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4. WHY SHOULDN'T THE DEVELOPERS PAY FOR EVERYTHING? <br />RE THE BUSINESS PARK AREA <br />Market rate asking prices for raw, shovel -ready, industrial land in the Ramsey area is $2.00- <br />$3.50 per square foot. <br />Currently (i.e. before adding internal public roadway costs), Hageman Holdings is listing <br />land for $2.25-$2.75 per square foot. PSD's goal is not to sell land —they will want to act as <br />developer/ owner for most projects. However, if a large enough user comes forward, they <br />will be asking for 2.75-3.50 per square foot (due to the investments they are making in their <br />property). <br />Elk River, Ramsey's biggest economic development competitor, has been listing industrial land <br />for $2.50 psf, before use of economic development incentives. In some cases, via use of <br />economic development incentives, said $2.50 psf priced land has been written down to <br />significantly lower prices (less than $1.00 psf), or in some cases, even down to zero. <br />In order to stay competitive, based on asking prices, Ramsey should stay below $3.00 psf, and <br />ideally be closer to $2.00 psf, for asking prices. Additionally, the City should be prepared to use <br />economic development incentives. <br />Lastly, it should be noted, asking prices are different than what price a deal can be done —likely, <br />Hageman would be willing to sell at a price closer to $2.00 psf (depending on the project/ <br />negotiation), and PSD would be willing to sell closer to $2.50 psf. <br />Page 5 of 6 <br />