Loading...
11-01-94 agendaCITY OF RICHFIELD SPECIAL HOUSING AND REDEVELOPMENT AUTHORITY TUESDAY, NOVEMBER 1, 1994 7:00 P.M. COUNCIL CHAMBERS AGENDA CALL TO ORDER I. PUBLIC HEARING AND CONSIDERATION OF RESOLUTION AUTHORIZING SALE OF RICHFIELD REDISCOVERED PROPERTY AT 6625 STEVENS TO SUSSELL HOMES, 6404 HUMBOLDT AVENUE TO ROCKPORT HOMES, INC. AND 6821 LOGAN AVENUE TO PARSLEY BUILDERS HRA LETTER NO. 73 II. CONSIDERATION OF SELECTION OF DEVELOPER FOR PHASE II, ILN REDEVELOPMENT PROJECT HRA LETTER NO. 74 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. 74 Agenda November 1, 1994 Issue Statement: Selection of developer for Phase II, the ILN redevelopment project. Background• The HRA selected CSM as the redeveloper for Phase I and. Phase II of the ILN. However, in an effort to minimize the impact of redevelopment on the existing property and business owners an opportunity was created for an alternative developer. The purpose of an "alternative developer" was to provide as much space as possible in the new development for existing owners to utilize. On August 15, 1994 the HRA accepted the Feldmann concept as an "alternative". The HRA has established criteria by which to evaluate the two proposals. The Contract For Private Development with CSM establishes eight criteria by which proposals will be evaluated (Section 3.2A(b) page 10). The developer responses to the eight criteria and staff comments are attached. In addition the HRA has financial criteria which are reviewed as part of the financial analysis. Attached is a report from Mr. Sid Inman of Publicorp on both proposals. Representatives of CSM and the "Feldmann Group" will be in attendance at the HRA meeting on Tuesday, November 1, 1994. Each will be prepared to make a presentation of their concept. Attached is a letter and proposal dated October 27, 1994 from Terry Feldmann and two letters from CSM updating their position on various items. Also Mr. Sid Inman of Publicorp financial advisor to the HRA will be present to make a report. Mr. John Dean of Holmes & Graven and legal counsel to the HRA will also be present along with staff. Recommended Motion: Evaluate the two proposals based on the attached data and the presentations to be made November 1, 1994 and select the Phase II developer. Basis of Recommendation: 1. .The Contract For Private Development with CSM requires the HRA to notify CSM of its status as the Phase II developer by November 1, 1994. 2. The HRA has consistently reaffirmed its commitment to that contract condition at its monthly meetings. 3. All the owners of property and businesses in the area were notified of the November 1, 1994 meeting in a letter dated October 10, 1994. 4. Letters dated September 23, September 30, October 13 and October 19 addressed to Mr. Neil Peterson or Mr. John Herman indicated the information required by staff to undertake an evaluation of the "Feldmann proposal". The letters dated prior to October 14 indicated the deadline for submittal of information was October 14. Such a schedule was set to provide adequate staff review time. A submittal was received October 27 at 12:15 p.m. 5. A notice of this special meeting was posted at City Hall and a legal notice was published in the Sun-Current on October 19, 1994. Alternative Recommendation: Delay the decision until a later date but this ,would be a problem because of the contract requirements as well as a commitment that a decision would be made on November 1, 1994. Discussion/Decision Mode: If the HRA does not make a decision on November 1, 1994, CSM may terminate its responsibilities. Resp u ly submitted, Jame$ Prosser Exectl, ive Director JDP:cak a 0 O a Z CQ C 0 W LJ. 0 0 Q W Z O H W ~"' ~_ W Z a Q Q. ~ ~ c~ N W "'' v- O r ;O = pL ~ O O U ~- N '1 C RS a ~ ~.oc ~ ~ N.a ~ Q"~ o N 3 N O) U ~ ~ .. L O Q U = N N M > A j ~~ ~ ~~~ U 'C ~ U ~ O ~ O a Z 'O -~ 0 'N ~ ~ of ~ c ~ ~ O ~ U ~ ~ .~ ~ .a O p n a~ a~ L 3 c p a~~i = v,~ c ~v'or~ _ ~ °~ E ~ ~ 3 a3 ~ 4?°oLcQ~ a~ Y~i~~ Nva~ ~ i- -O ~ L .C C p O O L i m C O ~' C 3 5 QCo o> N ~ a~i rna~ ~ cn ~ c rn C O ~ .- Ef3 Q- (tS L O O ~ O- O~ ~ p~ N t~ C U `+' N O~ .a ~.. L~ O N O '~ N~ N~~ y_ ~ ~ ~. Q~ O C 3 Q ~ N ~ ~ ~ ~ ~ ~ - L O ~ A > E ctf 0 0 = ~ ~~am ~s a~ vii ~ ~~ ~ ~ °-a~ ~° ~ `'a~~~-~~~ ~ cn~ov ca~ia~i N Q "- X c v~~ O c~ N Q- ~' O ;a ~ L O +' N O N ,C C ~ ~ L O ~ O N E O~ O ~j O L O Q- L~ O L 3 N ~ U~~ N .C N~ ~ p O~ L w~~ ./ Or L ~ ~ N ~ ~ ~ '~ ~ ~ N ~ ~ O Q...~ .O 'O Q ~ p~ O N .~ N N O ~ ~ ~ o c ~ c~ .a? o ~ o ~ ~ ~ o ~ ~ L L,.. ~ E Nom ~ ~ i r N ~ ~ ~ ~ C ~ C !~ p~ ~ p~ O O. p O ~_ ~ M ~ M L U O Z ~L .~ > cd' ~M ~M L ~ O Q.. R( ~ T T O .a > O O U U p O 'a: O r. O ti O ~ N ~ ~~ U ~ ~ ~ 3 ~ 3 ~ O U M ~ O L N .O ~ ~ j ~ ~ ~ ~ ~ ~ M C O C O O O U O U 0 0 ~ (A~ ~ H ~~~ ZU ZU ~ U r.. Q_ -iJ O 4-~ •~ ~ Q~ i ~ d L O O ~ •~ ~ ~ ~ L ~ ~ V p. t~ N f~ O L O O ~p o ~~(~ Qa... ~30 ~~ o ~~~ °~~ Oo~ .a ~ U ~~L ~ ~ p•V Q~ ~ ~~~3 ~~o ~~o s~ ~ ~Q-~~ 03~ ~~a`~i `~ v ~ ~ ~ N ~ O ~ a~ ~ c~ C -p p N p ~ +' ;O 'D 3 L ~ (~ C ~ tp "O Rf (~ O ~ (n N ~F- E ~ Ch Q p (~j ''"' a.: L ~ ~ O v O ~ ~~ ~- N ciS O O O ~+-'' '~_ > '~ O cLf L > ~ ~ ~ (n LL. QQ ~ i~L Q~ fn = ~~ LI.. L = ~ ~ O O ~ U ~ ~ ~ rn .c O _ ~ ~ c L ~ r. N +- a~ 3 ~ ~ ~ ~. cam,- '~ c Q o c c~ N~ U .rte ~aNio U N~ C o O O~ o N L O~ U ~~ 0 0 +' ~ O O .-: i U ._ ~ (A N N LlJ ~ f- U W .U ~ N U (A c FL-- O C V = N M T L (~ ~ '4•~ 1... O ~~~ i O C C U~ O O N o~ ~~ N ~~ O~ O O -O r r ~ ~ O ~ ~ ~ ~ ~ ~ ~ `N a~ `m tN O O ~ ~ ~ O '~ ~> ~ N iC c~ ~ N ~ ~ O > N v- U LL O N N ~ C ~ C ~ ~ ~ ~~ ~ C ~ fn•~ ~ ~ ~~MO~ O ~ f3 RS c6 Q = ~ ~ ~ ~= > O ~ ~ ~ '~ ~_ "O N O O NrN O ~,z- O ~'' ~- 0 0~ ~rNln O ~ ~ ~ c c c Q C aNi °' o ~ F- ~ ~ ~ ~ ~ o r 0 ~ Q~~~ ~ o-a =~ c o~~~ a~~~~ a~ ~3 • +.. Lo ~~~~:cNO ~~~ o3~~~a ~ > O ~ fd ai ai vii O N O ~~ ~= U N ~ ~ ti .O .~ O E N~ n. o r~ o~ N O ~~ ~ }. O W N O Lt. ~ ~~ ~ N N M O~ 0 ~~ L O >`~ N~ LL r^~ F' "O C ~ N•~•~'~ cOn ~ "O N ~ ~ ~ ~ ~ O N~'~v~?00 N Q, -ov o .`c'~"~= a~i ~ 3 ~ V ~ of ~ oU cZCD~h~ ~~~v~~ O a,- o ~ ~ x N cn . y o 0 o O O +~ ~ p 3 p c~ ~~ ~~~ 3 N ,C i (~ L O .~ ~ Q- O .C 'i ~ tQ O Q. cfl cfl Sri p_ ~ Q- O O ~ "O +' Q O c C~ !p C ~ 1 i ~ ~j >~ +~ O V O C N~ a L •>. N ~ ~ O NQmU O ~ ~. C c~= N ~ +) N Q- cc C 3 ~ ~ ~ ~ C C C O ~ ~ ~ C ~ ~ ~ ~ ~ ~ o O O -a o 0 0 N (~ p U -p O ,~,,, (~~ ~ ~ IiOOO~ N ~ U ~`v ~ ~•~~N 000I- O a~i ~ a~i ~ o Q ~ Q ~ ~ ~ o •- N cup ccn c`n a~iEE'ur~ O~~ ~~ O~ ~~ ~'~ y~0 • Z O O ~ r E r ~ r ~~ i ~ Q- T (~`~O CN CN ~N L'a' C~ ~~~ L L N C •C .~ X 0 0 C O C O C O O LL O > ~~ ~ ZO ZO ZO ZNI- `n.vZ i. ,~ O O _ ~ LL +-' _ c c E- °~ c c ~• W C N }' , ~ V~ ~ O N ~ V V~ ~ ~ O •~ L O p ~O A N O N ~ O> ~ N U~ L Q- ~~ "O O ,tA ~ v- ~ O O O ~ C ~ N ~ ~ ~ Q- c~ N C ~ ~ ~ ~ D ~ N c~ i N 0 Q O '~ N~ 'O O V N RS U p Y ~~~ O ~ O C fn ~ ~ N i Q.. ~ a. U J O ~ p ~ N O ~ •~ N Q.. ~ ~ to O N~ N O O ~ ~r- ~ .N (~ .Q N ~ "p O N~ ~ O O C~ p N~ O O C~ - "a ~ E E~n~a~on.~ a`~i~a~i E~ ~ 3c~p vOi•Y~-oN ~.QV~~3~Q3 ;g~~ o-,~~-,~~ a~iaoi~` Z'n.co~ c rn•~~Oc~ O O~~ ~a~;_.