Steiner Proposal
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DATE:
August 3, 1984
TO:
Mayor and Clty Councll
FROM:
Wllllam P. Cralg, Clty Manager
SUBJECT:
Paul Stelner Proposal to Develop Land
When Paul Stelner recently appeared to dlscuss hls ldea for a
land development project In south Hopklns (subJect of my June
29th memorandum to you), Councll requested that he develop more
speclflc numbers, and return. I have also had the Clerk/Assessor
and the Englneer develop some numbers regardlng thelr flelds of
expertlse, and all are enclosed.
Because of the complexlty of thls proJect, It cannot be analyzed
as slmply as most of our precedlng proJects. Slnce It wlll
lnvolve a substantlal bond, I would recommend that we be
authorlzed to work wlth the staff at Evenson-Dodge to perform the
analysls on thelr computer, Slnce such a reVlew would be requlred
anyway as part of thelr bond work. Naturally, thls means some
expense, whlch would not be recovered If the project proved to be
unfeasable for some reason.
The speclflc actlon Councll needs to conslder lS authorlzlng the
clty/HRA staff to thoroughly study the Stelner proposal and
prepare It, In the form of a tax lncrement proJect, for
HRA/Councll hearlng and reVlew. Before that lS done, you need to
resolve In your own mlnd whether thls proJect meets the requlred
test for tax lncrement proJects: Whether, In fact, It would not
be accompllshed wlthout publlc asslstance.
If, In your oplnlon, It meets the above test and lS the type of
project you wlsh to see accompllshed, then a motlon to authorlze
the staff to do the detalled flnanclal reVlew and prepare the
project documents lS In order.
Respectfully submltted,
~.P,~
Wllllam P. Cralg
Clty Manager
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Hurley
(75,000 sq. ft. building)
Cost of Improvement
BUY BACK
(5 & K will buy back on or before July 1, 1985,
Bui'lding to be completed by July 1, 1986)
Feltl
Cost of Improvement
BUY BACK
(Buy back date on or before June 30, 1986,
Building to be completed by June 30, 1987)
Landfl11 (street and utilitles in and pald)
BUY BACK 363,750 sq, ft, @ $.40
(This is easterly portion including part of
Nursery easement)
BUY BACK 713,000 sq. ft. @ $.20
(wl11 build 15,000 sq. ft. per year - 1985 -
1986 - 1987 - 1988)
Purchase on a 6 year C.D. @ 9% - amortlzed
25 years $ 38,100.00 down
115,000 sq. ft. Class A @ $1.00 sq. ft. tax
57,600 sq. ft. Class A and Class B @ $.75 tax
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5+12-: n.ILF
BALANCE
BALANCE
TOTAL
BALANCE
$ 587,000.00
300,000.00
$ 287,000.00
$ 325,000.00
125,000.00
$ 200,000.00
$ 145,500.00
$ 142,600.00
$ 288,100.00
$ 250,000.00
$ 115,000.00
43,200.00
$ 158,200.00
R2C'[ 7 - 2 3 - {; if
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C'TY OF HOPKINS
1010 FIRST STREET SOUTH
PHONE 9315-8474
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HOPKINS, MINNESOTA ~~343
INTER-OFFICE
MEMO
TO Bill Craig, City Manager
FROM Scott Renne, City Cl erk/ Assessor
SUBJECT Stei ner proposa 1 of 7-3-84
DATE
July 12
'9~
The proposal involved three propertles. The current status of the
properties:
Size 83 Pay 84 EMV 84 Tax
Hurley 18.67 acres $130,000 $5,222.20
Fel tl 96,256 ~ $ 99,000 $1 ,611. 82
(homesteaded)
Landfill 29.17 acres Exempt
The completed value of the project is based on the cost to
the buildings as estimated from the Marshall Valuation Service.
assuming that the Hurley and Feltl buildings will be similar to
properties in the South Hopkins Industrial Park. The effective
is 4.3184%.
construct
I am
the
tax rate
Building Size EMV Tax
Hu r 1 ey 75,000 ~ $2,250,000 $97,164
Feltl 40,000 ~ $1,200,000 $51,820
Landfill (8) 7,200 ~ (8) $ 172,800 (8) $ 7,462
meta 1 buil di ngs
Landfill improved total $1,382,400 $59,696
e
About 14 acres of the landfill would remain unimproved. This land
would be valued at about 40~ per square foot or $244,000 with an effective
tax rate of 4.0171% or an annual tax of $9,801.72. The most recent annual
valuation of the landfill for a basis of determining rental was January 2,
1984 at 52.5~ per square foot. This was for smaller parcels. Larger
parcels almost always sell for less per square foot than smaller parcels.
I believe that a discount of about 20% or 40~ - 45~ per square foot represents
a logical market value for the landflll.
ESTIMATE OF COSTS
800 foot road, 36 feet wide, rural section, no curblng.
Extension Southwesterly of 7th Street South from approximately 14th Avenue South
600 feet water and sewer with services
Aggregate fill on top of geotextile fabric
Aspha It surface - 4" of 2331
Excavation of garbage
Compact garbage and cover
Common borrow
Common borrow
Geotextile fabrlc
Aggregate fill
Asphalt surface
8" DIP Sewer
Piling bents
M.H.
811 DIP Water
Piling bents
Hydrants
611 DIP Sewer Service
611 DIP Water Service
811 G.V.
611 G.V.
2370 Cu Yds @ 4.00
2370 Cu Yds @ 4.00
2370 Cu Yds @ 4.00
2370 Cu Yds @ 4.00
3500 Sq Yds @ 5.00
1800 T @ 7.00
800 T @ 28.00
600 Ln Ft @ 16.00
100 Ea @ 600.60
2 Ea @ 300.00
600 Ln Ft @ 16.00
100 Ea @ 600.00
2 Ea @ 700.00
180 Ft @ 14.00
180 Ft @ 14.00
1 Ea @ 500.00
8 Ea @ 400.00
P~J. hj
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$ 9,480
9,480
9,480
9,480
17,500
12 , 600
22,400
9,600
60,000
600
9,600
60,000
1,400
2,520
2,520
500
3,200
$240,360
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