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HomeMy WebLinkAbout2003.05.13 PACKET , CITY OF COTTAGE GROVE ECONOMIC Secretary DEVELOPMENT AUTHORITY AGENDA MAY 13, 2003 7:30 A.M. 1. Call to Order 2. Roll Call 3. Approval of April 8, 2003 Minutes 4. Business Items A. Project Updates—Michelle Wolfe B. Gateway Development District 1. Oak Park Commons (RS) 2. Harkness Avenue Hauling / Reconstruction (RS) 3. Oakwood Commercial Purchase Agreement (RS) 4. Grove Plaza Update (RS) 5. Highway 61 Drainage Acquisition (SB) 6. Gateway North Redevelopment District Update (RS) C. Golf Tournament Update/ River Oaks Chamber Promotion (SJ) D. EDA Enabling Resolution (MW) E. Calendar(MW) F. East Ravine Master Planning (SB) G. EDA Annual Report (SB) H. EDA Vacancy/Al Boche Appointment (SB) I. Business Subsidies Criteria (MW/ SB) J. Liquor Sales at Great Grove Get Together (RS) 5. Miscellaneous Business Items • 6. Adjourn 7. Next Meeting Date: June 10, 2003 G:\Economic Development\E D A\Agendas\2003\Mayl3 Regular.doc K CITY OF COTTAGE GROVE ECONOMIC DEVELOPMENT AUTHORITY MINUTES April 8, 2003 Pursuant to due call and notice thereof, a regular meeting of the Economic Development Authority was held at City Hall, 7516 80th Street South, Cottage Grove, Minnesota on the 8th day of April 2003. CALL TO ORDER The meeting was called to order at 7:30 a.m. by EDA President Wolcott. ROLL CALL • Members Present: Jim Wolcott, EDA President Sandy Shiely, EDA Vice-President Gerry Weingartner, Authority Member Glen Kleven, Authority Member Dick Pederson, Authority Member Members Absent: Mike Wennen, Authority Member Others Present: Ryan Schroeder, City Administrator Michelle Wolfe, Assistant City Administrator Nancy Hanzlik, City Engineer Kim Lindquist, Community Development Director Ed Flaherty, Lariat Development Scott Johnson, Management Analyst APPROVAL OF MINUTES Authority Member Glen Kleven moved to approve the March 11, 2003 EDA Minutes. Gerry Weingartner seconded the motion and the Motion carried unanimously. ED FLAHERTY'S PRESENTATION ON OAKWOOD PARKS COMMERCIAL • Ryan Schroeder informed the EDA that Lariat Development is interested in a project at i Economic Development Authority- Minutes April 8, 2003 • Page 2 the Oakwood Park commercial site. Mr. Schroeder recently completed a rough draft for a purchase agreement for this parcel. He introduced Ed Flaherty. Mr. Flaherty has been active in development since the mid 1980s. He was part owner of Rapid Oil Change and has developed and owned a number of other projects in the Twin Cities area. He believes his company and city leaders have a congruent interest in developing an 18,000 — 20,000 sf center with a sit down restaurant with a liquor license as the anchor tenant. Mr. Flaherty has done a search of national/regional multi-tenant restaurants and found a limited scope to draw on. He has developed eight similar projects in Eden Prairie. This site may need to provide incentives to restaurants to attract the type of restaurant they would like to see. Mr. Flaherty said the secret to a good project is the business mix. Each business needs to bring a different dimension to the project. The project will not attract many national chain stores, but will bring in stable local owners. The project will probably attract 55% local owners and 45% national/regional chain stores. The key is finding tenants with a vision of what this development will be in the future. It will be impossible to determine what businesses will go in the center at first. Mayor Sandy Shiely asked Mr. Flaherty if waiting for the Kohls project to be completed would be the best course for the City. He responded that any project that goes in that space should wait perhaps six months after Kohls opens before opening. Most tenants • want to see the finished product before making a decision. Mr. Flaherty predicts that it will take one year to fill all of the tenant openings after the project opens. He said the anchor restaurant needs to be open at the beginning. Jim Wolcott wanted to know what size restaurant could work on the property. Mr. Flaherty thought any restaurant ranging from 4,000 to 20,000 sf could work on the space. Mr. Wolcott then asked about the parking situation with a large sit down restaurant. Mr. Flaherty commented that 18,000 sf of retail and a 150 seat restaurant needs cross access parking to work. The retail component would need to be reduced for a larger restaurant. Mayor Shiely asked how the demographics for Cottage Grove compared to other Twin Cities suburbs. He thought the city had average demographics based on income and density. The Mayor also asked if Applebee's recent success would help the city find another sit down restaurant. Mr. Flaherty said the success will help, but Cottage Grove is still an emerging market and the restaurant business is risk adverse. He told the EDA that they should not be disappointed with a good locally operated restaurant. He said Eden Prairie was in the same situation as Cottage Grove in 1990. Glen Kleven also mentioned that the Kohls and Home Depot projects will help bring other development to the area. Mr. Flaherty also said the highway improvements will help Cottage Grove out in the near future. Dick Pederson asked if Champs would be a possibility for the site. Mr. Flaherty thought it would be a wonderful choice and the project does have enough land for this type of project. Mr. Schroeder asked about the parking situation. Mr. Flaherty said that Champs would need to pay for the parking. Jim Wolcott asked if an Outback Steakhouse would work on the site. Mr. Flaherty thought this would be a great restaurant, but it is closed for lunch. He believes the City needs a magnet restaurant to attract the traffic on Highway 10/61. Mayor Shiely explained to Mr. Flaherty that there are not many sites that can • accommodate a large restaurant. The City needs to attract a large restaurant to this spot I r Economic Development Authority- Minutes • April 8, 2003 Page 3 and it does not need any more strip malls at this time. Mr. Flaherty understood her concern, but said the market 10 years from now will be viable and the city may need to start with a smaller restaurant. The market is currently underserved and the first priority for this project is to attract a large sit down restaurant with a liquor license. Ryan also mentioned that a developer cannot close under the purchase agreement without an approved restaurant. Mr. Schroeder further explained that three restaurants are currently interested in Cottage Grove. Mr. Flaherty also mentioned that the City will have redevelopment opportunities for projects in the future. PROJECT UPDATES Michelle Wolfe informed the EDA that there have been three new inquiries. One is for a restaurant; another is for a 90,000 sf industrial project, and a 50,000 sf industrial project. GATEWAY NORTH Ryan Schroeder informed the EDA about a new stipulation agreement on the Jensen property. Approving the stipulation will cost the EDA more for the property than originally expected, but the city will probably save money by not going through the hearing process. Gerry Weingartner made a motion to approve the agreement. Dick Pederson seconded the agreement and the motion passed unanimously. Mr. Schroeder also discussed the 1501 Partnership agreement. The EDA needed to re- ratify the changes to the agreement. The changes included: 1. City is responsible for lot combination of 1501 parent parcel with Outlot D and any required subdivision of severed 1501 parcel 2. City pays up to $2,000 for title commitment 3. City pays up to $2,000 for limited Alta Survey 4. City represents that no further improvements are scheduled in 5 year CIP on 80th Hardwood Ave. or Hardwood Court. 5. Dec. 1, 2003 Closing with interim temporary easement and immediate right of access to the property 6. Conveyance of access rights to the City for old driveway after phase 1 improvements are completed 7. City must complete all site work by June 30, 2004 unless unavoidable delays outside control of City, then can extend no later than Oct. 31, 04. If not complete, City is in default and is responsible for all 1501 costs incurred resulting from default with retail interest expense burden. 8. 1501 has right to change site plan. If the plan is materially changed, 1501 is responsible for any improvement costs exceeding $2,000 (any and all). 9. Two-way access for existing drive entrance maintained until full access is provided from Hardwood Court 10. City or its contractor must maintain $1 million in liabilitycoverage. Mr. Kleven asked why the city agreed to pay up to $2,000 for site changes. Ryan Schroeder said it was a minor detail compared to the other issues involved with the l i , r Economic Development Authority- Minutes April 8, 2003 • Page 4 contract. Glen Kleven made a motion to accept the agreement. Dick Pederson seconded the motion and the motion carried unanimously. OAKWOOD COMMERCIAL TEMPLATE Ryan Schroeder said all the "mays" and "shoulds" in the addendums were changed to "must" and "shall." Mr. Schroeder also wanted EDA members to go through the permitted use exemptions and delete what uses are not wanted on the site. Next, Kim Lindquist discussed Item D of the agreement. This item has to do with the uniform look of the project. She would like to include 360 degree architecture to the guidelines. This would basically stipulate that the back and sides of the project will look similar to the front. This will call more detail to the materials and the details ofthe project. Ms. Lindquist told the EDA that there is currently a moratorium on free standing signs in the City. Setting a standard size and color for a project will be difficult to enforce because many signs are up before the permit is approved. Variances are usually requested because it is the businesses identity. She suggests that the city allow some flexibility with uniformity and have the signs in designated areas. She also would not recommend having signs facing the park. Glen Kleven wanted to know the rationale behind addendum F. Mr. Schroeder said that • it is standard language on real estate commissions. Mr. Kleven mentioned that he liked the template and that it could be flexible. Mr. Schroeder said that the developer needs relative certainty with the agreement. Mayor Shiely asked what would happen if restaurants contacted the city directly about sites. Will the City wait for a developer or deal directly with the restaurant. Mr. Schroeder thought it would be a better idea to work with the developer or else the site may be difficult to work with for future projects. In addition, most restaurant chains work with a broker or developer. Gerry Weingartner agreed with Mr. Schroeder about finding a quality developer to put together a development. Mayor Shiely thought the chances for a better development would occur after Kohls has been built. She thought the City needed to explore other options. Mr. Schroeder mentioned that the EDA is proceeding in slow steps to get the type of development that is desired. Jim Wolcott agreed with Mr. Weingartner because the City can use the purchase agreement to guide the development. Mr. Schroeder requested the EDA's feedback on the purchase agreement. Mayor Shiely commented that she does not want to lose the opportunity to bring another sit down restaurant with a liquor license to Cottage Grove. Mr. Schroeder mentioned that the site will not be ready for a few months. Kim Lindquist reassured Mayor Shiely that staff would not just have restaurants contact the developer and she mentioned that other developers are also interested in the property. • r 1 Economic Development Authority- Minutes • April 8, 2003 Page 5 STORM WATER Ryan Schroeder informed the EDA about the opportunity to buy property on the west side of Highway 61 for storm water ponding. There are currently two owners of the property. One owner is Eller Media who owns a low land parcel and a parcel on the opposite side of the railroad tracks. The market