Inc. EDUCATION Bachelor of Architecture, University of Minnesota Bachelor of Environmental Design, University of Minnesota PROFESSIONAL REGISTRATION / MEMBERSHIPS Registered Professional Architect in states of Minnesota, Maryland, Illinois, Wisconsin, Iowa, Pennsylvania National Council of Architectural Review Boards Certification American Institute of Architects Minnesota Society of American Institutes of Architects EXPERIENCE . The Rottlund Company, Inc., Roseville (1995 to present). Mr. Whitten, as Vice President, is responsible for Planning and Architecture for all divisions of The Rottlund Company, Inc.. He may also be involved with special projects, i.e. recently as Project Coordinator of a West Ridge market mixed use development in Minnetonka. is HRMA - Heise Reinen MacRae Associates Inc. (1989 - 1991). As Vice President and Partner, Mr. Whitten was responsible for Architecture, Planning, and Project Management in the areas of Master Planned Communities, Golf Clubhouse Architecture, Multi- Family and Hospitality Housing, and Golf Master Planning. Projects included private golf and country clubs and resort and residential communities in the Midwest. Also private and municipal golf clubhouses throughout the United States. Architectural Forunt (1984 - 1989). As Principal/Partner, Mr. Whitten was responsible for Land Planning, Architecture, Development Coordination of Single - Family and Multi - Family residential communities. Design and Project Management responsibilities for numerous residential projects, including Edinborough Village Housing and Centennial Lakes. Mr. Whitten specialized in Government Approval and Development Coordinator of projects for the largest Single - Family land developer and residential builder in the Twin Cities. TW /skh 10 -18 -96 Resume.doc INTRODUCTION The firm of Tushie- Montgomery & Associates, Inc., was founded in 1979 to provide architectural, landscape architecture and space planning services to private clients, developers and government agencies throughout the United States. The multi - disciplined staff includes architects, landscape architects, space planners, interior designers and graphic designers, as well as marketing support professionals. The success and acceptance of Tushie- Montgomery & Associates, Inc.'s, work is the result of a well organized approach to each project. Our ability to identify and fulfill our clients needs, the technical expertise of our staff, the integrity of our work, our ability to develop innovative solutions for each specific project while providing the best design for the budget dollars, and our strong project management, have lead to our reputation for excellence. Tushie- Montgomery & Associates, Inc., have considerable experience in mixed use projects as well as a diverse background in most building types. They are currently working on projects throughout the United States with total costs in excess of $80 million. Gary Tushie, President is a graduate of the University of Minnesota's Institute of Technology with degrees in both architecture and landscape architecture. He brings a unique design expertise to the firm with over 16 years experience. Vice President, Wilson Montgomery, has an architectural degree from the University of Illinois' school of architecture and has over three decades of experience in the architectural profession from initial design concepts to building construction completion. His in -depth experience adds a strong working foundation to the firm. In conclusion, Tushie- Montgomery & Associates, Inc., are dedicated to providing complete individualized professional services tailored towards completing projects on time and on budget. is PARTIAL LIST OF CHURCH FACILITIES ,PAGE 1 TUSHIE- MONTGOMERY & ASSOCIATES, INC. WOODRIDGE BAPTIST CHURCH Medina, Minnesota $ 1,700,000.00 EDEN PRAIRIE PRESBYTERIAN CHURCH Eden Prairie, Minnesota WESTWOOD BAPTIST CHURCH Excelsior, Minnesota • A one story (with lower level walkout), 16,500 square feet church facility including a theater /sanctuary with a sloped floor and raised stage and seating to accommodate 475 parishioners. Other building amenities include a large narthex for gatherings which is encompassed by a glass curtainwall, class- rooms, nursery, youth room, kitchen, offices, sound room and storage. Future expansion plans call for doubling the size of the theater, additional classrooms, offices, fellowship hall, gymnasium and additional parking. Building structure is concrete block walls, concrete floor and wood laminated beam roof. The exterior finish is brick, decorative concrete block and E.I.F.S. A one story (with lower level walkout), 21,900 square feet church facility including a sanctuary to accommodate 450 parishioners, classrooms, a large narthex for gatherings, kitchen, nursery, choir rehearsal room, offices, workroom, two -story youth room and fireside room. Site development includes an outdoor worship area and parking for 250 cars. Future expansion includes classrooms, a fellowship hall and gymnasium. Building structure is woodframe with a concrete block and precast concrete lower level. Building exterior finish is brick and E.I.F.S. Project included programming the church's space expansion needs for a 25,000 square feet facility and preliminary space planning to convert an existing warehouse space into the new church. This included a theater /sanctuary to accommodate 500, classrooms, narthex, youth room, nursery, offices, kitchen and activity space. PARTIAL LIST OF CHURCH FACILITIES - PAGE 2 TUSHIE- MONTGOMERY & ASSOCIATES, INC. FAMILY OF CHRIST LUTHERAN CHURCH Lakeville, Minnesota $ 700,000.00 EMERSON CONGREGATIONAL CHURCH Richfield, Minnesota $1,300,000.00 C`. CHAPEL HILLS CONGREGATIONAL CHURCH Edina, Minnesota FIRST BAPTIST CHURCH OF NORMAL Normal, Illinois • A one story 8,500 square feet new mission congregation church facility including a wor- ship hall to accommodate 350 parishioners, classrooms, kitchen, nursery, offices and storage. Future expansion includes additional classrooms, a new worship hall, offices, a fellowship hall and a daycare. Site develop- ment includes an outdoor worship area cov- ered by a tent structure, parking for 300 cars and a natural area for meditation. Building structure is woodframe with a pitched (over worship hall) and flat roof. Exterior finish is wood siding with a brick ledge for future brick. A two story 13,800 square feet new church facility which includes a worship hall for 250 parishioners, offices, classrooms, youth center, fellowship hall, kitchen, nursery, kindergarten space, choir room and storage. Site development includes parking for 120 cars and a large patio area for outdoor events. Building structure is block bearing walls for the lower level with a precast concrete floor. The upper level is wood frame with a pitched (over worship hall) and flat roof. Renovation of an existing church including roof repairs, kitchen remodeling, site drainage repairs. Project included expansion plans that were not executed. Complete renovation of the existing nave from a semi -round pew arrangement to an axial nave, which required removal of the stepped radial floor structure and the design and installation of a new floor. The nave interior was completely remodeled including lighting, lectern, pulpit and new pews. The mechanical system for the nave was also totally revised. PARTIAL LIST OF RETAIL PROJECTS - PAGE 1 TUSHIE- MONTGOMERY & ASSOCIATES, INC. GALYAN'S TRADING COMPANY (A Division of The Limited, Inc.) Richfield, Minnesota Minnetonka, Minnesota Woodbury, Minnesota Leawood, Kansas WHITE BEAR LAKE RETAIL White Bear Lake, Minnesota • VIDEO UPDATE Broadview, Illinois Northfield, Minnesota Stillwater, Minnesota North Oaks, Minnesota Savage, Minnesota Inver Grove Heights, Minnesota St. Paul, Minnesota Waite Park, Minnesota Seattle, Washington King County, Washington Silverdale, Washington Belvue, Washington Kent, Washington Springfield, Missouri is 100,000 square foot two (2) level interactive sporting goods store. Store is designed to promote an interactive retail environment incorp- orating a two (2) level climbing wall, batting cages, putting green, driving range, tennis court, and fly casting. Building includes a large two (2) story glass entry curtainwall, two (2) escalators, 18' clear height at each level and a 56' high atrium. Exterior materials include brick, natural stone and an ironwork scupltural wall. Two (2) large original artwork murals depicting world famous sporting events grace the building's North elevation. The building's structural system is steel beam and columns with a bar joist roof. Two (2) phase project which included 34,500 square feet in Phase One and 68,000 square feet in Phase Two. Complex is designed as village concept of European shopping where buildings are clustered around a central scheme of parking. Tenants include two (2) restaurants, video store, liquor store, multi- screen theatre, women's clothing stores, Italian deli /grocery and office space. 