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14500 Weaver Lake Road

December 12,2016

Project Overview

Merchant's Retail Partners is proposing to build a heated, drive in self-storage building of approximately 89,000 sf at 14500 Weaver Lake Road. The site is a 1.65 acre portion of a 3.33 acre Commercial PUD known as Applestreet Addition.

The proposed building will replace an existing, 4,958 sf International House of Pancakes (IHOP) restaurant building, which is currently unoccupied. This concept plan will provide an important amenity to the citizens of Maple Grove while having a minimal impact on traffic in an already congested area. As compared to the site's currently permitted use a restaurant, average daily traffic flow will be reduced significantly. The proposed plan will also maintain the site's current impervious area ratio while enhancing the site's capacity to manage stormwater.

Other than redevelopment as a climate controlled, self-storage facility, reopening a new restaurant at the site or an alternate retail use would be the most economically viable ways to revitalize the parcel given its high visibility and daily traffic counts exceeding 30,000 vehicles per day. Unfortunately, either use would greatly exacerbate the existing traffic congestion. Redevelopment as a heated, lock up facility would enable the community to realize a high level of utility from the site without substantially increasing traffic flow on Weaver Lake Road.

Building Concept

The building's exterior is designed to reflect the architecture and aesthetic appeal of nearby buildings, such as the Boston Scientific building. The plan includes a 4 story building with a small customer sales area on the first floor. This space would primarily be used for renting storage units and sales of small items such as locks or cardboard boxes. Sales of these small items do not comprise a substantial portion of the business's projected revenue. The operating hours would be 7am - 9pm Monday through Saturday and from 8 am to 8 pm on Sunday. It will be a highly secure facility with digital security cameras covering all internally accessible spaces, parking areas, and the exit driveway. The building will be equipped with a sprinkler system which covers all walkways and individual storage units.

The building will be situated in the northwest corner of the site. As shown on the attached site plan and accompanying rendering, the main building does not extend further south towards Weaver Lake Road than the existing IHOP. An enclosed, drive through loading and unloading space is the only portion of the proposed building that extends closer to Weaver Lake Road than the existing IHOP structure. This heated drive through area will accommodate two moving trucks side by side and is 22 feet in height.

MERCHANTS RETAIL PARTNERS 1 PROTECTIVE LIFE CENTER 12801 HIGHWAY 280 SOUTH, SUITE 345 1 BIRMINGHAM, AL 35223

In response to feedback from members of the local community, trees will be added to the landscape plan between the building and Weaver Lake Road.

Impervious Area

The existing impervious area on the site is 38,599 sf, or 54% of the site area.

The impervious area in our proposed site layout is 37,200 sf.

Parking and Site Access

The plan provides 11 parking spaces.

A cross-access parking agreement is in place for the existing Applewood Addition PUD between the subject parcel and the adjacent Applebee's parcel. While 90 spaces are required on the Applebee's parcel, 116 were provided on the original site plan and remain today. Due to the excess parking spaces on the Applebee's parcel, low parking demands of self-storage, and the cross-access agreement, we feel the parking provided will be sufficient.

The cross-access agreement provides an ingress and egress easement for both parcels comprising the Applestreet Addition. Access to and from the Applebee's will not be lnhlbited by this proposed plan.

Access to our site will be through the southwest corner off Weaver Lake Road. Turing radii will accommodate both small trucks and fire trucks (20' inner, 40' outer radius). An entrance drive aisle leads to the building where entering an individualized access codes permits customers to access the building via the overhead doors shown on the building's south elevation.

Traffic Considerations

The proposed use would be expected to result in a decrease in trip generation potential compared to permitted and alternative uses for the site. Although IHOP has ceased to operate, traffic congestion on Weaver Lake Road still persists.

