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CBRE <br />COMMERCIAL REAL ESTATE SERVICES <br />MEMO <br />Date: October 1, 2014 <br />Pat Brama-City of Ramsey Community <br />To: Development Director <br />From: Brian Pankratz and Richard Palmiter, CBRE <br />Subject: FAR and Rezoning Within COR <br />cc: <br />Patrick <br />In reviewing the COR parcels identified as 47, 48, and 49 by City of Ramsey we have <br />evaluated the potential changes to the FAR and rezoning and how that may affect pricing. <br />We feel that by changing the FAR from.75 to .65 there will not be a change in value. The <br />value of the property is based on market demand and the current demand will not support <br />structured parking without subsidy. We believe the original offer price from PSD deal was <br />based upon the fact that the developer believed he could build the proposed apartments <br />without a parking structure. <br />It is typical for a buyer to have their entitlements in place before closing on undeveloped <br />land. The entitlements would typically include preliminary and/or final plat, development <br />agreement terms agreed upon, zoning and/or land use changes approved, building <br />design/concept approval, and any variances negotiated. <br />Based on the new proposed FAR to .65 we believe that the PSD deal should stay at the <br />existing deal structure as has been previously noted, the current market rental rates do not <br />support building structured parking without subsidy. In addition the PSD offer is also <br />putting in a road, putting the property back onto the tax rolls, bringing additional <br />residences to the COR to support existing and future retail, and create activity to show <br />there is demand for future development. We feel the PSD development will help make the <br />other COR parcels attractive and create interest. <br />