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NOV-04-97 09 :26 AM PELSTRING01 5509221 P. 04 <br /> 1. The appraised value for the "buy out" of the mobile homes far exceeded our <br /> preliminary estimates. If the developer pays the costs, as appraised, the our overall <br /> project costs increase by over $300,000. <br /> 2. The site needs considerable fill to bring the development sites to a proper <br /> elevation which justifies the proposed retail/commercial uses. Additionally, we are <br /> concerned that there may significant additional costs for soil corrections. <br /> 3. The plat indicates a pipeline on the site which may have to be relocated. The <br /> costs for relocating the pipeline could easily range from $250-$600,000. <br /> 4. Should the EDA be willing to consider TIF assistance, what types of costs <br /> would they have a preference to fund? <br /> 5. The addition of an office/showroom component to the project adds to the <br /> overall cost and is much more speculative than the planned retail/commercial uses. <br /> How would the EDA anticipate participating in this aspect of the project? We had <br /> • briefly discussed a potential EDA/developer "joint venture". How would you <br /> anticipate that we structure this aspect of the project? <br /> SUMMARY <br /> We have appreciated your cooperation and assistance in these matters. At this <br /> stage, however, it is clear to the developers that the project is not viable without <br /> City assistance. We appreciate the opportunity to review the project and these <br /> development issues with the Economic Development Authority. <br /> Sincerely, <br /> PELSTRING CAPITAL CORPORATION <br /> PtrAtitk C,c� . <br /> PJMtn) <br /> Patrick W. Pelstring <br /> cc: Tony Gleekel, Siegel, Brill, Gruepner, Duffy & Foster <br /> 10 Mathias Fischer, Associated Builders of the Twin Cities <br />