HomeMy WebLinkAbout2006 07-12 CCP Joint Meeting with Opportunity Site Task Force AGENDA
CITY COUNCIL/OPPORTUNITY SITE TASK FORCE JOINT MEETING
Wednesday, July 12, 2006
7:00 P.M.
City Council Chambers
1. Review of Proposals Submitted for the Redevelopment of the Logan and 57th Avenue
Site
a. Expectations
b. Submittals
c. Options Before You
d. Review of Proposals
e. City Costs
f. Task Force/City Council Comments
g. Recommendation to Council with Additional Follow Up
2. Adjourn
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Brooklyn Center
Review of Reat Estate Recvclinq Proposal
Submittal details
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requirements
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99,700 SF office showroom
project
x- 300 new jobs created
2.3 acres Structure
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Proposal Deficiencies
Commercial loading adjacent to
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Brooklyn Center
Review of °�a; ���a�� RG�y������ Proposal
Proposal Benefits
Mix of uses reflect neighborhood
desire for smaller commercial
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Team Brooklyn Center
Damon Fa�•ber Associates
ESG Architeets
Stanley Consultants
Benshoof Associates
Visua! Communications
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Curt Boganey
From: Kevin Benner
Sent: Tuesday, July 11, 2006 6:19 PM
To: Curt Boganey; Todd Blomstrom
Cc: Scott Bechthold
Subject: Water Ban Enforcement initiative
In response to the concerns of water ban violations on the increase and water reserve levels are on the decrease, the
NLO/CSOICadet teams are launching an aggressive enforcement initiative over the next five days.
Starting on Wednesday, July 12, we will be inspecting every address in the city at least once before the weekend for water ban
violations. There will be no less than two staff member patrolling the city looking for water ban violators throughout the daytime
hours. They have been given the directive to issue a warning citation to all violators that do not have a well as a source of water.
We wil! be entering in all violations into PIMs and if they are observed using water on prohibited days they will be issued a citation.
I will be running this initiative until Sunday, July 16th at which time we will evaluate the effectiveness of this strategy.
In the course of these five days, I anticipate roughly 100 hours of staff time dedicated to the water ban issue. The goal will be both
educating the public on the rules of water sprinkling as well as notification of enforcement actions for those who choose not to
comply.
Lt. Kevin Benner
All the teams will continue to enforce the water ban restrictions throughout the summer, but this is incorporated in their daily
duties.
Kevin
7/12/2006
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I
Curt Boganey
From: Sharon Knutson
Sent: Tuesday, July 11, 2006 3:27 PM
To: Curt Boganey
Subject: City Council Filing Update
City of B�ooklyn Center
Candidates Filing for City Office
07/06/061:15 p.m.
OFFICE OF MAYOR one position, 4-year term
NAME I ADDRESS I FILING DATE
Kathleen Carmody 7024 Knox Avenue North 07/OS/06
Kevin Olson 1506 71st Avenue North 06/29/06*
Tim Willson 7007 Dallas Road 07/OS/06
J Wynia 6706 Aldrich Avenue North 07/11/06
OFFICE OF COiJNCIL MEMBER two nositions, 4-vear term
NAME I ADDRESS I FILTNG DATE
Diane Niesen 5107 East Twin Lake Boulevard 07/06/06
Dan Ryan 6442 Indiana Avenue North 07/OS/06
Mark Yelich 6018 Beard Avenue North 07/OS/06
Candidates are listed alphabetically.
Candidates may file an affidavit of withdrawal up until Thursday, July 20, 2006, at 5:00 p.m.
*Absent Candidates A candidate for municipal office who will be absent from the state during the filing period may
submit a properly executed affidavit of candidacy and the appropriate filing fee in person to the City Clerk. The
candidate shall state in writing the reason for being unable to submit the affidavit during the filing period. The affidavit
and filing fee must be submitted to the City Clerk during the seven days immediately preceding the candidate's absence
from the state.
Sharon Knutson, City Clerk
7/12/2006
YY3'3'U�'
Curt Boganey
From: Kathleen Carmody
Sent: Tuesday, July 11, 2006 3:01 PM
To: Barrus, Mary B
Cc: Curt Boganey
Subject: RE: Rental properties
Hello Mary,
I would love to get together sometime soon. Probably this month will work out better. I will call you later this week.
Onto the rental and other issues:
1. It is difficult to stop someone from turning their property into rental housing because many ways to restrict have been or would
be deemed unconstitutional. People have the right to do that with their property. Code enforcement is still my pet peeve and it
did become lax over the winter. It was driven by complaints only. I am still pushing to have it inspected year round. That is an
uphill climb. However, the police chief did make a presentation to the city council about six weeks ago and I was shocked to find
out that a portion of what I thought was no code enforcement being done was, in fact, residents not responding to compliance
orders. Subsequently, we would take them to court and they would pay a fine and leave the property in the original condition.
Then we would write them up again and the process would repeat it self. Chief Bechthold cited one case where we took a guy to
court and he received a$50 fine. The case cost the city between $200-300 to prosecute. We can only afford to do that to so
many offenders before it overwhelms the budget. I agree most definitely that this is a continuing and growing problem. I do agree
that single family renta! homes are, as a rule, not maintained as well as home owners do. But I would also point out that some of
our worse offenders are residents who own their homes. I am forwarding this to Curt to see if there is perhaps a cap on the
number of rental homes that can occur in one city or if there are some more restrictions on what is occurring in the city that would
help with the overall number of problems.
2. The opportunity site is divided into finro parts. The 57th and Logan site and the area between Target and Brookdale Ford.
They also have two completely different scenarios. Tomorrow night, the task force and the city council will be meeting to
determine which of two proposals we will be accepting. IYs at 7:00 p.m., if you want to come. I think, especially as it is in your
neck of the city, that it would be beneficial for you (and any neighbors you can corral into coming) to come see what the two
options are and how we are going to decide. One is a residential/commercial development. The other is office/warehouse
space. So that one is on track to begin construction soon and should be back on the tax rolls by fall of next year.
The other site is more of thorny issue. As you probably know, the legislature made significant changes to the eminent domain
laws that have made it practically impossible to use it for economic reasons. We had originally tried to take the Pep Boys mall and
Brookdale Ford through eminent domain to get the plans for the site started. However, we could see that there was a foul wind
blowing after the Kelo supreme cou►t decision. We backed off because we were going to incur a lot of legal costs and the
legislature was leaning toward severe limitations. The plan is still in place, but since it will have to be done through negotiations
and voluntary sales, it will undoubtedly take much longer than previously thought. I believe that changes to the eminent domain
law will occur to make it easier, however, it will take 2 to five years before much will happen.
3. The run for mayor will need help. I have a mailing that I am going to do soliciting help very soon.
Thanks for the note and I will get back to you as to the outcome for rental housing code enforcement and restrictions.
Kathleen
From: Barrus, Mary B [mailto:mary.b.barrus@xcelenergy.com]
Sent: Mon 7/10/2006 10:46 AM
To: Kathleen Carmody
Subject:
Kathleen
Although I am more of a talky kind of person, at your suggestion, I just wanted to drop you a note on a couple of things. First, I would like to
7/12/2006
YYYYU�'
help in any way on your run for mayor.
Next, more of a complaint than anything else, I guess. The number of single family homes for rent in our city looks like it has gotten totally out
of control. When you drive down the street, there are "For Rent" signs everywhere, and the upkeep has been dropping on houses where it looks
like they are already being rented (just drive down 57th Av from Logan to Camden).
When I was on the Housing Commission and modifying the rental licensing was our priority, it was decided that only unit larger than 6 units
were going to be addressed. I mentioned it at that time, but now am more concerned that either individuals or companies like the the former
"We Buy Ugly Meters" is buying up whole bunches of houses and renting them out, and I do not believe they are being held to the same
standards as the rental licensing for larger multiple dwellings. Can the City stop issuing new rental licenses? (I believe I have read that this has
been done in other cities.)
I hate to see that after all the wark that has been done to improve our City, the delay of the Opportunity Site (is anything going on there???) and
this rental thing is causing our reputation to drop like a rock again.
Sorry I know this is rambling I just hate having to get all defensive about where I live
If you ever have a minute, would love to sit and talk over a cup of coffee some time would love to catch up on the kid-things, too
work# is 612-630-4581 home# 763-561-0555
7/12/2006
1
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HIGHWAY 100 CORPORATE CENTER
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RER Acquisitions LLC
90 South 7th St Suite 4500
Minneapolis, MN 55402
httn://www.realestaterecvcline.com/
Legal Status:
MN LLC, a development affiliate of Real Estate Recycling LLC
Federal ID Number: 41-2021081
State ID Number: 25558-LLC
Contact Person:
Paul Hyde, CEO
(612)904-1513 x10
pmh66@aol.com
June 1, 2006
s
Real Estate Rec clin
Y g
Table of Contents
1. Proposal
2. Aerial Photo, Site Plan, Elevation
3. Broker Letter, Prospect List, Market Research
4. Environmental Assessment for Development
I
5. Pro Forma
s
2
Real Estate Recycling
Proiect Descrintion
The proposed Highway 100 Corporate Center is a state-of-the-art office/showroom park in
the City of Brooklyn Center. The Park will feature 2 office/showroom buildings on 8.5 acres
totaling 97,000 sf.
The proposed Highway 7 Corporate Center will be located less than 2 miles north of the
recently completed France Avenue Business Park that includes Caribou Coffee, Toro and I
Wickes Furniture, and less than 1 mile north of the Minneapolis Business Center now under
construction by Real Estate Recycling at 49�' Avenue and Brooklyn Boulevard.
Our experience tells us that the 57th and Logan site is an excellent candidate for
redevelopment for office/showroom. The Site has the necessary characteristics of a I
successful redevelopment, including:
Excellent inner ring location
Proximity to Hwy. 100
Visibility from Hwy. 100
Excellent labor force
Existing Infrastructure
The proposed development of the Highway 100 Corporate Center builds on the momentum
created by Real Estate Recycling's redevelopment of the former Joslyn wood treating site
into the France Avenue Business Park. With the completion of the 425,000 square foot
France Avenue Business Park, the real estate market became aware of the enormous market
demand for a brand new inner ring industrial park. The strong leasing activity reflected in
RER's current development of the Minneapolis Business Center demonstrates the market
demand for high quality, infill located office showroom and office warehouse buildings.
The Highway 7 Corporate Center will bring a number of benefits to the community,
including over 300 new jobs, an increase in tax base, an upgraded image along Highway 100
and an effective environmental cleanup of the site. RER has significant experience in
redeveloping polluted sites and has demonstrated an ability to effectively evaluate the
market, creating sustainable projects with enduring value and economic viability. This
i proven track record, both in Brooklyn Center and other communities around the Twin Cities
and Milwaukee, makes RER the ideal candidate to redevelop the 57th and Logan site.
M
3
1
Real Estate Recycling
I
1
Proiect Characteristics
General Location: The Project is located in the City of Brooklyn Center, MN and is
bounded by Highway 100 on the North and West, 57�' on the South
and Logan on the East.
I I
Access: Cty. Rd 57 exit from Highway 100. I
Loading Truck Access: Truck loading located in an interior truck court screened from
residential by a cedar fence and landscaping. The buildings will
feature 4' high dock and drive-in doors.
Zoning: I-1, light industrial. Site currently zoned C-2 and will require re-
zoning.
Topography: Level
Utilities: All required utilities are available in the adjacent roadways
and will be routed to the new building. Storm water and water will
be master planned for the larger site, with storm water retention in
truck dock area and storm water treatment through underground
filtration system ensuring effective treatment for the watershed and
also maximizing the developable site.
Landscaping: The site will be landscaped to create an attractive
appearance and will comply with City landscape criteria and
integrate the project with the surrounding community. Truck dock
area will be effectively screened from residential views by an
attractive cedar fence with extensive landscaping in front of the
fence.
Building Clear Height: Approximately 18 feet
4
i
R� Estate Recycling I
Construction Materials:
Exterior: Attractive brick, glass and painted precast (see
appendix 2 for elevation)
Structure: Spread footings, steel columns, steel bar
joist and deck
Slab: 6" un-reinforced concrete over 6" Class V
Roof: EPDM membrane roof
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HVAC: Gas Unit Heaters (warehouse)
Roof-top Units (office)
Interior Finish: Per tenant
Parkin� Lot: 3" aggregate over 6" granular base in auto
areas
S 4" aggregate over 8" granular base in truck
court
Curbs: Concrete, poured in place
Design:
RER envisions the Highway 100 Corporate Center as being consistent with Office
Concept 1 as outlined in the 57�' and Logan Redevelopment RFP. The design will
incorporate 2 office showroom buildings:
building 1: approximately 54,700 sf
building 2: approximately 45,000 sf
The development will maximize office showroom space, accommodate necessary
parking, integrate storm water retention and treatment and utilize innovate design and
landscaping standards to effectively integrate the Highway 100 Corporate Center in the
surrounding neighborhood. The site entrance design will reduce the number of curb cuts
along Logan and 57�' from five to two, dramatically improving traffic congestion along
57 while accommodating the traffic patterns of the development.
5
s
�v
R� Estate Recycling
Develoaer ldentification
Developer and Building Owner:
RER Acquisitions LLC a development affiliate of Real Estate Recycling LLC.
Developer History:
Since 1995 Real Estate Recycling (RER) has developed over 1.4 million sf of industrial
buildings on polluted sites in the Twin Cities and Milwaukee, WI. In 1999, RER was one of
the first developers in the nation to develop two separate federal superfund sites. For its
developments RER has won 4 NAIOP Awards of Excellence, 2 Business Journal Best in
Real Estate Awards and the 2004 EDAM President's Award. In 2004 RER completed two
new industrial buildings on polluted sites, the 130,000 square foot Caribou Coffee World
Headquarters in Brooklyn Center and the 79,000 square foot Edgewood Business Center in
St. Louis Park, MN.
RER has significant development experience in the City of Brooklyn Center and the
surrounding areas, (see aerial photo, appendix 2), responsible for over 1,000,000 sf of new
construction in the Twin Cities.
Real Estate Recycling LLC is owned by Maclay Hyde, Jeff Hall and Paul Hyde. A brief
description of the owners follows:
Maclay R. Hyde, Chairman
Harvard University (AB 1957), Columbia University, University of Minnesota (LLB
1962). Mac is responsible for RER's consulting projects. Mac is currently involved in
several complex environmental and real estate issues involving major companies.
Paul M. Hyde, CEO
Connecticut College (B.A. 1988), Northeastern University School of Law (J.D. 1992),
Boston University School of Law (LLM 1994). Paul is responsible for the development
of RER's projects in the Minneapolis market.
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Jeffrey T. Hall, President
Amherst College (B.A. 1986), Harvard Business School (MBA 1992). Jeff is responsible
for the development of RER's projects in the Milwaukee market.
6
Estate Recycling
Project Team:
Design/Builder: Leith Dumas, P.E., Opus Northwest Construction
Property Manager: Wendy Madsen, CPM Ryan Properties
Tenants: See attached Prospect List
Environmental Engineer: Christopher Thompson, PE, Geomatrix
Civil Engineer: Bob Steinhoff, P.E. Opus Architects and Engineers
Geotechnical Consultant: Braun Intertec
Attorney for Developer: Wade Anderson, Gray Plant Mooty
Listing Broker: Peter H. Mork, J.D., Welsh Commercial Real Estate Services
Mortgage Broker: Dan Mott, Towle Financial
Over the past twelve years, the RER project team has had extensive experience working together
to remediate and redevelop contaminated sites. The projects summarized on the following pages
provide a sample of our experience together.
7
Estat Recycling
Previous Team Experience (Representative Sample of Projects):
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Before After (Master Plan)
Project name: Minneapolis Business Center
Project type: 128,800 sf of office/warehouse
S Location: 49�' and Brooklyn Blvd. in Mpls.
Proposer's roles: Developer, Owner
Cost ofproject: $10 million
i Funding sources: Developer Equity, Construction Loan
Status of project: Under Construction, Completed Fa112006
Continued ownership: 100% owned by principals of Real Estate Recycling
Project summary:
Before
10 acre site
Vacant for 90 years
r 0 Jobs, $0 tax base
After
I Site filled with street sweepings impacted with petroleum
Development will require removal of impacted soils
and an under floor vent system.
Building completion: Fa112006
Will generate $300,000 in property taxes annually
r Tax base increase over $6 million
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Estat Recycling
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Before After (Master Plan)
Project name: Highway 7 Corporate Center
Project type: 78,800 sf of office/warehouse
Location: Hwy 7 and Louisiana in St. Louis Park
Proposer's roles: Developer, Owner
Cost of project: $12 million
Funding sources: Developer Equity, Construction Loan
Status of project: Under Construction, Completed Winter 2007
Continued ownership: 100% owned by principals of Real Estate Recycling
Project suminary:
Before
Federal and state superfund site
lead impacts to soil and groundwater from former smelter
0 jobs, minimal tax base
After
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Site filled with street sweepings impacted with petroleum
Development will require treating lead impacted soils and
an under floor vent system
Building completion: Winter 2007
Will generate $350,000 in property taxes annually
Tax base increase over $5 million
9
R� Estate Recycling
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Before After
Project name: Building III France Ave. Business Park (Caribou Coffee HQ)
Project type: 130,000 sf of office/warehouse
Location: Hwy 100 and France Ave N., Brooklyn Center
Proposer's roles: Developer, Owner
Cost of project: $7.7 million
Funding sources: Developer Equity, Construction Loan
Status of project: Completed 2004
Continued ownership: 100% owned by principals of Real Estate Recycling I
Project summary:
Before
Federal and state superfund site
Residual impacts to soil and groundwater from former
wood treating operation
0 jobs, $0 tax base
After
Development designed to accommodate operating
groundwater treatment system
Generates $180,000 in new property taxes annually
Tax base increase over $4 million
Winner of 2004 Business Journal Best in Real Estate
Award
Winner 2004 NAIOP Award of Excellence
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10
I
Estate Recycling
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Before After
Project name: Building II France Ave. Business Park
Project type: 109,000 sf of office/warehouse
Location: Hwy 100 and France Ave N., Brooklyn Center
Proposer's roles: Developer, Owner
Cost of project: $7 million
Funding sources: Developer Equity, Construction Loan
Status of project: Completed 2001
Continued ownership: 100% owned by principals of Real Estate Recycling
Project summary:
Before
Federal and state superfund site
Residual impacts to soil and groundwater from former
wood treating operation
0 jobs, $0 t� base
After
Development designed to accommodate operating
groundwater treatment system and soil impacts
Generates $175,000 in new property taxes annually
Tax base increase over $4 million
Winner 2002 NAIOP Award of Excellence
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11
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Estate Recycling
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Before After
Project name: Building I- France Ave. Business Park (Wickes D.C.)
Project type: 203,000 sf of office/warehouse
Location: Hwy 100 and France Ave N., Brooklyn Center
Proposer's roles: Developer, Owner
Cost of project: $10 million
Funding sources: Developer Equity, Construction Loan
Status of project: Completed 2000
Continued ownership: 100% owned by principals of Real Estate Recycling
Project summary:
Before
Federal and state superfund site
Residual impacts to soil and groundwater from former
wood treating operation
0 jobs, $0 ta�c base
After
Development designed to accommodate operating
groundwater treatment system and soil impacts
I• Under floor vent system
Generates $300,000 in new property taxes annually
T� base increase over $7 million
Winner 2001 NAIOP Award of Excellence
��I�
I I 12
Estate Recycling
Relevant Experience with Public Entities References:
Real Estate Recycling has developed over 1.4 million sf of commercial buildings on polluted
property in Minneapolis and Milwaukee. In so doing we have worked hand in hand with Cities
such as Brooklyn Center, St. Louis Park, Minneapolis, Fridley, Milwaukee, WI, Brookfield, WI
and West Milwaukee, WI. We have also worked extensively with the Minnesota Pollution
Control Agency and the Wisconsin Department of Natural Resources to integrate the pollution
cleanup with the new development. Finally, we have worked with grant funding agencies such
as the Minnesota Department of Employment and Economic Development, Metropolitan
Council, Hennepin County and Wisconsin Department of Commerce to fund these cleanups.
r
References:
Brad Hoffman, City of Brooklyn Center
763 569-3305
Tom Bublitz, City of Brooklyn Center
763 569-3433
Greg Hunt, City of St. Louis Park
952 924-2197
Meredith Udoibok, DEED
651 297-4132
Additional references available upon request
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13
i
R� Estate Recycling
Market Studv
RER, in collaboration with Welsh Companies, has carefully analyzed the real estate market that
includes the subject site and has concluded that office showroom is the appropriate
development for the 57 and Logan site. Currently there is tremendous demand for office
showroom given the tightening office market. The requirement from users of space for an infill
location makes the 57�' and Logan site an ideal location for office showroom. Finally, with
RER's current experience developing the Minneapolis Business Center and Highway 7
Corporate Center, we have identified a list of prospective tenants that could occupy the proposed
Highway 100 Corporate Center. i
See appendix 3 for complete market analysis, including a list of prospective tenants, rental rates,
office percentages and appropriate land price.
w
14
R� Estate Recycling
Descriqtion of Public Benefits
The completion of the cleanup and redevelopment of the Logan and 57�' site has many benefits,
including:
Fulfilling the Development Objectives within the Logan and 57th Request for Proposals.
