Agenda - Council Work Session - 09/26/2000

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City of Ramsey 15153 NOWTHEN BOULEVARD N.W., RAMSEY, MINNESOTA 55303 PHONE: (763) 427-1410 FAX (763) 427-5543 TDD (763) 427-8591 MEMORANDUM DATE: September 7, 2000 TO: James E. Norman, Administrator FROM: Sean Sullivan, TIF Specialist SUBJECT: BMA Development This analysis was prepared to assist the City in evaluating alternatives for the use of the undeveloped and unimproved property commonly known as the BMA Parcel. The 160-acre parcel is located on the west boundary of Ramsey Boulevard (County Rd. No. 56) and north of US highway No. 10. The study is a comparison between mixed retail and industrial development. This study estimates the impact of each type of development on the tax base and its effect on City tax revenues over a period of time using present value analysis with an inflation factor of 3%. Mixed Retail development will bring a variety of businesses and opportunity for affordable housing. Retail, grocery, financial and restaurant type businesses will be developed on 27 acres on the eastern portion of the property just west of Ramsey Blvd. (County Rd. 56). The corridor will be modeled after a combination of Champlin Marketplace and Champlin Southpond Center with an additional financial institution/office building. 74 acres will be developed into medium and high-density townhouses. This projected development leaves sufficient space for storm water drainage, parks, trails and future development. The commercial/retail development will be built on 19.5 acres on the West boundary of Ramsey Boulevard.just north of US Highway 10. Retail, grocery and restaurant buildings will be built on the site. The square footage of the project will total 157,370 SQ./FT. It will be assessed between $95-$106 per SQ./FT. A 4-story financial/office building modeled after Village Bank in Blaine will be built on a 4.2-acre site. The Assessed value of the project will total $3,763,300 ($88.5 per SQ./FT.). The townhouse complex will consist of 224 medium and 410 high-density units on a 74-acre site. The market values of these townhouses will start at $140,000 and range up to $200,000. See Exhibit A Industrial development is another option for the BMA property. Developing the property industrially would leave 140 acres for an industrial park. Warehouse, manufacturing and distribution businesses would be the occupants of a newly developed industrial park modeled after AEC ENERGY PARK (a joint business venture). The industrial park would be a series of 4 economic districts phased in over a twelve-year period. Each district would, on average, consist of six 45,700 SQ./FT. buildings each sitting on a 5.8 acres site valued ~ $40 per SQ./FT. It would take each district ten years to mature. Current rates of development estimate the industrial park to be filled by the year 2019. The City would begin to receive unrestricted Tax revenues in the year of 2012 and it would continue to increase until it reaches a maximum in the year of 2024. See Exhibit B. -13-