EDSR MEMORANDUM 07-11-1994 - Laserfiche WebLink

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EDA Agenda Memo Page 2 July 11, 1994 Street/Park Superintendent Phil Hals was requested to prepare some • cost estimates for this endeavor. Please refer to Phil's handout in the agenda packet. ACTION REQUESTED The EDA Commissioners are asked to consider the costs of the interim improvements, and further, to recommend that the City of Elk River absorb these costs. Depending on the scope and desired outcome of this project, the EDA Commissioners may also wish to recommend that the City retain a landscape architect who would be responsible for the preparation of a design for this project. Phil indicates that one of his summer employees has the ability to create various designs. 7. Business Park Issues At the May EDA meeting, Commissioners authorized Panger/Benson Appraisal Professionals to undertake an appraisal of 34 to 35 acres of proposed business park property. The appraisal was still under review • at the June EDA meeting. Since that time, the Negotiating Committee has met with Panger/Benson as part of an appraisal consultation to answer the questions of the Negotiating Committee. As a result of this consultation, a follow-up report was submitted by Panger/Benson: This follow-up took into consideration a development cost approach excluding traditional expenses such as real estate tax, profit, etc., and, a discount rate at 10.5 percent. A second illustration utilized a discount rate of 4.5 percent. Utilizing this approach, Panger/Benson indicates a fair market value of $283,947 ($.19 per square foot) or $383,566 ($.25 per square foot) if a 4.5 percent discount rate is utilized. Salient points of the appraisal together with the follow-up correspondence from the consultation are included in the agenda packet. Subsequently, the Negotiating Committee met to review the consultation update, and, to consider a potential offer to Country Ridge Partnership. At its June 28th meeting, the Negotiating Committee agreed to meet with Country Ridge to discuss the broad brush strokes of the appraisal's estimated fair market value of the 34 acres, and, to discuss the broad parameters of an offer the Negotiating Committee • would recommend to the EDA Commissioners. Committee members