CCP 08-20-2002 - Laserfiche WebLink

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. Memo to Economic Development Authority Page 2 August 22, 2002 · Taking into account the above uses, Council direeted staff to obtain an appraisal for the property. Based on the appraisal report, the probable market value for the property is listed at $900,000. After considering the comparables, the adjusted sales price represents a range of $4.20 to $5.88 a square foot. This translates into a sales price of $722,677 to $1,011,748. It should be noted that from staff s perspeetive, and based input provided by a local commercial real estate broker, the comparables may not be entirely representative. . At the May 2002 Work Session, Council heard a presentation from a loeal commercial real estate broker outlining the marketability and development potential of the property from their perspective. In short, they indicated that an office use may be a viable option for the property if the City were willing to sell the property at a substantially reduced price (estimated at less than $400,000). Alternatively, the broker indicated that the City may get closer to the appraised value if it were willing to sell the property to a c-store user. Finally, the broker indicated that a restaurant, particularly a sit-down restaurant was not a likely prospect given the location of the site, and its lack of proximity to similar users. . · At the June 2002 Work Session, the Council directed evaluated the following options for selling the property: I. Do not actively market the property. 2. Market the site for office and retail uses previously outlined by the Council. 3. Market the site for office and retail uses previously outlined by the Council with the addition of a C-store. After considering the various options, Council directed staff to retain a commercial real estate broker to pursue option #2 outlined above. Subsequent to Council's direetion, staff has been working with a current Arden Hills business and two investors about the possibility of constructing a two-story 30,000 square foot office building on the site. See the attached concept drawings for additional information. The law firm of Hanson, Dordell, Bradt, Odlaug & Bradt, eurrently located in the Adobe building on Northwoods Drive, would be the primary tenant occupying approximately 15,000 square feet. The balance of the space would be leased out. At this time, they have offered $400,000 for the property. When evaluating this offer, the EDA may want to consider the following: . 1. This use is consistent with what the Council has indicated a preference for in the past. 2. The following highlights the relative land price on a per square foot basis from various sources: Source Ori inal Purchase Price: A raised Land Value: Offer: Price Per Square Foot $3.40 per s uare foot $4.20 er s uare foot $2.485 er square foot Price or 3. 7 Acre Parcel $547,984 $676,922 $400,000