~ v c~ ~ cts ~ N ~• ~L ~ ao o c ~ x o o ~~ ° LL,~ a~ ~ a~ E x'a_ > Napo vQ ~~ v ~ ~i Q o c~ n.axi o axi a v° ~ i~-•~ ~•3 I- v o o~ 3 ~: c ~- ~ ~ a~ o ~• ~ vOi ~ c +~• ~• ~' 3 c uNi ~ a~ a~ c~ a~ o ~oa~i ~'o~ Uo cc~ ~~~ c~Q~ ~~ c~~o N ~ L O ~ Q' O U~ O N E c~ Q N ~ ~ ~~~ ~_~ W•~ Q O N N Q ~ n- Q ccS ~ } ~ C'0 f` N t v- O ,~ ~ O O ~ N N ~ '.:. c c~ +r > C ~ O U C N ~~ ~ ~ C ~ .~ O O ;~ ~ (/~ .> U c~ c ~ ~ '~ c y.~. ~L N--~ Q _ ~_ C ~ U ~ N ~ ~ = ~ U N .Q N t~ U >. Imo- 0~.. ti Q N ~ d L T ~ r N O ~ ~ O ~ ~ ° U ~ Z ~ - O c L 'Q ~ ~ ~ ~ U ~ ~ ~ ~ U (A~ ~' ~ Zr O E c c cn ~ L rC V! U ~, ~_ ~ 3~ ~_ ~ ~ E ~ ~~ a .~ .n M J (~A N a O o~c c~n a w ~ ~ to ~ V F- O z w o ~ Q Z ~ Q Q Q W c 3 O C .~ O .O C O L a~ .~ U U 0 .a c c~ a~ c 0 L 0 .~ O O a O c c~ a~ ~a .~ 0 a s U L 3 0 Q. O Q. i (~ c c~ a~ v ccf N E 2 O L 3 .Q a~ a 0 a~ Q O O O N _~ C ~ O ~ ~ ~ O ~ O U~ c a~ N C~ C O UQ a~ c a~ a~ ~ U U i ~ C 0 E~~ ~ O O (A ZI ~ p ~ ~ X O OO~~`no O C O N ~ ~ •O O ~ C O ~ O O ~ N O O ±r j M O C v (d #_ i O N ~ U 'O E~o~~~~vi ~..QOO p o ~ ~ ~ ~~ +,,a?N.~cZo~ (n ~ ~ v c~ ~ ~ ~ o U Q~ .~ U N H cn U (~ W U C O U ~ ~ ~ W ~ T c °~ o O L ~ C ~ ~ ~ N C N 'D N ~ ~ O C C L ro ~ O 1.1.. 3 ~ o E a a~ ~ ~ ~ ~ ~ ~, .3 ~ cn U ~ U ~ Y fn ~ O ~ L Qj «_ O . . ~- ~ fA 3 ~ O W ~ ~ ~ n. 3 -a c~ °a~ ~a~ o o ~ cOn ~ ~ .~' ~ ~ ~ c~ O N . '~ C O O O L 'Q O '+• N .N L O O ~ _U O -C O O ~.., L F- Q LL cn U -~ a~ a~ c c~ .C U C 0 N •3 ~ Y ~ ~ c a~ -v ~g ~ O. W ~ ~_ ~ N C ~ O = ~ (~ 0 0 L J 'Q O~ p 0 ~ ~ ~ ~ O ~ ~ ..- U O U ~? p N~ N ~ O~ O D U O N~ .., v~~ E- ~ c v~ c o t• ~' o c ~ c ~ 3 ~ ~ c E °~ ~ ~.~ ~~~~~~ o ~-a oc~cv~~~~>. ~ ° E a~i ~ ~ v -° E OC c 0 U N O L i- c a~ >. O N N ~"' O ~ a O O O 3 ~ u~ ~~ ~ ~E ~ E ~ o O U O N 'p (IS t~ N C C O ~ O O ~ W C t •~ N ~ C .O O ~= '+' O O c~ .- O C N L C ~ X ~ O O ~ 0'~2 ~ U N O O 'Q U UZ.c c a~ c v~ ~. c a~ cis a~ t U i ~ C ~O ~ O ~ = C '~ r Q ~ ~ ~ ~ O O (!)Z~ rn C ~ ~ vi N O U `o n ~. ~. ~ w O ~ Q ~- L ~ N N _ ~oa~ N E Qc-a ~ ~ C f~ ~ ~ ~ ~ ~U°~ ~ ~ ~ V ~ UQ~ (~~ ~X N C O U W a~ ~ c ~ O ~ ~ ~ U Q ~ O ~ N -p a~ ~ s ~ +.• ~ ~_ ~~ i ~.. G) i ~ N A N O O _~ ~ O N O ~ ~ i C rn c ~ ~ ~ _ ~~~ x(n _ ~E O C W .. U (~ c Q ~ ~ - O ~ ~ U ~ ~ ~ p U ~ ~. ~ Or N U O ~ '~ . fn ~ Q) ~ C ~ i O cd c~ ~`3~ cn ° a min ~ - o ~ ~ ~ ~ ~ ~ Q ~ ~ ~ o ~ t O ~ ~ ~ O .r ~ tiS i ~ .~ ~ ~ ~ ~ c c ~ U ~ o ~ .~ ~ ~ ~°? N ~ U ~ a~ ~ (~ oo 4 3 ~ - ~ 0 3 0 3 +' fn O 'C U i O N N ~ ~ N~ Q-O ~~ ~ ~ L °' ~ •' a~i U .a ~ ~ ~ ~ ~ 3~ ~ ~ `~ > ~L ' 3 a~ ~~ oc oY O ~-v oa~ o3 ~ O Q (~ a. ~ o ~ ~ C O L •- 0+.. ~ U(A= oQU~ ~~ L ~_ ~ ~ ~ ~ O O ~ ~ > O L a.. ~ i"' 0 ~ o O -~ ~ o '3 ° a~ Q _ Q-~ O rn >, >. c~5 v ~ Q ~ N Rf Y 3 ~ O: •~ _ ~ L ~ .per a ~3 ~ O f~ ~-_~ rn ~ ~ N ~ Q- U O Rj U i~ a~ ~ - 3 ~ n- ~ -a ~ ~ ~ ~ ~ U C ~`_ cd a~ ~ +r a- ~° ~~ ,~ ~ ~ 3 ~,, U - p) •~ ~ ~ •~ ~ ~ U ~ a~~~~ E ~, ~ ~~~ ~ ~ C ~ ~ O V N L a~ C 0 2 O O. N ~~ M c N t .~ ~ ai c ~ ~ U 'N ~ N p ~ O N ~ .Q ~ ~ L ~ O O L 3 ~ ~ ~ a~ ~ ,u~ U ~ ~ a C O ~~ ~ ~ a Q. L W Ulr-•~ -d a~ c ~ +. c a~ c~ a~ L L ~ C .~ ~ Q. .Q ,O^ O MO VJ Z I.L Q~ _ ~( O - ~ ~ •y O ~ ~ Q ~ •~ a' c ~`'E (A (~ O V Rf ~ W ._ L ~. O W ~ r a~~>'C~- Nc~'3a~i~~~ O L ~ N C~ .N N 4- N U Q- ~ 'O _ N ~ ~ __ O O O +_~ 'Q p 4= ~ ~ t~ L .~ ~ ~ C ~ ~ O _~ O p 0- O C O O O -a p O OL E t. ~ ~ ~ c ~ N ~ ~ ~ L ~ ~ L N p ~.. N C~~ 4= a Q- ~ ~ O 3 L ~ •+-r +. ~ vi ~ L = a~ C (~ O ~+v= ~ ocA Qc°~ a~~•ro pro 3 ~ ~ ~ a~i o ~ a~ o ~ ~ o ~ ~ ~ ~ aC U Q m a +. ~ v I- N cn E RS's U O L ~ 3 c ~ ~ a o ai U ~ ~ '«~+ ~ N c~S N O O ~ Q ~ L (~ O O ~ ~~ ~ ~ ~ ~O ~ 3 O N ~ 'Q vocaaioa~i~~~c~~+:~ ~a~iE.r~~LOa~tisEc~ w- p a N +r ~' ~-- N p) O~ (Q N .~ ~ '~ 0 0 a a ~ O ` r ~ ~ ~~~ N ti J ~N U>~ O p p p C~ y p C C +~' Y 0~ O1 Q p ~ ca~.~~oo~~aa.cor~ N L~ U O O~ r`~ ~ t• fl- N~ O ~>api~~~ai~~~~~api~ ~ ,~ ~ E ~ 'O c ~ ~ c a~ ~ n U~ C C N O O O N L U~ ~-= fAL N O Q-U+.w--+.. fA. ice/ ~ o c~ N~ p U L U O ~ ~ O ~ ~ aLLNU~~ c~ti °~~ N ~ RS .,, N p U U U ~~ ~ O f6 ~ 'p +r.• ~ ~ ~ : C ~ ` n .~ ~E ~ ~~~ c c~ mss'-r~~Q~ O C O O ~ +. ~' N ~ L 7 ~ m~ U U~ a O 'fit ~ •cn O ~ o N O c ~= o 0 O ~ ~ ~ _ N O ~ • V ~ O ~ ~'•~ > p'1 ~ O ~ oU ~~ ~ • ..,~a~ v~ ~ a~ c cn .~ ~ ~ ~ ~ . ~. ~ ~ O •U N 3~ ~' U ° • •~ a~ c ~ ~ y ~ c °~ •v L C S C ~•+ O Q~ E Q~ ++ ~ N Q- ~ O ~ fn U ~ - E O ~ O U ~ ~ ~ N (~ N U cn ,~- c 03 X cn °'o c~a i 0 0 ~ ~ E O N L ~ Y t O UZ ~~~ o ~ c ~ Q a_°i a~i a~°i c a~ v~ v~ U U U O ~ ~ ~ ~ ~_ = c c c • ~ O O O ~ II. Q Q ~ > v~ cn v~ ~ Z ~ ~ ~ ++ O) O y-- ~- O) - C C~ O O O N O C f~ ~~ Q O O O~ ~ ~ a-+ ~ a... B O O O '''' •3 N O O O L. N ftf > O +.; ~ Gj +~ ~ _ ~ 1-' O ~ O ~ O~ W -~ U~ R'f O X Qj ~ O C 'O U to O~ O~ a U O~~ Q - W (A ~ O N~ ~-- cn C Q. ~ ~O O~ O L ~ O~ ~" O N U ~ .U V L O •~ ~~~ U O~ ~ ~,, M O N O A ~"' ` Y a N Rf >. C t~ O RS (~ N *'' Q O U N *' O +~.+ ~ U ~ ~- ~' ~ > "O ~ N O ~ O > _~ i ~ U !Z 'O ~ N +'O.. O N ~ L U O~ N O ~ W > ~ V O N *' v O 'v `- ~ •X ~ a .C ~' c~ O~~ O U P ~ ~- O O O~ O C "O L C N (~ N -O O I O +- C O U O ~ O O .- •- 0 0~ O L +•~ N Q- ~ ~ ~ O ~ ~ ttS (n C ~ (CS ~••' '+~ ~ ~ Q. U ~ (~ (~ ~ U 3 •~ -` O ~••' a ~ O ~ ~ O RS fA Q N O O O O O .N ~. N (1Y 0 O- Q N U o~ ~ v~ cv=.c ° o o °•3~ °~ ° L o o cn N>~ o L 3.3~ .o - ° a m ~ ~ c~ .~. ~ c a = o ~ c o E •~ O cA ~- E ~` ctf Q U ~ 3° 0 o.n-v ~+, a~ 0 3 0 a~ L o o U o a.~ a~ a~ =o ~ c~~° o ~,~ o ° c c~ E ~ ~ E~ E O ° ~U ° w o~-U~.>_ ooo.~;o c°~ N N~'Z`~cno E•E~o a~cnoa"ioo~-a}? v,Ea~°.c~coi°o~°i•°°~ U Q I- ~ ~ Q. ~` > c~ c~ o -v I-- ~ ~ cu ~ ~ 3 c ~ m ~ m c .° U 3 ~ ~ Q ~ ~~ a~aoi c~ >E co ~`~~ Uo c~~ •L a ~ o a~ ~ ~ o o.oc~ o> cNC~n Q~s° w'~n Qom' i c^o ti ° O E +.• CA U o ~. ~ c o c~ n > o a~ a. ~ ° ~° v E ~ ~ ~ ~ {.+ O ~ C .C .~-~ •~ O ~ N ~ +• *"' E ~ ~ U Q ° ~.. a~ c +. a~ v~ c a°i ~ L Q r E ° a ~ Z ~ " V ~t N++ *~''_C~ ~ ~ ~U N Q ~ ` 0 ~ ~ ~ O ~ a ~ ~ ~i ~ E ' ~ ~ O ~ ~ o °V oc~ °- cQ+•c~ Q°-a°i ~N a a~~L ~a~ o ~, - c~ a~ +, o c~~~ °-cQ ~~ °E~~ 3. ° ~ ° .o~ ~.°c ~.~3 c~ .,~c ~>,~c ~~ °' o~ o~~U }: ° ~ ~ ~~:v_ ~ E ~ o c~ 3 ° a i ~ ~ a~ a~ ~=° Eo~c E~ ~ ~c°~ ~sa°~~ ~oo o~~~ ~-~~U 'wa~ ~oo> ° ~~~°E Q~Q~ ~~°~ ~~ i a a~ a.>Q-v UQ~v .~Eaxia~i Uc`~~= c°~~3 .N~~aioC ~_ 3~ ~_ c~ ~ E~ Pu~licc~rp- Ins. 512 Crown Roller Miil {612} 341.3b46 705 Fifth Avenue South FAX (672) 341-414$ Minneapbiis, MN aS4Q1 7O: Jim Prosser -City of Richfield FROM: Sid Inman - Publicorp, inc. DATE: October 27, 1994 RE: Financial Analysis -Phase II Proposals Yau have ask us to assemble a list of the items which we typically consider when reviewing a development far the City of Richfield or any of our ether clients. You have also requested that we indicate why we review these items, comment on the sta#us of the Phase fl review at #his time, and make any recommendations we may have at this time. Below are the various items, status and recommendations. 1. Project Pro forma - We review a project pro forma first to determine if the request for tax increment is reasonable (Bu#/Far Test) and second to determine if the project is economically feasible. 