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Marketing PlanCHANHASSEN, MINNESOTA Preliminary development package for 77-acre mixed-use development RETAIL • OFFICE • HOUSING • ENTERTAINMENT Updated April 3, 2015 12:18 PM TABLE OF CONTENTS ExEcuTivE SummAry .......................................................................................... 3 SiTE LOcATiOn + inFOrmATiOn ................................................................. 5 mArkET FEASiBiLiTy ............................................................................................. 8 dEmOgrAphicS ......................................................................................................... 16 prOjEcT cOncEpTS ................................................................................................ 18 inSpirATiOn .................................................................................................................. 23 cOmmuniTy SuppOrT ........................................................................................ 28 duE diLigEncE ............................................................................................................ 29 LOCATED DIRECTLY ON HIGHWAY 212 FOR EASY FREEWAY ACCESS TRADE AREA INCLUDES CARVER AND SCOTT COUNTIES,THE TWO FASTEST GROWING COUNTIES IN MINNESOTA 50,000 CARS PER DAY ON HIGHWAY 212 prESEnTEd By: Level 7 development Scott Carlston | scott@carlston.com | 612-889-7898 3Quadrant | Chanhassen, Minnesota Quadrant is a proposed 77-acre mixed-use retail, entertainment, office and housing project that will serve the growing Southwest Corridor of the Twin Cities market. OppOrTuniTy This is a unique opportunity to develop a high-end mixed-use project in a trade area with over 400,000 people with average incomes over $103,000 - the highest in the Twin Cities market. There is very little supply in the trade area, capturing less than 3% of shopping goods annually. The site itself is ideally located, with infrastructure in place to support a minimum of 1.2 million SF of retail. The retail that is in the market is experiencing less than 1.4% vacancy. The vision that the developer and the city would like to execute is to create a destination shopping area that will serve the growing trade area. STrATEgy It has been the strategy of the developer to control the site and complete most of the due diligence necessary to attract a national retail developer with the necessary expertise to the project. The developer has not yet approached any regional commercial tenants, and is waiting until a lead developer is in place. The developer has secured interest from community commercial retail, office, and housing uses to supplement the regional center, and has enough interest to fill any space not needed for regional commercial use. EnTiTLEmEnTS The developer has submitted an application that would allow an environmental report pertinent to the project to begin. The city staff is anxious to get a plan in place that fulfills the vision laid out in their comprehensive plan. The current timeline allows for the project to begin moving dirt in the spring of 2016. ExEcuTivE SummAry CHANHASSEN Money Magazine ranked chanhassen 4th in its 2013 “Best places to Live” list Near Hazeltine National Golf Club, host of the 2016 Ryder Cup Matches Home to the Minnesota Landscape Arboretum, drawing 325,000 vistors per year Chanhassen Dinner Theatre draws 275,000 visitors per year, with 50% coming from tour groups Two high schools located within 1.5 miles of the site 4Quadrant | Chanhassen, Minnesota SiTE The site, guided regional commercial / office, is ideally located on the North West corner of the highway 212 and Powers Blvd Intersection. From a geographic perspective, the site is located North of the Minnesota river and South of Lake Minnetonka on the only corridor that extends the trade area. Area attractions include the