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10.1 SR 12-18-2023�, Elk s �- River Request for Action To Item Number Ma ror and Cinr Council 10.1 Agenda Section Meeting Date Prepared by WoYk Session DecembeY 18, 2023 Zack Carlton, Communittr Develo ment DirectoY Item Description Reviewed by Park Dedication Fees oe Stremcha, Assistant Ci r Administrator Reviewed by Cal Pormer, City Administrator Action Requested Revie`v the results of the land valuation study and discuss updates to the Park Dedication Fee. Background/Discussion Earlier this �Tear, the CityT Council authorized staff to complete a residential land appraisal stud�T for use in evaluating and updating the cityT's Park Dedication Fee. The appraisal studyT was completed in early December. Inserting the updated land valuations into the cityT's park dedication formula shows an increase to the fee. The Cityr Council last updated the park dedication fee in 2016 and modified the fee from a flat $3,712 peY residential unit across all densities. The update established a tiered structure for different residential land densities. The 2016 PaYk Dedication Fee and the updated fee, based on the Yecent appraisal studyr, are shown below. The appraisal stud�T and park dedication calculations are attached. Cash Dedication per Residential Unit Density Current Proposed Low Density (<4 DU/acre) $ 1,425.93 $ 3,065.73 Medium Density (4 to <7 DU/acre) $ 1,075.79 $ 4,207.25 High Density (> 7 DU/acre) $ 4,897.04 $ 5,945.38 Financial Impact Increasing the fee to reflect the increased value of developable residential properties will fund the inflationaryT growth of the cit�T's park improvements, which are a result of the growth in the communityT. Mission/Policy/Goal Create a robust network of park and recreation facilities to serve the Yesidents. Attachments ■ Draft Appraisal StudyT ■ Park Dedication Fee Calculations The Elk River Vision A 2a�elcolning co�nlnunity 2a�ith T evolutiona� y and spizzted T esou� cefulness, exceptional se�vice, and coln�nunity engagelnent that encou�ages and ins�iz•es pTo�pe�zty. rowEREo ar �I'1 �� Update�l• January 2023 MEMORANDUM To: Mr. Zack Carlton, City of Elk River From: Jason L. Messner, MAI, CRE, and Jason Oberhamer, MAI Date: November 22, 2023 Subject: Average fair market value of un-platted residential land At your request, this memorandum is intended to summarize our research and analysis of residential land sales proximate to Elk River in order to arrive at an indication of average market values for un-platted residential land in the City of Elk River. It is noted that this consultation is not intended to be an appraisal of any particular property within the City of Elk River. Rather, the function of this memorandum is to provide guidance to the City in determining appropriate park dedication fees. � � SCOPE OF WORK � The following data and information pertaining to the review of park dedication fees have been examined. • Reviewed City of Elk River zoning and land use information • Reviewed Minnesota Statute 462.358 Subd. 2b. regarding park dedication fees • Investigated comparable high-density, medium-density and single-family residential land sales • Completed statistical analysis on observed market-transacted sale prices 22382 -City of Elk River Land Analysis November 20, 2023 Page 2 ZONING Single-family residential development in the City of Elk River is allowed within the R1a-R1d residential zoning districts. However, the R1a and R1b zoning districts allow single family residential development without public utilities. Alternatively, the R1c and R1d Districts are intended for land that is, or will be, served by municipal sanitary sewer, storm sewer and municipal water. Potential density in these areas is expected to be less than four units per acre. The land sales summarized on the following single-family