1994-10-13 Cohen Review and Assessment~. ~ _ _ i
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COHEN DEVELOPMENT COMPANY
OCT 1 ~ Ig9A
13 October, 1994 G(,~' r. i`tyd
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Mr. Bob Thistle G~ ; ~ _ ~^^'
Vice President,
' Springsted Public Finance Advisors -
85 East Seventh Place, Suite 100 ~ ~ ~ 'L.iv ~ ~~ = ,~ ~j ~~
Saint Paul, Minnesota. 55101-2143
RE: Albertville, Minnesota; Proposed Factory Outlet Shopping
Center at I-94 and Countv Road 19.
Dear Mr. Thistle,
Pursuant to our conversations in late August concerning the development of a factory
outlet shopping center in Albertville Minnesota, I am enclosing a confidential proforma
for your review and assessment of the City of Albertville's ability to advance or
reimburse Cohen Development Company for the costs of quasi public improvements
necessitated by this proposed development.
With the sole exception of project marketing, we have limited costs for reimbursement to
land and infrastructure improvements as identified on page three of the proforma. In a
departure from our previous position, we have reduced the City's contribution to project
marketing to fifty percent of our projected total cost. We do this in an effort to focus the
City's primary resolve on the significant investment required to prepare the proposed
property for development.
For your interest, I am enclosing a photocopy of an article from the June, 1994 Value
Retail News (outlet industry trade magazine) assessing the performance of the outlet
retailer's "Top 20" centers. Sales per square in these centers range from a low of $225.00
to a high of $450.00. In our preliminary opinion, it would not be unreasonable to project
Albertville Factory Stores with sales of $300.00 per square foot.
As Albertville is now in a potentially competitive development position with the
proposed factory outlet in Clearwater, Minnesota, we urge the City to work pro-actively
with us in completing the agreements which must be in place before we can propose this
project to the outlet industry. Accordingly, we look forward to your thoughts at your
Development 406 South West Washington Street, Peoria, Illinois 61602 309/ 673/ 0790 Fax 309/ 673/ 4308
Management Complete Development, Management, and Leasing of Shopping Centers
Investments and Commercial Real Estate since 1970.
Leasing ~~(~ Member International Council of Shopping Centers
Realtors / ,,,,,,..
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earliest convenience, and hope to have the opportunity of representing the City of
Albertville at the Value Retail News Convention this November 1-2 in Atlanta, Georgia.
If you have any questions, please contact me.
Yours sincerely,
cc: Mayor Mike Potter, City of Albertville
Craig Anderson
John Elias, Esq.
Robert S. Cohen