value is $162,000 on this property. The second property is owned by Joe-Bob properties out of Hastings. City Engineer Nancy Hanzlik informed the EDA that there is currently no ponding for the Hardwood Corridor or a project on the Frattalone property. Mr. Schroeder told the EDA that buying these two properties would allow the City to put in ponding and a lift station that has been planned since 1997. Dick Pederson made a motion to obtain appraisals on the property. Mayor Shiely seconded the motion and the motion carried unanimously. US BANK AGREEMENT Ryan Schroeder informed the EDA about the changes to the US Bank agreement, which • were not substantial. Mayor Shiely made a motion to accept the agreement. Dick Pederson seconded the motion and the motion carried unanimously. FRATTALONE PROJECT Ryan Schroeder showed the EDA a preliminary drawing of an 113,000 sf potential development on the Frattalone property. To add more property, a land swap with the Aspen Grove LLC property may be a possibility. The proposal included three medium box retailers and a strip center. The historic home on that site would be moved to another Cottage Grove location. He stressed to the EDA that it is a concept plan at this point. Mayor Shiely asked what happened to the European look that would fit into the hillside. Mr. Schroeder said the project as it is currently designed does not fit that concept. Mayor Shiely also mentioned that she did not like the look of the larger box retailers on the site. Michelle Wolfe explained that the map is not to scale and the medium box retailers look bigger than they actually would be after they are built. Kim Lindquist explained to the EDA that the whole site would be graded and only the Aspen Grove property would be spared from the grading for this project. The property is not currently guided for commercial usage. Mayor Shiely expressed some concerns about the grading and tree issues for the project. Dick Pederson mentioned that he likes the project and would like to see more businesses along Highway 10/61. Mayor Shiely would like to change the proposed medium box retailers so people see a hill when they enter the City instead of businesses. • Economic Development Authority- Minutes April 8, 2003 • Page 6 Jim Wolcott asked about traffic issues with this project. Kim Lindquist explained that there will be modifications to the Hardwood Corridor and the curve at Point Douglas with a possible land swap. Ryan Schroeder said that the project would need to be built on a dramatic hill and it will be tough to grade the site. Glen Kleven thought the medium box retailers were a good idea on this site because having them close at 9:00 PM would allow for parking at a larger restaurant on the site. The EDA overall liked the plan, but the grading of the hill would need to be softened, tree preservation is a concern, and the slope would need to be landscaped properly. ASBESTOS ABATEMENT For the asbestos abatement for three commercial buildings on the Kohls site the low bid was from Dennis Environmental at $18,000.00 for the total abatement. Mayor Shiely made a motion to approve the bid for asbestos abatement for the Kohls site. Dick Pederson seconded the motion and the motion carried unanimously RIVER OAKS JOINT VENTURE Michelle Wolfe spoke about the 2003 Growth Partners luncheon to kick off the River Oaks/EDA joint venture to bring more business to the course tom the industrial park. The event went well and staff would like to expand this concept to other groups in the 1111 City. The luncheon allows businesses a great networking opportunity and it gave staff the opportunity to tell businesses about new developments in the city. Mayor Shiely thought this was a good idea. Jim Wolcott thought it would be a great opportunity to show that the City cares about what happens with their business. This will be discussed further at the next EDA meeting. ENABLING RESOLUTION Staff will update the enabling resolution for the EDA. The EDA will need to ratify the new language at a future meeting. A public hearing will be held at a future Council meeting on the changes. Mayor Shiely made a motion to ratify the proposed language change, direct staff to prepare the appropriate amendment to the resolution, set the public hearing date, and proceed with the public notice process. Glen Kleven seconded the motion and the motion carried unanimously. BUSINESS SUBSIDIES Cottage Grove business subsidies criteria needs to be updated by May 1, 2003 before any other business subsidies can be approved. The EDA and the City Council need to approve the changes to the business subsidies because both entities could become "grantors"for future projects (depending on the funding source(s) used). The EDA public hearing will be held at the May 13th meeting. Glen Kleven made a motion to hold a hearing on the business subsidies and direct staff to prepare the necessary resolution. Dick Pederson seconded the motion and the motion carried unanimously • Economic Development Authority- Minutes • April 8, 2003 Page 7 HAMLET PARK Ryan Schroeder unveiled a concept drawing of an expanded Hamlet Park with new townhomes built on land that is currently zoned industrial. Staff is currently working on creating a buffer between the Industrial Park and the single family homes in the area. Nancy Hanzlik mentioned that there would be some storm water issues that would need to be addressed before a project like this could move forward. Ryan Schroeder asked the EDA if they would be interested in this type of project. Mayor Shiely said she has received a number of concerns about future development east of Pine Hill from home owners. Kim Lindquist mentioned that a major problem with any project is that there is no way to screen the Industrial Park because of the differences in land elevation. Mayor Shiely mentioned that the buffer could be a community center, flume, or a park. Jim Wolcott said that the home owners will still see the industrial park and it does not make sense to give up any of the city's supply of industrial land for this project. Mr. Schroeder also asked about the cul de sac extension on the project that could provide an opportunity for more storm water holding and housing. Mayor Shiely liked the idea of expanding single family housing to this site. Jim Wolcott thought patio homes may be an option because of the rocky soil. ASSISTED LIVING PROPOSAL • Staff has received a plan to build a mixed senior housing/retail project in the City. The project would to be built inphases. The EDA thought it would P 1 g u d be a good project for the City. Mr. Schroeder informed the EDA that thejroect currentlylacks the funds to move P forward. ADJOURN The EDA adjourned at 10:20 a.m. Respectfully submitted, OA Scott Johnson Management Analyst 1 1 I L City of Cottage Grove • Memo To: Economic Development Authority Members From: Michelle Wolfe,Assistant City Administrator ci Date: 5/6/2003 Re: Project Updates Attached is the list of active projects. Staff will provide a verbal update regarding all current active leads at the meeting. Since the April meeting we received two new inquiries. The first is for a 25,000-30,000 SF manufacturing project. We met with the company owner and the broker, and gave them a tour of the Industrial Park. The second was a Metro Economic Development Partnership lead for a 20,000 SF light • industrial project. They were looking specifically at only a handful of cities, of which Cottage Grove was one. We submitted our proposal at the end of April and will follow- up with MEDP. We also had informal inquiries regarding a car dealership, senior housing, and an office building. On May 1, the groundbreaking ceremony was held for the Schmid and Sons Packaging project. The footage from this event will be featured on the May edition of"Cottage Grove: Your Development Partner" on Channel 16. The event will also be covered in the South Washington County Bulletin and the CG Reports Newsletter. Mayor Shiely, EDA President Wolcott, Chamber Ambassadors, and City staff represented the City. Schmid family members and the general contractor were also present. We have been in the process of checking in with contacts for projects on the active list and "hold" list to determine current status. We have received many responses and therefore are list is becoming more up-to-date. Attachment • G:\Economic Development\E D A\Documents\2003\May Proj Update.doc ACTIVE LEADS QUERY EDA PACKET 5/6/2003 Proposal ID Project Description SF/Acres Needed ED-00-31 Grove Plaza NA • ED-00-64 Manufacturing/Distribution 8-10 acres ED-01-001 90,000 SF Retail 90,000 ED-01-002 Manufacturing ED-01-006 Re- Development ED-01-010 Restaurant#2 ED-01-021 Remodel ED-01-030 Distribution 25-30 acres ED-01-032 Distribution 400,000 SF distribution center ED-01-034 Distribution Center 9 acres ED-01-037 Multi-tenant Industrial 80,000- 100,000 SF ED-01-038 Commercial 40,000- 50,000 SF ED-02-004 Office 2 acres ED-02-007 Restaurant ED-02-009 Steel Fabricator 20,000 SF ED-02-013 Office ED-02-015 Remodel ED-02-016 Bank ED-02-017 Bank ED-02-018 Manufacturer 30 acres ED-02-020 Light Industrial 2-3 acres ED-02-021 Retail 75,000 - 100,000 sf retail ED-02-023 Restaurant • ED-02-025 Office/Warehouse ED-02-026 Biotech ED-02-027 Redevelopment ED-02-028 Commercial ED-02-029 Manufacturing ED-02-030 Commercial ED-02-031 Commercial ED-02-032 Restaurant ED-02-033 Restaurant ED-02-034 Restaurant ED-02-035 Multi-tenant Office/Warehou 20-30 acres ED-02-036 Restaurant 3,500 - 5,000 SF ED-02-037 Truck Repair 40,000 to 50,000 SF on 4-6 acres ED-02-038 Restaurant ED-02-039 Restaurant ED-02-040 Mixed-use 50-300 acres ED-02-041 Commercial ED-02-042 Industrial 10 acres/80,000 SF ED-02-043 Industrial 250,000 to 300,000 sf ED-02-044 Industrial 3 -4 acres ED-02-045 Light Manufacturing 3-4 acres ED-02-046 Industrial 2 acres ED-02-047 Redevelopment Commercial • Page 1 ACTIVE LEADS QUERY EDA PACKET 5/6/2003 Proposal ID Project Description SF/Acres Needed • ED-03-001 Light Manufacturing ED-03-002 Manufacturing 30,000 sf facility ED-03-003 Manufacturing 2 acres ED-03-004 Light Manufacturing 10,000 sf ED-03-005 Warehouse/Indoor Storage ED-03-006 Manufacturing 7.25 acres/90,000 sf ED-03-007 Restaurant ED-03-008 Manufacturing 40,000- 50,000 sf ED-03-009 Manufacturing 25,000 - 35,000 sf ED-03-010 Light Industrial 2 acres • • Page 2 s , City of Cottage Grove • Memo To: Economic Development Authority From: Ryan R. Schroeder Date: 05/09/03 Re: Oak Park Commons Enclosed, please find the following: 1. Letter from Roger Jensen representing the Oak Park Commons development 2. Spreadsheet detailing Hardwood Court utility costs 11 3. Elevations and layout of the Oak Park Commons development Oak Park Commons is a 28,000 square foot retail and office complex proposed for construction in 2003 at 7420-30 80m Street in Cottage Grove. It is proposed to take access off both 80th Street and Hardwood Court. Hardwood Court will be constructed as part of the Gateway redevelopment project. Initially Oak Park Commons had proposed to access utilities from 80m Street but it was determined that those utilities were not readily available to this development in the location and of the size necessary to provide service to the development. As a result we are planning to place utilities under Hardwood Court sized to provide services to this development as well as the City owned Oakwood commercial site. We have also made provision to serve the 1501 property should that property ever change it's service location (due to undersized utilities from it's current service locations on 80th Street). In that these utilities are serving three properties we have determined that a cost sharing will occur between the three parcels for the utility costs (the $135,000 road development costs are covered through Gateway revenues; 1501 will relocate their access from future Hardwood Avenue to Hardwood Court and the City parcel will not be allowed Hardwood Avenue access). Given that all three properties