The 9th Edition of the ITE Trip Generation Manual is used as a reference for traffic counts. As shown in the table below, an 89,000 sf self-storage facility would generate approximately 222.5 trips per day. If the IHOP were to be re-opened as a restaurant and operate at its 212 seat capacity, per the original site plan, it could be projected to generate 1,024 tpd, an increase of 656 tpd over our planned facility's traffic generation projection. For reference, a traffic projection for Applebee's would be comparable as it was approved for 200 seats on the original site plan.

MERCHANTS RETAIL PARTNERS 1 PROTECTIVE LIFE CENTER 12801 HIGHWAY 280 SOUTH, SUITE 345 1 BIRMINGHAM, AL 35223

Trip Generation Summary Land Use Quanity Units Daily Potential Use Rate Trips Heated Self Storage 89 ksf 2.5 222.5

Current Use 5.767 ksf 127.15 733 Sit Down Restaurant 212 Seats 4.83 1024

! Average I I 879 i

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Total Net Change I i -656 I Tablel. Trip Generation Summary

To supplement the ITE traffic analysis, we have included a traffic count estimate based on methodology in the Self Storage Almanac, a leading industry publication. This daily visit projection is shown below in Table 2. The estimated visits per day are compiled from nationwide self-storage usage data and reflect actual usage patterns from similar facilities. This analysis employs a weighted average approach to projecting daily visits because some users access their storage unit more often than others. For example, usage statistics indicate that 33% of self storage users access their unit 1 time per month. If 33% of the total units are accessed once per month, 2376 total trips are created each year. With an anticipated unit count of 600, Spacebox Maple Grove will average around 37 visits per day.

Space Box Maple Grove

Trip Generation based on Self Storage Almanac Data Estimated Visits Visits per Total

per Day Frequency Year Visits

15% < 3 per Year 2 180 23% 3-6Times Yr 4.5 621 33% 1 per Month 12 2376 14% Every 2 Weeks 24 2016 9% Once per Week 52 2808 6% > 1 per Week* 156 5616

Based on 3 per w~.~k..L . ··1·

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# Units 600 T'

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Total Annual Visits I 13,617 ,., ... ,,.,. .... ,, -" .il.~~i~~1m7m Expected Daily Visits f"""" 18ft:' ~I ',t5' " ,,:.,. l~'~;, ~ "

Table 2. Trip Generation Summary based on Self Storage Almanac Data

MERCHANTS RETAIL PARTNERS I PROTECTIVE LIFE CENTER 12801 HIGHWAY 280 SOUTH, SUITE 345 I BIRMINGHAM, AL 35223

Impact on Property Tax Revenue

Spacebox Maple Grove will generate approximately 300% of the property tax revenue that the vacant IHOP currently does. We reached out to Tim Mitchell, the City of Maple Grove Assessor, and Rich Gruber, a Commercial Appraiser, to get a better understanding of how our project might impact the tax base locally. Property tax assessments are based on the market value of a particular property. In this case, redevelopment of the existing IHOP into a self storage facility will significantly increase the assessed value of the property and consequently, the tax revenue generated by it. Recent comparable sales of self storage facilities as well as assessed values would be used to determine the assessed value of Spacebox Maple Grove upon completion.

The Metro Self Storage facility on County Rd. 30 is the most likely comparable to be used in assessing taxable value due to its 2 story design as well as its proximity to the subject site. Metro Self Storage had an assessed value of $3,400,000 or $37.41 per GSF for the 2016 tax year, which resulted in a tax assessment of $132,392, yielding an effective rate of 3.89%. Applying these same metrics to the proposed Space box Maple Grove would result in an assessed value of approximately $3.3 million and corresponding property taxes of $129,665. With 2016 tax on the property levied at $42,119.26, approval of this project will generate more than $85,000 in additional tax revenue annually.