Chanhassen Dinner Theatre which brings over 300,000 people annually, the Minnesota Landscape Arboretum, Valley Fair, Canterbury Park, and Hazeltine National Golf Club, host of the 2016 Ryder Cup. Additionally, there are also 2 high schools within 1.5 miles of the site with approximately 3,000 students, one of which is located on Lymann Boulevard which borders the site to the north. dEAL STrucTurE The developer is open to all deal structures. ciTy OF chAnhASSEn’S viSiOn FOr ThE prOjEcT As part of their 2030 Comprehensive Plan, the City of Chanhassen’s vision for the project is stated as: A mixed commercial district with retail and entertainment uses of a scale and function that serves a regional market. The physical environment emphasizes an attractive comfortable walking experience for shoppers and visitors and is designed to serve trail users and mass transit as well as automobile traffic. Centers of this type have at least two major retail anchors and are characterized by the diversity and mix of retail and service uses within their boundaries. Goods and Services Examples - Entertainment - Department Store - Comparison Shopping - Specialty Retail / Boutique - Restaurants - Hotels - Residential ExEcuTivE SummAry Scanned copy of the City of Chanhassen’s “Commercial / Regional Retail Development Diagram” 5Quadrant | Chanhassen, Minnesota SiTE LOcATiOn + inFOrmATiOn JANUARY 16, 2015 Landform® and Site to Finish® are registered service marks of Landform Professional Services, LLC. REGIONAL COMMERCIAL, 212 & POWERS CHANHASSEN, MINNESOTA REGIONAL CONTEXT 1 41,0008,800 8,6002 1 2 Chanhassen High School Chaska High School 212 Medical Center X,XXX ADT (Traffic) Available Land (January 2013) Existing trail/sidewalk Distance Comparison Project Site Lyman/Powers to Downtown Chanhassen 2.5 miles, 6 minutes Precedent 1 Village Point to Downtown Omaha, NE 18 miles, 20 minutes Village Point to Shops at Legacy (NE) 2.1 miles, 5 minutes Precedent 2 Shadow Lake Towne Center to Downtown Omaha, NE 1.7 miles, 4 minutes DOWNTOWN PROJECT SITE Flying Cloud Airport ChanhassenChanhassenChaskaEdan PrairieArboretum 1 41,0008,800 8,6002 1 2 Chanhassen High School Chaska High School 212 Medical Center X,XXX ADT (Traffic) Available Land (January 2013) Existing trail/sidewalk Distance Comparison Project Site Lyman/Powers to Downtown Chanhassen 2.5 miles, 6 minutes Precedent 1 Village Point to Downtown Omaha, NE 18 miles, 20 minutes Village Point to Shops at Legacy (NE) 2.1 miles, 5 minutes Precedent 2 Shadow Lake Towne Center to Downtown Omaha, NE 1.7 miles, 4 minutes DOWNTOWN PROJECT SITE Flying Cloud Airport ChanhassenChanhassenChaskaEdan PrairieArboretum Mpls StP Project rEgiOnAL cOnTExT 6Quadrant | Chanhassen, Minnesota SiTE LOcATiOn + inFOrmATiOn JANUARY 16, 2015 Landform® and Site to Finish® are registered service marks of Landform Professional Services, LLC. REGIONAL COMMERCIAL, 212 & POWERS CHANHASSEN, MINNESOTA SITE ANALYSIS Existing residential Potential Connection Densely wooded knoll Neighborhood access Blu Creek BoulevardEmergency access Consider edges, depending on adjacent uses Existing wetlands Highway 212 - 2013 41,000 ADTLyman Boulevard Powers BoulevardAccess to Collector (Lyman Blvd) Signalized access to Regional Corridor (Hwy 212) SiTE cOnnEcTiOnS 7Quadrant | Chanhassen, Minnesota SiTE LOcATiOn + inFOrmATiOn gross Acres net Acreage LCR 37 34 FOX 54 35 212 23 17 212 Lcr FOx currently Zoned: Agricultural property is: Guided, Regional Commercial / Office Site control: The developer has control of the property through July 2016 pArcEL dETAiL 8Quadrant | Chanhassen, Minnesota mArkET FEASiBiLiTy mArkET STudy prOvidEd By: CHAN-212 TRADE AREADEMOGRAPHIC CHARACTERISTICSAND SALES POTENTIALPrepared forCarlston Commercial RE, LLCJune 2014 © Copyright 2014 McComb Group, Ltd. DRAFTThe full market study with key trade area demographics and demographic