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what metro competitors can achieve (a factor of about 2.3). This benefit is somewhat offset by a significantly higher <br />tax rate in Elk River. <br />RAMSEY INVENTORY—when the discussion of a new business park commenced in 2013, the inventory of <br />available* industrial land in Ramsey was identified to be less than five acres (*all utilities nearby, willing seller, and <br />proper zoning). Over past the nine months, nearly 52 acres of industrial land has come to the market. <br />About half of this 52 acre inventory is considered by staff as ready -to -go today, and very marketable. About half of <br />this inventory will require moderate due -diligence and addressing of various development impediments/ questions <br />(clean-up of existing improvements, short extension of public infrastructure, etc.). <br />Business Park Benefits <br />One of the major benefits a community receives from land development is an increase to property tax revenues. <br />In order to project future property tax revenues, a forecast of future land development must be established. The <br />forecasting below was developed by staff with assistance from Ehlers & Associates, CBRE, and ACG Consulting. <br />DEVELOPMENT FORCASTING— <br />Entire Developable Area <br />Year Built <br />2017 <br />2018 <br />2019 <br />2020 <br />Industrial Square <br />Footage <br />45,000 <br />45,000 <br />45,000 <br />60,000 <br />2021 <br />2022 <br />2023 <br />2024 <br />2025 <br />2026 <br />2027 <br />2028 <br />2029 <br />60,000 <br />65,000 <br />65,000 <br />65,000 <br />65,000 <br />65,000 <br />65,000 <br />65,000 <br />65,000 <br />Retail Square <br />Footage <br />0 <br />0 <br />30,000 <br />0 <br />0 <br />Single Family <br />Residential <br />0 <br />30 <br />30 <br />30 <br />30 <br />30,000 <br />7 <br />0 <br />0 <br />0 <br />0 <br />30,000 <br />0 <br />0 <br />0 <br />0 <br />0 <br />20,000 <br />0 <br />0 <br />2030 <br />80,000 <br />0 <br />2031 <br />80,000 <br />0 <br />0 <br />0 <br />0 <br />2032 80,000 0 0 <br />TOTALS 1,015,000 110,000_ 12_7 <br />Assumes school campus remains tax exempt (not accounted for in this scenario). Based on 25% <br />industrial building coverage, 19% retail building coverage, and about 2 lots per gross acre for single <br />family residential. Max building coverage for industrial is 45% based on City zoning. Typically, in <br />mature business parks, the market delivers building coverages ranging between 25%-35%. <br />Once development forecasting was established, Ehlers & Associates was able to develop property tax projections. <br />The tables below provide a brief summary of property tax projections. Please see Economic Development Analysis <br />FINDINGS REPORT and APPENDICES for additional property tax projections scenarios. <br />Page 5 of 12 <br />