Correspondence 1985-1989 Dahlgren

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� l�J • Planning Office Hours June 25, 1986 Page 3 3. Ruan, 546-4755 Carl Rosen, realtor with Meadow Brook properties out of Minneapolis, was in with Walter Miller, real estate represen- tative of Red Roof Inns out of Halliard, Ohio (614-876-3312). Red Roof Inns is a privately held mo�el chain consisting af 170 Inns, totaling 17,Q00 rooms, developed over the last fourteen years. They are reported to be number two behind ALQ in the mid-range motel market. They are in Chicago, �lashington, Bostan, Charlotte, Dallas, and ather places. Annual income is $131 million, with an average occupancy rate of 87.2 percent. Mr, Miller reports that high quatity is maintained by an impromptu inspection four times a year of 270 items. Thes� inspectors op�rate out of the home office and come unannoun�ced, If more than ten percent ot t2xese items are found defective, the manager and his assistant lase their Christmas bonus �it's a tough world out there). Walter Millex is interested in developing the Ruan site, consisting of 4.88 acr�s, pxeviousl� proposed to be developed by Di11an Inn. we reviewed previous plans for this site, suggestinq to Mr. Miller that th�s site would ind�ed be a successful site for their kind o� aperation. We furnished Mr. Mil�er with a copy af the Laventhal & Horwath report, which c�efines a market for thi� type of motel in Rosevill�. Mr. M�.1].er not+�s that they hav� already established motels ir� �urnsville and Woodbury, and desire to locate i� RosevilleW This site ��as previaus��r pxaposed for 138 rooms k�y the �?illon people, with a contiguous resta►ur�ant. 9. Salzl, 339-6122 Jim Salz� is witt� th� Housing Alli�an�e D�velopment Company, anrl was in to inq�cire about the transfer of �i�l� Qf a portion of land as agreed up�n to the City for park purpasess We noted tha� this could be dQne by deed, and would not require a lot di�risior�. Thc�y are alsa to f�axnish �� the City a skorrn sewer ea�s�m�nt witM a r��.ocat�d pipe system going through t�he prop�rty. Th� first ghase consis�s of sixt�r uni��, and th�y� are cont�mplating the possibility of �he ��maini.r�g thirty-nine units in the seconel phas� being rental ra�her than condo. This brings u� �he probaem of eiividing the land b��reen th� cawt�ership b�r th� Cando Association and thc deveiop�r, if the remaind@r are rental. I suqg�sCed that this could get rather complicat�d in terms o� who is p�oviding what services, and what happ�ns if ax�e ar the ather go�s bankrupt. I suggesteci their attorne�r talk to th� City Attorn�y regardir�g t�chniques for handiing this passible combination. It would appea�r to us that � g.U.D. and a lot �tivi�i�� would be required. � Mr. Salzl noted th�y have no� mad� a d�cision to go rental on the second phase. I sugg�sted �hey not do that, and eliminate the complicated process and effect inhexent in this combinatican within a single struc��r�.