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Home My WebLink About2007 05-21 CCM Work Session MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA I- 694 /HWY 100 REDEVELOPMENT WORK SESSION MAY 21, 2007 CITY HALL COUNCIL CHAMBERS CALL TO ORDER The Brooklyn Center City Council met in Work Session called to order by Mayor Tim Willson at 6:05 p.m. ROLL CALL Mayor Tim Willson and Councilmembers Kay Lasman, Mary O'Connor, Dan Ryan, and Mark Yelich. Also present were City Manager Curt Boganey, Community Development Director Brad Hoffman, Interim Assistant to the City Manager Gary Eitel, and Deputy City Clerk Camille Worley. INTRODUCTIONS AND RECAP OF THE PREVIOUS MEETING Tom Whitlock, Damon Farber Associates introduced Gen McJilton and Mark Nordland from Ryan Companies. He stated Cresa Partners were not able to attend the meeting; therefore their presentation should be removed from the agenda. Mr. Whitlock recapped the previous meeting by summarizing the surrounding land uses, freeway access, transit center access, visibility, trail way and pedestrian connections, and short and long term strategies. REVIEW OF EIGHT (8) RECENTLY REDEVELOPED SITES WITHIN THE METRO AREA OF SIMILAR SIZE, OFFICE /SHOWROOM USE OR OF SINGLE TENANT OFFICE SPACE FOR COMPARISON PURPOSES Mr. Whitlock discussed the following recently developed comparable sites: Best Buv Corporate Cambus City: Richfield, MN Site Area: 41.3 Acres Use: Commercial Buildings: 4 Office Towers, 1 Parking Structure Building Square Footage (approx.): 1,590,000 Freeway Access: Good Site is adjacent to intersection of HWY 494 and Penn Ave. interchange Number of Employees: 4,000 Average Salary: $45,000 $75,000 Site Taxable Market Value: $141,582,000 04/16/07 -1- Allianz Life Insurance Comnanv North America Headauarters City: Golden Valley Site Area: 11.85 Acres Use: Commercial Buildings: 2 Office Towers, 2 Parking Structures Building Square Footage (approx.): 800,000 Parking Type: Off street surface and ramp Freeway Access: Good Site is adjacent to intersection of highway 394 and Park Place Ave. interchange. Close to downtown Minneapolis. Number of Employees: 2,450 Average Salary: $45,000 $75,000 Site Taxable Market Value: $51,887,000 Medtronic World Headauarters City: Fridley Site Area: 42.0 Acres Use: Commercial Office Buildings: 12 Office Buildings and Parking Structures Building Square Footage (approx.): 1,500,000 Parking Type: Off street surface and ramp Freeway Access: Good Site is accessed from the intersection of highways 694 and 65. Number of Employees: 1,100 Average Salary: $70,000 Site Taxable Market Value: $41,126,500 Hartford Life City: Woodbury Site Area: 55.3 Acres Use: Commercial Buildings: 1 Office Towner Parking Type: Off street surface Freeway Access: Good Site is adjacent to intersection of highway 694 and 94 interchange Site Taxable Market Value: $20,345,000 West Health Campus City: Plymouth Site Area: 25.6 Acres Use: Medical Practice and Office Buildings: 2 Office Buildings Parking Type: Surface Freeway Access: Good Site is adjacent to intersection of 494 and 55 Average Salary: $45,000 $75,000 Site Taxable Market Value: $27,826,000 Excelsior CrOssinQs Office Campus City: Hopkins Site Area: 26.85 Acres Use: Commercial Office Buildings: 3 Office Buildings Building Square Footage (approx.): 250,000 200,000 235,000 Parking Type: 3 Parking Structures Freeway Access: Good Close to 169 with access to north or south to 694 and 494 respectively Number of Employees: 1,700 Cargill in 2 of 3 buildings Average Salary: $45,000 $75,000 Site Taxable Market Value: $130,000,000 Carlson Parkwav City: Minnetonka Site Area: 21.25 Acres Use: Commercial Office Buildings: 2 Office Buildings and 2 Parking Structures Building Square Footage (approx.): 430,000 Parking Type: Off street surface and ramp 05/21 /07 -2- Freeway Access: Good A short