6.0. EDSR 09-08-2003 - Laserfiche WebLink

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13. Building Market Value of$40 per square foot(similar to Elk River Business Park 14. One building a year on each lot with separate TIF districts. • Based on these assumptions we evaluated the industrial purchase price that the buyer would be asked to pay depending on the level of assistance determined by the EDA. If the buyer pays $1.00 per square foot, the result is excess tax increment in all three parks. This would mean that less TIF and fewer TIF districts would be needed to develop Phase I of the park. If the buyer pays$0.50 per square foot,then all three parks would have sufficient TIF to cover the gaps. If the buyer pays $0 per square foot,then one park would have deficits and one park just covers the cost. These results are in line with some landowners and industrial users who told us they thought that a buyer would be willing to pay from $0.50 to$0.75 a foot for industrial land in the Elk River area. I would recommend that we present these results to the EDA for comment and direction. Some of the policy issues to be determined include the following: 1. Level of assistance 2. Pay as you go 3. Assessment bonds 4. Industrial/business parks to be included 5. Annual review of the model 6. Competition between the City and landowners 7. Master developer for the EDA property 8. 80%or 90%of the TIF to be allowed I would then recommend we look at$0.50 to $0.75 a square foot as our industrial purchase price. We should then meet with the two landowners to begin the process of evaluating their cost of land and discussing the process. Other areas and parks could be analyzed with the same model,but they may arrive II at different levels of assistance needed due to the unique attributes including level of city services and types of uses(e.g. Cascade Industrial Park). Please let me know if you have questions or comments. III