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<br /> ,
<br /> Previously, it was understood that Phases 11 (AmberJack) and Phase IV (Apache Paper) would be
<br /> built initially and then would be followed by Phase III (Welsh Companies or other). Therefore, .
<br /> the initial construction of buildings that would take place in the GBD before the Round Lake
<br /> Road and Highway 96 intersection was improved would be 176,532 square feet (104,532 sq.ft. +
<br /> 72,000 sq.ft.). If the Phase III building was added in the Spring of 1998 construction package,
<br /> then 292,107 square feet (104,532 sq.ft. + 72,000 sq. ft. + 115,575 sq.ft.) would be built prior to
<br /> the improvements at the Round Lake Road and Highway 96 intersection. The 292,107 square
<br /> feet of buildings would be scheduled to receive occupancy permits in August of 1998. The City
<br /> estimates, in a best case scenario, that the Round Lake Road and Highway 96 intersection would
<br /> not be open to traffic until October or November of 1998. Therefore, this proposal does not
<br /> comply with condition #1 of the City's approval of the PUD in Planning Case 97-06.
<br /> On Monday, February 2, 1998, the City and Welsh Companies (Dick Zehring) were informed by
<br /> Benshoof and Associates (Peter Hultgren) that their initial traffic study was flawed. Benshoof
<br /> and Associates stated that the traffic report for the Phase 11, III, and IV buildings did not include
<br /> the tratlic from Phase I. In short, when they stated that 200,000 square feet of capacity was
<br /> available at the intersection, that figure did not include the 155,000 square feet of Phase I.
<br /> Therefore, only 45,000 square feet of capacity is available in the intersection before an upgrade is
<br /> required (ie., Phases 11, III, and IV cannot be occupied until the intersection is improved).
<br /> Discussion
<br /> On Wednesday, February 4, 1998, Dick Zehring of Welsh Companies, Tom Hart (attorney for
<br /> Welsh Companies) of Winthrop and Weinstine, Jim Benshoof (representing Welsh Companies)
<br /> of Benshoof and Associates, Peter Hultgren (representing Welsh Companies) of Benshoof and .
<br /> Associates, Greg Brown (representing the City) ofBRW, Tony Heppelmann (representing the
<br /> City) ofBRW met with City Staff (Brian Fritsinger, Terry Post, and myself) to discuss options to
<br /> solve this problem.
<br /> Option # 1 would be not to issue the certificate of occupancy for Phases II, III, and IV until such
<br /> time tllat the intersection at Round Lake Road and Highway 96 is reconstructed (at earliest
<br /> October or November of 1998). Welsh Companies finds that this option is unacceptable, due to
<br /> agreements they have signed with tenants who need to occupy space prior to that date. Welsh's
<br /> position in relationship to this option is that it would effectively kill the deal. Staff would
<br /> conclude that this option has a high probability of killing the deal.
<br /> Option #2 would be to install temporary control structures (ie., temporary signals) at the existing
<br /> intersection of Round Lake Road and Highway 96 until the "new alignment" is complete.
<br /> Initially, this option appeared to offer a great amount of appeal. However, upon further review,
<br /> the cost of this option (approximately $100,000), its timing (approvals from MnDOT alone
<br /> would take until approximately September of 1998), and who would pay (at the meeting, no one
<br /> stepped forward) would indicate that this option is possible, but not preferred by Welsh
<br /> Companies or the City Staff.
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