HRA 1984 01 26AGENDA
REGULAR MEETING
CHANHASSEN HOUSING AND REDEVELOPMENT AUTHORITY
THURSDAY, JANUARY 26, 1984
CHANHASSEN CITY HALL, 690 COULTER DRIVE
CITY COUNCIL CHAMBERS
7:30 P.M.
7:30 p.m. - 1.
2.
3.
4.
5.
6.
10:00 P.M. - 7.
Call to Order.
Downtown Redevelopment Project Proposal: JLH
Associates /Historical Development Corporation.
Final Report: Downtown Project Market Study
(James B. McComb and Associates).
Old Business.
New Business.
Approval of Bills.
Adjournment.
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® CHANHASSEN HOUSING & REDEVELOPMENT AUTHORITY
690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
(61 2) 937.19--0t0
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MEMORANDUM
TO: Chanhassen Housing and Redevelopment
FROM: Scott A. Martin, Executive Director
DATE: January 17, 1984
SUBJ: January Meeting Agenda
1 / 11
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Authority Week,
As of this writing, we have two rather substantial items of busi-
ness to consider during our January 26, 1984 meeting (see
agenda).
Both of these items are related to the Downtown Redevelopment
Project, but unfortunately, the timing for the receipt of both
the Developer's Downtown Project Proposal and our Downtown
Project Market Study is such that I will not have an opportunity
to review and comment on either issue prior to delivery of the
meeting packet. (As you may recall, I will be attending the
annual meeting of the Minnesota Chapter of the National
Association of Housing and Redevelopment Officials in New Ulm
from Wednesday through Friday of this week.)
However, if everything goes according to plan, you should find
the aforementioned materials in this packet for your review prior
to next week's meeting.
I have met on several occasions since our last meeting (including
one joint session late last week) with the prospective developers
(JLH Associates) and our market analyst. Both assure me that
they will be prepared to make formal presentations to the Board
on the 26th. Hopefully, I will have an opportunity to analyze
the developer's proposal early next week and provide you with my
comments in advance of the meeting. I have enclosed for your
review a letter which I directed to Mr. Henning of JLH Associates
which spells out the type of information that should be included
in his proposal. You may wish to compare these requested items
with the information submitted in this packet.
Finally, due to an unusually hectic schedule during the last few
weeks, I have not had an opportunity to complete the minutes of our `
last meeting. These will be presented for your review and appro-
val in February.
J ...
CHANHASSEN HOUSING & REDEVELOPMENT AUTHORITY'
690 COULTER DRIVE P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
(612) 937 -1900
January 12, 1984
Mr. Jack Henning
('JLH Associates
:
12206 County Road 15
Plymouth, MN 55441
Dear Mr. Henning:
This letter is in response to your recent request for direction
as to what information you should present to the Chanhassen
Housing and Redevelopment Authority for their:review and con -
sideration during their meeting of January 26, 1984.
The following
within information o project and supporting documents should be
included
proposal,
rK..:
Proposal Content:
A. PROFESSIONAL BACKGROUND AND DEVELOPMENT EXPERIENCE
Demonstrate your ability to complete the proposed
development and describe similar projects you have
successfully done in the past. Provide relevant
yj 'credentials and background information in detail. What
other projects are you presently involved in?
;' z "'B. SITE PLAN - Include 'a proposed development site plan
)` showing s (drawn to scale)
1�- g ecifis P project .boundaries;
building size; general uses and location(s); access; ;,
r" parking; etc. "'(This plan should be comparable to Figure
3 in Chanhassen's Downtown Project Plan.)
C. BUILDING PLAN - Provide schematic floor plan for that
..portion of the BRA building (Old Instant Web facility),' r "
;proposed for reuse within your development proposal, d an r
k " for any new construction to be physically attached to the ft:
,; existing structure. This Plan should also show location ,
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and floor area devoted to proposed uses.
, R
D. CONSTRUCTION SCHEDULE Indicate when you would start
construction, when you anticipate substantial completion,
and when the building would be fully occupied. Your :z�f�e.9tF Kf
schedule should include all phases contemplated in they ;
overall project proposal�n
f..k.:lSL7T_x... ,a."..'+�"s:�Y�s
r, r.
Mr. Jack Henning
- January 12, 1984 -
Page 2 - -
E. ESTIMATED PROJECT COST AND METHOD OF FINANCING'- Indicate
proposed method and source of project financing and esti-
mated cost of private improvements (by building phase)
F. LAND PURCHASE OFFER - Indicate which parcels or portions
thereof, you are interested in purchasing, and how much
- you are willing to pay for land and /or buildings. "
G. ASSISTANCE REQUESTED OF THE HRA - Describe the type and
level of assistance you would need from the City to make
your project work.
H. ADDITIONAL INFORMATION - Provide any additional
information, documents, plans, etc. in support of your
project, including your 5 year business plan, financial
statements, credentials of your development team, etc.
Your proposal should be delivered to my office by -noon on Friday,
January 20, 1984 for distribution to the HRA Board. You should
submit twelve (12) copies of any documents or plans of greater
r size than 8}" x 1411, since we do not have the ability to copy
large documents.
I would suggest that we review this letter during our meeting of
January 13, 1984 in order to clear -up any questions you may have
and to discuss a realistic timetable for any future negotiations,
should the Housing and Redevelopment Authority so direct
following their January 26, 1984 meeting.
Sincerely,
.J
Scott A. Martin
;'.,Executive Director
cc: William Howard
Don Ashworth
K
CHANHASSEN HOUSING & REDEVELOPMENT AUTHORITY
690 COULTER DRIVE P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
1612) 937 -1900
MEMORANDUM
TO: Chanhassen Housing and Redevelopment Authority
FROM: Scott A. Martin, Executive Director
DATE: January 24, 1984
SUBJ: Downtown Redevelopment Project Proposal - JLH Associates
Enclosed for your review is the Downtown Redevelopment Project
proposal of JLH Associates, consisting of a preliminary building
floor plan for first phase construction on the old Instant Web
facility site, an overall Redevelopment Project Plan, and a pro-
posal letter and supporting materials.
Since the developer's proposal was not submitted until this week,
I can only offer some preliminary comments on the proposal at
this time.
The overall Project Plan retains the Ring Road concept identified
in the adopted Downtown Redevelopment Project Plan, but the
developer's plan provides for substantially less private develop-
ment than is envisioned in our adopted Plan. The Downtown
" Courtyard (public) is also eliminated from the proposed plan.`"
This reduction in the amount of private development proposed
within the Ring Road area will have a:.dramatic effect on the
level of tax increment revenues generated, and consequently will
substantially reduce the City's ability to construct the public
improvements necessary to serve the redevelopment project.
However, a determination of the specific financial impact of this
proposal on public redevelopment plans cannot be made with the
limited information provided thus far by the developer.
The preliminary building floor plan for the old Instant Webi,;'
Building is generally consistent with our adopted Redevelopment
-Plan. This plan was reviewed by the City's Community
Recreational Facilities Committee last week. The Committee =Ir •"
concluded that the Developer's proposal for reuse of the Instant
Web facility is generally compatible with decisions made to date
by the Committee during their study of this facility (i.e. a com qtr;.
..:munity recreational center will require up to 25,000 sq. ft. of
floor area to accommodate program options). The Committee's,
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Chanhassen Housing and Redevelopment Authority
January 24, 1984
Page 2 -
review did not include consideration of the developers overall
project, plan or his ability to carry -out the redevelopment plan
presented to the City.
The first phase redevelopment proposal, insofar as the Instant
Web Building is concerned, offers the advantage of convenience
oriented retail development without the need to relocate W. 78th
Street immediately. It also utilizes a large portion of the
existing structure, in addition to 35,000 sq. ft. of new retail
construction.
Substantial public assistance is requested for the developer's
proposal, however. Development of the first phase public improve-
ments (as yet undetermined), municipal parking facilities, and
100% land and building writedown is requested by the developer.
At this point, it seems unlikely that the proposed private
develop -ment will adequately offset these public costs. Again,
until more specific numbers can be generated for both private and
public costs, it is impossible to make a reasonable determination
of the level of public assistance required to make this project
work.
overall, the developer's proposal provides us with only a minimum
amount of information. I have some reservations regarding the
developer's experience with similar projects, but am comfortable
that the developer has a sincere and genuine interest in the pro -
ject.
The Board should review the Developer's proposal in light of the
adopted Redevelopment Plan and the findings contained in the
Downtown Market Study.
The Board should consider one of the following action's Thursday
night, in my opinion, depending upon your reaction to the proposal -
of JLH Associates:
1. Approve a 90 day period of exclusive negotiation rights with
JLH Associates to work out project details and attempt to
negotiate a Redevelopment Contract for properties included in
.
their first phase project area only.
2. Direct Staff to continue discussions /negotiations with JLH
Associates, but do not restrict the City from seeking other
development proposals during these negotiations.
3. Direct Staff to prepare a formal "Request for Proposal" and -
solicit proposals from qualified developers during the next
three to four months. The merits of each proposal would be
considered in comparison to each other, including that of JLH
Associates. (This approach was originally intended to be used
following completion of the Downtown Market Study.)
6'4
T�{
January 23, 1984
Housing and Redevelopment Authority
City of Chanhassen
Chanhassen, Minnesota 55317
Re: Chanhassen Downtown Development Project
Dear HRA Member:
We are very pleased to have the opportunity to present our
proposal.
.r
Our studies on this project lead us to believe that it should
be done in possibly four phases.
This proposal is concerned with primarily the first phase,
the utilization of the Instant Web facility and some new
buildings.
We would ask that the developer be deeded that portion of
the Instant Web building that would be utilized for the first
phase of construction, and the balance as it can be put to
use.
Also, we would ask that the HRA acquire land and provide the
parking facilities to the south and to the west of the Instant
Web building in accordance to the plot plan we are submitting.
We also would ask that the HRA participate in the cost of
constructing the walkways throughout this area.
The cost of utilizing the existing building as a bowling center
and athletic club does not provide any funds for these improvements.
Our proposal for the remodeling of the existing building and to
build thirty —five thousand square feet of new buildings would
cost $2,750,000.00
The proposed tenants and the space required for each are listed
as follows:
CITY OF CHANHASSEN
R 'ECPIVED
JAN 231584
COMMUNITY DEVELOPMENT DEV
e
Chanhassen HRA
January 23, 1984
Page 2
Bowling Alley 27,500 Ex
Athletic Club 4-6m Ex
Grocery Store 15m Ex & new
Drug Store 6m New
Beautician 1,200 New
Dry Cleaners 1,500 New
Bakery 1,500 New
Restaurant 2m New
Secretarial Service 2m New
A more thorough study will have to be made in regards to the
purchase of additional land from the HRA as the project progresses.
We would start construction as soon as the financing is arranged
and completion should be in six months.
During the construction of the first phase, we would be preparing
for Phase 2 which we believe should include a hotel and necessary
complimenting shops. The intent is to develop the center to it's
completion in approximately the way it is proposed on the plan
provided by BRW.
