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MEMORANDUM
TO: File
FROM: Stephen Ryan
DATE: 20 October 1978
RE: K-Mart (St. Croix Mall)
Over the last three weeks, both myself and David Licht have received phone calls
from the office of Richard Bowen (project architect for K-Mart) regarding concerns
over the various site plans submitted on the subject development. On each occasion,
we have attempted to relate to the architect that the St. Croix Mall is being governed
under a master plan established by its current owners (Swager Bros.). We have also
indicated that while the master plan has yet to be finalized and officially adopted by
Oak Park Heights, it is considered as the basic development framework under which
all new mall development will be guided. Accordingly, should the City receive
development proposals which conflict with the master plan, they would likely deny the
proposal or would request submission of a formal change in the master plan (which would
require City review and approval).
Under the present circumstances, where the mall master plan has yet to be completed
and the majority of the mall ownership is held by its "planners" (Swager Bros.) , the
City has expected that problems between K-Mark (tenant), Financial Properties (new
owner/developer) and Swager Bros. (previous site owner and majority mall owner) would
be resolved internally based upon the master plan to which the mall will be committed.
From the City's perspective, it is only logical to expect that Swager Bros, through Financial
Properties, would work with K-Mart in guiding their development proposal to ensure
consistency with the overall mall master plan. However, based upon discussions with
Richard Bowen Architects (Don Creca) and Columbia Engineering (Dick Williams), it is
clear they were not made aware of any master plan until one week ago.
Furthermore, in discussing the master plan and Swager Bros. (as the creators of the plan),
the project architects indicated that they had not heard of Swager Bros. and were unclear
as to the relationship the master plan had on K-Mart's plans. Following this response,
I called Jack Lux (Swager Bros.) to relate to him the obvious problems regarding
communication and coordination between themselves and K-Mart (and/or Financial
Properties). Jack indicated that he would send the architect a copy of the master plan
and discuss the issues with them. He further stated, however, that he did not understand
why Swager Bros. was involved with the City's review of K-Mart's plan. I indicated
K-Mart (St. Croix Mall)
20 October 1978 Page Two
that as the master plan was not complete yet, and as K-Mart was indirectly a client
of Swager's, the City expected Swager Bros.(as the mall owners) to guide their new
tenant through the development process and coordinate their planning efforts.
Two days later (12 October 1978), I received another phone call from the architect
asking for clarification on another site plan item. I asked him whether he had received
a call from Swager Bros. and he replied that he had not. I then discussed the
communication problem with David Licht and asked his opinion on what we should do
to facilitate communication in order to assist the City and K-Mart in resolving any
remaining issues. David called Jack Lux and indicated to him that we were still
receiving calls from the architect and that they, obviously, were still in the dark
concerning Swager Bros.' plans for the mall . David again emphasized that the City
expected Swager Bros. to work with K-Mart and provide them with any necessary
information to ensure that K-Mart's plans would be consistent with the mall master plan.
As a follow-up, David sent a letter to Jack Lux, Red and Norris Swager (12 October 1978)
describing the problem and indicating what was expected of them.
On 9 October 1978, I had a lengthy meeting with Red Swager for the purpose of
discussing the status of the mall planning efforts and to again identify problems with
the K-Mart plans. Such items as direction of drive aisles, use of concrete islands at
parking aisle ends, use of a triangular handicap parking area between Hardware Hank
and K-Mart were discussed relative to K-Mart. The general reaction from Red was that
while these items were indicated (expressed or implied) on the mall master plan, if K-Mart
was adverse to complying with the plan, the City had no right to impose the standards
prescribed in the plan. At one point during the meeting, Red stated that if we (MPR)
recommended to the City that they impose the design standards indicated on the master
plan and as a result, K-Mart decided to back out of their lease agreement "someone was
going to have to pay the piper". At the close of the meeting, Red indicated that he
would work with K-Mart to settle any problems we had identified.
On 19 October 1978, I received a call from Dick Williams of Columbia Engineering.
Prior to returning his call, I put in a call to Jack Lux (Red was on vacation until
November 4th) to indicate that we had received detailed engineering plans (from
Columbia Engineering) for the site (grading, etc.) and that they were still based on the
wrong site plan. Jack indicated that he did not understand what we wanted and
requested that we send him a copy of the plan with our comments. In closing, he stated
that he felt the City had no right to require K-Mart to revise their site plans in accordance
with the mall master plan, if K-Mart might consider dropping the project. I again stated
that the City had no desire to have K-Mart drop the project, though it seemed rather
illogical to expect the City to drop the mall PUD requirements simply because K-Mart
was not happy with being involved in an integrated mall under a PUD plan. (According
to Dick Williams, K-Mart is primarily unhappy about not being informed of the mall
requirements during their early stages of planning.)
K-Mart (St. Croix Mall)
20 October 1978 Page Three
On 20 October 1978, I called Dick Williams (Columbia Engineering) to discuss with
him the problems we saw with their site plan. I related to Dick my previous conver-
sations with Swager Bros. and indicated that the City was expecting K-Mart to
conform with the mall master plan. Dick, in turn, indicated that they now had a copy
of the master plan and had found several aspects of the plpn objectionable or inadequate
for K-Mart's standards.
Specifically, Dick indicated the following problems:
1 . The peripheral driveways around the store as shown on the mall master plan were
too narrow for good circulation and would, as a result, reduce the store's
attractiveness as a convenient place to shop. (K-Mark requires 30 foot wide
driveways or 10 feet more than indicated by Swagers)
2. K-Mart does not want to have any plantings or handicap parking in the corner
between their store and Hardware Hank, as they feel it would distract the consumer's
attention away from their main entrance. (K-Mart wants to have a freestanding
image rather than be viewed as a part of the mall complex.)
3. Neither K-Mart, Columbia Engineering, nor Richard Bowen Architects were told
of the fact that the mall has concrete islands at the end of the parking aisles to assist
in directionalizing the auto traffic circulation in the mall area. Dick indicated
that he could understand why the City would want consistency in the mall design
(particularly where all parking was jointly used) though he expected K-Mart to be
less than pleased about this requirement at this point.
4. The main driveway from Omaha Avenue entering the mall north of K-Mart's parking
area was located over a large slope on the mall master plan. Dick indicated that
it would require considerable fill and grading to place the drive at that location,
and thus they had shown it located further south. This would create a jog in the
peripheral mall driveway and would further reduce available parking (in addition to
the loss of spaces due to the wider driveways).
5. The peripheral drive which is located around the southwestern corner of the K-Mart
building is different from the mall master plan, as the topography information
shows that the NSP towers were sited incorrectly on the master plan.
6. The direction of parking shown on K-Mart's site plan is opposite that shown on the
mall master plan. Dick indicated that it had been set up to create the least
interference with Kentucky Fried Chicken. He further stated that K-Mart does
not want to get involved with cross easements for parking and access with other
mall tenants and thus they attempt to set up the parking to again present somewhat
of a freestanding image. I indicated to Dick that given K-Mart's feelings on
parking and access, he would be well advised to review the mall covenants which
K-Mart would be indirectly subject to as tenants.
K-Mart (St. Croix Mall)
20 October 1978 Page Four
In concluding my conversation with Dick, he said he would get with K-Mart to
discuss the problems noted and get back to me on Monday. He further stated that
it may require a meeting with K-Mart, Swagers and the City to finally resolve the
remaining issues.
I received a call from Jack Lux shortly after my discussion with Dick Williams, telling
me that he had received our comments of the K-Mart site plan. He again said he would
contact the K-Mart people and attempt to get this straightened out.
cc: Ken Heuer
Lyle Eckberg
Otto Bonestroo