PL PACKET 08202002 - Laserfiche WebLink

Home Browse Search

EHLERS & ASSOCIATES INC To: Mike Morrison,City Manager/Sue Hall Assistant City Manager From: Jim Prosser,Ehlers &Associates W Date: August 8, 2002 Subject: Project Update Project Planning Pratt-Ordway preliminary development activities have been focused in three areas,refining the development program, identifying alternate revenue sources and undertaking preliminary land assembly activities. The development program is the outline of what will be included in the development. Given the cost to acquire land(including relocation)and the public improvements Pratt-Ordway is seeking high value uses that support higher land costs and generate more tax increment and still be compatible with the original concept plan for the area. This is a typical and necessary activity during the preliminary development period. The goal is to close the gap between project revenues and costs. The revenues are basically the land sales proceeds,tax increment and any grants that might be received. The costs include; land acquisition, relocation, demolition,clean up, site preparation and public improvements(roads; streetscape, storm water holding areas,utilities, etc.). Special focus has been placed on assessing interest for commercial and retail users for the site. Typically, these types of users will pay more for land and generate higher taxes per square foot than residential. Given Pratt-Ordway's and Dominium's strong residential background the residential development program will not be as significant an issue. Pratt-Ordway is also preparing a plan that would permit construction to begin on the Apache parcel first with other project components to follow as land and funding become available. Key to this project timing is the need to assure that the entire project will be completed. Project Communications An update for the newsletter and newspapers will be prepared once Pratt-Ordway completes the plan refinement. Pratt-Ordway will be seeking input from the public prior to submitting the refined plan to the City for consideration with the final development agreement. Land Acquisition Preliminary land assembly activities include establishing contact with property owners and businesses in the project area,developing estimates for land acquisition and relocation and assessing interest in business relocation to the new development. Pratt-Ordway has initiated discussions with USBank for an option agreement for the Apache property. The next step will be to develop a better understanding of property owner expectations. The challenge will be to provide reasonable compensation for the property while still keeping the project financially feasible. Since it is likely that the project will need public assistance the land acquisition must meet guidelines for"fair and just"compensation without exceeding reasonable standards for the use of public funds. LEADERS IN PUBLIC FINANCE 3060 Centre Pointe Drive Phone:651-697-8503 Fax: 651-697-8555 Roseville, MN 55113-1105 Email: jim @ehlers- inc.com