We would pursue Phase 3 and 4 as diligently as possible.
It is essential to the success of this project that the developer
receive Industrial Bond financing for the entire project. However,
we intend to use private financing to get the construction of the
bowling alley underway as soon as possible.
We would like to thank you for this opportunity to work with you,
and we do believe that with our experience and expertise, we will
give you the type of development that you deserve.
Sincerely,
/4H Associates
ti
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JACK HENNING
I was born in Southern Minnesota - Slayton /Worthington, Minnesota
area. I was raised on a farm and spent four years in the Air
Force. After the Air Force, I farmed for four years, then rented
out my farm and moved to California. I was employed as a carpenter
for four years and received my contractor's license in 1964. I
built several restaurants, apartment buildings and homes. I moved
to Minneapolis in 1966.
r In 1966 and 1967 I build three warehouses 120,000 -square feet
for Obermeyer Co. out of New York. In 1968 -1972, I built six
three -story buildings which consisted of (43,000 square feet)
each and one eight -story building of 80,000 square feet and an
850 car parking ramp.
In 1974 -1975 I built Fairway Wood Condominiums in Eden Prairie,
which consisted of 40 units.
In 1976 I built Eden West Office Building. From 1977 -1978,
I was building residential homes and Blake Ridge Townhouses
in Edina with Laukka & Associates.
From 1979 -1981 I built two Town Crier Restaurants, and four
Churches Chicken Restaurants in the Metro Area.
During that time I also remodeled several warehouses and
restaurants in the area. In 1982 I developed our 30 acres
for single family residents in Plymouth.
I also started a warehouse in Delano, Minnesota for Industrial
Louvers and I am developing the grain elevator at 2901 Garfield
Avenue, Minneapolis into 175 unit apartments.
ck Henning.
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PERSONAL FINANCIAL. STATEMENT OF
CHARLES D. ADAMSEN AND ELOISE ADAMSEN
12 -31 -82
ASSETS
Duplex at 417 West Sixth Street, Grafton, ND
$ 31,000.00
IDS -IRA Fund
24,000.00
Cash in Bank
1,500-00
Cash Value of Life Insurance
10,000.00
A -D Properties
190,000.00
Stock in Adamsen Construction Co. 12 -31 -82
139,000.00
Note from Adamsen Construction Co.
54,600.00
Stock in Adamsen Rental 12 -31 -82
115,000.00
Notes from Speaco Corp.
30,000.00
Highway Frontage -West Grafton
8,000.00
Home am' Farm Land
—85,000.00
Persc:: Property and Autos
24,000.00
Business loan to Jack Henning
10,000.00
Interest Due from Speaco in Dec. 31, 1982
4,800.00
TOTAL ASSETS
$726,900.00
LIABILITIES
W. C.
Bank Personal Note
$ 1,700.00
W. C.
?ank Co. Signed Note -Jane Adamsen
4,800.00
Esti:-
J taxes due
750.00
F`
tional Bank - home loan
4,600.00
F.
tional Bank.- signature note
14,700..00
WE
runty Bank
24,500.00
W;
)unty Bank
19,225.00
P'
mall Bills
300.00
�tor Co. (Car)
6,500.00
TOTAL LIABILITIES 77,075.00
NET WORTH 0 $649,825.00
TOTAL LIABILITIES AND NET WORTH $726,900.00
The above is a true and correct statement of our condition at the date
stated.
Charles D. Adamsen
1
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CHARLES D. ADAMSEN
Age 63
Engaged in the construction businesss for 40 years -
Senior Partner Adamsen Construction Co., Grafton, North Dakota
Builder of numerous projects, partial listing:
Motor Coach Industries - Pembina, North Dakota 1.5 million
Greyhound Plant 1.5 million
Ore Ida Foods Plant - Greenville, Michigan 3.0 million
Borden's Food Plant - Grafton 1.5 million
66 condominiums in 1982 2.2 million
1st National Bank - Grafton 1.0 million
Western Plaza Shopping Center 1.6 million
Two Buildings - ABM site 500m
Approximately 24 schools, etc.
Presently retained to be General Contractor on Ethonol Alcohol
11m
50% owner in A -D Properties Real Estate Management:
Manage shopping center and other commercial buildings on a fee
basis.
10 years experience in leasing stores, post offices, buildings
and other commercial properties in Minnesota and North Dakota.
50% owner in Adamson Rentals, owners of Sears Store, roller
rink, Colnel's Chicken, post offices, two restaurants, forty
apartments, eight houses, etc.
I believe that my experience in the field is quite broad could
be a contribution to the success of your project.
Sincerely,
Charles D. Adamsen
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REESE DESIGN, INC.
9100 west bloomington frwy • suite 140e -
bloomington,minnesota 55431
(612) 884.1172
INTRODUCTION
Reese Design, Inc.
Architects; Planners, Engineers, Land Surveyors
We take this opportunity to introduce ourselves to you. We
are Reese Design, Inc., a multi - disciplined design team,
that has provided services throughout the United States,
but basically in Minnesota.
Reese Design, Inc. was originally formed by Frank L. Reese,
A.I.A., in 1966, and was recently incorporated and took its
present name in 1980.
Clients are p.-:ovided a full range of professional services
encompassing architecture, structural and civil engineering,
landscape architecture, land and interior planning, lard
surveying and subsurface exploration and soil classification.
The staff, by training and innovative talent, is capable of
carrying out any size project in an expeditious manner.
to Reese Desi.fn's management philosophy is its concept of
functional or.,-anization. In order to provide each client with
access to all the design disciplines essential to a project,.
Reese Design 1.uts the specific combination of management an
technical expe. -tise needed to complete a given project, and
then assigns e:ch project to a Project Manager who keeps r_he
client aware o.: the project status at all times, discussing -
problems and progress on a regular basis.
An extensive literary of computer programs provides resources
and design capa A lities that expand the range of services.
A combination o:- in -house and commercial programs are utilized
to effectively Mend the parameters of a design wit`z. the
desired economy.
We wr7come iL•: opportunity to discuss your design project and
proc_de more details on how our pro essi.onaL services can be
tailor -made for your needs.
architecture and planning
Orm-
REESE DESIGN, INC.
9100 west bloomington frwy & suite 140e . _
bloomington, minnesota 55431
(612) 884 -1172
RECENT RECREATIONAL PROJECTS
Community recreation building for
the City of Kilkenney, Minnesota
Country Club building for the
City of Baudette, Minnesota
"American Legion Club in Ely, Minnesota
Recreation Center Building for residential complexes:
I
1. Hi Site Village - Eagan, Minnesota
2. Black Forest - Fridley, Minnesota
Recent Municipal Projects:
jects: p �
City Hall - Shorewood, Minnesota
r- Municipal Building Addition - Walker, Minnesota
Fire Station - Nevis, Minnesota
Library - Walker, Minnesota
architecture and planning
RECENT COMMERCTAL BUTLPINC PROJECT^
A. OFFICE BUILDINGS: LOCATION
Burnsville Office Park Burnsville, Minne ota
Eberhardt Company Edina, Minnesota
Employer's Overload Service Bloomington, Minnesota
Metro Office Park Bloomington, Minnesota
Pemton Office Building Bloomington, Minnesota
n SHOPPING CE^ ?TERS:
True Value ardware Store 'dart wain Paul, Minnesota
Titus Shopping Center Eden Prairie, Minnesota
•lillow Grove Shopping Center P1-;mouth, Minnesota
FRANK L. REESE, A.I.A.
ARCHITECT
RESPONSIBILITY:
President, Reese Design, Inc.
Started own firm in 1966.
i
EDUCATION:
Hamline University
University of Minnesota - Bachelor of Architecture
r AFFILIATIONS:
Serves on the National Energy Committee, American
_ Institute of Architects
Serves on the Energy Committee of the Minnesota
Society A.I.A.
r Construction Specifications Institute
REGISTRATION:
NCRAB, Arizona, Florida, Illinois, Indiana, Iowa,
Minnesota, Missouri, New Mexico, South Dakota,
Wyoming and Wisconsin
ACTIVITIES:
Shorewood Minnesota Planning Commission
Hamline University Scholarship Committee
Former President of .Metro West United Methodist Union
Speaker on Energy Conservation Design Subjects
DESIGN EXPERIENCE:
(— Land planning, residences, townhouses, apartments,
condominiums, elderly housing, nursing homes, handi-
capped and retarded resident homes, office buildings,
�— commercial, industrial, warehouses, churches and
funeral homes
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WILLIAM M. ROVA, A.I.A.
ARCHITECT
WORK RECORD:
Partner of Firm since May, 1966
EDUCATION:
University of Minnesota, Minneapolis, Minnesota
Bachelor of Architecture 1957
Bachelor of Arts 1957
PROFESSIONAL ORGANIZATIONS:
American Institute of Architects, Corporate
Member
Minneapolis Chapter, A.I.A., Treasurer
MISC=L .NE:dJS ORGANIZATIONS:
Vision, of Glory Lutheran Church, Plymouth, Min. ?aota,
Council Member
Director, Finnish- American Society
Institutional Representative, Boy Scout Troop
#222, Plymouth, Cub Scout Troop #222, Plymouth
REGISTRATIONS:
Minnesota
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KENNETH F. DOWEL, P.E.
Mechanical Engineer
EDUCATION:
BSME, 1998, Mechanical Engineering
MBA, 1965, Business Administration
- ACTIVE REGISTRATION:
1953 Mechanical Engineering, Minnesota
I 7 OTHER EXPERIENCE AND QUALIFICATIONS:
Kenneth Dowel has 32 years of experience on many
_ projects of hydraulic design with major project
experience in heating, ventilating and air condi-
tioning.
Other experience includes:
Air Pollution Control
Automation & Controls for Equipment
i� Chemical Process Design
Solar Energy Design.
Fire Protection Sprinkler Systems
Fish Ladder Design for Dept. of Fisheries
Clean Room Equipment Design
Swimming Pool Line Design
Gas and Steam Line Design
Life Cycle Costing as Part of Value Engineering
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THOMAS A. HAMMOND, P.E.
Electrical Engineer
EDUCATION:
BSEE, 1935, Electrical Engineer
ACTIVE REGISTRATION:
1947 Electrical Engineer
OTHER EXPERIENCE AND QUALIFICATIONS:
Tom Hammond has 46 years of Electrical Engineering
experience. He has been an Electrical Engineer on
many types oy projects including restaurants, schools,
and clubs. He has experience on fire system sprinklers,
and advanced computerized controls for controlling water
usage and electrical transmission systems. His back-
ground includes many electronic control systems for
automatic control of multiple electrical and mechanical
functions.
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RONALD PLUIM, P.E.
Civil Engineer
EDUCATION:
Bachelor of Science - 1961
Civil Engineering - Structures
REGISTRATION:
Professional Engineer - Iowa
Professional Engineer - Minnesota
Professional Engineer - Wisconsin
EXPERIENCE:
Mr.=luim has served as project administrator for the
Wis::onsin Air National Guard rehabilitation projects
at Truax Field. He has supervised the design and
renovation of such structures as the base vehicle
storage building; ambulance shelter, base fire
station; and base administration building. In addition,
he has checked all structural plans and specifications
for accuracy; reviewed construction cost estimates;
and overseen all construction inspection activities.
