In response to the city’s request to find interested developers, Grand Marais City Administrator Mike Roth received a proposal to redevelop the city hall/liquor store from Theis & Talle Enterprises, Inc. which is located in Chanhassen, Minnesota.
Theis & Talle was founded in 1981, and currently owns and manages 6,000 apartment units in five states, primarily in Minnesota. They are partnering with U+B Architecture & Design, Inc. on this submittal.
Concept plans for two potential site-planning options to solicit city feedback were sent to Roth. Both are for a three-story building with surface parking and a combination of public and private uses with 35,800 square feet space.
As proposed, the first floor would accommodate the municipal liquor store with more storage than the current facility has. It would also include a management office and space for private functions and community events such as community meetings.
The first floor would also be available for retail or other forms of flexible space for lease or rent.
The second and third floors would be designed to accommodate upscale and workforce housing options.
Micro-apartments consisting of well-designed and efficient spaces that could accommodate one or two persons in furnished long-term, flexible rentals would be built to accommodate workforce housing needs. The rent would be targeted for residents in the median income range.
Short- and long-term rental housing would be designed for visitors of varying length of stays with a target nightly range from $200-$400 per night depending on size and season. These units are proposed both as traditional hotel-style and apartment style (suites with kitchens), to create a potential hybrid lodging option.
Option 1 would have 25 micro units for workforce housing and approximately 14 lodging “hotel” style units. Option 1 would also have slightly more retail space, but a smaller footprint on the third floor. It also provides 28 parking spaces.
Option 2 calls for some open space (a pocket park) adjacent to meeting/event space to allow for indoor/ outdoor access. It includes 18 workforce housing units and 13 larger units on the third floor, which would provide more apartment style lodging on an entirely built out third-floor plan.
This option also includes a small pocket park that could be used in conjunction with the meeting space to provide outdoor/indoor uses.
“Although conceptual in nature, the site plan is intended to enhance neighborhood vitality in a pedestrian-oriented development while providing needed public and private uses. We would envision a clean and thoughtful design in line with the aesthetics of other U+B projects…”
Theis and Talle also submit that they will “incorporate environmental forward systems and materials” in the building.
Proposed schedule and city relocation
Before anything is done a letter of intent would have to be executed between the city and the developer. In the first 18 months, purchase agreements would be signed, development documents drafted, site plan review and application, construction documents filed, bidding and general contractor selection and financial procurement. From 18-30 months the city would demolish the building and relocate, final site permits and construction of the new facility would take place.
“Due to the public purpose of the proposed project and the high costs involved in developing a new structure of this scale, we would propose that the city sell the parcel for a nominal amount. In turn, the city would benefit from additional workforce housing and lodging options, shared public/ private uses, and a significantly enhanced tax base on the parcel,” signed Laura Russ, vice president of Asset Management and Development.
Council discussion
Councilor Tim Kennedy said of the two options, he was interested in option 1. “Option 2 includes the pocket park which seems like wasted space. It doesn’t seem to be that beneficial to me.”
Councilor Kelly Swearingen said she was disappointed the city only received one proposal. “Are we not that marketable? The liquor store would be their anchor. The proposal kind of fell flat for me.”
Mayor Jay Arrowsmith Decoux agreed with Swearingen that the proposal also didn’t inspire him, but asked if they should invite Theis to come to a council meeting and further explain the plan.
Councilor Craig Schulte agreed, saying the builder wouldn’t have put together a proposal if they weren’t interested in doing a project in Grand Marais.
“What if the city were to take the project on their own?” asked councilor Anton Moody.
City Administrator Mike Roth said the city would have to hire some help, maybe hire McGough, who developed the public works building for the city. “We would have to invest a lot of time and money,” Roth said to Moody.
After further discussion council decided to invite Theis & Talle representatives to come before them so they could ask more questions. For now, all of the options for how the city will proceed to replace the city hall building are on the table. But as Kennedy noted, the building is in bad shape, and something will have to be done sooner than later.
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