6.8. EDSR 01-20-2015 - Laserfiche WebLink

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City of Elk River Request for Action To Item Number Economic Development Authori 6.2 Agenda Section Meeting Date Prepared by General Business December 15, 2014 Jeremy Barnhart, Deputy Director, CODD Item Description Reviewed by Letter of Interest: GATR Reviewed by Action Requested Respond to the letter of interest received for Lots 1 and 2, Natures Edge Business Center II. Background /Discussion The city has received a letter of interest from GATR to purchase two lots in Natures Edge Business Park Second Addition. GATR is a full- service heavy duty and medium duty truck dealer with locations in Cedar Rapids and Des Moines, Iowa and Sauk Rapids, Minnesota. Based on the information provided to date, the use is retail and service commercial. The two lots north of 168"' would be combined, creating one 14.8 acre parcel for the construction of a truck sales and service center. GATR has suggested a purchase price of $2 per square foot (sf for the buildable area only (excluding the 4.95 acres in easement and setback areas), $858,132. The sale of the property for a commercial use would require a rezoning of the eastern parcel. The two parcels have been appraised totaling $1,173,000. The full appraisal document is included in dropbox. Please note that the appraisal is not public information. The EDA's, 2013 -16 Strategic Plan, has a stated goal "...to increase the city's light industrial tax base, commercial tax base, and employment base." As available commercial and industrial land dwindles, the sale of these parcels should be carefully considered. Availabili ty The attached Vacant Commercial and Industrial Properties Map shows the 38 vacant parcels within the city zoned as Business Park (BP), Highway Business (C -3), and Industrial (I -1, I -2, or I -3). Typically, industrial businesses looking to expand operations seek parcels 10 acres in size or more. Of the 38 parcels, four are 10 acres or more. The city owns four adjacent parcels that could be combined into two 10+ acre parcels including the subject parcel. Highest and best use A formal site plan has not been developed; previous conversations have suggested a 36- 45,000 SF building on the 14 -acre parcel. It is not known how many people would be employed by the business. Because a large portion of car sales and repair lots are devoted to display, the taxable value per acre is lower than more densely used industrial parcels. The EDA should expect that the taxable value per acre, if sold for truck repair/ sales to be about a third of what an industrial parcel would net. P a w E R E U 6 Y NaA f RE]