6,000 to 7,500 square feet prototype free- standing and in -line video rental retail stores. Projects are completed on CAD using prototype information developed by Tushie- Montgomery & Associates, Inc. and the Owner. PARTIAL LIST OF RETAIL PROJECTS - PAGE -2 TUSHIE- MONTGOMERY & ASSOCIATES, INC. •;• a_il • • •� DIAMONDHEAD MALL RENOVATION Burnsville, Minnesota Burnsville School System Facilities WATERFORD SHOPPING CENTER Shorewood, Minnesota • PETsMART Richfield, Minnesota Minnetonka, Minnesota Plymouth, Minnesota Maplewood, Minnesota RECYCLE NOW Mall of America Bloomington, Minnesota Renovation and re -use of an existing two (2) level 127,500 square foot retail shopping mall for alternative uses. Renovated uses include a 27,500 square foot daycare facility for Burnsville Community Daycare, 4,500 square feet of offices for Burnsville Community Daycare, 3,000 square feet of educational space for Burnsville Nicollet Junior High extended campus, 5,600 square feet for Shakopee Headstart program, 1,700 square feet for a Community Kitchen meals program, and 1,300 square feet for Burnsville Public Health ABE Childcare program. A 23,000 square foot strip retail center that included a 5,100 square foot Holiday Fuel and Convenience Store. Additional tenants included a 4,500 square foot Municipal Liquor Store, a 1,215 square foot drycleaners, a 5,040 square foot Video Update Store, a 2,530 square foot restaurant and an additional vacant space of 1,600 square feet. The building was designed with a residential character to fit the existing residential neighborhood. 25,000 to 30,000 square feet prototype free- standing and in -line wholesale pet food and supplies, pet grooming and veterinarian services in a retail store setting. Projects are completed on CAD using prototype information supplied by the Owner. Building exteriors are brick, decora- tive concrete block and dryvit. Building structure is load- bearing concrete block exterior walls with steel beams and columns and a bar joist roof. Ceiling height is 20' clear. Project included a complete renovation of an existing 3,000 square foot retail store specializing in selling recycled products. Renovation included offices, complete new retail sales space, educational space, store fixture design and a video wall. PARTIAL LIST OF RETAIL PROJECTS - PAGE -3 TUSHIE- MONTGOMERY & ASSOCIATES, INC. OFFICE DEPOT Brooklyn Center, Minnesota Eagan, Minnesota Eden Prairie, Minnesota Saint Louis Park, Minnesota Roseville, Minnesota Maplewood, Minnesota Livonia, Michigan Northville, Michigan Johnson City, Tennessee Kingsport, Tennessee Racine, Wisconsin Green Bay, Wisconsin Laffayette, Indiana State College, Pennsylvania Madison, Wisconsin Upcoming Stores: South Dakota North Dakota Utah New Mexico West Virginia Cleveland, Ohio (2 Stores) THE SHOPS AT LYNDALE Richfield, Minnesota $9,750,000.00 As 31,400 square feet prototype freestanding and in -line wholesale office products retail stores. Projects are completed on CAD using Owner supplied disks with prototype design and site specific information. Building exterior is brick, decorative concrete block and dryvit. Building structure is load bearing concrete block exterior walls with steel beams and columns and a bar joist roof. A two (2) phased 232,000 square feet retail power center. Phase One contains three major tenants, Best Buy (59,808 square feet), Sport - mart (43,000 square feet), and Comp USA (25,000 square feet). Phase Two includes two major tenants (30,000 square feet each) and in- line shops of approximately 40,000 square feet. Total site area is 17.36 acres. Building exterior is brick, dryvit and decorative concrete block. Building structure is load bearing concrete block exterior walls with steel beams and columns and a bar joist roof. Project was developed in a redevelopment district and involved the demoli- tion of several existing buildings. PARTIAL LIST OF RETAIL PROJECTS- PAGE 4 TUSHIE- MONTGOMERY & ASSOCIATES, INC. BEST BUY Richfield, Minnesota BEST BUY Inver Grove Heights, Minnesota BEST BUY Edina, Minnesota MINNEAPOLIS SOUND Mall of America Bloomington, Minnesota SPORTMART SHOPPING CENTER Minnetonka, Minnesota • 59,808 square foot prototype flagship consumer electronics retail store utilizing their newly developed designs. Project completed on CAD using Owner supplied disks with prototype design information. Project also included exterior entrance facade design. Building structure is load bearing concrete block exterior walls with steel beams and columns and a bar joist roof. 42,000 square feet prototype freestanding consumer electronic retail store. Project com- pleted on CAD computer using Owner supplied discs with prototype design information. Building structure is load bearing concrete block exterior walls with steel beams and columns and a bar joist roof. 16,000 square feet expansion to an existing 17,500 square foot freestanding consumer elec- tronic retail store. Building shell is concrete block and face brick with a bar joist roof. Prototype drawings were required to be modified to fit existing site conditions. 6,000 square foot specialty retail store with live music, a broadcast booth and DJ station, listen- ing booth and display area. Store features a glass block pyramid entrance with fiber optic lighting, large video wall, roving search lights and a mezzanine. Store theme is pop music orientated and is sponsored by recording artist "Prince ". 66,000 square foot strip shopping center with two major tenants, a 40,000 square foot Sport - mart and a 15,000 square foot Audio King. Building exterior is brick with metal standing seam entrance canopies. • • • PARTIAL LIST OF RETAIL PROJECTS - PAGE 5 TUSHIE- MONTGOMERY & ASSOCIATES, INC. BRAINERD MALL Renovation of an existing 232,000 square foot Brainerd, Minnesota interior regional mall. Renovation included exterior facade and entrance modifications, interior floor and ceiling treatments, seating areas, modifications to storefronts and public areas. FUN GALORE Prototype design for a 7,800 square foot child - Galleria Shopping Center rens play environment which included a snack Edina, Minnesota bar, store room, office, bathrooms, eating area, three party rooms and large play area with active play equipment. Prototype design included establishing product image, complete. color selections and all millwork design to be used as future standards for other location. YOUNG ELITES Complete store layout for an 8,000 square foot Rochester, Minnesota in line strip center store for children and teens clothing. Design included product displays, all material and color selections. THE CHILDREN'S STORE Prototype design for a 12,000 square foot Duluth, Minnesota children's clothing store. Design included estab- Fergus Falls, Minnesota lishing product image, complete color selections, Saint Cloud, Minnesota millwork design and