1996-09-05 Progress to DateWilliam S. Radzwill
Andrew J• MacArthur
Michael G Couri
Megan M. McDonald
September 5, 1996
Mr. Jim Morse
JMJ Properties, Inc.
107 Sinclair Drive
Muskegon, Michigan 49441
RADZWILL & COURT
Attorneys at Law
705 Central Avenue East
PO Box 369
St. Michael, MN 55376
(612) 497-1930
(612) 497-2599 (FAX)
Re: City of a lbertville; Minneapolis Factory Shoppes.
Dear Jim:
As we discussed yesterday, the Albertville City Council
discussed the progress to date on the Minneapolis Factory Shoppes
as well as the future work to be done if the development is to be
built in Albertville in 1997. The City Council appreciates the
time, effort and expense you have invested in the project to date.
The Council considered the concepts that we spoke about on
August 6th, including the possibility of having the City waive the
legal, engineering and planning fees which the City will incur with
this project, and the possibility of structuring certain fees such
as SAC fees so that they are payable over a period of years (e.g.
four years) rather than entirely when the building permit is
pulled, and waiving other non-City expense items, such as a portion
of the building permit fees which the City normally would retain
when a building permit is pulled.
The City Council would like to see the outlet mall locate in
the City, and would like to provide whatever help it can. However,
with a City population of just over 2,200, the City has neither the
general fund nor the tax base from which to shoulder the large
outlays necessary to properly process the proposed outlet mall
development (current City policy requires all developers to pay all
professional and other development costs incurred by the City).
Through July, 1996, City professional fees (including legal,
planning and engineering) are approximately $30,000 over the 1996
budget, with five more months remaining in the 1996 budget year.
As a result, the City Council is proposing an arrangement
where JMJ will pay the City for the development expenses which the
City expects to incur in processing this development (estimated to
be approximately $25,000). If the development occurs in the City,
Mr. Jim Morse
September 5, 1996
Page 2
the City will then reimburse JMJ $10,000 per year for 10 years,
beginning in the first year after the development is completed. If
the development does not occur, then JMJ would not be reimbursed
for the City's expenses paid by JMJ. This arrangement will allow
the City to proceed with the necessary development work on this
project, and at the same time provide JMJ a return of its fees as
well as defray some of the development expenses JMJ will incur.
In addition, the City Council is willing to restructure the
SAC fee so that it is payable over a four-year period, and would be
willing to waive that portion of the building permit fee which
cJOUld o~therc~ise be kept by the City.
If the above proposal is not acceptable to JMJ, the only other
option which the City believes it can afford is to have .the City
and JMJ split the cost of the City's development fees on a 50-50
basis, with no future payback and no restructuring of other fees.
Please consider these options. The City will wait to hear
from you before proceeding further on this matter. Given the
relatively tight time schedule which this project is on, I believe
it imperative that the City and JMJ come to an understanding
regarding this matter as soon as possible.
Sincerely,
~C- ~ -cl
Michael C. Couri
RADZWILL ~ COIIRI
cc: Mr. Kevin Mealhouse
Ms. Liz Stockman
Mr. Pete Carlson
~~,~Mr . Gary Hale