1996-02-19 Golf Course
". -. f4.
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13736 Johnson Street N.E. . Ham Lake, MN 55304 . 757-4052
February 29, 1996
Dear Honorable Mayor and Council Members:
I would like to make a Golf Course Part of your community. I have worked very hard
trying to come up with a way to make a successful development without compromising
the integrity of the community. Albertville has great potential for a future growth, we
would like to be involved in that growth. Our project can only become a reality if you
allow it. We have made major design concession on our plan thus far and feel that per our
proposal this is what we would need to have a successfully sound ~evelopment. I would
like to work with you to make this happen, and have a 18 hole golf course become reality.
Please read through our proposal and very carefully consider it, I Will be at the council
meeting Monday night to answer any questions.
.
.
The site consists of350 acres which all is within the city limits except the South West 60
acres, which is located in Frankfort Township. The development would consist ofa 18
hole championship golf course open to the public. William Gilles and Associates, a Golf
Course Architect will do the layout of the course and over see construction. The
management team for the course will manage the course full time, they currently are
managing several sites in the metro area and will professionally staff the course. Their
foresight into the golfing industry indicates the course will be a success. The residential
sites will vary in size and price keeping the executive lot on and along the course while
offering more moderately priced homes near county road #19. Along County Road #19 in
the current B-3 zoning we propose 136 units oftownhomes which will be individually
owned. A town house association will be formed to monitor the upkeep of the common
area. The concept of a mix of housing allows all markets to participate.
ANNEXATION - The 60 acre parcel in the SW comer located in Frankfort Township
could become part of Albertville, the city would need to support the application which has
been forwarded to you on this parcel. It is our intent to have it become part of Albertville.
ZONING - Currently the property is agriculture with B-3 along County Road #19. The
entire piece would need to be rezoned.
PLANNED URBAN DEVELOPMENT - Under a PUD it would allow the lot size to
differ from the current R-l. A PUD would be desirable to incorporate the course, the
homes, and the townhomes with flexibility to get the desired density without
compromising the space for the golf course.
PARK - 5.7 acres Park area, centrally located.
DENSITY - A total of 485 sites will be created on 350 acres with a density of 1.4 units
per acre. The total number oflots on the 350 acre site without a golf course under the
current R-l standards could be 590. Our proposal with the Golf Course has 485 sites.
The density will decrease by 105 lots and add a Golf Course.
NUMBER OF LOTS - LOT SIZES -
65 75' Frontage
121 80' Frontage
163 90' Frontage
136 Townhomes
The Single Family Lots would all average 12,500 square feet which is your current R-l
requirement with no lot ofless than 9,000 square feet.
a:/kent2/parksid
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MUNICIPAL FINANCIAL PARTICIPATION - No financing participation is required
from the city. Developer will in-house finance the entire development process. The
course will consume approximately 120 acres. To offset the green space set aside for the
Golf Course, the need to increase density in the residential area is critical. The 30
additional lots that will be created by decreasing the lot size, along with increased revenue
of lot sales along the course will defer costs to insure a successful development plan. This
is the way we can fund the course without coming to the city for financial assistance.
ABSORPTION - If strictly executive housing is targeted, one must look at who the
buyers are, and how many can be sold on a yearly bases. The market is drawn by desire of
location, amenities to the area, and market demand.
If you look at how many upper bracket ($150,000.00 plus) homes have been built on the
city lots in the Albertville, St. Michael, Monticello, Otsego, and Frankfort areas you will
find that Albertville could conceivably, under current conditions and amenities, support 10
sales per year. With an amenity such as a golf course being added, this number could
triple. The number of sales increase drastically if you look at $100,000 to 150,000 homes.
This market of home, the absorption rate increases ten times to 100 homes per year.
If the parcel would develop under current R-l conditions with no golf course the project
would probably be very similar to the two active developments in town now. The homes
would be built on a 90' x 140' lot in the middle ofa wide open field and would bring a
market value of 105 - 140,000. If you look at trying to market all 150,000 homes without
adding a draw (lake, river, golf course) it would be an economical disaster. The need for
the golf course to draw the executive style home is critical.
a:/kent2/parksid
.
.
Real Estate Tax Benefit 75' Lots Vrs. 90' Lots
On a Straight running street you can get 6 - 75' lots for every 5 - 90' lots so
you benefit 1 lot per 450' of street. Houses cost the same weather you build
on a 90' lot or a 75' lot, the only difference is the cost of the lot and what the
market will pay. Based on the market in Albertville a 90' lot will sell for
$29,000.00. Based on the market and our expertise a 75' lot would sell for
$25,000.00. Below are the examples of the benefit of75' lots. The city
benefits in Revenues while not incurring any extra expenses (I.E. Snow
plowing, maintenance help & street upkeep). By maximizing the density in
an area it allows more green space and less streets that need maintenance in
the future.
