12-07-2015 EDA Packet - Laserfiche WebLink

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Over the past two years staff has had a handful of inquiries/offers regarding the 11 acres of residential land in the Neighborhood Block. However, none of the proposals were substantial enough to cover the remaining debt service on the property even with the additional Tax Increment Financing that would be generated. In August of 2015, the City was approached by DR Horton, Inc. to acquire the 11 acres of residential land in the Neighborhood Block. DR Horton is a national builder and one of the leading residential builders in Minnesota. Following discussions with city staff DR Horton has proposed a purchase of the 11 acre residential area for a price of$1,000,000. Analysis Staff has worked with Springsted Inc., to evaluate the development's potential to cover the City's existing debt obligations. Additionally, staff has reviewed recent sales of land within Lino Lakes that is guided mixed use or medium density residential. DR Horton is proposing to acquire the land and construct approximately 115 row style townhomes on the site generally consistent with the previously approved development in 2006. DR Horton has provided a concept of the townhome style considered for the site. Their intent would be to use the same base floor plan (1,653 SF), but modify the exteriors to give either a more modern or a brownstone exterior consistent with our design guidelines. Land Price The property is part of a larger 30 acre parcel that was acquired by Hartford Group (developer) in 2004 for$5.6 million. The purchase price included payment for the existing business and home on the property. The land price was $3,920,400 ($3/SF). Current listings for residential property within the City show land from $30K to $69k per acre. Over the past two years there has been four(4) sales of property guided mixed use or medium density residential within the City. Property Year Amount Acres SF $/SF $/Ac Mattamy 2014 $4,318,650 98 4,268,880 $1.01 $44,068 Mattamy 2014 $2,716,130 58 2,526,480 $1.08 $46,830 Northpointe 2014 $2,000,000 75 3,267,000 $0.61 $26,667 Jenson (49/J) 2015 $1,000,000 17.25 751,410 $1.33 $57,971 City/Horton 2015 $1,000,000 11.16 486,130 $2.06 $89,606 The Jenson property is the most similar parcel in size and land use. The 17 acre parcel is guided mixed use and allows for residential development at 8-12 units/acre. The city parcel square foot price is nearly double recent purchases and reflects to some extent the existing improvement to the site.