product displays to be used Des Moines, Iowa as future standards for other locations. A free standing 5,500 square foot retail liquor LAKEVILLE LIQUORS store. Building exterior is brick with rock face Lakeville, Minnesota concrete block. Design included product dis- (Three Locations) plays, color and material selections and complete building design. CHAMPION AUTO STORE 2,000 square foot addition to an existing free Minneapolis, Minnesota standing retail auto parts store. Project included new display areas, office and complete new exterior of the building. LAKEVILLE SUPERETTE 10,000 square foot free standing convenience Lakeville, Minnesota store and gasoline station with attached multi- tenant space. Tenants included a butcher's shop and liquor store. Design included all tenant floor plans, color and material selections. PARTIAL LIST OF RETAIL PROJECTS -PAGE 6 TUSHIE- MONTGOMERY & ASSOCIATES, INC. FAIR MALL Fairmont, Minnesota MIDRIVERS MALL St. Peter, Missouri SAINT CLAIR MALL Alton, Illinois CENTENNIAL PLAZA Saint Cloud, Minnesota • VILLAGE SQUARE SHOPPING CENTER Saint Louis County, Missouri WESTLAKE MIXED USE COMPLEX Springfield, Illinois ESQUIRE THEATER SHOPPING CENTER Saint Louis, Missouri 70 CORPORATE PLAZA Saint Louis, Missouri VENTURE SHOPPING CENTERS Several locations throughout Midwest n Renovation of an existing 285,000 square foot interior mall. Renovation included exterior facade and entrance modifications, interior floor and ceiling treatment, seating areas, storefronts and opening roof into a 500' long skylight. Four major mall. Major tenant Famous Barr. Enclosed mall area 1 million square feet. Includes enclosed skating rink as part of mall. Structural system - poured concrete beam and column. Building exterior - brick. Four major mall. Major tenant - Famous Barr. Mall area is exterior. Renovation of a 70,000 square foot strip shop- ping center. Renovation included new front facade, creation of mini -mall and relocation of existing tenants. Renovation of an existing strip center. Renova- tion includes a new front facade and creation of a mini - mall. A mixed use complex which includes a retail shopping center, office space, condominiums and apartments. Renovation of an existing strip shopping center which includes a 50,000 square foot office building addition and a new front facade. 350,000 square foot factory outlet mall. One story in elevation, brick exterior. Site planning included development of strip shopping centers, hotels, office space, industrial space and fast food restaurants. Development of several 70,000 - 100,000 square foot strip centers for May Company outlet store "Venture ". Centers included Venture store as the main tenant. PARTIAL LIST OF APARTMENT PROJECTS - PAGE 1 TUSHIE- MONTGOMERY & ASSOCIATES, INC SOUTHWOOD APARTMENTS - 66 UNITS ELDERLY APARTMENTS HODAG - Grant Project Bloomington, Minnesota PRAIRIE VILLAGE APARTMENTS - 100 UNITS ELDERLY APARTMENTS Eden Prairie, Minnesota ITASCA CONGREGATE HOUSING - 100 UNITS ELDERLY APARTMENTS Itasca, Minnesota • APARTMENT BUILDING - 160 UNITS Hopkins, Minnesota APARTMENT BUILDING - 36 UNITS Anoka, Minnesota FOUR SEASONS APARTMENTS - 120 UNITS Plymouth, Minnesota FRANKLIN VILLA APARTMENTS - 40 UNITS Minneapolis, Minnesota • Three story, wood frame construction, elevators and underground garages. Responsibilities: Design, Construction Documents, Construction Supervision. Three story, wood frame construction, elevators and underground garages. Includes community room, game room, library, arts and crafts room, exercise room, and work shop. Responsibilities: Design, Construction Documents, Construction Supervision. Two story, wood frame construction, detached garages. Includes community room, dining area, tub room and arts and crafts. Four story, precast, elevators, swimming pool. Responsibilities: Design, Construction Documents, Construction Supervision. Three story, precast. Responsibilities: Design, Construction Documents, Construction Supervision. Three story, wood frame. Responsibilities: Design, Construction Documents, Construction Supervision. Three story, wood frame, underground parking. Responsibilities: Design, Construction Documents, Construction Supervision. SENIOR CITIZEN'S APARTMENTS - • El 0 PARTIAL LIST OF APARTMENT PROJECTS - PAGE 2 TUSHIE - MONTGOMERY & ASSOCIATES, INC 100UNITS Maple Lake, Minnesota RICE - MARION APARTMENTS - 280 UNITS Saint Paul, Minnesota WAYZATA VILLA APARTMENTS - 160 UNITS Wayzata, Minnesota SHELARD VILLA APARTMENTS - 140 UNITS Saint Louis Park, Minnesota VILLAGE SQUARE APARTMENTS - 140 UNITS Plymouth, Minnesota EDENVALE APARTMENTS - 162 UNITS Eden Prairie, Minnesota R FINDELL -CLARK DEVELOPMENT - 60 UNITS Edina, Minnesota WEST SIDE II APARTMENTS - 120 UNITS Hopkins, Minnesota Two story, wood frame. Responsibilities: Design, Construction Documents, Construction Supervision. Three story, wood frame, elevators, swimming pool. Responsibilities: Design, Construction Documents, Construction Supervision. Three story, wood frame, elevators, underground parking, swimming pool. Responsibilities: Design, Construction Documents, Construction Supervision. Three story, wood frame, elevators, underground parking, swimming pool. Responsibilities: Design, Construction Documents, Construction Supervision. Three story, indoor swimming pool. Responsibilities: Design, Construction Documents, Construction Supervision. Three story, wood frame, elevators, underground parking, swimming pool. Responsibilities: Design, Construction Documents, Construction Supervision. Condominiums and Townhouses, Two stories, underground and attached garages. Responsibilities: Design, Construction Documents, Construction Supervision. Three stories, elevators, underground parking. Responsibilities: Design, Construction Documents, Construction Supervision. • • PARTIAL LIST OF APARTMENT PROJECTS - PAGE 3 TUSHIE- MONTGOMERY & ASSOCIATES, INC DUCKWOOD APARTMENTS - 155 UNITS Eagan, Minnesota BAY POINT APARTMENTS - 160 UNITS Duluth, Minnesota Three story, wood frame, elevators, underground parking, swimming pool. Responsibilities: Design, Construction Documents, Construction Supervision. Three story precast, elevators, underground parking. Responsibilities: Design, Construction Documents, Construction Supervision 0 • • PARTIAL LIST OF RETAIL SPACE PLANNING AND INTERIOR DESIGN PROJECTS - PAGE 1 TUSHIE - MONTGOMERY & ASSOCIATES, INC. BETHANY ACADEMY Diamondhead Mall Burnsville, Minnesota DIAMONDHEAD MALL RENOVATION Burnsville, Minnesota Burnsville School System Facilities SPORTMART SHOPPING CENTER Minnetonka, Minnesota ORLEANS RETAIL CENTER Stillwater, Minnesota BEST BUY COMPANY Inver Grove Heights, Minnesota BEST BUY COMPANY Edina, Minnesota LAKE JAMES MALL Center, Missouri Complete renovation of an existing 100,000 square foot retail space for conversion to a Kindergarten through 12 private school. Renovation included space planning for all new spaces, exterior renovation and site plan modifications to add outdoor play areas. Renovation and re -use of an existing two (2) level 127,500 square foot retail shopping mall for alternative uses. Renovated uses include a 27,500 square foot daycare facility for Burnsville Community Daycare, 4,500 square feet of offices for Burnsville Community Day -c- are, 3,000 square feet of educational space for Burnsville Nicollet Junior High extended campus, 5,600 square feet for Shakopee Headstart program, 1,700 square feet for a Community Kitchen meals program, and 1,300 square feet for Burnsville Public Health ABE Childcare program. A 66,000 square foot multi- tenant strip shopping center which includes a 40,000 square foot Sportmart, a 15,000 square foot Audio King and a 9,000 square foot Ethan Allen. A 35,000 square foot neighborhood shopping center which includes a food and fuel service station, two (2) restaurants, a daycare, auto parts store, video store, hair salon and a branch bank. 36,258 square feet free - standing prototype consumer electronics retail outlet. Addition to an existing free - standing consumer electronics retail outlet to total 45,000 square feet as a superstore prototype. 