residential sales grid are considered to have zoning and potential uses consistent with the R1c and R1d zoning districts. Alternatively, medium-density residential development in the City of Elk River is allowed within the R2 and R3 zoning districts. These districts are categorized as the Two Family Residential District and the Townhouse/Multiple Family Residential District, respectively. Development densities for these districts are expected to range from four to seven units per acre. The land sales summarized on the following medium-density residential sales grid are considered to have zoning and potential uses consistent with R2 and R3 zoning districts. Lastly, high-density residential development in the City of Elk River is allowed in the R4 and PUD zoning districts. These districts generally comprise the high-density residential category, which includes multi-family development such as apartments and senior housing, with densities over seven units per acre. The land sales summarized on the following high-density residential sales grid are considered to have zoning and potential density similar to the R4 and PUD zoning districts. Due to the differences in potential density and the corresponding values perceived by the market, the single-family, medium-density and high-density comparable land sales are presented on separate summary grids. The respective land sales are considered to have zoning and potential densities consistent with the corresponding residential zoning districts in Elk River as stated previously. Lands guided for residential development in the City of Elk River are identified on the City's Land Use map on the following page. As depicted on the City's land use map, the majority of the land available for development is located in the eastern portion of the City. PATCHER ME SSNER Valuation Counselors 22382 -City of Elk River Land Analysis November 20, 2023 Page 3 r �� "� .�_ � � � � 44 - � : -f - ��: — �. - _ 1 ■I � � I �� I■ � i118 fJf � : ' Q�f}.� Y... :W. R .` '� , ' � . �3Yfi wr. � � � � 'a �� I ��a� �� I �<< ��,f', ,�_ r , � - .: � - h �� :�.*��. �°` �`' �Ill�lf%:: ■,'� _ �' �, F � � � � � '�� . �_., , � �� ; ��''� �� _—�, �'� �, �� +� �� _ - � I � �, ��_, _ �'��,;� � � � � ,. �, ,�; �3 ,1 � � �i �;�� ' �' , ��,�I�i� . ,. �r I ��W��°=�' ��-�� .. , .rt�i �''' - 'tc � .�� . . �. � I �Ei��'�� .�r��+ �. ��•� � i��:,�t. •� I .� y � . ..� r�i `l�� , '�e,� �ey - � f � � ,5 v x.�` �71I'� !I i'� -� �ra' � ��,��'. ��p?.�� ,� �� i �, a M! '.l... � __..J� �� .� ��iL' _ . � %�� : � 1 + ' � � A � �$!.• `. . \ �y � .. . �� — � x � . � f 3 � J� i� I�� _' . �. � ��.�� :�, ,� � � srr� �g ��Li ��la'��:ii ��r91_� ;�,. �,�'tiZ �; ' �� i �.`.7..��; �� _ � � �f � � �_ :.'�� !e _,�� .�..-� *jj�- [''� �'S� �� 'r4�� f�'N�I ^� . S."��.� t �-� 1 _ . � � a� e r : vcr� F'�-r�: 1. L;' '� � � ; + �e ;� \ �`, s-,. ��e�s. _ �� i�'� �� b�' ��`� 9�1 *, w� ■ $� � Mu� '��v � J' � � � �� :�i .. � �p:ed��lf' � f� r � � � '! �' ` .��' ! 5 .`��.� . ��r ' . �,�p'3f .�� r: � ■C..{;.. y r��. r� i�*� � , ■ ^#.� � ;. t.:: .:� �� .. �� . ; - . - � �• : �,:�; �1 ��3�.fyk� - , iyr_�..�—��.� ' � , f� '— i8 �Y� — r� —i� �.9:�� _-�. � ��,� � � �_•� � `� � �- a - ., . �� '�' f�e .��. _ � � — — - — — �'9�I�� . i . . -. 22382 -City of Elk River Land Analysis November 20, 2023 Page 4 � 0 � � � ��, . _ � 1G 5`;i �__ ' ixi * I � -- i -----__'-'-_- -__,__ � � � i � � � ' �' ' � � ---- - � � �p� I � �� i � � � : " y - p-�,. � � . . ...-=�3 . . �1 U— �"�, tipr ^4tvrz,�,r ...�� a r: i ; �_ _ , . -�� l.. �`�.:��3 � . : �� _ aer — . � e, _. Land Us�e Pl�rrl LAND USE CAiE{'�,dRY Rsral P.esid�tial Tradi�id Sir��Family R�sideroal Hiwed Reside�l �Itihnif � n��a u� FJe� C�mer�l � Fi�rw� 6�i�s ■ ��ess ra.k � Ind� � grics S �Pen 5�ce � RLIir15e[n�Pt&lic ,4grinlwe 4lulitles & Railma�� --� �� u� s�,r� �i i i i ra�sr,wr _ �� -�F-N.