#02 - RFP for City Property - Laserfiche WebLink

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based upon previous offers and to also set realistic expectations for proposers. Since this was just for the south side a new offer came in over $9 million for that, staff would propose updating that number to perhaps a per acre price if the north side is also included as an option in this year’s RFP. The council and commission should provide direction to staff on if the 2021 RFP should be updated to include an option to purchase the land on the north side of CSAH 14 in addition to the land on the south. We would recommend against just selling the land on the north side due to the location of sewer availability south of the railroad tracks. There may be some advantage to having one master developer for the entire area such as more efficient alignment and installation of roads, infrastructure and land uses. The down side is the city may have to accept a lower cost for the land overall. It may take longer to developer with one developer having to do it all. We are required to wait 4 years, per our agreement with Oakdale, before allowing the residential component to be developed. Once the proposals are received, staff would review them for completeness and forward to the EDA for review and recommendation. Then a Council selection would be anticipated in June. Offers are required to be valid for 90 days from the submittal deadline in order to accommodate this schedule. Once a purchase agreement is signed, then the closing must occur within 180 days. FISCAL IMPACT: At an estimated 426 RECs (from 2020 study) for all 180 acres, there would be $1,704,000 each in WAC, SAC, and connection charges collected at development. In addition, whatever sale price (minimally $9 million) is received for the property would be allocated to the water fund since the land is an asset of that fund. Legal fees and closing costs related to the sale would also come out of the water fund. Overall, it is expected that the tax value increase combined with fees and sale price will exceed the costs associated with sale and sewer service. It is likely the water fund (and general fund through tax value increase) will benefit substantially. Since ARPA funds were used for the sewer extension, the sewer fund will see an increase from the SAC and connection fees without the offset of the cost of extending the main. Sewer fund expenses will increase with the city paying the City of Oakdale annually based upon usage. This increased expense will be partially offset by the sewer fees the City of Lake Elmo will collect from the new users on the property. ATTACHMENT: • Request for Proposals for Purchase of City Land