benefit by the construction of Hardwood Court utilities each property is sharing in the development costs of those utilities based upon the length of the construction project necessary to provide service to that property. As 1110 can be seen by the spreadsheet 205 lineal feet of pipe is necessary to service the •Page 1 City property from the Hardwood Avenue intersection. A total of 392 lineal feet is necessary to service the 1501 property and a total of 700 lineal feet is necessary to service the Oak Park Commons property. As a result, 67%, or $60,600 of the utility extension costs will be borne by Oak Park Commons. Oak Park Commons is requesting relief on either this cost sharing methodology, relief on utility area charges (which are borne by the developer in the amount of $18,915 for storm water (all area and connection charges are in an attached exhibit) or in a contribution toward his excavation and connection expenses in order to access the Hardwood Court utilities. Due to the topography of the area, in order to drain the Oak Park Commons site to Hardwood Court the on site storm piping will be as deep as twenty three feet (in that we are draining the front of the site to Hardwood Court as well as the northern portion of the site in order to avoid trenching 80th Street and accessing an existing 18" storm pipe). Oak Park Commons is asserting, through their correspondence of April 23, that the City bears the responsibility of providing accessible utilities when it declares that the site is developable (in this case zoning the property commercial), and further, that we had opportunity to cost effectively • address utility deficiencies in 1998-1999 when 80th Street was reconstructed; our failure to do so is creating excessive development costs. A side issue to the above is the grade of Hardwood Court and how that relates to Oak Park Commons and 1501 properties. Hardwood Court is being developed at an 8% grade. If the Oak Park Commons site were to be lowered by three feet that grade would be reduced to about 7.5%. We have requested that the developer consider lowering his site in order to effect the reduced grade on Hardwood Court. The developer has represented that the excavation cost of that request is between $10,000 and $20,000 with some minor offsetting savings from a reduction in height of an on-site retaining wall. We believe there is mutual benefit in that grade reduction due not only to whom the roadway serves but also in improving how the Oak Park Commons site will work. Regardless, as a mutually beneficial project enhancement additional excavation of the site should be considered by both the developer and the City. The developer of Oak Park Commons will be at your EDA meeting in order to formally make his request for consideration. EDA Action: Based upon discussion. F:\USERS\RSCHROED\Oak Park Commons Utilities.doc • Page 2 04/23/2003 17: 50 7637869051 ACEDP PAGE 02 OakParkCommons • 6409 Royal Pines Pine,Lino Lakes,MN 55038 Telephone#763-458.8183 April 23, 2003 Mr. Ryan Schroeder City Administrator - City of Cottage Grove 7516 80th Street South Cottage Grove, MN 55016 Dear Ryan. I have had some time to digest the City of Cottage Grove's decision to charge Oak Park Commons with two-thirds of the entire cost of utilities in Hardwood Court. We feel that this is excessive when considering the benefit to other business and the city served by these utilities as well as all the other factors that surround the whole utility issue for our building. For openers we were quite surprised early on to find that the utilities were not stubbed into the site when 80th Street was redone a few years ago. My engineer, attorney, architect and virtually everyone in the construction industry I talk to feel that this was an unbelievable oversight and raise the question as to whether or not the city may have some recourse against the engineering company that oversaw the project. It appears that we are paying dearly for their mistake- It also brings up a question in my mind that since the utilities were not stubbed in why are we being charged full area wide charges? To my knowledge developers pay a city these fees in order for the city to recoup some of it's up front costs in putting in infrastructure that benefits a developer once the site is ready for development. In this case the utility work was not done so why should we be required to pay all of the area charges'? Stepping back the whole situation seems rather interesting in that Dr. Kretchmer and J are only developing this site because our property was taken by the city to give to Kohls. I am sure that Kohls is probably receiving some subsidy from the city as an enticement to locate in the community. We believe that the 28,000sf retail/office development we are undertaking will also be an important tax paying asset to the community as a whole and especially the Gateway North project area. Oak Park Commons will not only house some of the displaced businesses resulting from the Kohls taking but also attract to the community business that will improve the quality of life for our residents and add to the city's economic base. 04/23/2003 17: 50 7637869051 ACEDP PAGE 03 • Due to the topography of the site and other issues we have previously discussed this • project is becoming increasingly expensive. We have incurred additional engineering costs in the revisions to the site plan to get the storm water to flow up to Hardwood Court to accommodate the city's request. Now we are being asked to revise our plan again in order to drop the site three feet in order to resolve issues with Hardwood Court, Coldwell Banker Burnett and their parking lot expansion, Although I agree that this will make for a better overall plan for the entire corner and roadway it is not without cost and time to me. With the above said we are desperately looking for ways to reduce our development costs in order to make the project financially feasible. We also have to get under construction soon in order to accommodate the needs of two displaced businesses from our other building, We believe that a request for an adjustment on our utility costs or area wide changes has merit and is certainly justifiable for all the reasons stated herein. This letter is not intended in anyway to take away from the cooperation and attention we have received to date from you and your staff We could not ask for any better treatment and assistance then you and your staff have provided. This is a monetary and fairness issue that we would like addressed. Since ely i • i ogee Je n • • CITY DEVELOPMENT COSTS AND FEES FOR • OAK PARK COMMONS FEBRUARY 2003 I CITY DEVELOPMENT Oak Park FEEICHARGE(Res.No.03•?) Commons LOT AREA(SQ.FT.) 108,900 LOT AREA(AC.) 2.5 WATER WORKS AREA CHARGE $2,226.00 per acre $5,565.00 SANITARY SEWER AREA CHARGE $1,416.00 per acre $3,540.00 STORMWATER AREA CHARGE(WEST $7,566.00 per acre $18,915.00 DRAW) WATER CONNECTION CHARGE $1,816.00 per acre $4,540.00 SANITARY SEWER CONNECTION $1,005.00 per acre $2,512.50 CHARGE $3.30/sq.ft.for pond area plus OFF-SITE STORMWATER PONDING FEE $2,500 infrastructure cost plus $29,929.73 1,268.9*drainage area acreage ARK FEE IN LIEU OF LAND DEDICATION 4%of fair market value of the $13,000.00 parcel's gross land area($325,000) SEWER AVAILABLITY CHARGE(SAC)FY 2003 $1,275.00 per unit HARDWOOD CT.UTILITIES $60,600.65 TOTAL CITY DEVELOPMENT FEES AND CHARGES $138,602.88 PLUS SAC COST PER SQ. FT. $1.27 Additional costs to be determined III PAGE 1 OF 3 F:\Groups\PLANNING\Excel Folder\Oak Park Commons 2-18-03 CITY DEVELOPMENT COSTS AND FEES FOR OAK PARK COMMONS FEBRUARY 2003 • ANCILLARY COSTS Oak Park Commons Landscaping Letter of Credit Tree Mitigation $6,257.09 Sanitary Sewer Infrastucture (Hardwood Ct.) Developers costs $15,799.69(includes Eng.) Water Infrastructure(Hardwood Ct.) Developer's costs $21,652.27(includes Eng.) Stormwater Infrastructure(Hardwood Ct.) Developers costs $23,148.69(includes Eng.) Planning Application Fees Public hearing notice list$60 Grading Permit and Review Fees 1997 Uniform Building Code 1997 Uniform Building Code,Table 1A;Plan Building Permit and Review Fees Review Fee of 65%of Table 1A Permit Fee; and$15 Administration Fee 1%of Contract price($50 minimum)plus state Plumbing Permits surcharge fee equal to$0.50 up to a$1,000 valuation or.0005 times cost of valuation over $1,000 Electrical Permits Refer to the State Board of Electricity 1%of Contract price($50 minimum)plus state Heating and Cooling Permits surcharge fee equal to$0.50 up to a$1,000 valuation or.0005 times cost of valuation over $1,000 Water Meters Refer to City Resoluton No.02-005 Additional costs to be determined • PAGE2OF3 F:\Groups\PLANNING\Excel Folder\Oak Park Commons 2-18-03 CITY DEVELOPMENT COSTS AND FEES FOR OAK PARK COMMONS FEBRUARY 2003 I Oak Park Commons Stormwater Payment in lieu of on-site detention Land Cost $3.30 per sq.ft. Infrastructure Costs $2,500 Pond Area Calculation(acres) -0.0028 X x square + 0.0665x + 0.02 Cost for Water Quality Pond vs. Drainage Area $1,268.90 X + $2,500 Oak Park Commons 108,900 Lot Area(sq.ft.) 2.5 Lot Area(acres) Land Cost for Pond Area $24,257.48 Pond Area Calc.(acre) 0.16875 ,st for Water Quality Pond $5,672.25 Total Stormwater Payment in lieu of on-site detention $29,929.73 • PAGE 3 OF 3 F:\Groups\PLANNING\Excel Folder\Oak Park Commons 2-18-03 HARDWOOD COURT UTILITY COSTS City Coldwell Oak Park • Sanitary Sewer 697 feet $23,589.54 Est. Cost $33.84 $/lineal ft. 205 feet $2,312.70 $2,312.70 $2,312.70 187 feet $3,164.45 $3,164.45 305 feet $10,322.54 Sub-Total $2,312.70 $5,477.15 $15,799.69 $23,589.54 Water City Coldwell Oak Park 700 feet $32,259.50 Est. Cost $46.09 $/lineal ft. 205 feet $3,149.14 $3,149.14 $3,149.14 187 feet $4,308.95 $4,308.95 308 feet $14,194.18 700 feet Sub-Total $3,149.14 $7,458.09 $21,652.27 $32,259.50 Storm Water City Coldwell Oak Park 700 feet • $34,489.00 Est. Cost $49.27 $/lineal ft. 205 feet $3,366.78 $3,366.78 $3,366.78 187 feet $4,606.75 $4,606.75 308 feet $15,175.16 700 feet Sub-Total $3,366.78 $7,973.53 $23,148.69 $34,489.00 City Coldwell Oak Park Grand Total $8,828.63 $20,908.77 $60,600.65 $90,338.04 • F:\Groups\PLANNING\Excel Folderthardwood court utility breakdown3-7-03 • p1 .y, Wt! N9 I. li ! Ihijri II c_ 'Iy I. � 1� hl% c °s +ii ' I... k~> 12hlHm tzuroit Al — 4,11.11 < 1111 i "'� ° z; IL1b �anal tif �h�itiFfJ,.�1' Q1 gill EF: i. II Ili mo; =� . � i, II. ,,!1'I 1. mom _ ;PiliF4- i 41.11.I at � w nl IV 1 Illijili 1 k IIII 1Z: I 1 • gl% lare2 _ ti rn 114,. Ill I kG X17 _- Q p ilrrl tai l 1 tI dor P < ll •4 - •Nina' ® My H: h!: (I r t"w 41 —� w.Ipilli g 'µ::��1 z anirghli.r : xw 4.11 Ii w i���r�`!1hM� 11111 o 1111 �j_ si 1411 II Fki: i� axt:,Awdlrlil III • GAK°CA<C471 ON6 ,F-EVATIONS - srm erne j j ,,'DWNDT. iNFmP..J4 'Eaq LLFI RM19 .w ,..4_,,...,_____ �^ if if'. �uoctD V cwa . - _ Z0 3Ehd dQ3Et/ TS0E98LE9L l.Z:7T E00Z/0Z/E0 • '',;.'.f ' 'i i'i'i';'' I II 4,1tViiiiiiiAiii1941111111 II _F 1 'a - f ,, s o • n timoggiosimi..1,1 a ii 7C trodirigiESEMINI 'T''i �i'iIfi�i'�i rn 4.'^ .kA'., r �'�, rkfr rn 10$14: i1 AiP I{ ia�f:;fi , . iIIz ti!if ;Mt! -a II OAK PARK COh"'1CN5 ELEVATiONE, N Mtn COTTAGE GROVE,M PNtih Ar. eTEME oro Iaevle.w'a '_ f11ICM tJE ^-T-- �_ wlrua, "' 1 ii I e�ocfs erg Doti MAKER CO 39Cd el39d TG6699LE9L LZ:ZI E00L/0Z/E0 • , • I , M*iN IR/diT. i T--;--- f.;_' . mizi . I t 't 1 LT- �! I r 0 I I 1 , — q . 1 I (. 