96,300 square foot retail shopping center which includes a free - standing convenience store and gas station. A 40,000 square foot grocery store and 8,000 square foot drug store and several in -line small retail shops. • • PARTIAL LIST OF RETAIL SPACE PLANNING AND INTERIOR DESIGN PROJECTS - PAGE 2 TUSHIE- MONTGOMERY & ASSOCIATES, INC. YOUNG ELITES Miracle Mile Shopping Center Rochester, Minnesota LAKEVILLE SUPERETTE Lakeville, Minnesota LAKEVILLE LIQUORS Lakeville, Minnesota HERITAGE PHOTOGRAPHY Burnsville, Minnesota THE CHILDREN'S STORE Duluth, Minnesota Fergus Falls, Minnesota Saint Cloud, Minnesota Des Moines, Iowa PLAYSTATION Galleria Shopping Mall Edina, Minnesota CHAMPION AUTO STORE Minneapolis, Minnesota SECOND TO NONE Burnsville, Minnesota VENTURE SHOPPING CENTER Several locations throughout the Midwest 20,000 square foot children's and pre -teen specialty wear shop. 15,000 square foot convenience strip center that includes a 5,000 square foot convenience store and gas pumps, a 4,000 square foot municipal liquor store, a 2,000 square foot butcher shop and deli. A 5,800 square foot free- standing municipal liquor store that was designed for future expansion. Design includes all millwork, fixtures and equipment. 10,000 square foot photography studio that includes a reception area, dressing rooms, portrait studio, commercial photography studio, workroom, storage room and lounge. 12,000 square foot prototype children's wear retail shop. Design includes all interior finishes, fixture design and millwork. 7,800 square foot prototype design for a children's play facility which includes a snack - bar, party rooms, multi level play equipment and toddler area. 4,000 square foot free - standing retail automotive parts store that includes a three (3) bay service area, retail parts sales floor, customer waiting lounge and offices. 8,100 square foot consignment store for second -hand women's clothing. 40,000 square foot prototype design for a discount merchandiser which is a division of May Corporation. • 0 0 PARTIAL LIST OF RETAIL SPACE PLANNING AND INTERIOR DESIGN PROJECTS - PAGE $ TUSHIE- MONTGOMERY & ASSOCIATES, INC. W.W. GRAINGER Bloomington, Minnesota REGENT AVIATION Saint Paul, Minnesota Renovation of an existing 20,000 square foot building to be used as a retail store for construction equipment and parts sales. 1,000 square foot retail pilots shop selling aircraft related equipment, parts and clothing. 0 .7 PARTIAL LIST OF COMMERCIAL PROJECTS - NEW PROJECTS - PAGE 1 TUSHIE- MONTGOMERY & ASSOCIATES, INC. DAKOTA HEIGHTS WATER TREATMENT/ UTILITY MAINTENANCE FACILITY Lakeville, Minnesota $18,000,000.00 VERSA -LOK CORPORATE HEADQUARTERS Oakdale, Minnesota $1,400,000.00 BETHANY ACADEMY Diamondhead Mall Burnsville, Minnesota Development of a 40 acre site to accommodate a new 51,500 square foot facility incorporating water treatment functions, offices, public meeting rooms, workshop, vehicle storage garage and ambulance service functions. Buildings exterior is brick and architectural precast concrete. The building's structural system is steel beam and column with a bar joist roof for the office area and precast concrete for all other areas. Site development includes restoring an existing farm barn to be used for storage, parking, vehicular storage and maneuvering space, underground water storage for two (2) million gallons and future expansion for additional water treatment space, water storage and a future fire station. Tushie- Montgomery & Associates, Inc. worked on this project with Black & Veatch engineers. 15,000 square foot office corporate head- quarters with 8,000 square feet of adjacent warehouse space. Building incorporated Prairie style design with a large two (2) story atrium, exterior decks and open office layout. Exterior materials are architectural concrete block, brick and stone with a sloped metal roof. Building structure is wood frame. Future expansion includes an additional 15,000 square feet of office space and 10,000 square feet of warehouse space. Complete renovation of an existing 100,000 square foot retail space for conversion to a Kindergarten through 12 private school. Renovation included space planning for all new spaces, exterior renovation and site plan modifications to add outdoor play areas. • C] PARTIAL LIST OF COMMERCIAL PROJECTS --NEW PROJECTS - PAGE 2. TUSHIE- MONTGOMERY & ASSOCIATES, INC. FAMILY OF CHRIST LUTHERAN CHURCH Lakeville, Minnesota $700,000.00 EMERSON CONGREGATIONAL CHURCH Richfield, Minnesota $1,300,000.00 DIAMONDHEAD MALL RENOVATION EDUCATION RE -USE Burnsville School System Facilities Burnsville, Minnesota A one story 8,500 square feet new mission congregation church facility including a wor- ship hall to accommodate 350 parishioners, classrooms, kitchen, nursery, offices and storage. Future expansion includes additional classrooms, a new worship hall, offices, a fellowship hall and a daycare. Site develop- ment includes an outdoor worship area cov- ered by a tent structure, parking for 300 cars and a natural area for meditation. Building structure is woodframe with a pitched (over worship hall)` and flat roof. Exterior finish is wood siding with a brick ledge for future brick. A two story 13,800 square feet new church facility which includes a worship hall for 250 parishioners, offices, classrooms, youth center, fellowship hall, kitchen, nursery, kindergarten space, choir room and storage. Site development includes parking for 120 cars and a large patio area for outdoor events. Building structure is block bearing walls for the lower level with a precast concrete floor. The upper level is wood frame with a pitched (over worship hall) and flat roof. Renovation and re -use of an existing two (2) level 136,600 square foot retail shopping mall for alternative uses. Renovated uses include a 93,000 square foot K -12 private school with classrooms, gymnasium, chapel and admini- strative Offices. On the lower level a 27,500 square foot daycare facility for Burnsville Community Daycare, 4,500 square feet of offices for Burnsville Community Daycare, 3,000 square feet of educational space for Burnsville Nicollet Junior High extended campus, 5,600 square feet for Shakopee Head - start program, 1,700 square feet for a Community Kitchen meals program, and 1,300 square feet for Burnsville Public Health ABE Childcare program. PARTIAL LIST OF COMMERCIAL PROJECTS- NEW PROJECTS - PAGE -3 TUSHIE - MONTGOMERY & ASSOCIATES, INC. RAINBOW PLAY SYSTEMS, INC. 83,100 square foot office and manufacturing Brookings, South Dakota facility with a 20' clear height. Project in- $2,300,000.00 cludes 9,500 square feet of two (2) story office and 73,600 square feet of manufactur- ing that breaks down as follows: Manufactur- ing 49,250 square feet, warehouse 5,250 square feet, research and development 5,000 square feet, and maintenance 2,100 square feet. The office portion of the building has a castle theme and is constructed of dryvit and decorative concrete block. The manufacturing portion of the building is concrete block and pre- engineered metal building. Total site area is 40 acres and includes outdoor fenced storage, rail spur and a ten (10) truck loading dock area. NEW MORNING WINDOWS 64,000 square foot office and manufacturing Lakeville, Minnesota facility with a 20' clear height. Project in- $1,800,000.00 cludes 9,000 square feet of office and 55,000 square feet of manufacturing. The office portion of the building is brick and decorative concrete block (one (1) story) and the manu- facturing portion is painted concrete block. Building is designed to expand an additional 134,000 square feet. Total site area is 15 acres. OFFICE DEPOT Several Locations throughout the United States Total approximately 22 stores C, 25,000 to 