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EDA Agenda 04-24-2017 (Workshop Meeting) AGENDA WORKSHOP-ECONOMICDEVELOPMENTAUTHORITY(EDA) Wednesday,April24,2017–4:30p.m. AcademyRoom,MonticelloCommunityCenter Commissioners:PresidentBillDemeules,VicePresidentBillTapper,TreasurerSteve Johnson,TracyHinz,JonMorphew,CouncilmembersLloydHilgartandJimDavidson Staff:JeffO’Neill,AngelaSchumann,EDAExecutiveDirectorJimThares,JacobThunander andWayneOberg 1.CalltoOrder 2.RollCall 3.Consideration-ReviewofOtterCreekDevelopmentCosts 4.ReviewofPreviousLandSalesinOtterCreekBusinessPark 5.ReviewofProposedGuidelinesforPricingLandInOtterCreekBusinessPark 6.Adjourn EDA Agenda: 4/24/17 3. Consideration of Otter Creek Business Park Land Pricing (JT) A. REFERENCE AND BACKGROUND: As a review, staff will provide a summary of the costs and investments made into the Otter Creek Business Park, including land acquisition and infrastructure improvements, from the inception of the Park until the current date. Also, related to that will be a review of the sales transaction of each of the five land sales to date in the Park. Finally, the EDA is asked to consider a proposed price scoring format that equates to a possible land price. Staff will ask the EDA to offer direction regarding the possible adoption of the land pricing scoring Guidelines and Worksheet. Agenda items #4 and #5 are incorporated into this report by reference. Please refer to the attachments for more detail. A1. Staff Impact: Minimal impact. The Community Development staff is gathering the materials for presentation to the EDA. The EDA Attorney and the staff from Northland Securities is also involved in supporting City staff in the discussion and presentation. A2. Budget Impact: The costs of preparing the Workshop materials is minimal. The cost to involve the EDA Attorney and the Financial Advisor will be related to the meeting time and will be covered by the EDA General Fund Legal Services and also the Miscellaneous Professional Services line items. B. ALTERNATIVE ACTIONS: 1. Motion to adopt the Otter Creek Land Pricing Guidelines 2. Motion to table action on the Otter Creek Land Pricing Guidelines C. STAFF RECOMMENDATION: If the EDA feels it is important to adopt the Guidelines for use immediately, staff is supportive of that outcome. If the EDA would prefer to wait to further refine the Guidelines or for additional research, staff is also supportive of that outcome. Staff recommends that a rational policy and pricing tool be utilized in the sale of land parcels in Otter Creek Business Park. D. SUPPORTING DATA: A. Otter Creek Business Park Expenditures Information Sheet B. History of Land Sales Transaction Information Sheet C. Proposed Otter Creek Land Pricing Guidelines Otter Creek Land Sales History April 24, 2017 The desired sale rate is $2.41 per sq. ft. Project Name Land Sale Amt. TIF to EDA = Amt./Sq. Ft. Tot Cap. Rtn. 1. Dahlheimer $1.43 per sq. ft. $411,924 or $0.72 per sq. ft. $2.15/sq. ft. 2. Karlburger $1.20 per sq. ft. $142,113 or $1.53 per sq. ft. $2.73/sq. ft. 