-� -��arxrnr.exw--,. � � � ;� ; , ____, ` y� � t�rsawYr,nr � .._. y ' � 5 � r� � \'4 1 � . 1 v � . i :., ! r � 1 } 1 f� ..::�.. � � q5 r � .: . e i `---------�-------; � ".. � r! ..� `a"�+ir"`g - i • � �a � �� 'Q. � � ,� �_� ./ � ,. � .: ' '-----------r- , :: i � ,} — -:_r,�--* i �--`-� " "— --` �' � r ti `!�: i f ` t �' � +� �� ' i � � r + y . � + } � � I � i � � � , � � , � , � : , � t � � � ,----- i � ----�------ -,�------- , ; ; � ; � , � �� ; � ' �; � " , � I � _<.. � � 33 ' �'�i� ' µ� IL�Ii �— �� _ _ \ _ 1 i' � i 1 A::9►�{"� _ ��„''. �4'•, I' �� i � 4 ❑ I �.� � e i �. � �'. � 1d ; � �� e , ,��, n �, ; ��,� , �� o ,.. � u4w�*' ts�s , ,-.: _ ,� , a - ,n- y� .. i Qi � �., ��- i i � � r a PATCHER ME SSNER Valuation Counselors 22382 -City of Elk River Land Analysis November 20, 2023 Page 5 PARK DEDICATION FEES The City of Elk River is reviewing its park dedication fee requirements applicable to new subdivisions to ensure consistency with the State's statute. The purpose of this memorandum is to aid in determining the need for updating the City's market value estimates of residential land. These land use market values are vital for establishing cash fees in lieu of park land dedication. State Statute Minnesota Statutes 462.358, Subd. 2b. enables the City to require dedication of a portion of a subdivision to the public for parks, recreational facilities, playgrounds, trails, wetlands or open space. Minnesota Statutes 462.358, Subd. 2b. (c). further requires that there be an essential nexus between the dedication of land or payment of fees based upon the City's purpose for the dedication and that the dedication or fee must be roughly proportional to the need created by the development and, where fees are to be dedicated in lieu of land, that the fee be "based on the average fair market value of the un-platted land for which park fees have not already been paid." DEVELOPMENT LAND SALES The purpose of this consultation was to investigate land sales in order to develop average fair market values of residential development land in the City of Elk River. The average market value is necessary for the City of Elk River to complete their review of park dedication fees and determine if modification of the current fee structure is needed. The sales comparison approach is the preferred, and most common, technique for developing a market value estimate for land. Typically, the sales comparison approach compares vacant land sales to value a particular property. However, in this case, there is no specific subject property. As such, no adjustments are made to the comparable sales. PATCHER ME SSNER Valuation Counselors 22382 -City of Elk River Land Analysis November 20, 2023 Page 6 DEVELOPMENT LAND SALES In general, the sales selected for analysis are un-platted land, or land defined as outlots reserved forfuture development. However, in some cases, previously platted land is included that was replatted for a higher density use. As a group, the comparable sales are expected to indicate a range of unit values established by informed buyers and sellers in the marketplace. The average market value can then be utilized as a reasonable estimation of average fair market values for land in Elk River, thereby meeting the guidelines of Minnesota statute. Sales of land in Sherburne County and surrounding areas were researched using the eCRV database, Northstar Multiple Listing Service and the REDIComps database. Information has been sought on recent sales of parcels that are similar in terms of potential use consistent with the residential zoning categories within the City of Elk River. The search for development land sales focused on un-platted land and outlots in outer-ring suburban areas that closed after January 2019. It is noted that the regional market has a limited number of recent sales of un-platted medium- density or