05/23/2013 - City Council Finance CommitteeFINANCE COMMITTEE MEETING
WEDNESDAY, MAY 23, 2013
1:30 PM
CONFERENCE ROOMS 2A &B
AGENDA
I. AGENDA ADOPTION
II. CEDAR GROVE ITEMS
A. STONEBRIDGE APARTMENTS PURCHASE PROPOSAL
B. DEVELOPERS' MARKETING UPDATE - APPROACH TO MULTIPLE
OFFERS
III. OTHER BUSINESS
IV. ADJOURNMENT
Agenda Information Memo
Finance Committee Meeting
May 22, 2013
IIA. STONEBRIDGE APARTMENTS PURCHASE PROPOSAL
DIRECTION TO BE CONSIDERED:
To make a recommendation to either forward a concept plan and purchase offer by
Stonebridge Apartments to the EDA or to provide direction to the developers and staff
regarding further negotiations.
FACTS:
Staff and Ehlers staff had discussions with representatives of Stonebridge Apartments
about the company considering an apartment project in the Cedar Grove
Redevelopment District. Stonebridge has developed a number of projects in the
region, including the apartment /retail project in the southern portion of downtown
Rosemount. Once the firm expressed interest in the possibility, they were referred to
Len Pratt and Jim McCaffrey for further development of a project scope and purchase
proposal.
Mr. Pratt contacted staff with a proposal from Stonebridge for the purchase of the 4.8
acre parcel at the east end of the Cedar Grove Redevelopment core area, adjacent to
Jensens and the Bowling Center for the development of a mixed use project that
would combine market rate apartments with up to 17,000 sf of adjacent
retail /restaurant use.
• Additional information including a purchase proposal and concept plan will be
reviewed by Mr. Pratt and staff at the Committee meeting.
ATTACHMENTS: None — Information to be provided at meeting.
Agenda Information Memo
Finance Committee Meeting
May 22, 2013
IIB. DEVELOPERS' MARKETING UPDATE — APPROACH TO
MULTIPLE OFFERS
DIRECTION TO BE CONSIDERED:
To receive an update on Master Developer marketing activities and discuss approach to
multiple development offers.
FACTS:
• In consideration of the confidential nature of certain marketing and prospect
discussions, the Finance Committee has been assigned the responsibility of
monitoring the redevelopment area marketing activities of the master
developer /broker team on behalf of the EDA and City Council.
• Additional information regarding marketing contacts and activities will be reviewed
by Mr. McCaffrey and Mr. Pratt at the Committee meeting.
• One matter that has arisen since the announcement of Paragon's property closing has
been the anticipated increase in developer interest in the remaining outlots for a
number of different uses. As is anticipated by the EDA's agreement with Mr. Pratt,
the developer /broker team is responsible for vetting and qualifying the proposals and
assisting prospects in crafting approaches to the sites that are consistent with the
EDA's stated vision for the area.
At the same time, the EDA has purposely not substantially narrowed the possibilities
for various uses by location, so the investors can come to the area with market
supportable options. As a result, proposals are beginning to come forward that may
be financially viable, but may vary from the higher density mixed use expectations of
the EDA. Staff and the developers will provide background in this regard for
discussion and direction from the Committee members.
ATTACHMENTS: None — Information to be provided at meeting.