Request for Feedback on Preliminary Development Proposals for Parcel 46

Background:
City Staff, at the direction of the City Council, has received an updated COR Analysis Update (2023 COR Report) dated February 2023. This report updated a 2018 report and went into a more detailed analysis into the existing wetlands, costs to begin work on the excavation of the Waterfront, site preparation/soil correction for low sites owned by the City and estimated costs for City Sewer, City Water, City Stormwater and Road costs. Summary exhibits are attached to this case due to the lengthy size of the full report.  

City staff has received development inquires the past few years for Parcel 46 but has not been in a position to begin meaningful negotiations with interested parties due to the lack of relevant information on this site. Parcel 46 was identified as a large commercial site for "Big Box Retail" in the original master plan and for COR.  The City Council, EDA and Planning Commission within the past five years have reviewed preliminary concepts varying from all residential to a blend of residential and commercial. Staff has received mixed feed back from the Council, Planning Commission and EDA but all have been supportive of a blend of uses on this site due to changing market conditions.

The 2023 COR report has provided some clarity relating to wetlands and the ability to fill them, road alignments and estimated costs to bring the site up to a buildable/developable elevation.  City Staff has shared relevant data from the 2023 Study with multiple developers that have expressed a recent interest in development of the site and has asked them to bring forth some preliminary development proposals to the City Council. (See attached).  Staff has asked the developers to use this site template for their concept plans reserving an area for a future 98 unit Hilton Home 2 Suites and to show how the projects would complement each other.   PDF's for each preliminary development proposal layout and narratives are attached.  Brief summaries of the proposals are included in the text below:

Norhart (Projects 1 and 2)
3.2 Acre Lot
150 Unit, Mixed Use, 5 Story, Market Rate Apartment
Norhart glass corner feature
Multiple Building Amenities - See Narrative
Multiple Unit Amenities - See Narrative
Multiple Exterior Amenities - See Narrative
5,000 SF ground level retail space (i.e Jimmy Johns, Jamba Juice, Coffee Shop)
Heated Underground Parking Available
$37,500,000 - Tax Assessed Valuation Estimate (250K/Unit) 
$517,000 - Annual Taxes (4A - Apartment)
$432,000 - Local Taxes (4A - Apartment)

Capstone Homes Project 1
168 - 2 Story Townhomes
For Sale - Owner Occupied
23.7 Gross Acres
+/- 18 acres developed
$300,000 - $335,000 - Price Point
Homeowners Association
3 bedrooms, 3 bathrooms
1,500-1,800 SF
Enhanced Architecture along Bunker Lake Blvd
Developer to work through process to fill Wetland 2, portion of Wetland 1 and move pond
$275,000 - Tax Assessed Valuation per Unit
46,200,000 Total Tax Valuation
$3,046 - Estimated Taxes per Unit (1A Homestead)
$2,420 - Local Taxes per Unit
$511,728 - Annual Estimated Taxes Upon Project Completion (1A Homestead) (less wetland and pond acreage)
$406,560 - Annual LOCAL Tax Estimate Upon Project Completion (1A - Homestead) (less wetland and pond acreage)

Capstone Homes Project 2 (reserve retail)
137 - 2 Story Attached Townhomes
For Sale - Owner Occupied
3.0 Acres reserved for retail to be retained by City
23.7 Gross Acres
+/- 18 acres developed
$300,000 - $335,000 - Price Point
Homeowners Association
3 bedrooms, 3 bathrooms
1,500-1,800 SF
Enhanced Architecture along Bunker Lake Blvd
Developer to work through process to fill Wetland 2, portion of Wetland 1 and move pond
$275,000 - Tax Assessed Valuation per Unit
42,000,000 Total Tax Valuation
$3,046 - Estimated Taxes per Unit (1A Homestead)
$2,420 - Local Taxes per Unit
$417,302 - Annual Estimated Taxes Upon Project Completion (1A Homestead) (less wetland and pond acreage)
$331,540 - Annual LOCAL Tax Estimate Upon Project Completion (1A - Homestead) (less wetland and pond acreage)

Centra Homes Project 1 (reserve retail)
124 - 2 Story Townhomes
For Sale - Owner Occupied
23.7 Gross Acres
All Wetlands filled and pond solved for
For Sale - Owner Occupied
$350,000 - $400,000 - Price Point
Homeowners Association
3 - 4 bedrooms, 2.5 bathrooms
1,742-1,875 SF
Developer to work through process to fill Wetland 2, Wetland 1 and move / solve for pond
$325,000 - Tax Assessed Valuation per Unit
40,300,000 Total Tax Valuation
$3,663 - Estimated Taxes per Unit (1A Homestead)
$2,923 - Local Taxes per Unit
$454,212 - Annual Estimated Taxes Upon Project Completion (1A Homestead) (less wetland and pond acreage)
$364,560 - Annual LOCAL Tax Estimate Upon Project Completion (1A - Homestead) (less wetland and pond acreage)

Centra Homes Project 2
147 - 2 Story Townhomes
For Sale - Owner Occupied
23.7 Gross Acres
All Wetlands filled and pond solved for
For Sale - Owner Occupied
$350,000 - $400,000 - Price Point
Homeowners Association
3 - 4 bedrooms, 2.5 bathrooms
1,742-1,875 SF
Developer to work through process to fill Wetland 2, Wetland 1 and move / solve for pond
$325,000 - Tax Assessed Valuation per Unit
47,775,000 Total Tax Valuation
$3,663 - Estimated Taxes per Unit (1A Homestead)
$2,923 - Local Taxes per Unit
$538,461 - Annual Estimated Taxes Upon Project Completion (1A Homestead) (less wetland and pond acreage)
$429,681 - Annual LOCAL Tax Estimate Upon Project Completion (1A - Homestead) (less wetland and pond acreage)

Large Format Retail Development (very preliminary interest shown)
(Potential users - Walmart, Target, Fleet Farm, Hy-Vee, Menards, Home Depot, Lowes or others)
Might be visibility and or access issues
Room for other smaller users possible
Approximately 15-20 Acres
$12-16M Estimated Tax Assessed Value
$368,000 - $491,000 Annual Taxes (3A)
$250,000 - $340,000 Local Taxes + FD 

The developers will be present but have not been asked to present their project proposals.  Additional information may be available at the work session.  The developers will be present to answer questions relating to each proposal.

2024-2025 projects

To be determined based on each development proposal

Economic Development Manager, Sean Sullivan
Community Development Director, Stephanie Hanson