comparisons for the Minneapolis-St. Paul MSA is available upon request. mArkET STudy highLighTS Quadrant is strategically located at an interchange on Highway 212, a new freeway in the southwest Minneapolis-St. Paul Metropolitan Area. Factors that support retail development of this 91-acre site include: • Quadrant’s trade area population of 407,361 in 2014 is expected to increase to 438,533 in 2019, an annual growth rate of 1.49 percent. • Households are expected to increase at an annual growth rate of 1.5 percent from 157,810 in 2014 to 169,997 in 2019. • Quadrant’s trade area includes Carver and Scott counties, the two fastest growing counties in Minnesota. Between 2010 and 2013, population in Carver and Scott counties grew at annual rates of 1.6 and 1.8 percent, respectively. • Quadrant’s trade area average household income of $103,006 in 2014 is 20 percent above the Minneapolis-St. Paul MSA average household income of $85,611 and 41 percent above the United States average of $72,869. • Quadrant’s trade area average household income is expected to increase to $110,603 in 2019, while median household income is expected to rise to $91,761. • Quadrant’s trade area median household income of $83,841 in 2014 is 55 percent above the national median household income of $53,958. • In 2014, 60,100 households (38.1 percent) are estimated to have household income above $100,000 and is expected to increase to 71,000 (41.8 percent) in 2019. One-quarter of the households (42,113) are expected to have incomes above $150,000 in 2019. • Families comprise 70 percent of all households in 2014 compared to 64.7 percent in the Minneapolis-St. Paul MSA and 66.6 percent in the United States. • Quadrant’s trade area population age 25 plus is well educated with 30.4 and 13.1 percent that hold college and graduate degrees, respectively. This is well above the United States rates of 20.8 and 12.2 percent, respectively. • Quadrant’s trade area population in 2014 is 89.9 percent Caucasian followed by Asian/Pacific Islander (4.0 percent), African American (2.3 percent), Native American (0.4 percent), and Other (3.4 percent). Hispanic (any race) is 4.3 percent. The trade area’s many economic attributes, population, and upper income households provide support for retail stores, restaurants, and services. 9Quadrant | Chanhassen, Minnesota mArkET FEASiBiLiTy SiTE LOcATiOn Quadrant is centrally located in Chanhassen, Minnesota, one of the fastest growing cities in the Minneapolis-St. Paul Metropolitan Area. The 77-acre site, shown on the map to the right, occupies the northwest quadrant of the interchange of Highway 212 and Powers Boulevard. The westbound exit ramp connects to the site’s main entrance street. The eastbound exit ramp is a short distance to the south. Highway 212 is a new freeway connecting southwest Minnesota with the metro area. Highway 212 traffic counts were 50,000 vehicles per day in 2012, a 37 percent increase from 36,500 in 2010. dEmOgrAphic highLighTS Chanhassen is an ideal location for a major retail development: • The city’s average household income was $131,021 in 2014, and is projected to increase to $141,957 in 2019. • Median household income of $107,251 is double the United States median household income of $53,958. • Two-thirds of Chanhassen households have incomes above $75,000 and 54.2 percent have incomes above $100,000. • One-third of the households have incomes above $150,000. Chanhassen’s adult population is well educated with 59.0 percent having a college or graduate degree. • Money Magazine ranked Chanhassen 4th in its Best Place to Live list in 2013. Source: Google and McComb Group, Ltd. Chanhassen’s average household income was $131,021 in 2014, and is projected to increase to $141,957 in 2019. 