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Key parts of the proposal include not only the price but also how the applicant would develop the property, <br />when it would be developed, what the increased tax value would be and the number of jobs created. Staff <br />is suggesting a minimum purchase price of $125,000/acre based upon previous offers and to also set realistic <br />expectations for proposers. Once the proposals are received, staff would review them for completeness and <br />forward to the EDA for review and recommendation. Then a Council selection would be anticipated in late <br />May or early June. Offers are required to be valid for 90 days from the submittal deadline in order to <br />accommodate this schedule. Once a purchase agreement is signed, then the closing must occur within 180 <br />days. <br /> <br />FISCAL IMPACT: <br />At an estimated 426 RECs (from 2020 study) for all 180 acres, there would be $1,704,000 each in WAC, <br />SAC, and connection charges collected at development. <br /> <br />In addition, whatever sale price (minimally $9 million) is received for the property would be allocated to <br />the water fund since the land is an asset of that fund. Legal fees and closing costs related to the sale would <br />also come out of the water fund. <br /> <br />Overall, it is expected that the tax value increase combined with fees and sale price will exceed the costs <br />associated with sale and sewer service. It is likely the water fund (and general fund through tax value <br />increase) will benefit substantially. Since ARPA funds were used for the sewer extension, the sewer fund <br />will see an increase from the SAC and connection fees without the offset of the cost of extending the main. <br />Sewer fund expenses will increase with the city paying the City of Oakdale annually based upon usage. <br />This increased expense will be partially offset by the sewer fees the City of Lake Elmo will collect from <br />the new users on the property. <br /> <br />OPTIONS: <br />1) Approve the issuance of the RFP <br />2) Amend the RFP and then approve the issuance <br />3) Do not issue an RFP for the sale of the land at this time. <br /> <br /> <br />RECOMMENDATION: <br />If removed from the consent agenda: <br />“Motion to issue the Request for Proposals for the Sale of City Land.” <br /> <br />ATTACHMENT: <br />• Request for Proposals for Purchase of City Land <br />• Phase 1 Environmental Site Assessment, May 2019 <br />• AUAR <br /> <br /> <br />