high density residential to be considered. Therefore, the search parameters were expanded to include the broader metropolitan area. Further, the unit of comparison used for each of these property types is price per acre. In addition, we have estimated the developable area for each sale and have provided a price per developable acre indication as well. The sales used in this analysis are presented on location maps, followed by summary grids, and statistical analysis. PATCHER ME SSNER Valuation Counselors 22382 -City of Elk River Land Analysis November 20, 2023 Page 7 , �,,:!, - ��nti�qc . �k�, F'r nccl_�n r-{_� ��Y Crrcck iimricrrti.�n �� P.;e��_�:k — ��'�n'�L,r •1[�r_. :'�1e�' Pc� nl �t�nlr•. f -' .:.,'t::'1 `.!�.' '� ,� li....1::li�;)-;: I`•�.di 'I �,. � It;,ii': �r��•,•;n (� Hl.��c:� ..; �..•_{:,-..� 3l �f.3fl�Cl� �711'i. •yi �'�r' �.11"JI� . ' _Jd � . ,,..... E q Lakc �� r Cak �ro�•r�� @,ailc�, � � I '.:;.ttJ „ ,:'ic Clk h�r � � �1._�'a�� f�-�.� ..� � P,�msc�� . Ua,;tr�n I �iro _ �Ib.�rCa•� Ardo •,,r . � ui SI �i Cf3i'� � r,:-r.ka F,�-:t:� crs . �€ � �, ��.. o I?��.,, � � .., ,1-. I i:..� � Cys�e� �'�`1 _'_ _ i4°� � F.�_•ckf�r� erockl}'r Park , .�. r� � i � rv4aplc Grc�.e Q SP. �. 3,: � - I',,. .r iP:• i� .. .55 '� rt....__ .. � .. I4S�� Il'a � "� � ;� PymoUlh F��• e,`'r Crcr��_• Y'iayzata � �11�1��1� '-'J ;':cri��a;n St Louis Fark �= 5t PJu -�.:i fvi �, u r d � � �J'nr��lanka ,rrr• � _ ., '. , _ J, , _ '.] �-t E�_r,,i�if,;s��.s Cx��els or � . r, -r �j ` C� na R cH �ld �.� � � � .� , , IC:Ofl7 Cder Prairie '�'"' lir. _ : i 3CGf11 ; � Sl"'rc E� ocm.ngic�n � _'� '� � -- _ �, zj �,''i � i,;- ,Y -; ,— . � �.^'�) I .:c1. Sh.a k n r„�-= � � - . . .. . , 1 k_ ._.. . .. .. .'..t ��. .fl-'. � I -I COMPARABLE SINGLE-FAMILY RESIDENTIAL SALES LOCATION MAP PATCHER ME SSNER Valuation Counselors 22382 -Gity of Elk River Lentl Anelysis November 22, 2023 Page 8 Comp. Location Buyer Oa4 Gross Oevelopable No. (Intentletl Use) Seller of Sale Acreage Acreage � xx lth Sheet North Graeksitle Hollow, LLG �/ 2022 40.22 AG 40.22 AG Montrose, MN KelerGons�ruction 8 Holtlings, LLG 2 XXX 40N Strse� NE JP Brooks, Inc 5/ 2022 2�.�8 AG 2�.�8 AG Buffala, MN LHF, LLC 3 9�33 GounryFoetl �B SE JP Bmoks, Inc 3/ 2022 45.50 AG 45.50 AG Delano, IvIN GHT Equipment 4 LeverSt NE 8125th Ave NE Gepitel Tiust Development 8 202� �4.24 AG �4.24 AG Blaine, MN Charles 8 Kathleen Marohl�, Michael Klaas Total Price Per Price Per Oensity ning Utilities SalePrice GrossAcre OevAcre UnitslAcre Remarks F-1 Aveleble $550,000 $�3 8�5 $�3 B�5 2.0 This prapertywes purchesetl forthe constiuction ofen 80�ot single femilysubtlivision nemetl Greeksitle Hollow. PUD Aveleble $420,000 $�5453 $�8830 �.9 ThispmpertywespurchesetlTorYheconstiuc�ionofAr�or Meetlows, e 52�ot single fem ily subtlivision. F-2 Aveleble $�,800,000 $35, I85 $35, I85 �.9 This pmpertywes purchesetl forthe construction of Preine Ritlge, en 85�otsingle fimilysubtlrvision. DF Available $960,000 $fi�.416 $61.416 2.0 -onetl Development Flex antl guitletl Low DensityResitlential, this propertywes purchese for�he construction ofe 28�nit esitlen�iel subtlivision celletl Julien Meetlows, currentlyuntler nstruc�ion. 5 305th Ave Derek & Michon Nelson 8/ 202� 4 25 AG 4 25 AG A Aveleble $200,000 $4� O58 $4� 059 � to 3 Guitletl Resitlentiel Low Density Princeton, M11N Dale 8 Alice Nortl�y 8 54� FrverFoetl NE JP Bmoks Inc. 4/ 202� 82.80 AG �4.�� AG SFF Aveleble $�,400,000 $�6 948 $�8 88� 0.8 This pmpertywes purchesetl forthe 68�ot Phese 2 ofNe Henover, MN Mereh, Go. Rivers Etlge subtlivision. Phese � wes SB lotr�, 250 totel lots re plannetl. � Wes�ofGountyFoetllB USHomeGorp 3 2021 �1520AG ��520AG RSF2 Aveleble $8,�35,�20 $53256 $53256 3.� ThispmpertywespurcheseaespertoftheTevereresidenbel Corcoran, MN Wessel, Theis, Nay-Rox LP tlevelopment. which is to be tleveloped in ten phases overthe next fen ysers. 