'the estimates of income (rent and land sales), costs of construction, debt service structure and salt casts are compared to industry standards. Samples of pro formal are produced with and without the tax increment assistance and at various levels of tax increment to determine the effect. Feldmann Group - At the current #tme, we have not received any pro formes which would enable us to begin these analyses, C.S.M. - Prior to approving Phase I, C.S.M. submitted project pro formes for both phases. At that time bath phases were revi$wed and a favorable recommendation was made to the H.f~.A. Ws have. received updated information on only Phase 11 from C.S.M., and we have completed our review, The pro forma reflects similar information from the first pro farms with the exception that it includes revisQd figures to reflect increased land costs and slightly higher lease payments, There is nothing in the second pro forma that would alter our first recommendation that the project is economically feasible and that costs meet industry standards. 2, Developer Financial Analysis - We review the overall financial position of the developers to attempt to determine the stability of the developer and to ascertain the quality of the credit of the developer in relationship to any guarantees which they may be providing. Feldmann Group - At the current time, we have not received any financial information about the developers. C.S.M. -Prior to Phase I approvals, we reviewed the financial position of the developer, At that time we made a .recommendation to the H.R.A. that C.S.M. possesses more than sufficient credit, stability and resources to complete the project, We have not encountered any additional information since then which would change our original recommendation. 3. Tenant Lease Documents - We review leases as part of the pro forma analysis, but we also review the leases themselves to compare the projected incomes an .the pro forma with the actual contracted amount. Also, we review the leases to determine the long-term relationship of the tenant to the owner and how that may impact the tax increment assistance. Feldmann Group - At the current time, we have not received any lease information. C.S.M. Y prior to Phase I approvals, we reviewed lease information and made a recommendation to the H.R.A. We have reviewed their Phase II lease rates as part of our overall pro forma analysis and believe that they have updated them to reflect appropriate market conditions at the time of construction. 4. Develaoer Experience - In large multi-use developments, we review the level of developer experience to determine if the developer has the ability to perform the variety of tasks associated with a large development. Feldmann Group - At the current time, the exact makeup of the development team has not been established. C.S.M. - I~rior to the Phase I approvals, C,S.M, submitted to the city information regarding there experience in developments similar in size to this one. Our recommendation to the H.Ft.A. at that time was that C.S.M. had sufficient experience with large-scale retail -developments around and outside the metropolitan area. This recommendation has not changed. 2 5. Tax Increment Analysis - We review the proposed tax increment arrangement to determine its reasonableness `and impact on the city. Particular attention is paid to who is at risk and what is the method of delivery of the assistance. Feldmann Group - We have received tax increment estimates that represen# three different models of the projec#. It is assumed #hat the method of delivery of tax increment is pay-as-you-go, At the current time the developer is repass#ing all of the tax increment generated from their Phase II proposal. C.S.M. -Prior to Phase I approvals, tax increment estimates were prepared for Phase II, At that time, we recommended to the H.R.A. that the requests were reasonable. The developer has not made any requests for additional assistance or given us any information that would change those estimates or our recommendation,. Based an the information we have received from the Feldmann Group, we would not be prepared to make any recommendation to the H.R.q, as to viability of their .proposed Phase II development. Further, based an the information we have received from C.S.M. we would not alter our earlier recommendation to the H.R.A. that the C,S:M. Phase II proposal is financially viable and secure. b:lric:h 3 ~~ ~~. ~~ --~ ~~ ---~ ~. CSM Corporation -~ ~~ 2561 Territorial Road • St. Paul, MN 55114-1500.612/646-1717 • FAX 612/646-2404 Via Fax & Mail October 26, 1994 Mr. Bruce Palmborg Richfield Housing & Redevelopment Authority 6700 Portland Ave. Richfield, MN 55423 Re: The Shops at Lyndale Phase II Dear Bruce: Thank you for scheduling prompt consideration of the redevelopment proposals for Phase II of the Lyndale Avenue/494 project area. As you are aware, the H.R.A. Board previously designated CSM Corporation as developer for both phases of the project, while reserving the right to terminate our Phase II designation in favor of an alternate proposal sponsored by the affected businesses and/or property owners. Our Phase II proposal is essentially the same as that which was originally presented with our Phase I proposal last spring and again at the August 15th H.R.A. meeting. On August 11th we also submitted a summary package on our Phase II development which included an evaluation of our proposal measured against the eight "factors" set forth in our development agreement. CSM made its initial contacts with City Staff regarding this redevelopment proposal late last fall. In less than a year's time, with the assistance and support of the City, we successfully overcame the many challenges presented by a redevelopment project as complex as our Phase I. Our Phase I performance included: 1) negotiation of a redevelopment contract with the City, 2) acquisition of the Phase I property, 3) preleasing of the project to national credit retailers, 4) overcoming environmental issues associated with previous property uses, and most importantly, 5) completion of construction of the majority of the Phase I improvements. In addition to our successful implementation of the Phase I redevelopment, CSM Corporation has demonstrated locally and nationally its ability to successfully develop in today's challenging real estate environment. Since 1991 we have developed or acquired real estate at a cost of $123 million. In the process we have received numerous awards, including Starr Awards from the Minnesota Shopping Center Association, and Industrial Building of the Year from the National Association of Industrial and Office Parks. Mr. Bruce Palmborg October 26, 1994 Page 2 We aze excited about the interest level in both phases of the project. Recently we acquired a lease commitment from PETsMART, a national retailer of pet food and supplies, for 26,000 square feet. We aze also in active negotiations with four other retailers whose needs range from 25,000 to 80,000 squaze feet. Because we aze essentially competing for the Phase II development rights, we would prefer to