1 q �,r I 6 ., . so. e___ron iv. Ic F74 - I` • = = I I1 1 I1I hl II IIIIIIIIIIJI1 1r;ii r„rairn.aex II i r I 4) • ( Olgi1411:4::: p.,;,,,,,„,,t,,,r,o3 Pa Igl ©a tia AlMil ifl 1174 City of Cottage Grove • Memo To: Economic Development Authority From: Ryan R. Schroeder Date: 05/07/03 Re: Harkness Avenue Hauling / Reconstruction As the Board is aware, exporting of fill material from the Gateway grading project has begun. In total, something in the neighborhood of 300,000 cubic yards of fill is being removed from this project. The destination for the material is north on CSAH 19 into Woodbury. At present, DLR, the excavating contractor is using 80th Street to CSAH 19 as their haul route. While we have requested use of other routes (primarily Highway 61 as the route alternative) DLR has represented that due to the additional time and mileage of those route alternatives the excess cost to them of that operation would be somewhere in the $60,000 to $100,000 range. It has been suggested that the transport contract was bid with the 80th Street route figured into the mileage. Hence, a change in that route would result in a request for compensation due to changed conditions in the operation. In working with DLR, we believe we have arrived at a slightly improved scenario. It has been determined that the contractor can transport the fill northbound on Harkness Avenue to 70th (eastbound) to CSAH 19 to the north and return using the 80th Street route. An advantage of that is that the denigration on 80th and the traffic hazards of that route through school zones on the highly trafficked road will be cut in half. Harkness is a narrow road and certainly not constructed for this level and weight of traffic. However, in discussions with the neighborhood it appears that the residents would support the haul route if, upon completion of the operation the road is reconstructed. A review of Harkness in its present condition reveals that most of the present roadway is failing. Hence, some amount of maintenance procedure is necessary on that roadway regardless of whether the road is used as a haul route. Using the roadway as a haul route, however, allows us to direct Gateway dollars toward repair of the road. • • Page 1 Harkness Avenue has an approximate 20 — 22 foot construction width as a rural section. We are not proposing that that road section or the current character of the roadway change (no curb and gutter, no smoothing out of the hills and valleys, no widening, no reconstruction of ditches). What is proposed is that we reclaim the roadbed, apply soil stabilization and provide an overlay mat. The cost of this operation is estimated at $60,000 and has been suggested for funding through Gateway revenues. We expect this operation would result in a 10-year, perhaps better roadway life. Given that the project is not a total reconstruction and given that the project is proposed as a barter for the hauling operation we are not proposing that the project be an assessable project. Safety over the perhaps two month hauling operation is of primary concern. We are proposing the route as we are (return on 80th Street) so that two trucks do not meet on Harkness Avenue. Further, we would provide additional signage on the Harkness Avenue route warning the travelling public of the "trucks hauling" operation. Further, we would reduce the speed limit during the duration of the operation to a 20-mph speed and would closely monitor that activity. EDA Action: Approve the Gateway budget to provide for Harkness Avenue reclamation per the above. 411 •Page 2 4 City of Cottage Grove • Memo To: Economic Development Authority From: Ryan R. Schroeder Date: 05/08/03 Re: Oakwood Commercial Purchase Agreement The EDA has been reviewing the template proposed to be used for the eventual sale of the 3.846-acre Oakwood Commercial site across Hardwood Avenue from the future Kohls Department Store. Enclosed is the latest revision of that agreement. Within the body of the agreement itself, there have been very few changes. As discussed at your April meeting, however, the Community Development Director is suggesting changes on page three of the agreement. These changes are denoted in bold type and relate to exterior aesthetics of the future building(s). Additionally, the board had requested that all the "may" and "shall" language within the Architectural Guidelines be changed to "must" and "shall". Those changes are now made within the exhibit. Finally, at your last meeting we enclosed as an exhibit the permitted, conditional and accessory uses that are allowed according to zoning code on this property. We had highlighted those that staff did not believe were appropriate uses on this particular parcel. Within Exhibit D, we have refined this list further for your consideration. Please take the opportunity to review this exhibited of permitted and conditional uses on this parcel in order to suggest any further refinements. EDA Action: Propose changes as necessary to the purchase agreement template. Our staff goal is to integrate any changes into a final review document for your June meeting for consideration by Council in June or July after which we would propose to offer this property to the market. With a July 1 closing with Kohls scheduled and with grading expected to be complete within that same timeframe we would contemplate a potential sale of the property during the last half of 2003 for a potential 2004 construction project. We believe that within the June/July timeframe this property will show much better to the marketplace than has been readily apparent up to this point in time. • •Page 1 • PURCHASE AGREEMENT AND AGREEMENT FOR OPTION S This Purchase Agreement(the "Agreement") is made this day of , 2003 by and between CITY OF COTTAGE GROVE, a Minnesota municipal corporation (the "Seller") and a corporation(the"Buyer"). 1. SUBJECT PROPERTY AND OPTION PROPERTY. The Seller is the fee owner of certain real estate (the "Property") located in Washington County, Cottage Grove, Minnesota, which is depicted on the attached Exhibit B. The Property consists of approximately acres that is a part of land to be platted as Lot 2, Block 3, GATEWAY NORTH FIRST ADDITION, and the legal description of the Property will be determined by survey as provided in paragraph 7 of this Agreement. The Seller also owns additional real estate adjacent to the Property, consisting of approximately acres (the "Option Property"), which is the remainder of the land to be platted as Lot 2,Block 3,GATEWAY NORTH FIRST ADDITION. 2. OFFER/ACCEPTANCE. In consideration of the mutual agreements herein contained, Buyer offers and agrees to purchase and Seller agrees to sell and convey the Property and all improvements thereon,together with all appurtenances,pursuant to the terms of this Agreement. In addition, Buyer and Seller agree to execute an Option Agreement for the Option Property as provided in this Agreement. 3. CONTINGENCIES. This Agreement is subject to contingencies as identified in subparagraphs A through D below. The provisions of subparagraph A may not be waived. The provisions of subparagraph B are for the mutual benefit of Buyer and Seller and may not be waived except by the parties' mutual written consent. The provisions of the first sentence in subparagraph C are for the sole benefit of the Buyer and may be waived only in writing by Buyer. The provisions of the final sentence in subparagraph C and of subparagraph D are for the sole benefit of the Seller and may be waived only in writing by Seller. If any of the contingencies are not satisfied or waived, this Agreement shall be null and void and Buyer shall be entitled to return of Buyer's earnest money. A. SELLER ACCEPTANCE. This Agreement shall be presented to the Seller's city council within 30 days of the date it is submitted to Seller, fully executed by Buyer. If the Seller's city council does not approve this Agreement within thirty (30) days of the date of this Agreement, this Agreement shall be deemed automatically null and void and of no further force or effect and Seller and Buyer shall immediately execute a written acknowledgement that this Agreement has been terminated in its entirety. B. GOVERNMENT APPROVALS. This Agreement is contingent upon Seller obtaining the subdivision approval contemplated at paragraph 7 of this Agreement and upon Buyer obtaining necessary governmental approvals for the construction of a shopping center of at least square feet. CAH-225312v6 1 CT160-91 C. TENANTS. • 1. Anchor Tenant. Seller's obligation to close is contingent upon its approval of the restaurant selected by the Buyer to serve as the initial anchor tenant for the shopping center. Seller will not approve any restaurant that does not meet the following minimum qualifications: a. seating capacity for sit-down dining of at least seats, and covering at least square feet of gross floor area or square feet of interior seating area; b. intoxicating liquor to be served to patrons; and c. restaurant is one of the regional/national brands named as "Restaurant Users" in the attached Exhibit D, or is judged to be an equivalent by Seller. As a further precondition to closing Buyer will furnish Seller with evidence, reasonably acceptable to Seller that the selected restaurant is obligated to proceed with the restaurant following the closing. 2. Other Tenants. In addition to the Anchor Tenant, the Buyer understands that the Seller views both the uses and the mix of uses to be established in • the shopping center to be of great significance. It is Seller's goal that the proposed shopping center contains top quality tenants and uses; and provides a diverse variety of shopping opportunities for the community. Seller has selected Buyer as purchaser of the property, in part because Buyer accepts Seller's vision and has agreed to comply with the provisions of this paragraph. Specifically,Buyer represents to the Seller as follows: a. Buyer will not enter into initial leases for any uses that are not included in the list of permitted uses described in the attached Exhibit D. b. Buyer will seek the advice and counsel from Seller regarding the mix of initial uses to be established in the shopping center; and Buyer agues that it will attempt, in good faith, subject to its reasonable discretion and sound business considerations, to implement, wherever possible the advice and suggestions of Seller regarding initial use mix. D. SELLER APPROVAL OF DEVELOPMENT CONCEPT. This Agreement is contingent upon the Seller's approval of the final design plan for the Property. The Seller requires that the Property be developed with a high quality commercial development that is acceptable to Seller. Buyer will provide Seller with building . renderings identifying the materials to be used in the construction of the shopping center within sixty (60) days following the date that the Purchase Agreement is executed by both parties for the purpose of obtaining Seller's approval of the CAH-225312v6 2 CT160-91 development, and said approval shall not be unreasonably withheld by Seller. At a minimum, and without limiting the Seller's discretion to approve the final design plan, such a development must meet the following criteria: (i) the exterior • treatments on all structures must use materials and colors that are substantially similar to the Walgreen's/Gateway Center/TCF development located at East Point Douglas Road and 80th Street; (ii) at least 80 percent of the non-glass exterior building material on the front and side façades, and any side of the building facing a street must be brick or material deemed superior by Seller, and on the rear façade up to 15 percent of the rear façade may be rock face block provided it is located along the base of the building, and the remaining 85 percent of the rear façade must be brick or material deemed superior by Seller; (iii) any development on the Property must be consistent with the Gateway architectural controls policy, a copy of which is attached as Exhibit C (but the enumerated criteria in this paragraph supersede any inconsistent provisions in Exhibit C); (iv) landscaping for the development must exceed the minimum requirements under City ordinances in quantity of plantings by at least 20 percent and at least 50 percent of the plant materials must exceed minimum required plant sizes; (v) the site design must positively impact the development opportunity for the adjacent Option Property and must provide for cross-access and cross-parking easements over the Property and the Option Property; (vi) exterior lighting must be consistent with the Hardwood Corridor street lighting