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Item 7A, Discuss Marketing Preferences for EDA-Owned Property <br />May 12, 2008 EDA Meeting <br />Page 2 of 3 <br /> <br />Additional Marketing: Signage and Land Price Clarification <br /> <br />Signage <br /> <br />Another idea for promoting the site would be a “Land for Development” sign to be <br />placed on the property for public relations purposes. Since the property is not <br />generating additional tax base for the City, a sign would send the message to residents <br />and the larger community that the EDA is being proactive with trying to sell or initiate a <br />project on the property. Inquiries from developers and commercial real estate brokers <br />are typically generated from the MN Commercial Association of Realtors (MNCAR) <br />Website or by word-of-mouth, so as mentioned above, the main purpose of a “Land for <br />Development” sign would be for public relations purposes. <br /> <br />Since the agreement with Master Development will soon expire and in an effort to be <br />proactive, staff requested basic real estate sign quotes from three sign companies, <br />located in Blaine, Fridley and Mounds View. Staff received two quotes and Let’s Get <br />Graphic in Mounds View was the only company to submit a proof, which is attached for <br />the EDA’s review. Staff will verbally present the details of the sign quotes at the EDA <br />meeting if the EDA wishes to move forward with a sign. <br /> <br />Land Price <br /> <br />A more aggressive marketing approach, which is basically shifting into the “sales” <br />category, may be for the EDA to determine a base land price for the property. The EDA <br />may wish to begin this discussion because it will present a professional image to the <br />development community. If the EDA states that the price is simply “negotiable” without <br />having a base price in mind, this does not send a very professional image to the <br />development community. <br /> <br />The current value of the EDA’s property will be determined by its current use, which is a <br />vacant commercial lot. The value will not be determined by the type of development <br />that may occur on the property in the future. Therefore, it is highly unlikely that the EDA <br />will be “made whole” on their acquisition investment of $625,000. <br /> <br />If the EDA wishes to begin discussing a base price at this time, the EDA could <br />determine the price based on sale prices of comparable properties, which is how most <br />offers are generated per a potential buyer’s real estate broker’s guidance. Attached are <br />a few comparable list prices of properties located in nearby communities. <br /> <br />The EDA could also determine the price based on the Ramsey County’s 2008 estimated <br />market value, which is $446,000, which equates to just under $8.00 per square foot. It <br />is highly unlikely that the EDA will receive an offer based on the assessed value but it is <br />a starting point for the EDA to consider.