•$9.3 million in new construction, significantly improving the visual appearance of this
tired property along Highway 100.
•$300,000 in property taxes paid annually.
Approximately 300 new jobs to the Site. I
Creating 99,700 sf of much needed, highly marketable, modern office/showroom space I
on a very visible site in the City of Brooklyn Center.
Treating the most heavily contaminated soils and providing a significantly better remedy
than exists at the Site today.
Eliminating the human health risk and natural resource exposure to petroleum and PCE
contamination.
Unlike housing developments, this proposed project will be a low impact user of City
services, while adding significant new tax base and jobs.
Unlike retail uses, the proposed office/showroom park is a longer lasting, more
sustainable use for this site, exemplified by the decline of surrounding retail uses.
Upgrading tenant mix on the Site.
Enhancing the scale and character of the adjacent neighborhood through the use of
appropriate design standards.
Providing a land use that will not exacerbate the congested traffic situation at Hwy 100
and Logan Avenue, and constructing a single vehicular entrance on Cty. Rd. 57
Creating a high quality development with enduring value and economic viability.
Before After
Assessed Value 0 $10.2 million
Property Taxes Pd. 0 $300,000
Jobs 0 300
I
15
I
R� Estat Recycling
I
Environmental Issues
In collaboration with Geomatrix Consultants Inc, RER has evaluated the environmental contamination
currently existing on the Logan and 57` site. The environmental issues can be sepaxated according to
the north and south areas of the site. The North Area, formerly the site of a dry cleaner, contains soil
vapor and groundwater impacted by chlorinated volatile organic compounds at concentrations above
regulatory sta,ndards. This contamination was also identified in offsite groundwater a.nd off-site soil
vapor. The South Area, the former site of two service stations that were closed LUST sites, currently
contain soils, soil vapor, and groundwater impacted by petroleum hydrocarbons at concentrations that
will potentially require remediation despite the closed status of the site.
RER has the experience to effectively clean up the contamination at the Logan and 57 site. Impacted
soil will be excavated from affected areas, and replaced with clean fill excavated elsewhere at the site.
RER's proposed remedy will consist of excavating both drycleaning and petroleum impacted soils from
under building or green space areas and placing them under a pavement cap. Clean soils will be placed
and compacted in the excavation areas. Soil vapor impacts will be addressed through the use of a vapor
barrier, in accord with MPCA specifications, beneath the footprint of the planned buildings. Costs
associated with this vapor barrier are in accord with current MPCA specifications. If these guidelines
change, the outline cost assessment will require modification.
See appendix 4 for an outline of the options for managing the contaminated soil, the cost of alternative
options, and complete narrative describing the nature of the contamination.
Based on our 12 years of experience in developing polluted sites, and the MPCA's elevated concern
over vapor migration into buildings, we believe that an industrial use is far more appropriate use on this
site than residential. RER's experience in securing grant funding for brownfield cleanups will be vital in
obtaining funds to pay for the proposed cleanup.
16
R� Estate Recycling
Proiect Schedule
Submission of Proposal June 1, 2006
Developer Selected Aug. 2006 I
Environmental Investigation and RAP based on Development Fa112006
MPCA Approval Developer's RAP Oct. 2006 i
Grant Funding Applications Nov. 1, 2006
Grant Funding Awarded Jan. 2007
Cleanup April, May 2007
Building 1 Construction June Oct. 2007
Building 2 Construction April Aug. 2008
I
I�
I I 17
R� Estate Recycling
Proiect Pro Forma
We have attached a pro forma (see appendix 5) for the Highway 100 Corporate Center for your review.
This pro forma is based upon current costs for construction, achievable rental rates and likely office
percentage provided by our brokers.
Our pro forma shows a land value of $1.1 million or $3 per square foot. The land price we propose is
driven by three factors: market prices for industrial land, site coverage and building materials. As seen
in the letter from our brokers at Welsh, the market value for this land in Brooklyn Center is $3. This
value is heavily influenced by surrounding uses (Dollar Store, drywall contractor etc.). Secondly, our
floor area ratio is quite low (27%) driven by the triangle shape of the site and the power lines cutting
through the site. Finally, we have included in the building cost extensive brick and glass to improve the
aesthetic value of the development (see appendix 1- building elevation), and this adds significant cost to
the project.
18
Real Estate Recycling
Consent for Release and Resnonse Data
June 1, 2006
City of Brooklyn Center
Department of Community Development
6301 Shingle Creek Parkway
Brooklyn Center, MN 55430-2199
Re: Logan and 57 Redevelopment Requests for Proposals Consent for Release
of Response Data
Paul Hyde, on behalf of Real Estate Recycling LLC and RER Acquisitions LLC, hereby
consents to the release of its development proposal in response to the Logan and 57�'
Redevelopment Requests for Proposals and waives any claims it may have under Minnesota
Statutes Section 13.08 against the City of Brooklyn Center for making such information
public.
Pa e
CEO, Real Estate Recycling
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I j� R�Estate Recycling
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Brooklyn Center, MN
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PROJECT INFORMATION
Site Area 8.49 Acres
Building Area 99,700 SF
Parking Provided 338 Stalls
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County Road 57 0 50 100 200
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SITE PLAN
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N I WELSH
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A Welsh Company
900 2 Avenue South
Suite 1625
Minneapolis, MN 55402
May 25, 2006
Mr. Paul Hyde
Real Estate Recycling
90 South 7th Street, Suite 4500
Minneapolis, MN 55402
RE: 8 ACRE SITE
BROOKLYN CENTER, MINNESOTA
Dear Paul
Thank you for taking the time to show me the above mentioned land site and discussing the leasing
market for office/showroom product in the NW Twin Cities quadrant. After having reviewed your
proposed building layout, I believe there is strong potential to market this site successfully to the
office/showroom market. I
Currently, we are seeing a tremendous amount of office buildout in the office/showroom product type
given the tightening office market and the demand for users to remain "urban" in location. Based on the I
proposed bay depth of 100-120 feet, liberal glass line, attractive exterior finish, you should be able to
capture $11.00 I 1.50 per square foot for office space and $5.00 -$5.50 per square foot for warehouse.
With prospects wanting 60%-70% of office space buildout, it is important to park the project for 5 per
1,000 on expected office finish leveL I also recommend an 18' clear height and dock and drive-in
capabilities as well.
With strong tenant interest in your other two spec developments, (Minneapolis Business Center and
Highway 7 Corporate Center), I have enclosed a list of suitable prospects that would also work well for
this site. In addition, a copy of Welsh's Quarterly Market Update is also enclosed for your review.
Lastly, land prices for this type of property, given its location and triangular shape, along with overhead
power line constraints, I would expect a market purchase price of approximately $3.00 per square foot.
I look forward to speaking to you in the near term. Please call with any questions or concerns regarding
the enclosed.
Sincerely,
Peter H. Mork, J.D.
Senior Vice President
952.897.7772
nmork(n�.welshco.com
Enclosures
c: Steve Nilsson
Jason Simek
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According to the Minnesota Trade Office, in 2005
Minnesota shipped $13.8 billion worth of manufactured
goods out of the country, a record amount for the state �o
and a 17% increase over 2004 exports. Industry is `JI
booming across Minnesota and throughout the Twin MINNEAPOLIS
Cities metro, and the industrial sector of the commercial wesTiNORrHwesT NORTH I
real estate market is reaping the benefits of this positive iss
activity. In the 1st Quarter of 2006, the metro saw
312,049 SF of positive absorption, bringing metro-wide
vacancy to a low 9.26%. Moreover, the positive absorp- '5�
tion was spread across all product types, a sign that the I 'F� �qlrpo�i2��
market has progressed back to heaithy levels as recov- M� ��u ST. PAUL
mta�nna� 4 EAST
ery generally begins in the bulk warehouse category and SOUTHWEST y►
gradually spreads into the more expensive product AIRPORT!
types. SOUTH OP
THE RIVER
52
Across the metro, rates are on the rise due to increased
demand, tighter supplies, and higher land and construction costs for new product. Fortunately the market can withstand I
the increases as cost has decreased as a priority for tenants who are now equally if not more concerned with quality, effi-
ciency, and flexibility of space. With construction costs up an average of 15%, the current rent growth should allow new
developments to proceed without concern that high costs will prohibit a profitable return. Given that land and construc-
tion costs are so high, however, expect to see development focused on office showroom and higher priced product rather
than bulk warehouse space.
w
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Twin Cities industrial Market Ne# Absorption
Other types of space that are at a premium right now InThousaac3safSquareFeet
include space with 24' clear height, spaces with a mini- ■A�S°��$°^
mum of 18' clear height and ampie drive-ins and dock 3,c,ao,noa
doors that are able to accommodate large shipping crates
from oversea suppliers, and large blocks of space consist-
ing of 50,000 SF or more.
z,000,oao
St. Paul East Boasts Lowest Vacancy in Metro
The St. Paul East industrial submarket currently sits at a ,,5oo,00c
low 6.06% vacancy rate. Despite a negative -54,685 SF of
absorption in the 1 st Quarter, the St. Paul East enjoys the �.000,000
lowest vacancy in the metro. Contributing to the negative
absorption, Mid Mack vacated 39,216 SF at Oakdale �ou,oco
,t: a,z ��s
Interstate Center.
s�sn er,.�e�
In general, activity in the region seems to be on the 200� 2oos 2004 2005 �s00
increase as business in the manufacturing sector has
picked up and tenants are looking to expand. Most tenants currently in the market are looking for between 10,000 30,000
SF Other significant submarket activity this quarter includes the sale of Energy Park Corporate Center, a 100,364 SF build- i
ing built by Ryan Companies. The center, which is 94% office and 6% warehouse, was recently sold to Navigator Real
Estate Partners, LLC for a hefty $122 PSF
Minneapolis North Favoring Bulk Warehouse Space
The Minneapolis North submarket saw a slight drop in vacancy this quarter, falling to 8.23% after 7,964 SF were absorbed.
In this region, Bulk Warehouse seems to be significantly outperforming the other product types. In fact it was the only
product type to see positive absorption this quarter. Contributing to the positive activity in this category, Advanced Web
Technology signed a long term lease to occupy 80,000 SF at 600 Hoover St NE. Industrial condos also seem to be per-
forming particularly well in this corner of the market where smaller tenants who appreciate the opportunity to purchase
S space are prominent.
Development on the Rise in West/Northwest
The West/Northwest industrial submarket continues to be a strong performer, turning in 8.79% vacancy this quarter and
15,125 SF of absorption. Confidence in the west/northwest submarket is high enough to warrant an influx of develop-
ment. In Otsego, Duke Realty has acquired 170 acres of land on which it plans to build theTwin Cities' "premiere master
planned industrial business destination." Once complete, the plans call for 1.4 million SF of industrial development along
Highway 101 on 122 acres of the site with the remaining 48 acres slotted to be sold for residential development.
In Brooklyn Park, Fiyan Companies is seeking approval from the city to build two speculative office/showroom buildings
for a total of 150,000 SF. Construction on the project could begin as early as April 2006, although plans are being Ieft open
for maximum flexibility of end use.
Tenants Seeking Functionality of Space in Airport
South of the River Twir� �m�ies Industria# M�rket -�irect Vacars��
Direct Vacancy ftate
After 92,507 SF of 1st quarter absorption, the Airport
South of the River submarket sits at a comfortable �sco�
�n 9?O:�
11.01 vacancy this quarter. In one transaction con- ,a.00�
tributin to the ositive absor tion in this submarket,
9 P P tz.oa� _:,2.tar>
Kuehne Nagel, one of the world's leading logistics
providers, relocated from office/showroom to �o.00q
a�a
office/warehouse space to absorb 30,077 SF of space at s.00%
Armstrong Business Center I I. The Kuene Nagel move s.00�,
is representative of an overall market trend of tenants
expanding to maximize the functionality of their space. 4.00�
2.00i�
While land is in short supply and land prices are very high o.00�,
in the Airport South of the River submarket, Duke is �oo, �noz lno3 zc,o� �o05 �S�Qt�
reportedly planning to build a large industrial park on 137
acres in Lakeville. Although still in the early stages, the cleveloper is proposing between 1.5 million and 2 million square
feet of bulk industrial warehouse space.
Southwest Leads the Market in 1st Quarter Absorption
Although at 12.10% the Southwest lags behind the other submarkets in terms of vacancy, the regio� saw the greatest
positive absorption in the metro in 1st quarter with 251,138 SF. Among the tenants signing deals this quarter, Rub Inks,
an Italian company, committed to 17,000 SF of space at Valley Oaks Distribution Center; Bose leased 20,000 SF at Eden
Woods; Uroplasty Inc. signed for 18,258 SF at 5420 Feltl Road; and Target renewed its lease for 152,000 SF at Continental
Distribution Center.
As a testament to the strength of the current market, St. Louis-based Commercial Development Co., Inc. announced
recently that it plans to sell its 25-building industrial portfolio. When CDC purchased the portfolio two years ago, it origi-
nally intended to hold the 1.2 million SF package for 7- 10 years, but with occupancy rates strong and investor interest
high, the market is too hot right now to pass up the opportunity to sell.
What's Ahead?
The positive trends established this quarter of decreasing vacancy rates and increasing rental rates should continue
through the remainder of 2006. Moreover, despite high land and construction costs, industrial development will pick up
as rates rise enough to offset the increase in costs for ne�.� product.
Industrial Facts 1st Qu�rter 2006
Submarket Total SF Direct Sublease %Vacant %Vacant 1st Quarter YTD
Vacant SF Vacant SF Direct W/Sublease Absorption Absorption
Airport/South of the River
Bulk Warehouse 4,024,344 691,900 42,143 17.19% 18.24% -53,310 -53,310
Office Showroom 2,255,799 266,941 0 11.83% 11.83% 57,620 57,620
OfficeWarehouse 8,044,340 547,476 28,858 6.81% 7.16% $8,197 88,197
Totals: 74,324,483 1,506,317 71,001 10.52% 11.01% 92,507 92,507
Minneapolis North
BulkWarehouse 4,718,486 475,809 0 10.08°a 10,08°i� 65,365 65,365
Office Showroom 2,503,189 265,936 0 10.62% 10.62% -40,779 -40,779
Office Warehouse 15,163,633 1,024,002 76,595 6.75% 7.26% -16,622 •16,622
Totals: 22,385,308 7,765,747 76,585 7.88% 8.23% 7,964 7,964
Southwest
BulkWarehouse 5,261,866 1,037,940 32,300 19.73% 20.34% 237,710 237,710
Office Showroom 6,880,484 491,432 137,300 7.14°/a 9.14°/a -2,017 -2,017
Office Warehouse 15,074,069 1,548,537 45,366 10.27% 10.57°/a 15,445 15,445
Totals: 27,216,419 3,077,909 214,966 11.31% 12.10% 257,738 257,138
St. Paul East
BulkWarehouse 5,921,589 486,352 0 8.20% 8.20% -32,160 -32,160
Office Showroom 1,741,418 66,937 0 3.84% 3.84% 13,538 13,538
Office Warehouse 12,314,522 639,291 18,169 5.19% 5.34% -36,063 -36,063 I
Totals: 19,977,529 1,191,580 18,189 5.86% 6.06% -54,685 -54,685
West/Northwest
BulkWarehouse 9,298,869 804,260 0 8.65% 8.65°/a -59,494 -59,494 I
i Office Showroom 4,627,964 456,125 122,492 9.86% 12.50% 5,279 5,279
OfficeWarehouse 18,621,736 1,421,081 57,290 7.63% 7.94%a 69,340 69,340
Totals: 32,548,569 2,681,466 778,782 8.24% 8.79% 15,125 15,125
BulkWarehouse: 29,225,154 3,495,261 74,443 11.96% 12.21% 158,111 158,111
Office Showroom: 18,008,854 1,547,371 259,792 8.59% 10.03% 33,641 33,641
Office Warehouse: 69,218,300 5,180,387 226,278 7.48% 7.48% 120,297 120,297
Market Totals: 716,452,308 10,223,079 560,513 8.78% 9.26% 312,049 312,049
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fvlore than any other commercial real estate market, the
health of the office market is directly linked to the health of
the local economy; specifically, there is a direct corollary �o
between hiring increases and oifice absorption. At 4.4%,
Minnesota's economy continues to perform better than the
national average in terms of unemployment. The national WEST/NORTHWEST
unemployment rate for February 2006 was 4.8%; however, 69 ST. PAUL s I
the national rate has recently narrowed the gap. State MINNEAPOLIS CBD SUBURBAN
employment growth is also slightly ahead of the national
iz I
curve at 1.7% as opposed to a 1.6% national growth rate. ST. PAU� CBD
Projections for 2006 predict 13% of Minnesota employers .c�,., ��p�����
Vil►' �ylF'
will increase employment levels and 81 will maintain their <5; M s:
current levels. In short, Minnesota's economy and recent 'r
SOUTHWEST 1emN
employment statistics have been steady if not stellar, and AIRPORT/
the performance of the Twin Cities office market has mir- SoUTH oF
rored this consistency. THE RIVER
Across the market, activity is good but not great. Class A
space continues to outperform Class B and C space as tenants continue to upgrade in quality. Concessions in the form of
free rent and tenant improvement allowances continue to decrease but have not yet disappeared, particularly on long term
deals of 5 or more years, for large tenants, and for lower quality space. The 1 st Quarter of 2006 saw 385,855 SF absorbed
with vacancy dropping to 15.68%, so the market momentum is definitely moving in the right direction. However, recovery has
not progressed as quickly coming out of this most recent market slowdown as compared to previous recessions, and in most
submarkets, there is still plenty of available space left to be absorbed before new development will begin.
x
,v,
T'
rv.,.
Minneapolis CBD Seeing a Flurry of Investment Activity
The Minneapolis CBD continues to make slow but steady improvements, absorbing 243,591 SF of space during 1st quar-
ter, dropping vacancy to 16.49%. Several large transactions contributed to this positive activity including Oracle's lease
for 118,000 SF at International Centre. Oracle left behind 172,000 square feet of space at Retek on the Mall which Target
Corporation will sublease. Marshall Group also relocated from another downtown building and has signed for 57,000 SF
at 225 South Sixth Street. At Fifth StreetTowers, Bowman Brook plans to expand into an additional 55,000 SF of space.
With vacancy rates in both downtowns lagging behind the other submarkets, space in Minneapolis and St. Paul is becom-
ing increasingly attractive to suburban tenants as available Class A suburban space dwindles and rates begin to rise.
Aggressive downtown rates make skyway space with parking competitive to the suburban market. International Centre,
for example, recently signed Foster Klima to a 21,000 SF lease. Foster Klima will be relocating from Eden Prairie.
In contrast to the measured pace of leasing activity in the Minneapolis CBD, investment activity is occurring at a fast and
furious rate. After barely a year as owner of the IDS Center, Chicago-based John Buck Co. has put the 51-floor skyscraper
back on the market. Hines is likewise selling 225 South Sixth Street, a 1.39 million SF tower. These investment listings
were announced in the wake of two record breaking sales years: 2004 and 2005 saw combined sales of office properties
in the CBD reach just over $1 billion as compared to $248 million in sales recorded in the three years prior. Confidence in
real estate as an investment opportunity remains high, which should feed the demand for investment properties through
the remainder of 2006.
St. Paul CBD Slowly Backfilling Vacancy Left by Government Relocation
Coming off a year that saw a mass exodus of government employees from the multi-tenant rr�arket into newly-construct-
ed state-owned buildings, the good news in the St. Paul CBD is that the submarket weathered the 1 st Quarter of 2006
vvithout any significant negative absorption while vacancy held steady at 20.27%. Moreover, it looks like the trend to move
fram private to public-owned buildings may be reversing as Ramsey County is reportedly considering a lease for 66,000
square feet of space at Wells Fargo Place to relocate its Property Records and Revenue Department out of the Ramsey
County Government Center West Building.