121 116 101 116 130 152 102 10 30 30 1 6 14 81 7 9 1 18 78 52 17 17 51 3 1 4 14 59 84 49 49 23 23 53 54 4A 4 15 15 15 15 19 18 20 22 75 42 71 38 33 11 42 42 79 17 1 3 3 2 57 44 88 32 35 1 17 5 51 6 47 10 10 61 61 9 4 17 16 78 83 16 16 27 18 32 32 5 30 26 56 31 31 28 10 13 13 17 17 8A 68 12 65 68 12 96 96 10 12 52 101 101 101 101 242 118 610 252 100 280 100 100 47 47 47 47 65 65 65 55 55 55 96 36 95 95 55 55 3 13 13 5 5 5 62 62 62 7 7 13 77 77 3 55 55 55 36 51 36 13 51 5 5 244 120 120 244 149 156 149 110 10 10 10 169 169 169 169 169 169 212 212 61 61 61 61 61 52 52 10 10 10 12 52 94 94 94 94 94 35W 35W 35W 35W 35W 35W 35E 35E 35E 35E 35 494 394 394 494 494 494 494 694 694 694 Franklin Av Henna Av-NMend el Rd-N Lake Elmo Av-N Woodbury DrS. F r o n tage Rd Eagle Creek Bl Wayzata Bl Brooklyn Bl 57th Av-N Cretin Av28th Av-SW. River Pkwy Central Av85th Av-N W. Rive r R d Cedar AvPlymouth Rd Shepard R d Osborne Rd N. Diamond Lake Rd S. Diamond Lake Rd 129th Av-N Bunker Lake Bl Hayden Lk Rd Main St Fernbrook LnZachary LnZachary Ln-NDouglas DrFremont AvSilver Lake RdPenn AvWinnetka AvZane AvUniversity AvLexington AvLexington AvLexington AvWhite Bear AvMcknight RdMcknight RdHodgson RdSunset AvCenterville RdIngersoll Av-NIrish Av-NJamaica Av-NKimbro Av-NKeats Av-NManning Av-NElmo Av-N20th Av-NDouglas DrFletcher LnPinto DrBrockton LnHemlock LnBrockton Ln Bass Lake Rd Troy Ln 89th Av-N 77th Av-N Weav e r Lk R d 85th Av -N Goose Lk Rd I ndustrial Av-NW Hanson Bl Northlake Bl 109th Av-NE Bunke r L ake B l Main St-NE Main St 170th St-N 170th St-N 137th St-N 122nd St-N 110th St-N 75th St-N Main StLake Dr Lake Dr Birch St Frenchman Rd 97th Av-N 93rd Av-N 93rd Av-N Dayton Rd Manning Tr County Rd FCounty Rd F County Rd C County Rd I County Rd J 10th St-N Maryland Av Valley Creek Rd Bailey RdInwood AvTower DrStil lwa t e r Bl Radio Dr Manning Av-N Manning Av-SWoodland Dr Military Rd 70th St-S Keats Av 70th St-S 80th St-S Hadley Av-SPilot Knob RdNicollet Av100th St-S 145th St-E 110th St-WCli Rd Diey Rd 140th St-W 138th St Egan Dr Old Shakopee Rd 98th St 90th St 50th St 38th St 140th St Yankee Doodle Rd 132nd St-EJamaica Av 3rd St Lock B l Nininger Rd Ri ch Val l ey Bl Pilot Knob Rd Burnsville P kw y M cC o l l D r 134th S t Crest Av Auto Club R d Canterbury RdTownline AvMarschall RdPion e e r Tr Prairie Rd Powers Bl Vine Hill Rd Minnetonka Bl Williston Rd Chanhassen RdExcelsior Bl Vicksburg LnRockford R d Bass Lake Rd 58th St-N W.Ri ver Rd E.Ri ver Rd Medicine Lake Rd Vernon Av Old Shakopee Rd Lone Oak Rd 70th St SouthviewBlMendota Rd Annapolis St 80th StBabcock Tr Cahill Av Concord Bl Dodd Rd Ar genta Tr Delaware AvFord Pkwy Randolph Av Summit Av Co m o A v Mississippi River Bl Min n ehaha Pkwy Broadway Av 44th Av-N Lowry Av-NE County Rd C County Rd CMars hall St-NE E. Ri ver Rd Lexington PkwyVictoria St Com o Av Larpenteur Av Frost Av Normandale BlFrance Av-SFrance Av-SPenn AvLyndale AvPortland AvLyndale AvPortland AvPenn AvBr oadway Av Coon Rapids Blvd County Rd E Century AvCourthouse Rd S. Robert Tr Robert StHiawa tha AvW. 7th St Hennepin Av Lake St University Av Hennepin Av Larpenteur Av Snelling AvOls o n M e morial Hwy University Av NECentral Av NEBroadway St Rice StSibley Mem. Hwy MINNEAPOLIS- ST. PAULINT'L AIRPORT ST. PAUL DOWNTOWN AIRPORT LakeNokomis PigsEyeLake White BearLake Lake Minnetonka MedicineLake CedarLake Lakeof theIsles Lake Calhoun LongMeadowLake LakeHarriet Mississippi River PriorLake Baldwin Lake SpringLake M I S S IS S IPPI RIV E R M IN NES O T A RIVER DAYTON CHAMPLIN COON RAPIDS ANOKA ANDOVER BLAINE HAM LAKE LINO LAKES CENTER-VILLE HUGO GRANT DELLWOOD MAHTOMEDI BIRCHWOODVILLAGE WHITEBEAR LAKE NORTH OAKS ARDEN HILLS NEWBRIGHTON ST. ANTHONY ROSEVILLE LITTLECANADA FALCON HEIGHTS LAUDERDALE MAPLEWOOD NORTHST. PAUL PINE SPRINGS LANDFALL LAKEELMO OAKDALE HILLTOP COLUMBIAHEIGHTS FRIDLEY ROBBINSDALE BROOKLYN PARKOSSEO MAPLE GROVE MEDINA PLYMOUTH WAYZATA DEEP- HAVEN MINNETONKA HOPKINS EDINA RICHFIELD BLOOMINGTON BURNSVILLE APPLE VALLEY PRIOR LAKE SAVAGE EDENPRAIRIE