CR 92-108 Commericial Land Use Assessment
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April 29, 1992
council Report 92-108
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COMMERCIAL LAND USE POLICY ASSESSMENT PROCESS
ProDosed Aetion.
Staff recommends adoption of the following motion: Move to enter into an
aqreement with Dahlqren. Shardlow and Uban and MPSI Retail Systems Inc. to
undertake a process of reevaluatinq existing policies regarding commercial
development and redevelopment in Hopkins. with the understandinq that the
city is only committinq at this time to undertakinq the first phase of the
process.
Overview
Over the course of the last several months the City Council has reviewed
concept plans relating to commercial developments on the pines Mobile Home
Park and the R.L. Johnson property. During this time period the HCRRA took
action to disapprove the City'S request to release the LRT right-of-way
between 6th and 8th Avenue.
Recently, City staff recommended that, for a variety of reasons, the City
should undertake an analysis which would involve the use of market and land
use consultants as a part of reexamining the City'S policies and strategies
regarding commercial development and redevelopment activities in Hopkins.
A majority of the City Council requested that City staff return with a
scope of work outlining the proposed process.
City staff contacted the firm of Dahlgren, Shardlow and Uban, a land use
planning consultant, and MPSI Retail Systems Inc., a firm specializing in
market analysis relating to commercial uses, including grocery stores, and
requested that they submit an outline of a process to assist City staff and
the City Council in evaluating its existing commercial land use policies.
Attached is a copy of the scope of work relating to the process proposed,
as well as a flow chart illustrating the specific steps to be undertaken
and the proposed time lines. As is discussed later in this report, staff
is recommending the city only commit at this time to undertaking the first
phase of the process.
primary
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Issues to Consider
Why should the proposed process be undertaken?
What type of process is proposed to be undertaken?
Why is staff suggesting that the City only commit to undertaking
the first phase of the process?
Who would serve on the task force?
What is the approximate cost of the analysis?
What was the recommendation from the Business Council and
Planning Commission regarding the process proposed to be
undertaken?
What action should the City take to address development proposals
which may be submitted or under consideration during the time the
process is being conducted?
o
SUDDortinq Doeuments
o Analysis of issues
o ives
o
Scope of work
, Community Development Director
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CR92-108
Page 2
primary Issues to Consider
o why should the proposed proeess be undertaken?
staff is recommending that the City undertake steps to involve the
community in an objective process to assemble and present market and
planning information to assist in reevaluating policies regarding
commercial development and redevelopment projects in Hopkins. Staff
is suggesting that the City undertake this process based upon the
following issues and questions which have been raised:
o Hennepin County has not approved the City's request to vacate the
railroad right-of-way between 6th and 8th Avenue. Due to this
decision, questions have been raised regarding what steps, if
any, should be taken to accommodate the development of a grocery
store in Hopkins. Also, a question was raised as to how best to
develop this site without the right-of-way.
o Questions have been raised regarding what is the best location
for a grocery store project in Hopkins.
o Questions have been raised regarding what the appropriate land
use should be for some of the remaining large development parcels
within the City (i.e. Pines, R.L. Johnson). Currently, the
parcels are not zoned as commercial nor does the city's land use
plan and related policies support commercial development on these
properties. However, interest has been expressed by developers
and the residential community to have these sites developed
commercially.
o Questions have been raised regarding what type and size of
grocery store best serves the market needs of the City.
o Is there any other site along Mainstreet and in the downtown area
to accommodate a grocery store project?
o Is there a market need as well as a potential benefit to the City
to have a large retail user in the City (i.e. K-Mart, WalMart,
etc.)?
o What is the impact, both positive and negative, on the community,
other commercial areas, and Mainstreet, if some type of retail
development should occur on property outside of Mainstreet and
the downtown area and what, if anything, could be done to
mitigate any negative impacts?
o Diverse points of view have been expressed regarding what the
City's policy should be on commercial development and
redevelopment.
o What type of proeess is proposed to be undertaken?
Attached is a detailed outline from Dahlgren, Shardlow, Uban of the process
proposed to be undertaken. This outline is still in somewhat of a draft
form and may require some fine tuning.
