12-07-2015 EDA Packet - Laserfiche WebLink

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Neighborhood Block This area encompasses approximately 11 acres of developable land. The neighborhood block was originally guided for 190 attached residential units (townhomes). The concept master plan includes a multi-family building on the west side of the block and transitions to attached units on the balance of the property. This option tends to maximize form, density and value. Town Square Block Two (2) acres remains for development in this area. The town square block was originally guided for civic uses (YMCA) and mixed uses allowing for Pt floor commercial with multi-family residential uses above. The concept master plan provides for either a multi-family building or commercial pads on the west side of the block. Urban Block Approximately 7 acres is available for development. The Urban Block was originally guided for mixed use (1st floor commercial with housing above) along the community green. The balance of the property was guided for commercial. Following discussion with P &Z and City Council this area is being proposed as all commercial. Cost Recovery Since the original default the City has covered outstanding debt service through the use of interfund loans primarily from the Building and Facilities Revolving Fund. No property tax dollars have been used to fund debt service. As mentioned previously the funding plan anticipates the use of land sale proceeds to pay off existing debt on the property. In addition the EDA has the ability to capture additional tax increment from any new development constructed in the north half of the site (north of Village Drive). Tax Increment Financing (TIF) District 1-I I was established with the original development to assist with funding of the interchange, land acquisition and improvement costs. The use of TIF in addition to the land sale proceeds greatly increases our ability to cover both outstanding debt and reimburse ourselves for costs already incurred. Accordingly, land sale offers are being evaluated on both purchase price and total development value. The new development value is what drives the increase in tax increment. Our first priority in reviewing proposals is to try and cover remaining debt service, followed by recouping prior debt service and interfund loan expenditures. Our current outstanding principal and interest for the 2005A Improvement Bonds is approximately $3.2 million. Proposals for Acquisition The property has been listed with GreaterMSP, Mn/CAR, LOOPNET and the Minnesota Department of Employment and Economic Development.