SHAKOPEE CHANHASSEN NEW HOPE GOLDEN VALLEY ST. LOUISPARK CRYSTAL CORCORAN BROOKLYN CENTER MOUNDSVIEW SPRINGLAKE PARK CIRCLE PINESLEXINGTON SHOREVIEW VADNAISHEIGHTS GEMLAKE LILYDALE MENDOTAHEIGHTS EAGAN SUNFISH LAKE INVER GROVE HEIGHTS ROSEMOUNT WEST ST. PAUL SOUTHST. PAUL NEWPORT ST. PAULPARK WOODBURY COTTAGE GROVE HASTINGS MINNEAPOLIS ST. PAUL MINNEAPOLIS/ST. PAUL MINNESOTA minneapolis-st. paul Regional Trade Areas Rosedale Mall, Roseville Southdale Mall, Edina Arbor Lakes, Maple Grove Woodbury Ridgedale Mall, Minnetonka Burnsville Center, Burnsville Eden Prairie Center, Eden Prairie Riverdale, Coon Rapids Mall of America, Bloomington Maplewood Mall, Maplewood Community Trade Areas Apple Valley Eagan National Sports Center, Blaine Knollwood, St. Louis Park Uptown, Minneapolis South Robert, West St. Paul Midway, St. Paul Brooklyn Park Northtown, Blaine Brooklyn Center 10 8 2 1 3 4 5 6 7 9 10 9 2 1 5 6 9 10 8 3 3 8 4 5 7 4 6 2 1 7 8 2 1 3 4 5 6 7 9 10 prOjEcT SiTE 11Quadrant | Chanhassen, Minnesota mArkET FEASiBiLiTy minnEApOLiS / ST pAuL rETAiL TrAdE ArEAS Source: Colliers International Minneapolis / St. Paul Q4 2014 Retail Market Report 12Quadrant | Chanhassen, Minnesota Trade area SF vacanT % vacanT Q4 abSorpTion YTd abSorpTion Ridgedale 2,099,343 1,269 0.1%0 (1,269) Eden Prairie 2,425,004 33,492 1.4%22,749 547 Southdale 5,235,374 79,814 1.5%135 64,243 Woodbury 3,215,662 53,658 1.7%1,928 72,676 Eagan Town Center 1,345,359 24,919 1.9%13,217 12,052 Arbor Lakes 3,753,168 72,184 1.9%18,391 57,618 Burnsville 3,020,067 78,888 2.6%(113)30,513 Rosedale 3,350,844 96,276 2.9%5,926 (32,513) Apple Valley 2,093,585 63,600 3.0%9,024 (8,900) South Robert 2,084,642 128,331 6.2%4,204 (3,853) Northtown 2,492,850 170,558 6.8%54,000 12,442 Maplewood 1,898,656 188,213 9.9%73,143 (10,911) Total 33,014,554 991,202 3.0%202,604 192,645 mArkET FEASiBiLiTy minnEApOLiS / ST pAuL rETAiL TrAdE ArEA SummAry Source: Colliers International Minneapolis / St. Paul Q4 2014 Retail Market Report 13Quadrant | Chanhassen, Minnesota MinneapoliS cbd cbd of Minneapolis 781,287 132,231 16.9% 24,150 20.0% (3,042) (12,758) norTheaST Community Center 3,916,681 102,265 2.6% 0 2.6% 35,847 39,214 Neighborhood Center 4,251,547 370,704 8.7% 0 8.7% 84,680 92,797 Regional Center 2,914,077 42,451 1.5% 0 1.5% 33,262 (15,115) Totals: 11,082,305 515,420 4.7% 0.0% 4.7% 153,789 116,896 norThWeST Community Center 6,445,348 587,514 9.1% 64,061 10.1% 16,713 (125,705) Neighborhood Center 8,696,005 502,538 5.8% 226,844 8.4% 85,371 234,907 Outlet Mall 430,000 0 0.0% 0 0.0% 0 0 Regional Center 4,557,671 153,059 3.4% 0 3.4% 2,900 (11,723) Totals: 20,129,024 1,243,111 6.2% 290,905 7.6% 104,984 97,479 SouTheaST Community Center 4,324,325 236,934 5.5% 131,866 8.5% 30,719 4,734 Neighborhood Center 6,598,285 455,502 6.9% 73,875 8.0% 59,356 67,464 Outlet Mall 409,000 0 0.0% 0 0.0% 0 409,000 Regional Center 6,054,985 136,525 2.3% 0 2.3% 36,186 92,318 Totals: 17,386,595 828,961 4.8% 205,741 6.0% 126,261 573,516 SouThWeST Community Center 3,568,449 65,422 1.8% 56,760 3.4% 4,734 32,313 Neighborhood Center 5,838,362 389,355 6.7% 9,455 6.8% (3,730) 23,732 Regional Center 5,913,149 11,033 0.2% 0 0.2% 11,420 41,734 Totals: 15,319,960 465,810 3.0% 66,215 3.5% 12,424 97,779 ToTal all MarKeTS CBD of Minneapolis 781,287 132,231 16.9% 24,150 20.0% (3,042) (12,758) Community Center 18,254,803 992,135 5.4% 252,687 6.8% 88,013 (49,444) Neighborhood Center 25,384,199 1,718,099 6.8% 310,174 8.0% 225,677 418,900 Outlet Mall 839,000 0 0.0% 0 0.0% 0 409,000 Regional Center 19,439,882 343,068 1.8% 0 1.8% 83,768 107,214 Totals: 64,699,171 3,185,533 4.9% 587,011 5.8% 394,416 872,912 SUbMARkET TOTAL Sf dIRECT vACANT Sf SUbLEASE vACANT Sf % vACANT dIRECT % vACANT w/SUbLEASE 4Th qUARTER AbSORPTION YTd AbSORPTION mArkET FEASiBiLiTy minnEApOLiS / ST pAuL rETAiL mArkET STATiSTicS Source: Colliers International Minneapolis / St. Paul Q4 2014 Retail Market Report 14Quadrant | Chanhassen, Minnesota mArkET FEASiBiLiTy mArkET STudy TrAdE ArEA Source: Scan/US, Inc and McComb Group, Ltd. Population is expected to increase from 407,361 in 2014 to 438,533 in 2019. Trade area households are expected to increase from 157,810 in 2014 to 169,997 in 2019. 