Agenda - Economic Development Authority - 01/07/2016

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City of Ramsey Report Summary Shakopee A hypothetical case was used to search for a 5 to 10 -acre site for light rnanufacturing. The City of Shakopee has seen significant activity in the past 3 years. Large projects that include Amazon.com and Shutterfly have consumed a lot of the available land in the Shakopee industrial park. Due to heavy activity, there are only 5 sites remaining all under private ownership. • .Site #1 — 5.68 acres fully serviced with no onsite ponding required $4.445/sf Site #2 —46.12 acres, unplatted but utilities to the site—The site is developer owned and advertised as build -to -suit. However, the developer will sell land for $3.40/sf. • Site #3 — 23.11 acres, unplatted and but served by utilities. The site is developer owned and advertised as build -Ad -nit. Therefore, no land prices are quoted. • Site #4 —11 acres platted as five Tots and served by utilities. Advertised by developer as build -to -suit. Therefore, no land prices are quoted. • Site #5 — 8.6 acres owned by a private party advertised for sale. Estimated asking price is $2.30/sf. The site is served by utilities. The price variance from other sites may be due to site conditions and how much of the site is suitable for COfstructi on. Given the activity and availability of land for sale, the City of Shakopee is no longer offering incentives. All privately owned sites are listed with major brokerage firms. However, the City and the Scott County "First Stop Shop" work closely with real estate companies in marketing the sites. The major access is from Hwy 169. The state recently completed improvements to Highway 13 in Savage with removal of stop lights, the construction of grade separations and additional lanes approximately 5 miles to the east of Shakopee which accounts in Targe part to the significant expansion in the Shakopee Industrial Park, Only 8.6 acres remain for sale in Savage and the site is owned by a private land owner. The obstacles to the to the Shakopee Savage location would be price. With 90% of the available property in the hands of private developers, new businesses are subject to developer requirements that include design, price as well as build -to -suit or lease.