05.03 - Oasis Mall Revitalization Project

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`- January 26, 2010 To: The City Council Members of Pequot Lakes Re: Proposed Revitalization Project of the Oasis Mall Dear Council Members, BLMM LLC (the holding company of the Oasis Mall) is very pleased to present this proposal for a potential revitalization project for all or parts of our mall. For ease of understanding I describe the various options available to us and refer to them as A, B, and C. Option A). We have completed negotiations with JP Tylor Inc to raze the south end of the mall (from the liquor store south) and construct a new facility for the addition of a Dairy Queen Grill and Chill with Drive - Through. The total investment for both parties is well in excess of One Million dollars. Financing has been secured by both parties and we are hoping to begin construction by March 1St and be open for business by June 1St, at the latest. M, Option B). We are evaluating either a raze and rebuild of the current liquor store or a full remodel of that existing square footage. There are many options available for this aspect of the project and they are being evaluated by the day. If we go with option to raze, it would happen simultaneous to the DQ project. Should the remodel project happen, it would be completed by May 15th. We submitted our financing package to the SBA last week, which coupled with the cost to raze and rebuild will determine our decision. Option C). This option is to raze the entire mall. This, however, would be a real challenge given the timelines. This project would include a common hallway with the DQ on one end, C- store, bait shop, and Laundromat on the opposite end with the Liquor store in between. As with Option B, building costs are being figured and financing is pending. Two complications with this option are that we are under a very tight timeline and the current restaurant tenant has over two years left on their lease. Both would need to be resolved in order to make this a viable option. Due to the variables mentioned in Options B and C, our construction plan is designed as such to add either to the DQ portion (Option A).