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<br />City of Rosevi/le <br /> <br />Community Development Department <br /> <br />Memo <br />Aug 7, 1998 <br /> <br />TO: <br />FROM: <br /> <br />Steve Sarkozy, City Manager <br />Dennis Welsch, <br />Community Development Director (490-2232) <br /> <br />RE: <br /> <br />Everest Development Proposal north of Hamline Library <br /> <br />On September 11 I met with Tim Nelson and Rick Baker of Everest Development to <br />discuss their use of the land directly north of the Ramsey County Library for an office <br />complex. Everest is interested in building a 150,000 s.f. office building with <br />approximately 750 parking spaces in a two-tier ramp. Nelson estimated the value at $8 <br />to $9 million and the new taxes at $350-$450,000 annually before fiscal disparities is <br />taken out. In order to accomplish this, they are looking for TIF assistance to write <br />down/acquire the Wilbert-Chandler-Brown Vault Company, currently with an estimated <br />value is $650,000 according to County records. In addition, there would be business <br />relocation costs and contamination clean up. <br /> <br />Everest's contribution to the site would be the 2.78 acres they own, with 4 homes, one <br />of which is burned out, another is vacant at this time. All renters are on a month-to- <br />month basis with Everest. Everest estimates that their cost of the land (and holding <br />costs) for the 2.78 acres is $10.00 per foot (or $1,211,000 for the 2.78 acre Everest <br />site) based on previous values established for the 1992 Library purchase of the <br />adjoining site. <br /> <br />It is not clear whether they are also asking for a TIF write down/reimbursement on their <br />2.78 acres. Mr. Nelson said he wanted assistance similar to other Ryan and Opus <br />packages. I explained that the current TIF policy is for pay-as-you-go TIF assistance <br />and that the City Council would have to change its land use policy of not encroaching in <br />residential areas. - (I told him I felt this would be very difficult for the Council to do.) <br /> <br />Mr. Nelson also offered the land he owns for other types of development or a <br />partnership with others to construct housing. No plans are yet available for this <br />alternative. However, suppose that 100 units could be constructed on this site. The 100 <br />units would generate about $120,000 per year in new taxes, and can reasonable be <br />expected to pay no more than $5,000 per unit for the land ($500,000 total). This leaves <br />a gap of $700,000 in Everest land price (not including the Vault Company) that would <br />have to be picked up by another source, possibly TIF, <br /> <br />C:\WPWIN60\WPDOCS\CMANAGER\EVEREST.MEM <br /> <br />1 <br />