By MaryHelen Swanson

The minds of many were working Thursday, June 15, as North Branch City Council, Economic Development Authority, planning and park commission members met to continue discussions on the future of the city-owned development project Prairie Parkway (formerly known as ESSBY).

The project, which is to include housing, commercial and industrial development, has been before the council for over two years.

During that time, the city has purchased land (one purchase remaining) in the area mostly north of 400th Street, west of Forest Boulevard and west to the freeway.

About 40 acres to the south of 400th are included in this development area and are currently planned for single-family market-price housing.

The industrial area is being planned for acreage along the freeway. About 20 acres is being set aside for a commercial development, such as a convenience store or similar retail. If the county builds its new Health and Human Services building in North Branch, it would be located in this commercial district.

City planner Al Cottingham noted that night that the comprehensive plan would need to be amended to allow the commercial district and rezoning needed for housing.

As the project progresses, the industrial area could be developed in five or six phases, with the commercial area developed in two phases.

In this development discussion, the city is also talking about a utilities improvement project that will cost somewhere between $3.5 and $6.5 million. It would provide a watermain loop and new service along Flink Ave. and 400th from the north end of the new North Branch Marketplace (northwest quadrant of present freeway intersection) to the Prairie Parkway area.

Sanitary sewer, storm sewer and street reconstruction is also included in this project.

The watermain would be needed for the industrial park development area.

Housing concerns

Housing north of 400th was a big issue for many of those gathered at city hall that night.

The original intent of developing housing in this area was to provide housing that is affordable. The name being given to it is ìworkforceî and it includes those who earn up to about $62,000 a year.

Ideally, some of the occupants of the neighborhood would be able to get jobs with the industries that would come in to the new industrial park area.

Theoretically, they would be able to walk to work.

Early on in the planning it looked as if the magic number of homes to make this development feasible was somewhere around 600.

At this session, Sid Inman of Ehlers and Assoc., who had done an analysis of the project, determined that the project would be financially feasible with 66 housing units south of 400th and 284 north for a total of 350 housing units.

However, the analysis used assumptions that extend over a 10-year period and, Inman noted, 10 years is a long time to project a project based on todayís information.

Many factors could change, he said in a memo to the city, that would alter the outcome of the analysis.

For instance, a rise in future interest rates could increase costs to the project.

That would in turn result in increased mortgage rates and that could reduce the sale of homes.

Estimated costs could increase when actual bids are taken.

The state could change the tax increment laws which could have a negative impact on the cityís ability to use TIF.

Currently a developer is projecting that certain lots would sell on the high end, but he would probably have to reduce the price as he tries to sell out the project.

All of these factors, Inman noted, would increase the amount of homes needed to make the project financially feasible.

City Administrator Joe Lynch stressed that the ì350î number will pay for the costs, but not for such things as a bridge over I-35 at 400th.

It was asked what would happen if there was no housing north of 400th.

Inman noted that the city needs to get $57,000/acre for the housing area and $29,000 for the industrial area to come out on this project.

The city would be $1.6 million short in repaying a $5 million debt (for the land purchase and infrastructure) if all the land was sol at the industrial price.

Inman also noted that the $57,000/acre has to be on improved land.

The bond for this project is due in 2009. Inman said the city will have to start levying about a half million dollars in 2007.

The city is well into a planned timeline for the Prairie Parkway project.

On July 17, the planning commission will consider a comprehensive plan amendment, rezoning for commercial and industrial, a preliminary and final plat.

On July 24, the city council is expected to accept a feasibility stud on the Flink Ave. water line project and call for a public hearing.

In August, the city council will consider those items acted on by the planning commission in July and hold the public hearing on the Flink Ave. project.

There was little disagreement among those gathered that night that housing would be needed in the area north of 400th Street. The numbers and kind of housing have still not been determined.

A developer who takes on the housing project will have to come up with a design that will work for the city, Cottingham said.