02-27-2002 Council Agenda - Laserfiche WebLink

Home Browse Search

DEC -26 -2001 14:45 CITY OF SHOREVIEW 651 490 4699 P.02'03 Croativo Solutions for Land Planning and Design Hoisington Koegler Group Inc. December 20, 2001 Ms. Kathleen Nordine City Planner City of Shoreview 4600 Victoria Street North Shoreview, Minnesota 55126 RE: • Rice.Street Crossings Dear Kathleen, . As we have progressed in the planning for Rice Street Crossing, the need for a financial element has hrrnme clear The financial implicatinns of the rrdevelnpmrnt will hn nninial to hnth pnhlir, and private decision - making, especially as we look to create the significant infrastructure investments needed to facilitate redevelopment. The propose of this letter is to propose a scope of work and budget for a financial feasibility element of the plan. ' The rationale for this work is simple. The vision for Rice Street Crossings will not be achieved unless it is grounded in financial reality. The plan calls for public investments in a bridge, parking structure, and infrastructure.. Private: investment will not occur unless development is profitable:. Additional public assistance may be needed for land acquisition and site development. At this point, and especially as we consider sharing. our progress with the various city councils, financial issues should be considered in conjunction with the refinement of the preferred redevelopment plan. • Our contract calls for a review of economic and financial feasibility, which we had viewed as a market - based assessment. Dick Paik has been involved in the process of ensuring that the project is market feasible, but we did not envision a review of resulting property valuation or the potential of various financing strategies. It seems -, based on discussions -at Monday's TAC mooting, that 301110 of thews investigations would be prudent. Scope of Work The purpose of the effort is to assist the parties in understanding the financial investments needed to ' implement the plan. HKGi proposes to undertake the following tasks to create the information needed evaluate the financial implications of the plan: 1. Identify public actions needed to implement the plan. 2. Estimate the costs and funding options for public actions. This was not a part of the initial contract, but it would be necessary to have an understanding of the public costs in order to gain a sense of financial feasibility. 3. Estimate land and site development costs and assess potential economic barriers to redevelopment. Again, this was not a part of the initial, contract, but it is a necessary part of the feasibility equation. 4. •Estimate net property valuation from redevelopment. 123 North Third Street, Suite 100, Minneapolis, MN 55401 -1659 Ph (612) 338-0800 Fx (612) 338.6835