keep the names of these tenants confidential for the time being. Negotiations have also commenced with several full-service restaurant operators, including East Side Mario's, Don Pablo's and Moxies. There is a very high level of interest in the small shop space by both national and local retailers. Again, we would like to thank the City for making our Phase I possible and request your continued support for the Phase II project. Sincerely, ~ -~ C__~ David Cazland Vice President DC/vb ~~ ~~ -~ --~ -,-~ CSM Corporation ~' 2561 Territorial Road • St. Paul, MN 55114-1500.612/646-1717 • FAX 612/646-2404 October 25, 1994 Mr. Bruce Palmborg Richfield Housing & Redevelopment Authority 6700 Portland Ave. Richfield, MN 55423 Re: Update on The Shops at Lyndale Phase II Proposal Dear Bruce: Via Fax & Mail As promised at our last meeting, I am forwarding for City review an updated pro-forma for our Shops at Lyndale second phase. The two changes are to the land acquisition cost and rental income. We have increased the land acquisition cost to $5,200,000 due to concerns raised about the feasibility of the project at a land cost higher than the $4,562,000 budgeted. For your information, we are estimating that our final Phase I land acquisition cost will be within $100,000 of the $5,370,000 that we originally budgeted. The projected rents have also been increased to more closely reflect the rents achieved in Phase I and the preliminary discussions we are having with prospective Phase II tenants. The remaining assumptions, including construction costs and the amount of tax increment financing, remain unchanged. Please contact me if you have any questions regarding this matter. Sincerely, ~~ David Garland Vice President DC/vb HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 73 Agenda November 1, 1994 Issue Statement: Public hearing and authorization of the sale of Richfield Rediscovered property at 6625 Stevens to Sussell Homes, 6404 Humboldt Avenue to Rockport Homes, Inc., and 6821 Logan Avenue to Parsley Builders. Background• In August and September, the HRA authorized the acquisition of these properties under the Richfield Rediscovered Program. The HRA acquired 6625 Stevens in the winter of 1993 and did not allow a group home, non-owner occupied home to be built. Anew buyer was identified. Sussell Homes is proposing, with a buyer, to build a $130,000 home at 6625 Stevens. Rockport Homes, Inc. has secured a purchase agreement from the buyer for the lot at 6404 Humboldt Avenue to build a $130,000 home. Parsley Builders will build a home for a New Ford Town relocatee at 6821 Logan Avenue that will have a value upon completion of approximately $150,000. The sale price of the lots and proposed minimum home values are as follows: Property Sale Price Minimum Value 6625 Stevens Avenue $ 27,500 $ 110,000 6404 Humboldt Avenue $ 30,000 $ 120,000 6821 Logan Avenue $ 30,000 $ 120,000 It is requested that the public hearing for 7344 Bryant be continued to the HRA's next meeting, November 21, 1994. Parsley continues to work with the buyer on a contract and plan. The development agreement form remains essentially unchanged from those previously .used for Richfield Rediscovered. The agreement requires the builders to: • pay for the site at the stated lot value minus the demolition credit, if any, upon completion of the home; • provide financial security during the construction period with a letter of credit, or similar security, that reflects the value of the lot sale price; • complete each home and pay for the lot by June 1995. Each of the builders is new to the program. However, information available to staff indicates the homes will be promptly developed, and all of the HRA's financial requirements can be met. Recommended Motion: Following the public hearing, adopt the attached resolution which authorizes the Chair and Executive Director to execute agreements which sell 6625 Stevens to Sussell Homes, 6821 Logan to Parsley Builders and 6404 Humboldt Avenue to Rockport Homes, Inc. for the development of new single family homes. It is also requested that the public hearing be continued to November 21 to sell 7344 Bryant to Parsley Builders. Basis of Recommendation: 1. A check of references indicates the builders to be experienced, capable, financially secure builders. 2. The HRA has acquired or is in the process of finalizing the acquisition of all the sites in accordance with purchase agreements. 3. Development agreements have been negotiated and are in conformance with program guidelines. 4. Notice of public hearing was published in the Sun-Current on October 5, 1994 for 6404 Humboldt, 6821 Logan and 7344 Bryant Avenues, and on October 19, 1994 for 6625 Stevens Avenue. 5. Previously, the Planning Commission found the sale of the lots for development of new single family homes to be in conformance with the City's Comprehensive Plan. Alternative Recommendation: Do not sell to Sussell Homes, Rockport Homes, Inc. and Parsley Builders and direct staff to find other buyers. Discussion/Decision Mode: Closings-are anticipated to occur in November. Respectf ly submitted, Jame Prosser Execu ive Director JDP:cak RESOLUTION NO. RESOLUTION AUTHORIZING SALE OF REAL PROPERTY LOCATED AT 6625 STEVENS, 6404 HUMBOLDT AND 6821 LOGAN AVENUES TO SUSSELL HOMES, ROCKPORT HOMES AND PARSLEY BUILDERS (RESPECTIVELY) IN ACCORDANCE WITH A 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 Redevelopment Project (Project) hereto adopted by the City of Richfield (City) and the HRA, said real property being described as follows: Property Legal Description 6625 Stevens: The north 1/2 of the west 1/2 of Lot 6, Goodspeeds Second Plat, Hennepin County 6404 Humboldt: Lot 2, and East 10 feet of Lot 19, Fairwood Park First Addition 6821 Logan: Lot 9, Block 5, Tingdale Bros'. Lincoln Hills Addition WHEREAS, the HRA is authorized to sell real property within its area of operation after public hearing; and WHEREAS, a developer, Sussell Homes, has been identified as the purchaser of the described property at 6625 Stevens in accordance with a development agreement; and WHEREAS, a developer, Rockport Homes, has been identified as the purchaser of the described property at 6404 Humboldt Avenue, in accordance with a development agreement; and WHEREAS, a developer, Parsley Builders, has been identified as the purchaser of the described property at 6821 Logan Avenue in accordance with a development agreement; and WHEREAS, the public hearing has been held after proper public notice; and WHEREAS, the Planning Commission has made a finding that the disposition of the property for residential purposes is consistent with the Comprehensive Plan. NOW, THEREFORE, BE IT RESOLVED by the Richfield Housing and Redevelopment Authority: 1. A public .hearing has been held and 6625 Stevens Avenue is authorized to be sold to Sussell Homes in accordance with a development agreement with the HRA. 2. 