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ALTERNATIVE B
<br /> The City DOES NOT support Stone Brook's originally proposed location (Outlot B,Site#1),however the city IS
<br /> interested in helping with funding the financial gap on other sites via a"formal business subsidy."
<br /> Stone Brook is asking the City to address their questions/and issues on other sites (mainly pricing). Likely,
<br /> the gap in costs, from Site #1 to other sites (i.e. 42 and 44),would range from $335,000-$531,000. It should
<br /> be noted, Stone Brook has made their opinion clear to staff,that even if they are able to get another site for
<br /> like cost,they would still strongly prefer to be located on Site #1. They will only locate on another site if the
<br /> City is telling them no to Site #1.
<br /> With this mind, Stone Brook needs 0.9 - 1.0 acre of land. If Site 41 was purchased at$3 per square foot(psf),
<br /> it would cost$117,612 to $130,680. If Stone Brook paid 20%of arterial infrastructure costs (Polite,
<br /> $284,880) it would cost them about$56,976. The combined costs of the Site 41 and a 20%portion of Yolite
<br /> would be roughly $174.588 for Stone Brook, as proposed.
<br /> The McDonald's site (Site 42) and the PSD site (Site 44) are the two other locations Stone Brook would
<br /> consider. They range in cost from $522,720 to $705,672 (asking prices). Therefore, a gap of roughly
<br /> $335,000 to $531,000 exists. Stone Brook is requesting, for the City to discount that gap, in order to make
<br /> those sites "like costs." In summary,get prices on other sites down to $3-$3.50 psf. Below are some options to
<br /> consider,to fill the funding gap.
<br /> (1) The City has the ability write down the cost of land(i.e. selling the land for less market rates). For
<br /> example,the sites adjacent to McDonalds could be sold at$3-4 psf rather than $12 psf. Staff believes
<br /> this level of discount goes beyond a standard land price negotiation process, and will trigger the need
<br /> to comply with the City's "formal business subsidy" policy. Staff is concerned this project would
<br /> require an "exception"to our business subsidy policy due an insufficient number of jobs being created
<br /> at a high enough wage level. Staff is also generally uncomfortable with the general level of subsidy that
<br /> would be required in this scenario (doesn't compare well to past projects, in which we have provided a
<br /> formal business subsidy).
<br /> (2) The City has the ability to subsidize the project via Tax Increment Financing (TIF)via TIF District
<br /> 14. This project is anticipated to collect$315,000 of PV TIF over the next 20 years (or$500,000 FV).
<br /> Although we do have the "ability" to cover the gap for this project via TIF, staff is also cognizant of the
<br /> City's many other financial obligations for The COR--in which TIF District 14 would be an ideal
<br /> funding source. This option would also trigger the need to comply with the City's "formal business
<br /> subsidy" policy.
<br /> The EDA and Planning Commission were generally opposed to this alternative. Please see attached Site #1
<br /> log for details.
<br /> ALTERNATIVE C
<br /> TheOty DOES NOT support Stone Brook's originally proposed location (Outlot B,Site #1), and the City ISNOT
<br /> interested in helping out with the funding financial gap on other sites via a "formal business subsidy"
<br /> however,the City remains interested in selling city-owned land to Stone Brook
<br /> Stone Brook may need to reconsider their approach and expectations for this project altogether(land
<br /> accusation costs,potentially timing, location, city willingness to formally subsidize, etc.). If this alternative is
<br /> selected, staff would recommend the EDA provide Stone Brook with as much feedback as possible, so they
<br /> can understand and consider their options moving forward. Examples below:
<br /> (1) The sites adjacent to McDonalds are available (Site 42), and the City believes these sites are a good
<br /> fit for this project,the City encourages Stone Brook to make an offer on these sites. The City would be
<br /> able to arrive at a non "formal business subsidy" negotiated price (i.e.the City still could agree on a
<br /> price less than the asking price). Please see Site 42 log for details/comments from Stone Brook/Staff.
<br /> (2) The parcel sites adjacent to Casey's are available (Site 43),the City thinks these sites are a good fit
<br /> for the project,the City encourages Stone Brook to make an offer on these sites. The City would be
<br /> able to arrive at a non "formal business subsidy" negotiated price (i.e.the City still could agree on a
<br /> price less than the asking price). Staff would note,these sites result in many land use questions/
<br /> concerns/other project costs. Please see Site 43 log for details/comments from Stone Brook/Staff.
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