Twin Cities Office Market Net Absorption
St. Paul Suburban Experiencing a Rise in Office/Medical ��Thoux�„�,s„ts,,,,„,PFar,
Developments
With office vacancy in the St. Paul Suburban submarket the low- 4
est in the metro at 12.35% following 17,511 SF of 1 st quarter
2,000 oor
absorption, it is no surprise that the region is one of two sub-
1,500.600 a:•� �a�+
markets seeing active development at this time. MSP 7 e^�^�
Properties has several office/medical buildings under construc-
tion including the 24,OQ0 SFYankee Doodle Professional building ��Q�»
in Eagan and the Woodbury City Center Professional building, a
three-story, 55,000 SF office building on Radio Drive. Both are n o
scheduled to open Fall 2006. As support for the proposed 5 u
Central Corridor light rail line builds, developers and landowners
,.eno,�x,o
are also making plans for redevelopment along the midway.
Steve Wellington and Saxon Ford have already put land parcels z,000.000
1.,
on the market with asking rates close to $1 million per acre. -1500,000
200� ZOn� 2003 ZO�a 2tX�F 2006
i
Southwest Ventures Into Speculative Development
The Southwest office market is among the most sought after space in the Twin Cities with large blocks of Class A office
space hard to find. Vacancy in the region sits at a low 13.27% following 119,728 SF of absorption in 1st quarter.
Consequently, the Southwest will be the first office submarket to experience speculative development on a large scale,
with several projects already underway. At the I-494/Highway 100 interchange, Duke is poised to begin work on Norman
Point II, a 10-story, 322,000 SF facility. Norman Point II should be ready for occupancy by October 2007. Ryan Companies
is also working with the city of Bloomington on plans forTwo MarketPoint, a proposed 200,000 SF office building.
In Eden Prairie, Liberty Property Trust will begin construction on a 56,000 SF speculative office building called Lake
Smetana Business Center. The project will be one of the first speculative office projects buiit in the Twin Cities with cer-
tification from the U.S. Green Building Council as a Leadership in Energy and Environmental Design (LEED) project. In
Hopkins, Opus Northwest is planning a 600,000 SF office complex for the site of the long-vacant Supervalu warehouse.
Construction will likely begin on the Opus project by Auc�ust regardless of whether or not a tenant has been secured.
Fewer Large Blocks of Space Limit Activity in Airport South of the River
With only 743,239 SF of space available in the Airport South of the River submarket, activity in 1st Quarter 2006 was
steady but not groundbreaking as few large blocks of space are available for significant transactions. Nevertheless, the
submarket saw 17,351 SF of absorption this quarter, bringing vacancy down to 14.75%. New product may be added to the
submarket soon in the form of Bloomington Central Station, a proposed office/retail development being developed by
McGough on a 45 acre site in Bloomington.
Large Tenants Still Finding Concessions in West/Northwest
Despite a negative -12,158 SF of absorption in 1st quarter, the West/Northwest benefits from having a number of large I
tenants in the market looking for space. Consequently, concession packages being offered in this submarket tend to be
more generous than in other areas of the market. After being purchased earlier this year by Connecticut-based Talcott
Realty Investors, Atria Corporate Center in Plymouth landed one of the larger deals this quarter. Medtronic signed a
120,000 SF lease at the 351,000 SF building and will take occupancy during 2nd Quarter.
What's Ahead?
Activity in the Twin Cities office market for the Twin Cities Uffic� iVl�rk�t -[��t���#'�'������r
remainder of 2006 should continue to make pos- ■o�r��tva��9,�Y R���
itive gains. As Class A space in the suburban sub-
markets dwindle into single-digit vacancy, watch ,POyr.
for rates to rise and development to begin to heat fio,o '62s'
,.n3'�
152aic
up. Across the market, there will be pockets of
product that will be aggressively marketed, but �a��
on the whole, concessions should continue to
diminish, rates should rise, and the balance of 8����
negotiating power will begin to tip from tenants
to landlords. a
2001 2002 2003 2004 2005 2�06
I
I
Office Facts 1 st Quarter 2006
Submarket Total SF Direct Sublease %Vacant %Vacant 1st Quarter YTD
Vacant SF Vacant SF Direct W/Sublease Absorption Absorption
AirporUSouth of the River
A 1,533,629 148,147 4,800 9.66% 9.97% 24,055 24,055
B 2,949,971 413,067 67,527 14.00% 16.29% 3,860 3,860
C 553,692 109,698 0 19.81% 19.81% -10,564 -10,564
Totals: 5,037,292 670,912 72,327 13.32% 74.75% 17,351 17,357
Minneapolis CBD
A 13,531,902 1,619,988 397,248 11.97°0 14.91°i� 110,689 110,689
B 8,812,871 1,766,939 34,465 20.05% 20.44% 63,352 63,352
C 3,762,019 479,287 6,989 12.74% 12.93% 69,550 69,550
Totals: 26,106,792 3,866,214 438,702 74.81% 76.49% 243,591 243,591 i
Southwest I
A 6,552,464 616,772 65,804 9.41% 10.42% 11,602 11,602
B 5,194,592 643,690 186,270 12.39°/a 15.98% 100,733 100,733 I�
C 1,048,819 185,384 0 17.68°/a 17,68% 7,393 7,393 I
Totals: 72,795,875 7,445,846 252,074 11.30% 13.27% 719,728 119,728 I'I
St Paul CBD
A 2,128,265 293,548 0 13.79% 13,79% -9,785 -9,785
B 5,801,498 1,345,071 13,034 23.18% 23.41% -20,244 -20,244
C 871,292 132,488 0 15.21 15.21 29,861 29,861
Totals: 8,801,055 1,771,107 13,034 20.12% 20.27% -168 -168 'i
St. Paul Suburban II I
A 1,661,963 134,236 300 8.08% 8.10% 77,200 77,200 �I
6 3,645,211 394,677 33,000 10.83% 11.73% -1,442 -1,442
C 1,153,573 232,469 3,398 20.15% 20.45% -58,247 -58,247
Totals: 6,460,747 761,382 38,698 71.78% 72.35% 17,511 77,517
WesUNorthwest
A 4,531,743 606,712 19,447 13.39% 13.82% 13,179 13,179
B 4,275,571 724,360 12,049 16.94% 17.22% -17,481 -17,481 I
C 803,229 94,518 4,911 11.77% 12.38% -7,856 -7,856 I
Totals: 9,610,543 1,425,590 38,407 14.83% 16.27% -12,158 -12,158
Totai AII Markets Class A: 29,939,966 3,419p03 487,599 11.42% 13.05% 226,940 226,940
Totai AII Markets Class B: 30,679,714 5,287,604 346,345 17.24% 18.36% 128,778 128,778
Total AII Markets Class C: 8,192,624 1,233,844 15,298 15.06% 15.25% 30,137 30,137
MarketTotals: 68,812,304 9,941,051 849,242 14.45% 15.68% 385,855 385,855
f
;i
Geomatrix
May 26, 2006
Mr. Paul Hyde
Chief Executive Of�icer
Real Estate Recycling LLC
9Q Sauth Seventh Street
Suite 4500
Minneapolis, Minnesota 55402
Subject: Northbroak Mall Site
Braolclyn Centez, Minnesata
Dear Paul:
We have reviewed the available informatian regarding the enviroza.rmental issues at ihe
No��thbrook Mall Site. As we discussed at our meeting on May 19, 2006, we have prepazed an
estimate of the volume of im acted soil that patentialiy wauld need to be rnanaged either on-site
P
or off site.
'l
As we discussed, tlie environmental issues at the site are related to two areas. A noxth area was
the former site of a dry cleaner and soil, soil vapor and groundwater are impaated b,y chlorinated
volatile ar�anic coznpounds at concentrations above regula#ory standards, A soufih area was the
former site of'two service statians, which are closed LUST sites. Sail, soil vapc�r and
groun.dwater in ihis area are impacted by pe#roletun hydroca.�bons a# concentrations that
potentially im�ose obligations on a site developer, despite tl�e closed stat�s af'the sites.
Tl�e physiaal facts regarding the site are as The site is underlain by sand to
approxinnately 20 feet, and the depth ta groundwater is approxinnately 1 Q to I4 feet below grotind
surface. Groundwater flaws to the southeast and gi°nundwater impacts from the fornner dry
cleaner have impacted off site praperties. There are off-site soit vapor irnpacfis a1so.
The total volume of impacted soils on the site is approximately 20,000 aubic ya.rds. This
estimate is based an the existing site data and can possibly change.
An effective means to address inapacted soil, soil vapar and groundwater would be to excavate
impacted s�il from the affected areas, to the base of the sand, including groundwater-saturated
sand, and place this soil above the water table. This rnaterial. would be repIaced with clean fill
excavated elsewhere at the site; essentially the two sail volumes would be swapped, The soil
vapor zmpacts would be addressed by placement of' a vapor barrier beneath the footprint of the
planned l OS,000 sf building, MPCA Guidance requires the vapor barrier for management of
p limong A�tn��ic�t��5h� �f�i� eMer SiSay�bo0.�f16��lot;ix com
p�`line a pol�s�l�ienes W ����3 �ax 95293�.1254
Geomatrix
Mr. Paul H,yde
May 26, 2006
Page 2
impacted soil on-site. Specifications for the actuai vapor barrier have not yet been promulga�ed
by tl�e MPCA and may be fortlzcozning.
Th� options for inanaging tl�e contaminated soil include management of the soil on-site or
disposing the soil off=siie and importing soil to the site to malce up for that soil disposed.
Tl�e cost for dispasing soil off�site includes excavation, dewatering, hauling, disposal and import
and placement of new soil. The total cost will be approximately $1,225,00. This cast was
arrived at by looking at the total yolume of soil requiring managernent and tl�e unit rates for
exaavation, Ioading, hauling, tipping fees (disposal as daily landfill cover) bacichauling backfill,
plaeement and compaction, This cost also includes additional engineering related work to
develop an MPCA approved Response Action Plan {RAP), and the contracting, oversight and
reporting necessaiy to irnplemen# the R.AP,.
The cost brealcdawn for the Off-Site option is as follows.
Soil Correction $1,125,000,
Engineering
Pliase T ESA $7,000.00
Site Geotech. Inv �S,Q00,00
I Develap R,AP $1S,Q04.,QQ
Eng. P1ans/Specs/(�ontracting $IS,OOO.QO
SurveyinglSoil Testing $2S,OOO,OQ
Oversight/Rpting $.30,000.00
The cast for the C�n-Site option includes excavation of t�e impactec� soil and placeinent into
specific areas on-site, created by excavating clean soil on-site, .As discussed above, the
management of the contaminated soi3 on-site will also require the construction of a vapor barrier
beneatll the floors of the propased buildings to prevent vapo€ intcusion. The costs for the vapor
barrier lie within a zange tlaat depends on possible pending changes ta the MPCA requiremenfis
for vapor barriers. Our estimate far tize vapor barrier ranges from $1�00 per square foot to $3.50
per square foot of building floor„ Ihe totai costs for this option range fr�orn $G1 S,OOO.aO to
$890,000..00.
The cost for the management of soils On-Site has been arrived at by estirnating the cost as
follows,
Soil Carrection $375,000,00
DL•PiDATA:Project:Pmposuls:Hmong Americnn Sliopping Cente: Site:ph 052G06 doc
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GeAmatrix
Mr. Paul Hyde
I I May 26, 2006
Page 3
I
i Vapor Barrier $lOQ,000.Q0 $375,OQ0.00
Engineezing
Plaase I ESA $7,OOU.00
Site Geotech. Inv $8,000.00
Develop RAP $25,000.00
Engn Plans/Specs/Contracting $25,000.00
Surveying/Soil testing $25,000,00
()versight/Rpting $5Q,000.0�
The pIaiucing, engiuieering, oversight and reporting are necessarily greater for this option due to
more time oi1 site and the added complexity during implementation,
I trust that this cost estimate helps with you planning at this iune. Please don't hesitate to call
with questions.
Sincerely yours,
GEOMATRIX CONSULTANTS,INC.
r
f
Eric Tollefsru P.G. C" tapller Thompson, P,E,
Senior Hydrogeolagisi V'ce President/Principal Engineer
w
A
DEP'1'DATA:Projecr.Proposals:Hmong Amcriaan 5hopping Centcr Site:ph 052606 doc
i
Highway 100 Corporate Center
I. PROJECT COSTS 5/26/2006
I F�ro ect 5ummar�►
Project: Location: Brooklyn Center
Project Type: Office Showroom Site Size: 8.5
I I R.E. Director. G.S.F. Bldg: 99,700 26.93%
Project Manager: R.S.F. Bldg: 99,700 (F.A.R.)
Const. Period in Mos.: 6 Lead Tenants:
I lntemal Loan Rate: 7.50%
�+sc� G�StS
Land S.F. $/S.F. Cost
Land Acquisition: 370,260 X $3 00 $1,110,780
Legal: $10,000
Land Interest: 6 mos. (a� 7.50% $41,654
Extra Soils, testing $10,000
R.E.Taxes Specials: 6 mos. 7.50% $0
Total Land Costs: $1,172,434�
$11.76 �per R.S.F.
Building Unit Unit Price
Base Building: 99,700 X $44.00 $4,386,800
Extraordinary Site Work:
Leasehold Improvements: 99,700 X $25.40 $2,532,380
Gov't Charges: $0
Const.Interest: (c� 7.50% $143,319
Winter Construction: $0
Total Building Costs $7,062,499�
$70.84 �per R.S.F.
Development R.S.F. Per R.S.F. Cost
Commissions: 99,700 X $4.82 $480,386
Advertising/Mkt: $5,000
Legal Fees: $30,000
Contingency: 99,700 X $0.50 $49,850
I• Const Perm Fin Costs $152,873
'I Development Fee: $300,000 3.22%
Lease-Upinterest: $329,010
Oper. Exp. During Lease-Up: $114,655
Lease-Up Income: ($386,961)
Other: $0
Total Develoment Costs $1,074,813�
$10.78 �per R.S.F.
Total Project Costs $9,309,746�
$93.38 �per R.S.F.
NNN Rent C/C
$9.20 9.85%
Highway 100 Corporate Center
II. UNLEVERAGED RETURN
t�utAssumpti�ns
Construction Margin: 0.00% Cap. Rate: Option 1 8.50%
Cost of Sales: 0.00% Option 2 9.00%
Option 3 9.50%
Re�t Prolectfon�;
Lead Tenants
Tenant #1 R.S.F. Rent/RSF/Yr NOI Oo Ex
0 X $0.00 $0 $0
Tenant #2
X $0
Tenant #3
X $0
Tenant #4
X $0
Tenant #5
X $0
Total Lead Tenants: 0 $0 $0
Speculative Space
Remaining Space: 99,700
Lease-up Periods (Mos.): 12
Tax Oper. Exp.(Per Yr): $1.15 Lease-Up Op Exp
R.S.F. Rent/RSF NOI Carrv
Lease 3rd Mos.: 0% 0 X $9.20 $0 $0
Lease 6th Mos.: 50% 49,850 X $9.20 $229,310 $28,664
Lease 9th Mos.: 25% 49,850 X $9.20 $114,655 $14,332
100% Leased: 25% 24,925 X $9.20 $0 $0
124,625 $343,965 $42,996
Parking Income PerYr. Annual
Stalls: X $0
Stabilized Income: $917,240 99,700 X $9.20 11.00 Office
Parking Rent: $0 5.00 WH
Adjusted NOI: $917,240 70% Office
�1t�ll�i9t1 �/alUatiGtn
Cap. Rate: 8.50% 9.00% 9.50%
Capitalized Value: $10,791,059 $10,191,556 $9,655,158
Sales Price/RSF: $108.24 $102.22 $96.84
Total Project Costs: $9,309,746 $9,309,746 $9,309,746
Gross Margin: $1,481,312 $881,809 $345,411
Less Cost of Sales -$161,866 -$152,873 -$144,827
Net Margin: $1,319,447 $728,936 $200,584
Total Company Margin: $1,319,447 $728,936 $200,584
Marqin Percentaqe: 12.23% 7.15% 2.08%
Highway 100 Corporate Center
III. LEVERAGED RETURN
I lntsc�t 1�su�qtic�ns
Loan Information
Loan to Value: 75% Loan To Cost: 80%
Cap Rate for Value: 9.00%
Term of Loan in Yrs: 20
Interest Rate: 7.50%
Cost of Loan: 1.00%
Leveraaed F�4�
I
ROE
Total Project Costs: $9,309,746 Stabilized NOf: $917,240
Loan Costs: 0 Annual Debt Service: $738,922
Adjusted Project Costs: $9,309,746 Debt Cov. Ratio: 1.24
Total Value for Loan $10,191,556 Net After Debt Service: $178,318
Debt: $7,643,667
Hard Equity Required: $1,666,080 Return on Equity: 10.7%
Cash on Cash 9.9%
ROE Including Margin
Total Project Costs: $9,309,746 Stabilized NOI: $917,240
Company Margin: $881,809 Annual Debt Service: $738,922
Costs for Return: $10,191,556 Net After Debt Service: $178,318
Total Value for Loan: $10,191,556
Debt: $7,643,667
Equity Inc. Margin: $2,547,889 ROE Inc. Margin: 7.00%
�:ash FI�►Af#�r pebt Service
Estimated Cumulative Loan
NOI Debt Service Net Cash Balance
Year 1 $917,240 $738,922 $178,318
Year 2 $917,240 $738,922 $356,635
Year 3 $917,240 $738,922 $534,953
Year 4 $917,240 $738,922 $713,271
Year 5 $917,240 $738,922 $891,588
i Year 6 $917,240 $738,922 $1,069,906
Year 7 $917,240 $738,922 $1,248,224
Year 8 $917,240 $738,922 $1,426,542
Year 9 $917,240 $738,922 $1,604,859
Year 10 $917,240 $738,922 $1,783,177
Year 11 $917,240 $738,922 $1,961,495
Year 12 $917,240 $738,922 $2,139,812
Year 13 $917,240 $738,922 $2,318,130
Year 14 $917,240 $738,922 $2,496,448
Year 15 $917,240 $738,922 $2,674,765
Year 16 $917,240 $738,922 $2,853,083
Year 17 $917,240 $738,922 $3,031,401
Year 18 $917,240 $738,922 $3,209,719
Year 19 $917,240 $738,922 $3,388,036
Year 20 $917,240 $738,922 $3,566,354
i�
I;
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Steiner Development, Inc. 1)a��id Kordonowy, President CEO contact
3Cao CoLinty Road io� ��5' 475•Srig phone
Wayzata, 1Vlinnesota 5539r ��i'- 473•7�5� faX
www.steinerdeve�opment.com �IkordonowyCste�inerdevelopment.com
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Steiner
.n�
Development, Inc.
3610 County Road 101
Wayzata, MN 55391
(952)473-5650 Fax (952)473 7058
June 1, 2006
Mr. Brad Hoffman
Community Development Director
City of Brooklyn Center
6301 Shingle Creek Parkway
Brooklyn Center, Minnesota 55430-2199
Re: Logan and 57�' Redevelopment
Request for Proposal
Brooklyn Center, Minnesota
Dear Brad:
Enclosed you will find a response to your request for proposal for the Logan and 57�'
Redevelopment site from Steiner Development, Inc.
The proposed development we are submitting is in concert with the city's spirit and
objectives for the revitalization of this neighborhood. Our development will encompass a
planned unit development with mixed use of housing and neighborhood retail. The proposed
housing will include 67 units, of which 19 will be townhomes and 48 will be flats in a
multistory building. The commercial aspect of the development will provide three distinct
buildings that create a village cluster environment and will anchored by a neighborhood
grocery store.
As a natural transition point from the neighborhoods of the Northbrook area to the
commercial areas of Brookdale, Northbrook Village will provide an inviting gathering place
for the residents of Brooklyn Center.
Sincerely,
ST ER DEV,ELOPMENT, INC.
David L. Kordonowy
President CEO
Enclosuxe
��//9C'i� �i
Steiner
Development, Inc.