8 FellonAveNE&85thStNE HevenRitl9s,LLG 6/2020 2�B��AG ��6��AG R-� Aveleble $2,800,000 $�28�� $15840 �.5 ThisersewesennexedintotheGdyofMonficelloespertof Monticello, MN Denn Family, LLP the purchase. antl zonetl R-1. The tlevelopment is nametl Haven Ridge.. antl is plannetl for 3351ots, �6 of which are plennetl (ortownhome lotr. 8 ��5�880thS�.NE OtseqoLentllnves(ments,LLG �2/20�8 20854AG �8854AG A-� Aveleble $��45,300 $8,450 $8,358 2.8 WhilethispropertyiszanetlAgnculture,guitlingisforlow Otsego, MN Shemmck Development, Inc.B tlensity entl low tlens�lylerge lot ur�en resitlenYiel Otsego Imestment, LLG tlevelopment. The buyerintentls to stert cans[iuction on the firstpheseoftlevelopmentin2020. Given�helergesizeofNe pmperty.. a long tlevelopmen� horizon is expectetl for ompletion. �0 xxx Frenklin Ave. W Este[e Development Garporetion �2 / 2018 �5 �4 AG �5 �4 AG F-2 Aveleble $500,000 $3� �68 $3� �88 �.8 This is Outlot B ofHighlentl Ritlge 3rtl Atltldion. There ere �9 Delena, MN Jerry J. 8 Stephenie Neisen lots in �he frst phese, with en etltlitionel B lotr plennetl leter. �� xxxTylerSt.NW JethmGerpenter �0/20�8 �22AG �22AG F�c Aveleble $�5000 $8�4�5 $8�4�5 4.8 ThepmpertyhesbeenplettetlinfoBlots,esTmu�FitlgeRun. Elk River, MN Priscilla R. Ontlracek �2 �22�260th SL NE D.R. Horton, Incavlinnesote 3/ 20�8 42.5� AG 28.20 AG R-5, INS Aveleble $1,000,000 $23 48� $34 24� 2.4 This pmPertyhes bsen pletted es Megnolie Lentling 2ntl Otsego, MN Meplewoatl Gompeny Addtion. One trect of epproximetely �3.15 ecres, tlesgnetetl es Outlot 8, w netl INS-Institutionel Distnct. The eintleris zonetl RS. Resitlentiel Single entl Two Femily Distnct, entl wes tlevelopetl with 88 singls-fimily lotr. �3 xxx Ulysses St. NE FenqerDevelopment, LLG 2/ 2018 5 28 AG 5 28 AG DF Aveleble $400,000 $�5 �58 $�5 �58 4.2 The sellerpurchesea Nis lentl entl en etljoining tiect e month Blaine,h1N CedarPointApartments,LLC earlier.Thesellerretainetlthemul�i-familylantlantlsoltlthis This lentl es been pletletl es the DesrPontl su�arvision, which Mean 22382 -City of Elk River Land Analysis November 20, 2023 Page 9 e , : , i: �� . „ _, - ._ rr :: k. .' i�2 �: �. � a;. �;, .. . � ` i -;�� I I . . �: .I � '�.:1 I ''. i�a.� Cd�, uf0��i�_ E� �� 3kc �� .a i l c'; I:_, c' J � J ' �_d!c Clk�:r � - 0 � ..�� F'arrs,,,� - I �i.. Da,; t:ar � - ��Sc Lakc Alherl,; �^ � :�rcl � 5[ �a� cYa+�l +irrka p,,,� [.�f L a u .. I,. � �L'� � C�s�� _ �i 6rockl�Fr Park Rc�ckiord rridrr , f�Saplc Gro�.�c � ,I... r� , � fs,�s Brighicn _ 'ss Ard�r i �;:I�nn Fv�e�� n� �� F ��m�ulh , r, ,,, . .. ,. �.::�.`:Z�L-3 y�� QIS� Sl L��u�s Park �-. � �;�; � h.; � .i_i r d �1 I�S nnclonks s: . I� ,..n•a-.:; � S[ E.c;nrfur,�s Cxccls _.r a (� [dn� Rchf�Id ��/I�lOfld �-_�` ''�` ^ .:;Vr1713 Cder Prairic 8 rcm nglon (� � .. 7ii7 _ A� � � �,hakoF�e_ ''�, CI-�sk� i ,;l C��,q�. �;.�j I:. n . -- :if ICf Cj C8f':C'f � - ��i��- .. , l�l r..... i . . i-... . 'r L'% •:;r L3kc [,'� _ i�=/ � _ �`.-d I �.:�._�� _ . '� '� COMPARABLE MEDIUM-DENSITY RESIDENTIAL SALES LOCATION MAP PATCHER ME SSNER Valuation Counselors 22382 - Cih� of Elk River Land Analysis November 22, 2023 Page 10 Comp. Location Buyer Date Gross DevHopable Total PricePer PricePer Datsity No. Intentletl Use Seller of Sale Acr� e Acr� e Zonin Utilities Sale Price Gross Acre DevAcre Units/Acre Remarks 1 191120thAve JeremyDanielson 9 2022 5.37AC 5.37AC R-0 Available 5230,000 542,831 542,831 5.8 ThiswasthesaleoFremainingoutlotsForatownhomeproject St. qoutl, MN HabitatFor Humanity begun by HabitatFor Humanity. The outlots were approvetl For n atltlitional 31 units. 