Posts Tagged ‘Finance & Commerce’

Clock ticking for Vikings stadium site study

Thursday, August 25th, 2011

The Met Council has contracted with national consultants to begin a study that will analyze issues surrounding the complicated task of redeveloping the largest brownfield “Superfund” site in Minnesota, the Twin Cities Army Ammunition Plant, to build a new Vikings Stadium.  The $1 billion project that would receive funding from the state, Ramsey County, and the Vikings, faces many challenges.  Will it be worth it?  We will eagerly await the results of the report this fall.

From Finance & Commerce

By Burl Gilyard

It’s not clear when or even if a new football stadium will be built in Arden Hills, but local agencies are kicking off the

latest round of studying the site, a complicated piece of real estate.

The sprawling Twin Cities Army Ammunition Plant (TCAAP) in Arden Hills has been proposed as the site for a new football stadium for the Minnesota Vikings. (File photo: Bill Klotz)

The sprawling Twin Cities Army Ammunition Plant (TCAAP) in Arden Hills has been proposed as the site for a new football stadium for the Minnesota Vikings. (File photo: Bill Klotz)

The Metropolitan Council is huddling in negotiations with a national consulting group to study a range of issues on the federally owned Twin Cities Army Ammunition Plant (TCAAP)

site in Arden Hills. North Carolina-based Kimley-Horn and Associates Inc. was the only respondent to the regional planning agency’s solicitation for proposals. A woman who answered the telephone at the St. Paul office of Kimley-Horn referred questions to the Met Council.

On Thursday, Met Council spokeswoman Meredith Salsbery said she could not comment on the value of the contract or the exact deadline for the work because both were still being negotiated. Salsbery said it’s likely the contract will be signed by Friday.

It’s still early in the game, but the aggressive schedule for the project doesn’t allow for many timeouts.

Documents outlining the scope of work indicated that the analysis “should be completed within 45 days.” An Aug. 12 solicitation letter from the Met Council said the work would be valued at “well under $100,000.”

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Posted in Commercial Real Estate, Development, Industry News, Real Estate Trends, Uncategorized, Urban Planning | 4 Comments »

Appeal muddies freight-rail relocation negotiations for Southwest LRT

Monday, August 15th, 2011

Planning of the Southwest Corridor light rail is moving forward but, will current freight trains and some homes and businesses have to be relocated?  How much will that add to the price tag of the project?  These issues must be resolved in order to get the go ahead from the Federal Transit Administration.

By Bill Clements

Finance & Commerce

Welcome to “As the Southwest Corridor Turns.”HiawathaLRT4

In this episode, St. Louis Park accepts an offer from the Hennepin County Regional Rail Authority to negotiate an important freight-rail relocation issue related to the proposed Southwest Corridor light rail project.

Resolving the issue is required if the $1.3 billion project is to get federal approval to move from vision to reality.

But there’s a problem: Hennepin County officials don’t want to talk anymore, citing the city’s decision last week to file an appeal in the courts.

It seems county officials insist they made it clear to their counterparts in St. Louis Park that negotiations were contingent on the city not filing a legal challenge.

“I’d like to talk to them,” Gail Dorfman, a Hennepin County commissioner and former mayor of St. Louis Park, said in an interview Friday. “Except my colleagues feel strongly that we were very clear and we need to let it play out.”

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Lease vs. Own: Deciding Which is Right for Your Business

Thursday, July 21st, 2011

From:  Finance & Commerce

By Matt Boehlke, CCIM

Businesses are constantly faced with tough decisions, but few decisions carry the financial weight and Matt Boehlkelong-term implications that are involved in a company’s real estate.  Should we lease or purchase a property? Both options have several advantages and disadvantages.

Availability of capital can be a huge factor when determining whether to lease or purchase. If a company is flush with cash and has no major purchases or needs in its future, it may make sense to invest that money in a new facility or building.

On the other hand, if a company has a need for the cash on hand or doesn’t have a lot of cash, leasing may be preferable because the initial investment is lower and leasing provides a simple form of financing in itself. Altogether, this could be considered a company’s opportunity cost. Are there better options available to spend capital on, other than real estate?

Available financing factors into the decision as well. Many businesses are able to take advantage of financing from the U.S. Small Business Administration. This allows most to purchase a property with as little as 10 percent down at fairly low interest rates. Many times, other necessary equipment and improvements can be wrapped up in the SBA loan, making the decision to own very attractive. But just because financing is available, does it make sense for your business to capitalize on it?

Read the Entire Article Here

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Posted in Commercial Real Estate, Uncategorized | No Comments »