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| We’ll build something at the Bay Center next year! – Editorial by Dan Gustafson. |
Tag: Wayzata Bay Center
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Thought you might want to see what Presbyterian Homes is up to… They want to change the development agreement, and forgive me if I miss or have a detail wrong, but here it is to the best of my comprehension:
- Pres. Homes wants to build only one of the five blocks that has been proposed instead of the three previously agreed upon in order to demolish the structures–however they will settle for two blocks of senior housing
- Pres. Homes wants to delay and extend the timeline for completion to 2014 for Phase I (originally three blocks, now one or two blocks of senior housing) and 2016 for Phase II, the balance of the project.
- Pres. Homes wants to restart the TIF District in 2011 or 2012, as opposed to the false start that occurred in 2009.
Long and short of it is that Presbyterian Homes wants to build one, maybe two blocks of senior housing on the Wayzata Bay Center site, and the rest of it is for sale whether directly from Prebyterian Homes, via a different developer like Opus, etc.Know this as well, the City Council is now weighing a contingency plan for what the demolished blocks should look like in case it takes a number of years for a different developer to purchase and build on the sites.Have a comment of your own? Something overlooked? Put it in the comments box below this post.
Also, please find a memo to the City Council and City Manager from Jay R. Lindgren of Dorsey & Whitney that summarizes Pres. Homes requested changes to the development agreement. DG****************************************This memorandum outlines the terms of the proposed Second Amendment to the Wayzata Bay Center Redevelopment Agreement.
1. Demolition Timing
A special law passed by the Minnesota Legislature in 2010 permits demolition of the shopping center without jeopardizing the ability of the City to continue to use tax increment. The Amendment allows the Redeveloper to demolish the entire shopping center upon receiving a Go Ahead Letter for any one of the following Blocks: East Block, West Block, North Block, Superior Block or Plaza Block. The current Agreement requires a commitment for three Blocks before demolition occurs.
2. DNR Parcel
The Amendment acknowledges that City purchased the DNR Parcel. Consistent with the terms of the existing Agreement, the City agrees to convey the DNR Easement (or an equivalent license) to the Redeveloper at the Land Transfer Closing, subject to DNR approval. This reflects the progress to-date on the DNR transfer.
3. FOFR Agreement
The FOFR Agreement provides the Redeveloper with a right of first offer, first refusal (“FOFR”) on a portion of the Old Superior Boulevard Parcel and the Gas Station Parcel (the “FOFR Parcel”). The FOFR Agreement has a term of five years and was triggered when the City improved the FOFR Parcel with parking this spring. The Amendment acknowledges that the 5-year FOFR term started on April 29, 2011 and will expire on April 29, 2016. The Amendment further stipulates that for a period of five years after the FOFR expires, the City will provide notice to the Redeveloper of its intent to sell the FOFR Parcel or if it considers any offers to sell the FOFR Parcel. This brings greater clarity to what your advisors believe was
originally intended.4. Maximum Redeveloper Amount
Under the Agreement, the Redeveloper had a maximum obligation for Public Infrastructure Costs up to a total $9,839,500. When the First Amendment was adopted in December 2009, this maximum remaining obligation was estimated to be $6,285,000 (the 09202011_CC_Packet Page 6 of 2212 “Maximum Redeveloper Amount”) because of the public improvements costs already paid for by the Redeveloper (like the initial Superior Boulevard Improvements). As a result of the construction of the Initial Superior Boulevard Improvements and the Sanitary Sewer Improvements, the Redeveloper has requested that the remaining Maximum Redeveloper Amount be further reduced to reflect the additional public improvements since the First Amendment. Please note that the actual amount of this number is still being calculated and the
number may actually rise prior to Council consideration of the proposed Amendments as a result of inflation and delayed deadlines.5. Minimum Improvements Completion Timeline
The Amendment extends the commencement and completion dates in the Minimum Improvements Timeline by twelve months. Commencement for Phase I (senior housing on North and Superior Blocks, plus North Linear Park) is now June 30, 2012, with completion by December 31, 2014. Phase II commencement is now March 31, 2015, with completion by September 30, 2016.