6404 Humboldt Avenue is authorized to be sold to Rockport Homes, Inc. in accordance with a development agreement with the HRA. 3. 6821 Logan Avenue is .authorized to be sold to Parsley Builders, in accordance with a development agreement with the HRA. 4. The purchase price for 6625 Stevens is 527,500. 5. The purchase price for 6404. Humboldt is 530,000.. 6. The purchase price for 6821 Logan is 530,000. 7. That the Chairperson and Executive Director are authorized to execute the Development Agreements. and other agreements as required to effectuate the sale to Sussell Homes, Rockport Homes Inc. and Parsley Builders. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield Minnesota this 1st day of November 1994. Thomas E. Harms, Chairperson ATTEST: Vern Luettinger, Secretary H Z W W F N N N t0 t0 z O W >J W H Z O Z O Q W J W Q W Z O a w W H 2 ~_ z 0 a W J W W J .` 7- I J ~ ~ u- ~ .3 _ ~::, j ~ i ,.•1. + ,. ~1 - ~~~ -- ~~ u i c _ _ i j ~ OO ~ ~ i ~ ~'' 4J J ^ W ~J~ W n J V J ~ a ~ S~ a ~~ _ ~:> Q- 11 " J W W J W 3 0 V , i ~' 'L~. ~ ~, ;',,ij, ~~f O T `k~ } ? (' 'j; I~~ jf l i i; ~ , , „~ ~. . i i 11 { 4 , . ~ _ ` .. .,~+ ~, ~~ . I ~ ~ ., ,. .~ ~~~~~. ,.. .~ ~,, -., ,~ ~~ W Z W a 0 0 m Z ~.~:.:=~~-6 ~. 0 a W J W Q W Q W J W H Z O oC D i I i t ( i I ~` 1 ~~ I T; ~j ~ F---_ --_ {. --.. ,I i. r 1 ~ `~. + \ j ~~ { 1 ' \ ~ I ~~ ' ~ ~t t~;.. i ' 1 - ~i°` I i ~ ~~ ~ ~, J I ~ ~ ~~ ' r x ., : ~,. L' ~ -.~~. I rrl; ~- _ .- i..s ~ t..t a i.t c. j i i '' ~ L~~ ~ I I ~' i :_ i , .; ~~ MFL it'~5~~~ ~ ~'rl ~ `- C-r ! y~~G L ~i ~ i R.,o~F !~ I L t rY r'_ ~ ! UPPER LEVEL ~~V ~-~M~'~Ot-nt rL ~ ~.J E ~ Ca11~ iii t ~~~"p f Nrr~LiE.,2 ~ ~ r ' 4 ->~ i~.. _tJy 90 L r r ~` i Q ~1 ~. _ I r ~ +~ l~ i .r, ~; .~`--------------~------- - ---- - ---------_ --y ~-? ~ i t z~~ ~ ~ ~- ~J __._. _ '~, ~ _ _ , ~ I - _ L~ ~D Qtx~"t -_~.___ T I ~d~ tN ~1~ ._~ ~ _ f ~.:.-SH 1 ; ~ s L)nu» SH,~~~ I ~ ~'-~1TLC.. \ h X4 L ~~ ~~ ~~~ ,~, ~ ~ - ` '~ t ,, ~ ~~ ~ ~~~o.. o c _ Q_s~ Tie f ~ ..-. ~ ,~ (} .LSAT F3 suo .. ~~s ~ f v ~ Z'~ y ~ tea- ` t 111 ~- (u pc.r_ Lt ~ F .... _ _v Di .A. ~ n ,~ e _ ~~ Vtau `r f ~,._:~ , 1 II 1 i V o, ~ ~ ! , i ~ ~uF o 2c~cs1 Fir ~L ,~,, ~ FAT ~ ~ # f-- , Cz,~u, ~ ~f- ~~~~~ ~~ jFf`~.r' jl + ~ Pn~ F _~ ~ CL~s -i-----.J _. , i _~I ~Z_ ~ ~ I ~ _ ~ ~n ~ ~ ~--- --.. ~;~ ~ T i ' ~ ~ ~ ~ .~ i -~ " ~ I f LOWER LEVEL i i x~ ~ (~~`~' I 1 :: J ' ~ J ~ ~ `~ __._______ Ito ~ _ "~ W 7 W ., a - 4~ Z ~` a J r N 00 ~O ~~ >'1 ~ T_ 4 tii. ~! t. r ~~,iR ~' `~~,~~. ;$~. , , , , i t I ~ i I ~~~~~~., i I ~ ~ j~ l ~~~II ~, ~ !~ ~' ~ ' ; i~!_IU~ I I ~ I i~C1rJl~ i ; ~ QC~f~ll=a ~'''' i~T~CI~f.I ~~ ~i~~~Cll~ I I ' ~ _ILLCI 1U ~! ',~i,\ ~ ~ ~ i CICC~~Ci ~;, ~; ~ ~u ;; . ~ 'I' ' ~ ~' Dili ,~ ;;,~ ,,I,~\ ~ ~~ ~ , ~~' ' .,.t ~~~~ A ,~ c •~~ .~8~ ~ Kia ~~~ ''"?sA, '~~' t -~ ~-~' .~. Z 0 Q W J W 1- W W J _~.. --- -._ _. _ __. lo- cs 11. ~. - - _ i; IZ~o-- ~ 2~24~cLOC ~! 'Pc~ZS Z _ I' C4x3c~~ Z2.4x3:~c. ~i __ C~ 9 ~ I~ ~ ~ I 6' 9' 1 i) ~~ ----=-- ~ i ~ -- --- ______ _ i i sa ~~.o ~~ __.. Z" 2` __ .. . ,. ... ._ s ._ --- --- r2ZY~T ~ 5~ ~ '~ .l ~ D/fl ~b;r~c I ~ ' Q ~. ', _. 3~ ~ Z ,~ i ; 7` .. t- _ ~ ~I ~ ~ d --- -- - -- \ j D1tJtIJG I ~ ~ ~ ` ...,~ ~ ;9 x 0 ~ ~ ~`~ ;I - -rte ~~x~f--~ X ~- fn -i ~I; Ni ~o ~ ' ,~; ~ ' - - .+h~ pAx. f I ~ ~ ~ ,•- -- ~ ,~. j . % ; ~ t '• 1 ~ ~ ~_ r ' 0 , Q y( ,1 ' I ',~ ~; ES y ~I ~. ~ I ~ ~~ ~ _~ ~ I I~ u~ ~~; v z i f ; ~ UPPER LEVEL I ~~ ~ I _ ~ G - 2~~2.'Lv~,. F~D2.. I - ---- IZQ~- - - ---~-- ----->k I -. October 27, 1994 Housing and Redevelopment Authority City of Richfield, City Hall 6700 Portland Avenue S. Richfield, MN 55423-2598 Re: Feldmann Proposal for Lyndale Redevelopment Dear Members of The Housing Authority: When Richfield adopted the redevelopment plan for the Lyndale and 494 area, including the site of my dealership, it proposed a high density, very high value redevelopment. About the same time, I proposed a redevelopment for my property that called for amulti-level dealership, integrated with retail. I was summarily told it did not comport with the redevelopment plan. Last December, the HRA and City adopted a dramatic change in zoning for the property and established a redevelopment plan, sanctioning big box retailing. My dealership suddenly became a permitted uses under this new plan. I have consistently expressed plans to redevelop my property as a second dealership, either for a new line of Mercedes Benz products or as a relocation site for my existing Nissan dealership. With other landowners, I objected to your taking of this area for a low density, low value development, especially one with large job displacement and minimal tax increment. You finally agreed to establish a six month period to consider alternative development proposals. I objected to this very limited time frame. Pulling together amulti-million dollar development, and obtaining participation from co-developers and tenants on such a fast track, is simply not realistic. I have, however, tried to respond consistent with your set of rules. I cannot state strongly enough my commitment to this property and its value for an automobile dealership. There are simply no sites along the 494 corridor available. Moreover, this site has always proved an outstanding location, with very high sales volume. Because of my commitment, I have invested over $150,000 analyzing the development potential of this property. I studied the feasibility for a more intense development, while evaluating the current City contract with CSM. I also provided a $10,000 deposit to pay City and HRA costs of analysis. Within the last few weeks, the City has demanded from me certain items which I am not able to provide, such as signed leases. I am confident, however, that with the approval of the HRA and City, a much higher density redevelopment is possible and logical for this site. Indeed, anything except a high density development is economically unfeasible. All the expert advice I have sought agrees that the CSM proposal is predicated upon unrealistic acquisition costs for the property. Housing and Redevelopment Authority October 27, 1994 - Page 2 • I am pleased to submit this proposal to the HRA, and will be available at the November 1 presentation, along with my development consultants, architects and legal counsel to respond to all questions. Free Standing Dealership. My partner, Robert O. Naegele, Jr., and I are committed to a continuation of the dealership in the current location. As I indicated above, this has been an outstanding location for vehicle sales, and no comparable locations are available in this market place. It is our intention to return to this site and invest substantial funds in a modernized and enlarged dealership. We negotiated ashort-term lease with Richfield Mitsubishi to allow this return. We would do this without any tax increment assistance ,and would enter into a redevelopment contract, if the HRA desires, committing ourselves to the expenditure of $1.5 million of additional investment on this property. We offer to work cooperatively with any developer