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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. nl r- a 4-3 ® CHANHASSEN HOUSING & REDEVELOPMENT AUTHORITY 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317 (61 2) 937.19--0t0 r� I ate. Y2.�R is scaf -` IS (2"C'CXfI'lS� MEMORANDUM TO: Chanhassen Housing and Redevelopment FROM: Scott A. Martin, Executive Director DATE: January 17, 1984 SUBJ: January Meeting Agenda 1 / 11 +0 V e-y-e Ad- de_hVC.Ya e f0 J 0-�+y H,0 orn F,('du kl, H7o#x att f *key wilt bG de /iveYel fo oK urtdeV �Pa ✓a +c co✓ev 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 , La 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, - � •� tttttt,,,,,,ggqqqq u .a..T � < fir p`r .,�.`�n,f •aF .r; 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 r 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. r 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 r _ r i . ! F F I I P l 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 r � � t 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 F F l 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 i i F 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 7 F 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. F I F I r I I 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. F r r i 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. C C C DOWNTOWN MARKET STUDY CHANHASSEN, MINNESOTA Prepared for CHANHASSEN HOUSING AND REDEVELOPMENT AUTHORITY Prepared by JAMES B. McCOMB & ASSOCIATES January, 1984 c r- 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 C, C r— l I C� 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 i LIST OF FIGURES, TABLES AND MAPS Figure Title Page 1 Recommended Development Plan iv C Table 1 Population and Households 6 Chanhassen, Eden Prairie and Victoria F (l. 2 Building Permits, 1970 -1982 7 Chanhassen, Eden Prairie and Victoria j 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 - i 11 Summary of Market Potential 27 i M_ ap 1 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 i A- i James B. McComb & Associates i Cowultanft in Eca a xs, DevelopTer# and Govemment Finance C i �^ SUMMARY OF CONCLUSIONS AND RECOMMENDATIONS i r i i 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 r 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 r 20,000 to 25,000 square feet of retail space and service i 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. i r i i 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 C 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 3 w In g. W n 0 R 3 1 a W LM, r• C Figure 1 RECOMMENDED DEVELOPMENT PLAN CHANHASSEN CBD L�_qq ,; 1 /I/ McEUm - Density Hwxrp 4---� $reeNBettn c ea�kl I i / CONVENIENCE RETAIL park" EXPANSION f �I OFFICE/ RETAIL/ SERVICES OFFICE/ camme.11al RETAIL/ SERVICES yyam� ' q *�+Wa'aWYP{lYs"�+'Md `aW � D ^l MuyiYl� i c _ . r -- - r. Hotel S6 pp 2 Haw slay. 1 / J V , L. _ ll ail HO L S CMIWse DnnarT 8d11a OpuQ P9ry' II j } 11 OTHER TAI L iiParknp rJ `I_ '✓ moo� < N v.rcrir O 300 e Scale In Feet e I 1� � \ SUpel IAarkel 1 Pdrknp I CONVENIENCE RETAIL 1 I li"atl: (1115¢ Ilnslnm Wnp P.ltl91 IIIr �, � j� U• GO�X ='OOG ' lu 2 \ \ Parke , O yyam� ' q *�+Wa'aWYP{lYs"�+'Md `aW � D ^l MuyiYl� i c _ . r -- - r. Hotel S6 pp 2 Haw slay. 1 / J V , L. _ ll ail HO L S CMIWse DnnarT 8d11a OpuQ P9ry' II j } 11 OTHER TAI L iiParknp rJ `I_ '✓ moo� < N v.rcrir O 300 e Scale In Feet e C - 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 I C w tar& m Ecw=m , Devet grwo aW Go mment finance C 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. r Q F r F I James B. McComb & Associates 2 1 CmwUnts in Ecmomics, awbpmenf and Go mnwit Fimme C 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 C_ t 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 C (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. r I 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 r 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 r! 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. r I 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 ikw W w 3 CID N �. a) T I � 0 43 Y LT m QO D rn w � O C T I :..: & <' n Map 1 HOUSING UNITS PROJECTED, 1984 -1993 ST. - GALGLJAVR yAY Lake L;.r�•� �'�� ,\ ror ts63 Como ° «� �• 1 i jr..� -.:� a !� S� ` •:. �� t' �I c °m�,? 'boy; - >. 74 SAE al Leka CLeke iE Ia a7pL Chrwk I s s 1�. ak � �Z ,`.. _ ownTi�L�RQ.: Ii Ro 850 Hazeltine Lake Lake Lucy 5 • M M U Z W. 72nD ST f4 j _ _ _ -: VIEW _ \ IARRET Q VALECY� +. F.. 300 5 w.ien ST. EA. $. � Rowland a ,Z ► e CENIC � = S. E 1c�— D l I EDEN " PRAIRI RedRek POP.6938 Z Leka G, Hy • n�Gcoy o .: ° Development Restrictions FLYING CLOUD AIRPORT 9Q 1. N 0 1 Ieele In Mllee c: r S I r C 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 �r i 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 C 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 Consurtants in EcwwKs. Developrmnf and Govemment Finance C� i i C r C 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 r Chanhassen by 1990. At 2.9 persons per housing unit, a total population of 12,400 is projected for 1990. i '— 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 S >N ■ CHANHASSEN Serviae� % ■= MINNESOTA - -0 —. ■e■ 1990 MUSA Line- T Metropolitan Council 1990 MUSA Line - - rea' y Chanhassen �. a I James B. McComb & Associates 9 CasuMards in Ecm inics, Devebprnea and Covemment Finance (I_ 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. c- James B. McComb & Associates 10 Corwftarts in Economics. Deve/omLa and Govemment Finance CI C C 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 I I .l 1 1 1 i I 1 II '1 11 A \ \ I I 1 ►1 ,111 1 I I 1 1 \ = D 1 1 `° z cn I� CD to I mob nrn 11 I \ � I \ \ 1 f \ 1\ 1 1 \ (7� I 1 � II WA G 96 i I � 111 1 1111 I ul 11 11 � \ 1 1 1 i I 1 II '1 11 A \ \ I I 1 ►1 ,111 1 I I 1 1 \ = D 1 1 `° z cn I� CD to I mob nrn 11 I \ � I \ \ 1 f \ 1\ 1 1 \ (7� I 1 � II WA 96 � I � 111 1 1111 I ul 11 11 � \ 1 1 1 1 1 i I 1 II '1 11 A \ \ I I 1 ►1 ,111 1 I I 1 1 \ = D 1 1 `° z cn I� CD to I mob nrn 11 I \ � I \ \ 1 f \ 1\ 1 1 \ (7� I 1 � II WA I 0 \I I r lee, 1 Ii i i I II j L' \ Oo \I �4 C,'Ild f L I'll I /rl I/ J rn I\ 1 1\ \1 �\ I 1 � I\ SRD) ►I i 96 � I � 111 1 1111 I ul 1 \ I 0 \I I r lee, 1 Ii i i I II j L' \ Oo \I �4 C,'Ild f L I'll I /rl I/ J rn I\ 1 1\ \1 �\ I 1 � I\ SRD) ►I i