6. Public Infrastructure Completion Timeline
The Amendment acknowledges that the Initial Superior Boulevard Improvements, certain Lake Street Improvements and most Sanitary Sewer Improvements have been completed and were financed through special assessments levied against the Minimum Improvements Area. The Amendment requires completion of the Remaining Public Infrastructure Improvements by the earlier of October 1, 2016 or upon issuance of a certificate of occupancy for either the East Block or West Block.
7. Timing and Sequence of Blocks
The current Agreement required the Redeveloper to construct at least three blocks under the Phase I timeline. The Amendment requires only two blocks under the Phase I timeline. All other blocks must be completed under Phase II timing. The current Agreement required construction of the East Block Linear Park simultaneously with the first Block that is constructed. The Redeveloper has instead requested that the North Block Linear Park be constructed simultaneously with the North Block (starting by June 30, 2012 and completed by December 31, 2014) and the East Block Linear Park be constructed simultaneously with the East Block (completed by September 30, 2016).
8. TIF District
The Amendment provides for the decertification and then recertification of the TIF District for purpose of resetting and therefore maximizing the term of the TIF District to include 26 years of collection. The Amendment further provides that the Authority will defer receipt from the TIF District for four years unless the Redeveloper requests earlier collection. This “resetting of the clock” doesn’t increase the maximum amount the Redeveloper can receive, but it likely allows more amounts to flow earlier and makes it more likely the Redeveloper will actually receive the amounts already authorized.
9. Gas Station Parcel Purchase
The Amendment acknowledges that the Redeveloper satisfied its obligations to purchase and transfer the Gas Station Parcel and the transfer and payoff of the Contract for 09202011_CC_Packet Page 7 of 2213
Deed to the City. It further acknowledges that the City has satisfied its obligation to pay $50,000 to the Redeveloper and now has fee title to the Gas Station Parcel. This reflects the current status of the development.10. Satisfaction of Affordable Housing Requirements
The Amendment acknowledges that the Redeveloper has satisfied its obligation to make contributions for offsite affordable housing as required under the Agreement. This reflects the current status of the development.
11. Park Dedication
The Amendment provides that the Redeveloper will have satisfied all park dedication requirements upon completion of the North Linear Park, East Linear Park and Park Plaza. It further provides that the Redeveloper will not be required to make a cash payment for park dedication if the Redeveloper provides the City with all Public Access Area Easements and Park Improvements Easements as required in the Agreement. Your advisors believe this was always your intent, and the Redeveloper has requested this confirmation.
12. Deadline Extensions
The Amendment provides the Mayor with the ability to postpone any deadline in the Agreement, including the deadlines adopted under the Amendment, for up to 90 days if the Redeveloper agrees in writing to each extension.
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The last patrons ever at the Pancake House in Wayzata.
Photo Drew Arvidson.August 15, 2011 at 3 p.m., the Original Pancake House closed.
The Wayzata Bay Center has been the home to OPH for the past 17 years, but it is no longer. Due to the reconstruction of the Bay Center, the Pancake House will be moving to Plymouth.
When asked about the move, Charlie Mejia, restaurant manager, said, “it’s hard because our customers have been so loyal to us, and now we have to leave.” But he made clear that the new location will be better. He is very excited to see the faces of their loyal old customers, as well as a crowd of new faces at their new location.
The new location is at the intersection of CR-6 and 101, OPH is unsure on a date that the new location will open, but Mejia is hoping for the end of October or the beginning of November.
The Pancake House in Wayzata sits empty.
Photo Drew Arvidson.Mejia ended with saying “I would like to thank all of our customers for your loyalty. We are looking forward to seeing you at our new location.”
Stay tuned to Wayzata.com, your Original Pancake House is moving up 101 leader.
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Wayzata resident Jeff Shore posed the question at a recent Wayzata City Council meeting, and sought an answer to whether or not the Bay Center would move forward. “Are we holding Pres Homes to what they originally agreed to do? Our biggest exposure is that it ends up being a hole in the ground. This would be, in my opinion, a tremendous blow to the community if they can’t finish what they agreed to start.”
Mayor Ken Willcox met with representatives from Presbyterian Homes as recently as last week, and indicated, “My understanding is that they have every intention of going forward with the plan as it was structured. The lurching has been happening because of the financial crunch, and that the key markets they would have been building into, namely condos and retail have fallen on hard times. They have readjusted the schedule of what they are going to build first. Everything is still on course.”
