6.0 EDSR 03-12-2007ITEM ~ 6.
ver
MEMORANDUM
TO: Economic Development Authority
FROM: Jeremy Barnhart, Planning Manager
DATE: March 12, 2007
SUBJECT: Gateway Business Park
As part of the ongoing process to develop the Gateway Business Park, to be opened by
Summer, 2008, the City commissioned Maxfield Research, Inc to complete a Market Study
for the city owned land. The preliminary draft of that completed study was received by Staff
on Monday, March 5`h. This market study will aid the city is laying out the plan, specifically,
lot size, etc.
Staff is working with the author to address or clarify comments raised during the preliminary
review; the full draft will be forwarded to the EDA on or around March 19, 2007.
Based on this review, the main findings appear to be:
1. There is limited market for retail uses; property on the east side lacks visibility but
has better access, property on the west side has increased visibility but poor access.
2. There is limited market for strictly office uses.
3. The industrial development of the entire 60 acre site is more practical, although the
likely uses appear to be focused on the sectors currently serving Elk River:
Construction, Transportation, Warehousing, Manufacturing.
4. This industrial development will likely see an 80/20 split owner occupied/ leased.
The owner occupied spaces would likely include 20-30,000 square foot buildings.
5. The owner occupied sites should be around 5 acres, and the leased space sites about
6.5 acres.
6. The expected annual absorption rate is approximately 12 acres citywide, 25% of
which could be captured by Gateway.
7. There appears to be no benefit to deferring development of the property 5-10 years.
In an April EDA work session, the EDA and staff will discuss the report, and develop goals
and objectives for the property. These goals will be consolidated with concurrent Planning
Commission discussion and be used to prepare and review three development concepts for
consideration, to be reviewed in May.