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EHLERS <br /> • & \ SSOCI - ES INC MEMORANDUM <br /> TO: City of Elk River-EDA <br /> DATE: March 14, 2005 <br /> FROM: Sid Inman, Ehlers and Associates Inc <br /> RE: Proposals for EDA Brown Business Park Land Development <br /> The purpose of the Request for Proposals process is to assess the market interest, financial feasibility, and <br /> concept compatibility with the EDA's original development concept. The EDA received two proposals <br /> for the development of the EDA owned Brown property. Attached is a side-by-side comparison of the two <br /> proposals. <br /> One of the first questions we tried to determine is"why only two?" In checking with developers they <br /> gave a number of reasons why they did not submit a proposal. Most said they were too busy and had <br /> other larger projects. Some stated that they were nervous of the market. We checked with three other <br /> cities that had just finished an RFP process and they all had similar results. <br /> The two developers that did submit are experienced in park development and have good reputations. In <br /> reviewing the two RFP's it may me helpful for the EDA to review the objectives and goals it had in <br /> developing the park. <br /> OBJECTIVE: To attract light industrial users to Elk River. <br /> GOALS: <br /> 1. To increase the city's future property tax base thus reducing future increases in property <br /> taxes on current residents. <br /> 2. To create quality job opportunities for current and future residents. <br /> 3. To create an increased customers base for retail business. <br /> In reviewing these proposals the EDA has a number of options to consider: <br /> 1. The EDA chooses to interview one or both developers. <br /> 2. The EDA selects one developer and directs staff to begin the negotiation of a master <br /> development agreement. <br /> 3. Reject all proposals. <br /> The last option was included because after the analysis of risk and reward that the EDA may <br /> determine that it would be better off to develop the park itself under a concept with a determined <br /> criteria and assistance amount for any developer to build. <br /> I will be at the EDA meeting to discuss this further. <br />