6.8. EDSR 01-20-2015 - Laserfiche WebLink

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commercial lot in Elk River. Staff suggests $2.47 per usable square foot. The sale of the property for a commercial use would require a rezoning of the eastern parcel. Project information. The proposed applicant reported that the project would include $11.8 million in improvements. Based on the information provided by the proposed applicant, the value of the land and buildings would be $6.444 million. Future additions, equipment, parts inventory, working capital, and other soft costs not taxable bring the total to 12.444 million. For comparative purposes, the Home Depot is 122,000 sq. ft. on 11.61 acres. (GATR 42- 46,000 sgft, 15.725 acres) Both properties are valued at 4.5 million. The taxable value for this building is $37 a foot. Home depot uses 24% of the property for the building, GATR proposes to use 7% for the building. Taxable value. Information provided by the proposed applicant shows an assumed taxable value of $4.597 million, including a value of $66.25 per foot. According to the County Assessor, the $66.25 per foot building valuation is a full retail finish, and may be high for the body shop and service areas of the building. A minimum assessment agreement could be signed to maintain the necessary taxable value. This will impact the taxes payable to the school district and the state. Job Growth. Based on the information provided, proposed job growth on opening day (expected end of 2015) are 38 jobs, and after two years, 60 jobs. Around 25% of these jobs are commission based, and 15% are less than the reporting requirement. Average wage of all jobs is $27 per hour. Business Subsidy support. The EDA may consider supporting an application for business subsidy. The proposed applicant suggested Tax Abatement and Microloan funding. Support for an application only encourages the applicant to apply, it does not stipulate approval. Per DEED rules, Retail establishments are not eligible for the Jobs Incentive Microloan however they may be eligible for the Energy Efficiency Microloan. Financial Impact N/A Attachments • Letter of intent • GATR memo dated January 12, 2015 and supporting documents: ■ Job information ■ Site layout ■ Concept elevation ■ Car dealership comparison ■ EDA packet dated December 15, 2014 N: \Departments \Community Development \Economic Development \EDA \Administrative \Agenda \EDA Agenda Packets \2015 \1 -20- 2015 \6.8 sr Consider sale of lots 1 and 2, Block 1 NEBCII.docx