2.1.
CC Work Session
- Meeting Date:
- 10/28/2014
Information
Title:
Consider Land Transaction Proposal from St. Katherine Drexel
Purpose/Background:
PURPOSE
Consider a land transaction proposal from St. Katherine Drexel which would include swapping 33.18 acres of St. Katherine Drexel owned land located adjacent to Central Park for 10 acres of HRA owned land within The COR.
BACKGROUND
Request/Case: This case will require significant discussion related to a large number of policy questions (which are outlined in the policy discussion section below). Staff does not anticipate the Council will be in a position to provide final/clear direction at the conclusion of this discussion. However, the Council may be in a position to provide preliminary direction and input for St. Katherine direction and Staff to guide future discussion and negotiations. The purpose of this case is to discuss the high-level concept proposal and policy questions; it is not to negotiate finite details of an agreement.
Proposed Use: St. Katherine Drexel would like to acquire 10 acres of land located within The COR to serve as the long-term/ permanent home of their church and auxiliary campus; they are looking to construct a 20,000 square foot facility with a 500 seat auditorium (similar to Northgate); they would like frontage along Sunwood Drive; they are both aware-of and accepting-of zoning standards within The COR.
It is Staff's understanding/estimation, only 3-5 acres of the 10 acre proposed site would be utilized for the proposed St. Katherine Drexel Church. The remaining portions (5-7 acres) would remain unimproved for an unknown amount of time (15-100 years). The remaining portions of this site would be reserved for future expansions and other auxiliary uses. Additionally, it should be noted, the first phase of the proposed project (20,000 square foot facility) has an unknown construction timeline as well; as St. Katherine Drexel is currently in the process of fundraising. It is Staff's understanding, St. Katherine Drexel is NOT interested in acquiring a small sized lot.
Attached to this case is an unofficial/conceptual reference map.
HRA Owned Land: is located within the The COR and is commonly referred to as parcel/listing #48 (which is about 20 acres in size total). This parcel has an asking price of $4.00 per square foot--which, equates to a $1,742,400 total asking price (for 10 acres as desired by St. Katherine Drexel). This site is visioned/guided for retail and office type users. This site is located in two zoning districts: mostly in COR-2A and partially in COR-1. All utilities and infrastructure required for development are located at the property line today.
St. Katherine Drexel Owned Land: is located directly east of Central Park (a City owned community park). This 33.18 acre site is surrounded by single family residential developments on three sides. This site is zoned R-1 MUSA. County records show this site was purchased for $740,200 in 2004; and shows an estimated market value in 2015 of $205,000. CBRE typically lists R1-MUSA residential properties at a $40,000 per acre. It is unofficially estimated 4.5 acres of this site is unusable wetlands. Therefore, the total usable space is estimated near 28.68 acres of land. Generically utilizing CBRE pricing from existing City listings for R1-MUSA residential properties, the asking price for this parcel would be $1,147,200. This site does not include sewer and water services located at the property line (preliminarily estimated $150,000-$300,000 cost).
POLICY DISCUSSION
Consider a land transaction proposal from St. Katherine Drexel which would include swapping 33.18 acres of St. Katherine Drexel owned land located adjacent to Central Park for 10 acres of HRA owned land within The COR.
BACKGROUND
Request/Case: This case will require significant discussion related to a large number of policy questions (which are outlined in the policy discussion section below). Staff does not anticipate the Council will be in a position to provide final/clear direction at the conclusion of this discussion. However, the Council may be in a position to provide preliminary direction and input for St. Katherine direction and Staff to guide future discussion and negotiations. The purpose of this case is to discuss the high-level concept proposal and policy questions; it is not to negotiate finite details of an agreement.
Proposed Use: St. Katherine Drexel would like to acquire 10 acres of land located within The COR to serve as the long-term/ permanent home of their church and auxiliary campus; they are looking to construct a 20,000 square foot facility with a 500 seat auditorium (similar to Northgate); they would like frontage along Sunwood Drive; they are both aware-of and accepting-of zoning standards within The COR.
It is Staff's understanding/estimation, only 3-5 acres of the 10 acre proposed site would be utilized for the proposed St. Katherine Drexel Church. The remaining portions (5-7 acres) would remain unimproved for an unknown amount of time (15-100 years). The remaining portions of this site would be reserved for future expansions and other auxiliary uses. Additionally, it should be noted, the first phase of the proposed project (20,000 square foot facility) has an unknown construction timeline as well; as St. Katherine Drexel is currently in the process of fundraising. It is Staff's understanding, St. Katherine Drexel is NOT interested in acquiring a small sized lot.
