Agenda - Planning Commission - 09/01/2016

Home

Regular Planning Commission 5.3. Meeting Date: 09/01/2016 Submitted For: Patrick Brama,Administrative Services By: Patrick Brama,Administrative Services Information Title: Platinum Properties Concept Development Proposal Purpose/Background: PURPOSE (Planning Commission) The purpose of this case is to provide the Planning Commission an opportunity to review the attach concept development proposal(please see Platinum MEMO).It is standard practice--when the City reviews a purchase agreement for the sale of city owned land--to allow the Planning Commission an opportunity to provide initial feedback on the site concept. [NOTE: this case was copied from the EDA Agenda] PURPOSE (EDA/Council) Consider the attached purchase agreement(purchase offer of$500,000) from Platinum Properties Group, INC. for a 9.3-acre City owned property located just south of Vision Ease Lens for a 123,840 square foot industrial project. BACKGROUND Site Information This site is zoned E-2 Employment District; which generally allows for"business park"type users. This site is located in one of the City of Ramsey's established business parks,with access to 143rd Ave and Jaspar Street. The City of Ramsey purchased the "Bury&Carlson" site in 2008 for$1.75M,or$1.90 psf. The City purchased the roughly 20 acre Bury& Carlson site for the purpose of locating a new City Public Works Campus. In late 2015,the City completed a Space Needs Analysis for a new Public Works Campus. As a result of that exercise, it was identified,a 9.3 acre portion of land was unneeded for the Public Works Campus,on the north side of the former Bury&Carlson site. Per informal Council direction, staff was asked to market this parcel for economic development purposes. The City purchased this site with the following funding sources: 1. TIF 2 $134K, Water Fund$292K 2. Sewer Fund$292K 3. Stormwater Fund$292K 4.Water Utility Fund)$719K. The InterFund loan has a current balance of$513K, and is being paid back by the General Fund/General Levy. If this transaction moves forward, staff will recommend the InterFund loan be paid back first, as much as possible, with the benefit of removing a debt service burden from the General Levy. Property Listing The City has not officially listed this property with a broker. However, staff was informally provided direction to begin marketing this property for sale in late 2015. Because this property is not officially listed, the City has not established an official asking price; or subsequent formal deal range. Traditionally,City owned parcels with similar zoning, and the City's future business park(privately owned), carry asking prices ranging from$1.75 per square foot on the low end up to$2.50 per square foot on the high end. For this this transaction in particular(9.3 acres),the math works out to $708,939 to$1,012,770.