Councilwomen Mary Bader asked if their was a possibility that the property along Lake Street would sit vacant. “We know the market for retail has been difficult, the condo market has been difficult, we don’t know about the hotel. The sequence originally was that the buildings along Lake Street would be built first, and the senior housing last. Now that sequencing will be changing, the senior housing will be built first. What is the possibility that the buildings on Lake Street, the hotel, and the retail sections–could that land along Lake Street sit undeveloped for years or decades?
City Manager Al Orsen indicated, “There is no way to guarantee that it will get built. They are promising to deliver the utility construction schedule within the next 30 days.”
An email seeking an updated timeline from Presbyterian Homes representatives was not immediately returned.
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Presbyterian Homes and Services has announced reaching three crucial milestones that clears a path for construction to commence on The Promenade of Wayzata (The Bay Center Redevelopment project) by the end of the year. The first milestone was completing successful mediation with the Original Pancake House on a buyout of their remaining lease. Second is the announcement that Presbyterian Homes and Services has signed an exclusive agreement with Opus Development Corporation, giving Opus the option to purchase the right to develop the retail and condominium portions of the project. Lastly is the announcement that in the first three weeks of potential sign up for the Senior Housing Apartments, 40 of the first 91 units within the Superior Block have been reserved, strongly confirming the strength of the market for this portion of the project.
Since the approval of the redevelopment by the City of Wayzata, Presbyterian Homes and Services has negotiated with each long-term Bay Center tenant on a relocation package or lease buyout. With negotiations successfully completed with the Original Pancake House, agreements have been reached with all tenants, which now allows planning to begin for demolition and construction. The agreement with the Original Pancake House will allow the restaurant to remain in place until October 1 unless they choose to close before, however partial demolition could occur as early as August 15. When asked about the agreement, John Mehrkens, Vice President Development of Senior Housing Partners, stated, “We are pleased to have reached an agreement with the Original Pancake House that will allow them to continue to serve their many loyal customers and hopefully, an opportunity to relocate their business in the Wayzata area. We know the Original Pancake House is a fixture in the community and we’re proud to have had them as an anchor at the Bay Center since 1994.“
Presbyterian Homes and Services has signed a letter of understanding with Opus Development Corporation giving them exclusive rights to undertake due diligence and preliminary marketing of the retail and residential development components of The Promenade of Wayzata. The Opus team has a national reputation for designing and building distinctive and innovative retail and housing developments. When asked why Opus chose to partner with Presbyterian Homes and Services, Dave Menke, Senior Vice President and General Manager for Opus Development Corporation, commented, “Opus has a very similar approach to development as Presbyterian Homes, with a strong focus on delivering superior quality with a distinctive look and design that’s customized to each specific project. We are happy to be involved in a project that will benefit and shape the future of the Wayzata community.“ Opus Development Corporation and Presbyterian Homes and Services will be doing a joint marketing effort for the retail portion of the Promenade of Wayzata in May at the RECon Global Retail Real Estate Spring Convention in Las Vegas, NV.
While there has long been an expectation of strong market appeal for the Senior Housing planned for the community, the inital marketing has vastly exceeded initial projections. Over 300 people attended informational meetings at Wayzata Country Club and hundreds more watched the webinars on the Senior Housing Project, which has been named Folkestone. Dena Kuenzel, Housing Advisor for the Folkestone Senior Community, commenting on the initial response stated, “Particulary in this challenging housing environment, we have been excited at the level of interest in Folkestone. With the first 50 individual meetings with potential residents completed, we’ve already had 40 senior apartments reserved to date. This puts us well ahead of our initial schedule. Given the strong response, I would encourgage anyone interested in learning more about Folkestone to call me at (952) 944-5737, or view our information webinar at http://www.folkestonephs.org.“
Reaching the three milestones continues to clear the path for the current Bay Center to be raised and construction on the new Promenade of Wayzata started by the end of the year.
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The Lakeshore Weekly News is reporting that the Original Pancake House has agreed to leave the Wayzata Bay Center by October 1. Owners Ken and Karen Savik were the last remaining long term tenants housed in the Bay Center.