Prior, Mr.Pluim worked for the State of Wisconsin for
nearly 21 years. During this time, lie designed or
supervised the design of more than 850 large, complex
structures throughout th&i state. More than 200 of
these projects invovled the rehabilitation of existing
structures.
WILLIAM GONZALES, P.E.
Structural Engineer
EDUCATION:
Bachelor of Science, 1951
Architectural Engineering & Construction
REGISTRATION:
Professional Engineer - Minnesota
Professional Engineer - Rhode Island
Professional Engineer - South Carolina
EXPERIENCE:
With more than 32 vears of experience in structural
design and engineering, Mr. Gonzales has completed
a wide variety of projects including medical, educa-
tional, public and governmental facilities.
Mr. Gonzales is responsible for project direction and
coordination, including planning, oraanizing and
controlling of all structural phases of the project
from inception to completion.
He has designed pile and caisson foundations, spread
and continuous footings, foundation and retaining walls,
concrete frames and floor systems, structural steel
frames and floor systems, and precast concrete systems.
He has also been responsible for estimating, structural,
architectural, mechanical and electrical drafting for
such renovation and remodeling projects and railroad
depots, shops and warehouses.
,
TERRANCE GENSRE, RLS
Surveying Supervisor
EDUCATION:
Associate Degree, 1975
Land Surveying Technology
_ REGISTRATION:
fRegistered Land Surveyor - Illinois
Registered Land Surveyor - Minnesota
Registered Land Surveyor - Wisconsin
EXPERIENCE:
r As head o' -he survey department, Mr. Genske is
responsible or all surveying work completed by the
company. In the past five years, he has completed
over 110 projects requiring section corner remonumen-
tation, boundary surveys, legal property descriptions,
topographic maps, horizontal and vertical geodetic
controls, and computations using state plane coordinates.
Mr. Genske has also conducted a number of high precision,
complex surveys for large highway, structural and subdi-
vision, and has underta]:en more than 100 hydrographic
surveys for river- spanning structures.
Recently, he supervised a 30 -week flow study of the
r Minnesota River which involved establishing horizontal
i and vertical control, taking current measurements, and
calculating discharge. He is also experienced in muni-
cipal and utility surveying, construction inspection and
f staking, and all types of lot, boundary, and subdivision
staking.
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In addition, Mr. Genske is a certified Soils Tester and
is highly qualified to perform field investigations and
inspection for construction projects.
The survey department uses the latest, most sophisticated
instruments and techniques available, including Electronic
Distance Measuring (EDM) and precise optical theodolites
for horizontal and vertical angles. Computer capabilities
allow us to solve even the most complicated geometry
problems generated by the survey group quickly and
efficiently.
SHERRIE BURGOYNE CONSOER
Interior Designer
EDUCATION:
University of Minnesota, St. Paul Campus,
Bachelor of Science - Interior Design, 1978
Collateral - Art History
WORK EXPERIENCE:
Residential and commercial interior designer;
since 1975.
INTERESTS AND ACTIVITIES:
Member. Burnsville Chamber of Commerce
Member, League of Women Voters
Associate Member, A.S.I.D.
University of Minnesota Alumni Association
Enjoy sports... running, golf, water and snow skiing
CHANHASSEN HOUSING & REDEVELOPMENT AUTHORITY
' ®t 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN. MINNESOTA 55317
®u• (61 2) 937-1900
MEMORANDUM
TO: Chanhassen Housing and Redevelopment Authority
FROM: Scott A. Martin, Executive Director
DATE: January 24, 1984
SUBJ: Downtown Project Market Study
Enclosed for your review is the Downtown Market Study prepared by
James B. McComb & Associates.
I would encourage you to review the study prior to Thursday
night's meeting, if possible, and be prepared to ask Richard
Sollie, Project Manager, about specific elements of the study.
I apologize for the late delivery of this report and any incon-
venience it may cause you.
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DOWNTOWN MARKET STUDY
CHANHASSEN, MINNESOTA
Prepared for
CHANHASSEN HOUSING AND
REDEVELOPMENT AUTHORITY
Prepared by
JAMES B. McCOMB & ASSOCIATES
January, 1984
c
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James B. McComb & Associates
830 TCF Tower • 121 South Eighth Street
Minneapolis, Minnesota 55402
612/338 -901:
January 20, 1984
Mr. Scott A. Martin
Executive Director
Chanhassen Housing and
_Redevelopment Authority
690 Coulter Drive
P. 0. Box 147
Chanhassen, MN 55317
Dear Mr. Martin:
We are pleased to submit our downtown market study for the
proposed Chanhassen CBD redevelopment project. The purpose
of this study was to determine the potential for development
Cr of retail and office uses in the Chanhassen CBD.
This analysis was based on a thorough examination of the
factors that influenced the market for retail facilities and
offices. Our analysis of these factors, combined with our
experience in similar studies led to the conclusions
described in this report.
We wish to thank you and other city officials and the
businessmen of Chanhassen for their assistance in gathering
basic data and sharing their knowledge and experience with.
r us. Their kind assistance was extremely valuable in giving
us an understanding of the many factors influencing the
markets for retail and office uses in Chanhassen.
We appreciate the opportunity to have worked with you on
this study. We look forward to being of assistance to you
again in the future.
Respectfully submitted,
Richard B. Sollie
RBS:gn CITY OF CHANHASSEN
P' CEIVED
-- Enclosure
JAN 244104
'� Consultants in Economics. Development and Covemment Fir a -_e COMMUNITY DEVELOPMENT DEP
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TABLE OF CONTENTS
Chapter
Subject
Page
List of Figures, Tables and Maps
i
Summary of Conclusions and
ii
Recommendations
Introduction
1
I
Evaluation of Existing Conditions and
3
Growth Potential
Analysis of Existing Business Conditions
.3
Access
4
Residential /Population Growth
4
II
Development Potential
11
Convenience Store Potential
11
Other Retail Potential
21
Office Market Potential
22
Summary
26
James B. McComb & Associates
conwManis in Ecarmn=, Oevebpment and Government Finance
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LIST OF FIGURES, TABLES AND MAPS
Figure
Title
Page
1
Recommended Development Plan
iv
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Table
1
Population and Households
6
Chanhassen, Eden Prairie and Victoria
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(l.
2
Building Permits, 1970 -1982
7
Chanhassen, Eden Prairie and Victoria
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3
Population Projections - Chanhassen
8
4
Projected Population and Households
10
<!
Chanhassen
5
Projected Population
13
i
Chanhassen Trade Area
6
Socio- Economic Profile: 1980
14
U
Chanhassen Trade Area
7
Downtown Chanhassen Purchasing Power
18
-
Trade Area
`
8
Competitive Supermarkets
20
C-'
9
Proposed Specialty Center Concept
23
10
Downtown Chanhassen Study
24
Eden Prairie Office Development,
Existing, Approved, Planned
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11
Summary of Market Potential
27
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Housing Units Projected, 1984 -1993
5
2
Metropolitan Urban Service Area
9
3
Downtown Chanhassen Trade Area
12
4
Office Development in Eden Prairie
25
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�^ SUMMARY OF CONCLUSIONS AND RECOMMENDATIONS
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The potential for a community or regional shopping center in
the Chanhassen CBD is severely limited by the small popu-
lation of the trade area which the center would serve and by
the presence of major shopping facilities already in place
in the market area. It would be possible for individual
shoppers goods stores to locate in Chanhassen -- stores
capable of drawing customers on their own without support of
compatible shoppers goods stores. It is generally not
feasible to plan or construct store space specifically for
this purpose. However, it is possible that they could be
accommodated in the proposed convenience center or in
subsequent expansion of the retail facility.
A potential for a unique specialty center concept oriented
around artist products, antiques and specialty stores with
an arts and crafts orientation was identified. This center
would be anchored by concentrations of stores featuring the
products of Minnesota artists and artesians and antique
dealers. One or two specialty restaurants would increase
the attraction of the center. A specialty center of this
type containing 60,000 to 70,000 square feet of floor area
is marketable in 1985.
James B. McComb & Associates
Consultants m EoaKxM Dwekwwt and Gommmdd Finance
Thi's report has evaluated the major factors that influence
the future potential for retail stores in the Chanhassen
CBD. These factors and their implications are discussed in
following chapters of this report. A summary of conclusions
and recommendations is presented here.
Summary of Market Conclusions
The market analysis has determined that there is potential
(I
for development of retail stores in the Chanhassen CBD.
Two specific markets have been identified - -a convenince
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retail center and a specialty center. A market for office
space was also identified.
The population of the Chanhassen trade area generates
(
° sufficient retail sales potential to warrant the construc-
tion of a convenience center to serve the day -to -day needs
of Chanhassen area residents. Market support exists for
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20,000 to 25,000 square feet of retail space and service
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shops in 1985. By 1990, the potential will increase to
35,000 to 40,000 square feet of retail space. The potential
(la-
for a conventional, full - scale, supermarket is limited until
1988 -1990. However, the initial convenience center develop-
ment could be anchored by a limited service grocery store
such as a Kenny's of 7,000 to 10,000 square feet.
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The potential for a community or regional shopping center in
the Chanhassen CBD is severely limited by the small popu-
lation of the trade area which the center would serve and by
the presence of major shopping facilities already in place
in the market area. It would be possible for individual
shoppers goods stores to locate in Chanhassen -- stores
capable of drawing customers on their own without support of
compatible shoppers goods stores. It is generally not
feasible to plan or construct store space specifically for
this purpose. However, it is possible that they could be
accommodated in the proposed convenience center or in
subsequent expansion of the retail facility.
A potential for a unique specialty center concept oriented
around artist products, antiques and specialty stores with
an arts and crafts orientation was identified. This center
would be anchored by concentrations of stores featuring the
products of Minnesota artists and artesians and antique
dealers. One or two specialty restaurants would increase
the attraction of the center. A specialty center of this
type containing 60,000 to 70,000 square feet of floor area
is marketable in 1985.
James B. McComb & Associates
Consultants m EoaKxM Dwekwwt and Gommmdd Finance
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A potential for development of office space in the
Chanhassen CBD was identified. Twenty thousand to thirty
thousand square feet of space could be developed in 1985.
An additional 50,000 to 75,000 square feet could be
developed by 1990. The primary market for office space will
be with small firms engaged in business and personal
services, i.e. insurance, attorneys, manufacturers reps,
etc. Continued residential growth will also increase the
need for medical and dental offices.
Potential Development Identification
The Chanhassen downtown redevelopment plan_ should focus on
the strengths of the Chanhassen CBD and the City. Identi-
fied strengths include:
o The image and attraction created by the Chanhassen
Dinner Theatres.
o A growing population base.
o High average family and personal incomes in the
trade area.
o Proximity to State Highway 5.
o The optimistic and cooperative attitude of local
businessmen.
