Agenda - Economic Development Authority - 06/02/2016

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DRAFT DOCUMENT,INTENDED FOR CONCEPTUAL CONVERSATIONS ONLY,CHANGES WILL OCCUR Future Business Park UPDATE:04/29/2016 ALTERNATIVES (1) DO NOTHING The City could choose to do nothing,take the update N from Person Properties as-is,and amend the proposed business park plan accordingly. In other words, reducethe size of the business park from 93 acres to about 45. - Staff would be concerned with this approach for two reasons. 2 a (A) Long term,this solution will not provide a sufficient stock of Industrial land to meet market demand in Ramsey. Staff estimates the first 45 Pearson acres(Hageman)would be consumed in 5-15 years. Upon build out of the first 45 acres,the City would _ be in a position of speculation/uncertainty/risk, if _ -- they were then to consider securing additional 10 - a -UuNK�x AKF-a,Vf a� business park land. (B)One of the only concerns raised during review of _ , the proposed business park was the BNSF rail line, and how it could affect manufactures. It was concluded,it would be prudent for the business park to include a large share of land outside of the 300'setback from the BNSF rail line. The Pearson Properties parcel helped mitigate this concern. If the Pearson Properties parcel is lost,staff would have a concern regarding the viability of the business park as a whole. (2) PURCHASE OF PEARSON PROPERTIES Pearson Properties is willing,and motivated,to sell their property. If there is a serious buyer, interested in � using the property for a business park, Pearson Properties would support that effort(rather pursing residential). 40 Potential buyers would likely include: investors, developers,or the City of Ramsey. Purchasing this K. property would be a long term investment,as sales would likely occur over 5-20 years. This alternative would preserve the City's vision for a 93 acre business park(roughly next 20 years of demand). This alternative includes two options. { � o- c _ NKEH.I-AK-i.B,L! (A)City support/facilitate an effort to attract Hageman private investors to purchase the Pearson Properties parcels. The benefit of this option is the property remains taxable,and the City avoids kh .. _ taking the position of owning land and expending E9 ' dollars on a purchase. Staff believes there is a 'market'for this option. The drawback to this option is each buyer comes with a different set of desires, expectations,financial resources,timelines,and willingness to work with the City. Considerations for each buyer will be slightly different. A good example of the risk outlined here is the situation at-hand (this update/this document).