5.6. SR 05-08-2006 - Laserfiche WebLink

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City of Elk River Land Use Financial Plan Overview The City of Elk River has requested that Ehlers & Associates submit a proposed scope of work for a Land Use Financial Plan (LUFP). The purpose of the LUFP is to build upon the work already completed for the City including: 1. Comprehensive land use plan completed in 2004. 2. The 10 year financial management plan completed by Ehlers and City staff in 2005. The data from these studies will be utilized as a starting point for the LUFP. The 2005 financial management plan looked at the tax rate implications of very specific capital projects on the horizon for the near term in the context of a projected tax base and operating expense budget. This study did not examine the impacts of different types of development on the future tax base. The Comprehensive Land Use Plan laid out general categories of uses and general densities for much of the undeveloped portions of the City. However, within those broad land use categories is a potential for great variation in values, densities, and specific uses. This is especially true in the gravel mining and commercial reserve areas. For example, in today's market land guided as commercial or even mixed use could have dramatically different valuations per acre. A small office/warehouse on a large parcel of property could have 1/10 the market value of a mixed use retail/housing property on the same parcel or 1/5 the value of a three story office building. The study will not attempt to determine exactly what type of development will go where. Rather, it will serve as a financial blueprint for both the future property tax revenue stream for the City and for the associated expenses. This blue print will illustrate the differences in future tax rates given different types and densities of development. This is not just a revenue based equation. The mixed use retail/housing use in the example above will obviously have higher infrastructure and public safety service needs than low density office. The LUFP will also offer insight into the level of the service costs and staffing needs for the City.