2 8013150th Place NW US Home Corp 10 2021 34.17AC 23.44AC RJ Available 52.600,000 y76,090 $110,922 4.0 Ramsey, MN ThriveM Charitable Impact 8lnvesting Zoning allows For 15 unit per acre. This propertywas purchasetl Forthe construciton oFttie Lynwootl SubtliNsion, which inclutles 12 single Family homes antl 125 attachetl townhomes. Approximately 10.67 acres are consitleretl wetlantls, leaving a tlensity on the tlevelopable acreage oF 5.8 units per acre. 3 ztx 229th Ave NW Dillit Khosa 9 2021 821 AC 6.71 AC R-3 Available 5375,000 $45,676 355,887 8.5 This property was purchasetl ForFuture expansion oFthe St. Fmncis, MN Anoka Property Holtlings, LLC Meatlows oFSt. Frencis townhome community. Density guitlelines allowFor 7-12 units per acre, atthough ttie city intlicatetl that a max oF70 townhome units woultl likely be approvetl onthe site. 4 4585 220th St W Rivers Etlqe Development, LLC 9/ 2021 59.00 AC 42.00 AC R-2 Available 52,700,000 $45,763 $64,286 4.4 This propertywas purchasetl Forthe construction oF 258 Farmington, MN Susan 8 Fretlric Reff, Jemltl 8 Conia Burco townhome uni6 in Rivefs Etlge, afterthe property re-soltl to US Home Corp for 54,386,000 with entitlemeMs. 5 zrzr 165�h St W DR Horton, Inc. 7/ 2021 6.03 AC 6.03 AC RS-3 Available 3825,000 5136,816 $136,816 8.6 This property was purchasetl Forthe construction oF 52 Lakeville, MN Hosanna Church townhome unit� 6 CountyRoatlJ885thAveNE FenwayLantlCo. 5 2021 26.96AC 26.96AC DF Available 53,375,000 5125,185 $125,185 9.6 ThispropertywaspurchasetlFortheconstructionoFa107unit Blaine, MN Grechetlk Blaine, LLC townhome tlevelopment, along with a 152-unit multi-Family project, For a total oF 259 units, at Grovelantl Village. 7 Parrish Meatlows Tamareck Lantl - Parrish Meatlows LLC 5 2021 24.23 AC 24.23 AC R-0A Available $1,350,000 $55,716 $55,716 5.3 This propertywas purchasetl to tlevelop Parrish Meatlows. a 96 Otsego, MN Kevin LeFebvre unit townhome project on 18 acres, built by Lennar. A 5-acre outlot remains. 8 18100GIacierWay GlacierCreek,LLC 10/ 2019 23.00AC 23.00AC RM-1 Available y1,800,000 $78,261 $78,261 5.0 ThispropertywaspurchasetlFortheconstructionoF116 Lakeville, MN Robert 8 Davitl Donnelly townhome uni6 in Glacier Creek. 9 513-515 Elm St. Jeritl J. 8 Katnna M. Atlickes 7/ 2019 1.69 AC 1.69 AC R-2 Available $140,000 882,840 382,840 4.3 to 6.7 The base tlensityFor �his zoning tlistrict is 4.3 to 6.7 uni� per Monticello, MN AIIenJackson Properties, LLC re, tlepentling on the type of resitlential housing. 10 18461 Twin Lakes Rtl. NW Pines at EIk River, LLC 5/ 2019 6.33 AC 6.33 AC PUD Available $317,777 550,202 550,202 6.2 This site was ativertisetl as potential metlium tlensity resitlential EIk River, MN Estate oF Ronaltl L Guenther lantl, but zonetl Business Pai7c. However, �he City has approvetl a 39unittownhome tlevelopmeM antl rezoning to Mean 569,967 577,912 22382 -City of Elk River Land Analysis November 20, 2023 Page 11 , ,. ;,i� 8�rylhc „ . . � IJan.in _�ke I ,,i , L no-aoi�d � C"., Cak �ro•n� ._akc l�� en;yr.n.i ,.i �.aile�: �r� 3c'hel �F. Clk Rit�er � C' reac� ��`1� ron�s' � is : Ramscy , , .:i,.- ii=; Gautar I ;,� . . - •; l. A r d o.,.,., ,.' •�� krcka F -:qerr_. �'9t �`� Et elnc I J/ � I I — � ' �. : °�} � Y ' �. Cs�� - faa� 6rcckl}'r Park v �r, � -; �.i��.-,� � r��.� ��y � - �vSaplc Gro�fc Shrrc•vie'.•: Eear Lakc P<ei'� 8�i9f7trn �� Rrdcr k�dls �wic� nd [�! i"_1 �� F� ��m�uth F:: � .., ; � s,---s ! :�I:;. Crcn� ��'�34'231� �, Minneapal�s ',�� at Lc•uis Park r�l PtiU� P/ i� ., � a:, _. Fvi�,urd ��},7 � ..� h�inn�fqnka _. ' '': ,�. rl{,. i: -' � i f• r� E Cx�_el� cf _. Cti na r _. �-,: r , .. rv, -' ' ' Cder Prairic � � li�l. ;;i::s - 6 �cm ngton '��,�'- �� : ,. :r:i -r�; . � �a°i - � .,i�,,, 5hakap�e -- CFask� t'-,'� _.. . . . . � ._G'v3^.� ��Jfll�l.��f . _ � __ i 1 .. — ! '�_:C ...i . � i_ � :�_:f�{�c:; — i.f£�f�ll f'ilkCf � .. .� �fe�., li TcwnsFip I .ob ,�� -. .. , . . . "' I u � �_ . e� COMPARABLE HIGH-DENSITY RESIDENTIAL SALES LOCATION MAP PATCHER ME SSNER Valuation Counselors 22382 -Ciry of Elk River Land Analysis November 22, 2023 Page 12 Comp. Location Buyer Oate Gross Oevelopable Total Price Per Price Per Oensity No. (Intentletl Use) Seller of Sale Acreage Acreage 2oning Utilities Sale Price Gross Acre Oev Acre Units/Acr � 8th Ave S 8 Pine Ritlge Rtl JPB Lentl LLG 8/ 2023 4.39 AG 4.38 AG PRD (R-2) Aveleble $350,000 $�912� $�8 �2� 8.