Owner of the Original Pancake House in Wayzata Ken Savik in a meeting. Photo Dan Gustafson. The agreement between Presbyterian Homes and the Original Pancake house was finalized on April 8, 2011, according to the article. This should clear the way for the developer to move forward on plans for senior housing, retail, and a hotel.The Pancake House will remain open through August 15, 2011, and the Saviks continue to look for a new location to relocate the business.
George Daniels enjoys a cup of coffee at the Original Pancake House in Wayzata. The restaurant is scheduled to close on August 15, 2011. Photo Dan Gustafson. Presbyterian Homes vice president of development John Mehrkens indicated earlier this year that he hopes to begin demolition of the site this summer.
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Since the purchase of the Bay Center property and approval of the Bay Center Redevelopment plan, Presbyterian Homes has been working with all Bay Center tenants to help them relocate their businesses or to buy out their leases. Lease resolution for all but one of the tenants was completed in 2008 and 2009, with the Original Pancake House being the only remaining unresolved lease.
Presbyterian Homes’ goal has been to assist in relocating all tenants who wished to remain in the area. Efforts resulted in the relocation of the Foursome to Plymouth. Other tenants, including the Municipal Bar and Grill, Lindblom Jewelers, Bob’s Shoe Repair, Healthy Foods and Healthy Ways, Picture This Framed and Barber Bob Nash, have been relocated in the immediate Wayzata area where they can continue to serve the Wayzata community. Summit Dance, a 25-year tenant at the Bay Center, will consolidate all classes at their Plymouth studio after completing this year’s dance season in May at the Bay Center studio. Other tenants such as Kraemer’s True Value Hardware and Glaciers have chosen to simply take lease buyout funds and cease operation or concentrate their business plan in other locations.
When asked to comment on the lease negotiations and relocation, John Mehrkens, Vice President Development of Presbyterian Homes & Services, stated, “Our goal from the beginning of the Bay Center Redevelopment project has been to assist all tenants in relocating their businesses or being part of the new Bay Center redevelopment if it fit their business goals. We are very happy to have reached resolution with tenants and are pleased that so many were able to successfully relocate in the Wayzata community. We also realize how popular the Original Pancake House is and what a fixture it is in downtown Wayzata. For that reason, we have offered resolution opportunities including relocation to another site in Wayzata or a lease buyout payment. While our ongoing negotiations have not resulted in a mutually acceptable agreement, Presbyterian Homes and the Original Pancake House have agreed to non-binding mediation in the hope that it will lead to a resolution that is acceptable to both parties.” The mediation is scheduled to take place at the end of March.
At the present time, with the relocation of many original tenants, the center has several new, temporary tenants and periodic public events to maintain a viable commercial environment. April 16th will be the Bay Center’s final indoor farmers market, where a wide variety of exhibitors will feature garden products and ideas. This event will be in conjunction with the American Cancer Society’s big annual fundraising sale that runs from April 13-16 in the former Foursome Men’s Store. On May 1, the Bay Center will host the start of the Wells Fargo Lake Minnetonka Half-Marathon.
For more information on the Wayzata Bay Center Redevelopment, go to www.wayzatabaydevco.com or contact John Mehrkens at (651) 631-6313.
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Presbyterian Homes and Services has announced that the Wayzata Bay Center Redevelopment project will be named The Promenade of Wayzata. It was also announced that the senior housing component of the project will be named Folkestone. When asked to comment on the names, Deb Black, Executive Director of Marketing for Presbyterian Homes and Services, commented, “We feel that the project name, The Promenade, fits the design and goals we have for the development. The project was laid out to have wide sidewalks and porticos, fountains and public art spaces, and substantial green space that’s pedestrian friendly and encourages people to walk through the development and connect with the rest of Wayzata and the beautiful waterfront. Wayzata is known as the Gateway to Lake Minnetonka that people love for its village feel and distinctive shopping and dining, and we feel both the design and Promenade name reinforce what makes Wayzata such a special community. Though the pronunciation is different, the name for the senior housing project was inspired by the seaside village of Folkestone in England. There, Folkestone is a thriving resort area known for its broad promenades, prominent green spaces and breathtaking views.”