or the lighting along the sidewalk at Home Depot and Grove Plaza and meet city required footcandle standards; (vii) the development must have ground monument signage substantially similar to the Gateway Center or TCF monument signage at East Point Douglas Road and 80th Street, except that all signage must be of the same color and style; (viii) the Buyer must agree to pay one third of the cost of any off-premises monument signage that the Seller constructs at Hardwood Avenue and 80th Street, not to exceed the sum of Ten Thousand and no/100ths Dollars ($10,000.00); (ix) each tenant is permitted one 26" tenant identification of individual internally illuminated letters, with 36" x 36" logo which will not include project advertising except as part of the tenants trade name or logo . Wall signs must be located within the designated sign bands delineated by the structure architecture and cannot extend closer than two feet from the tenants lease line. All letters in the tenant identifications shall be of uniform color, except for the logo which can be multi-colored; (x) the development must include publicly accessible outdoor spaces such as a pedestrian plaza, park, pavilion or courtyard. A water feature, fountain sculpture, clocktower, or other art feature maybe considered in lieu of a larger outdoor space. (xi) the development must be designed in a manner to create the impression of a unified project with the Option Property and overall sense of a unique or identifiable place; (xii) "360 degree " architecture is required, meaning that all sides of all buildings must be treated with the same architectural style, use of materials, and details as the front elevation of the building. E. PURCHASE PRICE AND TERMS: A. PURCHASE PRICE. The purchase price (the "Purchase Price") for the Property • shall be determined based upon the survey to be provided under paragraph 7 of this CAH-225312v6 3 CT 160-91 Agreement. Buyer agrees to pay per square foot for the first • square feet of land area in the Property and per square foot for each square foot or portion thereof in excess of square feet. B. TERMS. 1. EARNEST MONEY. Within two business days after Seller's acceptance as provided at paragraph 3.A. above, Buyer agrees to pay to Seller contemporaneous the amount of Twenty Thousand Dollars ($20,000.00). Seller may deposit the amount in an interest-bearing account pending Closing. Seller is entitled to all interest that accrues on the $20,000.00, and said interest shall not be credited against the Purchase Price, except that Seller shall be required to return accrued interest to Buyer if this Purchase Agreement is terminated due to any of the following: non-marketability of title to the Property; Seller's default; or inability of Buyer to obtain the necessary governmental approvals required to construct a shopping center of at least square feet. 2. BALANCE DUE. At Closing, Buyer shall pay Seller any remaining Balance Due under the terms of this Agreement by certified check or other immediately available funds. C. DOCUMENTS TO BE DELIVERED AT CLOSING. At Closing Seller shall • deliver to Buyer: 1. Warranty Deed conveying good, marketable and insurable title to the Property to the Buyer free and clear of all liens and encumbrances except the following items (allowable encumbrances): a) Building and zoning laws, ordinances, state and federal statutes or other governmental regulations; b) Easements and restrictions of record which have been approved by Buyer in writing; c) Real estate taxes for which the Buyer is responsible under paragraph 5; d) Reservation of any minerals or mineral rights in the State of Minnesota; e) Covenant by Buyer (i) that within one year of the date of the deed, Buyer will construct improvements on the Property consistent with the final design plan approved by the Seller under paragraph 4.D of this Agreement, provided that Buyer is able to obtain approval from • all the necessary government authorities and (ii) granting to Seller a reverter that includes the right to re-enter and take possession of and title to the Property if Buyer fails to construct the improvements CAH-225312v6 4 CT160-91 within the one-year period as required. f) Cross-easement and cross-parking easements in favor of the Option • Property which has been approved in writing by Buyer and Seller prior to the date of closing. g) Declaration of covenants and restrictions as provided at 4.C.3. below. 2. Standard form Affidavit of Seller. 3. Declaration of covenants and restrictions that prohibits the use of the Property for a gasoline station or automotive-related use, including but not limited to automobile service or repair or retail sales of auto parts. Seller at its option may prepare and record the declaration of covenants and restrictions prior to Closing. 4. Option Agreement as provided at paragraph 14 of this Agreement. In lieu of recording the Option Agreement, the parties may elect to record a Memorandum of Option Agreement. 5. Such other documents as may be reasonably required by Buyer's title examiner or title insurance company. 4. REAL ESTATE TAXES AND SPECIAL ASSESSMENTS. A. The real estate taxes due and payable in the year of closing shall be prorated between the parties as of the Closing Date. B. Seller shall pay all special assessments levied against the Property prior to or on the Closing Date. C. Seller shall provide for payment of all special assessments for which an improvement has been ordered but assessments have not yet been levied as of the Closing Date, by escrowing an amount equal to two times the estimated amount of special assessments. D. Buyer shall be responsible to pay taxes and special assessments that are levied or become pending after Closing. 5. TITLE AND REMEDIES. Within thirty (30) days after Buyer's acceptance of the survey required by paragraph 7 of this Agreement, Seller shall deliver to Buyer a commitment for an owner's policy of title insurance, certified to a date that is on or after the date of this Agreement and including proper searches covering bankruptcies, state and federal tax liens, judgments and special assessments. The title commitment must commit to insure that, at closing, Buyer will have good, marketable, and insurable title of record to the Property, free and clear of all liens, encumbrances, leases, claims and charges, all material easements, rights of way, covenants conditions, and restrictions and any other matters affecting title, except as approved by CAH-225312v6 5 CT160-91 Buyer in writing. The title commitment must commit to insure that the property does not violate any zoning or other use restrictions; and that the property is properly zoned for Buyer's use, • which is to develop and construct a shopping center. The title commitment must either waive or commit to insure against the following standard exceptions: facts which would be disclosed by an ALTA/ACM Land Title Survey of the Property, rights and claims of any parties in possession, and mechanic's contractor's and materialman's liens and lien claims. The title commitment shall be certified to the legal description of the Property as established by the survey required at paragraph 7 of this Agreement. Buyer shall be allowed ten (10) days after receipt of the commitment to review the same and provide Seller with Buyer's written objections. Objections not made in writing will be deemed waived. If the title to the Property or any part thereof, is found to be unmarketable, Seller agrees to cure such defects and render the title marketable, by action to quiet title if necessary, within six (6) months after receipt of Buyer's written objections. Pending correction of title, the payments required by this Agreement shall be postponed, but upon the correction of title and within fifteen (15) days after written notice to Buyer, the parties shall perform this Agreement according to its terms. It is further understood and agreed that if the title to the Property or any part thereof is found to be unmarketable and has not been corrected within the six (6) month period, then this Agreement shall be null and void and all monies paid under this Agreement from Buyer to Seller, including accrued interest on earnest money, shall be refunded and neither Buyer nor Seller shall be liable for damages hereunder. If the title to the Property is found marketable or will be made so within the required time period, and Buyer defaults in any of the covenants or agreements herein provided and continues in default for a period of fifteen (15) days, then and in that case, Seller may at its option, deem this Agreement terminated by giving written notice thereof to Buyer, and on such termination, all the payments made upon this Agreement, including accrued interest on earnest money, shall be retained by Seller as liquidated damages, time being of the essence hereof. This Agreement may be enforced by either party by specific performance; provided that: (i) the Agreement has not been terminated; (ii) any action for specific performance must be commenced within six (6) months after the right of action arises; and (iii) nothing in this Agreement shall obligate the Seller to exercise its power of eminent domain for the purpose of making title marketable,but Seller at its option may do so. 7. SUBDIVISION APPROVAL AND SURVEY. The transaction contemplated by this Agreement requires the subdivision of land. The Seller has already initiated an application for approval of the proposed plat of GATEWAY NORTH FIRST ADDITION. The Seller will obtain subdivision approval or waiver of subdivision requirements for the further subdivision of the Property from Lot 2, Block 3, GATEWAY NORTH FIRST ADDITION. The Seller agrees to bear the sole cost of obtaining necessary government approvals of the subdivisions contemplated by this Agreement. Buyer agrees to cooperate with Seller as necessary to obtain the necessary approvals. If Seller obtains a subdivision waiver that is conditioned upon a subsequent replat that includes the Property and Option Property, Buyer agrees to cooperate with Seller in connection with the replat. The provisions of this paragraph shall survive closing. Within 30 days after acceptance of this Agreement, Seller will provide Buyer with a boundary survey of the Property, prepared at the Seller's sole expense. The survey provided will be a staked survey made in accordance with the Minimum Standard Detail Requirements for . ALTA/ACM Land Title Surveys, and (a) certified to Buyer and Seller and Title insurer; (b) prepared by a registered land surveyor in form and substance satisfactory to Buyer and Seller and CAH-225312v6 6 CT 160-91 sufficient to enable the Title Insurer to issue extended coverage, (c) containing a legal description of the Property; (d) detailing all easements, encroachments and utility rights-of-way upon the Property (e) showing the location of private driveways and public streets so as to affirmatively show rights of ingress to and egress from the Property, and (f) certifying the area of the Property both in acres and in square feet. Buyer must make any objections to the survey and legal description within fifteen (15) days of receipt. If Buyer's inspection of the survey reveals conditions unsatisfactory to Buyer in its sole discretion, Buyer may rescind this Agreement, in which case the Earnest Money will be returned to Buyer. 8. ENVIRONMENTAL. Seller agrees to provide Buyer with a current Phase I Environmental Report prepared in accordance with ASTM standard E-1527-00 covering the property within thirty (30) days after acceptance of the purchase Agreement by Buyer and Seller, at Seller's sole cost and expense. Seller will provide soil tests, if available. If Seller does not have soil tests available, Buyer has the right to obtain soil samples at its sole cost and expense. If Buyer's inspection of the Phase I Environmental Report reveals conditions unsatisfactory to Buyer in its sole discretion, Buyer may rescind this Agreement, in which case the Earnest Money will be returned to Buyer. 