30,000 square foot prototype free- standing and in -line wholesale office products retail stores. Projects are completed on CAD using Owner supplied disks with prototype design and site specific information. Building exterior is brick, decorative concrete block and dryvit. Building structure is load bearing con- crete block exterior walls with steel beams and columns and a bar joist roof. PARTIAL LIST OF COMMERCIAL PROJECTS- NEW PROJECTS - PAGE 4 TUSHIE- MONTGOMERY & ASSOCIATES, INC. THE SHOPS AT LYNDALE Richfield, Minnesota $9,750,000.00 AVIATION CHARTER FBO TERMINAL, CORPORATE HEADQUARTERS AND HANGAR Is FACILITY Flying Cloud Airport Eden Prairie, Minnesota $1,650,000.00 A two (2) phased 232,000 square foot retail power center. Phase One contains three major tenants, Best Buy (59,808 square feet), Sport- mart (43,000 square feet), and Comp USA (25,000 square feet). Phase Two includes two major tenants (30,000 square feet each) and in -line shops of approximately 40,000 square feet. Total site area is 17.36 acres. Building exterior is brick, dryvit and decorative concrete block. Building structure is load bearing concrete block exterior walls with steel beams and columns and a bar joist roof. Project was developed in a redevelopment district and involved the demolition of several existing buildings. 34,400 square foot, two (2) story, facility including 7,000 square feet of office and term- inal space, 4,800 - square feet of repair shop space and 22,500 square feet of hangar space. Hangar can accommodate eight (8) twin and single engine aircraft, two (2) prop jet aircraft and a Citation. Building exterior is brick, decorative concrete block and metal panels. yt n�� n„e•■�rs+n��. -us�ra A 40 0 MA �....t ..L,t'•.n ,.,..It' • • • PARTIAL LIST OF COMMERCIAL PROJECTS NEW-PROJECTS - PAGE -5 TUSHIE- MONTGOMERY & ASSOCIATES, INC. REGENT AVIATION Saint Paul Downtown Airport Holman Field Saint Paul, Minnesota COUNTRY INN Woodbury, Minnesota $1,500,000.00 DIMENSION INDUSTRIES CORPORATE HEADQUARTERS AND MANUFACTURING FACILITY $1,800,000.00 Project initially included creating a develop- ment masterplan for Regent's entire 25.3 acre FBO operation. Masterplan includes a total of 430,000 square feet of hangar, maintenance and office space. Development also included expansion of the existing terminal to include a pilot shop, restaurant and additional office space. Development implementation is being completed on a phased basis. Phase One which was completed in 1994 included a 35,200 square foot hangar, office and mainte- nance facility to house primarily smaller prop engine aircraft. Also part of the Phase One construction included a partial expansion of the terminal building. Total construction cost for Phase One is $1,500,000.00. Phase Two, which is currently in the design Phase includes a hangar for corporate jets, G-4's, maintenance and office space with associated ramp and parking development. Complete renovation of a 160 room Howard Johnson hotel. Renovation included a new gate- house entrance lobby and front desk, meeting rooms, new Green Mill Restaurant, complete exterior building renovation, all interior public space remodeled and guest - rooms remodel. Whirlpool tubs were added to make some rooms suites. Upper level exterior balconies were enclosed to make rooms larger and building entries were identified with new structures. Building was designed to Radison's Country Inn standards and specifications. 80,000 square foot office and manufacturing facility with a 20' clear height. Structural sys- tem is steel beams and columns with a load bearing pre -cast concrete panel exterior wall and bar joist roof. Exterior wall finish is paint- ed pre -cast concrete wall panels. Office space is contained on one (1) level with expansion at a mezzanine level. 0 • • PARTIAL LIST OF COMMERCIAL PROJECTS.- NEW PROJECTS - PAGE 6. TUSHIE- MONTGOMERY & ASSOCIATES, INC. BROSHEAR'S AUTO NEW CAR SHOWROOM AND REPAIR FACILITY Saint Paul, Minnesota $1,000,000.00 MONTICELLO -BIG LAKE CLINIC EXPANSION Monticello, Minnesota $1,200,000.00 PARK CENTER PARKING RAMP Saint Paul, Minnesota BROWN & BIGELOW INTERIOR REMODELING Saint Paul, Minnesota ROSEMOUNT PROFESSIONAL BUILDING Rosemount, Minnesota $ 700,000.00 17,500 square foot new car showroom and repair garage facility. Includes showroom space for ten (10) cars, offices, lunch room, fifteen (15) service bays, customer waiting lounge, parts department and public spaces. Structural system is pre -cast concrete floor, beams and columns: on the lower .level and steel beam and columns on the main level. Building exterior is glass and dryvit. 15,000 square foot, three (3) story, expansion to an existing medical clinic attached to the Monticello -Big Lake Community Hospital. Expansion allowed existing tenants, Group Health Inc., and North Memorial, to double their square footage. Other tenants include an optometrist, physical therapist and general practioner. Structural system is steel beams and columns with load bearing concrete block exterior walls and a bar joist roof. Building exterior is brick. A two (2) story parking ramp in downtown Saint Paul designed to accommodate 120 cars. Ramp was designed with a historic influence being situated in the historic district of Lower - town Saint Paul Remodeling and conversion of 100,000 square feet of existing warehouse space into office space for 3M Corporation which included offic- es, open office areas, conference rooms, com- puter rooms, a full service kitchen and dining room, training rooms, and employee rooms. The entire facility is secured. A 12,000 square foot, two (2) story, multi - tenant, office building developed as part of a downtown redevelopment project. Building structure is woodframe. The exterior design has a historical tie to other significant down- town structures and is comprised of brick and limestone. • • PARTIAL LIST OF COMMERCIAL PROJECTS -- NEW PROJECTS - PAGE 7 TUSHIE- MONTGOMERY & ASSOCIATES, INC. LAKESIDE CORPORATE HEADQUARTERS AND MANUFACTURING FACILITY New Hope, Minnesota $2,000,000.00 BOONE AVENUE OFFICE WAREHOUSE PHASE ONE Brooklyn Park, Minnesota $1,000,000.00 AVENUE OFFICE WAREHOUSE PHASE TWO Brooklyn Park, Minnesota $2,000,000.00 W.W. GRAINGER BUILDING ADDITION Arden Hills, Minnesota W.W. GRAINGER BUILDING REMODELING Bloomington, Minnesota KOCH TRUCKING CORPORATE HEADQUARTERS AND TRUCKING FACILITY Roseville, Minnesota Complete interior remodeling and building addi- tion to an existing corporate office and manufacturing facility. Interior remodeling included adding a second level of mezzanine office space and remodeling of all existing office and manufacturing space. Building addition included 50,000 square feet of ware- house space. 53,000 square feet multi- tenant office ware- house /light manufacturing building with a 20' clear height. Building exterior is decorative concrete block. Building structure is steel beams and columns with a load bearing con- crete block perimeter walls. 106,000 square feet multi- tenant office ware- house /light manufacturing building with a 20' clear height. Building exterior is decorative concrete block. Building structure is steel beams and columns with a load bearing con- crete block perimeter walls. 9,200 square foot addition to an existing 17,000 square foot office and distribution center to accommodate office expansion at a mezzanine level and additional product distri- bution /warehouse space. Renovation of an existing 20,000 square foot building to be used as a retail store for con- struction equipment and parts sales. 