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Attachment A Mr. Schroeder responded that, during his 14-year tenure with the college and continued growth, there had been an inconsistency between housing and academic space, never truly aligned. Mr. Schroeder advised that this would accomplish that alignment. Mr. Schroeder advised that as a residential college, one of their strategic goals had been to keep residential housing at approximately 67%, with the remaining students in the "commuter" category; but that currently those numbers had dipped to below 60% available for residential housing. Mr. Schroeder noted that the college had gone through this process once before, collaborating with the City of Arden Hills, when the college entered into a three-year lease for the former Holiday Inn on County Road E, retrofitting it into student housing. However, Mr. Schroeder advised that the facility was found to be too large in accommodating 360 — 370 beds, and too remote to the campus; as well as being affected by the economic challenges during that time period. Now that the economy and enrollment has stabilized, Mr. Schroeder advised that they were also finding that families wanted students to have campus living experiences for a sense of community, personal safety, and the cost of gas prices for commuting students. Therefore, when this opportunity came along, Mr. Schroeder stated that this property could be turned into a successful housing facility immediately adjacent to the campus. With the University's long-standing relationship with Presbyterian Homes, Mr. Schroeder advised that the plan was explored, and came together at a price point that was favorable to the relationship; they had approached City staff to see if it could be accommodated in the zoning code. Member Daire asked if the current "Pippins Restaurant" was part of the acquisition. Mr. Schroeder advised that Pippins had a lease agreement with Eagle Crest/Presbyterian Homes, owner of the hotel, and that legal, binding contract put Pippins in control of that decision as long as the property remained a hotel. If that use no longer existed, Mr. Schroeder advised that the lease contract provided the right for Pippins 30 days to make a decision to stay or vacate the lease arrangement. At this time, Mr. Schroeder advised that the owner of Pippins had indicated that they intended to stay, and that the University would honor that and continue their lease as an inside facility not owned or operated by Northwestern. Mr. Lindgren opined that the Pippins ownership seemed somewhat excited by the prospects of this as well. Member Daire asked if the remote housing location from the campus may be a consideration of increasing the restaurant business, and whether or not that had been a consideration. Mr. Schroeder advised that they had tried that business model in Arden Hills, and while the perception is that it will work, they had found it not feasible for a"grab and go" or luncheon type of facility. Mr. Schroeder affirmed that it was a nice "hang out" place for students, but from an economic standpoint, there wasn't enough revenue generated to pay staff and cover food costs. Therefore, Mr. Schroeder advised that Northwestern didn't see their involvement short- or long-term in a restaurant; and if Pippins decides not to remain on site, Northwestern would most likely consider another independent restaurant option (e.g. Pizza Ranch). Mr. Schroeder stated that most students ate their significant meal mid-day; and the student housing would accommodate their ability to make breakfasts or evening snacks in their units; but big meals would continue in the middle of the campus for the most successful social community and economic reasons. Chair Gisselquist closed Public Hearing at approximately 7:50 p.m.; with no one appearing for or against. Member Boguszewski opined that changing the use from "dormitory" to "student housing" seemed to align with the type of use; and that to him it seemed a wise decision, and he would support it, as well as the remainder of the request. Since other aspects of the University of Northwestern's plans were presented to the Commission several months ago, and approved, Member Boguszewski continued his support for that