7.0. EDSR 11-10-2003 Item # 7
• ,/j
City of
Elk -�-�
River
MEMORANDUM
TO: Economic Development Authority
FROM: Catherine Mehelich, Director of Economic Development
DATE: November 10, 2003
SUBJECT: Industrial Land Development Strategy- Update
Attachment
• Memorandum from Rick Martens, Elk River Business Park,re: Industrial Land
Incentives, Sept. 30, 2003.
• Map of Elk River Business Park.
• Background
The EDA directed staff to meet with the landowners to discuss their interest in a Master
Development Agreement for the joint marketing of the following business park/industrial
land:
• Elk River Business Park(East Business Park)
• Elk Path Business Center(West Highway 10)
Issues for Discussion
Sid Inman of Ehlers&Associates will be present at the EDA meeting to provide a verbal
update on recent meetings with landowners. The attached memorandum from Rick
Martens,Manager for the Elk River Business Park,LLC outlines a series of issues for EDA
discussion.
In addition,the following Industrial/Business Park activities have recently come to the
attention of staff:
• A majority of the Cascade Industrial Park(southeast Elk River) land is being sold to
one medium industrial user,requiring mostly land for outside storage. The
landowners withdrew a prior request for street improvements.
• Staff has received an inquiry by two brokers requesting to rezone the south half of
Elk Path Business Park for town home construction. Consistent with the city's
Strategic Industrial Marketing Plan, staff communicated to the brokers that staff
• would not support a request for rezoning Business Park/Industrial property for
residential.
MEMORANDUM
DATE: 9/30/2003
TO: CATHERINE MEHELICH,DIRECTOR OF ECONOMIC DEVELOPMENT,CITY OF ELK
RIVER,SID IMAN,EHLERS&ASSOCIATES,INC.
FROM: RICK MARTENS,MANAGER,ELK RIVER BUSINESS PARK,LLC
RE: INDUSTRIAL LAND INCENTIVES
Further to your memorandum dated September 3, 2003 and our subsequent meeting, I am
providing you with my response on several questions that you raised.
1. Your spreadsheet on our overall land price was missing the storm water management
and paving fee, which is only several cents per square foot, and hence I am using for
this purpose $1.60 per square foot gross. This would be for 2003.We would want to be
able to adjust this in two ways;
a. To reflect pay down on special assessments that we make on our bi-annual
tax payments.
b. To reflect a carry cost factor.
s
2. We would like to review the job creation criteria and would request that it be broadly
defined to include both full time and full time equivalent jobs.
3. We would like to exclude lot 1, block 1,which is the parcel on the northeast corner of
our business park,as we view this as a parcel having a higher value and use.
4. We would request that the city exclude the Brown/EDA property until more progress is
made in the marketing of the immediately adjacent Elk River Business Park. To be
collaboratively marketing the Elk River Business Park and competing with the adjacent
Brown property being marketed directly by the city does not seem appropriate.
5. With regard to use criteria,we would request that these be defined as broadly as possible
and include, not only manufacturing, but industrial service, repair, maintenance and
R&D. If you look at these kinds of facilities throughout the market area manufacturing
per se represents a clear minority.. Most uses will include a broad variety of space
functions including office and distribution so it becomes important how the use is
defined. A company could certainly be properly labeled a manufacturer but not have a
majority of its space allocated to manufacturing.
•
• 6. I believe from our discussion and your correspondence that you are looking at an
average incented price to the user of $0.50 per square foot. We would suggest using a
range of$0.25 to $0.75 per square foot and determine the exact amount on a case-by-
case basis,dependant upon use,jobs created,etc.
7. Before proceeding formally, we would want to be able to review the Master
Development Agreement that you are proposing, and it is our understanding that we
would have the right to opt out,and with that off course,lose the opportunity to use the
incentives.
Please let me know if you have any questions on these. We are appreciative of being able to
work with you on this and look forward to this being brought to fruition.
