City Council Minutes 2019 02 05 - Laserfiche WebLink

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City Council Meeting Minutes February 5, 2019 Page 6 of 21 Remainder redeveloped/repurposed for some retail, small hotel, small retail, and 245 multifamily housing units on 7 acres. • Alternative 3 - Major Redevelopment: Comprehensive redevelopment of Parcel 0 into mixed use development with existing retailer and businesses integrated Assumptions of some retail space, some entertainment or fitness use, small hotel, office space and 525 multifamily housing units on 15 acres. Councilmember Maloney asked if the land value has gone up from the 2014 price and noted it is currently on the market for much more than that. Prosser stated it might represent what the value would be under redevelopment versus just a retail scenario Councilmember Stolzmann asked what is inducing the demand for retail in the scenarios and how does development in Superior affect these options. Prosser reviewed the summary table of the different alternatives. He reviewed the market support and challenges in each alternative. • Alternative 1 — demand for larger regional retailers is limited, buildings not conducive to retail requirements, covenants do not support some uses. • Alternative 2 — mix and amount of uses supportable, substantial demand for hotel and multifamily uses, General Development Plan (GDP) and private covenants need to be changed • Alternative 3 — mix and amount of uses supportable over a longer 5-10 year period, allows for better orientation of McCaslin Boulevard, assembly of all properties presents a major challenge and GDP and covenants need to be changed. Financial Feasibility. • Alternative 1 - residual land value = $7 40 per sf, leasing vacant spaces may take longer than desired, ask price for Lot 2 limits redevelopment feasibility • Alternative 2 — most financially feasible, residual land value = $10 94 per sf, hotel and multifamily provide highest land value, mix of uses increases attractiveness and value • Alternative 3 — residual land value = $10 12 per sf, hotel and multifamily provide highest residual land value, office produces the lowest residual land value, assembling the parcels could be challenging and cost may make such a project infeasible Fiscal Impacts. • Alternative 1 produced $17 9 million over 20 years or $895,000 per year • Alternative 2 produced $18 5 million over 20 years or $925,000 per year, strongest fiscal benefit. • Alternative 3 produced $14.8 million over 20 years or $740,000 per year, model shows residential uses trigger marginal cost demand to city services.