Agenda - Council Work Session - 10/28/2014

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CC Work Session 2. 1. Meeting Date: 10/28/2014 Information Title: Consider Land Transaction Proposal from St. Katherine Drexel Purpose/Background: PURPOSE Consider a land transaction proposal from St. Katherine Drexel which would include swapping 33.18 acres of St. Katherine Drexel owned land located adjacent to Central Park for 10 acres of HRA owned land within The COR. BACKGROUND Request/Case: This case will require significant discussion related to a large number of policy questions (which are outlined in the policy discussion section below). Staff does not anticipate the Council will be in a position to provide final/clear direction at the conclusion of this discussion. However, the Council may be in a position to provide preliminary direction and input for St. Katherine direction and Staff to guide future discussion and negotiations. The purpose of this case is to discuss the high-level concept proposal and policy questions; it is not to negotiate finite details of an agreement. Proposed Use: St. Katherine Drexel would like to acquire 10 acres of land located within The COR to serve as the long-term/ permanent home of their church and auxiliary campus; they are looking to construct a 20,000 square foot facility with a 500 seat auditorium (similar to Northgate); they would like frontage along Sunwood Drive; they are both aware -of and accepting -of zoning standards within The COR. It is Staffs understanding/estimation, only 3-5 acres of the 10 acre proposed site would be utilized for the proposed St. Katherine Drexel Church. The remaining portions (5-7 acres) would remain unimproved for an unknown amount of time (15-100 years). The remaining portions of this site would be reserved for future expansions and other auxiliary uses. Additionally, it should be noted, the first phase of the proposed project (20,000 square foot facility) has an unknown construction timeline as well; as St. Katherine Drexel is currently in the process of fundraising. It is Staffs understanding, St. Katherine Drexel is NOT interested in acquiring a small sized lot. Attached to this case is an unofficial/conceptual reference map. HRA Owned Land: is located within the The COR and is commonly referred to as parcel/listing #48 (which is about 20 acres in size total). This parcel has an asking price of $4.00 per square foot --which, equates to a $1,742,400 total asking price (for 10 acres as desired by St. Katherine Drexel). This site is visioned/guided for retail and office type users. This site is located in two zoning districts: mostly in COR-2A and partially in COR-1. All utilities and infrastructure required for development are located at the property line today. St. Katherine Drexel Owned Land: is located directly east of Central Park (a City owned community park). This 33.18 acre site is surrounded by single family residential developments on three sides. This site is zoned R-1 MUSA. County records show this site was purchased for $740,200 in 2004; and shows an estimated market value in 2015 of $205,000. CBRE typically lists R1-MUSA residential properties at a $40,000 per acre. It is unofficially estimated 4.5 acres of this site is unusable wetlands. Therefore, the total usable space is estimated near 28.68 acres of land. Generically utilizing CBRE pricing from existing City listings for R1-MUSA residential properties, the asking price for this parcel would be $1,147,200. This site does not include sewer and water services located at the property line (preliminarily estimated $150,000-$300,000 cost). POLICY DISCUSSION