6.0. EDSR 01-10-2005 ITEM II 6.
City of
Elk*1
River
MEMORANDUM
TO: Economic Development Authority
FROM: Catherine Mehelich, Director of Economic DevelopmentC<
DATE: January 10, 2005
SUBJECT: Consider Conceptual Layout for EDA Brown Business Park
Property
Attachments
• EDA Brown Property Conceptual Layout
• Draft Request-for-Proposals
• Background
The recently adopted Economic Development Strategic Plan identifies Industrial
Development as a priority goal. In order to meet the goal the Plan calls for the City's
consideration of providing city-owned site options for development,in addition to privately-
owned sites.
On November 8, 2004 the EDA participated in a joint work session with the City Council to
discuss its Business Park/Light Industrial sites and development options. The EDA and
Council provided staff direction to proceed in developing a plan for Phase I improvements
and development of the following areas:
• City-owned Cargill land—60 net acres,Light Industrial and Highway Business
• EDA-owned Brown land—45 net acres,Business Park
The goal is to encourage industrial development in the City of Elk River. The objective is to
having lots available for immediate development and to put all industrial land in Elk River
on a level playing field in price and financing assistance, allowing the end user/manufacturer
to select a site based on the site location and its amenities rather than on price.
At its December 2004 meeting the EDA directed staff to work with Ehlers &Associates in
developing a request-for-proposals that would be sent to interested developers for the EDA
Brown Property. The EDA also directed staff to draft a conceptual layout for the
• development of the EDA Brown and City-owned Cargill properties.
Recent Activities
Request for Proposals
Ehlers &Associates have recommended that the EDA/City utilize an RFP process that
insures that the EDA/City would receive the highest price for the property, development to
the highest and best uses and allow the EDA/City to control the process. The RFP process
is a way to market the site immediately to developers and brokers.
The attached RFP has been prepared by Ehlers &Associates for the EDA's review. Staff
requests the EDA's feedback on the draft RFP.
Improvement Schedule, Costs and Plan
Staff is drafting a schedule for the City review and approvals for the construction of public
improvements (water, sewer, streets) to the EDA Brown and City-owned Cargill properties.
It is the goal to have one or both properties available for developer construction in
September 2005.
Staff is discussing financing options for the improvement project. In order to identify the
estimated costs of the improvement the EDA should consider a plan for the property.
Ehlers will analyze the costs of the land and improvements to consider the worst case
scenario with the slowest build-out and the least sale price of land to determine how much
tax increment (from new construction value) will be needed.
• Staff is developing conceptual layouts for discussion with adjacent property owners for the
• City-Cargill land. A survey of the EDA Brown property is being prepared. Staff has
prepared the attached concept plan for the EDA Brown property which works around the
constraints of the wetland area, accesses and the gas line. The concept includes a lot layout
that could provide large,medium and small sized parcels, as listed below:
Lot 1 8.75 acres reserved for the future location of YMCA
Lot 2 3 acres to accommodate up to 20000sf building
Lot 3 2.2 acres accommodates up to 22000sf building
Lot 4 2.2 acres accommodates up to 22000sf building
Lot 5 1.67 acres accommodates up to 20000sf building
Lot 6 1.78 acres accommodates up to 20000sf building
Lots 3-6 could be made an outlot for dividing in the future (7.85acres)
Lot 7 12 acres to accommodate 100000sf building for
current manufacturing prospect
Lot 8 3.4 acres to accommodate up to 25000sf building
Lot 9 2.7 acres reserved for regional storm water drainage
of the park
Issues for discussion
• The EDA may consider if the improvements of the property will be phased in or
completed for the entire site at this time.
• • The EDA ma consider a name for its business park property.