35,000 square foot complete interior and exterior remodeling of an existing trucking facility. Interior remodeling includes new corporate office, truck repair bays, paint booth and mezzanine storage space. Exterior remod- eling included a new metal roof, decorative concrete block and dryvit wall panels. Site work including paving for 250 cars and 200 semi - trailers. • • • PARTIAL LIST OF COMMERCIAL _ - PROJECTS, - NEW PROJECTS - PAGE 8 TUSHIE- MONTGOMERY & ASSOCIATES, INC. SPORTMART SHOPPING CENTER Minnetonka, Minnesota $ 1,700,000.00 MILLER PROFESSIONAL BUILDING Lakeville, Minnesota $ 500,000.00 SUN COUNTRY AIRLINES CORPORATE HEADQUARTERS AND HANGAR FACILITY Mpls /St. Paul International Airport Minneapolis, Minnesota $8,500,000.00 A 66,000 square foot strip shopping center with two major tenants, a 40,000 square foot Sportmart and a 15,000 square foot Audio King. Building exterior is brick with metal standing seam entrance canopies. Project consist of an approximate 8,000 square foot two story office building as a corporate headquarters for Miller- Hartwig Insurance Company. Project site is a down- town in -fill location and was designed to incor- porate significant historical architectural features of Lakeville's original downtown area. The building's exterior is brick and decorative rock face concrete block with a sloped and flat roof. The building structure is wood frame. Project consists of a three story office building attached to a 300' clear span hangar sized to accommodate one DC10 and 2 -727 aircraft. Building areas include a 54,200 square foot hangar, 34,000 square feet of maintenance support area, 43,000 square feet of office area and a 17,600 square foot commissary. Build- ing exterior is decorative concrete block and precast concrete wall panels. Ceiling clear height inside the hangar is 64 feet. PARTIAL LIST OF COMMERCIAL PROJECTS_ NEW PROJECTS - PAGE 9 TUSHIE- MONTGOMERY & ASSOCIATES, INC. NORTHERN LODGE HOTEL AND CASINO Leech Lake Indian Reservation Walker, Minnesota $22,000,000.00 • THE PALACE - BINGO AND CASINO Leech Lake Indian Reservation Cass Lake, Minnesota $4,500,000.00 A 60 acre family oriented resort development designed with a Northern Minnesota lodge theme with rustic log siding and natural field stone walls and fireplaces. Site features include a waterfall and wildlife feeding area, trails for snowmobiles and hiking, play equip- ment, tennis courts, horseshoe pits, 25 recrea- tional vehicle pad sites and parking for 600 cars and 12 buses. Building spaces include a 26,500 square foot two level casino with 800 slot machines, 36 blackjack tables, 20/20 bingo with 80 seats, 6,000 square foot restau- rant (with seating for 250), a 24 hour snack bar, a 6,000 square foot night club for major productions, 6,000 square feet of administra- tive and miscellaneous support areas, 90 hotel rooms, swimming pool, sauna, game room, daycare, an activity center building which includes meeting rooms totaling 15,000 square feet and 15,000 square feet. of play areas for children (miniature golf, movie theatre, active play room, video arcade, games of skill area, concession stand), an outdoor major event area totaling 1.2 acres and a trading post Future development includes a 25,000 square foot casino expansion and 90 additional hotel rooms. An existing bingo hall was converted and remodeled into a new bingo hall and casino featuring a tropical palace theme. Interior spaces include a 9,600 square foot casino with 210 slot machines and 12 blackjack tables, 20/20 bingo with seating for 40, a 12,700 square foot bingo hall with seating for 800 people, a 2,650 square foot restaurant with seating for 174 people, a 6,400 square foot stage /theatre for major productions with seating for 300 people and 21,000 square feet of office, back of house and support areas. Total building area is 52,350 square feet. Building addition totaled 21,000 square feet. PARTIAL LIST OF COMMERCIAL PROJECTS, NEW PROJECTS - PAGE 1O TUSHIE- MONTGOMERY & ASSOCIATES, INC. GRIST MILL COMPANY EXPANSION Lakeville, Minnesota $2,000,000.00 PAISLEY PARK STUDIOS EXPANSION Chanhassen, Minnesota $3,000,000.00 • WESTGATE BUSINESS CENTER, BUILDING #2 Saint Paul, Minnesota $880,000.00 WESTGATE BUSINESS CENTER, BUILDING #3 Saint Paul, Minnesota $1,482,000.00 WESTGATE BUSINESS CENTER, BUILDING #4 Saint Paul, Minnesota • 58,000 square foot addition to an existing food manufacturing plant. 30' clear height included high rack storage and a small mezza- nine. Exterior walls are load bearing precast concrete double tees. Roof structure is pre- cast concrete double tees. Structure was designed to accommodate future two levels of manufacturing. 24,000 square foot addition to an existing sound /video /production complex for recording artist "Prince ". Addition includes two new recording studios, a sound stage with clear height of 55 feet, dressing rooms, corporate offices, set production area and storage. Building exterior matches the existing archi- tectural metal panel system. A 16,000 square foot corporate headquarters office building with 3,000 square feet of ware- house space. One story in height. Building exterior is brick with a glass curtain wall system. Building structure is a rigid steel frame structure with a bar joist roof. A 78,000 square foot office /warehouse /distri- bution center. Clear height of 20 feet. Build- ing structure is steel beam and column with partial concrete block bearing walls. Building front has a ribbon window curtain wall. Build- ing exterior is exposed concrete block walls painted and brick. A 63,800 square foot office /warehouse /manu- facturing building. Clear height of 20 feet. Building structure is steel beam and column with exterior concrete block bearing walls. Build- ing exterior is decorative concrete block with individual windows spaced five feet on center for the entire front elevation. •PARTIAL LIST OF COMMERCIAL PROJECTS: -NEW PROJECTS - PAGE 11 TUSHIE- MONTGOMERY & ASSOCIATES, INC. 0 • SUN COUNTRY AIRLINES HANGAR AND OFFICE FACILITY EXPANSION Mpls. /St. Paul International Airport Minneapolis, Minnesota $1,300,000.00 MINNESOTA VIKINGS INDOOR PRACTICE FACILITY Eden Prairie, Minnesota $4,500,00.00 MLT VACATIONS CORPORATE HEADQUARTERS BUILDING EXPANSION Minneapolis, Minnesota $2,400,000.00 INDUSTRIAL PARK BUSINESS CENTRE Plymouth, Minnesota $1,300,000.00 HUBBARD MILLING CORPORATE HEADQUARTERS Mankato, Minnesota $2,400,000.00 A 22,000 square foot office addition to an existing 52,000 square foot corporation head- quarters building. Building structure - precast concrete with a bar joist roof. Two stories in height. Building exterior brick and glass cur- tain wall. A 100,000 square foot indoor, full field (NFL regulation) football practice facility including a food preparation kitchen, dining room, weight room, media room, team meeting rooms and storage. Building is a rigid frame steel struc- ture with a mid -field clear height of 65 feet and clear span of 220 feet. Building exterior is metal clad. A 30,000 square foot office addition to an existing 44,000 square foot corporate head- quarters building. Building structure - steel beam and column and three stories in height with a full underground parking garage. Build- ing exterior - glass curtain wall and decorative stone to match existing structure. A 50,000 square foot office /warehouse /distri- bution addition to an existing office / -ware- house building and corporate headquarters for Leaf Industries. Building structure - steel beam and column with concrete block bearing walls at the exterior. Building one story in height with a 20 foot clear height. A 21,000 square foot office addition to an existing 35,000 square foot corporate head- quarters building. Project consists of a four story addition with a full basement level - all for office uses. Additional uses include exer- cise room and complete state of the art train- ing room with audio /visual and cable casting capa- bilities. Building structure is steel beam and column. Building exterior is a glass curtain wall with decorative limestone and brick to match the existing building. . PARTIAL LIST OF COMMERCIAL PROJECTS - NEW PROJECTS - PAGE 12 TUSHIE- MONTGOMERY & ASSOCIATES, INC. Is is US AIR EXPRESS CORPORATE HEADQUARTERS AND HANGAR FACILITY Dayton, Ohio $3,500,000.00 WESTGATE BUSINESS