Cc:Tony Gleekel,Liza Robson,Kevin Maas,Jim Winkels
RVM/TH
•
•
of
.7,414 -
':; l':.• 3 '•,' 1 : •'. :- 0
Li
.1 .5
h - •
i 3 '''r .5
7.-
i
I Z ;.e
';;.
i.E.i
rt
`... -- a — .1
;• C 0
f
0
-- ii -- -1
i 1,...1::-:7';.
::.2.2 • .1.• '
9 V
1.... 3 ..E
:iLl : — t•2;_ 7 - ;
i I -;° i = ;;;"=7 i; Tr, — 2vZ'gg
..B.:•Z-5:
lir: li g' i E.7iIi:, s 2
- I ,..g -:;, F"..s.4 .. :•"'• -
o : E) • - -
,..•..5
Z.: ---" tii -- •
•
1 .
' -
1 .
r7 I _ _• -•• - - __. . _ -..- ••
. .._ _ .. . ..
3 .
LI.. , .• -
.. .. - - - . -- • - - -
CO :5
-- ---- --..._._ - ---• ' -- - -- - . ' -
5 <dem
:
On 700 PINA 1,070571.1010
- - - -- -
. -
• II(.10-111)0 ""°
-
1-4•1 ... I
_ _a 17.[
oot-51
1 '5.•. " ....v.)._ ----;` -eri71,111.)
. 8 1 .c,7 rowl• •
----7--,---T'T-3.---427-131 grnm7 wie.z•siv4sr, _ -
g
...--. I
......., - ..•1/ •
CO .
,.,
—/I
1#411 4C)
5.0.37 ---I
17
n7.; -'.- . I
(—
5 Z 1 J 0
I , I
i -- 1 00
a) - ' II cn
1 ! ,
-
: :
( g' .
I 4.
0 _ _ ; I 0
1 i ,CQ I 1 g
I g < •
.-
_ .
I`•) SI
I •,
1-r)
..... . I crl-
_ 7,-7 ?•••
"•:2' . i '.:r• 1 '', t'l • ;
.....,
I
— r, 1
/- - it,.• 1 r, - , z .
CE I 0 il .1 L__ 1 = 1.17;1.
Cr — — +
: . . .
1_,I
• 1
I I— g, ...,
cr) J.61.ti.fx)ta
CS4 , ' •..",/0 o.oct
r--
, N ,
I
a)
ie. I
it 12 a-
-•cm C 8. ..F-7 .
r.; .I.C..C.1305::.M 0 •:.? i
(.., i ,.-s s ; i • .
' ' I
,,,,.. 1 T.• .., ,
• •V N r---.--)L.- - I <
' t s • 1--."--1-----, I'..) r. -
, 1 1 )\• 7,;,., •...., , r: - •• ..?
:7, 1.i.7, - • :+42 I.', ,
- ;
;. \ li. 0
,. S--
.
•te'l ; ' ___ ,
. 5 g 6
\,„....._1-'''''t'-j- ...._i---1 - '4"3-.5•1:.z363.' - ---"-- " ^';• ...._ ...2.,s11
s,_ s. ;
,.. •J er
y 4 !,,00e:•- ___ ' %J.) .. .....',...''o'• -• 0.(r.IL.,005 -0910 7 2
70 — — 1 00." -- -- 002 1r—a•,`;,7•5 tr .
\ • \---•-•4-.0..,...
A.. (n -
6
r,-,6;..i. • 0 (;°i :.,)
• of •
c.)
C•2 4::C i .
.-
I i 3
z
.;E't _...• lip / 1 ,!. ,i: ' 3*1
'
1 _ -
• / ! ;;: '1:: Z E
cci •
.,
.rrp-/N. ;j co
LO , , .• / • iL
•'r _r N ) .,'''.-'\,
I ., _..1 `.:1
,.
\ " —....:-- ---
• 3i,.„,:?:
*0 4;\
704000703 ..'
. • - .0-", , . 1 C0017,- '00'Iva
-- cvdct
g -0
xr.:0,11.3037•1•104:0
...... _.a........ .-- ---- - - -...__ •- --- -
_
__ _-....- _
''''• ••- - • _... . .. .... _
. . __. ,....,.:
.......
•et:
- -