2003_1124_packet - Laserfiche WebLink

Home

Overview of Allina -Ryan Twin Likes Proposal November 17, 2003 (Dennis Welsch) Allina Medical and Ryan Companies continue to work on a proposed multi -story 240,WO s1 office complex to house Allina's office headquarters and laboratory facilities. The project is valued at more than 35 trillion. Future expansions are also possible. The site is located at 2814 Cleveland Avenue within the Twin Lakes Redevelopment Area. The site proposed for this medical headquarters campus is the 9 to 10 acre Dorso- American Seri, and up to 2 acres of the PIK Terminal site. The proposal includes a row of housing in between the Allina building and Langton Lake. This project will bring 1,000 to 1,350 jobs to Roseville. The average annual wage will exceed $55,000. Roseville continues to compete for this project with St. Paul and Minneapolis. Allina finds this site attractive because it is central (accessible) to their four north metro hospital sites; it has high corporate visibility from Interstate 35w; and it is expandable without need for massive parting structures. The proposal also provides employees with recreational amenities, possible housing, business, hospitality, and shopping services within 1 mile. Although the Allina Board has not made a final decision, the Allina employees evidently like this site as their preferred location. Allina likes the idea of being part of a ` "neighborhood *} which is what we are trying to create as part of the Twin Lakes redevelopment plan. This proposal respects and is similar to the City master plan use for Twin Lakes -- a hospital, medical offices, laboratory complex. The Allina proposal does not include a hospital but the main corporate offices and laboratory are tax exempt. However, others uses identified in the master plan such as a mix of housing types, support retail and services are taxable and could help pay for the new roads and utilities, as well as the contamination clean -up within the Twin Lakes 170 acre area. The site chosen by Allina is a portion of the same site that, before they withdrew, Roseville Properties proposed a big box retail building. (Roseville properties and Ryan currently have no purchase option on any of the land within the Allina proposal.) The site is very expensive, estimated at to 1 l /square foot. This equates to $4.3 to $5.o million for the site. Ryan's proformas estimate that at the very most an office complex can pay about 6.00/square foot in this type of market. some assistance will be needed to fill the gap from $6.00 to an estimated $9.00 to 11.00/square foot. Allina is a non- profit 501 C3 corporation. As such, t does not pay property taxes. Allina may request the City to issue 35 million in industrial revenue bonds (pass through bonds) for a term of 15 to 25 years. Since Allina is a non - profit, l oseville }s policy has been to require a payment - in-lieu of taxes (PILOT). A PILOT can be used to support normal city services as well as development costs in a redevelopment area. In this case, the PILOT would be 150,000 to $200,000 to the City, with an inflation escalator of 2.5% compounding annually. The pfi.oT payout to the City over 15 gears would be approximately $2,500,000 to $3,000,000 depending on