02/05/2001 - City Council Finance CommitteeMEMO
city of eagan
TO: Mayor Patricia Awada
Council Member Cyndee Fields
FROM: Jamie Verbrugge, Assistant City Administrator
DATE: February 2, 2001
SUBJECT: Finance Committee
Based on your direction at the January 30 Special City Council Meeting, a meeting of the
Finance Committee has been scheduled on Monday, February 5 at 1:00 p.m.
The purpose of the meeting is to review options regarding the possible purchase of the Cedarvale
Mall. Attached to this memo is an options scenario prepared by Ehlers & Associates that
describes different build -out scenarios for redevelopment of the mall area. These options use
likely values per square foot for various mixed-use alternatives.
The column in each option that identifies the gap is the amount of money that would need to be
made through tax increment or other sources. The gap is identified for fiscal disparities payment '1W o3
from within the district and fiscal disparities contributions from outside the TIF district.
The Ehlers team will be on hand Monday to explain these options in greater detail and discuss c
possible courses of action with the Finance Committee.
r.
Assistant City Admi 'strator
Attachment
Copy: City Administrator Hedges (w/out attachment)
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Concept One Mixed Use - Retail/Office
Use
Area
Building Value
Year Built
Bally's
28,000
$60/sf
2004
Burnsville School
16,400
$50/sf
2004
Retail
5,000
$75/sf
2003
Office showroom
100,000
$65/sf
2002
Total
149,400
Developer land payment
$1,250,000
Present Value of TIF
Gap
Fiscal disparities paid within district
715,670
2,534,330
Fiscal disparities outside district
1,084,058
2,165,942
EHLERS & ASSOCIATES Page 2 of 6
Concept Two -Mixed Use - Retail/Housing
Use
Area Building Value
Year Built
Bally's
28,000 $60/sf
2004
Burnsville School
16,400 $50/sf
2004
Retail
5,000 $75/sf
2003
Office showroom
50,000 $65/sf
2003
Housing (50 rental town house)
10 units/acre $150,000/unit
2002
Total
7 acres - commercial /5 acres - residential
Developer land payment
$1,300,000
Present Value of TIF
Gap
Fiscal disparities paid within district
927,244
2,272,756
Fiscal disparities outside district
1,328,059
1,871,941
Concept Three - New Office
Use
Building Area Building Value
Total
Year
Built
Office
50,000 $85/sf
2002
Office showroom
100,000 $65/sf
2002
Total
150,000
Developer land payment
$1.7 million
Present Value of TIF
Gap
Fiscal disparities paid within district
924,182
1,875,818
Fiscal disparities outside district
1,840,023
959,977
EHLERS & ASSOCIATES Page 3 of 6
Concept Four - New Office/New Housing
Use Building Area Building Value Year Built
Office showroom 100,000 $65/sf 2002
Retail 2,500 $75/sf 2002
Housing (60 units senior 15 units/acre $100,000/unit 2002
apartment co-op rental)
Total 7 acres - commercial /5 acres residential
Developer land payment $1.8 million
Present Value of TIF Gap
Fiscal disparities paid within district 691,971 2,008,029
Fiscal disparities outside district 1,207,296 1,492,704
EHLERS & ASSOCIATES Page 4 of 6