the HRA would select, and to accept reasonable design and access controls for compatibility. CSM initially proposed to build around the Conoco gas station on the east. They also proposed a free standing restaurant, roughly in the location where our facility exists. If ... it is not difficult to build adjacent to a dated gasoline station, and If ...free standing restaurants are acceptable as part of the property, how can it reasonably be argued that a $3 million dealership, with no subsidy, .would be incompatible with CSM's . proposal. Mr. Naegele and I continue to present this free standing dealership as our first option to the HRA and City. I can assure you that we will vigorously contest condemnation and legal counsel has advised we have good basis for our arguments. It is not, however, our goal to have a controversy with Richfield.. We want to be part of a cooperative and exciting redevelopment of this area, not part of the problem. Overall Redevelopment Option. As indicated above, I have spent a great deal of time and money in the evaluation of alternative redevelopment for the area. It is evident that a higher density redevelopment is not only attainable, but essential for the feasibility of redevelopment of the Phase II area. CSM Alternative. Your current contract with CSM has the following features: • CSM's "Minimum Improvements and the land" have a market value of only $7.5 million. Contract, Section 4.4. • CSM has numerous escape clauses to not go forward with the project, including: "material adverse market conditions or environmental or title problems" or if "costs of acquisition, including land, relocation, fees and other expenses...exceed $4,562,608." Contract, Section 3.3(1)(4) and (6). (Emphasis supplied.) Housing and Redevelopment Authority October 27, 1994 _ Page 3 • The HRA, however, must pay $291,780 immediately to .the redeveloper, and all tax increment, except for the 10% administration fee. Land Value Reality Check. My development advisors and I initially believed that we would proceed with a contract essentially like the CSM contract. With more density, our plan would generate sufficient tax increment to pay for structured parking and actually return additional tax increment to the City. Then we discovered that current assessed values for property in the area are already $5.2 million, $700,000 more than the CSM walk-away acquisition price. See Exhibit A attached. Imagine the cost when relocation, legal fees, appraisers and takings of equipment, plus the inevitable actual land values are totalled. Amore likely total acquisition cost for Phase II is probably $8 million, actually more than CSM's Minimum Improvements. Thus, it was clear to us a very high value/higher density development was necessary for feasibility. Development Proposal. Over the last several months, we have refined our proposal and presented three alternative development plans to City staff. Each of these is attached as Exhibit B. Model A has a total development value of $15 million and consists of two auto dealerships, a restaurant and 76,000 square feet of retail, with structured parking. Model B consists of my dealership, a new hotel, 76,000 square feet of retail, a restaurant and the structured parking, a value of $18.3 million. Model C consists of the hotel, two dealerships, a restaurant and a somewhat smaller retail area of 44,000 square feet, a value of $18.9 million. Each Model was priced out by Kraus Anderson, our contractor-consultant, and we assumed a taxable land value at $4 million. It is our conclusion, after consultation with our retail consultant, Bruce Peterson, and evaluating the costs of land for comparable facilities in the area, that a minimum development consistent with Model B or C is needed for overall project viability. We assumed acquisition costs of the property and building the ramp. Fiscal disparities was assumed, plus the full 10% payment to the City for administrative costs. We requested Springsted to function as the City fiscal consultant for tax increment evaluations, attached with Models in Exhibit B. Developer Capability. Separately, my chief fmancial officer is providing to the City written confirmation of the capability of Terry Feldmann Imports, Inc., to undertake the development of the automobile dealership. In addition, I will submit letters of strong interest from several major development entities who would act as co-developers for the retail and hotel elements and a co-developer letter on the second dealership. These materials are submitted under Housing and Redevelopment Authority October 27, 1994 _ Page 4 • a request of confidentiality. The co-developer arrangements will be consummated as part of the final contract negotiations, upon our selection. It is not a real world possibility to finalize these arrangements without developer designation and in only one or two months. Project Feasibility. In general terms, projects with $18 million plus of construction value will generate tax increment. with a present value of approximately $5 million. The land, exclusive of my own property, can be resold for approximately $12 per square foot, resulting in revenue of $4.3 million. This total revenue of $9.5 million just offsets the cost of land assembly and the $3 million parking cost. Thus, Model B or C is needed to result in sufficient tax increment to make the development feasible. Our retail consultant, Bruce Peterson, has carefully reviewed current developments of the type proposed here, and believes that the proposal we have made, while difficult, is feasible (this has been confirmed by several significant potential development parties). Conclusion. If-the City persists in proceeding with CSM, it should eliminate my property from the project. Mr. Naegele and I will, of course, cooperate fully with the City by committing to a full scale redevelopment of our property with an increase in mazket value of $1.5 million and to coordinate with CSM. Alternatively, I believe the City and community aze best served by selecting us to go • forward with Model B or C. This quality site warrants higher density development and needs higher density development for overall economic feasibility. We ask for a reasonable period of time, after selection, to enter into a formal joint venture with one of the several major development entities interested in the property, and then, to enter into the redevelopment contract with the City. Terms would be identical with respect to tax increment and payment of City costs. We would not, however, require an unreasonable walk away number, faz below the actual value of this property. Closing. I am very committed to staying in Richfield and building a new dealership. As along time Richfield businessman, who is anxious to invest, without City assistance, in his own property, I believe that we deserve and are legally entitled to do our own development. As a person committed to the very best for the Richfield community, I