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Northwestern College leases the building from TAT Properties under an interim use agreement that the City granted, and which expires at the end of May 2011. Since the City's approval to allow the use to remain permanently, the College has decided not to renew the lease on the building. The College will vacate the building at the end of this year's school year, and the building will once again be vacant. The City adopted the Guiding Plan for the B2 District in October of 2008. The Guiding Plan identifies the former Holiday Inn parcel as a redevelopment opportunity and envisions a greater intensity of use on the site, including high density residential and retail. While not specifically stated in the Guiding Plan, it has been envisioned that the existing building on the site would be demolished at some point in order to make way for new development that aligned with the goals and principles for the B2 District. Current market conditions, as well as the solid construction of the existing building on the site, have not made demolition of the building economically feasible from the standpoint of the private sector. There are many aspects of the current site layout of the parcel that conflict with the goals and principles of the Guiding Plan. For instance, the alignment of driveways and the location of the building make a future stop light location on County Road E challenging. In addition, the Guiding Plan calls for a greater intensity of use on the parcel, this is difficult to accomplish if the building remains in its current location and configuration. On the other hand, there are components of the current site layout, and opportunities for site improvements that are very much in line with the vision in the Guiding Plan. The building is located close to the street, with the vast majority of parking in the rear. Opportunities exist to improve the exterior of the building and modernize the look of it, as well as significantly improve the landscaping and green space on the site. As the City reviews redevelopment proposals for this property, it will be important to balance the vision laid out in the Guiding Plan with the realities of market conditions, and to take opportunities where they can be found to forward the goals and principles in the Guiding Plan. Project Proposal The applicants have submitted a letter describing their proposed use, as well as sketches illustrating possible site alterations and exterior building modifications (Attachment A). In sum, the applicants are proposing to convert the existing building into a 150 -unit mixed senior housing development. The building would accommodate 14 independent- living units, 30 memory -care units, and 106 assisted - living units. The interior of the building would include a main street, which would have shops and amenities for residents. A shuttle service would bring residents to and from area shops and activities. The site would employ 40 to 50 people over three shifts. City of Arden Hills City Council Meeting for May 4, 2011 IlMetro- inet. uslardenhills\Planning1Planning Cases12011111 -007 - Select Living Concept Review105 -04 -11 - PC - Select Senior Living Concept Review - Memo.doc Page 2 of 4