ANOTHER NEW RETAIL BUILDING
PROPOSED FOR DOWNTOWN VICTORIA

City Administrator Dave Urbia stated on October 26^th that Matt Crowe of CEI Ventures had requested a meeting with city staff about a new building and development proposal for downtown Victoria. 
The new building would replace the existing "Old Vanderlinde Cafe" on Main Street Victoria, currently owned by the city, and the single family Johnson home adjacent to it.  The two properties lie between the Victoria Post Office and the Notermann Building, owned by CEI Ven-tures.
Stated Mr. Crowe, "I'm proposing a new $2 million project.  I've got tenants to fill it ... My design and tenants are a slam dunk, including a restaurant that would sit 8 to 10 feet off the sidewalk to provide for outdoor seating."
"The two sites together could do a 6,000 square foot building," he said.  "To make it work I need four retail tenants and I've got them.  I want to continue a posi-tive progression in the city.  Those two current buildings are more a detriment to the city.  Planning works out well for me.  I could have tenants in by next December, but something has to happen with this," he said, indicating the current City Hall.  His suggestion is to have it demolished and turned into parking space.
"My team goes out and solicits tenants," he continued.  "It's not just people calling me.  Now I've got a barber shop moving into my building.  People won't have to drive to Chanhassen for regular things."
"When I first came into this city," said Mr. Crowe, "I wanted to help transform it into a destination city like Wayzata or Excelsior."  Regarding such singular shopping, he acknowledged that "the national market will start looking here too," in reference to such nationals as Caribou Coffee, for example.
Mr. Crowe estimated that the new building could be occupied by the end of 2007.
Asked Councilmember Kim Roden, "Why Victoria?  What makes you choose Victoria?"
Replied Matt, "Chanhassen was the last tier of development.  Victoria is the next ring.  Long term it has a large payoff.  I grew up in Carver.  Victoria is quaint and I think it has potential if good people come in and do good things.  When I've got personal risk and it's my money on the line, I want to work very hard to make it happen."

In a cover letter to Victoria City Ad-ministrator Dave Urbia, Mr. Crowe wrote that the top floor of the proposed new building (perhaps a three-story) might be "a great location for City Hall to tempo-rarily lease a new space that would be a much better representation of how great Victoria is, until a permanent location is decided." 
That permanent location for Victoria City Hall is possibly on the west side of the bridge in the new downtown acreage acquired in a land swap with Three Rivers Park District.
About the Matt Crowe proposal for temporary quarters for City Hall, Council-member Kim Roden said, "I'd prefer that to limping along in this building.  Matt's proposal buys us some time.  We could rent space from him so staff can do their jobs better."
Agreed Mayor Jerry Bohn, "It gives us time to figure out what we want.  Renovating the Field House into City Hall is too expensive.  It'd be cheaper to start over than do that." 
Mayor Bohn pointed out that it would take a couple million dollars to retrofit the Victoria Field House into a city office and library complex. 
Planning Consultant Mark Kaltsas was given authority to do a "quick study" to see how viable it would be to relocate City Hall to the top floor of a new Crowe building and replace the existing City Hall structure with surface parking.

BUSINESS SUBSIDY POLICY
ATTRACTING NEW BUSINESS TO VICTORIA
Council adopted a business subsidy policy "to encourage desirable develop-ment that would not otherwise occur 'but for' the assistance provided through muni-cipal subsidies."
City Attorney Mike Norton pointed out that although there are guidelines, "the council retains its discretion."
In order to receive assistance, the recipient must meet a public purpose, commit to retain the business activities at the site for at least five years after the benefit date, and meet a wage floor amounting to 125% of the minimum wage.
A proposed subsidy must improve blighted areas or improve public infra-structure, among other things.  In order for any applicant to receive an amount over $100,000, the city would need to hold a public hearing.

TIF OFFER FOR MACKENTHUN'S

TO BRING MEATS AND DELI STORE TO VICTORIA

On October 26^th city councilmembers unanimously directed the city attorney to put together a developer's agreement to make a Tax Increment Financing offer for a business that hopes to move into the Notermann Building.  That tenant is Cathy Mackenthun and her business is Mackenthun's Meats and Deli in St. Boni. Matt Crowe, owner and renovator of the Notermann Building, was the spokes-man that evening.  "In order for me to execute a lease with this tenant, I have to have this subsidy for the tenant.  We have a final draft lease ready to sign.  Excelsior has already approached her as well, and I don't want that to happen.  We're projecting the store could open sooner than March 1^st, 2007."

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