CENTER, BUILDING #1 Saint Paul, Minnesota $8,150,000.00 ORLEANS RETAIL CENTER Stillwater, Minnesota $2,000,000.00 LANDMARK CENTRE Richfield, Minnesota $22,000,000.00 28,200 square feet of clear span hangar space with 14,000 square feet of maintenance support area and 32,000 square feet of corporate office and training space. Office space is 2 stories in height. Structural sys- tems is precast concrete with a Behlen roof system. Hangar can accommodate two Dash 8 -300's and 3 Jetstream 31's. Clear span is 168 feet. 163,000 square foot office /warehouse /show- room building one and two (office) stories in height. Building structure steel beam and col- umn with bar joist roof. Building exterior brick and reflective glass curtain wall. 35,000 square foot neighborhood shopping center which includes a food and fuel service station, two restaurants, a day care, auto parts store, video store, hair salon and a bank. Building is one story in height with sloped roof. Building exterior is brick and wood siding. A mixed use development project containing 395,000 square feet. Uses includes retail, office, medical office, restaurant, and resi- dential (45 units). Building structure - post tensioned concrete. Building exterior - archi- tectural precast concrete and reflective glass. Building height five stories with two additional floors of underground parking (500 spaces). Project includes financial participation by City of Richfield in the form of tax increment financing. Tushie- Montgomery & Associates, Inc. is a joint venture development partner as well as project architects. •PARTIAL LIST OF COMMERCIAL PROJECTS NEW PROJECTS - PAGE 13 TUSHIE- MONTGOMERY & ASSOCIATES, INC. WESTGATE CENTER Richfield, Minnesota $35,000,000.00 LAKEVILLE PROFESSIONAL BUILDING Lakeville, Minnesota $1,500,000.00 PAISLEY PARK STUDIOS Chanhassen, Minnesota $8,000,000.00 NATIONAL BOWLING HALL OF FAME Saint Louis, Missouri $ 5,000,000.00 MAINLINE TRAVEL CORPORATE HEADQUARTERS Minnetonka, Minnesota $3,700,000.00 A mixed use development project containing 150,000 square feet of retail space, 290 units of apartments contained in a five story building above the retail space and 160 condominiums. Project includes demolishing four entire city blocks of buildings to allow for new develop- ment. Project includes financial participation by City of Richfield in the form of tax increment financing. Tushie- Montgomery & Associates, Inc. is a joint venture development partner as well as project architects. 16,000 square foot office building, two stories in height. Building structure steel beam and column with bar joist roof. Building exterior brick and reflective glass curtain wall. First floor of building contains a bank with drive -up. Second floor speculative office space. 51,000 square feet of sound /video /and production space. Building includes corporate office space, two sound studios, a large production stage and associated support services. Building structure is steel beam and column with bar joist roof. Building exterior - architectural metal panels. Building was designed and built for recording artist "Prince" and is available for lease to other performers. 54,000 square foot museum contained in a three story building with one level being completely below grade. Interior spaces include a restaurant, office space, exhibit hall, computerized bowling lanes and general display area. Building structure - steel beam and columns. Building exterior - architectural precast and metal panel. Site included an urban plaza with a water fountain. 44,000 square foot building, three stories in height with one level of underground parking. Building structure - steel beam and column, bar joist roof. Building exterior - reflective glass and Alucobond. r PARTIAL LIST OF COMMERCIAL PROJECTS NEW PROJECTS - PAGE 14 TUSHIE- MONTGOMERY & ASSOCIATES, INC. SUN COUNTRY AIRLINES HANGAR AND OFFICE FACILITY Mpls /St. Paul International Airport Minneapolis, Minnesota HILLDALE CORPORATE CENTER Hoffman Estates, Illinois $37,500.000.00 NORTH CENTRAL INSTRUMENTS, INC. Plymouth, Minnesota is $1,750,000.00 GREEN FOOD SERVICE BUILDING ILLINOIS STATE UNIVERSITY Normal, Illinois $1,100,000.00 40 AEROSPACE DISTRIBUTION CENTER Saint Louis, Missouri $1,120,000.00 FOOD ENGINEERING CORPORATION Plymouth, Minnesota $2,650,000.00 52,000 square feet of clear span hangar space and 15,000 square feet of office on two levels. Structural system - precast concrete. Roof structure - Behlen. Building exterior exposed aggregate concrete. Hangar can accommodate 3 -727 aircrafts. Ceiling clear height of 62 feet. 500,000 square foot office space contained in a 15 story building on a 42.58 acre site. Parking partially at grade and partially below grade in a 3 story ramp. Building structure - steel beam and column. Building exterior - reflective glass curtain wall with brick accents. 50,000 square foot off ice/warehouse/dis- tribution building, one story in height - partially earth bermed. Building structure concrete block and bar joist. Building exterior burnished block and wood. 49,000 square feet of storage /distribution center with refrigeration, freezer and quick freezing capabilities. Exterior walls were job site formed concrete and tilted into place. This structure is the distribution center for seven food service kitchens located on campus. 32,000 square foot office /warehouse /manu- facturing building, one story in height. Build- ing structure - concrete block and bar joist. Building exterior -brick and wood. 63,000 square feet of light industrial special products assembly facility and distribution center. One story in height. Building structure - precast concrete and bar joist. Building exterior precast - raked finished. Building includes a fitness center with racquetball court for employees. • PARTIAL LIST OF COMMERCIAL PROJECTS - NEW PROJECTS - PAGE 15 TUSHIE - MONTGOMERY & ASSOCIATES, INC. LITTON INDUSTRIES Plymouth, Minnesota $2,960,000.00 70 CORPORATE PLAZA Wentzville, Missouri $12,250,000.00 HIGHWOOD OFFICE BUILDING Minnetonka, Minnesota $1,700,000.00 CHARLES OLSON & SON/WHEEL SERVICE COMPANY Saint Paul, Minnesota $3,320,000.00 LAKE JAMES MALL Center, Missouri $3,400,000.00 MINNESOTA COMMUNICATIONS CORPORATION Golden Valley, Minnesota $ 500,000.00 WACONIA BUSINESS AND PROFESSIONAL CENTER Waconia, Minnesota $2,600,000.00 80,000 square foot light industrial/-assemb - ly /distribution center /micro -wave plant -Phase I & 11 one story in height. Building structure - concrete block and bar joist. Building exterior - brick. A mixed use development containing commer- cial, retail and light industrial uses. Initial development included construction of a 350,- 000 square foot factory outlet mall contained in a one story building. Building exterior - decorative concrete block and brick. Building structure - concrete block and bar joists. 20,000 square foot executive office building, two stories in height. Building structure wood - frame - brick exterior. 83,000 square foot office and manufacturing space, one -two stories in height. Structural system - concrete block and precast. Building exterior - brick. 96,300 square foot retail shopping center built on a 8.93 acre site. Project included a free standing restaurant and gas station. Major anchors are a grocery store (40,000 square feet) and a drug store (8,000 square feet). Building exterior - brick and glass with a metal roof canopy over walkway. Building structure - concrete block and bar joist. 10,000 square foot office building, two stories in height. Structural system concrete block and precast. Building exterior - brick. 