CR 88-14 GBD Market Analysis
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January 1 4 , 1988 Council Report: 88...1l&
CBV MARKET ANALYSIS
fropoeed Actlon.
Start recommends adoption or the rOlIoVing motion: HOVG that the C1t~
Manager be authorized to enter into agreement with Laventbol & Horvath
to conduct a Market Anal sis on the Cl3D at a cost not to e ceed
~23 .350.
A.doPtion of this motion will result in an extensive analYsis ot the
.a~ket conditions in the HOPkins CBD.
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Overview.
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At a recent City Council redevelopment discusSion, the City Council
illstruoted staff to pursue proposals fcr a Market Analysis ot the csn
area.
. Statt has reviewed potential oonsultants and has interviewed Laventhol
& Horwath.
According to a proPosal madQ by Laventnol & Horwath, an an&11s1s would .
be conducted whioh vill study the CaD to define trade areap consu..r
demographics,and identify untilled retail and service needs within the
CBD. It will also make recommendations ooncerning the nature, use lDd
looation of commercial land uses and prepare an implementation plan to
assist Ourrent owners and the City in recrUiting new development.
Primary Issue to Consider.
o Is Laventhol & Horwath a qualified firm to perform the
tasks assigned?
o Are other items necessary to be included witbin the study?
o Is the procedure to be utilized appropriate?
SUPPorting Information.
o Background
o Analysis I
o Alternatives
0 Recommendation
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L Steven C. Mielke
Community Development
Director
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:e C0uncil Report 88-111
Page 2
~Qkground.
The City has attempted in thfil past to redevelop areas of the downtown.
This process has been done by discussing options with interested
develope!"'B and by requesting proposals from thl3 developers on paroels
owned by the City. During the last several years it has beOO:lI8
apparent that attempts at fostering certain types of retail
development have been increasingly difficult. This is somewhat due to
problems with understanding the market in the area and convincing the
City <,\nd or developers that certain uaes will or will not work. SOlie
developments have reached the stage of final approval befor9 finally
be discovered to not have a market which would support the
development. I
Staff" has rscommended to the City Council that a mark,- ~ analys18 be
conaucted on the downtown area which would be of suffioient depth to
inform the C1t y of the nature of the trade area and provide base data
on the CBD ar'Ja to assist 1n redevelopment aotivities.
At a December workshop meeting the City Council authorized statt to
.. seek proposals trom consultants in the retail market analysis area.
Statf has since reviewed various consultants and has interviewed
Laventhol & Horwath.
Analyais.
The proposal presented by Laventhol &: Horwath would:
- study the Hopkins CeD to define its' trade area
- prepare a detailed description at consumer demographics,
quantify purchasing power and identify unrilled consumer
demands for retail and service establishments
- make recommendations concerning the nature and location
for commercial land uses to encourage the strongest
possible retail environment and to maximize the ilse of
under-utilized or inappropriately used commercial
buildings and sites
- prepare an implementation plan that sets forth the steps
and procedures to be followed in assisting current owners
in expansion/diversification, and 1n recruiting ney
development for Hopkins. A list of development p!"ospects
matched to tha retail and service use2 found to have
development potential will be provided.
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.. Council Report 88-14
Page 4
The report by Laventhol & Horwath :ls proposed to be completed by Kay
12, 1988. Several meetings will be held during the prOC'985 to keep
the businesB d13tl'lct and the Council informed of aotivities during
the study period.
The COl!:lt of the project is not to exceed $23,350. Staft bad est1~at8d
the cost to be $20-22,000 when earlier discussions were held witb the
Council.
On oheaking the background of the individuals oonoerned with the
project we have received favorable reports from tbe cities whioh WeN~
contaoted. They have done prior work in both Minneapolis, St. Paul,
Bell.idji, and Winona.
Alternatives.
1- Authorize the hiring of Laventbol & Horwath to oonduct
the analysis.
By approving this alternative, you will set in the motion
the analysis as proposed by Laventhol & Horwath in the
.'. downtown CBD.
2, Request further intormation.
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By doing this you will delay the start of a mar~et
analysis while further information is received or the
scope services is redefined.
3 ' Reject the Laventhol & Ho~wath proposal.
This option will delay or reject the market analysis of
the CBD. Further instruction to City staft will be
necessary if this option is adopted.
Reoommendations.
Staff is recommending that Laventhol & Horwath be approved for the
analysis of the downtown CBD. In reviewing past work that they have
conducted, as well as extensive discussions with them regarding our
situation, we feel comfortable that they are of adequate size and
depth to conduct a good study of th;~ downtown area. They have a
pro'/an past performance which recei'.ed good regard froll previous
cities and the cost of the study is within the budget amonnt available
to the City.