TABLE OF CONTENTS I. COVER PAGE 2
2. DESCRIPTION 3
3. IDENTIFICATION 6
4. CAPITAL PRO FORMA 33
5. OPERATING PRO FORMA 34
6. MARKET STUDY 36
7. DESCRIPTION OFTHE PUBLIC BENEFITS 54
8. PROPOSEDTIMEFRAME 56
9. CONSENT FOR RELEASE OF RESPONSE DATA 57
10. OTHER INFORMATION 58
i
City of Brooklyn Center Logan and S�th Redevelopment—z
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Steiner �v°�°°°°
Development, lnc.
I. COVER PAGE
Steiner Development, Inc.
36zo County Road ror
Wayzata, Minnesota S 5 39
www.steinerdevelopment.com
Steiner Development is a Minnesota corporation.
4ziso34oz
3
David Kordonowy, President CEO
95 473•5 phone
9S 473•7 fax
dkordonowy@steinerdevelopment.com
t;
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j
Prima Land, Inc.
280o Maplewood Circle West
Wayzata, Minnesota 5539
Prima Land is a Minnesota corporation (Sub S).
4117g3o56
z6rzsr�
Jim Dowds, President
�12 3zg•4444 phone
95 475•3 fax
jimdowds@att.net
t/�
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City of Brooklyn Center Logan and 57th Redevelopment—z
00 /O//% i oipv
p i i i i i i
Steiner
Development, Inc.
2. DESCRIPTION The best of neighborhoods create a sense of continuity in both the
quality of its street edge and the scale and quality of its buildings.
The integration of these components, when sensitively designed,
contributes to a higher overall quality of life for all individuals in
the neighborhood.
A cohesive neighborhood is sustainable in all aspects. Our proposal
for a mixed-use commercial and residential development addresses
the neighbors to the east of Logan Avenue and to the south of S�th
Avenue. Northbrook Village will integrate a variety of housing
types with neighborhood retail uses. The complex will be oriented
to take full advantage of the visibility, access, and convenience this
site offers for retail, with residential development as a transitional
buffer to the adjacent existing neighborhood.
The scale of the retail buildings will be pedestrian-friendly with a
series of small, one-story buildings. Connections will be created
with walkways to the storefronts, housing, and central pond.
Other ponds on the site will treat water run-off, as well as provide
an amenity and buffer between the commercial and residential
developments. They will be highly landscaped and feature foun-
tains for sound effects to create a memorable theme for the entire
development.
The architecture will have a village character with rich natural-
colored masonry, cornices, awnings, maximum use of storefront
glass, and ornamental light fixtures. There will be outdoor patios
for dining with umbrella tables. These features will provide gath-
ering spaces for the community.
The main thoroughfare and other drive-throughs will be contained
and buffered by landscape features. Signage will adhere to strict
guideline for size, type, and placement. Parking areas will be lim-
ited to small, connected "rooms." Architectural themes, materials,
colors, and landscaping will be cohesive between the retail and
residential components.
The overall master plan will present a charming, pedestrian-friendly
village as an asset to the gateway site for Brooklyn Center.
Ciry of Brooklyn Center Logan and 57th Redevelopment-3
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Steill�l�il" �1�
Development, Inc.
2. DESCRIPTION
The commercial aspect of the development will be housed in three
distinct buildings that create a village cluster environment. The
scale and character of each building will be in keeping with its
individual use.
The main entry to the site will be located on S�th Avenue. Devel-
oped in the form of an arc, this main traffic artery will create a
view corridor that allows visitors to see all three retail buildings
at once and will connect the complex. Two secondary entry points
located on Logan Avenue will connect the development to the
existing neighborhood.
In the southwest corner of the site, the first 53,00o square foot
parcel will house a 4,00o square foot, one-story building with
parking for thirty cars and is planned with an amenity drive-thru
(if needed). The next 48,00o square foot parcel will have an 8,000
square foot, one-story building that features an amenity drop-off
and an outdoor patio. The third r48,soo square foot parcel on the
east side of the site—with a one-story, two-part building (9,zoo
and z 5,65o square feet)—will share its r 86 parking stalls with the
adjacent 8,00o square foot building. A large pond at the center of
the development will provide green space as well as drainage for
storm water run-off.
Parking "rooms" will be broken up into clusters connected with
landscaping, lighting, and sidewalks. These rooms will form an
edge to the north of the site, creating a buffer between Highway
zoo and the new residential neighborhood.
City of Brooklyn Center Logan and S�th Redevelopment-4
Steiner
Development, Inc.���
2. DESCRIPTION
We will continue the existing residential neighborhood adjacent to
the site with a new owner-occupied, multi-family housing pxoject.
The development will be sited to allow open space, green spaces,
and walking paths.
Our team proposes a total of 6� units, within a combination of
both townhomes and condominiums. Located along Logan Avenue,
the townhomes will be of a scale that respects the existing homes,
yet steps up one story to accommodate condominiums above for
owners who want the convenience of one-level living.
We will offer a variety of housing choices to accommodate the
needs of three main groups of home buyers:
Seniors: One-level condominiums will serve the needs of
seniors wishing to remain in the communiry, but not wanting
to continue maintenance on a single-family residence.
Small Families: Townhomes will provide enough space for
small families.
First-time Homebuyers: The combination of both con-
dominiums and townhomes will accommodate first-time
homebuyers.
Units will range from 5 o square feet to z,400 square feet, with park-
ing also provided. Prices will range from $rso,000 to $Z�S,000.
City of Brooklyn Center Logan and S�th Redevelopment-5
%O
/OU
Steiner
Development, Inc.
3. I DENTI FICATI ON The members of our team have previous experience working together
a. Entities and Roles on several development projects similar in scope to yours.
Steiner Development, Inc.
36zo County Road roz
Wayzata, Minnesota 5539
www. steinerdevelopment.com
For over six decades, Steiner Development has offered a full range
Steiner of development, brokerage, construction, properry management,
Development, lnc.
and investment solutions.
As one of the Twin Cities' leading commercial real estate service
companies, Steiner Development manages over 2.3 million square
feet of multi-tenant office, industrial, and commercial property
throughout the Minneapolis-Saint. Paul area.
Steiner Construction Services has experience building every prod-
uct-type, including projects for the retail, industrial, financial,
multi-housing, and hospitality industries.
Steiner Investment and Brokerage Services specialize in leasing,
building sales, and acquisitions.
Steiner Curtiss, P.A.
zorr First Street South, Suite 400
Hopkins, Minnesota 55343
Steiner and Curtiss, P.A., is a Minnesota professional corporation
founded in zy8r by Jerry Steiner and Wynn Curtiss. Both found-
ing members have been licensed and practiced law in the State of
Minnesota for more than twenty-five years.
Mr. Steiner's experience includes: land development, zoning, mu-
nicipal law, and commercial real estate law. He is a certified real
property law specialist by the Minnesota State Bar Association.
Mr. Steiner has represented Steiner Development, Inc., and related
entities in numerous real estate and development transactions.
City of Brooklyn Center Logan and g7th Redevelopment-6
i oi p i� i i o i i i'
Steiner
Development, Inc.
3. IDENTIFICATION
a. Entities and Roles M�field Research, Inc.
6z 5 First Avenue Northeast, Suite 400
Minneapolis, Minnesota 554
Maxfield Research, Inc., is a full service real estate research company
that provides comprehensive real estate market information. We
have more than twenty years of experience in real estate market
feasibility and consult on a variety of real estate related market
issues. Our expertise enables us to offer solutions to the many
challenges that developers and communities face. The relationship
we develop with our clients is a critical component to the success
of our research approach and serves as a source of direction and
information during the development and planning stages.
Our thorough knowledge of market trends in the real estate in-
dustry allows us to support our clients with valuable information
that affects planning and development. We are able to determine
viable solutions to the issues inherent in planning for growth. We
provide research for "smart" development and support the real
estate research needs of a wide range of clients.
U.S. Bank Commercial Real Estate Finance Group
80o Nicollet Mall, BC-MN-H03A
Minneapolis, Minnesota 554
U.S. Bank, in existence for over rso years, is the sixth largest U.S.
financial services holding company in the country (fourth largest
commercial real estate lender), with assets in excess of $ZO9 billion.
The company operates Z,q.3o banking offices and 4,94r ATMs
providing a full line of banking, brokerage, insurance, investment,
mortgage, trust and payment service products to consumers, busi-
nesses, and institutions.
City of Brooklyn Center Logan and S�th Redevelopment-7
Steiner
Development, lnc.
3. IDENTIFICATION
a. Entities and Roles Prima Land, Inc.
280o Maplewood Circle West
Wayzata, Minnesota 5539
PR1MA LAND� INC. Prima Land, Inc., was founded in z99z to perform development
and construction work in Minnesota. The company has received
numerous awards for its development of accessible housing, and
has held City of Minneapolis Affirmative Action Plan Certification.
In the past fourteen years, Prima Land has completed more than
�3 S�000,000 in residential, commercial, and industrial develop-
ment projects in the State of Minnesota.
Frederikson Byron
aoo South Sixth Street, Suite 4000
Minneapolis, Minnesota 5 54
Since z9�8, Larry has practiced with Fredrikson Byron exclu-
sively in the areas of real estate, real estate development, land use,
and construction law. He has been certified by the Minnesota State
Bar Association as a Real Estate Law Specialist, and has served as
a chairman of the Real Property Section of the Hennepin County
Bar Association. Well respected in the real estate communiry, Larry
has earned his reputation as a"problem-solver." His emphasis on
service, attention to detail, and loyalty to his clients has earned
Larry his clients' trust and friendship.
Larry has served as chairman of the Board of Editors of the Min-
nesota Real Property Law Survey, is a former chairman of the
Hennepin County Bar Association's Real Property Section, is a
past member of the State Real Property Law Council, serves on
several Bar Association committees, and frequently lectures in
Continuing Legal Education programs. He has been an adjunct
professor of Real Estate transactions at William Mitchell College
of Law, and a former lecturer in Business Law and Real Property
Law at the University of Minnesota.
City of Brooklyn Center Logan and 57th Redevelopment-8
Steiner °°°°°°�(;;;r;r;;
Development, Inc.
3. IDENTIFICATION
a. Entities and Roles Maxfield Research, Inc.
Please see page for Maxfield Research's contact information
and firm profile.
Marshall BankFirst
zso South Fifth Street, Suite Zyzo
Minneapolis, Minnesota S 54
www.marshall-bank.com
Marshall BankFirst is affiliated with the Marshall Group, a pre-
mier investment bank specializing in the origination, structuring,
and placement and servicing of debt instruments to institutional
investors nationwide. The Marshall Group is regarded as one of
the most innovative providers of multi-family finance. In the past
twenty years, their team of housing professionals has underwritten
more than $5 billion of taxable and tax-exempt securities.
Architectural Consortium, LLC
9or North Third Street, Suite azo
Minneapolis, Minnesota 554oi
Architectural Consortium, LLC, is a full service architectural firm
specializing in creative and unique design solutions for commer-
cial and mixed-use developments. Established in Zoo3, the firm
has developed a diverse portfolio of building types from Lifestyle
centers, grocery-anchored centers, urban in-fill, and renovation of
existing centers. This talented group of architects brings a depth of
experience and a highly regarded reputation for maximizing value
in master planning and architectural design, as well as balancing
the needs of the community, the owner, and the retail industry.
City of Brooklyn Center Logan and S�th Redevelopment-9
�rt
�'�ioo
iiiii°
i�iiimi""�,„
Steiner
Development, Inc.
3. IDENTIFICATION
a. Entities and Roles Meyer, Scherer Rockcastle, Ltd.
�zo South znd Street, �th Floar
Minneapolis, Minnesota 554oi
www.msrltd.com
MSB �R Meyer, Scherer Rockcastle, Ltd., (MS&R) is a Minnesota
corporation founded in z98z by Thomas Meyer, Fnia, Jeffrey
Scherer, Faia, and Garth Rockcastle, FaiA. In addition to the three
founding principals, Jack Poling AIA, serves as the firm's manag
ing principal.
The firm employs fifty individuals in its main office in Minneapolis,
Minnesota. Garth Rockcastle—Dean of the School of Architecture,
Planning, and Preservation at the University of Maryland—leads
the MS&R design studio in Hyattsville, Maryland.
Specializing in architecture and interior design, MS&R has a
reputation for creating exceptional and enduring renewable de-
sign for a diverse mix of building types. The firm works both lo-
cally and nationally and has won more than one hundred design
awards and is frequently featured in major regional and national
publications.
City of Brooklyn Center Logan and 57th Redevelopment—ro
Steiner
Development, tnc.
3. IDENTIFICATION
b. Similar Project Experience Location: Chanhassen, Minnesota
Type: Mixed-use business park
(including retail center, hotel,
F Lifetime Fitness, daycare, offce
showroom, and auto center)
Role: Developer
__4 -..r'at'� Cost: $23,900,000
O '�1:�!!'►`' Funding: US Bank
�1��-
Status: 90% complete
Interest: Fractional
.�.,E..�
,-j� Contact: Bob Generous, Senior Planner
`'l°°""' (952) 227- I 131
rrr„,�'.
Arboretum Business Park is a hori-
eiag :.��q�a
e,d y I zontally mixed-use project in the fast
�0 r
growing suburb of Chanhassen, Min-
�"!��II� nesota. Strategically located at the
Bldg.
intersection of Highway 5 and County
ti,�„� —t s4wKwaL.
m Road 4 r, this project boasts the new-
N i,
�_y est and largest Lifetime Fitness center
C*Lrs in the United States as well as the site
�rr for the future corporate headquarrers
4
of Lifetime Fitness. The retail, hotel,
daycare, and office showroom provide
the necessities of daily life for workers
and residents alike. ABP has been a ten-
year project and plans are in place to
develop remaining available land.
I
City of Brooklyn Center Logan and �7th Kedevelopment—�
Steiner w
Development, Inc.
3. IDENTIFICATION
b. Similar Project Experience Location: Rosemount, Minnesota
Type: Grocery-anchored
4 neighborhood retail center
Role: Developer
Cost: $9,000,000
a� l�r
�+t� v s. a�. Funding; US Bank
�r .4 �t"3r.R+�;,�;.'� i�g'."; �r Status: Complete
a t
l Interest: Fractional
x Contact: Kim Lindquist, Community
Development Director
f �i.�l f n
r-
A
(65 I 322 2020
�.x Rosemount Crossing is a grocery-
e
an.
anchored retail center at the most
visible corner of this quaint "small
town" suburb of Minneapolis/Saint
Paul. ALDI Foods, Starbucks Coffee,
Anytime Fitness, and Rudy's Redeye
Grill, amongst others, have integrated
t"°�
on one cohesive site nestled into the
surrounding neighborhoods. Trail and
4�� sidewalk connections rovide interest-
P
g j► ing and convenient pedestrian access.
aW ��t
�w. The Main Main position provides
a convenient access to the trav lin
i�,'-� g Pu
e b
`k y� �.�"itis lic. The carefully landscaped corner i
���`i� monument feature, with a pond and
w
r �„�,,,...e....� fountain, ex press a state o f tran qui lit y
offered to all who visit.
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City of Bruoklyn Cenrer Logan and 57th Redevelopment—iz
Steiner
Development, tnc.
3. IDENTIFICATION
b. Similar Project Experience Location: Coon Rapids, Minnesota
Type: Neighborhood retail center
(including Starbucks Coffee)
Role: Developer
Cost: $4,500,000
Funding: TCF Bank
Status: Under construdion
Interest: Fractional
Contact: PerryThorvig, City Planning
Consultant, (763) 767-6427
Standing proud on the highly visible
corner of Main Street and Highway ro,
Riverdale Market is a beacon of con-
venience. Lowe's Home Improvement
provides a backdrop of activity to the
wide range of offerings available at this
�'F�. neighborhood retail center. Starbucks
J ��O S�< Coffee, Subway Sandwiches, amongst
6 F others, provide the daily needs of
d residents and visitors to the Riverdale
retail area.
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City of Brooklyn Crnter Logan �nd j7th Redevelopment—�;
PRIMA LAND� INC.
3. IDENTIFICATION
b. Similar Project Experience Location: South Minneapolis
Type: New residential development
Role: Developer
Cost: $8,000,000
Funding: Private owner and
Marshall BankFirst
Status: Complete and now selling
Interest: None
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Citv of Brooklvn Center Logan and j�th Redevelopmen�—iq
PRIMA LAND� INC.
3. IDENTIFICATION
b. Similar Project Experience
Location: South Minneapolis
I Type: New residential development
Role: Developer
Cost: $2,000,000
Funding: Private owner and
r� Marshall BankFirst
C'__ Status: Complete and sold-out
Interest: None
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3. IDENTIFICATION
b. Similar Project Experience Location: Saint Anthony, Minnesota
Type: Mixed-use redevelopment
ir Role: Archited
Contact: Robert C. Muir Company
A Silver Lake Village is a mixed-use rede-
t v e l o p me n t o f a n u n d e r-u t i li z e d exis ting
sixty-acre site previously known as the
4 �"�+�te, Apache Plaza Mall in Saint Anthony.
It is a classic example of how housing,
y h retail, and office can integrate in har-
p�t mony within one development.
I s' 4
s
The retail component is the gateway to
r.
}.f� the entire new community. After three
r�'� ears of lannin the final solution
�."S�` Y P g�
1 �a:�` r s of integrating a Walmart within the
development in order to deliver the
i;,
i �:y s
quaint, small shop retailers that the
community envisioned proved to be
successful.
r
r�
.a�,�=� A Main Street plan was utilized as
the spine to and from t�e housing
development. A central, public park
is the transition that bridges the vil-
r r ,Y lage together. The park includes two
-.'.�,�i•:,�� ,rs�._� large pond features that also provide
the storm water treatment for the
entire sixty acres. Pedestrian elements
�t,�
include walking paths, ornamental
i light fixtures, benches, landscaping, a
a� fountain and waterfall, park shelter,
amphitheatre, significant landscaping,
4 and parking.
I
�v�
The architectural character offers an
I urban/residential flavor and attention
�^.s
to architectural details. The result is a
x
,a���� ,}a� truly integrated mixed-use project that
I
z
offers live, work, and play environ-
ments that the community is proud
to embrace.
T a
t I
City of Brooklyn Cenrer Logan and 57th Redevelopment—i6
3. IDENTIFICATION
b. Similar Project Experience Location: Oakdale, Minnesota
Type: Lifestyle center
Role: Archited
Contact: Robert C. Muir Company
Oakdale Village is a hybrid example
of combining the convenience of a
power center with the amenities of a
lifestyle center. The r 50,00o square
foot center features national retailers
in a unique setting with restaurants
that have outdoor patios overfooking
a highly landscaped pond with creative
sculptures sprinkled throughout the
environment. The freeway visibility
has as much attention to detail as the
front facades. The architecture com-
bines stone and brick and EIFS with
an elegant mix of curved forms, and
backlit tower elements at key corners.
The entry features a dramatic display of
architecturally matching monuments,
pylons, and landscaping.
`r ,;,i; s a„
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City of Brookly� Cenrer Logan and 57th Redevelopment—i7
3. IDENTIFICATION
b. Similar Project Experience Location: Lakeville, Minnesota
Type: Grocery-anchored
neighborhood retail center
Role: Archited
Contact: United Properties
r:
Argonne Village is a grocery-anchored
retail center located in the heart of the
-s_- rapidly growing city of Lakeville, Min-
nesota. Anchored by a flagship, ground-
i up, 7i,000 square foot prototype
I
Rainbow Fresh Store, the development
n�'
'.s.,��:.,.� I hadhighdemandfromamixofnational
4
t y ----r--�'°`-� and local retailers alike. The 3o,soo
square foot adjacent shops feature a
pedestrian-friendly scale and the archi-
tecture reflects a village with a variety
of storefronts for tenant identification
and unique endcap towers.
The project had many challenges,
including the assemblage of a dozen
separate parcels of land for this 35
m
j acre development and the coordination
r--... T and construction of two major roads
t
r,.;�'.` adjacent to the site. The development
;;9�� sits conveniently close to the Interstate
��w�.cs�s 4
35 and County Road So freeway in-
r k
a� b terchange.
i
Argonne Village won the zoos MSCA
STARR Award for Development
Process.
