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<br />Independent Sohool Distriot 623; Rose viJIe , Minnesota
<br />
<br />Property Ownership
<br />
<br />The project, as currently proposed, includes parcels owned by the School District and three
<br />private la'ndowners. The total project area is approximately 94.0 acres with approximately 76,5
<br />acres owned by the District and approximately 17,5 acres (in three separate parcels) owned by
<br />three individuals. In addition, there are four private lots along the northern boundary which may
<br />be available for purchase.
<br />
<br />Although the three private owners and the District do not currently have a written agreement
<br />regarding the sale and development of their combined properties, the three private owners and
<br />the District have verbally expressed their commitment to cooperatively participate in this
<br />development and to enter into an agreement to sell the combined parcels based on an
<br />equitable negotiated prorata share of any offer that is acceptable to all parties. It will be up to
<br />the District and the private owners to negotiate and agree upon their respective shares of an
<br />acceptable overall offer.
<br />
<br />The uncertainty of no written agreement between the District and the private landowners could
<br />be an impediment to the development process and typically reduces the economic value of the
<br />property to a developer offering to purchase the raw land.
<br />
<br />Because of the current ownership status, Springsted has only analyzed the project based on
<br />the 76.5 acres owned by the District. Once an agreement has been executed for the
<br />surrounding parcels, an updated analysis, including the impact of these parcels, should be
<br />completed.
<br />
<br />ALTERNATIVE 1: UP FRONT SALE
<br />
<br />Of the proposals submitted and considered in this analysis, the highest price offered for the
<br />land "as-is" was $2,857,524 by Lundgren Bros. Construction, Inc. with the next closest offer
<br />being submitted by The Everest Group. For the purposes of this analysis. it was assumed that
<br />the price offered was a t'firm" quote and that the District would not be able to negotiate a higher
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<br />
<br />this initial offer might allow for further negotiation. In addition, it was assumed that payment
<br />would be cash at closing.
<br />
<br />I Total Site Everest Lundoren
<br />Acres 93,7 93.7
<br />Square Footage (S.F,) 4,080,247 4,079,254
<br />S.F. Per Acre 43,546 43,535
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<br />Price Per Acre $ 35.272 $ 37,353
<br />Price Per S.F. $0.810 SO.858
<br />
<br />SOURCE: Assumptions are based on information provided in the RFP and the proposals submitted by
<br />Everest and Lundgren.
<br />
<br />~ SPRINGSTED
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