Also announced were the dimensions and types of apartment homes that will be included in the Folkestone senior living community. Because of the unique design of the buildings, there will be a wide variety of apartment configurations. There will be over 40 distinctive floor plans, so very few will have the same layout and size. Residents will also have four different types of apartments to choose from, allowing them to select the size and type of home that fits their needs and lifestyle. The following four choices will be offered to residents:
1 Bedroom 700 – 940 Sq. Ft.
1 Bedroom Plus Sunroom or Den 970 – 1,100 Sq. Ft.
2 Bedroom 1,190 – 1,345 Sq. Ft.
2 Bedroom Plus Sunroom or Den 1,350 – 2,420 Sq. Ft.When asked how the specific apartment options were developed for Folkestone, John Mehrkens, Vice President of Development, stated, “Our experience through the years has shown that offering a wide range of layouts and sizes is desirable in order to meet the needs of the total senior housing market. We’re really pleased that the design of the Folkestone buildings will allow many distinctive floor plans in terms of layout and size as well as the potential for the initial residents to select finishes and amenities to further customize their home. Consistent with the desires of the Wayzata community, Folkestone will also have a wide range of amenities including heated underground parking, a theater, library, spa, and fitness center with pool. Because of our beautiful setting, we’ve also included a private deck or patio with each apartment, some of which offer views of Lake Minnetonka.“
Three informational meetings will be scheduled in February at the Wayzata Country Club, for people to learn more about Folkestone, its senior apartment options, and the unique Wayzata lifestyle. People already on the information and mailing list will be sent full details of the meetings at the end of January. Those not already on the list who would like to attend an informational meeting, should call Dena Kuenzel, Housing Advisor, at (952) 944-5737 for more information. People unable to attend the February meetings will be able to view a Folkestone informational recorded webinar. Following the informational meetings, individual appointments will be set up beginning in March so that people can reserve their new senior apartment home at Folkestone. In addition to the senior apartments, the Folkestone property will include assisted living, memory care and care center; information about these other housing options will be provided at a later date.
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Get ready for delectable appetizers, luscious wine, and plenty of shopping and merriment at the Wayzata Bay Center Indoor Farmers’ Market Friday, Dec. 17 from 4 to 7 p.m. and Saturday, Dec. 18 from 9 a.m. to 3 p.m.
“The market is normally a Saturday-only event, but by extending it to Friday, visitors can enjoy a unique evening shopping experience as well,” market manager Julie Butler Faulkner said.
The Dec. 17-18 market is the third holiday indoor market of the year at the Wayzata Bay Center. The October and November events drew crowds of more than 1,000 people, including Minnesota’s former governor Arne Carlson and Minneapolis Mayor R.T. Rybak.
“Wayzata has a great farmers’ market that is made all the better by the fact that it lies within a short distance of some of the best farms in Minnesota,” Rybak said. “I look forward to visiting it again because I’d much rather drive to Wayzata for fresh, homegrown Minnesota food than to have food shipped in from around the world.”
People who’ve been to the Wayzata Bay Center Indoor Farmers’ Market say it offers a welcoming atmosphere and unmatched product quality.
“One local resident even stocks up on vendor goods to take with her when she winters in Florida,” Faulkner said.Children’s photos with Santa, live music, and Christmas carolers make the Wayzata Bay Center Indoor Farmers’ Market a family-oriented event that’s perfect for party planning ideas and thoughtful holiday shopping.
“We have such a unique selection that people will easily be able to find gifts for everyone on their list,” Faulkner said.
While they shop, people can also enjoy complementary appetizers and holiday wine tasting courtesy of Wayzata Wine & Spirits.
The Wayzata Bay Center, conveniently located at the intersection of Lake Street and Superior Boulevard in the heart of downtown Wayzata, has become a hub of artistic talents, featuring an eclectic assortment of handcrafted, recycled/upcycled, and fine art galleries.
Throughout the year, area residents enjoy visiting the Wayzata Bay Center for its one-of-a-kind shops, such as anne & friends, The Artist Gallery, Les Kouba Gallery, Kraemer’s True Value Hardware, The Original Pancake House, Crafter’s Cottage, Kathie’s Finds, and Holly and Ivy Christmas Shop.
For more information about the Wayzata Bay Center Indoor Farmers’ Market, contact Faulkner at (612) 558-0185.
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Emmanuelle Brunel of the Wayzata Bay Center submitted these photos of the Indoor Wayzata Farmers Market that took place Saturday, November 20. The place was absolutely packed!!! Just a reminder, Santa Paws will be there this upcoming Saturday!
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