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;& PETITION: MAINSTREET RENOV^TION PHOJr:CT
- PU ll.f>OS I:: I To upgrade Mal.nfitn"ct of 1l('l'kll1n rnr ilnl'ruv,'cl p.'I'ld!i'J.
",ore pl~lIs1n9 !lcNthet i\:n. "tit! <',,'-'Dur,"I" "" l""1 n.'e\.
business Activity.
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k:'.:. We the undersigned hereby requ":!st tit., City oC !lopk.ina t\O undcnolI'itc a
, feasibility study to deterrnino co~t of "tnted objoctlves lIsted ~clow.
I. Return mall to pre-mall cOndlllC"H\ in l(,>t"ms of paral!:;,l
t parking,
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< 2. Return mall to pril-mall condItion with angle parking either
~~; which molY mean nl.rro....er lIIido....lIlkn i1nd ono ..,11'i tt"<1ffic.
3. Complete re~delin9 of Mninat~oot with central them~ of
~urn of centur1 improvement~.
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BLOC BUS.
SIGNATURE "ODneSl> OWNER OWNER ',_,
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k 1l/H/87
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'e PETITION: MAINSTREET RENOVATION PROJECT
PURPOSEl To upgrade Main.treet of Hopkins for improved parking,
more pleAsing aesthetics, and encourage Mainstreet
busine.. activity.
w~ the unde~.i9ned hereby request the City of Hopkins to underwrite a
te<<aibility study to determine cost of stated objectives listed below.
1. Return ~ll to pre-mall condition in terms of parallel
parking.
2. Ret~rn ~ll to pre-mall cor.dition with angle parking either
which may mean narrower ~idewalks and one way traffic.
J. Complete remodeling of Mainstreet with central theme of
~urn of centur~ improvements. ..
BLOG BUS.
OWNER OWNER '-,
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. RED DUlL
PO BOX 3291 MINNEAPOLIS. MINNESOTA 554400329/612932 2132
April 26,1988
Mr. Gordon P. Anderson
Director of Engineering f;
City of Hopkins
1010 First Street South
Hopkins, MN 55343
Re: Red Owl Stores, Inc.
215 East Excelsior Avenue
Dear Mr. Anderson:
This letter is in reference to your letter to Title Insurance
Company of Minnesota, dated January 12, 1988. Red Owl Stores,
Inc. hereby petitions the City of Hopkins to vacate that portion
of Adams Avenue located on the western portion of Red Owl's
facility at 215 East Excelsior Avenu~ legally described on the
. description enclosed herewith. This request arises by reason of
e\ possible gap between the pert ion of AdaBs Avenue vacated by
Ordinance~No 77-432 (Docultent No. 1238736) (a copy of which is
,'. enclosed) and the southerly line of the Red Owl property (Parcel
6 of the survey which was previously Gent to you). In effect, we
~. , are requesting that the vacation of Ada.s Avenue be extended
south of the current vacation line (the second part of
descriptiQD of enclose4 proposed vacation) to the sQutherly Red
Owl property line (the first part of the description of the
enclosed proposed vacation). We believe that Red Owl Stores,
Inc. is the owner of all the land abutting on the part of the
street that is the subject of this vacation request. This
petition is made pursuant to the provisions of Minnesota
Statutes, S e c t i 011 412.85l.
In addition, we hereby request that the City of Hopkins quitclaim
to Red Owl Stores, Inc. . a Delaware corporation, the following
described property:
Southeast.erly 20 feet of Lots 5, 6, and 7, Block 12, and thE':
Southeasterly 20 feet of Lots 3, 4, 5, 6, and 7, Block 13,
West Minneapolis Center, Hennepin County, Minnesota.
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REO OIUL ~r(;Ra.IflL. OFFICES 215 EAST EXCELSIOR AVENUE, HOPKINS. MIl'iNESOT A 55343.8385
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. Red Owl Stores. Inc.
~ Th. intereot in the City .rooe by r..oon of . highw.y ..oe..nt
{ranted by the Minneapolis & St. Louis Railway Co.pany to the
City of Hopkins over the above-described property. Since the
highway has ~lnce been relocat~d and Red Owl currently occupies
the above-described 20 foot strip of property, there is no reaeon
for the City to retain such inte~est. Therefore, we request that
the City deed the property to the underlying owner, Red Owl.
If you have any questions, please feel free to contact our
counsel, Larry Wertheim at 337-9216.
Sincerely,
RED OWL STORES. INC.
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- . 7 ~-i./?~c;..h. (22:~-It.4--C~~.>.._
c. Patrick Schulke
President
cc: Julie Tanner
Larry WertheilD
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