06-15-1998 Planning Packet - Laserfiche WebLink

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\ City of Long Lake Economic Development Am industrial users is reduced in three ways: cost, availability, and image. The cost of vacant (non productive) land, even with the costs of providing services to it. is simply less than the costs of assembling a parcel of developed (productive) land. Land costs are inevitably lower elsewhere. Vacant land is immediately available for construction. Assembling a parcel in a built district is both time consuming and uncertain. Relocation schedules of affected business complicate the process further. Remediation of the some parts of the site may be required. Promising a “move in" date to the client is a much more confident commitment when starting with a vacant site. A new large industrial user would almost by definition have an image unlike its neighbors, the present businesses in the District. At a vacant site in a developing district the neighbors would probably be very similar in character to the large user. The edges of your parcel would be secure, and performance standards for ensuring the image of the development would be enforced by covenants or by the city. Last, because we are not on the limited access highway network, and because we have no large vacant parcels, and because our business and spaces typically do not use industrial brokers for transactions, brokers and developers simply never visit. We seem to be caught in a trap that prevents us from appearing on the mental maps of the development community. Our market was described as a “resident based niche market". A new user owner or the potential tenants of a new speculative development are expected to come from an owner who is a resident of our area who wants to locate their business close to their home. And, unlike many places in the metro area, this is a potentially strong market for our District. To capture this new market of large industrial businesses not now located in the District, we need to provide confidence to potential investors in two areas. First, that they will be able assemble a site of adequate size. They will not be held up by a single unreasonable or unv/illing seller. Second, the district will be stable and eventually compatible to their investment at their edges. They or the developer will have control over what their neighbors look like and what they do. This means development will be described in terms of subdistricts rather than parcels, and may involve vesting development rights in a "sole source" accountable and responsible for development of parts of the district over time. This also means direct City participation in redevelopment of the District. To capture these new large industrial users and use their Investments to transform the District the City must be prepared to assist its private partners by: