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Economic Development Authority(EDA) 4. 1. Meeting Date: 11/03/2016 Submitted For: Patrick Brama,Administrative Services By: Patrick Brama,Administrative Services Title: Future Business Park: Right of First Refusal Purpose/Background: PURPOSE The purpose of this case is to consider acting on the attached'Right of First Refusal to Purchase Real Estate."Per the attached agreement,the City has the ability to purchase roughly 48 acres of land owned by Pearson Properties, by November 16, 2016, for$1 more than offered by a third party(Capstone Homes offer: $1,465,500, $30,000 per acre, October 1,2106). BACKGROUND, FUTURE BUSINESS PARK The city is considering a roughly 93-acre business park located off Bunker Lake Boulevard and Puma Street. The business park is comprised of land owned by two private parties: Hageman Holdings(about 45 acres)and Pearson Properties(about 48 acres). The business park is projected to develop over the course of 16-20 years. For a number of reasons, development is anticipated to start in the cast(Hageman) and push west(Pearson)over time. As originally visioned,this business park was to be a public-private partnership with the two major property owners (Hageman Holdings and Pearson Properties). The private property owners would act as land holding companies. The city was to aid the property owners by participating in funding the cost of arterial infrastructure,aid in marketing efforts, and help close deals(and consider providing incentives such as TIF if needed). BACKGROUND, PROCESS From late 2013 through early 2016,the city completed the following steps: (Step#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. (Step#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. (Step#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). (Step#4)2016: Economic development analysis. The city identified all forecasted costs and benefits related to the proposed future business park. (Ste p#5)Implement Plan. 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. The EDA provided direction on this step in March of 2016(to move ahead and execute). The Council was set to complete this step in April of 2016(to move ahead and execute). Days before the Council meeting in April,the City received the update below.