U NIVERSITY A VENUE P ROPERTY T AX S TUDY: Part 2: R ELATIONSHIP B ETWEEN L AND U SE & P ROPERTY T AX R EVENUE Bob Spaulding November 1st, 2006

M IDWAY S TUDY A REA: D EFINED TAX STUDY | HOW LAND USE IMPACTS TAX REVENUE Total land valuation for study area: $100,420,800 Median Value per square foot: $19.85/square foot Highest Value per square foot: Skyline Tower and parking lots, $27.83/sq. ft. Lowest Value per square foot: Warehouse, 413 Lexington Pkwy, $3.77/sq. ft. Source: Compiled Data from Ramsey County Records & Revenue Department

F LOOR A REA R ATIO (FAR) : D EFINED TAX STUDY | HOW LAND USE IMPACTS TAX REVENUE Source: Met Council Diagram FAR of 0.5FAR of 1.0 FAR of 1.5 Floor Area Ratio = Building Space Square Footage Land Square Footage Floor Area Ratio (FAR) is a measure of development density. Higher FARs equate to more dense development of a parcel.

C ASE S TUDIES TAX STUDY | HOW LAND USE IMPACTS TAX REVENUE Source: Compiled Data from Ramsey County Records & Revenue Department.51 $36/sq ft $1.15/sq ft 59% full Floor Area Ratio (FAR): Assessed Valuation (2007): Tax Yield (2006): Parking Usage at Peak: 2.12 $84.35/sq ft $2.11/sq ft Floor Area Ratio (FAR): Assessed Valuation (2007): Tax Yield (2006): 1435 University Avenue Prior & University Avenues M ENARD’S W. E. M OWREY C O.

C ASE S TUDIES TAX STUDY | HOW LAND USE IMPACTS TAX REVENUE Source: Compiled Data from Ramsey County Records & Revenue Department.36 $83/sq ft $1.46/sq ft 33% full Floor Area Ratio (FAR): Assessed Valuation (2007): Tax Yield (2006): Parking Usage at Peak:.38 $59/sq ft $1.32/sq ft 59% full Floor Area Ratio (FAR): Assessed Valuation (2007): Tax Yield (2006): Parking Usage at Peak: W ESTERN B ANK CVS P HARMACY 663 University Avenue Snelling & University Avenues

C ASE S TUDIES TAX STUDY | HOW LAND USE IMPACTS TAX REVENUE Source: Compiled Data from Ramsey County Records & Revenue Department 1.36 $52.38/sq ft $1.47/sq ft 47% full Floor Area Ratio (FAR): Assessed Valuation (2007): Tax Yield (2006): Parking Usage at Peak:.19 $28/sq ft 96¢/sq ft 44% full Floor Area Ratio (FAR): Assessed Valuation (2007): Tax Yield (2006): Parking Usage at Peak: A UTO Z ONE 1075 University Avenue NE B LOCK AT U NIVERSITY & S NELLING

C ASE S TUDIES TAX STUDY | HOW LAND USE IMPACTS TAX REVENUE Source: Compiled Data from Ramsey County Records & Revenue Department.37 $33.25/sq ft 92¢/sq ft 375,992 sq ft Floor Area Ratio (FAR): Assessed Valuation (2007): Tax Yield (2006): Land Square Footage: 2.86 $81.99/sq ft $2.83/sq ft 6,098 sq ft Floor Area Ratio (FAR): Assessed Valuation (2007): Tax Yield (2006): Land Square Footage: M IDWAY B OOKS T ARGET Snelling & University Avenues Hamline & University Avenues

FAR ’S R ELATIONSHIP TO V ALUE PER S QUARE F OOT ( 2006) TAX STUDY | HOW LAND USE IMPACTS TAX REVENUE Source: Compiled Data from Ramsey County Records & Revenue Department The higher the density, the greater the value per square foot of land overall.

