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Oct. 5, 2009 City Council Work Session Item 2 – Burger Time Page 2 of 3 Listed below is a breakdown of the EDA’s investment in the property at 2390 County Highway 10: $2,000 appraisal $625,000 purchase/acquisition of the property $25,000 building demolition, site clearance/environmental abatement Discussion There are two discussion points for the EDA/City Council to consider: 1. Is the EDA/City Council interested in the Burger Time concept for 2390 County Highway 10? 2. Does the EDA/City Council want to set an asking price for the property? Below are a few items for the EDA/City Council to consider when discussing Burger Time and 2390 County Highway 10: 2010 Ramsey County Estimated Property Value Ramsey County’s estimated market value of 2390 County Highway 10 is $446,000, which is just under $8.00 per square foot. The current value of the property is determined by its current use, which is a vacant commercial lot. Per the EDC’s direction on September 18, 2009, City staff contacted several appraisers. City staff learned that since appraisers are certified with the State, even an estimated value range is considered an appraisal, so appraisers will not provide value ranges at no charge. Plus, even the most basic appraisal would take several hours. Therefore, two appraisal firms suggested contacting a commercial real estate broker or realtor if the EDA is interested in requested a range of value for the property at no charge. Property Tax Scenarios Since the EDA currently owns the parcel, there are no property taxes generated from the property. If a private party purchased the vacant parcel, the total property taxes paid (City, State, School District) would be about $13,462. From 2007-2009, the property would have generated at total of about $40,386 in property taxes if the property was privately owned. Forecasted Tax Contribution by Burger Time The local commercial real estate broker for Burger Time estimated that a new Burger Time building would be valued between $750,000 and $900,000. Based on a building value of $750,000 alone, the amount of total taxes paid on the property would be about $23,428 per year. Zoning The 2390 County Highway 10 parcel is zoned B-3 (Highway Business). TheB-3 zoning designation allows a restaurant, but Burger Time would need to apply for a Conditional Use Permit because it is a drive-in/convenience restaurant, along with a Development Review, for consideration by the Planning Commission and the City Council.