7.5. SR 04-03-1995 - Laserfiche WebLink

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. For example, assume it cost the School District $70,000 to prepare its Oak Knoll site for construction and to extend utilities to this site. On the other hand, to prepare the Industrial Park site for construction may only cost $25,000. In this scenario, the City would be asking for $45,000 ($70,000 - $25,000 = $45,000) from the School for the Industrial Park site. In this manner, the City captures some funds to pay off our original Industrial Park purchase. The concept of what the City is proposing is somewhat difficult to put down on paper, but it is relatively simple. The School District can construct the building in the Oak Knoll complex. If it prefers a site in the Industrial Park, it can have this site from the City, but the City needs to recapture some of its expenses. What we are looking to recapture is the utility and site preparation "savings" that the School would realize by going to this developer ready Industrial Park site. By offering the School this Industrial Park site, the City is foregoing a potential increase in its tax base and its employment base provided that the site would be used for an industrial project. The City would certainly like to be a good neighbor and simply give this Industrial Park site to the School, but the City has financial responsibilities and the best it can propose at this • time is to give the School a good deal on the available lot. One final note -the City can set a maximum price of $45,000 from the School for this site. (A $30,000 minimum price should also be set.) It is possible that the figures in the above scenario could be $80,000 for Oak Knoll and $20,000 for the Industrial Park whereby the School savings for site preparation and utilities would be $60,000. The City would only receive $45,000 of this amount, so the School could actually see a real dollar savings by selecting the Industrial Park site. •