5.0. EDSR 07-11-2005 ITEM # 5.
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City
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MEMORANDUM
TO: Economic Development Authority
FROM: Catherine Mehelich, Director of Economic Development2 f'
DATE: July I I, 2005
SUBJECT: Northstar Business Park Development Update
Attachments
• Northstar Business Park Preliminary Plat
Recent Activities
Improvement Project Schedule and Plat
4111 In May the EDA provided comment on the feasibility study and recommended an option
that would prepare plans and specifications and platting for the entire area but only proceed
with underground utilities in the first phase. Upon the EDA's recommendation the Council
received the feasibility study and most recently held a public hearing and ordered the
improvement.
The preliminary plat and improvement concept have changed slightly from the EDA's
original concept in order to accommodate three prospects. The attached preliminary plat
reduces the improvement cost by removing the original cul-de-sac into the proposed YMCA
lot. The initial sale of three lots affords the EDA to undertake the entire improvement
project and cost.
Following is the remaining schedule for the improvement project to allow for fall/winter
new business construction:
• Council approves plans/specs for first phase utilities and July 18
authorizes advertisement for bids
• Planning Commission reviews preliminary plat July 26
• Council reviews and approves preliminary and final plat August
• Bid open August
• Council approves bid and awards contract August
• Construction begins August
• • Council determines cost to be assessed and sets September
assessment hearing
Northstar Business Park Development Update
July 11,2005 EDA Meeting
Page 2 of 2
• • Council holds assessment hearing/adopts assessment roll October
• Construction complete October
Public Infrastructure Grant— MN DEED
Last month staff informed the EDA of a grant for up to 50% of the capital cost of public
infrastructure from the MN Department of Employment and Economic Development
(DEED). The City Council adopted a resolution authorizing the application and certifying
the availability of its 50%match (to be provided by bonds and special assessment to the
22 requesting 495
EDA). The grant application was submitted Juneq g$ ,00
0 and was based on
the entire improvement project. Staff anticipates the DEED application review process to
take up to 30-days following submittal. Since that time DEED notified staff that the
application review would be on hold until the state government shutdown is resolved.
Prospects
The preliminary plat has been designed accommodate the three initial prospects wishing to
build the following described projects in the park this fall:
• 18,000sf precision machine shop expansion for approximately 2 acres, 42 jobs
• 32,000sf manufacturer for approximately 3 acres, 39 jobs
• 20,000sf medical tubing manufacturer and multi-tenant space for approximately 2
acres, 30 jobs
In addition, staff has received interest from two different prospects wishing to build
• 100,000-150,000 square feet manufacturing or office facility on the 9.29-acre lot. The
remaining 4.59 acre lot would accommodate an approximate 50,000 square foot building
plus parking,while the 13.11 acre lot would accommodate an approximate 40,000 square
foot building footprint plus parking.
Staff has been working with Attorney Tom Bray of Briggs &Morgan to prepare a purchase
agreement form which outlines the general terms for the sale of property within the park as
well as statutory requirements for the EDA's sale of property.
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