Agenda - Economic Development Authority - 01/12/2017

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owners,that they are able to deliver top-notch services in a high-class facility. They will not open a facility in Ramsey if they cannot achieve that goal. Stone Brook believes their pricing structure is very sensitive/risky in Ramsey(unproven market for this product). They need to do everything they can to keep user costs as low as possible in Ramsey(hence their emphasis on the land price—something they have some control over). o Price negotiation (1-acre) ■ City listing price is$5 psf($217,800) ■ Stone Brook first offer$0 psf($0) ■ Stone Brook second offer$2.5 psf($108,900) ■ EDA counter offer$3.5 psf($152,460) ■ Stone Brook third offer$3 psf($130,680)<<current offer>> o Stone Brook believes other properties are too expensive in The COR,and restrict their ability to effectively operate their business(the higher the land cost,the more debt service,the lower the operating cash flow,the higher the user fees needed). Below is a snap shot. ■ McDonald's Pads • 1.23 acres,$12.00 psf,$642,945 • 1.35 acres,$12.00 psf,$705,672 *see site#2 for details ■ PSD LLC,$12.00 psf, 1 acre,$522,720* *see site#4 for details D. General comment from Stone Brook: o Stone Brook is open to purchasing other sites, if the City is willing to sell at"like-cost." For example,$150K-$200K for the sites near McDonald's(NOTE:that would be a roughly 350-550K reduction in land price). However,even if costs were the same,Stone Brook still prefers/ requests to be on this specific site (site#1), in the center of The COR. o With the above in mind,Stone Brook is generally concerned other site options will be significantly more expensive, and in some cases,open up even more policy discussions (re infrastructure and land use)—which will delay their project they hope to begin in early summer 2017. E. Yolite Street issue, Stone Brook open to what works best for the City. o Stone Brook doesn't desire the Yolite Street public road connection. However,they are open to the connection, if the city requires(at a 60/40 split,the 40 to be shared). They are more concerned about moving the project forward soon. Stone Brook is also open to the stub road design/private road, if the city desires. o Regardless if Yolite is constructed,or becomes a private road stub,Stone Brook wants to be located west of the Yolite Street intersection (due to lot width requirements for their facility and turn around/drop off area). East of the intersection physically won't work—it is too narrow. Page 4 of 16