15Quadrant | Chanhassen, Minnesota mArkET FEASiBiLiTy ESTimATEd 2019 hOuSEhOLd incOmE: pErcEnT ABOvE $100,000 Source: Scan/US, Inc and McComb Group, Ltd. Average 2014 household income is $103,006 and is expected to increase to $110,603 in 2019. Households with incomes above $100,000 in 2019 are distributed throughout the trade area with higher concentrations in the northeast portion. 16Quadrant | Chanhassen, Minnesota mArkET FEASiBiLiTy Source: Scan/US, Inc and McComb Group, Ltd. cOmpETiTivE ShOpping ArEAS The market study identifies three competitive regional shopping centers near the trade area. 17Quadrant | Chanhassen, Minnesota mArkET FEASiBiLiTy Source: Scan/US, Inc and McComb Group, Ltd. chAnhASSEn rETAiL nOdES 18Quadrant | Chanhassen, Minnesota mArkET FEASiBiLiTy mArkET OppOrTuniTy: TrAdE ArEA Quadrant 500,000 SF remaining Opportunity 600,000 SF Shopping $430m convenience $170m Other retail $50m Services $55m Shopping $430,000,000 Convenience $170,000,000 Other Retail $50,000,000 Services $55,000,000 retail Opportunity $705,000,000 or 1,100,000 SF Quadrant proposed 500,000 SF 19Quadrant | Chanhassen, Minnesota pOTEnTiAL prOjEcT SiZE According to McComb Group, the potential gross leasable area (GLA) by store category ranges from 825,000 square feet to 1,120,000 square feet, as shown in the table below. These figures do not include structured parking. mArkET FEASiBiLiTy Store category Square Footage Low High convenience goods Subtotal 105,000 135,000 Shopping goods Anchor Stores 120,000 220,000 Junior Anchors 220,000 315,000 Inline Stores 110,000 180,000 Subtotal 450,000 715,000 Food Services Restaurants 20,000 30,000 Fast Food 15,000 20,000 Subtotal 35,000 50,000 Services Subtotal 20,000 30,000 destination Stores Health Club 50,000 60,000 Home Center 115,000 115,000 Cinema 50,000 60,000 Subtotal 215,000 235,000 Total 825,000 1,165,000 Source: McComb Group, Ltd. prOpOSEd prOgrAm Based on the market study results, we have prepared the below proposed program for the development. Tenants pad Sizes SF Theater 12.00 65,000 Furniture 4.00 35,000 Medium Density Housing 4.00 59,400 Medical Office Building 3.50 35,000 High Density Senior Cooperative 3.00 147,938 Hotel Limited Service 2.50 80,000 High Density Housing 5.00 356,563 Fitness 4.00 35,000 Grocer 5.00 45,000 Restaurants 4.00 19,500 Regional Retail (Primary Anchor)10.00 130,680 Regional Retail (Juniors)7.90 103,237 Regional Retail (Inline)6.97 91,084 Parking Structure 0.00 0 Total 71.87 1,203,401 SimiLAr prOjEcT Village Point - Omaha, Nebraska 20Quadrant | Chanhassen, Minnesota 2014 2019 population 407,361 438,533 households 157,810 169,997 Average household income Trade Area $103,006 Minneapolis $85,611 United States $72,000 median household income Trade Area $83,841 $91,761 Minneapolis $66,941 $71,838 United States $53,958 $57,860 household income $100,000+60,102 (38.1%) 71,104 (41.8%) household income $150,000+31,857 (20.2%) 42,113 (24.8%) dEmOgrAphicS 0 $20,000 $40,000 $60,000 $80,000 $100,000 $103,006 $72,000 Trade Area United States $120,000 Average household income of $103,006 is significantly higher than the United States average household income of $72,000. AvErAgE hOuSEhOLd incOmE TrAdE ArEA dEmOgrAphicS 21Quadrant | Chanhassen, Minnesota dEmOgrAphicS Money Magazine Best Places to Live Family Circle Top 10 Town to Raise a Family Business Journal Highest Quality of Life Minneapolis St. Paul Magazine Best Places to Live Movoto Real Estate Blog #1 Place to Live in Minnesota chAnhASSEn, minnESOTA iS cOnSiSTEnTLy rATEd AS A grEAT pLAcE TO LivE 22Quadrant | Chanhassen, Minnesota prOjEcT cOncEpTS 23Quadrant | Chanhassen, Minnesota JANUARY 16, 2015 Landform® and Site to Finish® are registered service marks of Landform Professional Services, LLC. REGIONAL COMMERCIAL, 212 & POWERS CHANHASSEN, MINNESOTA PROPOSED LAND USE CONCEPT 1 (acres) 30.3 Regional Commercial 17.4 Office 13.5 High Density Res. 19.8 Medium Density Res. -- Stormwater -- Conservation Land Uses from 2012 HKGi AUAR Concepts (constrained to project site) CONCEPT 2 (acres) 18.2 Regional Commercial 33.6 Office 5.8 Mixed Use 4.1 High Density Res. 16 Medium Density Res. 3.5 Stormwater -- Conservation CONCEPT 3 (acres) 65.2 Regional Commercial 1.4 Office 0 High Density Res. 13.5 Medium Density Res. -- Stormwater -- Conservation PROPOSED LAND USES Acres Regional Commercial 435,000 sf, One story Office 40,000 sf, One story Regional Comm./Office Mix 85,000 sf, One Story High Density Residential 300 units, 3 stories Medium Density Residential 55 units, 2 stories Stormwater Conservation 4.4 4.9 10.8 5.0 11.4 54.6 15.9 PAGE No. Landform and Site to Finish are registered service marks of Landform Professional Services, LLC.R R THE DISTRICTAT VINCENT RIDGE CHANHASSEN, MN DEVELOPMENT PLAN7.0 01.16.20151 NORTH 0 120 240 Lyman Boulevard Regional Commercial, 13.9 acres Regional Commercial, 32.2 acres Regional Commercial, 8.5 acres Office, 3.3 acres Stormwater, 3.3 acres Stormwater, 1.2 acres Stormwater, 1.4 acres High Density Residential, 3.9 acres High Density Residential, 6.9 acres Conservation, 15.9 acres Retail Convenience, 1.6 acres Bluff Creek BoulevardPowers BoulevardprOjEcT cOncEpTS 24Quadrant | Chanhassen, Minnesota prOjEcT cOncEpTS 25Quadrant | Chanhassen, Minnesota prOjEcT cOncEpTS 3Project Site Plans | 06 November 2014 | OPTION 7 Anchor | Total SF : 372,000 SF Retail | Total SF : 112,000 SF Restaurants | Total SF : 28,000 SF Totals by Program: Jr. Anchor | Total SF : 109,000 SF MOB | Total SF : 40,000 SF Senior Housing| 130 units = Total SF : 180,000 SF 110K x2 30K x2 180k TOTAL Hotel | 120 KEYS on 3.8 ac Brownstone | 42 units on 6.1ac Total SF : 841,000 SF 2Project Site Plans | 06 November 2014 | OPTION 6 Anchor | Total SF : 152,000 SF Retail | Total SF : 88,000 SF Restaurants | Total SF : 28,000 SF Totals by Program: Jr. Anchor | Total SF : 109,000 SF MOB | Total SF : 40,000 SF Apartments | 250 units = Total SF : 350,000 SF 30K x2 180k TOTAL Senior Housing| 130 units = Total SF : 180,000 SF 350k TOTAL Hotel | 120 KEYS on 3.8 ac Brownstone | 42 units on 6.1ac Total SF : 947,000 SF 4Project Site Plans | 06 November 2014 | PHASING / ACREAGE Red Phase Yellow Phase Totals by Program: Orange Phase 15.4 ac8.1 ac 3.8 ac 2.1 ac 6.1 ac 3.5 ac 2.0 ac 2.0 ac 6.9 ac 5.7 ac34.2 ac WOODED AREA POND 1.6 ac A 2.1 ac B 3.8 ac C 15.4 ac D 8.1 ac E 6.1 ac SUB-TOTAL 35.5 ac F 3.5 ac G 2.0 ac H 2.0 ac I 6.9 ac J 1.6 ac K 5.7 ac SUB-TOTAL 21.7 ac L 34.2 ac SUB-TOTAL 34.2 ac TOTAL 91.4 ac 26Quadrant | Chanhassen, Minnesota 4Project Site Plans | 06 October 2014 | OPTION 3 515 Stalls 730 Stalls 430 Stalls 375 Stalls 430 Stalls 430 Stalls 120 Stalls 80 Stalls 80 Stalls 92K SF 50K SF 30K SF 60K SF 30K SF (x2) 30K SF (x2) 20K SF 20K SF 17K SF 36K SF 62K SF 28K SF 18K SF 23K SF 7K SF 7K SF 7K SF 7K SF 4.5K SF 7K SF 19K SF 30K SF Big Box | Total SF : 172,000 SF Phase 1 Grocery 92,000 SF MOB 60,000 SF Senior Housing 120,000 SF Anchor 50,000 SF Anchor 30,000 SF Fitness 30,000 SF Gas 4,500 SF Phase 2 Housing 120,000 SF Retail 210,000 SF Theater 60,000 SF Restaurants 28,000 SF Office 60,000 SF Retail | Total SF : 214,500 SF Theater | Total SF : 60,000 SF Restaurants | Total SF : 28,000 SF MOB | Total SF : 70,000 SF Senior Housing | Total SF : 120,000 SF Phases 50 Stalls 65 Stalls 50 Stalls Property Line Totals by Program: Totals Parking Stalls: 3355 Total SF : 689,500 SF 2Project Site Plans | 06 October 2014 | OPTION 1 1140 Stalls 80 Stalls 60 Stalls Property Line 