The Worthington Economic Development Authority discussed potential plans to market the 7.23-acre Cemstone property on Sherwood Street during its meeting Tuesday afternoon at City Hall.
The EDA is acquiring the property via a land swap of an equal number of acres located in the EDA's North Industrial Park. City staff has fielded inquiries from parties expressing interest in the Sherwood site and were requesting guidance from the EDA in valuing the property prior to initiating advertising, marketing and requesting proposals.
Worthington City Administrator Steve Robinson said Tuesday that there are “two parties anxious to start discussions,” adding that both have owned and operated successful businesses in Worthington.
The value of the property received by Cemstone in the North Industrial Park includes the market value of the land itself plus the assessment costs the city has incurred since the initial development more than 12 years ago. That calculates to a total of $163,926.17.
Meanwhile, the Nobles County Assessor's office has established the estimated market value of Cemstone's Sherwood Street parcels at $270,500, which includes land and all buildings. Feedback from the EDA indicated that the city should not consider selling the Sherwood Street property for less than approximately $175,000 – or, the sum of the value of the North Industrial Park property and transactional costs that would be associated with the sale of the Sherwood Street property.
City staff, along with municipal advisors Ehlers Inc., has begun the process of establishing a Redevelopment Tax Increment Financing District. The district -- known as TIF District No. 19: Sherwood/Lake Street -- includes Cemstone's Sherwood Street property and the former gas station property at 106 Lake St. Tax increments collected from the TIF District will enable the EDA to facilitate redevelopment of the former Cemstone and gas station sites.