City of Brooklyn Cenrer Lugan and 57th Redevelopment—� R
MSB�R
3. IDENTIFICATION
b. Similar Project Experience Location: Minnetonka, Minnesota
Type: New residential development
'�i Role: Architect
g Cost: $5,000,000 �i
Funding: Private owner
Status: Completed and occupied
Interest: None
This project is the first phase of a three
phase development on five acres of land
I r located north of two existing senior I
t living towers in the first ring suburb of
�t�`��''���� i Minnetonka. This phase includes eight
�1�
rental units, which provide transitional
housing for older adults looking to
F� maintain an active lifestyle while shar-
ing the benefits and services of a senior
F� community.
ij` r�r
��f� Constructed on a budget of i S 5 per
�s'
square foot, the project incorporates
�rl masonry construction inside and out
on the first level to create a series of
1'�.�•'.-_ fi
ti shelteringplanes—or "L" shapes—that
�p ��.c
r 2 R'T,- rovidedurable lowmaintenance and
i P
fire proof living environments. The up-
,�y ��p per levels and roofs playfully reference,
��L� 1���. cf
without copying, the modern and more
r��� iconic residential forms of the surround-
ing suburban homes. Large operable
windows capture specific views and
+i� cross ventilation, and clerestories pro-
vide atmospheric lighting.
Similar to urban loft living, unit layouts
are simple and open (with flexible stor-
age to allow for personal spatial reor-
ganization), and kitchen and bathroom
I
f�
cores are placed efficiently within the
units. Elevator infrastructure is pro- I
I
z vided in each unit, so that occupants
can remain in the unit as their needs I
change.
(:iry ot Brooklyn Cenrer Logan and 57th Redevelopment—�9
MS&R
3. IDENTIFICATION
b. Similar Project Experience Location: Fayette, lowa
Type: New residential development
Role: Architect and interior designer
r ;.1
�1 2
COSt: ,ZSO,OOO
a Funding: Public university
p` Status: Completed and occupied
i Interest: None
Part of the master plan design for Up-
per Iowa University, this residence hall
}T anchors the southern end of the campus.
Located at the end of the main pedes-
trianpaththroughcampus,thebuilding
_f
creates an axis which is terminated
l� visually by its stone stair tower.
--..�k
Consistent with other buildings on I
I �t
r campus, the materials used for the hall
a r�,� include limestone, brick, and copper
1� with white window frames. The build-
ing houses forty-eight students, eight
��s;:` $a students in each of the six apartment-
st le units. Each unit features two suites
Y
�;,�y�.
�'�`r:`,� t� (two bedrooms sharing a bathroom) I
1 y
y
�y that share a common living, dining,
i r and kitchen facility.
s
���'T
��i�� i
I
4:.
I
I
l
I
Citv of Brooklyn Cenrer Logan and S�th Redevelopment—zo
MS&R
3. IDENTIFICATION
b. Similar Project Experience Location: Minneapolis, Minnesota
Type: Adaptive reuse for
new residential development
Role: Architect and interior designer
Cost: $9,000,000
Funding: Private owner
Status: Completed and occupied
Interest: None
��k a�
Like other cities across the United
States, Minneapolis is experiencing an
�'^w�..�„ -�f urban renaissance along its riverfront.
a
i a+# This conversion of a three-story, tim-
i y�" ber-frame, masonry-wall warehouse
into residenual lofts carcies the devel-
�r opment four blocks southwest of the
N t" R river and is the first such project in its
�T
immediate area.
MS&R's design respects the original
building's modest exterior, while
dramatically recasting its form and
function inside. An interior street
i provides secure access and visibility
to all units on the interior, while the
�I
first floor units enjoy the flexibility
T- a of having direct outside street access
�i. to the surroundin g streets and central
i block alley garden. The ground floor
r
units have the capacity to blend both
residential with commercial activities.
The expansive ce�ling heights provide
a .a_= space for mezzanine levels within
most umts, creatmg opportun�ties for
�_-�_..�.m
unit customization to suit different
E
life styles and the mingling of private
F -'7r t r�� and professional functions. To permit
�z
•I flexible adaptations over time, the
T desi n features interior masonr block
-='�s� i g Y
s t
walls, which accommodate structural
l �,':f� adj ustments and isolate sound between
,...r units. A cost-effective infrastructure
����j� of inechanical, plumbing, electrical,
I
phone, and Internet also accommodates
flexibility of use over time.
L-
Ciry of Brooklyn Center Logan and S�th Redevelopment—zi
MS&R
3. IDENTIFICATION
b. Similar Project Experience Location: Saint Paul, Minnesota
Type: Adaptive reuse for
I new residential development
Role: Archited and interior designer
1 Cost: I 6,800,000
Funding: Private owner
i I i�•��, �"f Status: Under construction
I
Interest: None
Located within Saint Paul's historic
���I
1 1 Lowertown neighborhood, this project
I f I i entails the conversion of the Buckbee-
I
II
I Mears (Control Data Corporation)
4ti t i�
�3-�
4► {�.r Office Building and adjacent firehouse
t t ��1' a���� I.
F into residential lofts for a range of mod-
erate to high-end buyers. Developed by
i
property owner GMT Corporanon, it
�r F cc>nsists of seven floors of housing, an
�.I underground parking level, and adja-
iii�=-, ccnt arkin Units ran e in size from
P g g
70o to z,3oo square feet.
r�+-�� I
A deep void hollowed out of the exist-
in�; building creates an interior street,
���hich provides natural light to each
c>f the dwelling units. Unit designs al-
lc�w for maximum flexibility of spatial
c�rganization by concentrating core
��..r
r I functions, thereby also reducing con-
struction costs.
I
,�aT'
City of Brooklyn Center Logan and 57th Redevelopment—zz
Steiner
Development, Inc.
3. IDENTIFICATION
c. KeyTeam Members Steiner Development, Inc.
David Kordonowy started with the company in i98i in both sales
l and property management. He became Director of Sales and Market-
I ing in r985, responsible for lease-up of all new projects, and lease
I renewaUexpansion negotiations with tenants in the company's exist-
ing portfolio. He became a partner in rg89, and has been directly
involved with acquiring over Z.i million square feet of investment
properties, in addition to developing over �Zs,000 square feet of
4 �i�` industrial projects. In i99i David became the COO, responsible
for the da to-da mana ement of marketin leasin ro er
Y Y g g� g� P P tY
management, and general contracting services. Mr. Kordonowy
became President of Steiner Development in August of 1999, and
started Steiner Construction as CEO in Zoo3. David is active in the
International Council of Shopping Centers (ISCS), the Minnesota
Shopping Centers Association (MSCA), the Minnesota Commercial
Association of Realtors (iVINCAR), the Minnesota Chamber of
Commerce, and the Rotary Club of Lake Minnetonka/Excelsior. In
addition he sits on the Board of Directors for both the Minnesota
Construction Association (MCA) and the National Association of
Industrial and Office Properties Minnesota Chapter (NAIOP).
Todd Johnson currently works to secure land for development
in the upper Midwest area for Steiner. He is responsible for new
development projects through each of the contract, entitlements,
construction, and leasing phases. Todd specifically enjoys working
with the many different stakeholders in a project. Each stakeholder
has an interest in making the project a success, and Todd seeks to
put these interests all in sync with each other. Todd is married to
wife Laurie, and has twin daughters Olivia and Sophia and a son,
Roman. Todd enjoys working in his family's home and garden
in what little spare time he has. Todd is an active member of the
Minnesota Shopping Center Association (MSCA), the International
Council of Shopping Centers (ICSC), the Minnesota Commercial
Association of Realtors (MNCAR), and serves on the advisory
board for the Soap Factory Gallery.
Ciry of Bruoklyn Cenrer Logan and �7th Redevelopment—z;
Steiner
Development, Inc.
3. IDENTIFICATION Steiner Development, Inc., (continued)
c. KeyTeam Members
Lisa Diehl, cctt�, CPM� joined the company in Zoos as Director of
Business Development. She is responsible for the development of
new business opportunities in the purchase/sale, lease and devel-
opment of real estate for the company. With more than twenty
years of experience with companies like Opus Corporation and
McDonald's, Lisa brings expertise in the areas of land acquisition,
site selection, development, leasing, retail and property management
to the Steiner Development team. Her diverse background brings a
strong combination of professionalism, enthusiasm and creativity
to each project she undertakes. Lisa is a member of the Minnesota
Shopping Center Association (MSCA) the International Council
of Shopping Centers (ICSC), Minnesota Commercial Association
of Realtors (MNCAR), the National Association of Industrial and
Office Properties (NAIOP) and has earned the prestigious Certified
Commercial Investment Member (CCIM) and Certified Property
Manager (CPM) designations.
Phillip Baum started with the company as president of Steiner
Construction Services in early aoo3 and became partner in Steiner
Development and Steiner Construction in January zoo6. Mr. Baum
has more than thirty-three years of experience in the commercial
construction industry. He has extensive experience in pre-con-
struction and construction of multi-family housing, retail, office,
industrial, municipal, hospitality, and religious facilities. He is a
member of the American Arbitration Association, the Minnesota
Construction Association, the National Association of Industrial
Properties (NAIOP) and Minnesota Shopping Center Association
(MSCA). He also serves on the Advisory Board of the Construction
Management Program and Education Committee at Minnesota
State, Mankato, 1Vlinnesota.
Ciry of Brooklvn Center Logan and 57th Redevelopment—zq
Steiner
Development, Inc.
3. IDENTIFICATION
c. KeyTeam Members Prima Land, Inc.
Jim Dowds founded Prima Land, Inc., in r992. He has more than
twenty-five years of experience in the real estate development and
construction industry. This experience includes single-family, multi-
family, and rehabilitated homes. It also includes commercial and
industrial sites in Minnesota and Wisconsin. Jim holds a Master
of Business Administration from Havard University.
Maxfield Research, Inc.
Mary Bujold, cxE, joined the firm in r984 shortly afrer Maxfield
Research was established. Working initially with multi-family
residential developments, she rapidly expanded her expertise to
include retail analyses and financial institution studies. She is con-
sidered a market expert in the field of residential real estate and
-y in market analysis for financial institutions.
As director of research, she is responsible for overseeing and direct-
ing all research projects for the firm. In addition, she also heads
project assignments for large-scale land use and downtown rede-
velopment studies for private developers and municipalities in the
Twin Cities and throughout the Upper Midwest. Mary has worked
with a wide array of public and private sector clients including
institutional clients. She has worked directly with private develop-
ers and colleges and universities on their short-term and long-term
student housing needs.
A graduate of Marquette University in Business Administration,
Mary also holds a Master of Business Administration from the
University of Minnesota. She is a licensed real estate broker in
the State of Minnesota, and holds the Counselors of Real Estate
designation.
City of Brooklvn Center Logan and 57th Redevelopment—z�
Steiner
Development, tnc.
3. IDENTIFICATION
c. KeyTeam Members Architectural Consortium, LLC
Kathy Anderson, n►n, is the founder and president of Architectural
Consortium, LLC, a full-service architectural firm dedicated to de-
livering high quality service from creative design through construc-
tion documents. She is nationally-recognized in the retail industry
as a creative force in the master planning and design of retail and
mixed-use developments. Her twenty years of experience and tal-
ent as an architect have won numerous design and development
awards in commercial retail projects. Her portfolio includes such
highly-acclaimed projects such as Arbor Lakes in Maple Grove,
Tamarack Village in Woodbury, The Village in Blaine, and Silver
Lake Village.
Kathy received her Bachelor of Architecture from the University of
Minnesota, where she has also taught design courses. She served
as the president of the Minnesota Shopping Center Association
in zoo2, was awarded the AIA Minnesota Young Architect Cita-
tion, and received the City Business "4o under 40" recognition.
She works closely with clients and communities to develop unique
and exciting environments that respond aesthetically, as well as
functionally, to the requirements of the projects.
Citv ot Brooklyn Center Logan and 57th Redevelopment—z6
Steiner
Development, Inc.
3. IDENTIFICATION
c. KeyTeam Members Meyer, Scherer Rockcastle, Ltd.
Jeffrey Scherer, Fn�n, is a founding principal of MS&R and registered
architect with thirty-five years of professional experience, including
residential, commercial, and institutional design. This includes the
design of more than one hundred public and academic libraries
v across the country. As such, Jeff has lead many community-based
design processes and offers extensive insight into working with
public entities and garnering the support of a variety of constituent
groups. For example, his leadership of the design for the new Blair
Library in Fayetteville, Arkansas (named ZooS Thomson Gale/Li-
brary Journal Library of the Year) included conducting a series of
37 public meetings to solicit community input and support.
Jeff also offers extensive multi-unit residential design experience,
which includes projects with our team's sub-developer Prima
Land, such as the i 804 Lake Street Condominiums and Chicago
Avenue Developments in Minneapolis, the Eden Prairie 7i8i
Development, as well as a development in Golden Valley. Other
recent multi-unit residential examples are the AFS Condominiums,
Midway Commons, Raymond and University (mixed-use), and
The Shed developments in Saint Paul, and the zoro Building in
1Vlinneapolis.
With a Bachelor of Architecture with Honors from the University
of Arkansas, Jeff pursued graduate coursework at the Architectural
Association in London. He was elected into the American Institute
of Architects College of Fellows in z998.
I
City uf Br�iaklyn Center Logan and i7th Redevelopment—z�
Steiner
Development, Inc.
3. IDENTIFICATION Meyer, Scherer Rockcastle, Ltd., (continued)
c. KeyTeam Members
Rhys MacPherson is a senior associate and project manager with
MS&R. He offers fifteen years' professional experience, including
acting as project manager for numerous mixed-use and multi-unit
residential developments. Rhys has worked on a wide array of
project rypes including new construction, renovation and expan-
sion projects, and adaptive reuse for institutional, commercial, and
y residential clients. He also provides in-house food service planning
and d i n f r M R r il ro'ects.
es o S& s eta
xi g p 1
Rhys holds of Bachelor of Architecture and Environmental Design
from the Universitv of Minnesota and has been with MS&R since
r99r.
Some specific examples of Rhys' experience include the r 804 Lake
Street Condominiums and Chicago Avenue Developments in Min-
neapolis, the Eden Prairie 7r8i Development, and a development
in Golden Valley, all in collaboration with Prima Land. In addi- i
tion, he has worked on AFS Condominiums, Midway Commons,
Raymond and University (mixed-use), and The Shed in Saint Paul,
and the ioio Building in Minneapolis.
Cit�� of Brooklyn Center Logan and 57th Redevelopment—z8
Steiner
Development, Inc.
3. IDENTIFICATION
d. Additional Information Steiner Development and Prima Land have no history of any liti-
gation or disputes.
David Kordonowy, President CEO
95� 473•S phone
95 473•7a5g fax
dkordonowy@stei nerdevelopment.com
Jim Dowds, President
�1z 32$•4444 phone
95� 475•3� fax
jimdowds@att.net
Steiner Development and Prima Land intend to form a limited
liability corporation to carry out the proposed development.
Please see the following page for a reference letter from U.S. Bank.
Financial statements can also submitted (confidentially to the
Community Development director) upon request.
Please see the following pages for reference letters from Marshall
BankFirst.
Commercial Building License: Not required'�
Residential Building Contractor #ZOO94445
Katlly Anderson, AIA, Principal in Charge
State of Minnesota #z.zz85
Jeffrey Scherer, FAin, Principal in Charge
State of Minnesota #r3o24
"Per City of Brooklyn Center Building Department.
City of Brooklyn Center Logan and 57th Redevelopment—z9
ba n k�
Fivc Star Scrvicc Guarantced
May 30, 2006 I
City of Brooklyn Center I
Department of Community Development
6301 Shingle Creek Parkway
Brooklyn Center, MN 55430 I
To whom it may concern:
Steiner Development, Inc. and its related entities are long-standing and valued clients of
U.S. Bank with our business relationship originating in the late 1970's. Currently we
have aggregate committed lending facilities with the Steiner relationship that most
recently have been in excess of $9,300,000 including two unsecured lending facilities. In
addition, we have an extensive depository relationship with Steiner Development, Inc.
and related entities. It is our intention to continue to strengthen and grow this
relationship.
U.S. Bank is the sixth largest U.S. financial services holding company in the country
(fourth largest commercial real estate lender), with assets in excess of $209 billion. If I
requested, we have the desire and capacity to increase our credit exposure to Steiner to
higher level. It is our opinion that Steiner Development, Inc. has the track record and
management expertise to finance and develop large-scale real estate development
projects.
Due to our strong relationship with Steiner Development, Inc including their key
management personnel and owners, we would welcome any opportunity to further and
deepen our banking relationship, including but not limited to pursuing any new financing
that may arise.
If I can be of further assistance, please do not hesitate to contact me.
Regar�!
I
f L'
Cli-� Bolstad
Vice President Senior Relationship Manager
Commercial Real Estate Lending Division
#612-303-3592
cc Mr. David Kordonowy- Steiner Development, Inc.
Steiner
Development, Inc.
3. IDENTIFICATION
d. Additionallnformation
800.862.6002
!1x 612.3�6.133�
150 SwM FiHh Street
Suite 29�0
MirewapaG; MN 55402
M A R S H A L L
BANKFIRST MARSNALLBANK,N.A.
May 26, 2606
Refcrence: Jim Dowds and Prima Land, Inc.
I Marsha118ank N,A. (thc "Bank'� has had a banking relationship, including loans and
depository accounts, v��ith the above refcreneed customers since 2003. During that time
I the Bank has provided credit in the low sevrn figuros. All accounts have been handled as
agrced and Mr. Dowds and his affiliated companies are held 'm high regard with the
I �ank.
I Please do not hesitate to contact me if I can provide additional information.
Sincerely,
I
G
I Megan G.1�lourning
Vicc Presidcnt
I I�Iarshall $ank N.A.
I 612-376-1454
I mmouming"matshaUbankfirst.com
I
I
I
I
I
Ciry of Brooklyn Center Logan and S�th Redevelopment—; i
Steiner
Development, inc.
3. IDENTIFICATION
d. Additionallnformation
672.376.':500
800 328.6t 22
150 South Fifrn Strrci
Suite 300C
M A R S H A L L Minneapolis, Mf� SSa02
www. mar511aliba nNfi r�t.con
B A N K F I R S T BANKFIRST COMMERCIAL REAL ESTATE
Confidential
May 24, 2006
Mr. .iames Dowds
2500 Maplew•ood Circle W.
Wayr_ata, M':�I 55391
RE: $5,750,000 CONSTRCU'I'IUN FINAIYCItiG
3310 iVICOLLET AVENCJE
MINNEAPOLIS, MN
$206,000 LINE OF CREDIT
PR111�IA LAND, Ih'C.
WAYZATA, MN
$155,000 LI1�E OF CRF.DIT
PRINIA LAND, INC.
WAYZATA, MN
To Whom lt May Concem:
This letter is to confirm that Mr. James Dowds is a client of our banking institution and
has maintained a satisfactory banking relationship with our bank since 2003.
Mr. Dowds financed the above referenced loan throu�h Marshall BankFirst. To date all i
three loans reflect current payment status.
This reference is issued for the interested party, and does not impose any responsibilities I I,
to the bank.
Sincerely, i
l�larshall BankFirst I
I
�vC� �U J(L���L�.
J I
Sean Sjodin
Assistant Vice President
City of Brooklyn Cenrer Logan and j7th Redevelopment—;z
Steiner
Development, Inc.
4. CAPITAL PRO FORMA
Land (8.47 acres $S.00/sf) z,845,000
Development Costs and Site Improvements 965,500
One Commercial/Retail Building (4,00o sf) r,65o,000
Two Retail Buildings'' (32,85o sf) 4�795�
Housing (6� units) $zz,893,000
Project Soft Costs 3,�3z,000
Contingency 39z,000
Total Project Value
I
Includes grocery store.
Equity S�o94�5�� I
Debt $zo,378,000
Total �47 I
III
1. No public assistance is requested.
2. The financial proforma and purchase of the property is con-
tingent on the Buyer:
Obtaining a current Phase II environmental assessment certi-
fied to Buyer.""'
Receiving "no association" and/or "no further action" letters
(as deemed necessary by Buyer and its environmental consul-
tants) from the Minnesota Pollution Control Agency."'''
Seller to pay for all costs associated with the Phase II assessment, as I
well as the "no association/no further action" letters.
City� of Brookl��n Cenrer Logan and 57th Redevelopment-3;
Steiner
Development, lnc.
5. OPERATING PRO FORMA
Electric 6,000
Gas
Water/Sewer zz,656
Trash 8,700
Management Fee 24,480
Insurance 9,840
Telephone Monitor 4�4zz
Snow Removal 42,000
Grounds Contract 33,060
Building Repairs S,zoo
Total Expenses 5 g
Deposit to Reserves i,968
Total Expenses Reserves $i48,326
1. Common area maintenance estimated at $3.00/sf.
2. Reserves estimated at $o.o6/sf.
Ciry� of Brookivn Center Logan and 57th Redevelopment—;4
Steiner
Development, Inc.
