Council Committee Memorandum

Transcription

1 Council Committee Memorandum TO: Joint Council Committee THROUGH: Tim Murray, City Administrator FROM: Deanna Kuennen, Community & Economic Development Director MEETING DATE: November 13, 2018 SUBJECT: Proposed Development Valley Mining Site Quality Forklift Sales and Service Discussion: Over the last number of months, Staff has been working with Quality Forklift to identify a site for their equipment sales and services business in Faribault. Quality Forklift is the largest independent forklift dealer in the Twin Cities providing sales, service, and rental of material handling and compact construction equipment. The company has been given a Letter of Intent to establish a Kubota Tractor dealership in Faribault, which is the largest open market in Minnesota without a dealership. The location will serve a 60-mile diameter area, complement the company s existing network of sales/service centers, and be supported by the corporate headquarters located in Shakopee. The project will consist of: 20,000-22,000 SF building that will house the Kubota dealership, industrial equipment repair/servicing operation, and aerial rentals Estimated $3-$4m investment in the building/site Creation of 8 full-time jobs with full benefits (expected to expand to 15) People # Hourly Salary Wage Est. Sales 1 75,000 75,000 Sales 1 50,000 50,000 Service ,800 Service ,000 Service/assembly ,600 Parts ,600 Admin/Sales/Serv support 1 50,000 50,000 General Manager 1 80,000 80,000 Total 8 463,000 * Sales Team & General Manger can earn $100K plus in Commision/Bonus

2 The company has identified specific criteria necessary to support their Kubota franchise site requirements a minimum 5-acre parcel located adjacent/visible from I-35. Multiple sites have been evaluated and analyzed from a development standpoint, but encumbrances such as zoning, PUDs, pipelines, easements, and storm water retention have rendered the sites insufficient. The most current site under consideration is the Valley Mining property located off Hwy 60 W. This property is appropriately zoned and is of adequate size to satisfy the dealership requirements. However, the site is not shovel-ready and currently lacks access to public infrastructure. To make the site shovel-ready, water and sewer mains need to be extended to the property (likely from both the east side of I-35 and 38 th Avenue SW), and Calvary Dr. would need to be upgraded from its unimproved rural construction to an urbanized roadway. In working with the City Engineer, he estimates that the costs to bring these public improvements to the site would be up to $1.5m depending on the final site layout of the Valley Mining site(s). These costs, if totally passed on to the project, render this site unaffordable. The City Council is being asked to consider contributing to the cost of the infrastructure extensions/upgrades including the roads and utilities to support the development of the Valley Mining site. The improvements will not only support the Quality Forklift project, but

3 they will also support development of a much larger area. The extension of the infrastructure would immediately serve nearly 110 acres, making this land inside the city limits development ready / shovel-ready. It would also set the city up to serve additional acreage in the future (265+ acres) if/when the landowners would petition the City to be annexed. Valley Mining Property / Proposed Quality Forklift Project Site ---- Land inside city limits that could be served by the extension of public infrastructure. --- Land outside the city limits that could be served in the future. Attachments: 1. Valley Mining Site Map 2. Quality Forklift Sales and Service Building Examples from existing locations 3. Quality Forklift Sales and Service Preliminary Site Layout, Valley Mining Property

4 Valley Mining Property Proposed location for Quality Forklift Project

5 Quality Forklift Sales and Service (Also DBA - Quality Equipment Sales & Service Inc.) Kubota - Faribault Minnesota Dealership 11/9/2018 1

6 Building Examples (from Brainerd) 11/9/2018 2

7 Locations & Facilities 587 Citation Shakopee MN 35,000 square foot building & shop on 2.4 acres of land - Houses administration, parts department, shop technicians, logistics, rental and service administration. 11/9/2018 3

8 Locations & Facilities (cont.) 491 Citation Shakopee MN - 14,000 square foot retail office and warehouse on 2.1 acres of land Home of sales team and showroom with visibility to major county highway /9/2018 4

9 Locations & Facilities (cont.) 539 Citation Shakopee MN 12,000 square foot warehouse on 1.6 acres of land - Houses rental fleet and logistics fleet. Connects 587, 539 and 491 Citation into continuous 6.1 acre property 11/9/2018 5

10 Locations & Facilities (cont.) 6246 Hwy 10 NW Ramsey MN 2000 square foot building and shop on.5 acres of fenced in property Focus on construction equipment sales/rental and parts depot for north metro located service technicians. Location receives significant traffic on direct Hwy 10 frontage 11/9/2018 6

11 Locations & Facilities (cont.) 5410 Landmark Dr. Brainerd MN 12,000 square foot building and shop on 5.2 acres of property with additional 7,200 square foot pole building Focus on full line Kubota dealer provides full service, parts and rentals. 11/9/2018 7

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