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Home My WebLink About1979/06/26 - ADMIN - Minutes - City Council - Joint---�`'�. d � , 1. 2. c r.TY Gall to Order Roll Call MINUT�S COUNCIL/liOUSING AND R��ESOT�A ENT ST. LOUIS PARK, MI June 26, 1979 The meeting was called to Councilman Hanks at 7:04 AUTHORITY order by p.m. The following Councilmen were present at roll call: Martha Elstrom Keith Meland Ronald Backes Lyle Hanks John Ralles Jerrold Martin The following Housing Authority Commissioners were present at roll call: James Heltzer Thomas Williams Joel Glotter Also present were the City Manager, Renewal Development. 3. Hotel Proposal Executive Directvr and Director of Excelsior Boulevard - Solicitation of offers for development of a hotel at approximately 5200 Excelsior Boulevard. The Executive Director explained that in April of 1979, it was agreed by the Council and Authority that the water tower site should be advertised to prospective developers in the form of an off ering and invitation for proposals to develop the 5.6 acre site with a ttotel. An advertisement was placed in local newspapers and the Construction Bulletin. The copies of the advertisement and an offering brochure were sent to persons known to have an interest or possible interest in hotel development; approxi- mately 25 copies of the sets were mailed. The Executive Director continued that no proposals were received; however, written responses were submitted indicating management interest if d evelopment occurred. He further explained the City may generate additional interest, if a new project feasibility study was ptepsred and made available to prospective developers. The Renewal Development Directo: described action taken by staff to solicit interest in development of a hotel and summarized three responses submitted b ote ti y p n al developers. He explained the current financial market is not conducive to this type development and reiterated the need for a market analysis and f easibility study to attract develop- ment int r t e es . -180- City Council/� �inutes, June 26, 1979 Commissioner Heltzer explained comments received from developers regarding the need for a market study without a desire to finance such a study may indicate insufficient interest on behalf of the developers. If the City were to order preparation of a market analysis and feasibility study through a consultant, it would likely follow general specifications and may not result in a document which would address the particular concerns of a specific developer; it would likely be found unacceptable. He suggested if it were a desirable development, a prospective developer would likely not hesitate at assuming the cost. Following discussion, it was moved by Commissioner Glotter, seconded by. Commissioner Heltzer, to retain the option of developing a hotel on this site and concurrently solicit other development proposals. Councilman Elstrom suggested at a 250-unit first-class hotel may be an overly optimistic proposal, and the City should consider a small, less intense development. In response, the Renewal Development Director explained a smaller hotel would probably not produce sufficient tax increment to make the project feasible. Phillip Eder, explained the analysis study shopping area. representing the Excelsior Boulevard Advisory Committee, Committee unanimously supports preparation of a market f or a hotel. which would include the entire Lilac Way Following further discussion, the motion passed 9-0. It was moved by Commissioner Williams, seconded by Councilman Elstrom, that staff be directed to assemble additional information regarding the economic feasibility of development at this site, pursue preparation of a development and financial plan for the entire area which would also take into consideration development of other than a hotel at this site, and prepare a general marketing plan and appropriate brochures for all vacant or under-t�tilized parcels on Excelsior Boulevard. The motion passed 9-0. 4. Cherne Proposal Excelsior Boulevard - Midland Bank/Office Building, Cherne contract for redevelopment. Commissioner Glotter explained this matter was tabled by the Housing Authority as it resulted in delay of development in the District and was felt that inadequate communication existed between the City Council and the Authority and all other parties involved in this particular proposal. He said without total agreement on all development issues, problems may arise in the future; it was suggested that Cherne's f inancial bankers be requested to meet with the C�ty Council and Housing Authority. Commissioner existence of Heltzer expressed concern regarding the continued sufficient financial support. � � r / -i N City Council/HRA minutes, June 26, 1979 Commissioner Glotter stated Chat hs Letteruofn�ntent�whichdhadnbeen act to approve the extension of t e 'oint meeting, the approval technically does not �pproved at the last � , . exist. I-le suggested that Cherneionbo£tissueseandtproblemsewhichmhad £easibility and proposed resolut been pzev�ously discussed including financing, bank charter and agreement/ contract for parking. Following further discussion, it was moved by Commissioner Glotter, seconded by Commissioner Heltzer, that A.L. Cherne respond to previous quert:ics regarding financing, approval of bank charter, construction date, c�titracL' provi�ions and other development conditions, and submit evidence of. sufFiclent financial support. '1'he motion passed 8-1 (Councilman Meland opposed). 5. Three-Acre The Cxecutive Director explained that on May 8, Parcel 1979, the Authority issued a Letter of Intent to Darrel A. Farr Development Corporation in accordance with the previous action at the joint meeting of the City Council and Authority. One of the conditions of the Letter states that preliminary plans for development were to be submitted to the City by ,Iuly 9, 1979. Farr has requested that the date for submittal of plans be extended to October 9, 1979, as the orocedure for approval of tax-exempt revenue bonds has delayed project preparation. It was moved by Commissioner Heltzer, seconded by Councilman Martin, Co extend the Letter of Intent by 90 days, to October 9, 1979. The motion passed 7-2 (Councilman Meland and Commissioner Glotter vpposed). 6. 5pecial Permit; W�ber Development Request for special Oak Park Village. permit; Weber development at . In response to a question from Councilman Martin, the Executive Director explained the concerns expressed by the Planning Co�ission during its review of the proposed development have been resolved with the exception of the proposed construction of the mansard roof; the Commission favored construction of the roof on all sides of the building. Charles Novak, architect for the proposed developer, described plans for a textured-precast concrete exterior and mansard roof on three sides of the building. There was considerable discussion regarding the proposal. It was moved by Councilman Martin, seconded by Councilman Meland, to approve the special permit as proposed by the developer with textured prestressed concrete and a mansard roof on three sfdes. Councilman Backes expressed concern regarding whether the restaurant specifications would meet the description of a Class I restaurant as it relates to the liquor license policy, -182- City Council/HR.A minutes, June 26, 1979 "Fhere was considerable discussion regarding the proposed size of the restaurant and kitchen and whether it would meet the Council policy f�r t�l� issuance of a Sunday-sale liquor license. The prop�sed deve�oper and owner, Ben Weber, stated he had no intention of requesting a Sunday-sale liquor license. 'The niotion passed 8-0-1 (Chairman Glotter abstained). 7, Ad'o� urnmeitt The motion passed 9-0. t: Mark�Sather � Recording Secretary There being no further business, it was moved by Councilman Meland, seconded by Councilman Ralles, to adjourn the meeting at 8:45 p.m. V� L�e Hanks P esident Pro Tem -183-