5.0. EDSR 05-09-2005 - Laserfiche WebLink

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Consider Development of Twin Lakes Business Park May 9,2005 EDA Meeting Page 2 of 3 • Analysis Developer Proposals Earlier this year Elders&Associates recommended that the EDA utilize a request-for- proposals (RFP) process that insures that the EDA would receive the highest price for the property,development to the highest and best uses and allow the EDA to control the process. The RFP process was also a way to market the site immediately to developers and brokers. Staff and Ehlers have met with the two developers for further discussion on their proposals. The developers were encouraged to submit additional information to clarify their development concept for the park. Amcon Construction submitted the attached proposal information clarifying their interest in acquiring the EDA property and a commitment to construct a 30,000sf facility in the park. Amcon recommends that the EDA consider alternative concept plans prior to development. Duke Realty submitted the attached proposal information clarifying their interest in a master developer concept in which the EDA would retain ownership and control of the park and work with Duke in the joint marketing and development of the park. Duke strongly recommends that the EDA withhold on infrastructure improvements until the first project is identified so as not to hinder the city's availability of larger lots for development. Duke commits to marketing the park for the development of medium to large sized industrial • users that will generate the greatest employment and tax base for the city. After review and discussion with Ehlers,at best both parties are willing to provide marketing assistance but neither seems interested in acquiring and undertaking the cost of improvements to the park. Therefore it may be better for EDA to abandon the master developer concept and consider contracting with a broker for marketing the park. Feasibility Study The City Engineer,Terry Maurer will provide the EDA with a PowerPoint presentation for discussion of the attached draft feasibility study. It is important for the EDA to consider how the improvement project will be funded. In the past several months the EDA has indicated an interest in initiating the public improvement project as soon as possible in order to have buildable lots available by fall 2005. This schedule was driven in part by a proposed 100,000sf industrial expansion project which has since been delayed for 24-months. The City Engineer,Terry Maurer has indicated that in order to have lots buildable by fall the public improvement process would need to begin in spring 2005. The logical source for payment of the improvement bond/special assessments would be through tax increment finance (TIF) revenues derived from new developments within the park. Initiating the improvement project prior to pending developments puts the city at risk • for not having a source to make bond payments,except through property tax levy,until TIF revenues are generated.