5. OPERATING PRO FORMA
Dues $IZ9�o49
Guest Suite 6,000
Total Income
Electric 7,8�6
Gas 24�Sro
Water/Sewer i3,426
Trash 8,040
Management Fee 14�931
Audit/Tax I �43 5
Legal z,000
Insurance 25�g42
Printing/Mail I�435
Telephone Monitor 3,ioz l
CCTV Lease 4,�85 I
Building Repairs 2,87z
Grounds Contract 5�g3g
Grounds Supply 957
Caretaker 8,6 i 4
Cell Phone 957
Total Expenses $zz6,638
Deposit to Reserves 8,4rr
Total Expenses Reserves
City of Brooklyn Cenrer Logan and 57th Redevelopment—; 5
Steiner
Development, lnc.
6. MARKET STUDY
xfi�ld h In�,
R9av 29. 20i►6
�1E�IOR.-�NDUn'I
�O: ti1r..lim I)o�vc1:
Prima Land Inc.
ti9s. Li,a Uichl
Steiner Development
FRt)M: ti�1s. ��1ary C. f3ujold
�latfield Research Inc.
RE: Prcli►ytinar� �tarkct �lsscs,mcnt ti�r Propo;cd Rctail and htultifarnily
Development at 57'�' Street North and Highway 1(x) in Bruoklyn ('enter,
!�1innesc�ta as I'ro�c�sed hy Steinrr Ue�rl��Pment and Prim:i I.and Inc.
Introduction
l l�is memorandum. prepared for Steiner Ue�elopmem and Prima Land lnc. brietly outlines the
markct potcntial f'or multifamily tbr-salc housin�; and ncighlwrhood retail uscs on a
rede�elapmcnt sitc located at �7'�' .A�enue North anJ Hi�hway I(H) in Brooklyn Center,
Atinnesota. The subject site �vas tiinnerly occupied by neighhurhuu� and destination retail uses.
A� such, ue view the site �s appropriate fi�r upgracled nei�hborhood comenience retail uses. To
thr fmmediate east of the tiite are older multifamily huildings (primarily rental). In clo«
pru�imit,y to the Site (within one mile) i, the Shingle Creck Rede�elopment incorporatin€ new
sinzlc-family homcs arid townhomes, a rcdc�clopmcnt that has bccn �cry succcssful.
�iarkct Area Dctinition
4taxtield Rescarcl� Ine. detem�ined the dr,►�v area f��r multit;imily housing on the Site based on
�eo�raphic and man-made b��undaries, commuting patterns, and �ur knowledge of the Bruoklyn
t'cnter arca. Thc dr�w arca (!��tarkct Arca) includcs thc Citics of E�rooklyn C'cntcr. E3rooklyn
Park, ('rystal. O,seo. and Robhinsdale a, well as the portion of Minncapolis north of26`''
:\�enue 1`c�rth.
hl� I' \�i•uuc \I -�-lilli. �luine.:;n��n. �1\ �ialt
Ihl'!l;N (S,I'i'YG.1
n�t�� m:i��i.ldre,c:u,h n�n.
City of Brooklyn Center Logan and 57th Redevelopme�t-36
steiner
Development, inc.
6. MARKET STUDY
ti9r. .lim �)owds. Prima l.and lnc. h9av 29, 2006
h•ls. Lisa viehl, Steiner ve��elopment Pa�,e
Persons ctirrent(y rewiding and working in this geogr�phic area comprise the largest patenti<�I
market 1or for-sale mtiltitamily housing in F�n�klyn ('enter. A map of thc Market ,Area is shmvn
an the follo�ving page.
Population, Houschold and F.mplo}�mcnt CroHth Tnnds and Projections
Tahlr 1 presents population, household, and employment gro�� th trrnds .ind prc�jecti�ns for the
tilarkct Arca from l�)911 tc� 202U. The 1990 and 2000 figures are from tiie C'ensus. while 11�e
201 Q and ?.0?0 projcctions �acrc madc by thc �lctro�x�litan Council. Thc projcctions for thc
Ccr�sus Tract portion of�thc �7arkct ��rca wcrc madc by Maxticld Rcscarch bascci on data
ohtained I'rom the 1•tetreipc�litan Council. The liilluwing are key roint, I'rnm the table.
I3rooklyn Ccnter had 29,172 persons and I I,d30 households in 2000, or lb"o of the'�larket
��rca's papulation (177,239 persons) and houschold basc (66.333 hauscholds).
Rrcx�klyn Center's pc�pulatian inerea�ed by only I°�� (?R$ peorlc► during the 1990s. while
households increased by 2'!a (2114 households). �fhr Remainder of the Market Area's
population. howce�er, inereased by 10"a (13.426 people► and it� households increased by 7"o I
(6,�#�4 houscholds) during thc samc peri�. [n comparison. tlic Mctro .1ma�s population and I
househal�l ba,e gre�v by 15.�3"�, and 16.7°-�. re��cti�ely. during th� 1990y.
Althoueh 13r��nkl`�n Center's population and household growth rate; during the 199Us lagged
be.hind thc Remainder ��f dte Market Area and the ti1etro Area, this does not mean there is a
lack of clemand fi�r hou,ing in Brooklyn C'cntcr. Instcad, it is an indicator of ho�+ Brookl�m
C'enter is fully developed and must rcly on intill �r�eloptttent and;or redetelopment to
inrrease its household buse.
Sincc l�ousrholds riprescnt occupird hou5inc units, houschuld gro«tl� trcnds arc a bcttcr
indicatoe �f hoiuin� �Ic�t�and than p��pulati�,n ;�r� th trrnds.
�IAXFIELU RESE:�RCH INC. (I'repArcd fur titcincr Ue�clopmcnUPrimn Land Inc.)
City of Brooklyn Center Logan and 57th Redevelopment-3�
Steiner
Development, lnc.
6. MARKET STUDY
h1r. .lim Um�cts. Prima Lan�i l)r��I��Pmrnt !�9ay ?`)_'(iU(,
�1�. Li;a L)i�hl, Stcin�r L)c�cloE�ment Pagc
Brookl��n C'enter l�'Iarket Area
P�
Ci. W
l
ii,�le c..ve a F O�;` O Y Sr.:nc wx P.ai:
Nmklrw ILrk
I 8�..•►lyw C'.nsr F �ndler�
1
i
5 1
SI E
y :I
'�d,.��.�.;.H.,�.�
c..,..�
v�.r,.u�n n� �f�.� t I I
I
KaBMia.dile a
SL .�n/M
M:�n.yIb
i
�:i ifi=1: F:e i c F. ;n
E3et��een'(NlU and 201 U, it is forecast the hlarket Area �ti•ill add just o� er 6,(�0 households.
or abciut 2.4�f1 more households than were added during the ly9U�. Thc inerease in
hou5cholds is mastl� attributcd to nc�v housing devclopmcnt in E3rooklyii Park as titicll as
sumc hou,ing rede:�elopmrnt in Brooklyn Centcr and North Alinncapoli�.
�1:1XF7�LD ItESE.-�KCH ItiC.
City of Brooklyn Cencer Loga� and S�th Redevelopment-3R
Steiner
Development, Inc.
6. MARKET STUDY
1�9r. Jim f)otids. Prima Land f)r�elc�pment 1�1ay ?tNlf�
!�4.. Li;a Ui�hl. Stcincr l)c�clopmcnt Nagra
horth !�tinncapolis and L3rooklyn Park arc pru�rrt�J to add thc gr�atc.t numbrr of huusinc
units in thc Market Area. E3y 2U10, Brooklyn Park is expcctcd tu add a�i estimated �.00O
houschc7l�is (incrcasing by l6"-0) and Nonh lvfinncapolis is pr��jcctccl to add an ��dc�iti�7r�al
1.OSE1 households (an increase ofnearly !i°,�).
Projectin�, fiirther into the future be.tween 2(111) an�i 211211, thc h1arkct :'ir�a i� fortrast to
inrrcasc its pupulation by 5.4";, or roughl� 10,?�(I pci�plc to a total population ut,just undcr
?0�,00O. Houscholds ar� expccted to inrrca�c t�� .ih��ut ?R.000. un incrcasc ot' S,=170
househiilits nr
T \HI F I
P��PI I\ I I�)♦ .\�U IIUI �k IIUI U GNI IN I11 I HF \U� \\U PHUJF'C I IU\�
flRMll:l.l V E���f:R �I \HAF.1� \RF..�
1'WII lu :11211
C�A�qf!r
<�cn.n. Yroicelbn 14WI In .(NM) ?OIXI �n 21q0 I ?010 to 20?II
IYWI 20d1 ZBIII 2020 Vn. Pc�. �n. Pct. \E�. Pcl.
Pupulatioa
Hr,�n�lyeCcn�cr `ti.RR? u i ���.;�Hi tn.tiHl I u :'a I I I.ixni
KCn'. n� \��f�.Cl ;�R'� I i{ (rl� 1�\ Ilr�' W.:i�MJ �h4/141 1 i.��h I I.'t i '.4 ._`II <`I
I Tatal 163.i?R I??.T.4 IR93t10 199550 13.?II A.J L'.1i61 fi.R{' 16.250 5.a�
!1.-n•wT`inl.�unn IIVi�1tl I.IIh7F� I..`�iv:U ��n�l�u %i.'9y �..';rr %R 4h,Oril1 'H
'-1 ount� �1c�ru Arca _.'9%.'Z9 2.t.1: utn ,_r,J�rli o,{:pJi�n I i.J :I�JNa 15.' 1tl1U I'.?
Hnuxholds
Iir,mlhn( cmci I I`.__ I I 3it� I i n��i ''�xi ]u I!� �'u �ini 4
Rcn:. ol 1�1;ukrt �1rca j f.{sv 5.{,9Ui un.5`Nl o� ry��l i..{ j1 r>,? R� 1 0'U J
TtHal 6:.p7S fi(.ji3 i?.i+Xl 7'.AI+� i.6�R S.R h.6i' n.l' I 5.A7f1 ?.0;
Ik•n�x�['inl�rlm[� d14,I1M) a•h"y tIW91Ml 5511,.1h11 i?.Ilh�! xK ah.""I III' JY,ShII Yti
'-lnun:}\1c[fo�ArCS 3?i.jfH I!i'_ilia �.?IitilMl L3%A?INl 144<1jp Ifi.T 1`Y?.i.{6 �K.S I".a1N1 1-1'
F mplo��mcn�
rirouklri=icn�ri I".�l�l±� Infivq IS.ISIi IR.scu -il) .la I1:? R? 1i1i7
Rcm.olil�:krtAre;� �Ii.t25 d-V.?i5 t5.186 56.H16 4.i1! I�•1 IU.�i�FB 23.� 1.?JQ
Tu[al 57.331 61A:1 7t.3i6 75.176 4JOM1 7.? I1.404 14.J� 2.IJ�l 4�
llemx�±inCoimh "}.lil< .i5h.%.i6 •�1.4.�•Hi I.IUS,M1In Iti,?�} IK.� tt!Ui� I)._ _�'_il
'-touniy�lczro.�r�a LP'J'i L+G}.245 I.«I��.n��� :ini]I�.�n _�r•�.4'. `��..i:; In.l �.ti'.�un I(�.(�
�n,r cc.�. 4 ti. l�rnsux. \1c4�;p�:�Lten t�� 11:i�e��ld R�•..rar�h I:i.
It iti impc�rtant to notr that 13ruokl} n Ccntcr hu. thr put�ntial tu gain murc houseliolds than
�vhat is pr�jectcd thou�h ?0?0. Hou�chol�l incrcascs ill be a direct result of the ability to
n►akc sit�; a� ail�bl� ii�r ncw housing dc� clupmcnt.
�1:1tF�It;LU ItESk:.�RCH 11C.
City uf Brooklyn Center Logan and j7th Redevelopment—;y
Steiner
Development, Inc.
6. MARKET STUDY
h1r..lim [)c�ti�ds_ f'rima I.and [)evelopminl hlay 21H1(�
^1�. Li.a l)ichl. Stein�:r �)e�cic�pment Page 5
I
I
7 hc Market Area etiE�eri�nred a n�t increase ot about 4.IU0 jobs or I°i� rf0\L'(I7 CIUf111L II1C la:t
decade. Co�npared to t lennepin County and the Metro Are��, the rate of employment gro« th I
��as well behind their rates of growth. which ticrc 19"o and 23"a, respccti�cly.
f)uring the current clecade, howcver. cmplayment gro�vth in the h9.irket Area is projrctcd to
outdistance bnth f lennepin Caunty and the �1etm Area with an increatie of nearly I?.O(HI joh�
or 19°
A�e Distribuli<yn of the PnE�ul�ti��n
The age distrihution ofthe population rclatr: thr nnr c,t housim, ncccled in a gi�en
communitv. Youn�er and older persons are more attrart�d to higher density I�ousing locateel
near urhan ,ervices and entertainmenr, middle-aged persom Iparticul�rly tho�e with childrenl
prefcr lo�ver-density sin�;le-famil_y homes. Table 2 prescnts thc agc distribution of thc Vtarl.et
,1rca's population frottf thc 1990 and ?fHN) ('cn,u,. and projcctcd to 2010. The tablc ,ho�i s[hc
number ol� person, and the percent of the Exipulation in eight age categurie,.
•�1ith a location near the hcart of a retail district, thc Site �ti ill appeal mo�tiv to the.
rnultilamily housi�ig riiarkct. Whilc multifamily hc>usin� appcals to �xrson� uf mo�t azcs, it
mo,t otten appeals ti> younger and older households. The Site's primary appeal will b� �u
young singles and cc�uples �the ages 2S to 34 cohort), middle-age househ��lds withuut
children Ithe ages 35 to =l4 cohort►, and empty ne�ten anci �enion (age: and older).
i,�H�.e. z
u:H r�i�TRiRt ric�ti
BR(HIKLl C F:\'I'F:R \I:�ItKF� ;'►Rk::i
19911 to 211111
Chan�e
����tlti �F�+rCi;�.l I i990 ?INNI
;1Ke Group 1990 2UW 201U \u. Pr1. Vo. Pct.
UnJrr Ix 4?.?>+ �I).[xl� G_"3' '?51 t?.0 ??i4 �3.�
12�to2� IS'JI_' I>.�I[ri I`�.IU� 5? (Ii 2.131 11.�3
�Sto;�l 3a,{5� ?R.560 2R.'3' -�.9y5 -I?.3 -313 -I.1
t5 t".{.� 2G,?ql 30.161 ?6.657 �.4?(1 19.? -i,5(14 -1 I.(
.�5 i�, 5.} 1-i,741 2_'.-t13 27.266 '.h?: 52.0 -1.R53 21
SSt��(,:� I;,111 I_'.?i0 17,f,5�) -FiRI -n.? 5.429 J-1.-i
6?to?J 10.1�4 9.3tr1 9, -?4iI -?.S 41d -{.3
?Sando�er ',OS' R.S{9 9.ilJ 11!{? 'I f) R05 9.-1
Total 1F3,�?A 1?7.Z39 IR9.3f111 I?.'ll R_4 I?.Obf b.R
lpureec. l:S C'en.u:, lari�a., Ine.: Maxfield Re,�.uch Inc.
During thc 199t)s, voungcr bahy-hoonurs (thosc agcs ?5 tu ;4 in 1990) a�rd into �hcir micl-
30ti to eurly-4Qs, Ciielii�� a high Ir�el �,f drman�i fi�r u��nershir huu,in�. particularly singlr-
�1,1XFIELU ItESE.aKCH I\('.
Ciry of Brooklyn Cenrer Logan and �7th Redevelopment-4o
Steiner
Development, Inc.
6. MARKET STUDY
�1r. Jim [)owds. Prima I.and De�eli�Pment '41u} �'f►(16
\1:. Lisa Diehl. Stcin�r lh�ctopment f'age 6
family homes since many persons in this group hace children. h9eamtihile, older bah}-
boamers (those ages 35 to 45 in 199(1► aged into their mid-�1(ls to early-50s. This trend has
tucled d�nzand for alternati�e h�using op[ions, particularly� t����nhome,, because many olcicr
adult; are opting to doansizc fr��m singlc-family homcs �uc to dccrcasing,pacc nccds an�l
other litcstylc changcs. During thc coming dccadc, a lar�c proportion of thr h:+hy-h��oit�
will agc into their Sps and 60s. This trend will lea� to ��rn �,rr;urr �Icinanei li>r
�,���Itifamily housing, es�cially one-level owner-cxcupied units.
I he ti4arkct Arca's population consistcd of 50,(x)S �rsons undcr a�r I in _'11UU, ur abuut
'y°�, of thc total population. This group is kno�vn as thc ccho-boorn, thc children of bah�-
buomers. The f irst echo-boomers staned aging into their early 20s durink the late-1990..
l he ciemand f��r entry•-le��el rentaf housing iti projected to ii�crease during the next ten y�ar,
,is the number of echo boomers in their 20s grows. I lo��e�er. �ve hat�e begun ta see an
increase in the number of newlv formed households m��� ine into the f�r-sale market. In
�iddition, thc inri�fcnrc �,f rcho hiwm�r, rcn�:iinin�� :�t h�imc ���ith thcir ��arcnt� has alu� h��un
tu incr�:u�
Household I��cnmc
��OUSef10�� II1C0111C'. 11.t1�1 �l���l� ,!>iCt�i;illl lfl� ��CIIi.Ui�i I��' ��Iil�tClll I�(1�'> ��AAIl�'il ;117t� I�lll�:t.;
I�ousin� based on the size ot the ►narket at specific co,t le��els. ln �eneral, housing co,[� u?
30'?i, c�f incomc am considcred affi�rdablc hy thc Dcpanmcnt of Housing and iJrban Dc��l-
opmenl (HUD). Table 3 shawti househuld incomes in ?00� �nd 200t) liir the Market Ar�:=_
Hc�usehold income data was compiled by ('laritas, Inc. fa nation.311y recogni�ed demc��r,iE�hs�
firn�) .inc1 adjt�;tr�i h� '�1,i�firl�i It,���;irrb In; t�� r, }1.�,�t ,�urrrnr h��ti;��h��l�.i ti� f�nr
h9arket Arc:�
e nlul..r�� li,u-,�li���l,`. ii.�� i,: �_�r \I 'iiti-1 _lini _,I I�� h�_ I
com�ari;un. thr �I�U'�� Arra malaan in 'UU-1 �raz ���),Ilar
•,'1s;u�ning housing costs absorb 3040 ofgross incomc, a!����. ��i;� ;J ,,u:��:�� �.I;: '!!�i- �I,. I,�i
.Aria mcdian houschnld income (552,378► could at7i�r� a n►a.�inwm �►�cmthly rc�rt ul ahniu
S 1,300 (including rrnt, utilities, and garage parkin�;1 or a maximum purchase price cif ab+�.ii
S I 3p,OQt) to'S I 57,00O �based on rurcha�ing a h�imc rriced at 2.5 to 1.0 time� their inccm�. i
I lou:eholds ages ?5 to 34 are typically in the rental market or emry-le�el for-sale market -»hi� I,
is ottcn a multifamily unit. Thcir rncdian incomc in 2004 was about 551,5p0. �4 ith this inco[nr.
a houschold could afti�rd a rnonthly rcnt of S1,2901including rcnt. utilitic,, and gara�c parkingt
ni� in;i�.i!i��nri ��ur�li,i•� E�rir�� ��I�;ih«ut �1 nUl� t� C! 11(lf) Ih.�.��t nn 1�� ;�l tiiaic�
�I 1\t IF.LI) IlI.SF, U{( H I\('.
Ciry of Brooklyn Center Logan and 57th Redevelopment-4
Steiner
Development, lnc.
