Agenda - Economic Development Authority - 10/08/2009

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Case # 2 Consider Acquisition of Land for Future Business Park By: Sean M. Sullivan, Economic Development Coordinator Background: Identifying land for a future industrial park was one of the items discussed for the 2009 EDA Work Plan. A concept plan for development of the Pearson Parcel was presented by PSD, LLC atthe February EDA meeting that outlined a development consisting of housing and commercial industrial development. City staff worked with PSD, LLC as directed but negotiations between PSD, LLC and the Pearson's reached an impasse. City Staff met with the Pearson's on June 18th to discuss the acquisition of the real estate located south of US highway 10. Pearson Properties . of Ramsey, LLC is asking 7.2 Million Dollars for the 120 acres of vacant land to be utilized for future development. The asking prices equates to $1.37/ S.F.. When the City purchased Sunfish Lake Business Park in 2001 the price was $0.78/S.F.. Currently the Pearson site is zoned Rural Residential MUSA (R-l). Under the proposed comprehensive plan, this site is guided toward a combination of Office Park and R-1 development with a portion of the property in the Critical River Corridor. This site has some challenges associated with the development; mainly access from Hwy 10 and it proximity to a developed neighborhood. It should be noted that there is also 188 acres of land on the north side of US Hwy 10 that is for sale for 5 Million Dollars, or $0.61/ S.F.. This land is guided toward Medium to High Residential, with a good portion of Commercial zoning. The attached letter outlines the Pearson's intentions and a preferable payment structure for the Seller. The City's industrial land inventory is minimal and we are not prepared to accommodate any large scale industrial user. The City has been very successful in attracting quality industrial development over the years. If the EDA believes that this is a good practice moving toward the future it should consider acquiring land now. If the location of this land is deemed suitable for a business park the EDA should accept, reject, or negotiate a purchase price of the Pearson Property. If a decision is made to purchase, direction tostaffto identify suitable financing should be made. Funding Source: EDA levy, Bonding, Tax Increment Financing Staff Recommendation: Based on Discussion EDA Action: Based on Discussion; Attachments Site Location Map Letter Dated 9/11/09 Draft 2030 Comp Plan EDA: 10.08.09 9.