Attached to this case is an unofficial/conceptual reference map.
HRA Owned Land: is located within the The COR and is commonly referred to as parcel/listing #48 (which is about 20 acres in size total). This parcel has an asking price of $4.00 per square foot--which, equates to a $1,742,400 total asking price (for 10 acres as desired by St. Katherine Drexel). This site is visioned/guided for retail and office type users. This site is located in two zoning districts: mostly in COR-2A and partially in COR-1. All utilities and infrastructure required for development are located at the property line today.
St. Katherine Drexel Owned Land: is located directly east of Central Park (a City owned community park). This 33.18 acre site is surrounded by single family residential developments on three sides. This site is zoned R-1 MUSA. County records show this site was purchased for $740,200 in 2004; and shows an estimated market value in 2015 of $205,000. CBRE typically lists R1-MUSA residential properties at a $40,000 per acre. It is unofficially estimated 4.5 acres of this site is unusable wetlands. Therefore, the total usable space is estimated near 28.68 acres of land. Generically utilizing CBRE pricing from existing City listings for R1-MUSA residential properties, the asking price for this parcel would be $1,147,200. This site does not include sewer and water services located at the property line (preliminarily estimated $150,000-$300,000 cost).
POLICY DISCUSSION
(1) Would the Council be comfortable with considering the potential financial obligations that may result from the proposed transaction?
The proposed land transaction, which results in no land proceeds, will still require a broker commission fee of 5% (estimated between $65,000 to $87,000) . The City has several financial obligations tied to future land proceeds from HRA owned land located within The COR (i.e. significant Sewer and Water Fund loan repayments, potential street maintenance program, etc.).
Selling (or trading) this site to St. Katherine Drexel will result in a tax exempt parcel located within The COR in perpetuity. The City has several future financial obligations tied to property tax revenues within The COR (i.e. TIF obligations, improving Bunker Lake Boulevard, etc.). Tax exempt properties do not provide any funding for regular City maintenance and services (however, all City services will be provided to this user).
Based on the land-swap proposal before the Council, Staff is concerned the face value of the two properties involved in this transaction may not be equitable; and should therefore be analyzed in greater detail if this negotiation process moves forward. Staff discussed this proposed project with the City's Financial consultant, Ehlers-- attached to this case is a MEMO outlining the potential financial implications of the proposed land transaction.
(2) Does the Council believe a need exists for additional land to expand Central Park in the future?
Staff does believe that the preponderance of land adjacent to Central Park should be studied for expansion of the community park by some means. At a minimum, 2-acres parallel to the east line of the park should be conveyed to the City (Fee Title or ROW easement) to solve the parking and vehicular traffic problems that presently exist during tournaments and peak periods. The attachment entitled 'Proposed Parkway' illustrates the 2-acres required for this solution as outlined in green.
As indicated, the majority of the 33-acres site immediately adjacent to the 45-acre Central Park should be studied for expansion of the community park, and ultimately discussed as part of the City's Comprehensive Plan. In summary, if the present needs of the community require all of the athletic fields and available space at the park, and the population of Ramsey can be expected to increase by nearly 10,000 people over the next twenty (20) years (additional growth above and beyond this planning period), it is logical there will need to be more community park area added. Two aspects are self evident here, the first is that as the community builds out, there is simply less land available or suitable for a community park, and what there may be, increases exponentially in value. The second is there are significant benefits and savings of having one larger park versus two smaller parks serving the same functions. There is a reduced need for redundant infrastructure (E.g. water wells, electric and sanitary services, buildings, playgrounds, park roads and parking etc.). Plus there are savings on maintenance and operations costs over time as well. Additionally, families find it inconvenient or logistically impractical to have children in programs at different parks at the same time - particularly for tournaments and events. This is likewise true of coaches, umpires, and especially the hundreds of volunteers that are required to host practices, games and tournaments in any given season.
(3) Would the Council like Staff and St. Katherine Drexel to continue negotiating a potential land transaction in The COR; or should different alternatives be identified and considered?
The proposed land transaction, which results in no land proceeds, will still require a broker commission fee of 5% (estimated between $65,000 to $87,000) . The City has several financial obligations tied to future land proceeds from HRA owned land located within The COR (i.e. significant Sewer and Water Fund loan repayments, potential street maintenance program, etc.).
