05-10-1995 Council Agenda - Laserfiche WebLink

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MAY 04 '95 07:10RM EHLERS & ASSOCIATES 40 YEAR ANNIVERSARY EMORANDUM TO: City of Little Canada FROM: Rusty Fifield SUBJECT: Land Acquisition DATE: May 4, 1995 P. 2/2 The ability to provide sites for development is an important element of an economic development program. Recent work on a proposal to locate a business in Little Canada illustrated some issues related to land acquisition that need to be considered: • Some potential development sites consist of a series of smaller adjacent lots. In some cases, lots are occupied with buildings. These sites do not appear to be available for development. • The developer looks to the City to assemble the site as part of its participation in the project. Acquiring multiple parcels does not occur immediately. This time fat-tor affects the City's ability to respond to a development proposal. • The tax increment revenue from a single project may not be sufficient to acquire property with existing development. The recent proposal shows the gap that must be filled to complete a viable package. These points form the foundation for the May 10th Council workshop. The objective of the workshop is to create some basic policies related to land acquisition for economic development. Questions for Council consideration include: 1. Should the City be more proactive in assembling sites for development? 2. Is it necessary for a project to be self - sufficient? Taking the fiscal disparities contribution (4035 of tax capacity) from me tax increment district reduces tax increment revenues. Excess tax increment revenues may be available to leverage future projects. 3. What development objectives should be achieved to take these steps? EHLERS AM) ASSOCIATES, INC. 2950 Norwest Center O 90 South Seventh Street • Minneapnits, MN 55402 -4100 Takphone 612 - 339.8291 O FAX 612.339.08Se Page 1