distance from 394 Average Salary: $45,000 $75,000 Site Taxable Market Value: $25,515,500 Meridian Crossinus City: Richfield Site Area: 9.6 Acres Use: Commercial Office Buildings: 2 Office Buildings and 2 Parking Structures Building Square Footage (approx.): 400,000 Parking Type: Off street surface, ramp and underground Freeway Access: OK Access from 35W via Lyndale Ave S. Average Salary: $45,000 $75,000 Site Taxable Market Value: $45,868,000 Carlson Center Showroom City: Plymouth Site Area: 8.9 Acres Use: Office Showroom Buildings: 2 Office Buildings Building Square Footage (approx.): 60,000 Parking Type: Off street surface Freeway Access: Good Access from 494 and Carlson Parkway Average Salary: $23,000 $75,000 Site Taxable Market Value: $4,070,000 Ea ale Lake Business Center City: Maple Grove Site Area: 9 Acres Use: Office Showroom Buildings: 1 Building Square Footage (approx.): 86,500 Parking Type: Off Street Surface Freeway Access: Good Centrally located between the intersections of 169 and 61 from 694 Average Salary: $23,000 $75,000 Site Taxable Market Value: $5,882,749 Mr. Whitlock discussed expectations of the site and explained that for a Corporate Office Use the City could expect a building size of 350,000 square feet with an average taxable value of $17,000,000 and 1,000+ employees earning on average $45,000 $75,000 annually. He also explained that for an Office /Showroom Use the City could expect a building size of 108,000 square feet with an average taxable value of $7,400,000 and 250+ employees earning on average $23,000 $75,000 annually. RYAN CONSTRUCTION GEN MCJILTON MARK NORDLAND DISCUSS OPINION OF LONG AND SHORT TERM APPROACHES TO REDEVELOPMENT AS WELL AS HOW THEY CAN SERVE THE CITY IN THIS PROCESS Ryan Construction representatives discussed several Ryan Construction projects and how they compare to the I694/I94 site. There was discussion on Tax Increment Financing, parking costs and need of structured parking, and employee earnings. There was also discussion on the job market and the effects of such a development on the employment of Brooklyn Center residents. There was discussion on how Ryan Construction could assist the City with the development. Mark Nordland, Ryan Construction discussed the process they would take to determine the capacity of the property. He discussed the available staff, establishing a purchase price, and anticipated tax base for the City. He also discussed reasonable expectations for taxable value for 05/21/07 -3- the site. He stated a mid -level office type use would equal a market value of $15,000,000 $30,000,000. He explained the difference between 30% and 50% land coverage and how it affects the taxable value. He discussed timelines for different uses. He discussed land use valuation and the effects of the land value if the City chooses to hold the property for a longer period of time. City Manager Curt Boganey stated staff will consolidate the presented information and create options for City Council consideration. ADJOURNMENT Councilmember O'Connor moved and Councilmember Lasman seconded adjournment of the City Council Work Session at 7:33 p.m. Motion passed unanimously. 05/21/07 -4- STATE OF MINNESOTA) COUNTY OF HENNEPIN) ss. Certification of Minutes CITY OF BROOKLYN CENTER) The undersigned, being the duly qualified and appointed City Clerk of the City of Brooklyn Center, Minnesota, certifies: 1. That attached hereto is a full, true, and complete transcript of the minutes of the 1- 694/94 Redevelopment Work Session of the City Council of the City of Brooklyn Center held on May 21, 2007. 2. That said meeting was held pursuant to due call and notice thereof and was duly held at Brooklyn Center City Hall. 3. That the City Council adopted said minutes at its May 29, 2007, Regular Session. �J 1 IIOJV A-laAdom City Clerk Iayor�' I 04/16/07 -5-