Posted: 7/10/02

Downtown plans eye start dates

Cliff Buchan
News Editor

One downtown commercial project has broken ground and two more Forest Lake projects are eyeing construction starts.

Work has started on The Plaza, a two-story, 22,000 square foot office-commercial building on the south side of E. Broadway Ave. Utility work and street improvements are also underway along and south of E. Broadway.

On Monday, the cityís Economic Development Authority board heard updates on two proposed projects in the north end of the downtown business district.

Officials of the FHV project said they expect to begin demolition of structures on the south end of N. Lake St. by Aug. 1 and begin construction of a three-story commercial-residential complex by September.

ìItís another stepping stone in our downtown development,î said City Administrator and EDA Executive Director Chip Robinson.

The EDA also learned that plans for the Lake Park restaurant and banquet facility next to Lakeside Park are progressing. The proposed three-story facility would be built on what is now municipal parking lot land directly west of the Lakeside Park boat landing.

Mike Muske, one of the partners, said the goal is to start construction later this year with a spring opening for the lake front eating establishment.

Work is continuing on a development agreement for the Lake Park project. The business would span some 25,000 square feet with a main restaurant and bar on the ground level, the banquet facility on the second floor and condominium offices on the third floor.

The restaurant will have seating for 250-300 while the banquet facility would seat 300, officials said. Project planners said the facility would be designed much like a Fletcherís of Minnetonka with upscale dining and casual areas for patrons coming to Forest Lake by boat.

Both north end projects will be in concert with a redesign of the municipal parking area and street plan.

More details

The FHV project is moving ahead but without the final two parcels of land once earmarked for the project.

The city continues to negotiate for the acquisition of the Van Wirt Building from Craig Schwarten and the three store fronts owned by Perry and Lou Schneller as part of an agreement with FHV. The company has agreed to invest another $400,000 for acquisition of the parcels.

The EDA is prepared to use its power of eminent domain to acquire the land as part of the downtown redevelopment. The EDA has secured appraisals and made offers but has yet to trigger the eminent domain steps hoping to reach an uncontested settlement.

For its start, however, the project will proceed north from the former My Place restaurant and stop at the Van Wirt Building.

ìWe canít wait,î said developer and architect Mark Finnemann. ìWe have to move ahead.î

With steps to acquire the final two parcels moving slowly, Finnemann said for now the developers will proceed without the final two properties. He said the project could be expanded in the future if the parcels become available.

Finnemann said the partners will stand behind their pledge to invest another $400,000 in land costs. ìWeíll hold that agreement in place,î he said.

By moving ahead with a scaled-back plan, Finnemann said the project, dubbed Park Place, will lose about 25 percent of its desired size. He said the project with its mix of commercial and residential space will cover some 27,000 square feet with about 17,000 square feet on the ground floor.

Plans for a dozen lake front housing units have been changed to eight or nine units, he said.

South end update

On the south end of Broadway, work is proceeding on utility, street and parking improvements, but the EDA and city have yet to finalize all details of land acquisition.

City and EDA Attorney David Hebert said negotiations continue with Howard and Ann Ruggles for land owned by the Forest Lake couple. As ìa matter of good will,î Hebert said the city within the next couple of weeks will pay the couple a sum determined by a city appraisal.

That figure has not been made public because the matter is in litigation, Hebert said. Once payment is made, the number will become public, he said.

With the matter still to go before the court, Hebert said the final settlement will likely be higher.

Earlier, the city used a compromise to acquire title for the land taken from the Upperdeck complex.

The city council on June 24 voted to forgive the outstanding 1999, 2000 and 2001 property tax increment payments totaling $22,329 on the Upperdeck. The forgiveness of taxes is in lieu of the downtown land donation.

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