9. BUYER'S DUE DILIGENCE. For a period of one hundred eighty (180) days following the approval of this Agreement by Seller's city council and the recording of the plat of GATEWAY 1ST ADDITION and Seller providing Buyer with a Survey and Phase I Environmental Report as referenced in paragraphs 6 and 7 of this Agreement, Buyer will be allowed to conduct such due diligence reviews, tests, inspections and investigations with respect to the Property as Buyer deems necessary, including,but not limited to, the following: • A. Obtaining soil tests and conducting other environmental investigation as Buyer deems advisable, at Buyer's sole expense. Buyer agrees to indemnify the Seller against any liens, claims, losses or damage occasioned by Buyer's exercise of its right to enter an work upon the Property. Buyer agrees to provide Seller with a copy of any and all reports or test results prepared as a result of such examination and tests. B. Applying for and receiving necessary government approvals (up to and including the issuance of a building permit) to build a shopping center that will satisfy the contingencies at paragraphs 3.B. and 3.D. of this Agreement. C. Preparing and presenting to Seller a master plan for the Property and the adjacent Option Property, to show layout and use for the entire 3.846 acres. Buyer agrees to exercise due diligence and best efforts to complete all of the activities contemplated by this paragraph within the 180-day time-frame provided herein. 10. SELLER'S COVENANTS AND WARRANTIES. Seller covenants and warrants to Buyer that: A. There are no other options or written agreements with respect to the sale of the Property. • CAH-225312v6 7 CT160-91 B. From and after the date of approval of this Agreement by Seller's city council, • Seller will not transfer or encumber any part of the Property or permit any changes to the zoning classification of the Property. C. Seller will not negotiate or enter into a purchase agreement with a third party for the sale of the Option Property until Buyer has completed the master plan required under paragraph 9.C. of this Agreement and until Buyer has been given the opportunity to exercise its option to purchase the Option Property as referenced in paragraph 14 of this Agreement. D. Seller will join in the execution of documents required by the Buyer to obtain government approvals which may be necessary to develop the property and construct a shopping center on the Property. The parties expressly agree, however, that the scope of the preceding sentence is limited to the execution of documents that evidence Buyer's consent as a property owner to the processing of applications for government approvals. Nothing in this paragraph shall limit or restrict the Seller's exercise of the Seller's legal authority and discretion with respect to any application which Buyer may submit to Seller in its capacity as a government entity and regulatory agency. In addition, nothing in this paragraph shall limit or restrict the Seller's exercise of discretion under paragraph 3.D. of this Agreement. E. Upon completion of the Hardwood Avenue street improvement project, which is scheduled for construction in 2003, sewer and water will be located within Hardwood Court or Hardwood Avenue and within 100 feet of the Property. F. The Seller has not engaged or consulted with a broker or agent concerning this transaction. G. The Hardwood Avenue Street improvement project will be completed on or before October 1, 2004, with the first lift of asphalt completed on or before October 31, 2003. H. The Seller will complete site grading of the Property on or before 20V, with approximately a three percent slope, north to south. I. Between the date of acceptance of this Agreement and the date of closing on the Property, Seller will: (1) promptly notify Buyer in writing if any material change occurs in the conditions affecting the Property; and (2) promptly, after receipt, furnish Buyer copies of all notices of violation by Seller or Buyer of federal, state, or municipal laws, ordinances, regulations, orders or requirements of any governmental authorities. 11. BUYER'S COVENANTS AND WARRANTIES. Buyer covenants and warrants to Seller that: • A. Buyer is a corporation organized under the law of the State of Minnesota and is in good standing. CAH-225312v6 8 CT160-91 B. The person executing this agreement on behalf of Buyer has the authority to bind Buyer to this Agreement. • C. The Buyer has not engaged or consulted with a broker or agent concerning this transaction. , 1 12. CLOSING. The closing ("Closing") of the sale of the Property shall take place within 30 days after removal of all contingencies, but no later than , 200/. The Closing shall take place at the offices of Old Republic National Title Insurance Company, 400 Second Avenue South,Minneapolis,Minnesota or such other location as mutually agreed upon by the parties. 13. CLOSING COSTS AND RELATED ITEMS. Seller will be responsible for payment of the cost of commitment for an owner's policy of title insurance, the title insurance policy premium, state deed taxes, the cost of recording the cross-easement instrument and any instrument necessary to establish marketable title in Seller, and the closing fee. Buyer shall be responsible for recording the deed from Seller to Buyer and the Option Agreement or Memorandum of Option Agreement. Each party shall be responsible for its own attorneys fees. 14. OPTION TO PURCHASE OPTION PROPERTY. At Closing, Seller agrees to grant to Buyer an Option for the Option Property, and the parties agree to execute the Option Agreement at closing on the sale of the Property. The Option Agreement shall contain the following essential terms: A. OPTION PRICE. Buyer agrees to pay Seller the amount of $ as • consideration for the option, contemporaneous with execution of the Option Agreement. The option price shall be applied toward the purchase price of the Option Property if the Option is timely exercised. B. OPTION TERM. The Option expires one year after the date of execution of the Option Agreement. Failure to exercise the Option within the option period terminates the Buyer's rights to purchase the Option Property. To exercise the Option, Buyer must notify Seller in writing of Buyer's intent to exercise the Option, in the manner provided in paragraph 24 of this Agreement. Buyer's written notice of intent to exercise the Option must be accompanied by the earnest money payment of$20,000.00. C. PURCHASE PRICE AND TERMS. The Option shall provide for a purchase price for the Option Property in an amount of per square foot. The other terms of sale for the Option Property shall be the same as those for the sale of the Property, with the following modifications: (1) all references to a shopping center of at least square feet shall be changed to square feet; (2) delete paragraph 3.D.(viii); (3) the closing date must be within 30 days after removal of contingencies but not later than days after exercise of the Option. D. OPTION NOT ASSIGNABLE. The Option may not be assigned to a third party by Buyer without the prior written consent of the Seller. CAH-225312v6 9 CT 160-91 15. NO PARTNERSHIP OR JOINT VENTURE CREATED HEREBY. Nothing in this Agreement shall be interpreted as creating a partnership or joint venture between the Seller and • Buyer relative to the Property. 16. POSSESSION/CONDITION OF PROPERTY. Seller shall deliver possession of the Property to Buyer at Closing. 17. DAMAGES TO REAL PROPERTY. In the event that the Property is destroyed or substantially damaged by fire or other casualty before the Closing Date, this Agreement shall be null and void at the Buyer's option and all sums paid by Buyer to Seller pursuant hereto shall be promptly refunded to Buyer. In the event that the Property is less than substantially damaged by fire or any other cause on or before the Closing Date, then Property shall be promptly and diligently repaired, and if repairs cannot be completed by the Closing Date, then at the option of either party, the Closing Date may be postponed until repairs are completed. In the alternative, the parties may proceed to closing and Buyer may accept the Property in its damaged condition, provided the parties are able to reach mutual agreement concerning an adjustment to the purchase price to reflect the Property's damaged condition. 18. DISCLOSURE; INDIVIDUAL SEWAGE TREATMENT SYSTEM. Seller represents that to Seller's knowledge there is no individual sewage treatment system or systems on or serving the Property. 19. WELL DISCLOSURE. Seller represents and advises Buyer that to Seller's knowledge there are no wells located upon the Property. Buyer acknowledges receipt of Seller's well 41 disclosure statement. 20. CUMULATIVE RIGHTS. Except as may be otherwise provided elsewhere herein, no right or remedy herein conferred on or reserved to Buyer or Seller is intended to be exclusive of any other right or remedy provided herein or by law, but such rights and remedies shall be cumulative and in addition to every other right or remedy given herein or elsewhere or hereafter existing at law in equity, or by statute. 21. NO MERGER OF REPRESENTATIONS, WARRANTIES. No representations or warranties contained in this Agreement shall be merged into any instruments or conveyance delivered at Closing, and the parties shall be bound accordingly. 22. ENTIRE AGREEMENT; AMENDMENTS. This Agreement constitutes the entire agreement among the parties, and no other agreement prior to this Agreement or contemporaneous herewith shall be effective except as expressly set forth or incorporated herein. Any purported amendment shall not be effective unless it shall be set forth in writing and executed by the parties or their respective successors or assigns. 23. NO ASSIGNMENT. Neither party to this Agreement may assign this Agreement without the prior written consent of the other party. 24. NOTICE. Any notice, demand, request or other communication which may or shall be 40 given or served by the parties shall be deemed to have been given or served on the date the same is deposited in the United States Mail, registered or certified, postage prepaid and addressed as CAH-225312v6 10 CT160-91 follows: a. If to Seller: City of Cottage Grove Attn: Ryan Schroeder, City Administrator 7516—80th Street South Cottage Grove, MN 55016 b. If to Buyer: 25. CAPTIONS, HEADINGS OR TITLES. All captions, headings, or titles in the paragraphs or sections of this Agreement are inserted for convenience of reference only and shall not constitute a part of the Agreement or a limitation of the scope of the particular paragraphs or sections to which they apply. 