12-08-2008 - Laserfiche WebLink

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EDA Item 7C - Redevelopment December 8, 2008 Page 5 of 6 Purchase Offers Made The developer has presented purchase offers to all four property owners located within this 5.7-acre area. Negotiations are ongoing. Marketing At no cost to the EDA, the developer has been marketing the site to the following companies: • Staples • Tires Plus • Sit-down restaurants • Dunn Bros. • Culvers • White Castle • Arby’s • Wendy’s • Save-a-Lot • Dollar Tree It is too early to know which retailer may (or may not) be interested in the site since a site plan has not been completely formulated. However, the developer told City staff that Tire Plus has presented an RFP to them for response. Financial Reality The financial reality of this potential project is that the asking prices along with redevelopment costs have made this potential project’s financial “gap” very large. This “gap” amount includes the following two items: 1. There will be a difference between the final purchase prices and what end users are willing to pay for “pad ready” sites. End users may pay between $12 − $16 per square foot for “pad ready” sites in Mounds View. The developer told City staff that their purchase offers were not based on the sellers’ asking prices but on a realistic sales price (for end users). The difference between the final purchase prices and what end users are willing to pay is still unknown because the developer is still negotiating with the sellers. 2. Redevelopment activities add extra costs to a project when compared to developing raw land. The developer has estimated the following redevelopment costs for the project: • $150,000 Demolition • $150,000 Grading and prep. • $80,000 Xcel Energy lines to be buried • $70,000 Ponding • $100,000 Contingency • $100,000 Trail and sidewalks ? • $650,000