� Zimmertnan, MN ShITATown Cen(er, LLC 2 804GresksitleDrrve SettlerGommonsApertments,LLG 4/ 2023 2��AG 2��AG RS Aveleble $305,000 $��2,548 $��2,548 �4.8 Buffelo, MN Bjorklend Buffalo Holdings, Inc 3 23465 St. Francis Blvtl Vista Praine at Ea01e Pointe. LLC 8; 2022 1�.16 AC 11.�6 AC BPK, R-2 Available $800,000 $45.045 $45.045 1.8 St. Francis, MN Elizabeth M. Hukee Tius� 4 8620GhestnutSVeet TonYEmmenchGonstruction 4/ 2022 4.48AG 4.48AG R4 Aveleble $345,000 $�683� $�883� �6.0 Lino Lakes, IvIN Lino Lakes 12, LLC 5 ��B��FrsnkTortPeMweyNW KellerEeertmenPmpertiesX,LLG 8/202� 23.82AG 23.82AG PUD Aveleble $�,000,000 $4�882 $4�882 28� St. Michael, IvIN Douglas Carlson Developmen(, Inc. 8 25��34thStreetWes[ BirchGroveEstetes,LLLP 3/ 2021 �O.��AG �O.��AG R-2 Aveleble $850,000 $840�5 $840�5 �4.2 �immertnan, MN Ivlichael J Leuer, Moen Living Trust � �42�SJoppeAveS SummersRitlqeofSeveqe,LLG 1�/2020 3.�8AG 3.18AG PMD Aveleble $800,000 $25�,5�2 $25�,5�2 �2.6 Savage, MN Net Lease Development, LLC 8 88� V�ste Blvtl. MVVF PmOerties, LLG 9/ 20�9 8.80 AG 2.80 AG RS Aveleble $54�,62� $8� 530 $2�0,623 28.3 Waconia, MN Cityof Waconia 9 SWGHwy8�0/GSAH41 Coon Rapitls, MN �0 NWGDotltlBlvtl/GetlerAve. Lakeville, MN 1� 56� Elk Strest Belle Plaine, MN �2 �8�3�TeylorSt.NE Eest Bethel, MN �3 ��45��BfhAve.NE Blaine, MN GoonRepitlsAHI,LLLP 8/ 20�8 4.82AG 4.82AG Gaughan Lan� Incorporatetl Gantinente14�8Funtl,LLG 8/ 20�8 �5.45AG �5.45AG The State Bank ofFari�ault Belle Gourt, LLG �/ 20� 8 4.03 AG 4.03 AG Metthew's Roofing 8 Renovetions, LLG Eest BeNel ALF Pertners, LLG 2/ 20� 8 8.0� AG 8.0� AG OurSavior's Evangelical Lutheran Church GetlerPoin�Apertmen6,LLG �/20�9 B.OBAG 6.OBAG Joel Wlliem & Susen Jene Petersen PORT Availa�le $1.125,000 $243,506 $243,506 8to30 G3 Aveleble $4,000,000 $258,800 $258,800 �8.8 R-1 Aveleble $325,000 $80645 $80845 CC Available $3�5,000 $62396 $62396 DF Aveleble $804,500 $�32�58 $�32�58 �� 9 �� 8 22 8 �pmvetlfor40townhomelotr.s entlweterstubbetlto e. This represenfs fhe fnel phese ofre fully built out town �me tlevelopment. is pmperty wes purchesea for �he construction of Settler �mmons Apartments.. a 40-unit apartment complex. is pmperty wes purchesetl for the construction of e � 38�nit . ving fecility celletl Viste Preine of S(. Frencis. �nstrucfion begen m 2023. is pmpertywes purchesetl far�he cans�ruction ofe 12unit .nior muhiJemly project e� Northpointe Gertlen Estetes. is pmperty wes purchesetl to construct Town Genter et St. �icheel epertmenfs. The percel wes split, with 208 units instructetl on epproximetely 1 ecres so fer. is pmpeRy wes purchesetl for the construcfion of Birch ove Estetes, e Tour bultling, � 44unit multifiem ily complex. is pmpertywes purchesetl forthe construction ofe 40unit .nior multi-fam ily project cametl NorBella Senior Living. is Wo outlots in the LegecyVillege et Weconie ibtlrvision. The totel lend eree soltl �s epproximetely 8.8 � s�,hawever.tluetaseverelpontlsentlwetlentlstheuseble ee is limitetl to eppmximetely 2.8 ecres elong Viste Blvtl. ;porletlly.. the Ciryhatl apP��etl a seniorhousing pmlect. �ning ellows e ienge of 8 units per ecre to 30 units per ecre. iis pmperty is Outlots G entl D of Gherry H�qhlentls Thirtl. ie pmpmsetl Development plen is �3 builtlings, wi�h 20 rentel wnhome units per builtling, for e totel of 280 units. irchesetl firthe construction of two epertmen� builtlings leling �2 units nemed Belle Gourt Apertmenfs. thrsestory, l0unil senior living camplex is plennetl for this ocatetl sale price. CetlarPoint purchased several Is for $�,204,500 entl sol� the singlefiem ily tlevelopm ent