Weaknesses which detract from the strength of the Chanhassen
CBD include:
("Y o A small current population base within the trade
area.
o A relatively small retail base and limited attraction
currently existing within the CBD.
o Highway access problems created by the .limited
capacities of highways serving Chanhassen.
o Chanhassen's location on the edge of current westerly
expansion of the metropolitan area.
It is recommended that the redevelopment plan adopt a phased
development program. Recommended phasing is as follows:
phnco 1
Timing - 1984/1985
- Convenience retail and services -- 20,000 to 25,000
square feet
James B. McComb & Associates
Corw tales in Ecannnics. Deveiopmea and Govemment finance
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Figure 1
RECOMMENDED DEVELOPMENT PLAN
CHANHASSEN CBD
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McEUm - Density Hwxrp
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ea�kl I i / CONVENIENCE
RETAIL
park" EXPANSION
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RETAIL/
SERVICES
OFFICE/
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SERVICES
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11
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- Specialty retail center -- 60,000 to 70,000 square
feet
- Other potential uses, including:
Bank
Savings and Loan
Bowling Alley
Health /Fitness Facility
- Office space -- 20,000 to 30,000 square feet
Phase 2
Timing - 1988/1990
- Convenience retail and services -- 15,000 to 20,000
square feet (additional)
- Office space -- 50,000 to 75,000 square feet
(additional)
Recommendation
This analysis has demonstrated the potential for development
of retail and service facilities in the Chanhassen CBD. The
following recommendations are offered to aid in implementa-
tion of the redevelopment plan.
o The convenience center portion of the development
lr should be located at the western end of the complex.
Utilization should be made of the Instant Web
Building, if possible. Orientation of the conven-
ience center should be to the west and to the north.
Parking for the convenience center should be located
to the west and to the north of the facility. Street
access should be from the west and from the north. A
conceptual configuration is shown in Figure 1.
o Subsequent phases of the development should attempt
to utilize the existing Frontier Building, or the
location which that building occupies if the
structure is not deemed suitable for redevelopment
for retail space. Additional retail development
could be constructed to the north of the Frontier
Building in the space now occupied by the parking
lot.
o The northern section of the ring road should provide
major access and ingress and egress points to the
development - orientation of the development should
3 James B. McComb & Associates v
Gxmu@aM in Ecamm= Dev baler# and Govemrnent Finance
be to the north. Construction of the southern
section of the ring road should be delayed until
CF the ultimate configuration of the development is
determined. It will be important to continue to
route traffic in front of the center, as long as the
orientation is unidirectional.
o Consideration should be given to establishing a
street connection between West 79th Street and the
western sector of the ring road. The CBD retailing
function would be strengthened by providing direct
access between the retail facilities on West 79th
Street and the recommended convenience.and service
center.
C
o It is desirable to provide space in the redevelopment
plan for a hotel adjacent to the Chanhassen Dinner
Theatres. It is probable that a market will develop
for a hotel at this location. It is recommended that
C a hotel market analysis be conducted to determine the
potential and timing.
r o It is recommended that provision be made for office
space development outside of the ring road,
preferably immediately to the west of the downtown
C_r redevelopment project, as shown on Figure 1. It is
desirable to maintain a seperation of the retail and
office functions to avoid conflicts which might arise
from competition for parking during the day.
However, it could be possible to include some second
floor office space in the retail complex to accom-
modate personal service office users such as den -
tists., chiropractor, insurance, etc. In the long
run, pure office space, seperated from the retail
function, will be more attractive to most office
users.
James B. McComb & Associates v i
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INTRODUCTION
The City of Chanhassen is interested in achieving a
revitalization of the downtown business district. The
downtown business district is a part of the Chanhassen
downtown redevelopment project which encompasses approxi-
mately 600 acres of partially developed and undeveloped land
lying along the north and south sides of State Highway 5.
The project consists of two distinct sections: the Central
Business District (CBD), which contains approximately 175
acres, and the Chanhassen Business Park, which contains 425
acres. The focus of this analysis is on th_e.CBD portion of
the project area.
The purpose of this market study has been to determine the
potential for new and /or adaptive reuse retail and services
development in downtown Chanhassen. The primary objective
of the work program has been to identify potential retail,
services and other commercial uses which could be developed
in the downtown area.
The work program for this market study has included the
following work tasks:
o Inventory and Analysis of Existing Conditions
Existing conditions and attitudes were evaluated
through a series of work tasks which included
interviews with business and property owners in
downtown Chanhassen, evaluation of the current
pedestrian /shopper environment, evaluation of
existing retail and service stores and shops,
evaluation of street and highway access, interviews
with local officials, and analysis of growth trends
and potential for future growth.
o Commercial Potential Analysis
The types of commercial space which could be
supported in downtown Chanhassen were identified.
This included analysis of the potential for con-
venience oriented retail stores and service shops,
other types of retail stores - including specialty
retail, and the potential for office space.
o Potential Development Identification
Based on the research tasks described above, the
strengths and weaknesses of downtown Chanhassen were
' James B. McComb & Associates
Cansultards in Eomamics, Development and Government Finance
addressed and potential development uses were
identified.
In conducting this assignment, information was obtained from
a wide variety of sources, which, combined with our
experience in similar evaluations, provided a basis for
judgement. Principal attention was given to gathering
C.
original research data as described above.
This report contains the primary information needed to
support our principal conclusions. However, in a report of
this nature, it is impossible to include all of the infor-
mation that was developed and evaluated, _.Any additional
detailed information required will be furnished upon
request.
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CHAPTER I
EVALUATION OF EXISTING CONDITIONS AND GROWTH POTENTIAL
The existing commercial base in the Chanhassen CBD was
evaluated to determine its capacity to serve as the basis
C for expansion of the retail and service function. Existing
businesses in the CBD were evaluated and the attitudes of
merchants toward redevelopment were explored. The physical
capacity of the CBD, in terms of parking and access, was
evaluated. Residential and population, growth and the
potential for future growth in the areas served by the
Chanhassen CBD was determined.
Analysis of Existing Business Conditions
The Chanhassen CBD is a small retail and service area which
provides some of the day -to -day services required by people
who live and work in the immediate area. It includes a
mixture of retail and service shops which have grown up over
a number of years. Historically, orientation has been to
West 78th Street. Recent additions have opted for orien-
tation to Highway 5 in order to benefit from exposure and
access to highway traffic.
Existing store facilities offer little opportunity for
inclusion in a comprehensive redevelopment. Store buildings
are largely of a size and physical construction and condi-
tion to provide little or no value for redevelopment. Store
locations are scattered and off street parking is minimal at
most locations. The only facility offering potential for
inclusion in the redevelopment plan is the Chanhassen Dinner
Theatres' complex and the Instant Web building.
Interviews with CBD businessmen have indicated that a
majority are in favor of revitalization of the CBD and look
forward to improved business conditions. Specific results
of the survey include:
Retail sales have been generally increasing in the
Chanhassen CBD. Merchants anticipate continuing
increases in sales, except where increased competi-
tion will be a deterent. West 79th Street merchants
anticipate larger sales increases than merchants
located on West 78th Street.
o Chanhassen CBD merchants are enthusiastic about the
future of the Chanhassen CBD, whether or not the
James B. McComb & Associates
Cmsultaft in Ecw"nics. Development and Govemrnmt Finance
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proposed redevelopment occurs. It is likely that
existing businesses will expand or make improvements
to existing facilities if the redevelopment does not
l occur. There is general agreement that expansion of
the CBD retail community will be beneficial.
r o Major competitive retail areas include the conven-
ience center anchored by Driskill's Super Valu at
C State Highway 5 and County Highway 4 in Eden
Prairie, the Seven Hi shopping area at State
Highway 7 and 101, and the Shoreview Center at State
Highway 7 and 41 in Excelsior.
o The existing trade area for the Chanhassen CBD is
(„ thought to include the City of Chanhassen and the
northwestern quadrant of Eden Prairie. Stores on
r West 79th Street are oriented to Highway 5, drawing
a considerable portion of their trade from highway
traffic. Approximately 10 percent of the CBD
business volume is thought to be captured from areas
to the west of Chanhassen.
Access
Major current access to Chanhassen is via State Highway 5
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(east -west) and State Highway 101 (north- south). Highway 5
is two lanes westward from its intersection with Plaza
Drive, immediately west of I -494. State Highway 101 is
a two lane highway.
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Residential /Population Growth
New retail facilities developed in the Chanhassen CBD would
be expected to draw trade primarily from the city of
Chanhassen and from the northwestern sector of Eden Prairie
to the east and from as far away as Victoria, to the west.
James B. McComb & Associates 4
Garrsulfara h fcaianics, DevefcMxvt and Gawna M Finance
Highway 5 is planned for upgrading to four lanes between
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Plaza Drive and County Road 4 with completion expected in
1986. The section of Highway 5 between County Road 4 and
State Highway 41 is planned for upgrading to four lanes
between 1986 and 1990. No upgrading of Highway 101 is
planned except for City plans to reroute 101 in the vicinity
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of Highway 5.
The State is studying the possibility of relocating U.S. 212
between I -494 and Chaska. The approximate route of the new
Highway 212 is shown on Map 1. Construction is projected to
be at least five to seven years away. Upgrading of U.S. 169
south of I -494 may also occur at some time in the future.
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Residential /Population Growth
New retail facilities developed in the Chanhassen CBD would
be expected to draw trade primarily from the city of
Chanhassen and from the northwestern sector of Eden Prairie
to the east and from as far away as Victoria, to the west.
James B. McComb & Associates 4
Garrsulfara h fcaianics, DevefcMxvt and Gawna M Finance
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Map 1
HOUSING UNITS PROJECTED, 1984 -1993
ST.
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FLYING CLOUD
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The population of the City of Chanhassen grew by 1,480
between 1970 and 1980. 1980 population was established at
6,359 by the census of population. The number of households
in the City of`- 'Chanhassen increased by 726, to a total of
2,075 households in 1980. Population and household data are
shown in Table 1.
Table 1
POPULATION AND HOUSEHOLDS
CHANHASSEN, EDEN PRAIRIE AND VICTORIA_
CHANHASSEN EDEN PRAIRIE
VICTORIA
r
Population
1970 4,879 6,938 850
1980 6,359 16,263 1,425
Growth 1,480 9,280 575
7
Households
1970 1,349 1,653 215
1980 2,075 5,383 425
Growth 726 3,730 210
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Source: U.S. Census of Population
The population of the City of Eden Prairie increased at a
,..-
significantly faster rate, growing by 9,280 to a 1980
r
population of 16,263. Households increased by 3,730, to a
total of 5,383 households in 1980.
—
The population of the City of Victoria grew at a signi-
ficantly slower rate, increasing by 575 persons to a 1980
population of 1,425. Households grew by 210, to a total of
425 in 1980.
Building permit data indicates that 1,100 new housing units
were built in Chanhassen between 1970 and 1983. This is an
-
average of approximately 78 new housing units per year. As
shown in Table 2, the number of new housing units built has
fluctuated considerably, from a low of 22 new units in 1982
to a high of 168 units in the years 1971 and 1979.
Eden Prairie has accommodated the larger part of new housing
unit growth in this sector of the metropolitan area during
the 1970s. A total of 6,134 new housing units were built in
Eden Prairie between 1970 and 1983, an average of 438 units
per year.
James B. McComb & Associates 6
Corr &vz in Eommics, Developners antl GovemmeM Finance
Table 2
`
Building Permits, 1970 -1982
CHANHASSEN, EDEN PRAIRIE AND VICTORIA
Eden
Year Chanhassen Prairie Victoria
1970 79 39 9
1971 168 29 5
1972 66 230 11
1973 50 285 10
1974 18 224 `" 7
1975 35 184 4
1976 64 287 10
1977 112 721 28
1978 104 938 31
1979 168 880 5
1980 99 544 22
�.
1981 24 417 8
1982 22 535 10
1983* 91 821 41
Total 1970 -1983* 1,100 6,134 201
0
* Through November 30, 1983
Source: Cities of Chanhassen, Eden Prairie and Victoria
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Victoria has continued to grow slowly during the 1970s. A
total of 201 new housing units were built in Victoria
between 1970 and 1983, an average of 14 housing units per
year.
tt
Projections of future population growth in Chanhassen have
been made by the Metropolitan Council and by the Chanhassen
Comprehensive Plan. The Metropolitan Council in a 1975
series projection indicated a population of 17,000 for
Chanhassen in 1990. A subsequent projection in 1978 lowered
the 1990 projection to 11,000. The Chanhassen Comprehensive
<'
Plan established a probable range of 14,382 to 26,808 in
1990. In view of existing development activity and pending
projects at the time these projections were made, it was
felt that a population of approximately 17,000 could be
achieved in 1990. However, in order to comply with the
Metropolitan Land Planning Act, the City used the Metro-
politan Council's population estimates in preparing the
plan. Estimates of the future population by the Metro-
politan Council and the Chanhassen Comprehensive Plan are
presented in Table 3.
James B. McComb & Associates
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Table 3
POPULATION PROJECTIONS
CHANHASSEN
Metropolitan Council
1975
Projections
1980
7,400
1990
17,000
2000
24,450
1978
Projections
6,600
11,000
15,500
Chanhassen
Comprehensive Plan
11,-000
Source: Metropolitan Council & Chanhassen Comprehensive
Plan
An independent estimate of future population growth in
Chanhassen was made for this analysis. This projection
considered the following factors:
o Population projections by the Metropolitan Council
and the Chanhassen Comprehensive Plan as shown in
Table 3.
o Current plans of major builders now active in
Chanhassen and the northwestern sector of Eden
Prairie produce an estimate of 2,130 new housing
units by 1993- -1,130 in the City of Chanhassen.
Activity areas of major builders are shown on
Map 1.
o Residential development at urban densities in
_ Chanhassen is restricted to the northern and eastern
sectors of the City until after 1990 by definition
of the Metropolitan Urban Service Area as shown on
Map 2.
o Based on known plans of major builders and an
assumption that additional units will be built by
others, 2,125 new housing units are projected in
Chanhassen between 1980 and 1990.
o A total of 4,200 housing units is estimated for
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Chanhassen by 1990. At 2.9 persons per housing
unit, a total population of 12,400 is projected for
1990.
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'— James B. McComb & Associates 8
i Caauttants in Econanics.0eveloprierAand Govemmerrt Finance
Map 2
METROPOLITAN URBAN SERVICE AREA
J -
y -■
• I A u
ura -Service rea
,; - -:
-II _ ntil after 1996, =
I or
G.
- - ■— c `-
__�- _ \ ■
■.� �� E. mar
CITY OF
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■
CHANHASSEN Serviae� % ■=
MINNESOTA - -0 —.
■e■ 1990 MUSA Line- T
Metropolitan Council
1990 MUSA Line - - rea' y
Chanhassen �.
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James B. McComb & Associates 9
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Projections indicate a total population for Chanhassen
amounting to about 12,400 in 1990 and 22,650 in the year
2,000. Households are projected at 4,200 in 1990 and 9,100
in the year 2000. Population and household projections for
Chanhassen are shown in Table 4.
Table 4
PROJECTED POPULATION AND HOUSEHOLDS
CHANHASSEN
Population Households
1980 6,359 2,075
1990 12,400 4,200
2000 22,650 9,100
Source: James B. McComb & Associates
Continued population growth is projected in Eden Prairie and
Victoria. Metropolitan Council projections indicate the
�.— Eden Prairie population growing to 25,000 in 1990 and 33,300
in the year 2000. Projections show Victoria growin to
2,300 in 1990 and 2,500 in the year 2000.
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James B. McComb & Associates
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CHAPTER II
Development Potential
The market analysis considered the potential for development
of retail stores and service shops and office space in the
Chanhassen CBD. Two types of retail facilities were
analyzed -- convenience retail facilities and other types of
retail facilities. Convenience stores are defined as those
types of stores which serve the day -to -day shopping needs of
residents of the immediate trade area. Supermarkets and
drug stores are typical convenience stores. Other types of
stores considered in this analysis included shoppers goods
stores and specialty stores, which usually serve a larger
trade area and are shopped on a less frequent basis. The
potential for office space development was also considered
in this analysis.
Convenience Store Potential
This analysis of the market potential
facilities in the Chanhassen CBD
shopping center or shopping area
supermarket as an anchor and other
service shops such as drugs, hardwar
and beauty shops, and other stores c
shopping center of this type would
approximately the size and shape as
trade area was delineated on the
drawing power of the proposed shoppi
and strength of competitive retail
access routes.
for convenience retail
assumes a coordinated
thick would include a
convenience stores and
dry cleaners, barber
f a similar nature. A
serve a trade area of
shown on Map 3. This
basis of anticipated
ig center, the location
facilities and major
Current and projected population of the Chanhassen trade
area was based on population projections discussed pre-
viously. Population of the delineated trade area is
estimated at 8,000 in 1983. Trade area population is
projected to increase to 10,000 by 1985 and 15,800 by 1990.
Projected population for the Chanhassen trade are is shown
in Table 5.
James B. McComb & Associates 11
CanwMvft in EcwwKs, DeWbpnent and Govemnxw Finance
Map
DOWNTOWN CHANHASSEN TRADE AREA
O
(D
0
Sk
0
ni
CD
It/
LAY
Sh.1
N
TO All
V� D,
I ST.
SON
1 fA
� �A,
1�-z SHOR.�WYOOD
S Excelsior
M 1,d. f I
-0
Q5
Idil, Co & Hy. 5
P L
lk
f R
I t. Phnll
W. N h DEN • PRAIRIE A�d.,
ii
3 1
V ORIA
N, aconia
K jW N lot M. - t
lk
F
-] , .... I9I� .... 1 II ...��� L.�° A°u !�t.Q... :7..i. �•' . .�. _ ... ..].n .. .L... � _ I C / I rL.= . --------------
'C KA,
0
j IL Shakopee
haskn
C HA S
SIIAXOPEE
tl
A C K S N
ti
Gi .
�L G R E N'--, I •
D A I M
N
L U I S V I L L ........
1 1:�
P RIOR LAX
�?
Scale In Miles
C
C
Table 5
PROJECTED POPULATION
CHANHASSEN TRADE AREA
Year Population
1983
8,000
1984
8,900
1985
10,000
1986
11,100
1987
12,300
1988
13,400
1989
14,600
1990
15,800
1995 21,400
2000 28,100
Source: James B. McComb & Associates
A review of demographic characteristics of the population of
the Chanhassen trade area indicates the following character-
istics:
• Average family income is 13 percent higher than the
average for the TCMA -- $33,622 in the Chanhasen trade
area versus $29,753 average in the TCMA.
• Two- thirds of employed people in the Chanhassen trade
area are white collar workers.
.. o Nearly one -third (31.2 percent) of the adult popu-
lation has completed at least four years, of college.
• More than two - thirds (68.3 percent) of households in
the trade area own their own homes - -23.1 percent
rent.
o Average household size is 3.08 persons and average
family size is 3.55, indicating the large proportion
of families with children in the trade area.
o Median age is 26.9 years.
J
James B. McComb & Associates 13
Gamu Canis in Economics. Development and Govemment Finance
C
TABLE 6
r
SOCIO- ECONOMIC
PROFILE:
1980
CHANHASSEN
TRADE
AREA
� r
POPULATION
7225
--
INCOME: HOUSEHOLDS
% FAMILIES
%
0 -4.9T
71
3.2 34
1.9
POPULATION
IN...
%
5 -9.9T
154
6.8 77
4.3
Households
6970
96.5
10 -14.9T
230
10.2 120
6.7
Group qtrs
255
3.5
15 -19.9T
305
13.5 181
10.1
College
172
2.4
20 -24.9T
253
11.2 217
12.1
-
Inst
84
1.2
25 -29.9T
278
12.3 259
14.4
Other
0
0.0
30 -34.9T
272
12.0 257
14.3
35 -39.9T
251
11.1 244
13.6
OCCUPATION
Prof /tech
703
%
18.4
40 -49.9T
50 -74.9T
214
151
9.5 187
6.7 141
10.4
7.8
(:
Mgr /prop
642
16.8
75T+
82
3.6 79
4.4
Clerical
684
17.9
Median
$ 27005
$ 30191
r
Sales
453
11.9
Average
$ 30339
$ 33622
WH /COL
2482
65.0
Crafts
444
11.6
Per capita
income $
9659
Operatives
254
6.7
(1
Service
441
11.6
SCHOOL
YRS COMPLETED
Laborer
117
3.1
Population
age 25+
3857
Farm worker
81
2.1
High school
only
35.5%
r.