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City of Elk River
Economic Development Authority
Brown Business Park Properties
Request for Proposals
Superb locations in Elk River:
- Rapidly growing area located 35 minutes from Minneapolis
• - Light industrial sites available on 45 acres
- Individual parcels could range from 1.5 to 7.85 acres
- Water, sewer, electric and natural gas utilities available
- Convenient access to and located 1/4 mile from US 169 & US 10
- Eight miles from Interstate Highway 94
INSERT MAP OR PICTURE
City of Elk River is requesting proposals for the sale and development
of several light industrial parcels located in Elk River, Minnesota
111 Contact Catherine Mehelich at 763-635-1041 for more information
Proposals accepted through March 1, 2005
Page 1 of 6
REQUEST FOR PROPOSALS 'fq
• FOR SALE AND DEVELOPMENT
01C3
Elk River, Minnesota
Section One: Introduction
The Elk River Economic Development Authority is requesting proposals for the sale and
development of the Brown Business Park in the City of Elk River. The parcels comprise
45 acres, and are zoned Business Park with an underlying land use of light industrial.
Individual lots may range in size from 1.5 to 7.85 acres. The parcels are located
adjacent to Twin Lakes Road with convenient access to U.S. Highways 169 and 10.
Directly adjacent to the property is the currently operating Northstar Commuter Coach
and the future site of the Northstar Commuter Rail Depot Station.
Elk River is a vibrant community of 18,758 and is the county seat of Sherburne County,
one of the fastest growing counties in Minnesota. It is a city nestled between forested
hardwoods and prairie along the Mississippi and Elk Rivers.
Located 35 miles from Minneapolis, the city is a blend of both rural America and
commercial convenience.
The site has wonderful access due to the proximity of major transportation
thoroughfares such as US Highways 169 & 10 and Interstate 94. The Elk River area
has experienced continued strong residential, commercial and industrial growth
• necessitating the City to market its available Business Park land for future industrial
development.
The City is requesting proposals that will maximize the use of the light industrial parcels.
Section Two: Information about the property
The parcels are available for sale and development. This presents a substantial
development opportunity. Adjacent to the property to the west is a wetland area
separating the parcel from the BNSF Railroad and US Highways 169 & 10. To the east
land is zoned single family residential, south is more industrial and commercial, and
land to the north is zoned as business park and to the northeast is multi-family
residential. The City has no plans to change the zoning of these areas.
(Description of improvement schedule...)
The development concept works around constraints of the adjacent wetland, gas line
and access points dictated by the City's Transportation Plan. As development of the
Brown Business Park occurs, Lot 7 is being reserved for a 100,000 square foot
manufacturing prospect. Lot 1 is being reserved as a future site for a YMCA.
The strengths of the site include the following: (1) Convenient access to US Highways
169 and 10; (2) Proximity to Interstate 94; (3) Adjacent residential and commercial base
• surrounding the Site; (4) Improved traffic infrastructure that is nearly completed; and 5)
Directly adjacent to the Northstar Commuter Coach site and proposed site for the
Northstar Commuter Rail Depot Station.
Page 2 of 6
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• Zoning
All parcels are currently zoned Business Park District (BP). The District encourages a
planned integrated environment for certain industrial, office, and commercial uses that
are compatible with and complement each other as well as the surrounding land uses.
The intent of this district is that development reflects common themes using compatible
architectural design and consistency in signage, landscaping and lighting. It is also the
intent to encourage businesses that generate a high number of jobs per square foot
rather than predominantly warehouse type uses. For further details please refer to City
Code Section 30-1294 regarding permitted, accessory and conditional uses (attached).
Section Three: Proposal Criteria
The City has a keen interest in maximizing the use of these parcels and fulfilling
community needs. The City envisions quality developments that are aesthetically
pleasing and fit in with the surrounding business park area.
The Goals of the development are:
• To increase the city's future property tax base thus reducing future increases in
property taxes on current residents
• To create quality job opportunities for current and future residents
• • To create an increased customer base for retail business
• To market city-owned and privately-owned business park properties
• To improve traffic access and circulation to and through the area
• To encourage a mixture of market-supportable land uses compatible with one
another and with the surrounding area.
• To protect long-term vitality of adjacent commercial and residential areas
The City is seeking a creative, qualified developer to oversee the development of the
targeted area. The City is willing to consider proposals for partnering with a master
developer for development of the entire area or with developers on individual sites.