6. MARKET STUDY
�1r. .lim f)�n�cl�. Prima I ;ini1 [)rccliirment �1a} ?lll)f�
�1s. Li,a I)irhl, tite�n�r L)c�rluE�mrnt Pa �c
iABLF. i
HO1 tiF:NOI.D 1\CO�1F Hl AGF, UF HOt tiEHOI.UE:R
BROOKLt'V CF.\7 ER )I:�NhE 1 �RF.A
(\umher of Households)
21N/i 8 24(IY
A�e of Householder
Tntal 15-24 2c-3a ,{5_q.� q�-54 5S_6J 65 -7q 75+
200J
Lc»lh:�nSl�.IlOU 6.20? -t1+? �)94 `)`)1 ??S �40 ?99 I.±�?
j I S.00Q l0 524.949 6.2�') 61 R 99� I.113? 6?-1 �K? Li79 1.3�!t
5'i3O00 to S3�t.� &.d60 573 I.7b5 I.70R 1.30h 975 96I I.I"
ti±S,l)l)(l tu Sd4.4y�) I l.li3� 677 '_.774 2.}StS4 I,yKK 1.315 I.l!i(� I.11ll�
h�I1,00iltob'3.499 16.25? 541 i,(rJ-3 -1.5�3 3.SIR 2.i53 1.11-� Sh�3
M?5,111)fl t<� 1i99.999 9,969 151 I,R7� �,9f14 2,R?5 1.449 51(} 2$}t
y 1(l0.U111) or murc 9.64y 169 I.d60 2.572 3,345 I.�ZS 36l '66
Total 6R.i5G 3,<?R 1i,509 I(i.6ti 13.-t3�1 K,'95 S,KII (,.l)46
�\4edian Income 552.378 531.054 551.524 559,2� S67.S57 559,X77 S3R.355 S27.IW?�
�T�rinC�itirc;4l.�fro $�9.O46 KtJ.9/1R ��K,IIIU >hb �'9 h7/,.Y4J q(�5,1!? �45.1)hd �il.N��1� i
I 2009
I e�c d,:�n 51 S.noo 5.r,�i I 757 R35 R3n I I bo� ?23 1.2? I
til S.Illlll to S_'a.4Ny i,��? 5y6 ?K5 il15 t,?U �i'_ 1{0?i 1.3H1
5?5.01)I) lu Si4.9')') '.128 �ii i 1.3(N 1.2?4 9?N $83 ��3 I J99
5t5,tl00 to 539,999 12.'_6S 7(�7 ?.577 '_.61R '.Oii I.�?_' I.'_9? 1.341
5iU.1)Ill) to S'�3.9Uy 1�.9(}fi hK I 3.4�a 1,4$9 3.?7!i �.�347 I?H; '�4
ti?�A00 tu S')N.')�)9 IU.')j6 213 2.162 iAOi 2.84? 1. i48
w I 1H1,11111) or more 1�.333 Zt5 ?.3q5 3.(,3 y.h(,:1 2.�326 t,�1-1 4115
Tatal ?1,7h4 3.R4? 13.d?3 16.1'i li,1-11 10,_'38 6.319 6.f�a9
'tilcdian Incotn� 558,335 $34.7�1 558,�51 865.911 S'�4.>45 �G5,2R2 543.3v5 S31.1126,
�7't�ii�C'itirs:tilrn•u Shb.i?6 Siy.y�Yi J61.4.J_' S'd._'llh J��'l.�l_' S??.?'�l 5il.XJ(1 5?R.i"�
Change 'Od-'09
�Lr,.thun5l>.Ol)0 -6-" -4-' -I>`� -It -61i li -13�i
I S.IIUII tu �-3.999 I I 11 -55 -7? -46
�;'S,1)I111toSi�l.y99 •1.3�4 111 •�I(�I -4id •i2? -9(1 •5K 2f�
ti lS 1)UO !u S4').'>�>�1 42�) �>1 -201 -21 I -l5 'S6 I 10 3i4
Stiu,l)oU to S'4.y99 -351 140 -1911 -Sfrl -240 14�3 17D 190
1'5,01)U to S`19.999 9:i7 h I ?90 9�) 2? i 3 I S2 89
ti I11(1.01)0 ur nx�rr �.635 76 �i4-i I.11?3 1.319 `)OI 'K' IJO
Totai 3.n?8 ±13 -S6 -a60 ;Ob I.d�i? �qS 60;
��ledian Incomc $5.4$7 $3,GSN 57.227 $6.617 �6.98R $S.d05 55.(kll $3.979�
Sourccs: ['I;�ntas, in�.: �t:ixli�ld Rcscarch tnc.
�1AXF'IELU ItESk:ANCH INC.
City of Brooklyn Cenrer Logan and �7th Redevelopment-4z
Steiner
Development, lnc. I
6. MARKET STUDY
�1r. Jim �)owds. Prima Land f)cveloPmcnt '�1ay ?9, 2f10f�
h1.. Lisa Uiehl, titeincr L)evelopment Page 8
iheir incc.ime toward f��r-sale hoGising�. Rent�rs typically ha�e income� less than the mcdian,
ho«•e�er, and most would not be able to af�'ord rents of `+1,300 per month.
f{ouseholds in thc 25 ti� 34 age �roup are prc�jected to decline hy a little les; than -I°4� (or -R6
households) tx�t�veen 2U04 an� 2009. Demand tiir rental housing is expected to increase
�lightly ho��•ever, as households ages 15 to 24, are projected to increase hy 314 h��useholds.
I)emand for for-sale townhomes is projected to increa�e as households ages 55 to (i4, gmw
b� 1.4�2 houscholds uver thc next fi�c years. I louseholds agc;s 15 to 24 are generally in the
niarkct for afti�rdabl� rcntal housing, �vhile houschuldcrs agrs SS to frl arc �;enerally in the
markct for modcratc and highcr-priccd for-salc tcn� nhomcs.
"I'enure b� Age of Nouscholdcr
l able shows the numbcr of o�� ner and renter hou,ehoW� in the Market Area by age group in
19y0 and 2000. This data is uscful in drt�r�uining dcmand for ccrtain typcs uf housin� sincc
housing prctcrenccs chan�:r throu�,hout an in�ividual's lifc cycic. Kcy points dcri�cd Irom thc
table �re:
fhe propensity of households to own their housing increases the older the householder until
about age 70 w hen a higher proportion of households be�ein to consider maintenance-free
rcntal living or maintcnancc-frcc o« ncd housing. cithcr as a lifcstylc dccision or bccause
thcin c�alth dictatcs a movc to a community that pro� idcs support scrviccs.
although the median age of householders is getting older in the h1arket Area, the pr�pensity
to o�� n is increasine. The overall rate of homeownership incrcased from 71 percent in 199O
ro nearl�� 73 percent in 2lN)0. 1 his is due to a variety of reasons, such as a lack of new rental
product, a focus on f�r-salc product for nr�a in-till dcvclopmcnt and loe� mortgagc intcrest
ratcs cnticing many rcntal houscholds into homcowncrship.
The chart below clearly displays ho�v the increa�r in the number of households betw•een 1990
ai�d 2l}OU was mostly limited to homeoHmers bet�veen the age� of 35 and 54. '1'his would
sug�,est that most of the new� housing product built durin� this time in the M�rket Area was
prohahly cntry-Icvcl and rno�c-up owncr-occupicd homcs, rithcr singlc-family or
multifattiily.
i
11:1XFIk;LI) Ii�:SE::�I2CN INC.
i
City of Brooklyn Cenrer Logan and 57th Redevelopment-43
I
Steiner
Development, Inc.
6. MARKET STUDY
ti1r. Jim nowds. Pnma l.and f)evelarmrnt �tay'9, 2pOh
!�4s. Li:a L)iehl. Stcinrr L)c��lopment NaYc 9
7:1BI.F. J
fE\l RE Bl :\GF. OF HI)t SF:HOLDER
BR(�KLI Ck:V'TF.R 11ARf►E'i ANf:
1990 21HI(I
1990 2000 ChxnKc
10. Pct. Vo. Pct. \n.
I S ta 24
1.� n.'. �,a`) /,5' i°,� 9U9 ?$I)
ft�i�trr �.y�ll h?9 -512
25 lu id
Otirnrr IQ125 h0.2"� 8.734 I� I/"„ -1.591
Renlcr 6,815 5,120 -I,F95
?G to 4�i
t)�� ��i r I I. I`� I i,l l�)�) `li �l•', 1.9�{G
R�ntcr ?�)R ;,�);5 637
JS to 54
Ow•ner 7,130 X4.!"� IO.R30 x� 3,700
Remer 1,348 2,34ti 998
i5 �a 6�1
O��nCr 6.z�K ,1'I� l°,� f,.11�)U �v� -J9K
Rcntcr I,U6' I.I �5 hR
6S tu 74
Uwner $.4)6 R?,9'!,� �1,9$7 N4 6"„ -�i79
Rent�r 1,120 831 -289
7c
u��n�� 1?-l�l h' 3.u?�) 'r R1[
Rcntrr I."I l,b:y SR
'Cotai
(�tivnrr �i4.539 7!. l 48.6NH �1"<, 4,163
Renter 1 R,140 17,f+35 -505
\letro Area hR.O"�� i I.0°i�
tiour��s: l! 5('�nsus: \1c�rar��hlan (�iunril: �Ia�Eicld R��rarch Inc
I
�IAXF'IELU RESE.�RCH INC.
City of Brooklyn Center Logan and S�th Redevelopment-44
Steiner
Development, Inc.
6. MARKET STUDY
ti9r. Jfm [)owds. Prima l.and f)c�clapmrnt h1a} _'Ul)f�
ti9s. Lisa L)iehl, Striner L)evrlopment I'ae� 10
i
i
Renter Owner Households by Age of Houscholder
Brooklyn Center hiarket Area, 200(1
I
i
o
I
�NX�
�N:i.i.i� iil+•ni I
I�:1.�1�11 �!f �..i i _�:�I�I I
p MINYI
C I
J
e fi.fll�l I
J.�NII
`.illr'
I�ti�'_! ;I 1:.� c[;��.i�l n .,�'l c
1pe Group
I
I
Home Kesales I
Tablc 5 sho�vs resalc data ti,r ,in��lc-famil� and mulufamily homc, in thc L3rooklyn Ccntcr I
1�9arkct Arca. Thc resalc data was ohtaincd from thc Mctro .nrc:�'s R9ultiplc Listing Scrvicr I
(Vonhstar'�1LS). The data is J�resented li�r earh Market Area community and shows the numb�r
of tiales, average salr price and �►cerage time nn the market. nata ti>r multifamily homes includcs
all to�vnhome. twinhome. cooperative and condominium sales.
I�able S shows diat the average resale price of sin�le-family hoi��es in the Market ,Arca through
20U5 was about S2O6A00. This a�cragc pricc is balanccd around Minncapolis' lo�► avcragc
resale price of $160,O00 and Brooklyn Park's high average resale price of $251,000. The
housing stcick in thr hlinneapolis portion of the Market Area is much older and the homes tend i
to be smaller than ne�►•cr homcs in thc suhurhan �rtion of thc Markct Arca. Com•e�sel}'.
E;rookl� n Park contains the only portion of the Market Area �+hem significant amounts of neH
home cunstruction hacc occurrrd within the last ten years. Th�refore, thcse newer, larger, and
more cxpcnsi�c humcs skc�v thc a�cragc pricr up��ard. Thc rcmaining Markct �1rca
iommunitics, including Brouklyn ('rntrr. hacl a�rra��r res�l� priccs c,f�brt��rrn 5199?00 an� i
S20?.2�0 as of the end of 200�.
Overall, single-family homes in the �larkct :4rca ha�c hrrn appreciating at aboui K"�� to �1°��
annually. l��vo results of strong appreciation are I) many younger houscholds may be pricrJ out
nf thc singlc-farnily homc markct and will choosc morc afti�rdably priccd fi�r-salc. townhomc�
and cun�ominiums, and') m�n�• cmpty-ncstrrs and re�irccs �aill havc suhstantial eyuity in thrir
exi;ting h�mi�s that th�y can all�icatc tii��:ird thr �urrh:�,c ufa nr�� to���nhurrn.
�tAXF1ELU RESE:112CH 11C.
Citv of Brooklyn Center Logan and 57th Redevelopment-45
steiner
Development, Inc.
6. MARKET STUDY
R9r. _lim [}awcis. Prima I.and f)e�elorment hlay ?9,'?006
ti1c. Lisa L)i�hl. Stein�r l)evcli�pment Pagr 1 I
The single-famih housing resale data in the Tabl� helP, a�certain the ability of existing residants
to sell their homes and purchase townhomes or condominiums. r� portion of tlie market for for-
sale multifamily hausing is empty-nesters and retired persons. Most of thesc households have
signiticant equity in existing homes that they can use dollar fi�r dc�llar to rurrhase new for-sale
multitamily homes. It should bc notcd that most of thcsc ol�cr buycr, prcicr to cno+c "latcrally"
into a home that can he purchased outright with the procceds from the sale of their single-family
home.
r �ni a s
��utu•: Kr:ti:u.F.ti
NR�N)1�1 F.�IF:N �I�RKF1 �KF..�
?IIII: fhrnuQh ?IIO�
\u. u( \16�. ♦u. n( \II.�. \n. uf l�y�. \161. \o. of �IAL �I
Cihr111 1 Uidrict \ales I'ricc 1 inx• �ylca Pricc I inn tinlc� f'ricc fimr Salc. I'ricc �I imc
Single-Famih Homes
Hr�w�Al�nC��nt�i 3�1 Slhl.'IJ �9 iT% SI?�!M7' i2 JKI St!t?.7?0 i6 JIR 52fM1.Ri3 J6
B�ik�klyn ParA SI�/111X �I I fWll Yi2y.3A4 33 9K7 52?5.2i3 34 q76 SZSLZI}3 5p
C rti>lal lt�! SI65.t-1' 1N} 51'k.911h 10 JI I SI€c4.007 31 1%? 5199.)Si 3� i
Rs�binufalc _'Til Slh'�1" :I _'RN SIlf?.iii(� _"h SI�N.016 _�I S2U'.I2+a �5
i NimhlGnneepolii �U'. 5123�1�1�i J` .716 SIJ?.�_'= �IS �i1N1 SISdJhO 4' itil SIS'.?8? M�
1�larkct 1rca�lotal '.-l:6 S�Kx 11 '_.MIS SIMI.S,A iU ?.554 J1'M.hS% i� 2.-IU8 SZI�.t?X 5i1 I�
�IuflifamiK liomec
BriwAl�nCcnitr 1� Sliilli? ip 'I )I��.I't� t�� 6? Sld'.II� ay hl $ISll.bhh SS
f3nK,A!}nParA }_'I Slii.tt9? 'g iRl �I;'1)'h 1] ihU SI`_'.IF11 �i 111 515'!7`H) SR
n�stal SISM1UI" Sh 1 t )I%�.SUi �il I I S18_'.ShR lq 14 Slwl.4Mi 9J �I
I fLtlhhlnalul� II t'i._'': SS 111 1'%.V'll 91 SI?�.511_' c• SIM1%.'Kf. �)5 I
\a,ns� A1:rnr.�P�,li, n �.�;.+��7 1. �I ti>na Si I�L�U� 6�Y I ��!.I(f" ;i.
lL�irAc' 1•�•.i lo•.il "N ti:v; a'> ♦li: '�1 Ji� �'vi.l��" �1�'� SI`J."��.
��.�..r,�r� \tinr�cai b.�:i 1..��c.:ici���i �•r \1.nl��;d K....� In.
I
Tablr alsu hiuhli�t�ts Iw�ti tl�c nunihcr ul runcluminiuni tu��nhumc rc:�lc, in thr �1arkrt ,�rra i;
much smallrr con�p�red to the number ol�,inglc-tamily humcs resalcs. Rrsales of conduminium
,and townhomes accounted fi>r only atxiut 14"4� of thr o�erall housing sale� in the '�9arket Area,
and less than 6"�� of dze o�•erall housing sales, when subtractine 13rookly Park from the analysi�.
Che tilark�t Area �uas nearly fully de�eloped with single-family homes before the development
of townhomcs bcgan to acccicratc. Curmntly, data tiom thc Mctropolitan C'ouncil sho�vs that thc
numbcr of townhomcs bcin� dcvel���s�:d annually in thc Twin Citics is approaching thc samc
1«el as single-family homes.
The a� erage resale price of condominium� townhomes in the Mxrket Area was about S I SS,U{111
as of the end of 200�. "I�his lo�ver price it primarily due to the fact that the ma_jority of
multifamily iuut� sold arc �igniticantly ;mallcr than ;in�lc-family humrs and they oftcn do not I
�13XF7ELl) ItESE:�ItCH INC.
City of Brooklyn Center Lo�;an and S7th Redevelopment-46
I
Steiner
Development, [nc.
6. MARKET STUDY
�9r. .lim Do��d;. Prima Lan�i [)r�eliirmrnt '�9a� '9, ?011(�
\9,. Lisa Dichl. Steiner De�cloE,mcnt Paee l� I
I
I
fe��ture the types i�t arnenities ti�und in single-t:�mily homes, except in the ne��est multifamilv I
product. Also, the condominium tmits tend to he oldcr in a��era�e age and ha�e often hee�i
comersic�ns fro�Ti existing a�artrnent huil�iin��:. l hi� t} ��irallti result� in a lo��er a�era�_c re��31r
pricr.
Cansumer F.��enditurr Pattcrns
fables b ancl 7 shows c�n�umer expenditures ti�r rctail guods and sen�ices for the Markzt .Area in
2U05 and 2l)IU. acc��r�in� to data ohtained trom C'laritas, Inc. T'he follo���ing are ke�� pnints from
thc c�nsumcr cxpcnditurc data.
Market Area consumers spend approtiimately I. I billicm per ye e�n the retail gc�ods and
senices show�n in d�e table (this excludes hou�ing, insunnce, health care, lodeing. and
education). .A�era��e annual rkpenditure: are r;timate�i to he �lh.�ll i per capita and Sd?.6?�
per houscltold.
Of'the categories of retail itrm. in I;ihl� h, th�rr ;�rr ;uh-ratcgori�s in urd�r to placr
emphasis on the categories that �vould be associatrd with dle subject development. I he
proposed development �vould focus on ot�tering primarily neighborhood-oriented retail goods
and ,cn iccs that would mcrt likcly scll itcros grou�cd in thc f oud :1��ay I�rom Hornc.
Pcrsonal Scr4 ices anci Entcrt ainmcnt sub
ti�useholds in the �4arket rlrea spent an average of $5,103 annually on Food Away from
l lotne or S2,U62 per capita.
The itrms that exhihit the greatest percentage of consumer expenditures compared to the
Metro Area are F'ood nl Hnnu� (groceriesl and f�'n��d ,Itirui� /i Ilr�mc� (restaurants), Perscanal
C'am Sertiices,'I�obacco Products, Prescription l)nigs, Child Care, and other househ�ld items.
In geniral. these iterns are considcred ncighbonc�x�d-oriented goods and services, tho,t
�+fiich �ittract shuppcn in rclativc closc proximity to thcir placc of resid�ncc c�r husincss.
1�1 `hen compared to the "I�win Cities ?�7etro Area, the a�•erage expenditure by ?��arket Area
households is generaUy some��•hat loa�cr than the Metm Area as a whole. A Percent of
N1ctro Average" higher than I.00 �vould indicatr that households in the ytarket Area sEx;nd
marc than thc avcragc T�vin Citics' houschold on any gia�cn pr�iuct.
In addition to relatively household growth in the '�1arket Area and the fact that households
�pend the majarity of their consumer dollars on food at homc and foal away from home.
there exists a strong market for the food and srr� icc husinesses that ��ould potentially be
associaicd with thc subjcct dc�clopmrnt.
�I;�tF'IELU It�:St:�FtCH INC.
City of Brooklyn Center Logan and j�th Redevelopment-47
Steiner
Development, Inc.
6. MARKET STUDY
R�ir..lim Dow•ds. Prima I_an�l [)r�cl�,rmrnt 41ay 2�). 2Q0(�
�is. Lisa viehl. Steiner l)evelopmcnt Pace 13
r�t:i t:�
H(Il tiF:HOLU ESPM:\UI1l RF:ti RY �F:LE('ff'D PK1)Ul C l Tl'PF;
BRUUhI_l ('F..\ I'F:R �I.\NhF:I' �1{F.
