Laserfiche WebLink
Dec. 16, 2011 EDC Meeting <br />Item 5A – 2832 County Road 10 <br />Page 3 of 3 <br /> <br /> <br />Financial Impact <br />The financial impact to the EDA if they choose to purchase this property for redevelopment <br />purposes would consist of the purchase price, demolition costs and a loss of property tax <br />revenue until the property is resold. A conservative estimate to purchase the property at <br />the asking price ($316,800) and for demolition ($33,200) would be $350,000. The EDA <br />most certainly would not offer to pay the asking price and City staff would receive three <br />quotes for demolition (site clearance and/or cleanup). For comparison purposes, in 2006, <br />the cost for demolition, site clearance and abatement of hazardous materials of the former <br />Premium Stop gas station site was $24,910. <br /> <br />The property taxes for 2832 County Rd 10 in 2011 were $15,792. If the EDA purchases <br />the property, conceivably the EDA would be losing the City’s portion of the property taxes <br />(not the entire $15,792) per year until the EDA sells the property for redevelopment. <br /> <br />2002 County Road 10 Redevelopment and Revitalization Plan <br />The latest County Road 10 Redevelopment and Revitalization Plan was completed in 2002. <br /> The plan did not include a redevelopment concept for this particular site. However, page <br />12 of the plan referred to the “old, unattractive commercial properties” on the site and <br />“numerous small lots with direct and/or undefined access” to County Road 10. A single- <br />parcel redevelopment project occurred on the site in 2004 (the former Amoco station was <br />replaced by a new CVS Pharmacy). <br /> <br />EDC’s Redevelopment Concept <br />What is the EDC’s redevelopment concept for the site? City staff will forward the EDC’s <br />vision for the site to the EDA along with the EDC’s recommendation regarding the potential <br />acquisition of 2832 County Road 10. <br /> <br />Recommendation <br />Staff recommends that the EDC recommend to the EDA that the EDA submit a purchase <br />offer for a specific amount below the asking price for 2832 County Road 10. <br /> <br />Respectfully submitted, <br /> <br />____________________________ <br />Heidi Steinmetz, Economic Development Specialist <br /> <br /> <br />Attachments <br /> <br /> Ramsey County Tax & Property Information <br /> CBRE Marketing Brochure <br /> <br />