Agenda - Economic Development Authority - 09/26/2000 - Joint with CC

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9-18-2000 Darkenwald Development Background: John Darkenwald is a developer based out of Elk River. He current owns 18.39 acres on the Elk River/Ramsey border. He is interested in Developing his property as well .as acquiring an additional 11.11 acres directly south of his parcel and developing it too. Currently this property_ is not within Development District No. 1 Assumptions: John Darkenwald will acquire the remaining 11.11 acres and develop the entire 29.5-acre parcel. The development would total 600,000 SQ./FT. at a rate of $50 per SQ./FT. The buildings will be industrial/office warehouse buildings. The Estimated Market Value of the project would total $30,000,000. Sewer and Water Revenue Estimates: Based upon usage of 1000 gallons per day per acre the Sanitary Sewer charge per year would be $27,000 per year. The Water charge based on the same usage rates would be $14,760. revenue Estimates: Based upon the Tax Capacity generated by the new buildings the city would receive an estimated $267,051 per year in revenues upon decertification of the TIF District. TIF revenue Estimates: Based upon the Tax Capacity generated by the proposed development of Mr. Darkenwald, the City woUld receive $673,198 per year in TIF dollars. Developmen! District No. 1 would have to be modified to include the parcels that Mr. Darkenwald plans to develop. Base Values: Current Property Information: Pin Number R19-32-25-22-0001 R19-32-25-23-0008 R19-32-25-23-0009 R19-32-25-23-0011 R19-31-25-23-0020 R19-32-25-23-0021 R19-32-25-23-0022 R19-32-25-23-0023 9-32-25-23-0024 9-32-25-23-0024 (Ramsey) 2001 Market Value 2001 Tax Capacity $1,031,200 25954 $65,700 1577 $63,100 1514 $115,600 2774 $34,7OO 833 $301,200 8741 $108,900 1272 $249,400 6980 $45,5OO 1092 $43,000 1032 $4,100 139