Agenda Packets - 1997/04/28 - Laserfiche WebLink

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• MARKET ANALYSIS REAL ESTATE MARKET ISSUES There are two "market" issues regarding the proposed development: 1) The fit of the proposed development within real estate markets, and; 2) The fit of the proposed development within its target service or product market (gasoline sales). The Feasibility/Highest and Best Use Analysis conducted by Towle Real Estate for the City of Mounds View in January, 1997 concluded the following on pages 16-17: We need to stress the most valuable piece of undeveloped land in the entire study area is the immediate southeast corner of Silver Lake Road and Highway 10. This part of the subject site should be oriented for commercial business that relies on "impulse" traffic, rather than destination-oriented traffic. Several aspects of the corner parcel necessarily lead to the above conclusion: • The high visibility of the corner parcel, • Easy access from both Highway 10 at the signaled intersection and from Silver Lake Road, • • The high traffic volume on Highway 10 and Silver Lake Road, • The adjacent residential market, with both single and multi-family housing. The proposed gasoline service station appropriately utilizes the competitive advantage of the corner parcel. GASOLINE/SERVICE STATION MARKET SATURATION The second market issue is the saturation level of the existing market for gasoline and service station services in the market area to be served by the proposed development. The demand for gasoline and service stations is comprised of two components; the demand resulting from through traffic, and the demand from area residents. Local Gasoline Market An estimated 9,274 households reside within 1.5 miles of the proposed development. Average annual household income is estimated to be over $52,000, with most households having two income-earners. The vast majority of workers drive a single occupancy vehicles to work, for a typical commute of between 20 and 25 minutes. Within the market area there is an average of 1.95 cars per household. Approximately 90% of employed residents commute to work outside their city of residence. Using the national average figures for fuel efficiency and annual miles per passenger vehicle, each household will purchase approximately 11 gallons of gas seven times per month. The total annual household gasoline market totals 10.0 million gallons. • -2-