211t15
Annual Exnendhures
Total \+r�.iee \�ern¢C hl�irke[ Int1e�
C:u�•g<�n �\INNI'.1 P�r 111I P�rCap�P.i to �Ietro
Food xt Hume 143,02a g,3i2 2,062 0.98
f�nod :\Nay from Hnmc 136.851 S.IIIJ 1,973 11.92
Vcuhulic Be�era�;rs at Home 2�,317 9Jg 365 0.62
�Ucnholic Bererages aNa� from Home II,138 353 17S 11.88
Personal Care Products 2e,11411 q3d 361 0.9-1
Personal F:�penK� and ticrcices 39.RIa I.SRS 47J II.kS
Cmo6in�; PrudaiSupplics 22,A20 SS(1 329 1.04
Prexcription UruRs 56,916 2.121 %21 0.99
Dx� Care 101.82i 3.79� I.a68 10.07
Ippdro'f !!+.l�U' -1,'��' l,fii�ti O:e-
Nousrkt�cpinK tiupplic� 8.750 326 126 I).96
Ib�uarhuLl Ti nt1� �,Vh� :.'�J Yh Il i i
F�u��i7it�u�r 'l._'_'S -'yl i0h lI_�\'3
Vulor.ippli��n�i�c 9._'4j i.�6 1?J 0.93
timall:�pplfancec111oureNarc 18.6SN 6�K 269 I).87
�iisc. Huuschnld t:yuip. 1�J1[ gg7 227 0.92
TE ku.�tu ci 5'uun�lEquipmriu J.r J�� !.h'U' 69y ll.,v.t'
tiporl+ and Rccrc�linn i8,I1R11 I,i20 S•t9 0.85
ReadinK Aiaterials IJ,SJ1 cS3 21A 0.86
1)�arr; 7'r�t�� l.i�v�/ sa1 0_��3
7';u,t„�;r,rpl�,rliqi,rpr�rrrrr 2,,�15 IJ3 )i U�v-
t'ei F�apemcs 12,9111 JAI 186 I).93
Cur�.ind Tnickc N:•�� �tj.OiR 3.Ih�) I.�'t� [�.$S
i'artand'Inirks•t!xd (,'.�J' '.±ai 9U(, il.yi
�twuline ancl hlolur (lil tb.R i I 1.7'-1 �31 fl,�)'
1'chicic M19ainlenan.c Rcpair .3b.a111 �,'zt frt+4 0.91
Tn�a! l,11J.6A1 J?,h?' 1h.503
tiei�hMirhnod (�oodx �c tierriees A72,712 2�.U$2 9,699
S/�nppin�%Speciult�'Gii��d.v Senvrrs 210.N1t R.4'N .i.l?:
KoIA itemr re(Iect neighbnrhood-nriented }�aodc and vrr�9ec�
ll:rhrrrc'J t�rnz. ��.•Ilrc elt������r�iZ c��ri.�rulrr �,n�ds �rnJ .<•r��t< a�a
tio�irr:; (lanta..ln:
Sl.ixtieid Itc,e:irel, l�tr.
�1�1\F'I�LU RESk:.�RCH I'�C.
Ciry of Brooklyn Center Logan and �7th Redevelopment-48
Steiner
Development, Inc.
6. MARKET STUDY
�ir. .lim f)�i�c�i,. Prima I.and f)c�elnpm<nt '�1a} ?UI1(,
�1.. Li>a U�chl. Stcincr U��clupment I'ace I�
r �Ki.F:
Hlll SF11OI.D F:SPF:\DI'l 1 REti Rl �FJ F:( 1'M:D PK(1D1 71 PN.
RROOKI.I f FVTF.N �I �RAF.T �RE
2010
Annuai F.�penditurea
Total 1��iagc ���ragr M1larketlnJrt
Catrcon tSolnl'si Pcr HII Pcr Capita io Atctrn
Foad a� Honm 161,068 :,745 2,225 IIAB
t'ood :�N a� from Home I Vi,%2J 5.667 2,19� 11.91
Ucohnlic Berera�ec at Hnmr 2M.OA7 I,IIIR 3Nti IIA2
�Icuholic Bc�errgcs aNr� frnm Homc 1�.2fil �OS 197 II.S7
Pcr+onal Cxre Producis i11,766 1.09A 425 0.93
Personai k:apenses and tier�ices J9J32 1.773 687 0.83
tinxikin�; I'rod�rtiupplics 2b.20i 93�J 362 I.W
Priwription I)rug+ 99,971 3,567 I i81 11.9R
lh�p Carc 156,I�64 5 5g5 2,167 12.J6
.1�rr�w'rl /?S.'jl a.�w'�i f.h'i II.,Y'/�
Houukrepfnk tiupplies 11,36t d06 157 11.95
!/a��seJ+ol�! Fcrtdec '.n'i N16 r) t�
��i�rrNlrlrC ?.I.X7ll XNR ?.�i U,XI
V�11��� .�I(r���i�Ul<r.� 10.N/�_' 7hU l f41 D.97
ti�rwll AppBanceslllquscN�rc 21,2I11 75(� 29} II.AS
11isc. Hou�cholJ F.y��ip. IR.S32 662 2�6 11.91
TI kU�(iu c@ SuU/NI FyUipntCn( A0. hh !h i �Y i.1' U.,1'�V
tipurts and Recreation 49,GIg 1,766 6!�{ II.fGi
Iteadin� 1laterials Ih,071 S72 222 II.MS
1'nn�e•� J".,1'iU !.'t!' b61 O.h'-
!'d�,u,�ru�,/ri, /i<jrripiuent d.lv�i l,t'/ :,S U Yh
Pel Frpences 16.6�0 g9a 23D 11.92
(��r� and I rucks ne��� 4d.iV? 3.ihR 1.3(1�l n.R?
l �n and 1'rucks L,e� N I.;_" '_.896 1.12'_ 0 91
i:o,olnx and Alutur I)il 52,1F1$ I.KC�) ?!y D.96
rhiclr A9amtrnance'Rrpa�r ih; )71 ',0?? ?8? 0.90
Torul I,J31, 51.l81 l9.R2O
`ci�;hbnrhuod (:�wds tierriccs R�4.125 311.bi; 11.8673
ShoppLi�%S�x•ciulh• C,�anJs dc Sen•ic•rs 191,(108 10.341 J.(J�(I
Bold ilcros reflect nci�;hburhrx�d-orirnlcd gM�ds and cer�icez
1r�ifi� i=rd urrns r rJh•r� �li��p��uiL y�� ial�r-urien��'il krNx/v und �<•n'rrr�
tiuu��r,. l'larua,.in�.
Alaa�ield Re.�•.ircl� In,
�I,�tF'IE:LU It�SE::�KCH Iti('.
City of Brooklyn Cenrer Logan and 57th Redevelopment-4y
Steiner
Development, ►nc.
6. MARKET STUDY
R9r. .lim �)owds, f'nma l.and C)��eloPmcnt h9ay 29, ?DO(�
�41,. Li.a l)i�hl. Stcincr L)evclopmrnt E'aec I S
Ftctail Centers
A hrief revie�� of retail shnpping renier� in thc Markri Arca and ti�eu.ing on L3rociklyn Centcr
rev,ealcd that. etcludine Bnx�kdale, sh�,�,ping eentcrs whuse tenant mix is predominandy
ncighborh�x�d and cor��cnicncc oricntcd in charactcr had thc lo��cst vacancy ratcs amonL
neighbonc�x�d-orientc�l an�1 cunuiiunitv ccntrr, hi�h ar� I�rzcr in ,yuarc �iwtage :�nd tenil t��
ha�•e mure sofl go��ds.
Current lease rates for neighbo� :ho�ping cenurs in the Market Area range trom a
l�w of $B.UU per squarc fuot to a high uf I tS.l)tl �irr ,yu.irc tiiut ur �omcwhat hichcr tor nc�v
construction spacc tar�cting fast lood uscr..
There is a contiiderable amount of retail s�ar� a�.�ilahlc in th� !�9arkrt ilhin tr:�diticmal stri�
cc nter develo�ment. Currently, we are seeing a preterence among many national chains for pad
.ites and:`or outlot develapment. rUthough most chain� prefer to own their sites, ground leases
arr bccoming morc common as land valuc� risc and o�+ncrs arc trying to rcducc thcir tax burdcn
on capital gains_
1'reliminar Retail Demand Calculations
I able h presents preliminary retail demand calculatic�ns for neighborhood-oriented goods a�id
�cr� iccs at thc subjcct Sitc. Thc tablc ,hows a calculation for gro�vth in rctail c�penditures and
thc transla�ion of that gro�th to thc nccd for additional rctail squarc footagc.
('urcently, we estimate that ahout 30"�� of�all neightx�nc�iod-oriented ��urchases occur at facilities
outside of thz �•larket Area. l3y ?1110, we project that �vith ne��• retail of�erings in the Market
:�rea, the amount of leakage would be reduced. Therefore, gro���th in retail expenditures is
expected to translate to pc�tential demand for an��ther S I.0 million square feet of retail spacc in
thc A4arkct �1rca to 2OIb. .ns such, �vc projcct that thc subjcct sitc ��ould bc ablc ro capturc a
poriion of this dcmand. At 5°%,, tive estimate through this prclimin�ry analysis, there «�ould be
rotential dcmand for approximately �3,0OQ syuare f'eet of spacc.
Lease rates should be commensurate �+ith new constniction in the surrounding h9arket Area. 1�"e
rec�tnmcnd that you consider leasc rates of hen�een �+I6.OU and S?U.00 per square ti�ot. Pad
sitcs n�ay br o�vncr-occupicd.
�tA\F'It:L.I) It�Sk::�ItCH INC.
City of L�rooklyn Cenrer Logan and 57th Redevelopment-5o
Steiner
Development, Inc.
6. MARKET STUDY
Mr. .lim I)owds. Prima l.and I)c�ciciPment h9ay ?UII(�
!41,. Lisa (.)ichl. Steiner L)cvcloEimcnt Nage 16
i �Ki.t x
PHk.l.l�ll\:1K1 UF.)1.1\Il Fl)R �f.l(:fIB11KH(KlU RF: 1\II. 1P 1('F. I
RRI1<)f�l.l'\ C'F:1"I f:R �I �RI�F:I :�RF:.\
201K l0 211111
21111i 2010
�IoOuence Area Purc�uin�; Po�er i
Inllurr,ri:ltrafl�tt,.chultL. h�l,i�,' -'.i�n)
rt:nk.l :�nnual \righhurho�l-On�n0.�1 t:xpcnduures r �_'S.08_' $31l.h��
iryiwil.)Touil4l:irkri \rcaFaprndiwm S1,7i9.?l',fiR; S?1IR.391,:iu
i� :�rr�� Leakage Out.ide the �1arl�et :1rea i(Y"o
�.y.ials) Lrakage lYUtsidc of �larkct Arra SS'_I.9? 1.305 $45q.�U',x8�
icytwlsl 1 Pw�ch.itime PoH�rr SI?17.816.7?'1 $1.66i,79i.Gb;
lJi� idcd b� 1:1���ra�c ,ak. prr Sy F 1 S_'S11 �_'ti1i
�cyualx) Tntal Retyil tipacc I�mand (tiy. FL) J,R71,266 �,942,120
iNetail Demyad Potential
21M� to 2010
Itilail �o.tc�' Ucn'i;lnd (������IP� LO?11_'�5�
ihmr,i :\n;nunt l u tu:aM�� bv suhjcit �it�
Dems�d for Retail�pace Captunbie b� sabJect 5ke (in sq. ft.) 53.St3
i F�:luding c��ndittuci tor reh�.lcs.
I I.•;iAacr u euual tu �hr rshmated artwiunl ol rrlail Jollan .petu uutcidr �he Markri \rr;i
I.timatcd baxd on Jata from Uollars and Ccnts �f Shooum C'cn�rr.. l rhan I and In.ti�w.
tiuurcc..
U�dlars and Cro�, ot Shumm�.� Centen. l rhan l.and In:titutr.
\1aVirld R;•.rarch In:
For-Sale HousinQ Demand
Table 9 shows uur preliminar} calcul<uiun tiir liir-salr housing un thc subject Sitr. The tablr
shows that gi�en law mort�;age interest rates, the majurity of'the Jemand in th� short-tenn ��ill
be for for-sale housing. F.mpty-ncsters and seniors desiring to transition from their single-family
homes is a strong potential market se�ment as are mid-age singles and couples desiring to move-
up from their existing homes in the area and are looking for a reasonahly affordable aption. Ve��
townhomcs in E3rooklyn Park and North h7inncapolis ha�c pro�cn tiurcc,stiil in thc arca at pricc
puints that arr �rncrall� thc hi�hr,t in thcir nci�hhc�rh�wd.
�1:�XFIELI) KESk;:�KCH 11C.
(;iry of Brooklyn Center Logan and S7th Redevelopment—j
Steiner
Development, Inc.
6. MARKET STUDY
Mr. .lim [)c�wds, ('rima I.and Inc. hlav ?9, 2006
h1,. Lisa biehl. 5teincr L)evelopment Pace i'
I \NLF: Y
PRt] IVIV �RY PROJF:("I'F.D DE\11]D FON \Il7.Tlt �\III.\ HOISISG I
Rlt�►(11�1.1\(F'�fFRN1RhF'1 \Rf.� i
:INI� lu 21110
Prn�cclru .^.r�� h,ru.mc .�:�.il d_rn:md Irwu hou.ch��l.l _�u��lh. _`ix�i lu _uln I� l,it_�i
i
Fur-Salc Rcnlal
i'.m:.r,Il.,umateJ:lcuuudtv�ruurc �ilP��� �r.�
�:yuals) Pro�atcd Nsrkct Ana dcmand fnr nc�� hoa.mg umc. 2A_'? ��u��
��in>c.if:stimatrJ�xr.rntofmuhitamil}univ (,0°„ liNS�,
,ryu.d.i P .tu�:� ir.r� iirm.m.l tir �'�c« muliiLimd� h,�u.�n�.� .;��:i. I.Ji. t�ltf�
i
i
Cundu lo��nh��nic
I*.m�.c.i I.umu�:d p.°r:cni �m'. hF h��ti. JO� 6U°..
�ryu.d.� I'ro�Rtrd �tsrkct Arca JcmanJ tix unia by typc <x? 1t';
v
�.:ucc.l [sUttuttctil �xrccnt .ur��rtablr on thr ,uhjcn Sitc x 1!I' I i" i°„ I D".; i
�lcquals) Estimrted k of units sununnablc on th� uibicn Si�e, 2(M)5 ro 2010 58 87 I4 -70 61 73
�nu:.c \laeficld R v:anh Irn.
Th� current plan priiPu.�s I y fiir-sale tci�cnh�im�s ,inJ -l�+ cimdominiums. V4'e beli��e, giv�n our
preliminary analv�is, that l,' units fall �rithin thc t��tal� iclrntitied thrciugh this rreliminary
analvsis.
Wc recommcn�l that th� mi.� h� torusr� �rim�irily on t�.��-bcdroum uni�s ith thrcr-bcdruum
slylcs also ollcrcd. Pricin� shuul� bc kr�t nw�irratr �1'c rcrumnun� basr pricing ol�hch�crn
S?60,000 an�l S3CN1.000 }xr unit at this lorati�m.
�lAXF7ELD KESE:�RCH INC. (Pmpnrrd for Stcincr I)c�rlopmcntlNrima L:�nd Inc.)
City of Brooklyn Center Logan and S�th Redevelopment—Sz
Steiner
Development, Inc.
6. MARKET STUDY I
I I
i�
ti�1r. .lirn I)o�vds. f'rim:� I,and f)c�cln�mcnt �9a� 'y �011(�
�1,. Li>a L)i�hl, Sirin�r l)�ticluEimrnt 1'a�c IR
I
Our initial revi��� oPthe site plan and proposed uses ti�r the property suggest there is a�trcmg
s�•ncrg}� hetwecn the housin�* and retail rom�nents. �1'r note that the initial �ite rlan tak�� I
maYimum advantage of ��isibilit� ,�nd ,itc line, tn ma_µ�r thoroughfarr; tc, aaract higher �,n,tile I
rctailcrs to Ihc propertv. I
II'VOU ha�e yue�tiuns or nc��l a��itiunal infimiiatiun. rl�asr cuntact mr. l i
tiincerely.
?�1AXFIELU RL•:SEARCII IhC'. �I
I
V C
I
!�9�ry C. Bujold
Pre,ident
�I �\F�Ik:LI) K�:SE:�RCH I\C.
Ciry of Brooklyn Cenrer Logan and 57th Redevelopment-53
Steiner
Development, Inc.
7. DESCRIPTION OFTHE
PUBLIC BENEFITS As a natural transition point from the existing residential neigh-
borhoods of Northbrook to the commercial areas of Brookdale,
our proposed Northbrook Village provides an inviting gathering
place for the residents of Brooklyn Center. Pedestrian connections
invite interactivity between neighbors; benches and open space near
sparkling water create the opportunity to strengthen personal ties.
Sip on a cup of coffee or casually browse offerings from interesting
shops just steps from your home.
The commercial vision for Northbrook Village will include two
individual pad sites, anchored by a grocery store and retail center.
The 4,00o square foot freestanding commercial building is located
near the new entrance to the development. An 8,00o square foot
multi-use building with one drop-off and outdoor courtyard seat-
ing will be adjacent to the commercial building. The center will
be anchored by a r S,65o square foot neighborhood grocer and
approximately 9,ZOO square foot of neighborhood retail uses. The
design of each building will compliment the village and the resi-
dential component and will be integrated with pedestrian friendly
walkways. The design of the village is intended to compliment the
existing neighborhood.
Greater Brooklyn Center will benefit from the highly visible project
on this important corner of the city. Successful redevelopment of
this site will encourage others to initiate new ventures nearby. The
increase in property value on the redevelopment site should carry
over to the neighborhoods surrounding Northbrook Village.
Wouldn't it be nice to live, work, and play in your existing neigh-
borhood? Northhrook Village provides that opportunity.
(:ity of Brooklyn Center Logan and �7th Redevelopment—S4
Steiner I
Development, inc.
7. DESCRIPTION OFTHE
PUBLIC BENEFITS The addition of attractive housing extends the existing residential
neighborhood from the east and offers a new variety of housing
options within a mixed-use community setting.
Our proposed housing options include both townhomes and condo-
miniums in a range of prices to fit the income of current Brooklyn
Center residents. These choices reflect a range of markets, including
first-time home buyers, small families, middle age residents, and
seniors who desire maintenance-free living. The market range will
enable current senior-age Brooklyn Center residents to sell their
single-family homes to younger families, and remain living in the
community.
The land purchase for this development will return a large portion
of the City's initial investment. During construction, hundreds of
prevailing wage jobs will be available and purchases from local
merchants will increase with the construction activity. Finally,
the City of Brooklyn Center will benefit from an increase of over
$r6,000,000 in tax base.
Citv of Brooklyn Center Logan and j7th Redevelopment-55
Steiner
Development, Inc.
8. PROPOSEDTIMEFRAME
Proposals due
Review/evaluate proposals; recommendation to City Council
Discussion and final action on exclusive development rights
Final development plans approved by City of Brooklyn Center
Break ground for construction
Delivery of completed retail space and housing
Ciro ��f Brooklcn Center Logan and S7th Redevelopment—�6
Steiner
Development, inc.
9. CONSENT FOR RELEASE
OF RESPONSE DATA
Ln�-,�r� t3n�15rtIiR�+�lc�:�_�lupmcnt
�-��.I�il� t
Fori�n of Consent tor (.ele��s,e ��i I�:c,;��unse [)at�i
June oi 2006
City of Brooklyn Center I
Department of Community Developi7�ent
6301 Shingle Creek Parkway
Brooklyn Center, MN 55430-2199
Re: Logan and 57th Redevelo�ment ___Request for Proposals
Consent for Release of Response D�ta
David Kordonowy, President CEO on behalf of
Steiner Dev_el_opme_nt�_Inc. hereby consents to the rele�se of its
development proposal in response to the
Lo�an and �Zth Redevelopment Reyuest for Proposals
and waives any claims it may have under Minnesota Statutes
Section 13.08 against the City of Brooklyn Center for making such
information public.
V ��U [.f'/1 �+`l v�.��
I
David Kordonowy, President CEO
3 City of Brooklyn Center
City of Brooklyn Cenrer Logan and 57th Redevelopment-57
Steiner
Development, lnc.
10. OTHER INFORMATION
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I 9TE PLAN
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VILLAGE GREEN URBAN RESIDENTIAL
City of Arooklyn Cenrer Logan and 57th Redevelopment-58
Steiner
Development, Inc.
10. OTHER INFORMATION 1
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Ciry of Brooklyn Center Lugan and 57th Redevelopment-59
Steiner
Development, lnc.
10. OTHER INFORMATION
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Steiner
Development, lnc.
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Citv of Brooklyn Center Logan :ind S�th Rede��rlupmcnr—� i
Steiner
Development, Inc.
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