02/06/12 Work Session - Laserfiche WebLink

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Commissioner Strommen cautioned the use of terms like "similar to Massage Envy ". Ms. Nelson stated that she will come back to the HRA with a final form. 3. Consider Restrictive Covenants for the On -Site Sale of Motor Fuels Associated with the Sale of Property at Sunwood and Armstrong Boulevard HRA Executive Director Nelson stated that the Development Team has been working with potential buyers of parcels at both Sunwood Drive and Ramsey Boulevard and Sunwood Drive and Armstrong Boulevard for the development and operation of gas /convenience stores. They have asked for consideration of an agreement of exclusivity covering all remaining HRA property if the buyer were to close on both sites and as long as they maintained operation of both sites as a gas /convenience store. Ms. Nelson stated she would like the HRA to consider answers to these two questions: Would the HRA consider this exclusivity over all remaining HRA property if the terms proposed by the buyer were met and does this meet the current and long- term vision of the project. She added that the exclusivity would essentially prevent any additional uses of this type from coming forward in the future and sets the number and locations of this use with the project. She continued that if the Development Team was successful in narrowing the scope of the exclusion to the east and west ends of the project, it would only free the center of the project from an exclusion, and that would likely be considered the least desirable location in the current vision for the project. Ms. Nelson pointed out that the restriction/exclusive currently requested by the buyer has been drafted as an exclusive for "the on -site sale of motor fuels ". Other fuels may be sold such as cylinder exchanges, camping fuels, etc and would not exclude retailers over 50,000 square feet that sell fuel as an accessory use, such as Costco, etc. Therefore, this would not preclude gas as an accessory use. Development Manager Lazan stated that the Development Team will have discussion with the buyer along the way. Our first inclination is to get that done and include as small an area as possible. He asked if the HRA wants to keep their options open, the team will go back and negotiate a smaller area. Commissioner Wise stated that there is already a track record of quite a few of these developments. He stated he is a fan of giving some exclusivities but felt it should be based on population or something like that. Chairperson McGlone stated that the buyer is hoping for exclusivity within Ramsey and Armstrong Boulevards, inside The COR — and only on HRA owned land. He felt that by granting that, we would not be really prohibiting development or getting in the way of other businesses. It's a negotiating factor and he was excited about being able to sell two lots at once. Commissioner Elvig stated he is not really in favor of agreeing to their conditions without getting something in return — like the bank that paid another $500,000 for that condition. We have enough controls through the Conditional Use Permit process. Housing and Redevelopment Authority / February 6, 2012 Page 9 of 11