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Properties with a different private sector investor.
<br /> UPDATE:Staff contacted 18 developers. Four people responded with general interest initially(PSD,
<br /> Ryan, RJM, and Mortenson). Only PSD followed up with the city, and had follow up discussions/
<br /> meetings/requests for more information. Ultimately, PSD indicated they are not interested in pursuing
<br /> purchase of the business park at this time.PSD is working on several other projects at this time that
<br /> are consuming their resources.
<br /> It is staff's perspective, that the larger regional developers didn't have interest in this site due to the
<br /> location of Ramsey, and the condition of US Highway 10. RE land, they feel that Brooklyn Park,
<br /> Blaine, and Rogers are better locations for industrial parks. They were not turned off by land price, the
<br /> city itself, access, development fees, etc. etc.Developers were interested in knowing if the City was
<br /> willing to provide incentives to end-users.
<br /> (C)Wait to see what happens with PACT Charter School—if PACT ended up buying a portion of the former
<br /> Legacy Christian Academy property owned by Hageman Holdings.PACT Charter only needs a portion of
<br /> the former Legacy Christian Academy site(about half). If the PACT Charter purchase took place,the City
<br /> could pick up about 35-50 acres of the remaining land for a business park.
<br /> UPDATE:PACT Charter School has indicated they have made a site selection for their new school
<br /> campus that being the Legacy Christian Academy site. For a number of reasons, they are unable to
<br /> make that decision final, and enter into a formal purchase agreement, until at least fall of 2017.Likely,
<br /> closing would occur sometime in 2018. This is the best-case scenario for PACT from a timing
<br /> perspective.As a result, counting on this action to occur is speculative at this point.
<br /> ***NEW UPDATE***, 10/31/2016:Hageman Holdings has indicated they currently don't have a
<br /> specific timeline RE their school site. They are willing to wait for their vision to come to fruition.
<br /> However, Hageman Holdings IS willing to discuss rezoning their school site NOW for a business park
<br /> (about 62 acres). Then, allow the market to dictate how their land is developed. If a school comes first,
<br /> and needs all or a portion of the Hageman Holdings School site, so be it.If industrial development
<br /> comes first, that is acceptable as well. Hagemen Holdings indicated they would be willing to enter into
<br /> an agreement with the City accordingly. Staff believes this is a promising alternative that should be
<br /> further investigated.
<br /> (D)If developers are not interested, and PACT Charter doesn't get their deal done,staff should bring back a
<br /> future discussion about potentially considering a City purchase. Originally,this option was attractive because
<br /> it was believed the Pearson Property may be available for a very low price (i.e. $700-800K,or$15-18K per
<br /> acre). Based on this original pricing,it could be argued,the City would have be in a strong position to invest
<br /> in the Pearson Business Park property now,and would be able to wait for the property to be developed.
<br /> UPDATE: Considering the City would now need to purchase the Pearson at$1,465,500 or$30,000 per
<br /> acre,Staff is concerned. The upfront cost-benefit of a citypurchase of the Pearson property is
<br /> diminishing. In order to get arterial infrastructure completed, the City estimated a$31,000 cost per
<br /> acre (about$.0 75 psf or$1,393,000 for the Pearson 48 acres).
<br /> Therefore, if the City were to purchase the Person property now(48 acres), and install arterial
<br /> infrastructure, the City would be looking at an investment of about$2,858,000, $63,600 per acre, or
<br /> $1.46 psf. That price does not include holding costs, time-value of money, internal site infrastructure,
<br /> and addressing an public perception items related to the City purchasing land, etc. Staff believes the
<br /> asking price for industrial land is roughly$2.00-$2.50 psf. However, it is very common for the City to
<br /> sell property at the low end of the market, or even with a subsidy(i.e. $1.00-$1.75 psi.
<br /> The EDA has about$2.IM available (between the County EDA fund, City EDA fund, and City EDA
<br /> RLF). If the City were to purchase the Pearson Property, and install arterial infrastructure, the City
<br /> would likely fully deplete all EDA dollars. In that scenario, the City would still come up short on
<br /> funding, and would also need to consider obtaining dollars from other sources. This is important to
<br /> note, because this funding strategy is a departure from the original discussion/vision which assumed
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