It is important to note that the City will not pay any realtor fees or commissions in the
event of the sale of property. Potential developments the City would encourage include,
but are not limited to, light manufacturing and production facilities, high technology
manufacturing or research and development facilities. The City is not interested in
purely warehouse and distribution facilities. The zoning district requirements prohibit
outdoor storage of materials and equipment.
Section Four: Timeline
The City will consider all proposals that are submitted by March 1, 2005. The City may
have the property appraised and may negotiate a Letter of Intent after reviewing and
selecting a proposal.
Page3of6
Section Five: Cost/Sale of Land
• The land sale cost will be reviewed based on the successful developer(s) submitting a
proforma including SAC, WAC, park dedication fees, current special assessments and
future public improvements and determining the amount a third party would or could p � *
per square foot of land.
v
Section Six: Proposal Content
RESPONSES MUST BE IN THE ORDER AND FORMAT PRESENTED BELOW.
ADDITIONAL INFORMATION, IF DESIRED, MAY BE INCLUDED IN ITEM 7. THE
PROPOSAL IS LIMITED TO 10-PAGES IN LENGTH.
1. Proposed project
A. Briefly explain your proposal.
B. Please include the following items and how they relate to your proposal. If
exact figures and explanations are not possible, please estimate using
similar developments already in operation elsewhere.
1) Concept plan showing lot layouts and types of uses
2) Building sizes (square feet)
3) Total estimated market value of development at full build-out
• 4) An estimate of the build-out time for all parcels
5) When including SAC, WAC, park dedication fees, current special
assessments and future public improvements, what is the
estimate of the amount a third party would or could pay per
square foot of land?
6) List the estimated development fees and overhead expenses
7) Number of jobs created
8) Hours of operation
9) Traffic/parking needs
10) Expected noise levels
2. Firm/organization
A. How many years has your firm been established as a professional
developer?
3. Professional Organization
A. How many people are employed in your firm and summarize their areas of
expertise.
•
Page 4 of 6
4. Experience
• A. List some of the major development projects your firm has completed in
the Minneapolis/St. Paul area.
B. List projects similar in size and use to the project you are currently
proposing.
5. References :0-)
A. List references for your five most recently completed projects.
6. Scope and Cost of Services
A. List the additional work tasks that you think are necessary to prepare the
property for development.
B. Estimate the cost development, including land preparation costs,
development fee and overhead expenses.
7. Additional Pertinent Information
A. Provide any additional pertinent information about your firm or your
proposal.
8. Certification of Information Provided
• A. The information provided herein is to the best of my knowledge accurate
and can be accepted by the recipient first named above as true
representation of:
Company:
Address:
Title:
Signature:
Date:
Section Seven: Proposal Submission
Submit ten (10) copies of your proposal to:
Catherine Mehelich
Director of Economic Development
• City of Elk River
13065 Orono Parkway
Elk River, MN 55330
Page 5 of 6
Proposals must be received no later than 4:00 PM CST on March 1, 2005.
• Proposals must be submitted in an envelope with the words "Proposal for Brown
Business Park" clearly marked on the outside of the envelope. Information must be
complete. The City of Elk River reserves the right to reject any and all proposals.
Faxed proposals are not acceptable.
The City proudly welcomes and encourages you to visit our website for addition t:>. 4 `4
information at www.ci.elk-river.mn.us.
Section Eight: Evaluation
All proposals will be reviewed and evaluated by the EDA and they intend to select
developers for final proposals and interviews.
Thank you again for your interest in developing within our community. We look forward to
receiving information regarding your proposal.
•
Please direct questions about the Elk River Development and this RFP to:
• Catherine Mehelich Sid Inman
Economic Development Director Ehlers & Associates
City of Elk River 763-651-8500
763-635-1041
Enclosures:
• Site and aerial maps for the area
• Zoning Map
• City's development concept
• Public improvements/utilities located in area
• Estimate of future public improvement needs (Public Improvements may include
City assessment bonds)
• City Prospect/Inquiry Report 2001-2004
•
S:\Industrial Siting\Industrial Land Issue\Year 2005\Brown RFP 2005.doc
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