6.0. EDSR 12-13-2004 - Laserfiche WebLink

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EHLERS • &. , , SOC ,, - ES MEMORANDUM DATE: December 10, 2004 TO: Catherine Mehelich, City of Elk River FROM: Sid Inman, Ehlers and Associates Inc RE: City-Owned Industrial/Business Park Development Options This memo is regarding the EDA and the City owned industrial/business park land. The EDA/City are considering developing the parcels they both own into industrial park uses and are beginning a process to determine the best way to proceed. It has been our experience that to insure that the EDA/City achieve there goals for development, a request-for-proposals (RFP)process works best. Using a RFP process insures that the EDA/City will receive the highest price for the property, development to the highest and best uses and allow the EDA/City to control the process. Further, if business assistance is needed this process will insure that any assistance will be given with the minimum needed to make the project financially feasible. The EDA/City would prepare RFP materials giving the developers some general information regarding • the sites and also includes the EDA/City goals for the type and quality of development they want. Items could include: 1. Maps of the two areas 2. Zoning code for the area 3. City/EDA's development goals for the area. i.e. size of buildings,types of buildings, quality of material. 4. Public improvements that are currently in both areas 5. An estimate of future public improvement needs. 6. Public Improvements may include City assessment bonds. 7. A schedule of Sac Wac and Park dedication fees. 8. A copy of the City business subsidy policy. 9. A copy of the City tax increment/abatement policy. We would then ask the developer to give us their view of the market place. 1. A description of the types, sizes and usage of the buildings they think they can market. 2. An estimate of the assessor's market value of buildings when completed. 3. An estimate of the build-out of the two areas by year. 4. When adding in Sac,Wac,Park dedication fees, current special assessments and future public improvements,what is the developers estimate of the amount a third party would or could pay for sq. ft. of land. 5. What would their development fee and overhead expenses be. • The EDA/City could review the RFPs and,if necessary,have interviews with the developers that seem to achieve the goals of the EDA/City. Once a developer is selected the EDA/City could begin to negotiate a master development agreement that would be the controlling legal document for the entire site. It would contain all of the details as to price paid for land, what would be build,timing on phases, and amount and method of delivery of assistance(if any is needed).