CCP 10-19-1998 - Laserfiche WebLink

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BRW calculated the PM peak traffic (1998 and 2020) for the "Existing OBD" (existing uses, including Phases I, II, III, and IV of the OBD) and has assigned a LOS for the intersection of Round Lake Road and Highway 96 (relocated and improved). BRW's analysis of the "Existing . OBD" indicates that the improved intersection will operate at a LOS B in 1998 and a LOS D in 2020. BRW also calculated the PM peak traffic (1998 and 2020) for the "Existing OBD" and the proposed development ofthe MorrisNaughan sites. BRW's analysis of this condition indicates that the intersection will operate at a LOS B in 1998 and a LOS D in 2020. This full development LOS's are based upon 740,000 square feet to 1,100,000 square feet of office or 1,100,000 square feet to 1,600,000 square feet of office/showroom. Financial Report The City's Financial Consultant (Ehlers & Associates) analyzed what the minimum building valuations need to be to support the required public improvements (Exhibit B). The Staff estimates that the required public improvements (land acquisitions, business rclocations, and strect improvements- including enhancements) would be approximately $5,000,000 for development of the Morris site and would be approximately $11,300,000 for full development (Morris and Vaughan). Ehlers & Associates calculated what the minimum market valuation would need to be to support this level of debt. Ehlers & Associates assumed that the buildings would be built in 2003-2004 the tax rate would be 3.5 percent (ie., thc current Oovemor wants this lowered to 3.0%), taxes per square foot of building would be 53.50, and the interest rate would be 8.0 percent. Based upon these assumptions the Morris site \vould need to have a minimum market valuation of approximately S32,000,000 (ie., 400,000 sq.ft. of Office @ S80/sq.ft. or 800,000 sq.ft. of Office/Showroom @ 540/sq.ft.) and full development (Morris and Vaughan) would require a . minimum market valuation of approximately $71,312,000 (ie., 891,400 sq.ft. of Office @ $80/sq.ft. or 1,782,800 sq. ft. of Office/Showroom @ $40/sq.ft.). Land Use, Transportation. Financial Poliev Summarv The Staff will continue to pursue a high quality office building(s) for these sites. However, a project that contains a substantial portion of office would be entertained but would be subject to detailed City Council review while it was in its conceptual stage. If the City Council found that the conceptual plan was generally acceptable, then further discussions would take place towards implementing that plan. The transportation analysis would indicate that a two lane Round Lake Road (with appropriate turning ability) and the improved Round Lake Road/Highway 96 intersection would adequately facilitate more development than the sites could reasonable accommodate. However, if something less than full Office development is proposed on these sitcs, then a discussion should take place on whether the "appropriate turning ability" should be accommodated by a landscaped median or a middle turn lane. .