Agenda - Council Work Session - 10/11/2016

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BACKGROUND, Process From late 2013 through early 2016, the city completed the following steps: 1. 2013-2014: Review of potential business park locations. The city reviewed six potential business park locations; and the Hageman-Pearson site was ultimately selected. 2. 2014: Public engagement process related to the proposed change in land use. The proposed business park is currently zoned for a mix of residential and retail uses. In order to allow for a new business park, the zoning would need to be amended. 3. 2015-2016: Arterial infrastructure analysis. The city studied what the needs are for future arterial infrastructure (Bunker/ Puma). Additionally, the City discovered what said improvements would cost, how they could be paid for (i.e. alternatives), and when they need to be physically constructed (i.e. timing). 4. 2016: Economic development analysis. The city identified all forecasted costs and benefits related to the proposed future business park. 5. The next step in the process for the EDA/ City Council to make the business park project a reality was to adopt an official City policy/ position, memorandum of understanding with property owners (who will be paying for what, and when), process a zoning amendment, and begin a marketing campaign. o The EDA provided direction on this step in March of 2016 (to move ahead and execute). o The Council was set to complete this step in April of 2016 (to move ahead and execute). o Days before the Council meeting in April, the City received the update below. UPDATE: Pearson Properties is no longer able to commit to the new business park land use. The highest priority for Pearson Properties is to close a transaction on a substantial portion of their land in the next 12 months. Pearson Properties has a preference to pursue residential land uses on their property, as the market demand for residential is currently stronger than industrial (i.e. business park). Because Pearson Properties no longer supports the proposed zoning change, it would be challenging for the City to implement a business park on their private property (48 acres). The update from Pearson Properties reduces the size of the City's future business park by roughly 50% (from 93 acres to 45). It should be noted, the Pearson Properties parcel was particularly attractive from a business park perspective due to its setback from the adjacent BNSF rail (i.e. a substantial portion of that property is sufficiently setback). Pearson Properties has indicated they are okay with someone else purchasing their property for the purpose of implementing the City's vision of a business park, so long as a transaction can close within the next 12 months (by March of 2017). Page 2 of 6