Effective Tax Rev Name Address City Building SF Assessed Val ue 2016 Tax Rate ($/yr per sf)

Metro Se If Storage 16655 County Rd 30 Maple Grove 90,872 $ 3,400,000 $ 132,392 3.89% $ 1.46 Public Storage 9580 Zachary Lane Maple Grove 78,300 $ 2,940,600 $ 113,095 3.85% $ 1.44 Extra Space Storage 2960 Empire Lane North Plymouth 76,430 $ 5,000,000 $ 183,227 3.66% $ 2.40 Public Storage 11601 Lakeland Dr Maple Grove 84,156 $ 2,470,100 $ 94,827 3.84% $ 1.13 ,

i i Average' i 3.81%1 $ 1.61 , Spacebox Maple Grove 14500 Weaver Lake Road Maple Grove 89, 000 ItkS,~,1lf~31$2'Q!49t):»,~$~{;~~~¥1~9;66s<1 3.89% $ 1.46

1** rvI<:t~() ?~ .. u.~e.9.~s !ax and assessed.value comfl.~.!:a~I~ ... i$ 37.41 i ,

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Table 3. Current Property Tax Assessments for Area Self Storage Facilities

MERCHANTS RETAIL PARTNERS 1 PROTECTIVE liFE CENTER 12801 HIGHWAY 280 SOUTH, SUITE 345 1 BIRMINGHAM, AL 35223

Summary

We sincerely appreciate the opportunity to present this proposal to the Planning Committee.

We have worked hard to collaborate with the Maple Grove Planning Department to ensure this project enhances the local community from a traffic, stormwater management, aesthetic, and functionality standpoint. We also appreciate the feedback we have received from members ofthe local community. Their feedback has been incorporated into the design by adding trees to the landscape plan along Weaver Lake Road.

We are appreciative of the efforts of Peter Vickerman and the Maple Grove Planning Department. Their hard work and collaboration has been integral to the development of Spacebox Maple Grove. Considering the currently approved, alternative uses for the site and challenges previous restaurant operators have experienced in the location, we are confident redevelopment as a self storage facility is the highest and best use for the site. We look forward to continued collaboration to put forth a project with positive, lasting impact for the Maple Grove Community. We thank you for your consideration of our project.

Space box Maple Grove Impact Summary Metric Current Proposed Result

Traffic Trips per

632 2240rfewer +++ Day

Architecture - Vacant IHOP Rendering ++ Property Tax

$$$ $42,119 $129,665 +·t+ Revenue Stormwater

Outdated Improved - ++ Management

Community Vacant or Sports 600 Storage ++ -

Enhancement Bar? Units

MERCHANTS RETAIL PARTNERS 1 PROTECTIVE LIFE CENTER 12801 HIGHWAY 280 SOUTH, SUITE 345 1 BIRMINGHAM, AL 35223

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Restaurant Feasibility Study for 14500 Weaver Lake Road

December 6, 2016

Following the Planning Commission meeting on November 14, it was indicated to us that analysis of restaurant options for the site at 14500 Weaver Lake Road would be helpful. For the purpose of this analysis, we analyzed a 2 mile driving distance radius from the proposed Spacebox Maple Grove site at 14500 Weaver Lake Road. In this area, most restaurant categories are represented by 2 - 3+ restaurants, which is an indicator of market saturation. The ability of this market to absorb another restaurant use in this location seems limited. The site's restaurant operating history, along with an abundance of competition from nearby fast food, casual, and higher end restaurants suggests a void in the market might exist in the sports bar category.

The current site is permitted for restaurant use, which could lower the barrier to entry for a restaurant operator. Alcohol is served at the adjacent Applebee's and there aren't zoning restrictions prohibiting a new operator from serving alcohol at the current site.

Given the failure of two national brand casual restaurants, Fuddruckers and IHOP in this location, it is unlikely another casual chain restaurant would find this site attractive. The site's PUD agreement also precludes a future restaurant operator from offering a menu highly similar to Applebee's.

The restaurants most proximate to the site are generally fast food or lower tier casual. As one progresses west from the site, the restaurant selection is almost entirely fast food, which is indicative of a restaurant category this site may support with sufficient market demand.