3. Walker In-Store$0.67 per sq. ft. $40,000 or $0.61 per sq. ft. $1.28/sq. ft. 4. AVR Transfer figured at $2.65 per sq. ft. 5. Suburban Mfg. $0.25 per sq. ft. $334,307 or $1.68 per sq. ft. $1.93/sq. ft. 6. Dahlheimer Exp$2.41 per sq. ft. None Needed $2.41/sq. ft. Note: The rate of $2.41 per sq. ft. does not include required ponding infrastructure additions that will carry a cost to complete construction. This should also be considered in the discussion. City of Monticello Economic Development Authority Pricing Guidelines for Otter Creek Business Park Land Sales April 2017 The scoring worksheet is to be used as a Guideline for pricing the EDA owned land in Otter Creek Business Park. It is intended to be Guideline and should be applied to prospective land sales in this manner. There may be instances where factors of a proposed land sale for a development may warrant deviation from the Guidelines. It Guidelines in the interest of furthering Economic Development Goals and Objectives in the City of Monticello. There are several key factors that are pertinent to proposed development scoring. They are shown below with scoring ranges and a Worksheet Summary at the conclusion. The final scoring also relates to the proposed land sale pricing. ********** 1. Number of New Employees Point Value Number њЊ Њ Ў њЋ Џ Ώ ЊЎ њЌ ЊЏ Ώ ЌЉ њЍ ЌЊ Ώ ЎЉ њЎ ЎЊ њ 2. Number of Jobs Per Acre Point Value Number Per Acre њЊ Њ Ћ ƦĻƩ ğĭƩĻ њЋ Ќ Ѝ ƦĻƩ ğĭƩĻ њЌ Ў Џ ƦĻƩ ğĭƩĻ њЍ Џ А ƦĻƩ ğĭƩĻ њЎ Б њ ƦĻƩ ğĭƩĻ 3. Average Wages for New Jobs Point Value Pay Range Dollar Weighting Total Empl. Weighted $ Amt. њЊ υЊЎͲЉЉЉΏЋЍͲВВВ υЋЉͲЉЉЉ ΗΗΗΗΗΗΗΗ υΗΗΗΗΗΗΗΗΗΗΗ њЋ υЋЎͲЉЉЉΏЋВͲВВВ υЋАͲЎЉЉ ΗΗΗΗΗΗΗΗ υΗΗΗΗΗΗΗΗΗΗΗ њЌ υЌЉͲЉЉЉΏЍЍͲВВВ υЌАͲЎЉЉ ΗΗΗΗΗΗΗΗ υΗΗΗΗΗΗΗΗΗΗΗ њЍ υЍЎͲЉЉЉΏЎВͲВВВ υЎЋͲЎЉЉ ΗΗΗΗΗΗΗΗ υΗΗΗΗΗΗΗΗΗΗΗ њЎ υЏЉͲЉЉЉ њ υЏЉͲЉЉЉ ΗΗΗΗΗΗΗΗ υΗΗΗΗΗΗΗΗΗΗΗ 4. Developed Assessed Value Per Acre Point Value Value Per Acre њЊ υЊЎЉͲЉЉЉΏЊВВͲВВВ њЋ υЋЉЉͲЉЉЉΏЌЍВͲВВВ њЌ υЌЎЉͲЉЉЉΏЍВВͲВВВ њЍ υЎЉЉͲЉЉЉΏЎВВͲВВВ њЎ υЏЉЉͲЉЉЉ њ 5. Business Retention Point Value Number of Retained Jobs њЉ͵Ў ЊΏЎ ƆƚĬƭ њЊ ЏΏЊЉ ƆƚĬƭ њЊ͵Ў ЊЊΏЌЉ ƆƚĬƭ њЋ ЌЊΏЎЉ ƆƚĬƭ њЋ͵Ў ЎЉΏЊЉЉ ƆƚĬƭ њЌ ЊЉЊ њ ƆƚĬƭ 6. Significant Community Impact/Comp Plan Goals Point Value њЊ WORKSHEET SUMMARY Factors Total Points #1. Number of New Employees _________ (1-5) #2. Number of Jobs Per Acre _________ (1-5) #3. Average Wages for New Jobs _________ (1-5) #4. Developed Assessed Value Per Acre _________ (1-5) #5. Business Retention (# of Jobs) _________ (.5-3) #6. Significant Impact/Comp Plan Goals _________ (1) Total Points _________ Possible to score 24 points total Total Worksheet Points Equated to Land Price Total Overall Points Price for Otter Creek Land ЊΏЎ υЋ͵ЍЊ ƦĻƩ ƭƨ͵ ŅƷ͵ Λbƚ LCΜ ЎΏА υЋ͵ЍЊ ƦĻƩ ƭƨ͵ ŅƷ͵ БΏЊЉ ЌЎ ƦĻƩĭĻƓƷ ķźƭĭƚǒƓƷ ŅƩƚƒ ƒğƩƉĻƷ ƦƩźĭĻ ў υЊ͵ЎА ƦĻƩ ƭƨ͵ ŅƷ͵ ЊЊΏЊЌ ЎЉ ƦĻƩĭĻƓƷ ķźƭĭƚǒƓƷ ŅƩƚƒ ƒğƩƉĻƷ ƦƩźĭĻ ў υЊ͵ЋЊ ƦĻƩ ƭƨ͵ ŅƷ͵ ЊЍΏЊЏ АЎ ƦĻƩĭĻƓƷ ķźƭĭƚǒƓƷ ŅƩƚƒ ƒğƩƉĻƷ ƦƩźĭĻ ў υ͵ЏЉ ƦĻƩ ƭƨ͵ ŅƷ͵ ЊАΏЋЉ ВЉ ƦĻƩĭĻƓƷ ķźƭĭƚǒƓƷ ŅƩƚƒ ƒğƩƉĻƷ ƦƩźĭĻ ў υ͵ЋЍ ƦĻƩ ƭƨ͵ ŅƷ͵ ЋЊΏЋЍ ЊЉЉ ƦĻƩĭĻƓƷ ķźƭĭƚǒƓƷ ŅƩƚƒ ƒğƩƉĻƷ ƦƩźĭĻ ў υЊ͵ЉЉ ŅƚƩ ƷŷĻ ĻƓƷźƩĻ ƌƚƷ