Competition brewing for spot in historic Eden Prairie house

The popular Dunn Bros coffee shop in Eden Prairie's historic Smith-Douglas-More house may have to compete with a bakery to renew its lease.

To increase rental income on the property at 8107 Eden Prairie Road, the Eden Prairie City Council decided to consider other proposals, which it will review on Nov. 18.

The bakery has been proposed by a longtime Eden Prairie resident who would sell coffee along with cakes, bread and other baked goods, said David Lindahl, economic development manager for the city. The name of the person making the bid will be released when the proposal has been formally submitted, Lindahl said.

Ann Schuster, who has operated the Dunn Bros franchise at the house for the past two years, said Wednesday that she also will try to renew her lease, which expires at the end of December.

A petition in support of Schuster, signed by nearly 400 people, was presented to the City Council on Tuesday by Ann Higgins, a member of the city's Heritage Preservation Commission.

It's difficult to arrange the re-use of a local historic building in a way that respects the building, allows a business to meet its goals and keeps the property open for the public to enjoy, Higgins said.

"This one has succeeded extraordinarily well," Higgins said. "This is of enormous value to this community. How many locations can be described as a place where the community can gather?"

But city officials believe that they can get more rent for the building.

Opening the lease to new proposals has created such concern about the future of the house and the coffee shop that Mayor Phil Young this week believed that it necessary to reassure residents that the council has no intention of selling or closing the house -- that regardless of whoever gets the lease, the house will be open next year with a retail tenant selling coffee and baked goods. The difference, he said, is that the tenant will have to pay more for the lease than the current $30,000 paid by Schuster and a subleasing tenant.

Lindahl is looking for rental income of $20 a square foot for the main floor -- about $43,000 a year -- plus snow removal and grass cutting.

Schuster said she has made a point of opening the house to people of all ages as a place to meet and linger. Young people perform music and do homework there, and seniors regularly meet for coffee, she said.

"My customers really value both the Dunn Bros brand here as well as the way I run the store as a community gathering place," she said.

For the competition for the lease to be fair, the city must clarify its expectations for how the historic house will be used, Schuster said. "I would like to work together with the city to make sure everyone has access -- access where they can stay a while as opposed to just visiting a restaurant," she said.

City Council Member Kathy Nelson said this week, "I would like to hear from each possible tenant what kinds of activities they have planned if they lease from us."

Council Member Brad Aho said he is willing to try to help Schuster stay in the house, but he feels it's the council's fiduciary responsibility to make the most of the lease.

The Smith-Douglas-More was built in 1877 and purchased by the city in 1981 for $140,000 to preserve as a prime example of early homes in Eden Prairie.

Laurie Blake • 612-673-1711