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Item 7A, Discuss Marketing Preferences for EDA-Owned Property May 12, 2008 EDA Meeting Page 3 of 3 In summary, at the May 5, 2008 City Council Work Session, the Council was unsure if now is the right time to sell the property due to market issues and the economy. If the EDA determines a base price now, the price can always be adjusted. Comparable sale prices may change as well as the County’s estimated market value. In addition, if multiple entities become interested in the site, that increased demand will positively affect the price in which the EDA may be able to receive. 2. Should staff focus its marketing message on the EDA’s willingness to sell the property only if the property becomes part of a larger redevelopment project? Also on May 5, 2008, the Council expressed concern over selling the EDA’s property as a stand-alone property. Staff would like clarification on the assumption that the EDA wishes to remain firm in their desire to "bundle" the property with adjacent property or properties in order to assemble a larger project footprint, which would support the highest and best use of the property. Either way, the EDA does not have to sell their property to someone who wants to construct an undesired use for the site. Since the EDA has control of the site, it is to their discretion as to how the property is developed. This would be formalized through a development agreement associated with the sale of the land and a right of reverter clause would return the title back to the EDA if the developer fails to perform. Recommendation Staff recommends that the EDA provide direction to staff regarding the above questions. Respectfully submitted, ____________________________ Heidi Steinmetz Economic Development Specialist Attachments: • “Land for Development” Sign Proof • Comparable Sale (List) Prices • 2008 Ramsey County Estimated Market Value for 2390 County Road 10