Agenda

ECONOMIC DEVELOPMENT COMMISSION

Tuesday, December 11, 2001 - 7:30 a.m.

Room 218

New Brighton Family Service Center

MEMBERS:	COUNCIL LIAISON:

______ Rakesh Agarwala	______ Ken Johnson	______ Steve Larson

______ Bob Benke	______ John Kaufhold	______ Char Samuelson

______ Gene Delaune	______ Mark Nelson	(alternate)

______ Dennis Flahave	______ Maxine Pierson	CHAMBER LIAISON:

______ Linda Harmon	______ Jeanne Smith

I.	Roll Call

II.	Approval of November 13, 2001 Minutes

III.	Retail Study - Maxfield Research, Inc.

IV.	Northwest Quadrant

A. Partnering Meeting

B. Concept Plan

C. Financial Plan

D. Acquisitions Update

V.	Brighton Village Task Force

VI.	Other Business

VII.	Adjournment

If you can't attend the meeting, please contact:

David Black, (651) 638-2060

NEXT MEETING - January 8, 2002, 7:30 a.m.

Room 218, New Brighton Family Service Center

NOTES TO ECONOMIC DEVELOPMENT COMMISSION AGENDA

December 11, 2001

III.	Retail Study - Maxfield Research, Inc.

The EDC recommended and the City Council approved a study of the retail market potential for the Old Highway 8 corridor. Specifically, the Northwest Quadrant and the area north from Bell Pole to the railroad overpass were looked at.

Mary Bujold and her team from Maxfield Research will present their preliminary findings. An outline of the report is enclosed.

IV.	Northwest Quadrant

A. Partnering Meeting. On December 4th, Ryan Companies convened a meeting of nearly all of the many people who have had or will have a role in accomplishing the redevelopment of the Northwest Quadrant. (There were 16 people present, including the facilitator.) The meeting was useful in that all of the major issues were brought out; this was especially helpful for those who have been involved with only certain aspects of the development. We developed a detailed project schedule, with responsibilities assigned to each "sub-bullet."

Paul Kieffer of Ryan will organize this schedule into an appropriate format, which we will receive approximately December 14th. A follow-up meeting has been scheduled for December 19th to complete the project schedule and to address issues related to cost sharing and the respective roles of the City and the developers.

B. Concept Plan. Several small but important revisions must be made to the concept plan shown to the commission in November. The first change will be the retail configuration, to be adjusted based on the Maxfield report. The second is the layout in the area of the office complex on the east side of the highway. We hope that the eventual plan can more completely integrate the uses here, linking the buildings on the east side with the housing areas across the highway.

Planners from DSU are working on the changes, and will hope to have them finalized in time for the January EDC meeting.

C. Financial Plan. Jim Casserly and Greg Johnson of Krass Monroe met with staff on November 28th. Their latest version of the financial model for the NWQ incorporated recent changes in the concept plan, interest rates, and market valuations. We were pleased to learn that the budget is now balanced. (You may remember that the projection in July 2001, shortly after this year's tax law changes were incorporated, showed a deficit of $7.8 million.) We are comfortable that the latest assumptions are still reasonably conservative.

This projection is a key element that will allow us to proceed on the full-scale redevelopment project. Staff hopes to be able to present the revised concept plan and the financial plan to the Council in January.

D. Acquisitions Update. Staff is proceeding to negotiate on additional property acquisitions in the area. Dahlke Trailer has made a counterproposal to the City's offer, and wants to enter into an agreement in order to have funds for future relocation and remodeling. We have ordered an appraisal and relocation study to determine our next response.

Staff is scheduled to meet with the co-owner of Mengelkoch Rendering later on December 11th.

Projections for Beisswenger's to move to the property just north of Highway 96 on the east side of Old Highway 8 (DeCoster, two homes, and surplus Thermo King property) show costs in excess of revenues that can be produced from tax-increment financing. Staff is scheduling a meeting with Mark Beisswenger to discuss his needs relative to this project.

Midwest Asphalt has not responded to the City's initial purchase offer. The City is working with Ryan and brokers from CB-Richard Ellis to find a site for relocation.

V.	Brighton Village Task Force.

The task force met on November 29th, and will meet again on December 13th. We had hoped to be able to get the group's preliminary recommendations on a concept plan at the last meeting, but discussions ran longer than expected. Recommendations will be discussed at the December 13th meeting, and a meeting was added on Thursday, January 3rd. If we can reach a majority conclusion by then, staff hopes to be able to present the task force recommendations to the Council on January 8th. If not, consideration may be delayed for one or more additional meetings.

The Council lifted the development moratorium for the areas north of Palmer Drive and west of Silver Lake Road. This allows the proposal to remodel the South China Island Inn restaurant for a service garage to be considered by the Planning Commission and Council. A hearing is scheduled for December 18th.