CR92-108
Page 3
The process suggests that a task force be developed consisting of the City
Council and other representatives of the community to undertake a three
step process. This process, lasting approximately two months, would
assemble and present market and planning information to the task force in
order to allow the City Council to reevaluate the appropriateness of the
City's policies regarding commercial development and redevelopment in
Hopkins.
To assist with this process, it is proposed that the City retain the
services of Dahlgren, Shardlow, and Uban, a land use planning consultant,
and MPSI Retail Systems Inc., a market specialist, to assist the staff and
ttask force with this process.
It is proposed that the task force undertake this process in a work session
environment involving three meetings. The attached proposal outlines the
purpose and activities of each of these meetings.
The consultants which are proposed to be used to assist the City with this
process are familiar with Hopkins. In this case, John Shardlow with
Dahlgren, Shardlow, and Uban has provided planning assistance to the City
Council in the past. In addition, Steve Kotvis with MPSI Retail Systems
Inc. is familiar with Hopkins as he was involved in the Laventhal Horwath
study regarding Mainstreet Hopkins which was done in 1988.
o Why is staff suggesting that the City only eommit to undertaking th
first phase of the proeess?
The first meeting, identified as a "Project Initiation Meeting," is
intended to serve as a discussion between the Task Force, staff, and
consultants on the following:
o Purpose of process and how it will be undertaken
o Scope of the process
o Expectations of participants
o Roles and responsibilities
o Identification of issues and questions to be analyzed
o Other items
It is staff's impression that the proposed process has been met with some
skepticism, concern, and resistance from individuals and organizations
which may be involved. As a result. staff is recommendinq that the City
commit at this time to only undertakinq this first meetinq. If, after this
meeting, it is felt the process will not work, will not provide the
information desired, or meet the expectations of the participants, the
process can be terminated. If, however, it is felt that the process can
work, the remaining work plan could then be implemented. Please note that
the consultants involved support this approach.
o Who would serv on the task fore ?
It is proposed that the task force be made up of the following people:
CR92-108
Page 4
o All members of the City Council.
o Two or three members from the residential community.
o Two or three members from the Planning Commission.
o Two or three representatives of the Hopkins Business Council.
It is proposed that the task force not be any larger than 10 to 15
members. It is suggested that the Planning Commission and Business
Council be responsible for appointing their respective
representatives. It is further suggested that the Mayor be allowed to
propose the representatives from the residential community, with
approval to be provided by the City Council.
It should be noted that the representatives from the Planning
Commission, residential community, and Business Council are intended
to be actively involved in the process and serve as a resource to the
City Council. However, it is proposed that all members clearly
understand that the City Council does have the final decision making
authority as to the City's position on its land use policies.
o What is the approximate eost of the analysis?
It is estimated that the process, if fully completed, will cost
approximately $15,000 to $23,000. It is suggested that this cost be funded
by the City's Economic Development fund. If only the first phase of the
process is completed, the consultants would be compensated on an hourly
basis. The specific cost of the analysis will vary depending upon the
questions and scope of the study identified by the task force.
o What was the reeommendation from the Business couneil and Planning
Commission regarding the proeess proposed to be undertaken?
The Business Council met in a special meeting on April 29th to discuss the
issue of retail development outside of Mainstreet Hopkins, and the idea of
the City undertaking the process as suggested by staff. Representatives of
the Business Council indicated that they would be at the City Council
meeting on May 5th to present their position. However, based upon staff's
attendance at the meeting, it is staff's understanding that the Business
Council's position is that the City should not undertake the process
proposed by staff. Rather, it is the Business Council's position that the
City should focus all of its efforts on keeping the grocery store anchor in
downtown Hopkins and not consider zoning additional properties to allow for
commercial development.
Upon discussing the proposed process with the Planning Commission, a
majority of the Planning Commission concurred with staff's recommendation
to undertake some type of land use study.
o What aetion should the City take to address development proposals
whieh may be submitted or under consideration during the time th land
us analysis is being eondueted?
