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07/06/97 15:07 NO.746 1302 <br /> BROOKSTONE,INC. <br /> • r <br /> 4. / <br /> 7400 Metro Blvd.,Suite 212 <br /> Edina,Minnesota 55439 <br /> July 6, 1998 612.837.9167 phone <br /> 612.837.8010 fax <br /> Paul T. Steinman City of Elk River /`c,�o t k1 8/14.8 . <br /> 13065 Orono Parkway <br /> P.O.Box 490 <br /> Elk River,MN 55330 <br /> Dear Paul: <br /> We are excited about the opportunity of working together with you in the creation of a high quality <br /> business park in Elk River. We understand that Matt Fischer is moving towards a closing of the <br /> overall property this summer and on that basis we are currently finalizing our arrangement with him <br /> to secure control of the approximate thirty acres of useable industrial property as the south end of <br /> the site. We are writing to you to begin the approval process and outline our preliminary project <br /> concept. In this regard,we are attaching <br /> • 1. A preliminary overall master concept plan. <br /> 2. An outline of initial infrastructure needs and anticipated assessed values of the project. <br /> The specifics of the concept plan and proposed first phase is outlined below: <br /> 1. Overall Master Plan—the plan attached shows approximately 325,000 square feet which is <br /> about a 27% site coverage on the twenty-eight useable acres. We feel that we can probably <br /> increase the overall square footage to above 350,000 with some plan refinement. <br /> 2. Uses —we anticipate and propose a mix of multi-tenant and single user industrial <br /> office/warehouse buildings with finishes ranging from 10-40%and probably averaging in <br /> the 20-25%range. <br /> 3. Property Taxes —based upon the current commercial property tax rates we anticipate that <br /> when fully assessed these buildings on average will generate annual property taxes in the <br /> $2.00 per square foot range. On this basis, the total property taxes payable on this project <br /> upon completion will be approximately$750,000 at today's value and tax rates. The first <br /> phase, as outlined below,will generate taxes when fully assessed, of approximately$100,000. <br /> 4. Phasing—we anticipate starting with a phase I multi-tenant speculative office/warehouse <br /> building of 50,000 square feet as shown on the attached plans no later than April 1, 1999. <br /> • We feel that it is necessary to proceed on a speculative basis in order to create some near <br /> term momentum for this project and generate additional interest. We expect that the total <br /> industrial park will be phased-in over a four to six year period. <br /> REAL ESTATE ADVISORY SERVICES.INVESTMENT AND DEVELOPMENT <br />