Agenda - Economic Development Authority - 12/08/2016

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Cap Stone Homes has a purchase agreement in place with Pearson Properties for roughly 90 acres of land. Cap Stone wishes to complete a residential development. This is a major change in forecasted land use,in the previously completed Bolton&Menk Infrastructure study. Additionally,the city wishes to convert the former Legacy Christian Academy site (Hageman Holdings)to a business park(i.e.rezone). This is also a major change in forecasted land use, in the previously completed Bolton&Menk Infrastructure study. As a result of the two major changes outlined above, staff will recommend the Bolton&Menk Study be updated to ensure proper arterial infrastructure is being planned. If should be noted,if the city was not involved with the business park discussion, this would still be staffs recommendation(for Cap Stone to complete). The cost to refresh the study is estimated between$5,000415,000 and would be shared with Cap Stone Homes. The city has dollars available in TIF Account 91 to complete this study. Digging further into this subject,the discussion of cost-share and assessments for the proposed arterial infrastructure needs to be resolved. It should be noted,the former Legacy Christian Academy site was proposed to be assigned zero assessments in the original Bolton&Menk study. Moving forward, staff anticipates that to change. The City approved a development agreement with Hageman Holdings for a school site,with access only coming from Bunker Lake Boulevard(east side of Hageman site).No access along the remainder of Bunker and Puma was needed by Legacy.Now,that the former school site is being rezoned for a business park,access along all of Bunker and Puma will be needed. As a result, staff anticipates the assignment of new assessments on the west side of the former Legacy site (Hageman Holdings). Staff has discussed this situation with Hageman Holdings. Generally,Hageman Holdings is concerned. They are currently paying significant assessments for the existing infrastructure that was extended from Armstrong, down Bunker, and up Puma(to Alpine). They already completed a development agreement and plat(and development fees). Hageman Holdings is willing to support the city's business park initiative,they are a willing seller(at a competitive price),and they are willing to have the property rezoned. However,they are not willing to take on more assessments. If that was a requirement of them supporting the new business park, they would continue sitting on their land until a developer came forward,willing to take on additional assessments. With this in mind, the city should anticipate the need to pick up the cost of new assessments on Hageman Holdings property, as a result of the new business park. If the city is not comfortable with that general discussion, they should step back from this conversation now. In order to have a constructive conversation on assessments, staff believes the Bolton&Menk Study needs to be updated. This will help us better understand what financial obligation will come back to the city. At this point, staffs very preliminary estimation is $700K41.6M. The EDA has roughly$2.1M available (EDA Fund, Loan Fund, and County HRA). Funding Source: NA Recommendation: NA Action: (1)direct staff to rezone Lot 1 Block 1, and Outlot B,of Alpha Plat, to allow for a business park and quasi-public uses. NOTE: the Planning Commission will take the lead on drafting a zoning amendment(i.e. creation of a new zoning district). Once new district is in place, the rezoning will occur. The Ramsey EDA will act as applicant, and will be charged about$8,000. City will fund via EDA professional services account. This process will take about four months (i.e. done by May 2017). (2)direct staff to work with Cap Stone Homes to update the previously completed Bolton&Menk arterial infrastructure analysis. NOTE:staff will require a 50:50 cost share. This work shouldn't take more that 30-60 days (i.e. done by