Depending on the sites which the task force desires to be examined as a
part of the land use analysis, it is possible that the City may receive
development proposals for specific sites which are being analyzed. An
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Page 5
example would be the possibility of R.L. Johnson/Youngstedt approaching the
City with a formal application to develop a gas station on the County Road
3jllth Avenue site.
An alternative which the City has to address this question is to impose a
moratorium on all commercial development and redevelopment in the B-2 and
B-3 zoning district. However, it is staff's recommendation at this time
that the city not undertake such an action. Rather, staff would suggest
that the City attempt to gain cooperation from any developers who might be
interested in doing a project, requesting that they allow for the process
to be completed. If this approach did not work, the city could then
consider implementing a moratorium. It should also be noted that the City
could control the submission of development proposals based on the premise
that in most cases the City would be requested to provide some type of
public assistance to facilitate the project.
Alt rnatives
It would appear that the alternatives available to the City council are as
follows:
o Approve staff's recommendation.
o Determine that the proposed analysis is not necessary and
encourage the rezoning of either the Pines or R.L. Johnson
property, or both, to allow for a retail development to occur.
o Determine that the land use analysis should not be undertaken
based on the premise that the City's existing land use policies
are appropriate and correct. Additionally, the City Council
could direct staff to look at other ways in which to accommodate
a grocery store development along Mainstreet or in downtown
Hopkins.
o Take no action. This may result in nothing happening for either
a short while or a longer period of time. The city may
experience the submission of formal proposals by developers for
projects outside of downtown Hopkins which will eventually
require some type of action or decision.
o Table this matter for further information.
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28 April 1992
Mr. Tom Harmening
Director of Community Development
City of Hopkins
1010 South First Street
Hopkins, MN 55343
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INCORPORATED
CONSULTING PLANNERS
LANDSCAPE ARCHITECTS
300 FIRST AVENUE NORTH
SUITE 210
MINNEAPOLIS. MN 55401
612,339,3300
PROPOSAL FOR PROFESSIONAL PLANNING SERVICES
The team of DAHLGREN, SHARDLOW, AND UBAN, INC. (DSU) and MPSI RETAIL
SYSTEMS, INC. (MPSI) are pleased to submit this proposal for planning services to assist the
Hopkins City Council in a process for making informed decisions related to the reevaluation of
commercial land use policies. The proposal is structured in the following manner:
II Purpose of Services
I: Roles and Responsibilities
. Scope of Services
. Information to be Provided by the City
II Product to be Provided
. Additional Services
. Cost of Services
PURPOSE OF SERVICES
The main purpose of OU,r services is to involve the community in an objective process to assemble
and present market and planning information to assist in reevaluating policies regarding commercial
development and redevelopment in Hopkins. DSU will serve as facilitators in this process. Both
DSU and MPSI will serve as advisors to the City Council, conduct research, and prepare
information for review and evaluation by the appointed Task Force. Our involvement with the Task
Force will be interactive and the nature and scope of our work will be shaped by the group. Our
objective is to provide adequate information so the Council can make informal decisions related to
commercial land use policies,
ROLES AND RESPONSIBILITIES
City Council
The City Council will participate throughout the process. It is suggested that the meetings involved
in this process be conducted as Council Work Sessions. The Council Members will participate fully
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Tom Harmening, City of Hopkins
28 April 1992
Page 2
in the process, ask questions, shape the research and analysis, challenge findings, etc. Most
importantly, the Council will play the role and have the responsibility of being the final decision
maker.
Task Force
The Task Force should consist of the City Council and two to three members from each of the
folIowing groups:
1. The residential community
2. Planning Commission
3. Hopkins Business Council
The Planning Commission and Business Council will be responsible for appointing their
representatives. The Mayor will appoint a representative from the residential community. The role
of the Task Force is to participate throughout the process. In the beginning they will shape the
questions to be addressed by the consultants. They will also serve to identify community goals to be
served through the successful completion of the process and to the extent possible to prioritize these
goals,
The Task Force will be the recipients of the information, and they will have the opportunity to
challenge it, ask the questions another way, or to identify additional information that they feel is
necessary in order to give the City "the total picture". The Task Force will both frame the process
and serve as advisors responsible for ensuring that the process is conducted in an open and objective
manner.