BL /COL
1338
35.0
College
1 -3 years
21.2%
i
College
4+ years
31.2%
LABOR FORCE
%
UNEMP
PARTIC
Median
school years
12.3
Male
2296 58.3
3.7%
88.0%
Female
1645 41.7
2.2%
65.1%
POP 18 -34
IN COLLEGE
16.6%
In Armed
Forces 0.0%
VEHICLES /HSHLD
% % W /TELEPHONE
WORKERS /FAMILY
% AVG INCOME
0
40
1.8 Owner hshld
99.9
0
4.6
$ 11533
1
446 19.7
Renter hshld
95.6
C. -
1
22.1
$ 30484
2
1206 53.3
Hshldr 65+
94.2
2+
73.3
$ 35946
3+
570 25.2
SCHOOL ENROLLMENT
% PVT
VETERANS
ANCESTRY
%
Nursery school
140
81.0
May 1975>
19 Dutch
0.4
Elementary
K -8 1192
17.9
Vietnam
333 English
13.1
High school
657
7.0
Korea
170 French
6.9
-
College
392
48.1
World Wars
255 German
43.0
Greek
0.3
HOUSING UNITS
2478
UNITS
/STRUCTURE
%
Hungarian
0.1
_
Owner occ
68.3%
1
1864
75.4
Irish
13.2
Renter occ
23.1%
2
77 3.1
Italian
1.4
Vacant yr -round
8.1%
3 -4
73 3.0
Norwegian
2.8
Vacant seasonal
0.6%
5+
456
18.5
Polish
2.4
Portuguese
0.0
- -- -BUILT
% - - --
-- -MOVED
IN $ --
Russian
0.0
OWNER RENTER
OWNER
RENTER
Scottish
0.2
1975 -80
24.2
17.8
51.5
85.5
Swedish
2.4
1970 -74
i9.1
26.9
18.7
9.6
Ukrainian
0.0
1960 -69
25.4
35.5
20.4
3.4
Other
4.3
1950 -59
16.1
6.4
6.6
1.2
< - -1949
15.2
13.4
2.8
0.3
FOREIGN BORN
2.1
Source: 1980 Census STF3
James B. McComb & Associates 14
Cbmultards in Econcau s, Development and Govemment Finance
(CS)
C
TABLE 6 (Continued)
INCOME: 1970 -80 -82
CHANHASSEN TRADE AREA
:t
v
Median Family Income
Average Family Income
$ 14029 $ 30191 $ 34753
$ 16247 $ 33622 $ 38141
Source: 1970 -80 Censuses, UDS Estimates
James B. McComb & Associates 15
CdsuttaNS 0 Emnanics. Deve/opme,& and Govemmen! Finance
(IN)
i
1970 Census
1980 Census
1982
Est.
POPULATION
5076
7225
7571
In Group
Quarters
85
255
255
PER CAPITA
INCOME
$
4058
$
9659
$
11098
AGGREGATE INCOME ($Mil)
20.6
69.8
84.0
HOUSEHOLDS
1349
%
2263
%
2422
%
By Income
Less than
$
5,000
130
9.7
71
3.2
47
2.0
$ 5,000
- $
7,499
149
11.1
48'
2.1
56
2.3
C
$ 7,500
- $
9,999
165
12.2
106
4.7
75
3.1
$ 10,000
- $
12,499
177
13.1
139
6.1
121
5.0
$ 12,500
- $
14,999
202
14.9
91
4.0
120
5.0
$ 15,000
- $
17,499
179
13.3
139
6.1
96
4.0
$ 17,500
- $
19,999
106
7.9
166
7.3
123
5.1
$ 20,000
- $
22,499
66
4.9
128
5.7
168
6.9
$ 22,500
- $
24,999
43
3.2
125
5.5
104
4.3
$ 25,000
- $
27,499
29
2.1
147
6.5
115
4.8
$ 27,500
- $
29,999
21
1.6
131
5.8
123
5.1
$ 30,000
- $
34,999
27
2.0
272
12.0
258
10.6
$ 35,000
- $
39,999
15
1.1
251
11.1
247
10.2
$ 40,000
- $
49,999
17
1.2
214
9.5
397
16.4
$ 50,000
- $
74,999
15
1.1
151
6.7
266
11.0
$ 75,000
+
9
0.7
82
3.6
105
4.3
Median Household
Income
$
13156
$
27005
$
31212
Average Household Income
$
15034
$
30339
$
34437
FAMILIES
1192
%
1796
%
1902
%
By Income
Less than
$
5,000
68
5.7
34
1.9
19
1.0
$ 5,000
- $
7,499
85
7.1
26
1.5
25
1.3
$ 7,500
- $
9,999
145
12.2
51
2.8
40
2.1
$ 10,000
- $
12,499
177
14.9
66
3.7
57
3.0
`
$ 12,500
- $
14,999
196
16.5
53
3.0
60
3.2
$ 15,000
- $
17,499
177
14.9
62
3.'4
54
2.8
$ 17,500
- $
19,999
105
8.8
120
6.7
55
2.9
$ 20,000
- $
22,499
65
5.5
105
5.8
120
6.3
$ 22,500
- $
24,999
42
3.6
112
6.2
84
4.4
$ 25,000
- $
27,499
28
2.3
142
7.9
98
5.1
$ 27,500
- $
29,999
20
1.7
117
6.5
115
6.0
$ 30,000
- $
34,999
26
2.2
257
14.3
235
12.4
$ 35,000
- $
39,999
15
1.3
244
13.6
232
12.2
$ 40,000
- $
49,999
17
1.4
187
10.4
369
19.4
$ 50,000
- $
74,999
15
1.2
141
7.8
240
12.6
$ 75,000
+
9
0.8
79
4.4
99
5.2
:t
v
Median Family Income
Average Family Income
$ 14029 $ 30191 $ 34753
$ 16247 $ 33622 $ 38141
Source: 1970 -80 Censuses, UDS Estimates
James B. McComb & Associates 15
CdsuttaNS 0 Emnanics. Deve/opme,& and Govemmen! Finance
(IN)
i
l
TABLE 6 (Continued)
POPULATION PROFILE: 1980
CHANHASSEN TRADE AREA
(
Source: 1980 Census STF1
F
j James B. McComb & Associates 16
Cb=ltaft in Ecmanics, Deve
IopnerH and Govfnwnent Finance
POPULATION
7225
HOUSEHOLDS
2263 AVG
HH
SIZE
3.08
^
GRP QTRS
/INST
255
FAMILIES
1796 AVG
FAMILY
SIZE
3.55
AGE
$
MALE FEMALE
HOUSEHOLD TYPE
%<18
$65+
<1
115
1.6
58
57
Families
1796
65.7
7.7
1 -2
254
3:5
143
Ili
Married -cpl
1613
65.6
3 -4
231
3.2
122
109
Male /no wife
52
45.8
5
104
1.4
57
47
Fem /no husb
132
74.9
C`
6
111
1.5
49
62
Non - family
467
1.5
15.3
7 -9
382
5.3
199
184
1- Person
363
18.1
10 -13
583
8.1
297
285
14
149
2.1
76
72
MARITAL STATUS
% M
% F
15
157
2.2
79
78,
Single
1578
55:1
44.9
16
157
2.2
81
75
Married
3285
50.3
49.7
,;r
(
17
156
2.2
84
72
Divorced
237
46.7
53.3
18
158
2.2
64
94
Widowed
135
19.7
80.3
19
165
2.3
79
87
Separated
60
49.3
50.7
20
144
2.0
67
77
21
142
2.0
75
67
RACE
%
%<18
$65+
22 -24
359
5.0
186
173
White 7138
98.8
33.0
3.9
Q'
25 -29
631
8.7
330
302
Black
10
0.1
41.1
0.0
30 -34
761
10.5
379
382
Am Ind
22
0.3
32.2
4.6
35 -44
1122
15.5
584
539
Asian /PI
46
0.6
52.2
6.5
45 -54
676
9.4
352
324
Japanese
2
0.0
55 -59
251
3.5
147
104
Chinese
4
0.1
60 -61
62
0.9
28
34
Filipino
9
0.1
62 -64
69
1.0
31
38
Korean
17
0.2
f65
-74
174
2.4
80
94
India
4
0.1
75 -84
87
1.2
37
50
Vietnam
11
0.1
85+
24
0.3
7
17
Hawaiian
0
0.0
Total
7225
3689
3534
Guam
0
0.0
65+
285
3.9
124
161
Samoan
0
0.0
�-
Other
10
0.1
40.3
10.1
r
Median
26.9
27.0
26.9
Spanish
30
0.4
55.3
3.4
SPANISH
ORIGIN
BY NATIONALITY
$
Spanish
30
0.4
SPANISH ORIGIN
BY
RACE
%
i-
Mexican
12
0.2
Total
30
i
Puerto
Rican
2
0.0
White
21
69.1
Cuban
0
0.0
Black
0
1.5
r
Other
Spanish
16
0.2
Am Ind /Asian
5
16.8
Non Spanish
7195
99.6
Other
4
12.7
Source: 1980 Census STF1
F
j James B. McComb & Associates 16
Cb=ltaft in Ecmanics, Deve
IopnerH and Govfnwnent Finance
The retail purchasing power generated by residents of the
Chanhassen trade area is shown in Table 7. These projec-
tions estimate the potential for sales for various types
of stores which will be generated by residents of the trade
area in 1983 through the year 2000. These serve as an
indication of the total trade area potential from which
stores in the Chanhassen' CBD can draw. These figures are
derived from per capita expenditures in 1977 as measure by
the 1977 census of retail trade for the Twin Cities
Metropolitan Area (TCMA). Average per capita expenditures
for the TCMA were adjusted upward to allow for higher income
characteristics of the Chanhassen trade area. An average
annual increase of 6.0 percent was used for projection
purposes.
In estimating the potential for new retail stores in the
Chanhassen CBD; consideration was also given to potential
sales which might be developed by people working in the
Chanhassen Business Park and trade which might be captured
from traffic on Highway 5. Some convenience store trade
will be realized from visitors to the Chanhassen Dinner
Theatres, but this will be a small part of total sales
volume potential.
In order to measure the potential for a new retail
development, it is necessary to evolve a development con -
C. cept. With a concept in mind, it is possible to estimate
the attraction which the new development would have and
thereby determine whether sufficient potential exists within
the trade area to support the development concept. The
concept assumed for the Chanhassen CBD would be a shopping
center, or cohesive group of convenience stores, anchored by
a supermarket. An anchor such as a supermarket is necessary
to create the attraction which will help to support
ancillary stores. . The development concept envisioned for
this analysis assumes a convenience shopping center anchored
by a 25,000 to 30,000 square foot supermarket of medium to
high quality.
This analysis measured the attraction of such a supermarket
against the potential for supermarket sales generated within
the trade area. It was estimated that the supermarket could
capture approximately 35 percent of supermarket sales
generated within the trade area. This indicated that a
supermarket could attain sales of approximately $85,600 per
week in 1985. A supermarket of this type would require
square foot sales of approximately $5.30 to be feasible,
indicating that sales volume potential would support super-
market space amounting to only 16,000 square feet. Thus,
sales volume potential available would not be adequate to
support the proposed 25,000 to 30,000 square foot super -
market in 1985.
James B. McComb & Associates 17
Consuttant in Economics. Development and Govemment Finance
Table 7
DOWNTOWN CHANHASSEN
PURCHASING
POWER
m
3
TRADE AREA
N
°3
(In Thousands
Of
Dollars)
s.
m �
0
O
-.
RETAIL CATEGORY
1983
1984
1985
1986
1987
1988
1989
1990
1995
2000
3
--- - -- --- - ----
- -
- - - - --
- - - - --
------
CY
TOTAL SALES
$ 33,377
$
39,547
$ 47,322
$ 55,942
S 66,020
S 76,599
$
88,883
$
102,441
$
190,099
$
34I,DDS
PO
N
BLDG MTLS /ETC
2,831
3,354
4,014
4,745
5599
6,497
7,539
8,689
16,123
29,006
O
0
PAINT /GLASS /ETC
132
156
187
221
261
303
351
405
751
1,352
I?