believe we should be selected. Thank you for your consideration. _ Sincer y, " ,~t~iz.. err Feldmann • RICHFIELD AUTO/RETAIL COMPLEX PRESENTATION -- - TO THE CITY OF RICHFIELD HRA COMMISSIONERS November 1,1994 BACKGROUND: • In May, the HRA granted the owners of the property in Phase II the opportunity to present their own development concepts to possibly avoid this condemnation. • On August 15, the HRA granted to the Feldmann Group (Terry Feldmann and Robert Naegele, Jr.) the ability to proceed with their concept (a two level parking deck with 220,000 square feet of retail, two auto dealers, free-standing restaurant, auto service center) to the next evaluation date, November 1. • It was made explicitly dear that Richfield would not own a parking deck, so we abandon our original plan, and amend to present models A, B and C before you. • We continue to believe the site and community deserves and needs intensity of development like we have proposed. WHERE HAVE WE BEEN TO DATE? _ 1. We have made an extensive effort to meet with neighbors, tenants, and other land owners in Phase II, and coordinate a joint venture development, particularly with the Adelmann 50% area ownership. This effort has not proved successful, to date. 2. Significant evaluation and creation of an architectural design study took place. We sought outstanding consultant and professional advice to create a highest and best use for this property, at a cost in excess of six figures. 3. We established detailed construction bids and have accurate knowledge of costs, on which to base our analysis. 4. We held extensive meetings with potential development partners to incorporate their advice and recommendations into our concept. 5. The very significant analysis of land assembly costs and its inherent difficulty became the ultimate focus of attention, and became the #1 issue. 6. We developed financial models to identify tax increment necessary to make this site productive and financial feasible. WHERE ARE WE TODAY? Tim-- a Issue: • • On August 15th we voiced concern in our ability to accomplish all fast track steps by November 1st. Again on October 14th we requested by letter consideration for an extension to create a Contract for Development. We have been told a time change beyond November 1st would not be possible. Project Concept: • Our redeveloped concepts are depicted in models A, B and C attached. • All concepts contain a one level parking deck on the south half of the property in order to get greater intensity of development. • In all concepts, there would be multiple owners on the site for each of the respective components. • We are most confident that Model B is the highest and best use of this site. It contains: • A remodeled Feldmann auto dealership. • Retail of 76,000 sq. ft. • 8,000 sq. ft. restaurant. • We have letters from interested partners available in confidential fashion with your City Manager. • • This project would have a construction cost of in excess of $18.3 million and would create a new tax increment in excess of $8 million. WHAT WE HAVE LEARNED: 1. Land Cost: To condemn the land and pay relocation costs will cost in excess of $8 million. a) A project cost in excess of $18 million. b) Necessary to create a new tax increment of $8 million. (1994 tax market value $5,200,000 -see attached Exhibit A). 2. This land assembly risk is so significant and unpredictable, that any project will have major obstacles and place the City at risk. . CONCLUSION: It is our recommendation that for the benefit of the City, present owners, and other interested parties, this development needs to be completely re-evaluated. This is that opportunity for the City to reject the CSM proposal and allow time for realistic evaluation. • ADDRESS PID # BLOCK-1 918 87 910 86 908 85 904 84 902 83 900 82 818 78 816 77 812 76 808 75 804 74 800 73 BLOCK 1 TOTALS BLOCK 2 716 94 714 93 712 92 708 91 7700 90 BLOCK 2 TOTALS BLOCK 3 920 88 901 89 BLOCK 3 TOTALS BLOCK 4 701 95 '705 96 715 97 719 101 723 100 801 99 809 80 819 81 BLOCK 4 TOTALS SITE TOTAL EXHIBIT A RICHFIELD PHASE II ANALYSIS By Neil W. Peterson 10/10/94 OWNER BUSINESS LOT SIZE 94 TAX VALU Adelmann Don's Appl. 18,800 $276,000 Westland Car Stereo 9,180 87,000 Westland Hert Cycle 107,000 Belleau Auto Detail 8,500 61,000 Louis Ridge Door 6,800 97,000 Adelmann Weekend Fr 21,420 98,000 Adelmann Top Cycle 166,000 Adelmann Bus Fum 99,000 Adel./Sch Cart's TV 17,000 120,000 Adel/Sch Auto Parts 134,000 Doherty Dohertys 17,000 147,000 Doherty Dohertys 170,000 98,717 $1,562,000 Horner Napa 15,300 132,000 Horner Mach Shop 70,500 Horner Pre Heat 70,000 James Amonia 9,520 129,000 Conoco Conoco 21,376 291,000 46,196 692,500 Feldmann Rich Mitzu 77,900 182,000 Feldmann Rich Mitzu 600,000 77,900 $782,000 Kerssen Flower St. 7,770 172,000 Adelmann TC Tire 16,830 318,000 F-D Prop 9,600 194,000 Adelmann New 9,820 195,000 Adelmann RPM/Hagen 14,346 313,000 Adelmann Hagen Mic 17,958 392,000 Adelmann Rich Plum 18,748 410,000 Adelmann Empty Lot 28,955 180,000 - 124,027 $2,174,500 Owned Area 365,657 Street R W 70,800 Estimated Total Site 436,457 $5,210,500 EXHIBIT B RICHFIELD AUTO/RETAIL COMPLEX PROJECT PARKING STRUCTURE: All models herein include a one level parking deck on the south half of the property, accessed from either end of the structure as .noted in the drawings. Components Auto Dealer #1 Auto Dealer #2 Retail (76,000 S.F.) Restaurant (8000 S.F.) Parking Lot/Land Value Project Total Model A New Construction Value $1,500,000 2,600,000 6,000,000 800,000 4,000,000 $14,900,000 New tax increment created by Model A $6,277,471 1 / 1 /95 Present Value $3,800,000 Model B Components New Construction Value Auto Dealer #1 $1,500,000 Retail (76,000 S.F.) 6,000,000 Restaurant (8000 S.F.) 800,000 Hotel (140 rooms) 6,000,000 Parking Lot/Land Value 4,000,000 Project Total $18,300,000 New tax increment created by Model B $8,061,125 1 / 1 /95 Present Value $4,900,000 Model C Components New Construction Value Auto Dealer #1 $1,500,000 Auto Dealer #2 2,600,000 Retail (45,000 S.F.) - 4,000,000 Restaurant (8000 S.F.) 800,000 Hotel (140 rooms) ~ 6,000,000 Parking Lot/Land Value 4,000,000 Project Total $18,900,000 New tax increment created by .Model C $8,375,868 1 / 1 /95 Present Value $5,100,000 • C~ D ~ -- ~ -- r m .~ A 1 1 3 ~ D ~ ~ n ~ ~ ~ ,, a ' O ~ `~` i ~ i _ ~~ --- ~ z 0 e - ~~„~ a i.ii ..,, v -.__. ~ - ~ m u. vi v v -----------___ _ NNNNNNNNNN-+ -.~,., ' Q~, ~~z7~ ~ 0000 pOOOO~tOp1OptO0{W{pptOp i~~Oj ~p W V O~ Vi A W N t0 W V 01 Vl n, ~ c c m'v N a tin vNi ~ Sa ~ ! "~ ;' ~m~~ m a ~ tt~ 8S (~~ 1 '~ ~i 5~ G7 o•<d ~ m i 1 m ~ _, ~ p Z5 ~ o I ~ N'~~~~~ ~~ I ~~8'~N.~o ~ -mow ~ 0 U O~w ~, ~~ ~ ~ v)u (w~ o a~ (J~ /~ J I [~x]j ~._a.~i.~~pp ~ i ~ wad. ~~ ~ ~ A N 1 O ~: ~ ~~' 3 N g QQ~ v~~ I v~•(o ~.~~ ~ 25250 I ~~ 1 ~ i ~ 5N2~•~~a~~ 7~v c4 $ 5~ a v ~ 1 0250 ~ g o (p N N -+ ~ ~ - .(Nll tV11 8 OaO O) gN O 0000'00 OOOOOOt~~p d ~ o0 0o ao I w -I ,~ 000 30.0 g~~ Q ~ .