City Staff
The staff will assist the process by providing information and serving as resources.
Consultants
The consultants will facilitate the process and conduct the research and analysis. John Shardlow of
Dahlgren, Shardlow, and Uban, Inc. (DSU) will serve as the primary facilitator. Steve Kotvis will
be the key contact at MPSI Retail Systems for the market research and analysis aspects of the
project.
To achieve the objectives stated above, DSU and MPSI will perform the following services:
SCOPE OF SERVICES
I. Project Initiation Meeting
A. Define ground rules, participants, roles and responsibilities; identify concerns,
questions to address, process, scope and sites to be analyzed; and clarify and
prioritize relevant goals and expected results.
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Tom Harmening, City of Hopkins
28 April 1992
Page 3
II. Assemble Information
A. Review Existing Studies and Proposals
- Comprehensive Plan and Current Policies
- Zoning
- Proposals
B. Market Analysis (Sales Projections)
- Market for Supermarket (location, size, concept type)
- Market for General Merchandise Store (size, type)
C. Examine Potential Development Sites
- R.L. Johnson Property
- Pines
- Existing Taits Sites
- All or Part of 6th to 8th Avenue Site
D. Land Use Analysis
- Existing Development Patterns
- Urban Design Considerations
- Linkages
- Circulation
- Existing Goals and Policies
- Identify Most Appropriate Uses and Locations
III. Work Session
A. Present Findings
B. Discuss Concerns
C. Identify issues to be resolved and additional information that is needed
IV. Evaluation of Alternatives
A. Refine Potential Plans for Selected Sites
- Schematic Development Plans
- Define Development Potential
B. Examine Alternative Development/Redevelopment Scenarios
- Identify positive and negative impacts on the community, existing commercial
areas, and Mainstreet
- Identify policies and actions to mitigate potential negative impacts
C. Formulate Findings
- Recommend Pol icy Alternatives
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Tom Harmening, City of Hopkins
28 Apri/1992
Page 4
V. Final Work Session
A. Present Findings
B. Assist City Council in Decision Making Process
C. Invite Public Input
D. Identify Policy Alternatives
INFORMATION TO BE PROVIDED BY THE CITY
The City shall be responsible for furnishing the consultants with the following information:
1. Comprehensive plan and zoning ordinance;
2. Pertinent past development studies;
3. Section maps, street maps, utility plans, and aerial photographs (preferably on mylar);
4. Topographic survey of selected sites;
5. Ownership of selected sites; and
6. Arrangements for meeting announcements and location.
PRODUCT TO BE PROVIDED
The consultants shall provide the City of Hopkins with written and graphic materials as it is
generated throughout the process. Twenty (20) copies of a final report will be prepared that
summarizes our findings.
We anticipate that the proposed process should take approximately two months to complete, from
May through July.
ADDITIONAL SERVICES
Following are services that will be beyond the scope of the basic services:
1. Opinion Surveys
2. Additional meetings and presentations
3. Additional copies of the final report
4. Preparation of design guidelines for urban design, building massing, site planning,
landscaping and signage
5. Other items not listed in the basic Scope of Services
COST OF SERVICES
Dahlgren. Shardlow. and Dban. Inc.
This est~mate assumes DSU will facilitate this process and analyze the development potential and
related issues associated with four sites. Our work will be charged for on a time-plus-materials
basis with a targeted budget of Nine Thousand Dollars ($9,000.00). The fee is broken down as
follows:
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Tom Harmening, City of Hopkins
28 April 1992
Page 5
.
Project Initiation Meeting
- Preparation and facilitation
$1,800.00
.
Assemble and Analyze Information
- Evaluation of Alternatives
- Work Session #2
- Final Work Session
$7,200.00
MPSI Retail Systems Inc. - Market Analysis
Given the non-specific nature of this project, in that some of the requirements within the Scope of
Services are determined as a part of the process, project fees are estimated on a time-plus-materials
basis.
