Agenda Packets - 2001/03/05 - Laserfiche WebLink

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subsequently incurred some demolition costs. If the city were interested in developing/selling the property, I would suggest selling the property at a substantially reduced price given its limited development potential. The development potential is constrained due to limited access (currently right in, right out only off of County Road I), adjacent land uses, and the small size of the parcel (approximately .8 acres). Since the parcel is within TIF District #1, the city could expect to recuperate its acquisition costs plus generate additional revenue over the next twelve years. This is possible through additional pooled increment resulting from the new construction. The following is illustrative: Suggested Sale Price $ 50,000 Potential Additional Pooled Increment Generated $193,060* Total Revenue Associated with Property $243,060 Minus Initial Acquisition Cost $120,000 Net Increase in Revenue Until District Decertification: $123,060 *This is based on an assessed market value of $500,000 resulting in annual real estate taxes of $19,306 over a 10-year period. While the above is an approximation, over the remaining life of TIF District #1 it appears as if the city would generate additional revenue even after selling the property at a reduced price. Of course, the above is also predicated on the fact that additional TIF assistance would not be provided. After a cursory review, it does not appear as if the potential project is a strong candidate for TIF assistance. The ongoing administrative and legal costs, limited capacity for the project to generate revenue, and other issues associated with providing TIF assistance provide the basis for this interpretation. Should the EDA determine that development should not occur on the parcel, staff would also request direction about what to do with the property. Options could include leaving it undeveloped, landscaping, and so on. The second alternative being considered is across the street adjacent to the WIN Insurance Agency. This parcel is highlighted as “alternative site” on the map above, and is part of the Silverview Estates Planned Unit Development. The PUD allows for up to 5,000 square feet of office to be developed on this particular parcel. This property is located within TIF District #2. Discussion: 1. Is the city interested in having this property developed? If not, what should be done? 2. If so, would the city be willing to sell the property to Mounds View Animal Hospital, and on what terms? Necessary Actions: Provide direction on the use of 2625 Highway 10. ______________________________________ Aaron Parrish, Economic Development Coordinator (763) 717-4029