+ N ... I ~ N O V O) 'pip N O ~ Oo PI N v ~ 7 a tO 0 0 0 0 0 0 0 0 0 0 0 Q Q 1 -~ 25 c O I n. y 3 ~_ ~_~ ~ .p AJaAAAA.pAA,pAAAA (ON ~• ~p O C) tT to C) O tT O) OI ~ I v ` y a ~~~$$~~~~~~$$~~ ~• ~ . IV ~ ~ O ppp'U ~ ~ IV _O ~. p~j ~ N O O O O O O O O O O O O p N 0 X N '_ ~-~ NNNNNNNNNNOON~,p.,,..~ W y -< oo pgppOQ~Q000O0St0O0I~~ X Q~~ V~ (!1 A W N -~ O (O Oho V g m Nrnrnrnrnrnrnvlwtnvlwtppo~~ppA~~ ~~~ ro O VA-+~ tO11NtOO,0Oi W O V Ja.p N-~'~~6_ W N -• -+ .~ NAV-+V (OJt.6AOlp~A-N..N~ X <~< tAN-+(JI(JIOOVIV)S(OWNNO s uN J J J ..~ r ,..~ I ~ I ~ OAD ~ OAo W W _OAo ~ A A A A A A I --' (~j ~ tO W tb m lD (D (A W I4h1 ~ ~ V V V V V V V V V V~ V (D to J~ J J~ J J J J Of to Ol O 0l (T O) O) O) O) 0 0! Ol 0) O ..r V~uUI Ja~ W W NN~OO~ Ip.~.~ (S~) is .Np V IV N N W (~ W Vt O OV7 (0 0 0 I a 1G "_ W W W W yW1 W W W W W W W ( W~ W N i~ Z~ ~~ ~NO~~1A N_t~O V gNt~OJvi W jt~"'~~ C QO p Opt QQO~~~~ j ~w n w m `v W V W (~ w W OI !O W 1O V Of O I ~ y .... .~ .~ ~ ... .~ ... ._. ~ .~ I 10 V V V V V V v v y v V V V V V! -n d W I wW~~w~~~~~~~~ww rn°t w ~3 I ~cow~totospcg ~~ Ivro~-i o `° `° o 0 i ova°ooooa~ win ~ a- a, a~ a~ a~ a~ o ~~ ~ I ~,; co ;tncncn~~ ~ tntnvlAAAAw _ ~ L~ V N N j '~ A V A O V VI ~ O ()1 -~ V IV tr (oJ1 j m (1) AN t0 O W ~ ~ D x ~ V ~~~NtO X'mv)(JNvA j {p ~ . tD N N l0 N W t0 N V O O IFl ~ ~ 1G 27 i _ °) ~ ~ D ~ V) V' N N N ~~~ VI V1 UI A A A A (,) -' p d a `O ~ OOOtDtOiOdo V j0o 7.3 _ vv A O V A (~ ~ V W l0 Ut ... O p 7(D A ml~/)NbOV1A Olp ~ I Vto W N~NOO-~ AtpU1W W A VOO a~fD I W Obi i W )V A h A A A A A A A A 1 n W V~ V V W rn O) U) VI VI UI A A A A W '-1 Z ~ V U) N tD V) N t0 CT W O V A W 41 ~ t0 3 K tD j N-~'Ol0(DOD V V V V Wmt0m (0 ;A UU)-.•N~„N,. W V W W UAOUI 7 W O V O O) W A V O' ., a .~ a °, o ?~? ~ ~ a- w Do ~ ~_ ~• ID N x c w ~ ~. a ~C ~~ ~ ~ -~ . ~'- a .~.. O ~ s> ~' JJ -~l v F rn r ~~ b Q ~ _. ~ ~~~~~ b n ~~~ d 8~~-EF~!N-N-4-0 •. J" j f .~ . ~~ z ~ ~.. '- pL Q f' O q 1 O ~.%, N LYN DA.L1E r ~P J t~ i ~ s J ~ • ~ ~~~~::.... v J t fi f0 '~ -v m C P d 2 A I ~m nvQnb, n N N N ~ (/1 a'$cc~~ y S. cap m ~ 5. a vt cn a ~~w w ~n. o ~ ~~ ~ ~~ ro ~~° my ~~g~~~~ r. -• w to g o' ~. dt7 ~ Q ~ r,;~m w o ~. ~' -~ a~ ~~ o ~ ro a. a ... ~a~ ~ v~ ?• m O 1111 v ~ to ~. Z N ~ 7~~~ o ~~~ ~ ~~ w ~ ~ ~ b° ~ N 3 lZ ~~ W w a ro s~ H NNNNNNNNNN-+ ~±~.,,~ 00000 QOOOOtOOtOp 000 i~-C ~ t0 OOD ~ W (011 ~a' wN-.otomvrnu ~ =w rn ~o} -' A p -000 Nro OOO fv~ ~' _v o uv ~o'mo g i o~o ~ ~ ~ ~ ~' ~ ~/ m _ g S O A C N $ ~~O ~.. ~ ~',ww s $ `I a v o ~~ y~ 0 0 .. ao W i>, is 8 ~ 'v -~ S opwopOp~ °3~ O O O O O O O O O O O O O O a 0 1 ~, -~ 00o cr.° ~~$ i~Q~~ ~1 I ~N N N 5f O N ~ C ~. z5 S0° I roa~ OOOOOOOOOOOO C7O0 N A A .ta A A Ja A A A A :p A la A A I~ fD ~ rn bl rn of o> 'os rna, bl b> rn rn 'ol bl of v/ ~, ~~~~a a a $~~~~~~~ I ~. d, J ~ ~z t0 W ~ r ~ (~ ~C ty ~ ~ w W N O O O O O O O O O O O O p N 0 X N t ~ NNNNNNNNNNNN ~ :d -~ oo$$o°O~$~oc~igQpococnco ~-~n~t ~~p` w -` O t0 m V VI W N O O t0 lD t0 v g N ,~ OtOm V ro UI a A A v v~~~ V ~ V V VI I 'U tp C ~ W W.W NNN ...0~ ~ ~ 3 W t0 UI m .~Aa O 'V W O R N tp I N~ ~ E -~ A OI t0 N Q! {O W V to ip A m _ w WNl0mO p~NOONUI..+ m"'~ W WNOA V m VAtONNO I 3 N A A A A A A A A A A A A A A -` n~ W Q1 ~ m m m aD pp m 00 m m m W m W J J ~..~ J~ J~ J ~..~ J ...~ J v j `_ ~ ro rnrnrnrntnrnWrnrnrnrnmrnmo O pp p pp -` O O ~ _OOD OOo ~ Ot Ot .(Oll la A W 1~p I A A ~ ~ Ot tD N t/t OD IV Vl OD -+ VI m IV ~ IV V v wcAilomo°w~vomgu~'i~o iva ~ A A.p.AAAAAAAAAA I; m m commwm~lvvrnrnrnrnvl~' z~ ~ N tV0 m W O V A ~ VIN O j (p N ^J W v fT ~/ V V m Vt tp Op I~ n~ N O fV O N VI O V VI h. VI (mp V N IV ~1 (A W W tp V ~' U t0 V 0 1 ...~ J ' ...~ J ...~ J .... I f wwwWwwwww (J ~l ~ ~ ~ ~ ~ ~ v v ~ ~ ~ v ~ ~ ( J ~ ~ ~ ~~ w ~ ~ ~ ~ W ~ ~ ~ ~ ~ ~ rn m m ro wtotvto~t~wwtowtcwtotgto ,t-~-~u, a•o a°o a°a°a°o a°a°a°a°o a~o i ~ v~ ioyto~t~t~ornv g~~v W vo lye x of Ot S Ot N W O a VIVIV t~ Vm~pVjN~ V VA I tU vt m UIOW O V VIW.+tpappNl VINO i ~D C oy, co:rnrnrnrnrnrnrn rnrnrnrnA '~ vl :~l.lv>ototvtulgg ''w a ~p rn irnNmA Otn wwwty W ~Cn~7 _~ tO1tu m iVU1WNOtDm0~p V V V V Ooh ~ W IVIUIOONIOtplp-+OI WNW O~1~O i a,ro ~ En . co ~ 0 O trnlTrn VI VItJt VIUIUI VI VI U1t11J>. i~ ~~ _ W Ot O O O 0 0 ID W (4 V V V O) pt W (D 1 z O N VI ~ A O ~ w t0 VIN W .ta IV ~ l0 ~ ~ N V N i O W rn O W V -~ tll tV A t6 ul ~t vwwowvcpwcnulAUly _ ~ovlcnu-~tootNUlcnotwlnvlo i i Iv a~ o' w n 1 i I I I i I n ."1 ~ a .~ A o, ~~~ O ~ ~' Q. 0 ~_ ~• ~ ~ x rn O °w ~~ O ~~ 3 7 .~ J U ~mm ~q ~ --~ ~ 1,,,YNDIsL~ N ~~ r. Map, O p 0~' 0£ 0 o, r ~;~(`:111 g~ fJ~ ~~! 1 I I E ~`~ a ~M ~ v ~ ~ ~ gv ~~ w _ ~ N ~ ~~~"U~ N N N N N N N N N N -~ ... i` ~~ OOOOO~OpOOtOOt0{plp{p 0 000 0 OO O W 1010 _ to 0 V a~ C C m~ ~ W UI W N -~ O fo 0 V 0 VI I .~. m da~pp ~n v, ~. O. ~ ~ ~ ~ pp Oo N ~ 1 0 `~ Z L7 0'~'C'D ~~ ' m p ~ °-' p ~ 0 0 0 ° 1 ~ . to 2S. C 7 ~ N g I ~j ~ o`~~o rn ~ -~0 1 ~D pl ~ 7 n ~~ ~ ~ ~~ ~ C ~ O -o C^V w~ o~ N no p O I O ~ ~ ' j o! go ~ y a'.~ ~ N N~~ j O O O n o (}~~ V ~ Ep T ~ V A I ~ y n'• ~a~.3 ~ ~ .. S Sp v~o ~~, a 1 ~3 v^+a~•`~ z~ ° I c-° rn ~ ~~ ~ Novo ~~3 ~ 25x0 '» 1 ~ ~ ~~ ~ v wi ~ g $ U..1~3 a; 1 0 ~ c 0 ~ gN ($~ O p O OOOOOOOOOOOO~$O ~ ~ ~ O O O ~ 0 ~ . + ~ O O ~ _ • ~ ~ a a Q 4 ' ~ ~~ ~ ~ N N ~ O N OOD N ~jp W W ~ S~ I y wj °- ~ ~ N w ~ij ~ f( ~.`D~,ao looooo000000 O 0 O O fN O 3 ~ A.AA:p.AA A.taAA:pAAAJa yDN w 3 o 0 bl b1 0 0 b> bl b> 0 b1ol 'ol I ~' co ~~~ ='^ "' °° ga ° ~~~ ~ ~ . • a,o,a g ~d s coo ~, ~ nz J ~ W m ^ p1 ;g .n V A V A p C ~ r ~ W~ N N O O O O O O O O O O O O O N O ~ x NNNNNNNNNNNN-+..+~ ~ w p-li -< g~g~wgg~~~ ° I' ~~ ~ °gg ~ w Z~ VV vvVVVVVVVVVCn ~ V VOO~UIUTAAAW Wwco =.w ~ ~ ONODUI V W 10ON W 111 A N~•_.IE O V t pONA V(DNUIW-AAA `G p~ w ,. _ pQ p OODAOfVIItW N W N N a x O W /O( 711 ONNO ~ N r ~ ~ ~ I ~ ~ W A W ~m G A A A A A A a ~ D ,O D ,O O D O O~0 D 0 D~O D GJ ntn y D O rr~~ ~. ~~~~r~~~~ I :~ fD N . 0 0 W 0 0 0 0 0 0 0 0 0 0 0 O ~,~~,,~i~ i ~,o„ , U 41 I UI A W W (V -+ N A A ~ - + O ~ m OOD ~ ~ ^ ( n tA ( ~ . 1 I V v N ,G ~ to A O ~ A -N+ N ON 0 A O E W A f U V N O D O I I (~ ut Ut N a a a A a a A A A W ~~ Z~ ~ ~~~ N~ (O fo !o W W V V 0 C ~ rnwov oovlca ~ulnc p, w w~~ c" ~ a, c .~wav~ O0W ULNA-+ANAN(W71 0 1 X+'auo l ' -n -. .a ... ~ ~ ~ fO W W W W W W W W W W W W W W W ~ ~vvvvvvVVVVV V ;^~°1 C V ~3 V w~~wwwww j j j j j j j °cw_0' 1 ! ~ m~ co corn m co co ro Di a tO (O (O tD tO (O (O (O o ~ , ~ ~o o~ o~ 0 0 0 0 0 0 0 0 0 0 0 0 0 ~ ~ (D i , i W V 0 0 0 0 0 0 0 0 0 0 0 0 A i^ n ~ ~ O OCptotp 00 V V OOOUt V ~ fD ~ C IO p ~ ~ N WAO(11 V W ODAO~N(p i~3 X~ ' (TI l O W 0 f O 0 UI (J (p 0 0 UI A O (D N W ~ C0J ~ ~ 0 V UI O) N UI UI V O O V~ _ i < O N 0 i O ' " , p (~ ^ ffl ~ 1G Z)1 i ~ p(Jt ` ~ f0 fD W ~ V 000000000000E --`p~ a ~ i O tp (p t0 DD O) V V O> 01 ~ VI tJl fp j CU j~ 3 N OO o OAppUt-` V W mAOONtp p~ ~• O N W W O ~ N ~t 00 ip j W NO DO iOmNtOOV OAoOO ~ ~(D ! t~Jl m i '' W ~ W OOOOOOOOOUIUIUIUTA -ten (Vll IN~a~ OOOtOtDtDODA -' (D -IZ V W f0 VI N O _ O) A O V t0 t0 3~ (D W 0 V t0 O IV ~ 0g~pf O W 0 tp IV -+ (p 0 0 A m c D V N O o W V t0 j N 0 V W tNp ~ O "~" _~ n n. ~ a o o ?? ~~s O ,~,,. m ~' a v~ m ~ x rn O °w O, ~C