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Concept Master Plan <br />Ryan Companies has developed a conceptual Master Plan that maximizes usable space <br />and best addresses, from a cost per square foot basis, the environmental and geotechnical <br />issues that need to be overcome. This block is best suited for an approximate 160,000 SF <br />building elevated above grade with a single level of parking as the first floor above grade. <br />In recent discussions, the MPCA has signaled that development on top of a dump when <br />the first floor is separated from grade may be allowable. This concept also allows use of <br />more surface parking, which lessens the need for structured parking, while maximizing <br />square footage. Ryan Companies staff will provide greater details on the Master Plan, as <br />it pertains to Block B, during the meeting. <br />Financial <br />Undoubtedly, any prospective user of Block B will require financial assistance to <br />overcome the environmental challenges. The most recent version of the New Brighton <br />Exchange Financial Dashboard anticipates a finished market value of approximately <br />$100/SF, which translates into $2.8 million of TIF on a 100,000 SF building, assuming <br />construction in 2020. Ryan Companies has indicated hard costs will range in the $180- <br />$200/SF range. Typically, in New Brighton Exchange the City has used land sale <br />proceeds as credits towards environmental costs. Block B's challenges are significant in <br />that land sale proceeds may not be sufficient to close the gap. However, $2.8 million of <br />TIF isn't available at this time to assist in development of Block B because the City still <br />needs TIF to meet debt obligations within New Brighton Exchange. As such, if/when a <br />user for Block B materializes; the City will have to weigh the cost/benefit of needed <br />assistance to overcome environmental challenges, against the anticipated market value of <br />the development, the total tax increment expected, and increment still needed to meet <br />debt obligations within the district. <br />BLOCK D <br />Use <br />Block D has been planned for office uses. However, with more heavy industrial users to <br />the north (including a trucking terminal), staff would recommend the EDC consider <br />allowing a tech/flex use on Block D. Allowing a use with tech/flex space would provide <br />a good transition from existing industrial uses to the north and the more predominately <br />office uses already in New Brighton Exchange. Also, the City could take advantage of <br />the stronger industrial land development market, realize development earlier, and <br />potentially accommodate a larger building. Ryan Companies and Colliers staff can speak <br />more about what a tech/flex user might be/look like. <br />Environmental <br />Block D is the least studied block in New Brighton Exchange as it was one of the first <br />properties purchased. The site consists of fill soil and is largely a remnant of the former <br />Darling rendering plant. Staff's historical understanding is the area now known as Block <br />D was used as a settling pond for rendering wastewater, which was eventually removed. <br />Staff believes the soil is clean and not impacted by Old Miller Dump. However, phase I <br />and II environmental investigation and testing will likely be required for any future user. <br />Additionally, while not impacted by dump material, future users will be required to <br />