HARDWARE
457
591
697
765
903
1,098
1,216
1,901
2,601
4,678
w
GENERAL MDSE.
6,677
7,910
9,466
11,190
13,205
15,322
17,779
20,491
38,025
68,409
N
DEPARTMENT STORE
6,027
7,141
8,545
10,102
11,921
13,832
16,050
18,498
�- 34,327
61,755
3
VARIETY STORE
213
252
302
357
421
489
567
654
1,214
2,183
FOOD STORE _
$ 8,994
$
10,658
$ 12,753
$ 15,076
$ 17,792
$ 20,643
$
23,953
$
27,608
$
59,852
$
92,167
GROCERY
8,528
10,105
12,091
14,293
16,869
19,572
22,710
26,175
48,573
87,384
MEAT & FISH
152
i80
216
255
301
349
405
467
867
1,559
FRUIT & VEGT.
20
24
29
34
40
47
54
62
116
208
CANDY &NUT
41
48
58
68
80
93
108
125
231
416
BAKERY
152
180
216
255
301
.349
405
467
867
1, 5:59
00
OTHERS
101
120
144
170
201
233
270
311
578
1,040
APPAREL & ACCES.
--------- --- - --
$ 1,654
$
11960
$ 2,34.5
$ 2,772
$ 3,271 .$
3,796
$
4,404
$
5,076
$
9,420
$
16,946
MENS & BOYS
355
421
504
595
702
815
946
1,090
2,023
3,639
WOMENS
649
769
921
1,088
-1,284
1,490
1,729
1,993
3,699
6,654 '
FAMILY
345
409
489
578
682
792
919
1,059
1,965
3,535
SHOES
244
289
345
408
482
559
648
747
1,387
2,495
OTHER
71
84
101
119
140
163
189
218
405
728
FURNITURE /HOME /ETC
$ 1,705
$
2,020
$ 2,417
$ 2,857
$ 3,372
$ 3,912
$
4,539
$
5,232
$
9,709
$
17,466
FURNITURE & HOME
934
1,106
1,324
1,565
1,846
2,142
2,486
2,865
5,317
9,565
FURNITURE
507
601
719
850
1,003
1,164
1,351
1,557
2,889
5,198
HOME FURN.
426
505
604
714
843
978
,1,135
1,308
2,427
4,367
APPLIANCE
- 172
204
245
289
341
396
459
529
982
1,767
RADIO,TV & MUSIC
548
649
777
918
1,084
1,257
1,459
1,662
3,121
5,614
RADIO & TV
345
409
489
576
682
792
919
1,059
1,965
3,535
MUSIC
223
264
316
374
442
512
, 594
685
1,271
2,287
RECORDS
71
84
101
119
140
163
189
218
405
728
INSTRUMENTS
132
156
187
221
261
303
351
405
751
1,352
EATING & DRINKING
"-'--------'--- -
$ 3,531
$
4,184
$ 5,006
$ 5,918
$ 6,984
$ 8,103
$
91403
$
10,837
$
20,111
$
36,:80
EATING PLACES
2,993
3,546
4,244
5,017
5,921
6,869
7,971
9,187
17,048
30,670
DRINKING PLACES
538
637
762
901
1,064
1,234
1,432
1,651
3,063
515i0
DRUG STORES
$ 1,136
$
1,346
$ 1,611
$ 1,905
$ 2,248
$ 2,608
$
3,026
$
3,488
$
6,472
$
11,644
ui
Table 7 (Continued)
DOWNTOWN CHANHASSEN PURCHASING POWER
TRADE AREA
(In Thousands Of Dollars)
,1984
1985
3
1988
CD
s. m
C)
2000
n
______
3,282 $
C)
_1986_
4,643 $
0
RETAIL CATEGORY
_1989_
7,377 $
_1990_
8,502 $
rr
MISC. STORES
1,005
1,190
1,424
LIQUOR
N
MISC. SHOP. GDS.
O
SPORT GDS /BIKE
6.
BOOKS
i
STATIONERY
CD
N
JEWELRY
2,810
HOBBY /TOY /GAME
3,783
CAMERA /PHOTO
81090
GIFTS
T
LUGGAGE
590
SEWING /NEEDLE
823
FLORISTS
iidd
CIGAR
f
NEWS
132.
PETS
187
TYPEWRITER
261
OPTICAL
351
MAILORDER
Table 7 (Continued)
DOWNTOWN CHANHASSEN PURCHASING POWER
TRADE AREA
(In Thousands Of Dollars)
,1984
1985
1987
1988
2000
_1983_
$ 2,770 5
______
3,282 $
______
3,927 $
_1986_
4,643 $
______
5,479 $
______
6,357 5
_1989_
7,377 $
_1990_
8,502 $
_1995_
15,776 $
______
28,382
1,005
1,190
1,424
1.,684
1,987
2,305
2,675
3,083
5,721
10,293
1,421
1,683
2,014
2,381
2,810
3,260
3,783
4,360
81090
14,555
416
493
590
697
823
955
1,108
1,277
2,369
4,263
132.
156
187
221
261
303
351
405
751
1,352
101
120
144
170
201
233
270
311
578
1,040
284
337
403
476
562
652
757
872
1,618
2,911
71
84
101
119
140
163
189
218
405
728
71
84
101
119
140
163
189
218
405
728
162
192
230
272
321
373
432
498
925
1,663
20
24
29
34
40
47
54
62
116
208
162
192
230
272
321
373
432
498
925
1,663
152
180
216
255
301
349
405
467
867
1,559
41
48
58
68
80
93
108
125
231
416
10
12
14
17
20
23
27
31
58
104
20
24
29
34
40
47
54
62
116
208
10
12
14
17
20
23
27
31
58
104
112
132
158
187
221
256
297
343
636
1,144
538
637
762
901
1,064
1,234
1,432
1,651
3,063
5,510
(r
—
The same analytical procedure was applied to trade area
purchasing power for 1990. It was determined that the
assumed supermarket could generate sales of approximately
$185,500 per week in 1990. This would be adequate to
support a 25,000 square foot supermarket. Thus, the deve-
lopment concept becomes achievable by 1990 or, assuming a
conservative flavor to these projections, as early as
-
1988.
i
In arriving at these estimates, the competitive situation
shown in Table 8 was assumed. Major competition at the
present time is presented by The Country Store at Highways 7
and 101 and Driskill's Super Valu at Highway 5 and Eden
Prairie Road. The Driskill's Super Valu at Highways 7 and
41 is also of significant importance. Completion of the Cub
(,f
Foods store at Highways 7 and 101 will add a new dimension
to the competitive situation. Cub Foods is a strong compe-
7
titor and will draw significantly from the Chanhassen trade
area. Locations of major competitors are also shown on Map
3
Table 8
COMPETITIVE SUPERMARKETS
Supermarket
Driskill's Super Valu
Hwy 5 & Eden Prairie Rd.
Driskill's Super Valu
Hwys. 7 & 41
Country Store
Hwys. 7 & 101
Country Club
Hwys. 7 & 101
Country Club
Excelsior & Eden Prairie Rd.
Haug's Super Valu
Excelsior & Eden Prairie Rd.
Super Valu
Waconia
IGA
Waconia
Cub Foods (Planned)
Hwys. 7 & 101
Source: Retail Systems Inc. and
James B. McComb & Associates
James B. McComb & Associates 20
cc_3 ?: ZS. _.,._x wvemms�tF ^:arse
Total
Sauare Feet
22,300
19,000
38,000
21,400
15;000
25,000
10,000
15,000
80,000
A
Other Retail Potential
Retail shopping centers are generally classified into three
groups -- convenience centers, community centers, and regional
shopping centers. As described previously, convenience
centers serve the day -to -day needs of residents of the
immediate trade area. Regional shopping centers, also
described as shoppers goods centers, are composed of stores
which satisfy the major shopping needs of residents of a
much larger trade area. They are anchored by major depart-
ment stores and include stores which are usually shopped on
a less frequent basis -- clothing, shoes, books, sporting
goods, etc. Community centers are larger than. convenience
centers, but smaller than regional centers. They are
usually a mixture of convenience and shoppers goods stores,
sometimes being anchored by a discount department store on
one end and a supermarket on the other.
The potential for a community or regional shopping center in
the Chanhassen CBD is severely limited by the small popula-
tion of the trade area which the center would serve and by
the presence of major shopping facilities already in place
in the market area. A center of either of these types would
be competing for sales dollars with major facilities such as
the Eden Praire Center, Southdale, Ridgedale, K -Mart and
Target.
It would be possible for individual shoppers goods stores to
locate in Chanhassen. However, they would have to be
unique -- capable of drawing customers on their own without
the support of compatible shoppers goods stores. Most
shoppers goods stores need the cumulative attraction
created by a shopping center in order to survive. While it
is possible that individual shoppers goods stores could be
attracted to Chanhassen, it is generally not feasible to
plan or construct store space specifically for this pur-
pose. If individual shoppers goods stores are interested in
locating in the Chanhassen CBD, it is possible that they
could be accommodated in the proposed convenience center or
in subsequent expansion of the retail facility.
Specialty, or theme centers, are a relatively recent
addition to the retailing community. These centers create a
specialized attraction in the form of a theme and /or by the
" specialized stores which are included in the center. By
virtue of their unique quality in a given market area, they
are able to cut across the trade areas of conventional
shopping centers and attract customers from a large dis-
tance. A primary example in the Twin Cities Metropolitan
Area is St. Anthony Main.
a
James B. McComb & Associates 21
CM4U/fanCS in Eoxcmlcs, DeveloprmN and Govemment Finance
C!
Specialty centers very often key on a unique and attractive
feature to create an image. Historical themes, for example,
G- are popular. In each development, a particular strength is
j identified and the center's theme is keyed on that strength.
The major strength in Chanhassen is the Chanhassen Dinner
Theatres and the entertainment image which it creates. The
Dinner Theatres is a very strong attraction, drawing approx-
imately 300,000 people to Chanhassen each year. The theatre
draws from long distances, with one -third of its clientel
coming from outside the TCMA and more than 10 percent coming
from outside the state of Minnesota. Locally, the theatre
draws heavily from Minneapolis and the western suburbs. An
'^ analysis of theatre patrons showed that they include a high
,. proportion of people in better paying occupations and a high
proportion of young to middle age adults.
An attempt should be made to capitalize on the strength
Office Market Potential
The market for office space in any given community is
supported by the population base of the 'community,
industrial firms and commercial establishments. As dis-
cussed earlier in this report, the population base of
Chanhassen is growing. The population of Chanhassen is
projected to grow to 12,400 by 1990 and 22,650 by the year
2000. The industrial base of the community is also growing.
The Chanhassen Business Park and the Opus development
fr provide ample room for new industry. The westward pro-
gression of industrial development along Highway 5 through
Eden Prairie is beginning to be felt in Chanhassen. The
— commercial base in Chanhassen is relatively small, but
j growing. Implementation of the CBD redevelopment plan will
foster more commercial growth.