Generally, the higher tier restaurants such as Pittsburgh Blue, PF Changs, and Redstone American Grill are well represented in the market and concentrated in an area closer to the Shoppes at Arbor Lakes.

For the sports bar category, in addition to Wild Bill's Sports Saloon 1.3 miles away, there is a Duffy's Bar & Grill is located 3.2 miles away.

As a developer with a national presence in retail and restaurant markets, we see the most probable market void to fill with this site being a sports bar. Experience has indicated 14500 is a challenging site for a restaurant to thrive and be successful. As part of this study, we compiled a list of restaurants near 14500 Weaver Lake Road, which is attached below.

MERCHANTS RETAIL PARTNERS 1 PROTECTIVE LIFE CENTER 12801 HIGHWAY 280 SOUTH, SUITE 345 1 BIRMINGHAM, AL 35223

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Restaurant Market Analysis for Maple Grove - Proximity of 14500 Weaver Lake Road Driving Distance

Restaurant Address (mi) Descri ption Category Applebee's 14400 Weaver Lake Rd 0.07 Casual American bar & grill chain Casual Taco Bell 13910 Grove Dr 0.4 Mexican-inspired fast-food chain Fast Food Burger King 13840 Grove Drive 0.4 Fast-food chain for grilled burgers Fast Food DQ Grill & Chill

13770 83rd Way N 0.4 Longtime ice cream & fast-food chain Fast Food Restaurant Frankie's Chicago

13724 83rd Way N 0.5 Counter-serve with pies, pasta Fast Food Style Pizza Chin Yung

13704 83rd Way N 0.5 Chinese Restaurant Hong Kong 13631 Grove Dr 0.5 Easygoing eatery serving Chinese fare Chinese Subway 13758 83rd Way N 0.5 Build-your-own sandwich chain Subs / Sandwich Wendy's 13645 83rd Way N 0.5 Fast-food burger chain known for shakes Fast Food Kyoto Sushi 13751 Grove Dr 0.5 Roomy Japanese restaurant with a buffet

Papa Murphy's Take 13541 Grove Drive 0.5 Chain for custom cook-at-home pizzas Fast Food

'N' Bake Pizza

Golden Corral 13603 Grove Dr, Maple

0.5 Casual Grove, MN 55369

EI Rodeo Mexican 13572 80th Cir N 0.6 No-frills spot for familiar preparations Mexican

Restaurant McDonald's 13595 83rd Way N 0.6 Iconic fast-food burger & fries chain Fast Food JC's Bar & Grill 13540 Grove Dr 0.6 Basic spot for happy hour & karaoke Bar & Grill Domino's Pizza 13590 Grove Dr 0.6 Longtime pizza chain known for delivery Fast Food Great Harvest Bread

13714 Grove Dr 0.6 Bakery chain serving whole-grain breads Casual Co. Angeno's Pizza &

13588 80th Cir N 0.6 Fast Food Pasta Taco John's 13320 Grove Dr 0.7 Fast Food Broadway Pizza 7951 Elm Creek Blvd N 0.7 Family-friendly spot for pies & subs Casual Jimmy John's 8099 Wedgwood Ln N 0.7 Subs / Sandwich Arby's 7885 Wedgewood Ln N 0.8 Fast Food Papa John's 7973 Wedgwood Ln N 0.8 Fast Food Famous Dave's Bar-

7825 Vinewood Ln 0.9 Bar & Grill BQue 3 Squares

12690 Arbor Lakes Pkwy N 1.2 Casual eats, drinks & dog-friendly patio Casual Restaurant Claddagh Irish Pub 7890 Main Street North 1.2 Celtic bar for pints & classic pub eats Bar & Grill Pieology Pizaria 7860 Main Street 1.2 Casual Sawatdee 7885 Main St 1.2 Casual 5 Guys Burgers &