Selling (or trading) this site to St. Katherine Drexel will result in a tax exempt parcel located within The COR in perpetuity. The City has several future financial obligations tied to property tax revenues within The COR (i.e. TIF obligations, improving Bunker Lake Boulevard, etc.). Tax exempt properties do not provide any funding for regular City maintenance and services (however, all City services will be provided to this user).
Based on the land-swap proposal before the Council, Staff is concerned the face value of the two properties involved in this transaction may not be equitable; and should therefore be analyzed in greater detail if this negotiation process moves forward. Staff discussed this proposed project with the City's Financial consultant, Ehlers-- attached to this case is a MEMO outlining the potential financial implications of the proposed land transaction.
(2) Does the Council believe a need exists for additional land to expand Central Park in the future?
Staff does believe that the preponderance of land adjacent to Central Park should be studied for expansion of the community park by some means. At a minimum, 2-acres parallel to the east line of the park should be conveyed to the City (Fee Title or ROW easement) to solve the parking and vehicular traffic problems that presently exist during tournaments and peak periods. The attachment entitled 'Proposed Parkway' illustrates the 2-acres required for this solution as outlined in green.
As indicated, the majority of the 33-acres site immediately adjacent to the 45-acre Central Park should be studied for expansion of the community park, and ultimately discussed as part of the City's Comprehensive Plan. In summary, if the present needs of the community require all of the athletic fields and available space at the park, and the population of Ramsey can be expected to increase by nearly 10,000 people over the next twenty (20) years (additional growth above and beyond this planning period), it is logical there will need to be more community park area added. Two aspects are self evident here, the first is that as the community builds out, there is simply less land available or suitable for a community park, and what there may be, increases exponentially in value. The second is there are significant benefits and savings of having one larger park versus two smaller parks serving the same functions. There is a reduced need for redundant infrastructure (E.g. water wells, electric and sanitary services, buildings, playgrounds, park roads and parking etc.). Plus there are savings on maintenance and operations costs over time as well. Additionally, families find it inconvenient or logistically impractical to have children in programs at different parks at the same time - particularly for tournaments and events. This is likewise true of coaches, umpires, and especially the hundreds of volunteers that are required to host practices, games and tournaments in any given season.
(3) Would the Council like Staff and St. Katherine Drexel to continue negotiating a potential land transaction in The COR; or should different alternatives be identified and considered?
STAFF COMMENTS:
It should be noted, St. Katherine Drexel is an asset for the City of Ramsey and the greater community. Their organization is intimately involved with countless initiatives to improve and strengthen the community and region. From an economic development perspective, St. Katherine is proposing a quality facility that would become a focal point/asset for The COR. Additionally, the proposed 500 seat auditorium would drive significant traffic to the COR for worship services and events. Said traffic is beneficial to retail businesses. Regardless of how the Council decides to move forward with this specific proposal, Staff would recommend continuing to work with St. Katherine Drexel to secure permanent solution for their long term needs in our community.
It should be noted, St. Katherine Drexel is an asset for the City of Ramsey and the greater community. Their organization is intimately involved with countless initiatives to improve and strengthen the community and region. From an economic development perspective, St. Katherine is proposing a quality facility that would become a focal point/asset for The COR. Additionally, the proposed 500 seat auditorium would drive significant traffic to the COR for worship services and events. Said traffic is beneficial to retail businesses. Regardless of how the Council decides to move forward with this specific proposal, Staff would recommend continuing to work with St. Katherine Drexel to secure permanent solution for their long term needs in our community.
Timeframe:
20-40 Minutes
Funding Source:
NA
Responsible Party(ies):
Economic Development Staff
Outcome:
Staff does not anticipate the Council will be in a position to provide final/clear direction at the conclusion of this discussion. However, the Council may be in a position to provide preliminary direction and input to St. Katherine direction and Staff to guide future discussion and negotiations. The purpose of this case is to discuss the high-level concept proposal and policy questions; it is not to negotiate finite details of an agreement.
Attachments
- Concept Reference Map
- Ehlers MEMO
- Proposed Parkway
- Property Listing CBRE
- COR Master Plan
- COR Zoning Map
Form Review
| Inbox | Reviewed By | Date |
|---|---|---|
| Mark Riverblood | Mark Riverblood | 10/23/2014 08:37 AM |
| Brian Hagen | Tim Gladhill | 10/23/2014 09:08 AM |
| Diana Lund | Diana Lund | 10/23/2014 10:50 AM |
| Kurt Ulrich | Kurt Ulrich | 10/23/2014 11:02 AM |
- Form Started By:
- Patrick Brama
- Started On:
- 10/18/2014 11:18 AM
- Final Approval Date:
- 10/23/2014