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Economic Development Authority (EDA) <br />Meeting Date: 03/11/2021 <br />Submitted For: Sean Sullivan, Community Development <br />By: Sean Sullivan, Community Development <br />4. 1. <br />Title: <br />Consider Updates to City Pricing Strategy for City Owned Land (portions of meeting may be closed to the public) <br />Purpose/Background: <br />The purpose of this case is to discuss the pricing strategy of City owned land. Staff feels it is important to to update <br />land listing and pricing from time to time to ensure that the City has pricing that will attract development interest in <br />the city. Upon consultation with Brian Pankratz from CBRE, Staff would like to bring pricing strategy to the EDA <br />for discussion. <br />The City acquired land in the COR in 2009 for $6,764,429. To date the City has sold land in the COR and has <br />received $5,662,482 in gross land proceeds. In addition to land cost, there are also several other costs built into the <br />current pricing strategy: <br />1. [Primary] Repay internal loans from the Sewer and Water Fund that were used for a portion of the purchase <br />2. Park Improvements <br />3. Public Improvements such as roads and utilities <br />4. Parking Ramp - First Phase Construction <br />5. Northstar Commuter Rail - Ramsey Station <br />6. Administration Overhead and Marketing. <br />These expenses are eligible for reimbursement through land proceeds as well as Tax Increment Financing (TIF) <br />District # 14. It should be noted that park improvements are not eligible to be reimbursed through tax increment and <br />must be funded through land proceeds. The attached Policy for Land Proceeds Reimbursement provides additional <br />detail. <br />Notification: <br />N/A <br />Observations/Alternatives: <br />Upon conclusion of pricing strategy discussion the with the EDA, a recommendation should be made to the City <br />Council for consideration: <br />Alternatives include: <br />1) Recommend changes to City owned property pricing strategy. <br />2) Recommend no changes to City owned pricing strategy. <br />Funding Source: <br />This case is being handled under normal staff duties. <br />Recommendation: <br />Based on discussion <br />Action: <br />