07-11-1994 EDA MIN - Laserfiche WebLink

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EDA Minutes July 7, 1994 Page 4 7. Consider Business Park Task Force Issues Bill Rubin explained that the Business Park Task Force Subcommittee met with the principals of Panger/Benson Appraisal Professionals to discuss the appraisal of the proposed business park property. As a result of this meeting, a follow-up report was submitted by , which excluded expenses such as real estate tax, profit, and, provided for discount rates of 10.5 percent and 4.5 percent, respectively. Utilizing this approach, Panger/Benson indicates a fair market value of $283,947 ($.19 per square foot) at the 10.5 percent discount rate, and, $383,566 ($.25 per square foot) at the 4.5 percent discount rate. Bill Rubin indicated that Patrick Dwyer, Carol Mills, Hank Duitsman and himself, met with Tony Emmerich and Jay Johnson, representatives of Country Ridge Partnership on July 5, 1994. Country Ridge Partnership indicated that its price for the 34 acre Business Park was $556,750 ($16,375 per acre; $.376 per square foot). The Negotiating Committee indicated that it would recommend to the EDA a. price of $296,208 ($8,712 per acre; $.20 per square foot) for the site. Vice-President Dwyer explained that the difference in opinion was largely over the zoning of the property. The present owners of the property consider the highest and best use of the property to be Highway Business and have determined their asking price accordingly. He explained that based on the current zoning (Planned Unit Development with an underlying land use of 1-1, Light Industsrial), the market would command a lower value for the property. Vice-President Dwyer noted that in order for the City to break even when the lots are sold, the City's offer must be based on the property value, including cost of improvements. Country Ridge stated that its counter offer would not change from its original asking price. Vice-President Dwyer noted that the representatives briefly mentioned the possibility of litigation to pursue the Highway Business zoning issue. Vice-President Dwyer recommended that the EDA accept the proposal from Panger/Benson. Bill Rubin suggested that it may be appropriate for Council to implement Business Park Zoning at this time. Commissioner Holmgren indicated that it was his understanding that the rezoning issue had been before the City Council previously, but it was put off because Councilmember Scheel was absent, and a four-fifths vote was needed for rezoning. COMMISSIONER DUITSMAN MOVED TO ACCEPT THE PANGER/BENSON APPRAISAL REPORT. COMMISSIONER HOLMGREN SECONDED THE MOTION~ THE MOTION CARRIED 5-0. Discussion followed regarding the best use of the property in question and whether or not the property should be rezoned at this time. Commissioner Duitsman stated that he felt any rezoning should be delayed until the Comprehensive Plan Steering Committee has completed its update of the Comp Plan.