Consider Updates to City Pricing Strategy for City Owned Land (portions of meeting may be closed to the public)

The purpose of this case is to discuss the pricing strategy of City owned land.  Staff feels it is important to to update land listing and pricing from time to time to ensure that the City has pricing that will attract development interest in the city.  Upon consultation with Brian Pankratz from CBRE, Staff would like to bring pricing strategy to the EDA for discussion.

The City acquired land in the COR in 2009 for $6,764,429.  To date the City has sold land in the COR and has received $5,662,482 in gross land proceeds. In addition to land cost, there are also several other costs built into the current pricing strategy:

1. [Primary] Repay internal loans from the Sewer and Water Fund that were used for a portion of the purchase
2. Park Improvements
3. Public Improvements such as roads and utilities
4. Parking Ramp - First Phase Construction
5. Northstar Commuter Rail - Ramsey Station
6. Administration Overhead and Marketing. 

These expenses are eligible for reimbursement through land proceeds as well as Tax Increment Financing (TIF) District #14. It should be noted that park improvements are not eligible to be reimbursed through tax increment and must be funded through land proceeds.  The attached Policy for Land Proceeds Reimbursement provides additional detail. 

N/A

Upon conclusion of pricing strategy discussion the with the EDA, a recommendation should be made to the City Council for consideration:

Alternatives include:

1) Recommend changes to City owned property pricing strategy.
2) Recommend no changes to City owned pricing strategy.

This case is being handled under normal staff duties.

Based on discussion

Motion to recommend to City Council to change/not change pricing strategy for City owned property.