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2 <br />their business parks. The City of Elk River recognizes this opportunity and is in the planning <br />stages for a major expansion of the Nature's Edge Business Park located in the southern portion <br />of the city on U.S. Highway 10. It is projected that additional property of up to 120 acres will <br />become available in the next 12 to 24 months. A community that was not included in the study <br />is the City of Brooklyn Park. This community has had significant success with attracting new <br />industrial development as a result of the pending completion of Highway 610 and recent <br />improvements made to U.S. Highway 169. It is recommended that additional research be <br />completed to determine the extent of available Business Park property in Brooklyn Park and <br />how it might impact the market for any new Business Park along the Highway 10 corridor. <br />• The market for business parks along the Highway 10 corridor appears to differ from markets <br />located on or near the Interstate Transportation System. Business Parks located in Lakeville, <br />Shakopee, Rogers, Otsego and Blaine have proven to be attractive to logistics and transportation <br />sensitive industrial development. All of these locations are guided for large distribution centers. <br />This trend is likely to continue into the future. Large developers who are seeking long-term <br />lease investment opportunities provided by the distribution industry have sponsored business <br />parks in these communities. After studying the Highway 10 corridor it is clear that the business <br />park market has been attractive to owner occupied real estate. Buyers in this market tend to be <br />more workforce and project cost sensitive and less transportation sensitive. We believe that <br />this is a plus for the City of Ramsey as these types of industry for the most part create higher <br />value added employment and investment opportunities. <br />• The north metro market currently supports land pricing in the range of $2.50 to $3.50 per <br />square foot. Prices tend to decline with distance from the Interstate Transportation System. The <br />Highway 10 corridor may see land price increases take effect as site availability for expanding <br />businesses becomes an issue. It is not uncommon for communities to provide financial <br />incentives to assist with underwriting land acquisition costs and other expenses. This is <br />primarily done through local initiatives such as TIF or Tax Abatement and through the use of <br />state sponsored programs. <br />• When considering the development of a business park it is important to have an understanding <br />of the existing building market for industrial development. While the vacancy rate for existing <br />buildings significantly climbed during the "Great Recession" most of the existing building market <br />has been absorbed particularly in the Highway 10 corridor. This adds impetus to the successful <br />development of a new business park in Ramsey. <br />