52,000 square feet of retail and office space on two levels. Structural system - concrete block and bar joist. Building exterior - brick. • NORTH CENTRAL INSTRUMENTS, INC. 35,000 square foot office /warehouse /dis- Golden Valley, Minnesota tribution building one /two stories in height. $1,225,000.00 Structural system concrete block and bar joist. Building exterior - brick. • • PARTIAL LIST OF COMMERCIAL PROJECTS— NEW PROJECTS - PAGE 16 TUSHIE- MONTGOMERY & ASSOCIATES, INC. DOMINIUM OFFICE BUILDING Plymouth, Minnesota $2,665,000.00 MESABA AIRLINES HANGAR AND OFFICE FACILITY Minneapolis /St. Paul International Airport Minneapolis, Minnesota $4,000,000.00 SOUTHFORK PROFESSIONAL BUILDING Lakeville, Minnesota $600,000.00 AUTOMATED BUILDING COMPONENTS Chanhassen, Minnesota $2,520,000.00 BROWN- CAMPBELL COMPANY Plymouth, Minnesota $600,000.00 MARSH RUN OFFICE BUILDING Phase III & IV Minnetonka, Minnesota $1,980,000.00 VELASCO OFFICE BUILDING Minnetonka, Minnesota $750,000.00 AIRLAKE INDUSTRIAL PARK Lakeville, Minnesota $11,783,750.00 (not completed) 41,000 square feet of office space with four story interior atrium, four stories in height with full basement. Structural system steel beam and column. Building exterior - glass curtain wall. 42,000 square feet of clear span hangar space and 35,000 square feet of office on four levels. Structural system - precast concrete. Roof structure - Behlen. Building exterior - exposed aggregate concrete. Hangar can accommodate 2 -727 aircraft. Ceiling clear height of 42 feet. 12,000 square feet of office and medical space on two levels. Building structure woodframe. Building exterior - redwood siding and brick. Standing metal seam roof. 72,000 square foot office /warehouse facility, one -two stories in height. Structural system - precast concrete -raked finish. 20,000 square feet of office and manufac- turing space, one story in height. Structural system - concrete block with brick exterior. 36,000 square feet of office space on two floors. Wood frame and heavy timber con- struction with brick and wood exterior. 18,500 square feet of office space on two levels. Wood frame construction with brick and wood exterior. Building includes enclosed parking and a solarium. 1. Office /Showroom - 86,000 square feet - block and precast construction. 14 foot clear height ceil- ing. Designed as a multi- tenant building. .�. S di' J. 3, WN AMX r "raw ,M } i:. �• n '�` }• � . � :.. 's Zed t X POWSM w 4 S ri d n Ir ZZ iRii- ---- =' ,.... 'fit � � �1.'r't/.. � ��� { �• �� �� �� �� J � _ .. ��i sa.®e.r�,ssst rif«a 1 04-r; r W �[•iffilin r • • O&WTO" oe [ k&>A, .l ,• °y !A Ste. lio Aid IV 1. PON !ate PF, SIC W ��- in A y �` GATEWAY TO MINNETONKA � z Welcome to West Ridge Market, the exciting new neighborhood.�...� that sets a new standard of excellence for large -scale redevelopment in the Twin Cities metropolitan area. }� West Ridge Market links homes, jobs and retail with the natural environment in a mixed -use concept that offers attractive, affordable housing, proximity to retail and transportation, = ' and accessible pedestrian pathways and bikeways. F _ r �7Ct�unty R0 ad3 WestR'dge'..i I M A R K E T if n 47, 11 if J /f. { ♦ \.�, .fir �� '''�r '.v Q. \...��,... a -'/ � .rnV 'yF Y i> .._. "„�. �,.av- -`,- -- �' '1�1 �, i @r _ - • ^- -"-c� F.", .�— P : �¢ �� � U � t 4�' -. c � Y M A R K E T Minnesota's Premiere Master � A�annor� Master Planned Communi, �`\ � w. _..ice jL;.a � f�V _ Z ; • .qL �C'�� � a� �%. jL 1� - q� a�' � �it...Si i�, �•7 �' CIA , 3 ' , ,r V, 3 •, l . 4 • r ` i t MM* nesota's premiere master planned communit�T Arbor Pointe, has been created to provide unequalled amenities within its own boundaries. Their are many unique aspects to this premiere master planned community; it has been designed to incorporate a «aide variety of home styles from single family homes to multi - family residences, while including areas designated for recreational activities, retail and commercial businesses. Best of all, a master planned community has a master association which is created to make sure that the common areas, boulevards, community wabNTays and the community as a whole is properly maintained, keeping Arbor Pointe beautiful for years to come. r IL r 0 � Preserving � Nature's Gifts P The land on which Arbor Pointe is located is a fine example of the best Minnesota has to offer. I* Created by glacial activity, the terrain has gently to n r 11, 0 P", sharply rolling hills, foliage and mature trees, wetlands and large ponds which provide picturesque views. Within the master plan of Arbor Pointe is the preservation of natural areas to keep nature within the neighborhoods. Mature trees and ponds have been preserved and common areas have been created for all r of the neighbors to enjoy. The natural surroundings with parks and trails is every child's dream with plenty of space for exploring and adventures with friends. Everyone will enjoy the six mile system of trails which wind their way through Arbor Pointe. Relax and Enjoy in One of Arbor Pointes Many Parks and Common Areas. eye er .„ a remiere "Master Planned Commll „� hard Creat�n� p lannlll` takes'years of painstaking reseaz =� e communit<� li��inZ) �Vork to ensure that all aspect for ���ithin the o�•erall are addressed and accounted unique aspects to a master plan. There are 111x1 r as, the oftering of a Blaster planned com111ulA”' Sll f home options front sine famih' u tot' es t0 multi -tamih residences, pr�t� l for the 110111 triture recreational areas, and ahlerciall usinesses. conN'enience of retail and col developer � 111 the 1oTe 1111poltanth, it tat` uldrl*t' la the needs and lifest}'les 0f 'Vision to l roS �ectl� e 110111e0'�� Hers 111 each Ot �h� 111as er p I fanned c0n1n1unity Ile igllborhoot P "Develop�ngand Budding, m aking dreams Reality" � tr �.r 3 t j a. ? � 4 . - "Develop�ngand Budding, m aking dreams Reality" � tr �.r 3 t j a. t ~�w a� n �� the The process of controllin, multitude of finite details, and and asssenlbling a team of s>rl�h�an o11h= be ellerlenced prOteSS1011er1e11Ced done b�T an e�uall} e1I developer. Rotthlnd HOmes has tat e�mue ence. ti ith o�'e1 ? I � eal� ° A elcellence in building homes and enhance creating neighborhoods ���hicll enh olnnnlnities, R0ttlund Homes is the one deg elope' ,itll the 1u1owledge, Skill and professionalism to make arbor w1 Pointe a reality ide a��arlet} o x� + slow a Arbor P ointe! SINGLE SINGLE FAMILY SIl: FAMILY ;:� FAIITTL ` ^ ~FF 1. - M �_;, FAMILY • F INGLE '. ;,. °;�j MULn- CMC \ MTAW . Finally a community with everything close to everywhere you want to be. Conveniently located between the major highways of 52155 and Concord Boulevard, with convenient JULY.: FAMILY ' SINGI E . FAMILY o�xaE access from highway 103 (Lafayette Freeway), Arbor t.Paul Pointe is just minutes from either Minneapolis and the Twin Cities major thoroughfares in the close -in community of Inver Grove Heights. Convenient access The Premiere \ taster Planned Commui*, of kbor Pointe covers more than 450 acres, with over 6 miles of tral s and more than 60 acres of paildands. i N A Planned Community on over 450 acres of beautiful terrain. In the next 5 years Arbor Pointe w ill be providing a wide variety of homes for every lifest<<le. Unlike most communities, Arbor Pointe will provide whatever home you need now and in the future. Once you see all of the amenities and fine neighborhoods of Arbor Pointe you may Weyer want to leave. Having something to do at the end of he day dicated'e arks, problem at Arbor Pointe. With all of t P miles of trails weaving throughout and with future retail and commercial areas, everything you need w ill be is just the beginning, Arbor Pointe is a Master close at hand. '6,ozo �Qmals'k*��6, RMTL"D HOMES TM Inver Grove all town communih; Imver ures of small town living. g, wooded and open terr rthern Dakota count`: a blend of urban an d for all of its citizen VTALL OF ��, APPLE VALLEY Hei'gh8 ihts has held on to the io iver r 30 square the Missi hts has 00 acres o Wno MEN DOTA HEIGHTS a 4 520 EAGAN =1 II INVER KIR ©ONE OHEIGHTOJ� 56 2'3' §2 ing1 I ipal golf course. Cross country skiing, baseball, and jogging are 'ust a few of the manv activities ities 15-1, parks. al neighborh d excellent uality of li g Inver Grove