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<br />ARDEN HILLS REGULAR CITY COUNCIL MEETING MINUTES <br />SEPTEMBER 9,2002 <br /> <br />5 <br /> <br />. <br /> <br />. <br /> <br />the original18-month extension because they believed Chesapeake was intending <br />to negotiate, and intended to acquire this property. He stated his clients believed <br />18 months was reasonable, but there had been no due diligence in proceeding on <br />this or acquiring the property, and Chesapeake has had no communication with his <br />clients for the past year. He stated his clients had listed the property for $300,000 <br />below the market rate from two years ago. He noted nobody was interested in <br />purchasing this property for market value as long as there was a cloud of <br />redevelopment. He stated his clients wanted to be released from this cloud of <br />redevelopment so they could market their property. In the alternative, he suggested <br />they extend the Master Plan PUD approval for as minimal time as possible, and to <br />require Chesapeake to negotiate with due diligence. However, he respectfully <br />requested that the extension be denied. He noted their appraiser had indicated it <br />was very unlikely that anyone who had an interest in this property was going to <br />buy it and then move their business operation into it knowing that at anytime they <br />could be forced out because of a possible redevelopment. He stated this <br />significantly affected what interest there was in the marketplace. He asked the City <br />hold Chesapeake to a standard of good faith and due diligence. He stated AT.S. <br />Steel, Inc. had communicated directly with Mr. Carlson, but there had been no <br />willingness on Chesapeake's part to engage in negotiations, and the previous <br />Chesapeake offer had been withdrawn. <br /> <br />. <br /> <br />Peter Carlson, Chesapeake Companies and CUK Holdings, updated Council <br />on what had happened since they had granted the PUD. He stated they were not <br />able to start marketing the property until after the closing with Morris <br />Communications on December 31, 2001. He indicated it took approximately one <br />month after that to start the marketing of the property. He indicated they have had <br />seven full months to market the property, and they had spent a substantial amount <br />of money to market it and finalize different analysis from civil engineering, <br />surveys, etc. He indicated they had been pleased with the response, but with the <br />economics of the nation at this time, the market had gotten worse from when they <br />first started this process. He stated they were right now talking with a national <br />company and were hopeful these negotiations would work out. In response to <br />AT.S. Steel, Inc. comments, he believed Chesapeake had attempted to negotiate <br />with AT.S. Steel, Inc. on this. He stated they could not pay a premium however as <br />this would ruin the viability of their project. He stated their first offer had been <br />rejected. He indicated when he had met in August with Mr. Beeson and A.T.S. <br />Steel, Inc. they had an asking price of 3.4 million. He indicated Chesapeake was <br />trying to be reasonable, but could not afford $88.00 per square foot, so they turned <br />