7.0. EDSR 07-10-2000 ITEM #7
¶1k'
y of MEMORANDUM
River Authority
Economic Development
0/FROM: Cathy Mehelich, Director of
Economic Development
DATE: July 10, 2000
SUBJECT: Proposal for Development of EDA Site
At Joplin Street
Issue
The issue before the EDA at this time is to review the proposal for
development of the EDA site located at Joplin Street from Gary Santwire,
Rivers Crossing, Inc.
Background
• The 4.36 acre site was purchased by the City from Country Ridge, Inc. (Tony
Emmerich) in December 1997. The source of funding was the use of excess
TIF funds from TIF District No. 5 in the amount of$198,750 ($1 per square
foot plus fees). Upon the City's closing of the transaction the property was
transferred to the Economic Development Authority.
The limitations on the expenditure of excess TIF funds from District No. 5
carried with it the necessity to spend the excess TIF funds prior to the end of
the year, due to the planned decertification of District No. 5 at the end of
1997. Since the source of funding was excess TIF, any sale proceeds would be
considered increment income and would need to be returned to the County for
distribution. The EDA has the opportunity to sell the property for $1 should
a qualified development proposal be received.. The current fair market value
of the property is estimated at $1.15 per square foot (190,000 SF) for a total
of approximately $218,500.
Development Proposal
Attached is a copy of the development proposal from Gary Santwire and his
clients: Russ & Linda Norha (Equity Management, Inc.) and David & Carole
Ripplinger (Track of the Wolf Inc.).
•
13065 Orono Parkway • P.O. Box 490 • Elk River, MN 55330 • TDD&Phone: (612)441-7420 • Fax: (612)441-7425
•
• Briefly, the development proposal requests the EDA subdivide the lot into
two approximately equal-sized lots. The north lot would then be sold for $1
to Equity Management, Inc. who is proposing to construct a 16,000 square
foot speculative industrial building. The south lot would then be sold for $1
to David & Carole Ripplinger for the construction of a 10,000 square foot
building.
The property is zoned for business park development.
Recommendation
Staff is recommending that the EDA authorize staff to proceed with the
development proposal which includes the following actions:
• Call for public hearing for the sale of EDA property
• Proceed with subdivision of property into two lots and draft purchase
agreements for sale of property
• Call for public hearing for granting business subsidy assistance to
Equity Management, Inc. in an amount over $100,000 and draft
necessary agreements
• Call for public hearing for granting business subsidy assistance to
David & Carole Ripplinger in an amount over $100,000 and draft
necessary agreements
Attachments
• Plat
• Copy of Development Proposal from Gary Santwire dated July 7, 2000
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4P.O. Box 57 • Elk River,MN 5 )441-8829 n
MN Contractor's License#20008561
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' As incentive for these buildings to be constructed and remain affordable in today's
4`r competitive markets of various cities,we are requesting the EDA, at the EDA's expense,
Aa �, ," A. Subdivide the subject property into two separate parcels of record and of
.. -, ;rill.: :,_approximately equal size.
" Deed the subdivided parcels to the building owners free and clear of any
encumbrances and at no cost to the owners.
k. ' ' '''''N'N'4-"tEn .---.; :.: "'...• .. 1,,,:‘,., C. Provide a 6"water main and 6" sewer main to each parcel at the Joplin Street
°property line.
- ! .'Provide access to the storm sewer system now located along Joplin Street N.W. and
' ° k 83rd Avenue N.W. as determined and calculated by the City Engineer.
F: Vacate the existing drainage and utility easement now located in the southeast corner
s of the subject property.
y� 3. The time line for this project is critical due to the time restrictions involved with the IRS
ro exchange uirement•` both parties are doin an exchan a For that reason,we
.,,prope-, g qg g
would need all required public hearings to be completed on or before the September 18th
',,A, City Council meeting.
. Unresolved concerns at this point are limited to the site soil conditions and the status and
.': A *.f7viality of the approximate 8,000 to 10,000 cubic yards of dirt that was deposited on this
x6 m the Orono Jake dredging.
f t a ` ter'aceess fees and the availability of 208 volt 3 phase
't s, e ter�ed
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<; • _ d like me to attend the EDA meeting this coming Monday,
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