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<br />.,.' ..;' ....",'~>..- ., , <br /> <br />. ' <br /> <br />.> <br /> <br />~ of Paris <br /> <br />Study of Lake Crook <br /> <br />March,.2001 <br />I <br /> <br />professional on staff. The city would certainly obtain a higher price for its land <br />than simply \vholesaling the property en masse to the highest bidder but would be <br />assuming all the risk normally carried by private entrepreneurs. Then, too, there <br />would be substantial backlash as to why the city would compete with private <br />enterprise in the first place. This concept bears mention only because it is an <br />option available to the city. But it deserves only mention, . . <br /> <br />0 <br /> <br />The city could form a non-profit development company, staff it with a <br />director/manager/developer, and deed the land over to it. This \vould not be so <br />much different than industrial economic districts statewide \vhere land is sold at <br />cost to attract industriaVmanufacturing concerns to create jobs. The difference <br />is that this land is being sold so that houses can be built and the job creation is <br />only temporary. Local developers will likely oppose any attempt to create a <br />subsidized, competing, residential neighborhood to compete \vith housing <br />developments citywide. <br /> <br />4.0.2. Economic Development. Several other suggestions have been offered by interviewees <br />during this study. One suggestion \vas that the city give the land away as some kind of economic <br />development incentive to attract a developer and thereby benefit the city through the growth in <br />the tax base. Others suggested the city should help \vith the developn1ent by paying for off-site <br />water and sewer extensions to ready the property for service. <br /> <br />Truthfully, we do not see how the city <br />could give tlte land away since public <br />law clearly provides that landfor sale or <br />exchange, other than to another <br />governnlental entity, Inust be sold by <br />sealed bid <br /> <br />Secondly, there is the logistical question of how the city goes about choosing a developer to grace <br />with its land. Clearly this does not fall under any professional services procurement whereby <br />selection is made on qualifications of the individual or finn. <br /> <br />And fmally, the stewardship question arises as to why the city should even consider giving away <br />land worth admittedly several million dollars. <br /> <br />4.0.3 Risk. Certainly anything worth doing has its own risks. The risk to the city in any <br />subdivision development is that the developer fails to follow through. Depending in which step <br />of development that failure occurs, the consequences to the general public are different. The city <br />may have to take back land it seller-financed or the ,city may see the land distributed to others and <br />have the 'dream' evaporate on the courthouse steps as the land is auctioned offby a commercial <br />lender to satisfy creditors. <br /> <br />Page 38 of 45 <br />