Agenda - Economic Development Authority - 02/15/2000

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DRAFT MEMORANDUM DATE: February 9, 2000 TO: Jim Norman, City Administrator FROM: Kathie Doty, Richardson, Richter & Associates, Inc Nick Skarich, Springsted, Inc SUBJECT: Feasibility Analysis - Makens and Sauter Redevelopment Project INTRODUCTION AND SUMMARY CONCLUSION At the request of the City, Richardson, Richter & Associates (RRA) has led a team comprised of consultants from Springsted, Braun Intertec Corporation, and other technical advisors to examine the feasibility of redeveloping two properties known respectively as the Makens and Sauter properties. These properties are both located to the north of Highway 10 and west of Sunfish Lake Boulevard, Northwest. (Attachment 1: Map A) In 1996 the City, along with Anoka Electric Cooperative (AEC), discussed the purchase of the Makens property. City files show discussions of the purchase through early 1997, however negotiations were terminated for a number of reasons. Interest in this property has continued to grow and it is thought that significant potential exists to redevelop the property as an industrial park. The Sauter property, a smaller piece of land to the west of Makens, is also presently available for purchase by the City and is another piece of a broader plan to redevelop key industrial areas to the north of Highway 10. The Makens property is approximately 56 acres and the Sauter property is approximately 10 acres. As a result of the feasibility analysis the consultant team is recommending that the City proceed to purchase and redevelop the Makens and Sauter properties by taking the following steps. Negotiate with present owners to acquire these properties. The remainder of this memo outlines the results of the feasibility study which led to the recommendations to proceed with redevelopment.