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2002-06-06PLEASE TURN OFF ALL CELL PHONES & PAGERS IN COUNCIL CHAMBERS. -~~~ CITY OF M'OU lVb MISSION STATElY1E1~T: The City of Mound, through teamwork aid cooperarion, provides ata,reasonable cost, uahty ser~~ices that res and to the needs. of atl citizens, fostenn a safe, attractive and flourasnirz convnu q . _ P __ g _ . _ _ _ _• _ ~ _. _ Wiry.. AGENDA MOUND HOUSING AND REDEVELOPMENT AUTHORITY TUESDAY, JiJNE 6, 2002 - 6:30 PM 1. OPEN MEETING 2. DEVELOPER INTERVIEWS 3. DISCUSSION/ACTION ON DEVELOPERS 4. ADJOURN DEVELOPER INTERVIEWS DOWNTOWN MOUND June 4 & 6, 2002 Tuesday, June 4 6:30 MetroPlains Development 7:30 Peter Johnson Thursday, June 6 6:30 JCS Development 7:30 Warner Hurd Barggren Development Group 8:30 Landform TYPE OF MEETING ~1 DATE ~r~~ ~~ PLEASE PRINT PERSONS PRESENT AT MEETING G Name {{~~ 1.~)~~~~ ~ ~iCk tJ ~ 00YY19 N~S~' 13:x' ~/~~ ~ ~~ 14. f ~-O~.~Y~C~Sl~wr1 15. s, C~=~ ~a 16. ~!Jcl ~~ ~~ ~j ~ / ~,~~- 17. ~lvy7- ~~~-I~4o l s. N~c ~ C ~~~ Address sDV 1'~, q h ~~ t id ~a a n ~ 11 , ~~{'S~ i ~IV Y ~ 3 ~ L~~ ~'So ~ L.~ . 5~,~.'~r~l.~~./ C ~~ cr ~~ ~..,, - ~~5 ~~,, ~ Z~.~.., S3 S 3 c,~,~ Z> G~~ -~(90~~6 s~"3~; ~- ~~ Z~ ~ -l V~ ~~T ~n-v rc.r Iz-t7 U~zc~rr-, raw S-SIZ~ ~%r.~,~. i.~~~ ~s+~ ~~~ u.,, Ply-,~lu • TYPE OF MEETING DATE PLEASE PRINT PERSONS PRESENT AT MEETING Name Address ~1 ,, 1. ~~ 4 ~,. 3. 4. S. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. ~G3 18. MINUTES OF A SPECIAL MEETING OF THE MOUND HOUSING AND REDEVELOPMENT AUTHORITY THURSDAY, JUNE 6, 2002 Present: Meisel, Brown, Hanus, Osmek and Meyer Staff Present: City Manager Hanson and Community Development Director Smith. Chair Meisel called the HRA meeting to order at 7:30 PM. All members were present and announced that the purpose for the special meeting is to interview candidates to serve as potential developers for the Lost Lake District. On Tuesday, June 4th, the HRA interviewed firms for the Lake Langdon District. One firm to be interviewed this evening has also expressed interest in developing the Lost Lake District. The first firm to be interviewed is JCS Development. Chair Meisel requested that representatives of JCS Development introduce themselves. Rick Bloomquist introduced himself and other members of the team including his wife Susan, Truman Howell and John Seivert who has experience in the hospitality industry since 1977 which range from small motels to large hotel complexes. Rick indicated that the Mound area is in need of a hotel/banquet facility. John indicated that the concept for the Lost Lake District is programmed to be an upscale hotel/hospitality complex that will include a theme restaurant and bar. John commented that the "Northcutt Inn and Suites" is a sister to the Americlnn. Concept will be copesectic to the Mound Visions plans. Emphasis of the hotel will be lakeviews and has been pushed a bit further west that the Mound Visions plan indicates.. Building will be 3-story with the restaurajnt /banquet facility on the end. Building is programmed to be synergistic. Truman Howell has many years of experience in hotels /restaurants. About 10 years ago, America Inn contracted with, Mr. Howell to develop the "prototype" The latest concept in cooperation with Northcutt is a higher-end product. Mr. Howell believes that they can create a project that will capture and enhance the Mound Vision. He commented that they have created a concept which has some character and identity. They enjoyed the opportunity to extend the shoreside and are interested in utilizing and incorporating this special space. Pedestrian enhancements are included. Susan commented that the concepts are just that and they are flexible in terms of design. Rick commented that they have put together a strong team including the backing of several investors. He commented that they have been contacting by another group who will be interviewed later this evening and believe that they will be able to work together. Mr. Bloomquist thanked the HRA for their time and consideration. PM asked about the Northcutt Inn and Suites and inquired about the number of rooms. The team commented that the complex would include (74) rooms. Mr. Siebert commented that they review the demographics to determine what type of product will work. He indicated that they developed the new building in Long Lake. He commented that the "users" will probably be locales, shoppers as well as business persons. John owns (8) hotel complexes. The relationship between Northcutt and Amerilnn is similar to the Fairfield by Marriott. PM commented on banquet room size. John commented that the proposal will accommodate approximately (300) persons. John said the restaurant will include seating for 130 persons. KH asked if the facilities are wired for technology. John indicated they would be. MH reinterated that they are not necessarily set on this site. Rick commented that they are flexible with its proposed location. DO asked what site is preferred. Either site is acceptable. Soils /environmental issues on the Lost Lake site may be a concern. MH asked about room rates. ADR (Average Daily Rate) will be $90.00. Rooms with fireplaces / Jacuzzi will be approximately $200 /night. MH asked what restaurants they tend to hook up with. Rick indicated that they haven't made a decision on this yet. DO asked about bass fisherman. Rick asked that he has no problems with bass fisherman or snowmobiles. DO commented that the concept of an hotel in the community is well supported. PM asked about other uses on the site including the farmers market and the park and ride and the possibility of ice skating. Rick Bloomquist showed the proposed areas on the current concept. Rick commented that there is probably enough space in the corner to accommodate a warming house. BB commented on the value of hotel /hospitality facility especially for weddings and for out of town guests who want to visit local lakes. Rick commented on docking facilities. Hanus commented on docking and indicated that dock privileges are regulated by the LMCD and the MCWD. Truman commented on the value of water and commented that dock slips will be a huge draw. KH asked if the banquet rooms are "dividable". John and Rick commented that they were. MH is convinced that ahotel /hospitality will be a welcome addition to Mound. John indicated that the trend in hotels is that relatives don't stay with relatives. Rather, they check into a hotel to maintain privacy /have their own space. The interview ended at 8:25 PM. Mahogony Bay Inn -Warner Hurd Barggren Development Group PM announced that the next interview is the Warner Hurd Barggren Development Todd gave an overview of their agenda and introduced the members of his team including Jim Barggren and Glenn Hurd. Kent Carlson of Ryan Companies is also involved in the development. Recent projects include the St. Albans Bay Boathouse and the Cochrans Marine. Kent Selegren (sp?) is a land use law with Fredrickson and Byron. Has extensive experience in redevelopment sites that are tricky. Leisch Companies will serve as the environmental consultant for the project. Bob Kaiser of American Engineering Testing was present and will serve as the engineer for the development. Terry Swern was also present on behalf of AET. Todd commented that they hope to bring a project to one of the "keystone" properties in Mound. He commented that there are challenges associated with the site but is certain that their team can accomplish the task. Jim Barggren was introduced and gave a bit of history including his affinity for the Lake Minnetonka. He commented on his experiences in Mount Dora, FL which is about 9000 in population and is historic. He owns a bed & breakfast in Mt. Flora. Mount Dora was a sleepy little town and is the antiques capital of the south. The B&B is the "centerpiece" of the town -have paddleboat tours, waterfront activities, 30 slips. Mt Dora is the largest venue for the worlds largest antique boat show. They are attempting to maintain the "village" concept - no franchise(s) or theme restaurants allowed -strong signage code including no neon. Mr. Barggren currently owns (8) hotels and explained his background to members of the HRA. He also briefly commented that they will work with local lenders as well as larger financing firms including GMAC. Todd also commented in the involvement of Anchor Bank. Glenn Hurd briefly commented on the preliminary project costs and commented that they are good starting points. Financials are reflective of a 60-room project. Todd commented on his tenure in Mound and commented that their team is committed to the City of Mound. They are excited about the project and believe that their vision is a good one. He commented that they are not developers but have assembled a strong team to accomplish a project that everyone will be proud of. BB asked about the number of rooms. Glenn Hurd commented that the range is between 60 to 70 rooms. The 72-unit model demonstrates an acceptable range of return on investment. Parking will be an issue. Average daily rate at the "Lakeside" is $118 /night. BB also asked about space for a banquet room. Mr. Hurd commented that the proposal preliminarily includes a 3000 SF space for meeting space to be used for weddings, business rooms, etc. which could be split up. Would accommodate approximately 200 people. PM commented that the "Tavern" would seat 80 persons. Glenn Hurd discusseda proposed parking plan which would enact a "shared parking" (day/night). PM asked about incorporating a farmers market and warming house facilities. Todd commented that they are interested in pursuing other uses including multi- seasonal users including boaters and snowmobilers. MH talked about the opportunity to combining the warming house /concession stand /park and ride facility. PM asked about the opportunity to allow public use of the pool/health club. Barggren commented on the "Inn Siders" club which enables the visitors / community residents to use the facility for a fee. He suggested that this type