280 Stalls 23K SF 36K SF 44K SF 18K SF 34K SF 19K SF 17K SF 28K SF 60K SF 280 Stalls 500 Stalls 350 Stalls 420 Stalls 92K SF 50K SF 30K SF 30K SF (x2) 30K SF (x2) 40K SF 20K SF 7K SF 7K SF Big Box | Total SF : 232,000 SF Phase 1 Grocery 92,000 SF MOB 60,000 SF Senior Housing 120,000 SF Anchor 50,000 SF Anchor 30,000 SF Fitness 30,000 SF Gas 4,500 SF Phase 2 Housing 120,000 SF Retail 219,000 SF Anchor 120,000 SF Restaurants 14,000 SF Office 60,000 SF Retail | Total SF : 223,500 SF Restaurants | Total SF : 14,000 SF MOB | Total SF : 60,000 SF Senior Housing | Total SF : 120,000 SF Phases Totals by Program: Totals Parking Stalls: 3110 4.5K SF Total SF : 649,500 SF 3Project Site Plans | 06 October 2014 | OPTION 2 1715 Stalls 430 Stalls 405 Stalls 515 Stalls 80 Stalls 100 Stalls 50 Stalls 65 Stalls 60 Stalls 50 Stalls 345 Stalls 345 Stalls 92K SF 50K SF 30K SF 60K SF 60K SF 20K SF 30K SF 7K SF 4.5K SF 36K SF 28K SF 34K SF 25K SF 30K SF 15K SF 18K SF 23K SF 7K SF 30K SF (x2) 30K SF (x2) Big Box | Total SF : 232,000 SF Phase 1 Grocery 92,000 SF Theater 60,000 SF Senior Housing 120,000 SF Anchor 50,000 SF Anchor 30,000 SF Fitness 30,000 SF Gas 4,500 SF Phase 2 Housing 120,000 SF MOB 50,000 SF Retail 259,000 SF Theater 60,000 SF Restaurants 14,000 SF Office 60,000 SF Retail | Total SF : 213,500 SF Theater | Total SF : 60,000 SF Restaurants | Total SF : 14,000 SF MOB | Total SF : 50,000 SF Senior Housing | Total SF : 120,000 SF Phases Totals by Program: Property Line Totals Parking Stalls: 4160 Total SF : 689,500 SF prOjEcT cOncEpTS 27Quadrant | Chanhassen, Minnesota prOjEcT cOncEpTS 28Quadrant | Chanhassen, Minnesota inSpirATiOn Corners of Brookfield in Brookfield, Wisconsin 29Quadrant | Chanhassen, Minnesota inSpirATiOn 30Quadrant | Chanhassen, Minnesota inSpirATiOn JANUARY 16, 2015 Landform® and Site to Finish® are registered service marks of Landform Professional Services, LLC. REGIONAL COMMERCIAL, 212 & POWERS CHANHASSEN, MINNESOTA AMENITY INSPIRATION VISION Amenities in this new District will borrow forms, high-quality materials, colors and geometries from the chosen architectural styles. The full range of options will be geared toward the regional shopper who is interested in spending the afternoon or even full day shopping, eating and relaxing. Amenities may include: • a small playground with sculpture components • water features & dramatic lighting • public art • wayfinding signage at key decision points & in a brand sensitive theme • beautiful and functional stormwater management features Small urban playground with themed or sculptural features Wayfinding coordinated into District brand Amenities reflect architecture and brand Surprise and wonder through unexpected details Multi-season amenities Timeless color palette and thoughtful details Places for public art - permanent or rotating High-quality brand appropriate materials and amenities Beautiful and functional stormwater management features Public spaces with water and lighting 31Quadrant | Chanhassen, Minnesota inSpirATiOn 6Project Site Plans | 06 November 2014 | APARTMENTS 32Quadrant | Chanhassen, Minnesota inSpirATiOn 7Project Site Plans | 06 November 2014 | SENIOR LIVING 33Quadrant | Chanhassen, Minnesota inSpirATiOn 8Project Site Plans | 06 November 2014 | TOWNHOUSES 34Quadrant | Chanhassen, Minnesota cOmmuniTy SuppOrT cOmmuniTy SuppOrT • Two community meetings have been held, with strong support for regional commercial shopping. • A facebook page for Quadrant has over 1300 “likes” and continues to gain traction. 35Quadrant | Chanhassen, Minnesota duE diLigEncE duE diLigEncE mATEriALS AvAiLABLE: • Boundary Survey • Title Commitment • Phase 1 Environmental • Geotechnical / Soil Investigation • Wetland Delineation • Tree Survey Inventory • McComb Market Study and Trade Area Analysis • Market Demographic Information • Thompson Senior Housing Report • Site Investigation Report