26. COUNTERPARTS. This Agreement may be executed in any number of counterparts, each of which shall constitute one and the same instrument. IN WITNESS WHEREOF, the parties have executed this agreement as of the date written above. SELLER: 1111) CITY OF COTTAGE GROVE By Sandra Shiely,Mayor By Ryan Schroeder, City Administrator BUYER: By Its • CAH-225312v6 11 CT160-91 • EXHIBIT A • Legal Description of Property A part of the following described property: That part of the Southeast Quarter of the Southwest Quarter of Section 8, Township 27,Range 21,Washington County, Minnesota, lying West of the East 440.13 feet thereof and lying North of the South 330.00 feet thereof. Said property consists of a 2.2 acre tract which is part of Lot 2, Block 3, in the proposed plat of GATEWAY NORTH FIRST ADDITION, Washington County, Minnesota and is depicted on the attached Exhibit B. S • CAH-225312v6 CT 160-91 4 • EXHIBIT B Map Depicting Property • • CAH-225312v6 CT160-91 • EXHIBIT C Gateway Aesthetic Controls Policy • CAH-225312v6 CT160-91 ARCHITECTURAL GUIDELINES BUILDING ORIENTATION • Site planning concept of multiple buildings with an emphasis on pedestrian connections through the site, front of storefronts, and to adjacent residential neighborhoods. • The corner sites at the major intersections along 80th Street shall incorporate groupings of small buildings near the road with site amenities such as plazas or fountains. • The orientation of buildings shall take advantage of available view sheds of future development sites where possible. • Development shall try to achieve an aggregate of green area throughout the site of 30 percent or more. • Fronts of buildings shall orient toward major roadways where feasible and service areas of tenants shall orient to the rear of the buildings where feasible. • Buildings should be located adjacent to roadways where feasible and practical. • BULDING DESIGN Building Mass • Varying scale of buildings shall be encouraged. • Varying rooflines to create interest in design styles shall be encouraged on multi- tenant centers. • Large areas of blank wall surface facing street frontages is discouraged. Façade Design • Canopies and specific architectural accents will be encouraged on a case-by-case basis. The style and characteristics must be included on all tenants within a multi- tenant project. • Architectural character will be consistent on all buildings within master plan. • A variety of storefront designs are encouraged in order to enhance the pedestrian shopping experience. • The appearance of two stories through the use of upper windows shall be • CAH-225312v6 CTI60-91 • encouraged on one-story shops, particularly in centers with higher wall façades such as big box users. • Masonry detailing such as soldier coursing or patterning is encouraged. • Building character shall reflect the attractive and pleasant nature of the desired shopping and dining experience. • The use or cornices, ornamental lights, and other architectural details is encouraged. Building Materials • Materials shall be selected for suitability to the type of buildings and the design in which they are used. Building walls shall be finished in aesthetically acceptable tones and colors that complement the tones and color of neighboring buildings. A rich reddish brick color shoal) predominate in the Grove Plaza area. Earth tones shall be the predominate colors within redevelopment districts. • Materials shall be a durable quality. • Exterior wall treatment, on all four sides, such as brick, natural stone, decorative concrete block, stucco, and EFIS, shall be encouraged. Decorative metal panels may be used as architectural accents but not as the primary exterior material. • All wood treatment shall be painted and weather proofed. • Colors and specifications of masonry and stucco colors shall be consistent throughout the development district or project. • Blank single masonry walls must consist of 25 percent decorative masonry variation in color, texture, or surface. • Rear of buildings shall be integrated colored rockface block in a color to match predominant brick color. • All sloped roof elements must be simulated architectural shingles or acceptable architectural metal roofing,f ng, such as a standing seam metal roof. Doors and Windows • Canopies shall be encouraged at entryways where appropriate. • Window openings may be modulated to scale and proportion complementary to the architectural style. Maximize storefront opportunities to avoid long expanses of blank walls at street fronts. • A minimum eight feet of clear space shall be provided from sidewalk elevation to the CAH-225312v6 CT 160-91 lowest point of a canopy. • Window frames shall be constructed of prefinished metal. • • Windows and doors shall be glazed in clear glass. Mirrored windows are prohibited. SCREENING • Loading areas, mechanical equipment, or other utility hardware on ground, roof, or building shall be screened from public view with materials similar to the adjacent building material or landscaping. When natural materials are used as a screen, the screen shall achieve 75 percent opacity year round. LANDSCAPE AND SITE TREATMENT Planting • Plant material is to be utilized within the master plan area as an aid to provide continuity within the area and to provide a recognized definition of its boundaries. • Parkway-like street trees will be utilized along all external and internal roadways. • Unity of design shall be achieved by repetition of certain plant varieties and other streetscape materials and by correlation with adjacent development. • • Entry points into the site are to be significantly landscaped and are to be designed with a common theme. • Plant materials are to be utilized within parking lot islands with grouped massing of landscape encouraged in parking lots. • All loading service and utility areas shall be screened from public roads. When natural materials are used as a screen, the screen shall achieve 75 percent opacity year round. • Preservation of natural areas is encouraged where possible. • Plant material shall be selected in regard to its interesting structure, texture, color, seasonal interest, and ultimate growth characteristics. • Where building sites limit planting, the placement of plant materials in planters or within paved areas is encouraged. STREETSCAPE • Benches, trash receptacles, and ashtrays shall be of a color and style compatible with the project architecture. CAH-225312v6 CT 160-91 • • Sidewalks in front of retail shops shall incorporate planting beds or planters up against blank wall areas. • Ornamental pedestrian light fixtures shall be of a color and design compatible with the established city streetscape. • Brick inlay, exposed aggregate, colored concrete, or similarly enhanced pavement treatment is encouraged. PARKING • When determined appropriate, commercial buildings are to accommodate bicycle/motorcycle parking areas and bike rack. • Cross parking between sites is encouraged. The parking needs of individual tenants will be reviewed to determine the amount of shared parking estimated. • Parking stalls shall be 9 feet by 20 feet and drive aisles 24 feet ( 64-foot bay spacing) • Parking lot layout shall include clear, direct traffic movement throughout the site. • LIGHTING • Lighting shall provide continuity and consistency throughout the area. All parking lot lights shall be uniform in style, color, and height. Maximum pole height of 40 feet in parking areas, with lower light standard elevations for pedestrian-based locations. • Exterior wall lighting shall be encouraged to enhance the building design and the adjoining landscape. • Lighting styles and building fixtures shall be of a design and size compatible with the building and adjacent areas. Ornamental lighting shall be encouraged. • Excessive brightness shall be avoided; lighting shall be downward directed and comply with ordinance lighting standards. SIGNAGE • All signage must meet existing code standards. Signs not allowed include: ♦ Rooftop signage ♦ Signs painted on building ♦ Electronic reader boards ♦ Flashing or motion signs • ♦ Pole signs CAH-225312v6 CTI60-91 • Signage must maintain consistent metal surround color throughout the development • district or project. • Pylon signs shall be consistent in height and square footage with the ordinance. • Pylons must be of masonry brick to match buildings and reflect architectural character and detailing of the project. Exceptions will be considered if the pylon is constructed of higher quality materials that complement the buildings. • Building signage shall not overpower architectural character, but serve as identity. • Low entry monuments not to exceed 8 feet may be placed at major entries for identification of center. • Freestanding signs must be located outside of public right-of-way and cannot negatively impact traffic sight distances. • H:\Oakwood Commercial PA 0403 kims revision.doc • • CAH-225312v6 CT160-91 • EXHIBIT D Permitted Uses 1. Art studios, interior decorating studios, photographic studios and music studios 2. Banks and other financial institutions without drive-through facilities 3. Barbershops or beauty shops 4. Business Offices 5. Clinics for human care 6. Collection offices or public utilities 7. Computer services, sales, and the sale of office machines other than at retail. It is the intent of this entry that such uses will be permitted where customers come to the office to observe demonstrations of the use of equipment, but that it does not permit retail sales or show rooms for walk-in trade 8. Dance studios 9. Employment agencies 10.funeral homes or mortuaries 11.Medical and dental office/clinic services 12.municipal uses where the use conducted is customarily considered to be an office use 13.Nursery schools and daycare centers 14.Offices for administrative, executive, professional, research or similar organizations, and laboratories having only limited contact with the general public; where these • uses are permitted, no merchandising is permitted to be sold on the premises 15.Opticians and optometrists 16.Radio and television studios 17.Travel bureaus/agencies 18.Veterinary offices and clinics; provided, no kennels or treatment areas are located outside of the building 19.Antique shops 20.Apparel shops 21.Appliance sales and service 22.Bakery goods and baking of goods for retail sales on premises and limited distribution and catering 23.Bicycle sales and repair 24.Books, magazines and stationery and newsstands 25.Business machine sales and repair establishments 26.Camera and photographic supplies 27.Candy, ice cream, popcorn, nuts, frozen dessert, soft drinks or confectionery stores, excluding drive-up type 28.Carpet, rug, linoleum and floor coverings 29.China and glassware 30.Clothing dry cleaning and laundry pick-up stations, including incidental pressing and repair 31.Clothing stores, including dressmaking, millinery and tailor shops 32.Costume and formal wear rental/sales • 33.Dairy products, retail only 34.Delicatessens • 35.Department and variety 36.Drugs 37.Dry goods and fabrics 38.Electrical appliance sales and repair 39.Florists 40.Frozen foods and meat markets but not including locker plants or meat slaughterhouses 41.Fur goods 42.Furniture, upholstering, picture framing, interior decorating studios 43.Gifts 44.Groceries 45.hardware 46.Hobby supplies 47.Indoor food, meat, fish, fruit, and vegetable markets 48.Jewelry, time pieces, collectibles, silverware sales and repairs 49.Laundromats • 50.Lawn and garden centers with no exterior storage and display 51.Leather goods and luggage 52.Locksmiths 53.Music/record stores 54.Musical instrument sales and repair 55.0ff-sale liquor 56.Office supply and equipment • 57.Orthopedic and medical appliances 58.Paint and wallpaper 59.Pet shops, including grooming 60.Photographic studios, including the development of film and pictures 61.Print shops/photographic copying 62.Radio and television sales and service 63.Restaurants, classes 1, 2, and 3, except for drive-through 64.Sewing centers, machine sales, and sewing classes 65.Shoe sales and repair 66.Sign shops, limited to over-the-counter retail sales of signs, banners or other related graphic imagery 67.Signs in accordance with provisions of Title 9, Chapter 8 of Zoning Code 68.Sporting goods 69.Video sales and rental 70.Accessory uses to the above in accordance with City ordinances 71.Financial, photo processing or restaurant drive-through facilities as a conditional use and with Council CUP approval 72.Commercial recreation uses including amusement centers where mechanical, electrical and electronic games are played or health and physical exercise clubs as a conditional use and with Council CUP approval 73.0ff street parking F:\USERS\RSCHROED\Gateway Permitted Uses.doc City of Cottage Grove • Memo To: Economic Development Authority From: Ryan R. Schroeder Date: 05/07/03 Re: Grove Plaza Update The EDA has been aware that over the last three years Flemming has been attempting to sell the Rainbow Foods grocery chain. In fact, pieces of that business have been sold off over the past couple of years. Most recently, it has been reported that there is a suitor for a portion of the Minnesota grocery business. Attached is the Pioneer Press article that appeared on May 6, 2003 regarding the status of that sale • (Cottage Grove is one of the stores contemplated within this sale). Meanwhile, Grove Plaza ownership has informed us that they are continuing to pursue reconstruction of the small tenant spaces and they continue to believe that they will enter into a lease with a strong anchor tenant in order to deliver that space as of March of 2004. EDA Action: None required; for information only • •Page 1 • E R PRESS • PAUL PIONEER S T. BUSINESS www„T OM wiNCITIE s.c up offer adds Rainbow4, , BY LiZnEeGerEPresRSTsR°Mf r 31 • on offer .,_ _., .