Ramsey County to make room for new commercial development
As the economy recovers from the so-called Great Recession, many property owners are wondering how to best capitalize on their rising property values. For many, selling the property for redevelopment can be a profitable venture. In some cases, property can be quickly sold and developed, whereas in other situations there are financial and legal hurdles to overcome.
Ramsey County has recently taken steps to make a particular piece of property more desirable for sale and redevelopment. In this case, the county is planning to raze a string of riverfront properties in downtown St. Paul. The property includes seven buildings that used to home county employees before larger spaces were purchased.
The six to 10 story buildings are set into the bluffs and will be completely removed. The estimated cost is around $11.5 million, however, the exact costs are unknown. In particular, the cost to remove asbestos at the site could vary.
The county argues that removing the building is important to any potential redevelopment. While deals to redevelop the area have been discussed in the past, they have always fell through. Concerns over removing the existing buildings have contributed to the stalled plans. Officials estimate that a redevelopment could bring around $7 million in property taxes.
Removing existing properties is just one potential challenge that developers face while considering a new commercial real estate development. Developers need to address these challenges head on in order to avoid financial and legal pitfalls. While some of these issues could be addressed in contracts — like the purchase agreement — others may require legal action in the future. Therefore, property owners and potential developers need proper legal guidance.
Source: Star Tribune, “Ramsey County to raze riverfront buildings,” Jim Anderson, Nov. 25, 2014
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