of approach might work. Todd mentioned that a similar concept is also being used as Osceola. Barggren also commented that specific users groups also have access to their t. Dora facility including the Mt. Dora high school tennis teams and water aerobics classes. DO inquired about their proposed timetable. Glenn Hurd indicated that they would like to commence activities in tandem with the CSAH 15 project. One of the biggest issues is the environmental issues as well as the availability of funding sources. DO asked if they are set on the Lost Lake site and asked if they have considered a "backup" plan. MH also inquired whether they would consider an alternate site such as Auditors Road. The representative from Leisch commented on that the biggest issue facing the project are the environmental issues and the availability of fundings. Todd displayed a preliminary architectural design which was prepared by the architect who is working on his house. He thanked the HRA for their time and consideration. The interview ended at 8:30 PM. Landform representatives began their presentation at 8:35 PM. Tom Stokes made introductions and explained the various components of their development proposals for the three districts including the residential, commercial, and hotel components. PM commented that since she and her husband own property in the Lake Langdon District she will refrain from discussions of this topic. Carolyn Krall of Landform is going to explain the details of the project. She commented that the team is convinced that a development plan for all districts is optimal and is in the best interest of the City based on the current market conditions. She felt that the Auditors Road project is the "heart" of the project and is suitable for ahotel /hospitality site and will be a major anchor for the area. This site will be prominently visable and will help set the tone. They envision a destination restaurant /hotel /banquet facility on this site. Will include 75 rooms. Buildings are designed to work as "individual" buildings. Proposal includes underground parking and a parking deck to serve all buildings. Commercial is first floor retail with office use(s) above on east Commercial. West side of Commerce will include first floor retail and senior housing on upper level which should provide for significant views of Lake Langdon. Two apartment building footprints are shown on Lake Langdon. Some encroachments are shown. There are wetlands on this site. The team would like to accommodate existing businesses. The project team is suggesting that they pursue development of some smaller buildings on the east side of Commerce Boulevard. This area is not contemplated by Mound Visions. The Lost Lake piece is probably be the first piece to be developed and they are proposing this property to be used for residential use with strong buffering from CSAH 25 and the SA. Slips /docks would also be beneficial for the project. Farmers market /scenic vista areas are also included in the proposal. Could be a viable trail head stop. Carolyn indicated that a preliminary proforma is included in the submittal information. Tom Stokes commented that the staging of the project will be very important. Tom intinerated that they wish to accommodate the existing businesses if possible. He further commented that additional dredging is an important element. PM asked about a timeline. KH commented that a schedule is included in the packet. Tom Stokes commented that there appears to be interest in the "build to suit" area along Commerce which is south of the existing district. He further commented that the State Bank of Long Lake is very interested in this project. DO asked about doing "several little projects" as opposed to the larger package. Tom commented that the project has been broken up into smaller increments and has private investors interested in the development. They looked at the project and asked "if you are going to have retail what do you need." They decided that they need young professionals, a senior element, local businesses, and residents. DO asked about the Auditors Road District and the comment that a real estate company is interested in this area. Tom clarified that the lower level would be retail and upper floor would be office. BB asked about whether the project(s) can meet the setback requirements. Carolyn commented on the parking requirements and the possible need for wetland buffer reductions. PM asked about the park and ride. Carolyn indicated that there are several areas which could accommodate the park and ride. PM commented that she is not certain regarding the agreement with MTC for the park and ride lot therefore this matter would need to be researched. PM talked about the "Point Person" for the group. Carolyn commented that it all likelihood the immediate contact will be Landform as they will be preparing the civil/architectural/schematic design plans. Tom is the second contact. Tom further commented that they anticipate the preparation of a development agreement