Agenda Packets - 1994/10/03 - Laserfiche WebLink

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1. Wolf&Associates to purchase the entire parcel of property to allow uninterrupted production of their product and to ensure the marketability of their property. This option could allow the City to store equipment on the back part of the lot in an improved, fenced in area. Access to storage on the property is not entirely convenient since the parcel is embedded. in Wolf's Property. 2. Wolf&Associates to purchase the 5,159 sq. ft. and lease the remaining sq.ft. for several years with a 60-day clause that allows the City to take back the usage of the leased property if needed. Again, the City could be allowed to store equipment on the back part of the lot. 3. Wolf&Associates to enter into a 99-year lease for the critical 5,159 sq.ft. needed for production and enter into a short term lease for the remainder of the property with a 60- day clause that allows the City to take back the usage of the short term leased property if needed. The City could be allowed to store equipment on the back part of the lot. 4. Short term lease on the entire parcel. Keep in mind that this option would hinder Wolf& Associates expansion plans and is not recommended as a viable option. Either they would redesign the expansion which would not be as conducive to the needs of the manufactured home park or they would consider expanding elsewhere. They are currently leasing space in Oakdale for the industrial paint division of their company. Economic Analogy: Making several assumption regarding the sales price of the property, lease rate and using the 1994 tax rates, the following chart outlines the revenues generated by each proposed option. Sale/Lease price assumption: • Staff contacted the Tyson Properties regarding the price per square foot of the property they own on Mustang Circle. They indicated they would ask $1.50/sq. ft. since they are not an eager seller but the market would most likely bear $1.30/sq.ft. for a facility to be built on the property. Using this data and concluding that the property has no real value to an outside party besides Wolf&Associates, it is proposed to offer the land for a price per square foot between $0.50 - $0.75. YEARS Value 1 2 3 4 5 Total _. Sell Entire Parcel $8,980 $711 $718 $725 $733 $14867 Sell Portion with lease $5,647 $3,069 $3,071 $3,074 $3,076 . :.;:.;:.;:.;;$17:. 37; LT Lease on Portion/ $4,138 $4,138 $4,138 $4,138 $4,138;::;; < $20 69( ST Lease on Remaining ST Lease of entire Parcel $0.00 $0.00 $0.00 $0.00 $0.00-.