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I I I Council Meeting Minutes October 13, 1987 Williams stated he was also concerned with a fast food establish- ment; and asked Parkhill what type of thought process he goes through when laying out a center and how does he conclude that a fast food restaurant would help the center. Parkhill explained the concept for a shopping center relates to the return on investment (square footage and parking space); if the concept allows an area for a free-standing building, he approaches various fast food restaurants to see if there is an interest; if a fast food restaurant says it will work for them, it is pursues. Parkhill further stated the presence of a free-standing building does not add or subtract as far as rental is concerned; the center is defined by basically looking at major tenants, then it comes down to a neighborhood center. Parkhill then explained the market is defined (in the absence of a major tenant who would draw people from great distances) by combining the various types of convenience services required by distances and the surrounding population (for example, it is known that a drug store will draw people from one to one and one-half miles). Benke stated, because total information is not available, council should not and will not grant any extension of the prior agreement tonight. In response to Gunderman's inquiry about Clark Pharmacy, Parkhill stated he has talked with Mark Clark, one of the two parties who will make a commitment to the center. Benke stated 60,000 square feet is acceptable given market condi- tions and constraints. Parkhill restated he will ask for an exclusive agreement during the mortgage process; will be back to council within a short time. Benke stated in the meantime, the council will take care of some homework issues. (No action required or taken.) Locke reviewed staff report concerning approval of a development agreement for Beisswenger Hardware; noting that following discus- sions to bring Beisswenger Hardware downtown, the most appropriate way to proceed was to redevelop on the current site on Old Highway 8. Locke indicated, if the agreement is approved by council, con- struction would begin as soon as possible and would be completed in 1988, having full market value by January 1, 1989, for tax and tax increment purposes. Locke further indicated the city would provide $125,000 in tax in- crement assistance for the write-down of costs for soil corrections, removal of the old buildings, and some site improve- ments which would be paid when the project is complete and the existing buildings are cleared from the site; the development agreement is based on our standard agreement we have used for other redevelopment and tax increment projects; and the assistance, which Page 7 Development Agreement for Beisswenger Hardware Report 87-254 Resolution 87-104