for the master developer with side agreement with the secondary developers. PM asked about the building heights. Carolyn commented that the buildings are 4 stories and they have attempted to meet the 50 / 35 foot districts. PM commented that she is unsure about the "east" side of Commerce option. DO commented that he believes this option addresses two points including the removal of blighted buildings as well as the opportunity to provide space for relocating businesses. MH stated that the area in question is the "linear district." Carolyn commented that this area would be primarily used for "service commercial." Carolyn indicated that the buildings in this area would probably be 1-2 stories. PM asked about dredging permission. Tom indicated that he is optimistic they will get it. PM commented that the City has the permission to do the Lost Lake dredge. Tom commented that the docks could be involved in the public dock program. PM and MH discussed the Greenway and that there are funding issues tied to it therefore flexibility may be limited. The opportunity of incorporating the farmers market activities in the Greenway area was discussed. MH asked if any lake amenities (ie. paddle boats, canoe, etc.) are contemplated for the Lake Langdon District. The representative from Stonehouse Development indicated that they would offer lake amenities if possible. The complex will be rental and will be priced between $900 - $1200 per month. BB commented that there could be some dock rights for Lake Langdon. Carolyn commented on the possible use of rain gardens in the project area(s) and their experience in several projects including Tech Drive and the Pickled Parrot. Total project costs will be about $7M. Tom indicated that they have worked very hard to form a team and know that the City has to be partner as well. They are committed to the project and believe that the City will want to be a member as well. MH reiterated the City's commitment to the Mound Visions program. The interview ended at 9:40 PM. The HRA took a brief recess. The HRA reconvened at 9:52 PM. Chair Meisel indicated that the HRA would spend about 20 minutes discussing the proposals. She commented that she likes the "full" concept from Landform but indicated that several elements need to be reviewed and / or amended. PM indicated that there are positive elements to the Mahogany Bay proposal. MH commented that the strength of a theme and/or chain hotel/restaurant such as Chammps would be beneficial to the project. DO commented that he was supportive of the proposals from Mahogany Bay, MetroPlains and Landform. MH commented on the strength of an overall development with the benefits of the small specialties. PM asked if members of the HRA got the impression that Landform is flexible. Members felt they were. BB liked the presentation from Mahogany Bay as well as the design however he feels that the opportunity for a theme restaurant is important contrary to what the development team was saying. BB likes Landform and is impressed with the elimination of the slum and blight on east Commerce. He further commented on the prominent location of the hotel facility. DO believes the approach from Mahogany Bay is interesting and enjoyed his presentation. PM commented that he prefers from Landform over MetroPlains but commented that there will need to be some changes. He prefers the hotel on the Lost Lake site. MH indicated that he hadn't contemplated a hotel on the Auditors Road site and commented on the prominence of the site. DO indicated that he was Juke warm to the concept originally but feels there are some benefits to it. BB stated that he believes the hotel will work on Auditors Road due to its proximity to the downtown. DO commented on the dock issues. PM commented on the number of rental units and whether or not members of the HRA are OK with it. MH commented that the proposal is higher-end /luxury rental. PM commented there is a lot of rental in the proposal. However she is looking at the project as a whole. MH commented that Landform's proposal includes the most retail. KH commented on the locational issues associated with the placement of a hotel in the Lost Lake and Auditors Road sites. She further commented to hold firm to include retail on the first floor on Auditors Road. PM encouraged HRA members to be prepared to be ready to make a decision at next Tuesday's HRA meeting and further commented that the next step includes forwarding the proposals to Jim Prosser and Bruce Chamberlain for detailed review. MH expressed interest in making a motion this evening. Mark Hanus made a motion to direct staff to prepare a resolution authorizing Landform to serve as the principal developer for the Lake Langdon, Auditors Road and Lost Lake Districts. Peter Meyer seconded the motion. Discussion followed. Hanus, Osmek, Brown and Meisel voted in favor. Meyer voted against. Motion passed 4 to 1. Osmek moved, Brown seconded to adjourn the meeting at10:38 PM. to adjourn by second by at p.m. Motion carried.