Project fees to conduct the Market Analysis (Step II-B) are estimated at $13,600. This includes
$9,600 for the Supermarket market analysis at four alternative sites and $4,000 for the General
Merchandise market analysis at the R.L. Johnson site.
The work will be completed as quickly and cost effectively as possible and will be computed
according to the attached Standard Rate Schedule. All additional services will be billed on a
time-plus-materials basis, unless otherwise negotiated with a fee and an addendum to the Scope of
S erv ices.
The City of Hopkins will be billed with a monthly invoice for work performed during that time
period. To each invoice not paid within thirty (30) days shall be added a service charge of one and
one-half percent (1.5 percent) per month for each month delinquent.
Because of the nature of this kind of work and the involvement of many individuals and agencies, it
is understood that the tasks and phases of work outlined above are generalized and may overlap one
another. Frequently there are issues and circumstances that arise which we cannot anticipate in
advance.
No work outside the state Scope of Services will be undertaken without express authorization by the
City of Hopkins.
If the proposed described above meets with your approval, please sign one copy and return it to us.
If you have questions or would like to discuss any portion of this proposal, please do not hesitate to
call. We are looking forward to working with the City of Hopkins toward the completion of a
successful project.
TERMINATION
This agreement may be terminated upon written notice by either party. In the event of termination,
the City shall pay the consultant for the work completed on a time-plus-materials basis.
Tom ~armening, City of Hopkins
. CONDITIONS HEREIN AGREED TO:
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C. John Uban, Chief Executive Officer
DAHLGREN, SHARDLOW, AND UBAN, INC.
CLIENT
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28 April 1992
CITY OF HOPKINS
Attachment: Standard Rate Schedule
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If/ft6jqL
Date
i,3(}'~2-
Date
Date
STANDARD RATE SCHEDULE
DAHLGREN, SHARDLOW, AND UBAN, INC.
Staff Member
Principal
Senior Consultant
GIS Specialist
Senior Planner
Planner
Landscape Architect
CADD Specialist
Researcher
Draftsperson/Designer
Secretary
Outside Consultants
Supplies
Expenses
Mileage
Rate
$90.00 to $100.00
$60.00 to $75.00
$60.00 to $75.00
$50.00 to $65.00
$35.00 to $50.00
$45.00 to $65.00
$55.00 to $65.00
$35.00 to $50.00
$25.00 to $50.00
$35.00 to $45.00
Per Job Plus 15 %
Cost Plus 15%
Cost Plus 15%
$0,30 Per Mile
Expert Testimony
Two Times Hourly Rate
(One-Half Day Minimum)
Special Counsel Howard Dahlgren
$150,00
Public Presentations
One and One-Half Times
Hourly Rate
Past Due Accounts
MPSI/Retail Systems
1.5 % Per Month
$150.00
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.JOHN W. SHARDLOW, AICP
President and Director of Planning
Dahlgren. Shardlow. and Uban. Inc.
EXPERIENCE
Mr. Shardlow, who has been with the firm since 1978, has served clients in both the public and
private sectors. His skills include comprehensive and community planning: project planning for
residentiaL commercial, industrial, recreational and institutional developments; and preparation
of redevelopment plans, tax-increment financing plans, subdivision regulations, and environmen-
tal assessments. In addition, he frequently provides expert testimony on matters related to
planning.
o Planning Consultant for the City of Burnsville, MN (responsible for a wide range of
planning, zoning and development issues)
. Planning Consultant for the City of Roseville, MN (responsible for all development review,
comprehensive planning, zoning administration, special studies)
. S1. Paul University Avenue Redevelopment Plan (consensus-building among 16 community
groups regarding land use, economic development, transportation and the environment)
. Apple Valley Gravel Mining EIS (coordinator of interdisciplinary team charged with
determining and mitigating effects of a BOO-acre staged gravel-mining operation)
. S1. Paul Design Through Zoning Study (principal in charge of conducting research and
analyzing and drafting design standards to include in city zoning ordinance)
. Burnsville Highway 13 Corridor Study (principal in charge of EA W, induding issues of
land use, zoning, transportation, floodplain and wetland management, creative landfill
reclamation, and community image enhancement)
. Orono Highway 12 Corridor Study (principal in charge of facilitating community partici-
pation and developing new planning and zoning strategies)
Mr. Shardlow is also a faculty member of the Government Training Service, leading seminars in
comprehensive planning, planned unit development, and advanced planning techniques.