idemonthlaterfor$400,000. Thissiteistheremeintler [ained by Cetlar Point ApartmenFs, LLC. Meen $��,8�8 $�25,430 22382 -City of Elk River Land Analysis November 20, 2023 Page 13 SUMMARY OF FINDINGS It is important to note that the comparable sales have not been adjusted to a specific subject property and not al I of the comparable sales presented herein have been verified. Further, the indications of price per developable acre are based on our estimates of developable land. Based on our investigation, unit sale prices for single-family, medium-density and high- density residential land on a per developable acre basis are summarized as follows: Single-Family Residential Land Range: Median: Mean: (Average 56.1 1 Acres with a Density of 2.4 Units per Acre) 2021-2023 Sales Mean: Excluding Outliers Sales 9& 13 Range: Median: Mean: (Average 54.23 Acres with a Density of 2.5 Units per Acre) Medium-Density Residential Land Range: Median: Mean: (Average 16.58 Acres with a Density of 6.4 Units per Acre) 2021-2023 Sales Mean: Excluding Outliers Sales 1 and 5 Range: Median: Mean: (Average 19.30 Acres with a Density of 6.1 Units per Acre) $9,356 to $75,758 per Acre $34,247 per Acre $37,210 per Acre $36,470 per Acre $13,675 to $67,416 per Acre $34,247 per Acre $36,238 per Acre $42,831 to $136,816 per Acre $71,274 per Acre $80,295 per Acre $84,520 per Acre $55,716 to $125,185 per Acre $71,274 per Acre $77,912 per Acre PATCHER ME SSNER Valuation Counselors 22382 -City of Elk River Land Analysis November 20, 2023 Page 14 SUMMARY OF FINDINGS High-Density Residential Land Range: $41,982 to $258,900 per Acre Median: $84,075 per Acre Mean: $129,278 per Acre (Average 8.09 Acres with a Density of 16.8 Units per Acre) 2021-2023 Sales Mean: $73,369 per Acre Excluding Outliers 5 and 10 Range: $45,045 to $251,572 per Acre Median: $84,075 per Acre Mean: $125,430 per Acre (Average 6.0 Acres with a Density of 15.5 Units per Acre) PATCHER ME SSNER Valuation Counselors 2024 Park Dedication Calculations Assumptions 2.82, 1.80, and 1.58 Average Household size for City of Elk River 0.03 Acres of park land per residentd as identified by the Parks and Rec Master Plan $ 36,238.00 Mean per acre value of low density residential land $ 77,912.00 Mean per acre value of inedium density residential land $ 125,430.00 Mean per acre value of high density residential land Land dedication requirement Class HH Size Park/Res. Land Dedication Requirement Low Density 2.82 x 0.03 = 0.0846 acres of land per residential unit Med. Density 1.8 x 0.03 = 0.054 acres of land per residential unit High Density 1.58 x 0.03 = 0.0474 acres of land per residential unit Cash Dedication required Class Land Req Land Value Cash Dedication Requirement Low Density 0.0846 x $ 36,238.00 = $ 3,065.73 cash dedication per residential unit Med. Density 0.054 x $ 77,912.00 = $ 4,207.25 cash dedication per residential unit High Density 0.0474 x $ 125,430.00 = $ 5,945.38 cash dedication per residential unit Park Dedication Comparisons Anoka $ 2,543.00 Per Dwelling Unit - all densities Big Lake 10% percent of land value Dayton $ 4,283.00 Per Dwelling Unit - low density $ 2,980.00 Per Dwelling Unit - high density Maple Grove $ 4,156.00 Per Dwelling Unit - low density $ 3,325.00 Per Dwelling Unit - high density Otsego $ 3,024.00 Per Dwelling Unit - all densities Rogers $ 6,000.00 Per Dwelling Unit - all densities Ramsey $ 4,500.00 Per Dwelling Unit - low density $ 3,825.00 Per Dwelling Unit - high density Saint Michael $ 3,200.00 Per Dwelling Unit - all densities Zimmerman $ 2,500.00 Per Dwelling Unit - all densities average (no ER) $ 3,775.75 Per Dwelling Unit - low density Elk River (Ex.) $ 1,425.93 Per Dwelling Unit - Low density $ 4,897.04 Per Dwelling Unit - high density Elk River (Prop.) $ 3,065.73 Per Dwelling Unit - low density $ 5,945.38 Per Dwelling Unit - high density