FAR ’S R ELATIONSHIP TO V ALUE PER S QUARE F OOT ( 2006) TAX STUDY | HOW LAND USE IMPACTS TAX REVENUE Source: Compiled Data from Ramsey County Records & Revenue Department Floor Area Ratio (FAR)Total Property Value in Study Area Current FAR of.72$199 million if we increase FAR to 1…$233 million if we increase FAR to 2…$363 million if we increase FAR to 3…$493 million Floor Area Ratio (FAR)Property Values per Square Foot Current FAR of.72$41.31/square foot if we increase FAR to 1…$48.36/square foot if we increase FAR to 2…$75.40/square foot if we increase FAR to 3…$102.17/square foot Applying the Principle to the Full Study Area… The Basic Principle…

FAR ’S R ELATIONSHIP TO A NNUAL T AX Y IELD PER S QUARE F OOT ( 2006) TAX STUDY | HOW LAND USE IMPACTS TAX REVENUE Source: Compiled Data from Ramsey County Records & Revenue Department The higher the density, the greater the tax yield per square foot of land overall.

FAR ’S R ELATIONSHIP TO A NNUAL T AX Y IELD PER S QUARE F OOT ( 2006) TAX STUDY | HOW LAND USE IMPACTS TAX REVENUE Source: Compiled Data from Ramsey County Records & Revenue Department Floor Area Ratio (FAR)Property Tax Yield for Study Area Current FAR of.72$4.91 million if we increase FAR to 1…$5.74 million if we increase FAR to 2…$8.63 million if we increase FAR to 3…$11.58 million Floor Area Ratio (FAR)Property Tax Yield per Square Foot Current FAR of.72$1.00/square foot if we increase FAR to 1…$1.17/square foot if we increase FAR to 2…$1.76/square foot if we increase FAR to 3…$2.36/square foot Applying the Principle to the Full Study Area… The Basic Principle…

T OTAL O PPORTUNITY C OSTS OF N OT D EVELOPING M IDWAY TO ITS F ULL P OTENTIAL (Summary of Conclusions) T OTAL O PPORTUNITY C OSTS OF N OT D EVELOPING M IDWAY TO ITS F ULL P OTENTIAL (Summary of Conclusions) TAX STUDY | HOW LAND USE IMPACTS TAX REVENUE Source: Compiled Data from Ramsey County Records & Revenue Department Floor Area Ratio (FAR)Total Market ValueTotal Annual Taxes existing FAR of.73$199 million$4.91 million if we increase FAR to 1…$233 million$5.74 million if we increase FAR to 2…$363 million$8.63 million if we increase FAR to 3…$493 million$11.58 million

A VERAGE A SSESSED V ALUE BY U SE Value per Square Foot of Land Area TAX STUDY | HOW LAND USE IMPACTS TAX REVENUE Source: Compiled Data from Ramsey County Records & Revenue Department

Industry Close-Up Look: F AST F OOD VERSUS C ONVENTIONAL F OOD TAX STUDY | HOW LAND USE IMPACTS TAX REVENUE Source: Compiled Data from Ramsey County Records & Revenue Department 6 properties 6 drive-thrus 200,000 square feet land area 20,000 square feet of building Average FAR: properties No drive thrus 61,500 square feet land area 71,100 square feet of building Average FAR: 1.20 F AST F OOD C ONVENTIONAL F OOD

Industry Close-Up Look: F AST F OOD VERSUS C ONVENTIONAL F OOD TAX STUDY | HOW LAND USE IMPACTS TAX REVENUE Source: Compiled Data from Ramsey County Records & Revenue Department $5,000,000 total assessed valuation Average Value per square foot: $25.79 Average Tax Yield per square foot: 77¢ Land four times as valuable as buildings $3,900,000 total assessed valuation Average Value per square foot: $65.28 Average Tax Yield per sq. ft.: $1.93 Building twice as valuable as land F AST F OOD C ONVENTIONAL F OOD