„.. ,,..., ----,- ..-,•;.,...;:, The $82.5 wkiifiRainbow tortes '''' .- rn, -: '..-.`. --, •ii•e• cities areaRainbow inventories historical .- - - . .., BUY::---: -: Twin and tp by „as_ -•' ,- ----ea WANTS TO- --••--•-- — .4brires to be ow say Ma al for , ,•,- ,,-_ - ._ -, • - --.• -:.-the- °"; .appears..'e standards, ow highly Though a de uded arket ' nt r of Ratn' ' 1-suPerm watchers,reflectingweakened the food „ seems ,', .„.Frha 3I storesowner. . , , ,,,,. and ' (T • -1,._-- list—- • 5 CM” of 11 MM.',.- _ ', IT,'competitive has become. .ole- j.-44„.0•5 aFlemings fate_ not. .....,- pe $82.5 million, • • ,go IS ,---'--I between ,....s Inc.The -„stoFe'n .'' ',-.,.,..3.0t.,,,n.Mni.• g industry,_ a regional whole- 1560S. in fp OU re -deal Rounvir , 1 ' f,'..,_._.,..--- s Inc, r based - ores -`," bow.and and Wisconsin - .... ,,... RcauldY operator offer Mon ing - — • 1..not clear: --- etY d retail made the° e leas- Foods low, em - . , cie. , , ,,,, - v,ifiler an M. dustrY se i„,-, --'-z-- -, ed in the :'' - :-.' ' St.Paul‘;' .;-. ukee'd7"vould also assume Cos., an-- ..1 tlinCO •:-•,„-_- -,',i•-,,:bert St. „.:.:„ ,;-,:west , .. .. and said it million. . Rainbow Store „ ...._ -, - - St Paul , day valued at hased.t the some haru --5-R°- * - --- ' t of • would '------ Pt- .1569 .„ _ Ave, . ,. -,_., Eagan-__ 43aren. said it ,4,_mster 1.1 could .1'.;:,-ISO Unlverser,,,,„ti..r Drive ' , , Roseville r., '.'.. lin,”'dy,s offer Mime Kiravware who • ." j '-'''.',.• --4i76,Town----7. : y- .. :'—urt judge 4, court the ..-4 :_. _., r Ave , _Apple vette- ,..,my co other bi,'''' action close .1201w.Larpenteur „„: •, ^PF ' ,' ,,v-..nsider Regardless what. d it hoPes tt.'dweat . -CedarAve. .•' Columbia Heights :''-'- wr Flea= f i LS UPPe ,, -•:', ''- 1 -Nr•E",..- • PrIll5 the oN• '--.. 4,at Ave; • _ _ - Minneapolis sitting on 34,- • .:,,,, ,,... , : .,...„:„.._ th Ave...s. , _ __ Prairie, . ,,.,,permar, now a pricean economiste 2919 26- CenterPaul ... • ...._ There p„t, King, Center at the ts by June. 1Q'00 6th Ave N ,..t.4.4. -- -'-`, , -- •-•--_.:.-,'•• . .• cen‘e• -: • - - St. :',.-11''' le" said,„,-7industry ..vell have *-74.1. 4... ..,',. ,..1 - - --."..... •-.s70 Prairie - - - , mouth T 'the...c..,, eaota other hid- . _ -%, , .- • - - - -.,,- -, Arcade St. ^-: , , ..- : inv ' , with' ity of MIT out --.;.••'"A','" ''i•''':'*' -. -..-'..* '",892 , . '-- - Oakdale univera that brings 81 and aith5t.N. ,- , - "''.4Alers'Questions realm retailers m•aY. ' - ••-'' ' '.7 ' ;*'''''-•'-' 7053'- - ' E' ' -Roseville Qu---- other food • g Ealn .. ex • .. ,_Anse -- ..--,4- many 0 -remit= -ed in - ' ',''':- ' 5f 87th La 14n Rd 82 - nits - how bllY the 12 not Included :1,-":•re• i ;it'''. ei',i : 1643 County Ave- m inn"?..., - ,, ,seelE to stores ts the cur .,;_,-....t.-. -.- -. _..„104tagoon-- Burnsville „.Buw .,__.s bid,and whaatf the suPer- Foods d,42 W ' ath ' -110nnar t value ity :17-.7.1tf,'r,'',,,-, -'•..-1-:--1: , ...: .,214 t' v:--,,. , ---,- •- ntv R ....,. mo -,,,•-•rent market newood n ..'„,.;-• ..Z.." ',„.,,-,.,';,..,,t- ' ....:,-•...;,14 , ', • '•. , -180.1 re.-.., -• LaneN,-:PIY---,. - -, -ch=• 's MoPe b malian' •- • '' --',.:-..-,i: ski . 7-117-7 — Woodbury ..r, ket 1 ---,,,„- -,, ,t; '':.. v:t4..-'''',.' 419a Yi, , eek Plaza .— id ..:::,''.• Round' E 6C :- ',. , .----";:::','Ir._`. ;'''' '."-il;-,:,;-"--1•.;,,,,..*;,'-•'1 , '"'''-e,,,,..'. 7050 Valley Cr- _ .--- -''Richfield-,' -;'• RAINBOW SAL • - ;'•-, '•'''' , •-.o,-;.---,,,,-...i, - ,r,4-' -.,,-•;, • h St.'-.'. ..-1---``._ ' s, ;•---;.-'-'-':, 7,- '''''' '.:-;•-- •=-1'•:4tf"••', 41.`24-4- gear Ave Maplewood 2- dy's says it• b Page A S01 White would keep IA ,. Forest Rainbow„,,,,, l'''''” ''',11,•:r-IY.,''''''4.-t,Z.7"; .:,,-,,.•‘''4,.It'''',N117,- lir'r411 '' - Shoreview 1 0 le N ri#CS 41frk.t,,,v,„,',4^k- ',.,,-, fikitrul -ignvafl - Rd-5- ova-- ' -Nt'ir•Tc.f.,' olitt-009gias- Cottage Grove '' ' -...''• s 1 - ;4iitilt•: T: ee•Wis. rt.,,,n • • • :71, --IT---1. /.,, *3:r!---22-7=,4-'man RIAL1-innt**Ils•_- '1,i,,•-' *mailers:Pewauk el'iliptiti'''' .. .,,14ii":4731- .. .4 ---''''= -'Chaska ...-- ) -"in—' d in 1872. . Part- :- s 4111, -, — 4 - ''-'-' - - - ' . ' Willis unde Stein& 2 di - '•-- ' '-``,' Trail- . .., ' 'Rapids br . re June 200 • .Fr,......,..4;• „qz:..-..,-----=--"l'.,,k 1,"`"' -5,44-,,,,.:-,, Pioneer N.W.---- ''°cur' ' '.--: '.."4-4°I'vlItgilicag°'sin •1. n in t..- 71:- :77,15,1,,.44PN1, 3.24#;,Ave:111• -_,-._,,, morningt01/ , ,, „pers• sales:$3.6 billion... rAi -*.f,-...,:---.',....?,,,,i,r Roth. St_-I kk..nie Grow- • Annuati,a billion in 2 . in ,.. 40 ( ,... xk....I17,-Aciitr• ...,,,,' w,...i4,„4„.7,:•&,'....gzs'.4-"`.-.-, ,-.„Av,--, ' - ,-.:' —''" ..."'',..•••2002;a'' 4 million $31. ;,,,7.''''Tt'P, Zi,“ ''ZO-:':4,..5"e,'"'.--• ' tell&30' e Heights :, . me: • 2001. ,,,,kirR,rktz!Zrict •7.' ..r.4,.''.6 I County 1 r Grove -, ".. Net"lc° million in • „,g.'-:..- .ry...:1.'s--'•-•°',,,,..----,'-'4,--, ..-,',.•- '7,,,..k..1.4,1..er*-=c- ridc ,'; - 2002' ,,iiii4,;-,..,,c. „1,- ---..•:,..,.• -•...k.%,--_,,,,,„,...,:,,,:„21,.. , ,, .., - hvvalP - te Company-own .1300 1. . 7X-•$it'?"'Z" . •:-P4.7,-,k,-.1,- =,•,.:1.- e.....- • .:.- - t, ------4,,„,.-1-4,tkr(p-,,,i-.7-t: zAR.,..,." Aties n wts.;( Distribution k..4'! ,.* ,. w Broadway - , .weatd- . •,.. ,,' •,-,. • 14 states "ii---._•:•, °?.,Y'.'. .^1' .'," "..h,_;,;1:','''." Schofield .' ''''' -.' '''7-' st°res in rt Mariano !..7.7,..-4.71-.4„111_ 444...-.,"4-t 4:-.4.i-,Z;:r4 ;•,:t:„.7i,,licha .:-;\:*, .. ',''',--4'ei--,':, act Robe 4 000 ,,,f'.''',-i—i'::'-',7' -.;-1.1,---=.1-1:`;'-' ir. ' loY'es'1 ' EMP and wire stores 80 1 -,.-, •:- ' '''''Z-:''-' ,, ,company,k.4.4,„ ,....&„,......,.......„,„,:„.„4,..,..,,....,;,..„..„.. .,„,12...„ re. . .._ _. _ .,.. .• ,,,,,,..„ „.,...7._ source ..„ & .7 Th",,, 4:-...----f-':, - ,-- reports ' 4.114':::, caeliVirr S'IL,%:-.1..,' :.;41,51 , f 1..,. -..,,- 4*- --.14 ,,, ;,-.:, .,.-.. .1 ..,,,,,4,,,:,,,,,...„,,,,-).,,..,,r„,..... ,,,,.,_:,,,,.„,..:.,:.. -....-..,..,i,... .,--z.,?,:',„.„,.. SEC • • I' 6C M TUESDAY,MAY 6,2003 B U S I l _ FROM F • Rainbow valued at$Li billion but includ- stores in 14 Midwest states,and • + ed Upper Midwest food whole- it owns 80 stores as a retailer s� Baling assets that are important under its More for Less, ' Sale to Fleming's bankruptcy reor- Roundy's Express,Main Street ganization plan. Market,Price Less Foods,Pick- Fleming doesn't reveal its 'n Save Marketplace and Pick'n (continued) Rainbow stores'EBITDA.Stern Save small-to large-supermar- said it appears that Roundy's ket formats. The Pick'n Save said he assumes his company would be paying less than $3 stores stop at about 65,000 has made the best bid for Rain- million for each Rainbow store square feet in size,or about the ' bow because Fleming accepted it buys, "and that would be a point most Rainbow stores It low EBITDA multiple." begin. "In the event,there is a dif- The average Rainbow super- Roundy's was a long-time ferent(better)bid,we will be in market is 68,000 square feet,a wholesale cooperative owned j a position to respond appropri- larger store format than by independent supermarket ately,"Mariano said. Roundy's currently operates in storeowners.It was sold a year Neil Stern,editor of Chicago- Wisconsin and neighboring ago to Chicago investment I based Retail Watch,said retail states. Rainbow stated two bankers. stores and chains usually are years ago that its stores aver- The company had sales of I sold in multiples of store earn- aged from$20 million to$30 mil- $3.6 billion in 2002,an increase Ings before interest, deprecia- lion in annual sales, although of 7.3 percent attributed to the tion and amortization, the the retail industry now cora- 2001 acquisition of Copps, and accounting formula known as plains that same-store sales at from modest same-store sales EBITDA are either flat or down from a increases of L6 percent Adjust- "The offer looks low to me, combination of greater compe- ed EBITDA earnings for the but EBITDA multiples are tition and frugal shoppers limit- year reached $143 million, an down for everything in the food ing their purchases. (Same- increase of 27.6 percent in a retailing industry,"Stern said. store sales are sales at stores year that produced little growth While Upper Midwest shop- openthan more a year) for the overall food industry. pers and investors have The Rainbow stores now Fleming said it expects to watched Fleming Cos. seek have about 33 percent of the establish bidding procedures at buyers for its Rainbow stores, Twin Cities grocery market, a May 19 bankruptcy court Chicago area business watch- No. 2 behind the Cub Foods bearing. ers•have been waiting out the chain owned and franchised by possible sale of a larger chain, Eden Prairie-based Supervalu Staff writer Scott Carlson Dominick's,in the northern Illi- Inc.The Food Marketing Insti- contributed to this story.Lee nois area tote ascribes 40 percent of the Egerstrom can be reached at Safeway Inc bought Twin Cities market to Cub, legerstrom@pioneerpress.com or Dominick's 120-store chain while Lund Food Holdings, (651)228-5437. three years about for $1.8 bil- owners of the Lunds and Byer- lion, which was about eight ly's upscale market chains,are times the stores' EBITDA a distant third-place player Reports in Chicago on Monday with market share approaching said Safeway was preparing to double digits. sell the chain back to its former If the bankruptcy court owners for$500 million,about accepts Roundy's offer,the new three times EBITDA owners would keep competitive Fleming,meanwhile,bought pressure on the Twin Cities the Rainbow stores in 1994 as food market, predicted Rick part of er of er Co,its a German-owned firm Ron's CastleFooition of Shrivn- Feldman,assistant ds in Eau that was based in Oklahoma Claire,Wis. City,Okla That acquisition was Roundy's distributes to 800 110 r • Ci= City of Cottage Grove Economic Development Memo To: Economic Development Authority From: Steven Barrett, Management Analyst Date: Friday, May 9, 2003 Subject: Update — Highway 61 Drainage Acquisition Item 4A In April the City retained the appraisal services of Roger Rohrer of Bettendorf, Rohrer, Knoche, Wall, Inc. to provide appraisals on three parcels east of Highway 61 in anticipation of creating a storm water pond. Two of the parcels are owned by Eller Media Co. and the third is owned by Joe-Bob Properties. The pond would service development in and around the Gateway Development District. The attached map shows the three parcels at issue. • As the appraisal continues, City staff will be exploring various issues relating to the project, including: • Whether the City should acquire the properties in fee or in the alternative acquire a drainage easement for purposes of locating the storm water pond; • Whether the existing billboards on the property should remain, and if so, how many should remain; and • Whether any existing easements or encumbrances need to be re-located to accommodate a future storm water pond. The EDA will continue to receive updates as the project continues. • r w -nom * o500c > Sam < fz1 11 0- gtt- .-t"o_0v 7 =mcop wX *0mon 3 u �-: 000n (j .-•.� d1 t, m _ m m O O 7 n m w m 61 -, m 7 n m 3 -. A m 0 (D .« 0 O O. m C m 7 S w c "O m -+ < a 72 Li) N -O m w w w@ o. 4, .<' m To ur(Q (D 7UlmeGm N -+ w w a cn w 0 w . w a O m m m 7 Nm -a .. ,_,_- _ m 7. m N N m O)wOO7 m ° 3S < O O EA W w O 3 7 m NO .E a o w 7 aN °p " O w "��. 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