James B. McComb & Associates 22
Cawftarots in Ecmanits, Development and Govemmmt Finance
created by the presence of the Chanhassen Dinner Theatres.
'—
A concept which was uncovered in this analysis is a
specialty center retail concept which would be compatible
with the entertainment image and the types of patrons the
Dinner Theatres attracts. This concept visualizes a
specialty shopping center of 60,000 to 70,000 square feet
'
anchored by one or two unique concentrations of specialty
stores -- specifically, a concentration of stores selling the
products of Minnesota artists and artisans and a concen-
tration of antique stores. One or two specialty restaurants
would provide additional attraction and serve as a third
anchor. The specialty center would be complimented with
additional shops such as those identified in Table 9. The
potential for a specialty center of this type exists now and
could be implemented at any time a developer is found to
i
pursue the project.
Office Market Potential
The market for office space in any given community is
supported by the population base of the 'community,
industrial firms and commercial establishments. As dis-
cussed earlier in this report, the population base of
Chanhassen is growing. The population of Chanhassen is
projected to grow to 12,400 by 1990 and 22,650 by the year
2000. The industrial base of the community is also growing.
The Chanhassen Business Park and the Opus development
fr provide ample room for new industry. The westward pro-
gression of industrial development along Highway 5 through
Eden Prairie is beginning to be felt in Chanhassen. The
— commercial base in Chanhassen is relatively small, but
j growing. Implementation of the CBD redevelopment plan will
foster more commercial growth.
James B. McComb & Associates 22
Cawftarots in Ecmanits, Development and Govemmmt Finance
Table 9
PROPOSED SPECIALTY CENTER CONCEPT
Anchors:
Concentration of Antique Stores
Concentration of Minnesota Artists and Artisans
Paintings and Prints
Potters
Tiles
Custom Jewelry
Photographs
Leather
Wood Carving
Sculpture
Restaurants
Additional Shops
Needlepoint & Yarn Shop & Workshop
Hobby /Crafts
Unfinished furniture
Wallpaper /Paint
Dollhouse Store & Workshop
Bakery
Restaurant
Poster Gallery
Frame Shop
Gourmet Trappings & Cooking School
Specialty Book Store /Art, Cooking,
European Florist
Hagen Daz (or comparable)
Source: James B. McComb & Associates
James B. McComb & Associates
23
Cbrw&- & M Ecvamic , Developfne and Gw mmant Finance
Antiques, Crafts, etc.
I�
Office development is beginning to progress westward from
the hub in the vicinity of I -494 and Highways 5/169/212.
(7 Major office development in this area is shown on Map 4,
which is keyed to the list of office developments shown in
Table 10.
r-
(u) = under construction
(a) = approved by City
(p) = planned
�- Source: James B. McComb & Associates
i
i James B. McComb & Associates 24
Coiw&- -Z m Economics, Development and Gommnw# Finance
Table 10
C'
DOWNTOWN CHANHASSEN STUDY
EDEN PRAIRIE OFFICE DEVELOPMENT,
EXISTING, APPROVED, PLANNED
i Map
Key
Date
Building Name
Sq. Ft.
A
1975
Gelco
100,000
A
1979
Cabriole Center
46,600
A
Cadarelle
37,000
B
1980
Suburban National Bank
22,000
C
Super Valu
148,000
B
Minnesota Protective Life
66,000
A
1981
Gelco - addition
200,000
B
Prairie Lakes Business Park
139,000
D
1982
Bryant Lake Office Park
144,000
B
Single Tree Office Center
21,500
B
AID Insurance
41,000
D
1983
Idlewild Office Center (a)
95,000
C
Bryant Lake Office Technical Center (a)
80,000
E
City West Business Center (a)
155,000
B
Welsh Offices (u)
16,000
B
ISD (u)
31,000
E
James Refrigeration (a)
34,000
r F
Flying Cloud Business Center (a)
24,000
E
CRC Office Building (a)
19,000
G
E. A. Sween Co. - addition (u)
14,000
A
Cherne (u)
85,000
E
Prime Tech (phased) (p)
170,000
A
Welsh Construction (p)
37,000
r
(u) = under construction
(a) = approved by City
(p) = planned
�- Source: James B. McComb & Associates
i
i James B. McComb & Associates 24
Coiw&- -Z m Economics, Development and Gommnw# Finance
C..
C
C'
Map 4
OFFICE DEVELOPMENT IN EDEN PRAIRIE
.....
�:...
ST... S.
LBANSi'r'r ��
BAY :' Lake
Como
`take
ALu'r
Lotus
Lake
+
-f SITE
=t114
Susan
�L
E
E Ro,: .±4
¢ ® 494 Bryant
x Lake 212
m
MEWL_ C
I p 1LlARPEi I PALLET
Round
Lake <
F.A.S.
m� ®G 5 -:/ F A.S. 18. 71TH ST. F A F.
D ®'d
hell
L ♦ EDEN ke 7
e` PRAIRI y w
Red Roe k; PO P. erss �Ande A
R
aka a o �.
Oy
g Lek
�ter'ing ® c,
— =L
4.
Purge,O N f -
James B. McComb & Associates 25
Consultants in Economics, Development and GovemmeM Finance
FLYING CLOUD
AIRPORT
0 t
Scale in Mlles
ul� �i
AJ
p
Glen
J
sh
Lake
Rose
Lake
° .
Birch
\Is`andy;,
�L
E
E Ro,: .±4
¢ ® 494 Bryant
x Lake 212
m
MEWL_ C
I p 1LlARPEi I PALLET
Round
Lake <
F.A.S.
m� ®G 5 -:/ F A.S. 18. 71TH ST. F A F.
D ®'d
hell
L ♦ EDEN ke 7
e` PRAIRI y w
Red Roe k; PO P. erss �Ande A
R
aka a o �.
Oy
g Lek
�ter'ing ® c,
— =L
4.
Purge,O N f -
James B. McComb & Associates 25
Consultants in Economics, Development and GovemmeM Finance
FLYING CLOUD
AIRPORT
0 t
Scale in Mlles
The opportunity for development of office space in the
Chanhassen CBD will be present by at least 1985. It is
estimated that approximately 20,000 to 30,000 square feet of
office space could be supported in Chanhassen by 1985.
Continued growth of the population, industrial and com-
mercial base could support an additional 50,000 to 75,000
square feet of office spate by 1990. The primary market for
office space will be with the small firms providing business
and personal services, i.e. insurance, attorneys, manu-
facturers reps, etc. Continued residential growth will also
increase the need for medical and dental offices.
Summary
(-
The market analysis has indicated that there is potential
r for development in the Chanhassen CBD. Three specific
markets have been identified - -a convenience retail center, a
specialty center and office space.
r
I
Potential exists for the development of a convenience center
to serve the day -to -day needs of Chanhassen area residents.
Market support exists for 20,000 to 25,000 square feet of
retail space and service shops in 1985. By 1990, the
potential will increase to 35,000 to 40,000 square feet.
The potential for a conventional, full -scale supermarket is
limited until 1988 -1990. However, the initial convenience
center development could be anchored by a limited service
grocery store such as a Kenny's of 7,000 to 10,000 square
feet.
Sufficient potential was not identified to support the
development of shopping center space for shoppers goods type
stores. However, a unique specialty center concept was
identified. A specialty center oriented around artists
products, antiques, and specialty stores with an arts and
crafts orientation was identified This center would be
anchored by concentrations of stores featuring the products
of Minnesota artists and artisans and antique dealers. One
or two specialty restaurants would increase the attraction
of the center. A specialty center of this type containing
60,000 to 70,000 square feet of floor area is marketable in
1985.
A potential for development of office space in the
Chanhassen CBD was identified. Twenty thousand to thirty
thousand square feet of space could be developed in 1985.
An additional 50,000 to 75,000 square feet could be
developed by 1990.
A summary of market potential is shown in Table 11.
James B. McComb & Associates 26
Casuttards in Earam m. Dwebwarg and Go mart Finance
-j
Table 11
SUMMARY OF MARKET POTENTIAL
Convenience Center Potential
C" 1985
20,000 - 25,000
sq.
ft.
1990
15,000 - 20,000
sq.
ft. (additional)
Specialty Center
Potential
1985
60,000 - 70,000
sq.
ft.
C 1990+
Expandable per market success
Office Space
1985
20,000 - 30,000
sq.
ft.
1990
50,000 - 75,000
sq.
ft. (additional)
(
Source: James B. McComb & Associates
James B. McComb & Associates 27
Cawlants in Ecwxw i , Development and Covemmea Finance
BOB'S LAWN & LANDSCAPING INC.
15750 Pioneer Trail
EDEN PRAIRIE. MINNESOTA 55344
DATE
1-6 -83
Phone 937.1749
Chanhaa -en Housing & Redvelopnent
690 Coulter Dr.
Chanhaq ^en, iin. 5317
,uw n: ^coit :Lartin
AMOUNT ENCLOSED $
RETURN THIS PORTION WITH PAYMENT
CHARGES AND CREDITS
Remove snow ice from metal roof
011.
CITY OF CHANHASSEN
pc!'FIVED
.IAN - 91984
AMOUNT
$2,400
COMMUNITY LOPIVI.N' U P4VL43T gMOUNT
IN THIS COLUMN
@IIat 27
MINNEAPOLIS • CHEYENNE • DENVER • SRECKENRIOGE • PHOENI%
City of Chanhassen
7610 Laredo Drive
Chanhassen, MN 55317
ATTN: Mr. Scott Martin
INVOICE
DATE:. November 30, 1983
JOB NO: 62 -8214
RE: Engineering /Planning /Surveying Services for Downtown Redevelopment Project
as per Agreement
Per Diem Services - Phase I Work Tjsk 1.7
o Preparation of revised tax parcel map
Period of November, 1983
Classification Hours
Associate 1.00
Technician 4.00
Salary Cost - $ 76.00
Fee - $ 76.00 x 2.0 = $ 152.00
6.K.' tt1I503
�
/
CITY OF CHANHASSEN
R =f'F'IV ED
I
I
EI
a
E
fOMMUNITY DEVELOPMENT DEF
SENNETT. RINGROSE, WOLSFELD, JARVIS, GARDNER. INC. • 2829 UNIVERSITY AVENUE SE • MINNEAPOLIS, MN 55414 • PHONE 61213794676
James B. McComb & Associates
830 TCF Tower • 121 South Eighth Street
Minneapolis, Minnesota 55402
612/338 -9014
December 28, 1983
Statement #938
Mr. Scott A. Martin
Executive Director
Chanhassen Housing & Redevelopment Authority
690 Coulter Drive
P. 0. Sox 147
Chanhassen, HN 55317
STATEMENT
Professional Services - per agreement $2,800.00
p K.
4t qty _ a21
TERMS: Net ten days. Interest (at the rate of 1.5 percent
per month) will be charted on all balances outstanding at
ithe end of the month.
I
Consultants in Economics, Deveioprre and Government Finance
r
CITY OF CHANHASSEN
P=fP FIVED
ULC 3 093
C,BMMUNITY DEVELOPMENT OEP
II
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