02-26-2018 EDA Packet - Laserfiche WebLink

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WS – Item #1 ECONOMIC DEVELOPMENT AUTHORITY STAFF REPORT Close Meeting Item No. 1 Confidential Date: February 26, 2018 To: Economic Development Authority From: Michael Grochala, Community Development Director Re: Legacy at Woods Edge Land Sale Background At the February 12, 2018 EDA meeting the board discussed competing interests in the Legacy land. Ultimately the direction provided at the meeting was to continue discussions with Venture Pass Partners regarding purchase of 2.4 acres of land for a grocery store. Staff was directed to inform Lyngblomsten that the EDA was not interested in pursuing their project further. The EDA noted that given the existing senior facilities in the project and desire for commercial development it was not the right fit. Venture Pass Partners has submitted a draft Letter of Interest (LOI) to purchase the 2.4 acre tract for $574,992 or $5.50 square foot. An LOI is a nonbinding document outlining proposed terms of a transaction. Once agreement is reached the terms will be incorporated into a purchase agreement. Analysis The Venture Pass proposal’s 30,000 square foot project is estimated to have a value of $4 – 6 million. Aldi in Blaine is assessed at a total value of $1.8 million. Land Price The following is a comparison of Venture Pass offers to the existing Anoka County market value, local commercial pad sales and the DR Horton sale in 2015: Source Year Amount Acres SF $/SF $/Ac $/Unit City/Horton (112 units) 2015 $1,000,000 11.16 486,130 $2.06 $89,606 $8,928 Anoka County 2018 $1,399,300 6.27 273,121 $5.12 $233,174 NA Aldi (Blaine) 2015 $902,017 2.23 97,139 $9.28 $404,491 NA Eagle Liquor 2016 $378,000 1.02 44,431 $8.51 $370,588 NA Venture Pass 2018 $574,992 2.4 104,544 $5.50 $239,580 NA