7814 Main St N 1.2 Fast Food Fries Zushiya 7885 Main St 1.2 Casual The Lookout Bar &

8672 Pineview Ln N 1.3 American fare, a huge patio & live music Bar & Grill Grill

Malone's Bar & Grill 12635 Elm Creek Blvd N 1.3 Eatery with American fare & cocktails Bar & Grill

Nat Nat Gril 12725 Elm Creek Blvd N 1.3 Casual Wild Bills Sports

12730 Elm Creek Blvd 1.3 Bar & Grill Saloon

Buca di Beppo Italian 12650 Elm Creek Blvd N 1.3 Casual Restaurant Jersey Mike's Subs 7744 Main St N 1.3 Subs / Sandwich Chipotle Mexican

7750 Main St. N 1.3 Fast Food Grill Panera Bread 7778 Main 5t. N 1.3 Fast Food Panda Express 12725 Elm Creek Blvd N 1.3 Chinese

Olive Garden 12520 Elm Creek Blvd N 1.4 Family-friendly Italian restaurant chain Casual Red Lobster 12515 Elm Creek Blvd N 1.4 Casual

Patrick's Restaurant 12489 Elm Creek Blvd 1.5 Casual and Bakery

Potbelly Sandwich 12409 Elm Creek Blvd 1.5 Chinese Shop

Rodizio Grill· Maple 12197 Elm Creek Blvd N 1.7 AII-you-can-eat Brazilian steakhouse Upscale Grove

Biaggi's Ristorante 12051 Elm Creek Blvd N 1.7 Classic Italian fare & a casual setting Casual Italiano

Redstone American 12109 S Main St 1.7 Upscale Grill

Punch Neapolitan 12107 Elm Creek Blvd N 1.7 PF Chang's 12071 Elm Creek Blvd N 1.7 Casual Jersey Mike's Subs 16375 County Road 30 1.7 Subs / Sandwich Granite City Food & The Shoppes at Arbor Lakes,

1.8 American fare plus an on-site brewery Bar & Grill Brewery 11909 Main St Pittsburgh Blue The Shop pes at Arbor Lakes,

1.8 Hand-cut steaks, seafood & happy hour Upscale Steakhouse 11900 Main St Benihana 11840 Fountains Way 1.8 Casual Chick FiI·A 11820 Fountains Way 1.8 Fast Food TGI Fridays 11830 Fountains Way 1.8 Casual Cafe Zupas 11669 Fountains Dr 1.9 Hearty soups, salads & sandwiches Subs / Sandwich Z's Smokin Bonez 16362 County Road 30 1.9 Fast Food Firehouse Subs 11649 Fountains Dr. 1.9 Fast Food Jet's Pizza 16338 County Rd 30 1.9 Fast Food Dave & Busters 11780 Fountains Way 1.9 Casual India House 11611 Fountains Drive 2 Upscale Freddy's Frozen Custard & 11600 Fountains Dr 2 Steakburgers Fast Food WichWich 9416 Dunkirk Ln N 2 Subs / Sandwich Dickey's Barbecue

11631 Fountains Drive 2 Casual Pit

Culver's Maple Grove 16380 96th Ave N 2.1 Casual

Chipotle Mexican 9881 Maple Grove Prkwy N 2.1

Grill Fast Food

~he Original Pancake 6322 Vinewood Ln N 2.5 Basic chain featuring breakfast all day Casual ouse

Olympia Cafe & 247 Central Ave 3.2 Gyros

Duffy's Bar & Grill 337 Central Ave 3.2 Bar & Grill Life Cafe 12525 Weaver Lake Rd

Total 69

Restaurant Market Summary 14500 Weaver Lake Road

Restaurant Category Total Fast Food 21 Casual 21 Bar & Grill 8 Subs / Sandwich 6 Upscale 4 Chinese 4 Mexican 1 Other 4 Total 69