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<br /> I <br /> CITY OF ARDEN HILLS <br /> I MEMORANDUM <br /> ,. <br /> DATE: March 17, 1997 <br /> I TO: Mayor and City Council <br /> K,," R"gw,ld, C'mm.,Uy O",I'pm,,' Di",'" W <br /> FROM: <br /> I SUBJECT: Gateway Business District <br /> I Request <br /> The Staff wishes to discuss and receive direction from the City Council on several items which <br /> I are anticipated to occur or affect development within the Gateway Business District (GBD). <br /> Background <br /> I The City Council approved the Phase I development of Welsh Companies (Arden Hills <br /> Commerce Center) in September of 1996 for a 155,000 square foot industrial building. The <br /> Phase I building is currently under construction and should be occupied by mid-summer. <br /> I Welsh Companies has made application to the City for approval of its Phase II building (114,339 <br /> square feet) for the April 2, 1997 Planning Commission meeting. The Phase II building requires <br /> .. infrastructure investments (road, water, sanitary sewer, and storm sewer) and land acquisitions by <br /> the City to facilitate the proposed development. The Phase II building will also generate needed <br /> Tax Increment Finance (TIF) dollars which the City may use to pay for the needed infrastructure <br /> , and land in the GBD. <br /> Finance <br /> I The Staff requested that Ehlers and Associates review the pro-formas for the Welsh Companies <br /> Phase I and II buildings to determine a conservative estimate of the TIF revenues that the City <br /> I can expect (Exhibit A). The TIF revenues from these two projects would allow the City to issue <br /> a bond (taxable and tax-exempt) to pay for these up-front development costs for the GBD. <br /> Ehlers and Associates estimate that the City would receive between $2,200,000 and $2,700,000 <br /> I in bond proceeds from these two projects. The Staff is also including as Exhibit B a comparison <br /> land and building values in the GBD from 1987 to 1997. <br /> I The Staff has prepared a preliminary schedule of expenditures for the GBD and has compared <br /> them to the anticipated revenues that Ehlers and Associates have projected for the Phase I and II <br /> buildings. The anticipated expenditures for the GBD exceed the revenues, therefore, <br /> I prioritization of the expenditures is necessary. The Staff has prepared a preliminary <br /> prioritization of expenditures to facilitate the discussion with the City Council. The prioritization <br /> I of those expenditures is as follows: <br /> ~ <br /> I <br />