Memo Tait Grocery Store Proposal
e C I T Y o F HOP KIN S
MEMORANDUM
DATE: May 11, 1995
TO: The Honorable Mayor and city council
~ FROM: Paul T. Steinman, Community Development Specialist
SUBJECT: Tait Grocery store Proposal and Dome Demolition Project
I. The purpose of this memo is to provide information for
discussion of the Tait's Grocery store Project
rehabilitation and the process of demolition of the dome
property.
II. Grocery store Rehabilitation
Mike Tait, as part of the redevelopment agreement between
. Tait's SuperValu and the Hopkins Housing and Redevelopment
Authority, is required to complete a minimum of $525,000 in
actual construction or equipment costs to his existing
facility. Mr. Tait is also required to submit to the HRA,
for its approval, construction plans for these improvements
by November 2, 1995. The HRA then has two months to review
the construction plans and provide approval or rejection of
such plans. If the HRA rejects the construction plans, Mike
Tait is required to submit new or corrected plans within 30
days after written notification of such rejection. The HRA
has agreed that it will not unreasonably withhold approval
of such construction plans.
Attached to this memo is a brief summary of the types of
upgrades which Mr. Tait is proposing to be made to the
building. These plans call for completion of approximately
$200,000 in fixed improvements, construction of a small
mezzanine above the current front side of the building, new
walls, floors, exterior appearance, and other ancillary
types of improvements. In addition, approximately
$1,000,000 in new equipment will be purchased as part of the
project. These improvements are scheduled to be started
some time late this summer.
Mike Tait has indicated he will be available at the May 16,
e 1995, city Council meeting to further discuss this proposal.
VSIJ5115A
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Mayor and city Council
Page 2
e III. Dome Demolition
As is indicated in the purchase agreement between the city
and Don Perk 1 and the redevelopment agreement with T & H
Markets, Inc. (Mike Tait) , the following process is to be
followed regarding demolition of the dome and construction
of the parking lot.
. June 7, 1995 - The HRA is to provide notification to
Mr. Don Perkl regarding beginning demolition of the
dome and reconstruction of the wall. These two items
are to be accomplished within a 90-day time frame.
. September 1, 1995 - The HRA is to have begun
construction of a parking lot on the dome property.
The HRA then has 90 days within which to complete the
parking lot improvements.
As you will recall, $126,400 has been placed in escrow to
complete the demolition of the dome and reconstruction of
the wall. Due to the fact that bids on demolition of the
dome, the lowest of which was $26,400, could not be
guaranteed until the actual time of demolition this year,
the HRA agreed to provide funding for any cost over and
above $26,400 for the demolition contract. Mr. Perkl is
. responsible, however, for providing funding for any cost
over and above $100,000 allocated to reconstruction of the
wall and relocation of the rest room facilities. Mr. Perk I
has indicated his cost estimates at this time for both these
items are approximately $110,000 to $120,000.
An additional issue which will need to be addressed as part
of this project concerns the west wall of the Outdoorsman
building. This wall will be visible upon completion of the
demolition and, therefore, will need to be visually
upgraded. Discussions with Keith Rolf, owner of the
Qutdoorsman Building, have indicated that he may, due to
financial considerations, elect not to complete any
improvements to that wall.
. staff has discussed the possibility of having the city
carry the general design theme of the stuccoing
improvements of the new wall which Mr. Perkl is
completing onto the west building face of the
Outdoorsman. The cost of this is estimated to be
$5,000 to $7,500.
.
p.:; 0 c; 115A.
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Mayor and city council
Page 3
- . In conjunction with the City completing this
improvement to the Outdoorsman building, Mr. Rolf would
be encouraged to participate in upgrading the rear
facade of his building. Staff has pointed out to Mr.
Rolf that he would have the ability to utilize the
City's existing Facade Grant Program to cover half of
the cost, up to $5,000, of completing a facade
improvement to the rear of this building.
Issues relative to parking lot construction and design will
be dealt with throughout the 90-day process of demolition
and wall reconstruction.
IV. Conclusion
Staff anticipates that at the HRA meeting on June 6, 1995,
it will ask the HRA to approve providing notification to Mr.
perkl to begin the dome demolition and wall reconstruction.
Staff feels the most efficient and cost effective way to
complete these items is to have Mr. Perkl do them, due to
his present ownership of the building adjacent to the dome.
Attachment
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PS05115A
I
stJM:MARY OF PROPOSED IMPRO~ TO
e TAIT'S SUPER. VALVo HOPKINS
TIle project anticipates expenditures of approximately S200tOOO for improvements to the building
and $1 million for items typically considered t4uipment.
The proposal anticipates the following changes:
. A 2,000 square foot building addition.
. Increuing the selling area by approximately 1,400 square feet.
. Adding a customer service center.
. Adding a larger floral depanment.
. Enhancing all the perishable departments with the addition of new cases.
. Expanding the Dairy and Frozen foods departments.
. Expanding meat and grocery variety through new cases and additional shelving.
. ,
. In3talling a new decor package including new flooring.
. Updating the store exterior and a new sign package.
SUPERVALU Engineering is preparin& plans and estimates to determine how to best utilize
available resources.
A late summer start is contemplated.
It
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