02-24-1999 Council Agenda - Laserfiche WebLink

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Council of why this concept warranted further consideration given our planning efforts to date. *The commissioners' hearing for the Guerin property eminent domain process will be held on March 2 °a. We will be represented by the City Attomey. Northeast Corner of Rice Street/Little Canada Road I have been asked to put together some options to consider in seeking development for this site. While I have not yet discussed this with Rusty Fifield due to his recent vacation, here is my analysis of this situation. The first issue we need to consider is what we want for that corner. Given the principles outlined in the development guide , we should be seeking at least a two -story structure that is located adjacent to the intersection's right -of -way. This would likely need to be an office or office /retail use. Given our costs into that site and depending on the degree of incentive we would need to offer a developer to entice him to build there, we likely need a structure of at least 25,000 square feet that generates an estimated market value of $80 per square foot. This should allow us sufficient tax increment to recover our costs (depending on the final outcome of the Guerin eminent domain proceedings). To attract a developer to this site, I think there are three basic approaches: The first would be to do an RFP on the site outlining development parameters we need attained. The pros of this approach would be dealing directly with the developer thereby lowering costs associated with putting a deal together and a better opportunity to screen out desired projects through the RFP process. The cons of this approach involve the uncertainty in attracting a developer (see our last RFP process for this area) and development interest in this site given the appearance of surrounding properties. 2. We could list the property with a realtor/broker and have them aggressively market the site. The pros of this approach include a targeted marketing program with better industry contacts. The cons include higher costs associated with a broker's commission and the appearance of surrounding properties. 3. The third approach would be to place our own real estate sign on the corner and take a wait and see attitude with the other concepts being proposed for the southeast site. The key benefit of this approach is that as other redevelopment occurs on the southeast corner, this site becomes more valuable and should be easier to attract development. The principle detraction with this approach is more time could be wasted if nothing happens on the southeast corner. Council discussion is necessary to set a direction as to how to approach the development of this property. Page 21