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have reduce architectural design requirements. <br />- The land is currently not platted and therefore would have development expenses and fees. <br />- Funds to construct the final lift of asphalt on the streets are current held in escrow (from the previous developer), <br />so the City will be able to provide that at no additional cost. <br />- The proposed purchase price for the 3 acre parcel is about $1 per square foot ($130,680). Current cost basis in the <br />land, fully loaded, are about $7.16 per square foot ($935,669). The market value of the property, improved, may be <br />in the $3 -5 per square foot range, but staff will need to do additional research. <br />- Conclusion: the offer for the property is low for the value of the property. However, this property has been <br />vacant for a number of years, unsightly, highly visible to Bunker Lake Road, and is difficult to develop with other <br />product types. The City should consider a counter proposal as it would be a benefit to have this parcel developed. <br />2). Land Exchange Proposal: <br />A) PSD Parcel (proposed to be given to the City) <br />- 3.38 acres in size <br />- About one -half the site is currently a drainage easement in favor of the City. The City Engineer has determined <br />that the area is not needed for the current drainage plan and the easement may be vacated and the area filled to <br />make a buildable lot. <br />- this parcel is commercial /office land and has exposure to Highway 10. <br />- The property is located next to the Medical Examiners Office which may limit some uses. <br />- The property is triangular in shape which diminishes its value for development. <br />- The site plan for the area surrounding this property is current unknown. <br />- This property is planned to have a single - loaded frontage road on the south, and a road on the east side that will <br />be a development expense. <br />- The most likely use for this property is as an office building. <br />B) City Parcel (proposed to be received by PSD) <br />- 3.36 acres in size <br />- This parcel appears to be at -grade and to have good soil conditions. <br />- This parcel is on existing roadways with only minor road modifications needed. <br />- The parcel is close to COR amenities such as the Draw Park, Lake Ramsey, and the Parkway. <br />- The property is highly visible and and "entry -way" parcel to the development. Construction of a quality project <br />on this site would be a plus. <br />- The City has had strong interest in this site from multi - family developers due to its location to transit and other <br />site amenities. <br />- The property is a square -shape which maximizes its use for development. <br />Recommendation: <br />Staff recommends that the HRA offer a counter proposal on the land sales price for purchase and consider other <br />parcels that are more comparable in value for the land exchange <br />Funding Source: <br />Not applicable. <br />Action: <br />Staff recommends a discussion in closed session to consider this real estate negotiation. <br />Letter of Intent <br />Attachments <br />