90' Lot
75' Lot
$29,000.00 Lot Price
$90,000.00 House Price
$119,000.00
X 5
$595,000.00
X (1.25792) Mill Rate
$7,484.00 Per Year RE. Taxes
$25,000.00 Lot Price
$90,000.00 House Price
$115,000.00
X 6
$690,000.00
X (1.25792) Mill Rate
$8,679.00 Per Year RE. Taxes
Loss of$I,295.00 Real Estate Taxes per year on 90' lots.
Developers Benefits - PUD density allows the set aside of green space for
the golf course to make a golf course a reality without asking the City of
Albertville for financial assistance on the development.
City Benefits - The project is successful because of the flexibility of the
pricing of homes which opens the market to different buyers instead of
concentrating on only one market. The development develops faster adding
money to the city more rapidly. The city has foresight to see how the area
will develop because the entire area is planned. Increase (20%) of real estate
taxes on area used - more tax dollars for the city.
a:/kent2/parksid
.
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OUR INTENT
We would bring on the 1st phase of 50 to 100 homes the summer of 1996. The 1st phase
would be on the Becker Farm off County Road #19. Kenco will act more as a land
developer on this project, while building some of the homes, other builders will have the
opportunity of building on the lots. The executive lots will possibly have a pool of
builders with a wide variety of homes and models. The sale price of the homes would be
in the 100,000 to 300,000 range. The Golf Course construction would start the summer
of 1996 with construction thru spring of 1997. The club house would be built in the
summer of 1997. Grass would grow thru 1997 with a grand opening in June of 1998.
/ &-/7:,'1)
( JiSW
a:/kent2/parksid
'., .
.
.
ITEMS NEEDED FOR APPROVAL
· Approval of concept.
· Preliminary Plat approval of entire site.
· Surety the course will be built.
· Rezone Property.
· Support Annexation of 60 acres from Frankfort.
· Allow number of units as listed on proposal.
· Conditional use permit for golf course.
· Allow the construction of club house and maintenance structure.
· Liquor license for the club house.
· Allow building of backstop for driving range.
· Allow 20' X 40' billboard along County Road #37 to advertise Golf Course and
homes. Additional Signage along County Road # 19.
· Developers agreements for street construction.
Here's a couple ideas the city could accept for surety that the Golf Course will be built
while allowing construction of the subdivision.
1. Allow construction of the course and the subdivision to proceed, however only allow
the 1st phase or 70 acres of the subdivision. The 2nd phase could not proceed until
the course was complete or if it did proceed the lots would increase in size so the max
density of the 1st and 2nd phase frontages would equal 90' (i.e. 100 - 105' fronts in
the 2nd phase).
2. Increase the grading subdivision bond on the 1st phase by $500,000 until grading is
complete on the course.
3. Allow the Golf Course and the subdivision to proceed at the same time allowing a
limited number of occupancies or the homes until the course is substantially graded.
a:/kent2/parksid
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eIn OF M.RER-rvILLE
waIGH'!' COUIftY, HI101ESOI'A
ORDIRARCE RO. 1:'1996-8
AN ORDINANCE AMENDING INTERIM ORDINANCE 11995-12,
EXTENDING THE ONE YEAR MORATORIUM PROHIBITING THE DEVELOPMENT OF
TWO-FAMILY DWELLING UNITS IN NEW PLATS WITHIN R-3,
RESIDENTIAL SINGE AND TWO-FAMILY ZONING DISTRICTS
THE CITY COUNCIL OF THE CITY OF ALBERTVILLE, MINNESOTA, ORDAINS:
Section 1. Section 4A of Ordinance No. 1995-12 is hereby amended
to read as follows:
Section 4A. Temporary Prohibition. Unti 1 October 1,
1996, or until such earlier time as the Albertville City
Council determines by resol ution that the reasons for
said moratorium no longer exist, no building permits
shall be issued for two family dwelling units within R-3
zoning districts. Exceptions to this section shall
include the following:
(1) Building permits associated with projects on lots of
record or on lots which have received preliminary plat
approval prior to the effective date of this ordinance.
(2) Lots in developments which have previously been approved
by written agreement with the City.
Section 2. This ordinance shall become effective immediately upon
its passage and publication.
ADOPTED BY THE ALBERTVILLE CITY COUNCIL THIS 1st DAY OF APRIL,
1996.
Michael Potter, Mayor
ATTEST:
Linda Houghton, City Clerk