Mr. Shardlow was a member of a 1985 Amercian urban housing delegation to the Peoples'
Republic of China.
In addition to belonging to the American Institute of Certified Planners, the American Planning
Association and the Minnesota Planning Association, Mr. Shardlow is a past president of the
Community Association Institute.
EDUCATION
Bachelor of Landscape Architecture with Specialty in Urban Design, University of Minnesota
Bachelor of Science, University of Minnesota
'"
GEOFFREY MARTIN, ASLA
Senior Landscape Architect
Dahlgren, Shardlow. and Uban. Inc.
EXPERIENCE
Mr. Martin, who joined the firm in 1978, is responsible for landscape and streetscape designs
and park master plans, as well as plans for institutional and office campuses and residential and
commercial developments. He has also prepared expert testimony and numerous exhibits for use
in court cases.
. Nicollet Island Park, Minneapolis, while with Martin and Pitz Associates (member of
design team for this urban waterfront park)
MASLA Merit Award Winner, 1988
Committee on Urban Environment, 1990 Award
· Lee Square Senior Housing, Robbinsdale, Site Design
Metropolitan Council Honor Award, 1986
· Fergus Falls (MN) Downtown Revitalization Plan
MASLA Merit Award, 1991
· Monticello (MN) Downtown Streetscape Plan
· State Office Building, State Capitol Campus, Master Plan and Site Design
MAIA Honor Award, 1990
· College of S1. Benedict, S1. Joseph (MN) Campus Master Plan
· University Avenue Redevelopment Plan (team leader)
. Northwest Airlines World Headquarters, Eagan, Master Plan
Mr. Martin holds a Professional Registration in Landscape Architecture from the State of
Minnesota. He has 11 years' experience in the field.
In addition to belonging to the American Society of Landscape Architects, Mr. Martin has served
as Chair of the Awards Committee and Public Relations Coordinator for the Minnesota chapter
of ASLA. He is an ongoing participant in the Governor's Design Team.
EDUCATION
Bachelor of Landscape Architecture with Distinction, University of Minnesota
<It.-
STEPHEN KOTVIS. Director of Marketing
MPSI Retail Systems, Inc.
RESPONSIBILITIES
Responsible for expanding client base by developing customers in the industries assigned,
and maximizing opportunities with existing customers to meet assigned revenue goals.
PROFESSIONAL BACKGROUND
Director of Marketing at Retail Systems from 1990 to present.
Associate, Real Estate Advisory Services at Laventhol and Horwath from 1987 to 1990.
Created innovative approaches studying consumer preferences and demands for retail
market potential, establishing development concepts and tenant mix, and preparing
positioning strategies and marketing plans to redevelop downtown, community and
neighborhood districts and shopping centers,
Project Manager, Real Estate Consulting Services at POI Midwest from 1986 to 1987.
Created geographic based demographic method to analyze downtown and neighborhood
development.
Senior Associate, Research and New Client Development at Grey Advertising from 1985 to
1986, Initiated and managed market research projects for agency's new business
development and existing client base, including: 3M-Audio and Video, Dayton-Hudson
Corporation, Honeywell, Northwest Airlines, and Western Life.
Project Associate, Real Estate Consulting Service at POI Midwest from 1983 to 1985.
Utilized innovative approaches to analyze downtown redevelopment potential and prepare
marketing strategies for communities and conducted a number of business development
opportunity studies. Clients included City of Minneapolis, Winona, Bemidji, Des Moines,
and Omaha.
EDUCATION
1978 - 1981
Master of City and Regional Planning and Master of Social Work (Research
Emphasis) from the Ohio State University, Columbus, Ohio.
1976 - 1978
Bachelor of Arts, Social Psychology, Cum Laude from Park College,
Columbus, Ohio.