The URL can be used to link to this page

Home My WebLink About6.a. CMC Concept PUDe CITY OF, ROSEMODNT EXECUTIVE SMOMY FOR ACTION CITY COUNCIL MEETING DATE: APRIL 21, 1992 AGENDA ITEM: CMC CONCEPT PUD AGENDA SECTION: NEW BUSINESS PREPARED BY: RICHARD PEARSON, ASSIST.PLANNER AGENDIT& #wwroM 6A ATTACM1ENTS: PLANNING COMM. REVIEWS, CONCEPT APPROVED BY: PUD, EXCERPT FROM CURRENT COMP. GUIDE PLAN . CMC Heartland Partners of Chicago, Illinois, is requesting the City Council to informally review a concept PUD that will develop residential uses of three different densities. The discussion and direction provided by Council will then enable the developer to return in May with a revised proposal for formal consideration. The anticipated project will need approvals of a Guide Plan Amendment, Rezoning, PUD, Preliminary Plat and Site Plan Review. The site involves 226 acres of land north of 145th Street and C.S.A.H. 42 extending to the Chicago Northwestern Railroad line. The site is bounded on the west by Biscayne Avenue and extends east approximately one mile. The land is currently zoned Agricultural with a current comprehensive guide plan designation for Urban Residential. The site was brought into the MUSA for a proposed Industrial use (marshalling yard) that was not developed. The project would involve residential Sot Single family with standard lots lot Single family with small lots at loo Multi -family in attached housing densities of approximately: at 2.5 dwelling units per acre,(R-1); 3.2 dwelling units per acre (R -1C); at 6 dwelling units per acre (R-2). The Guide Plan designation of Urban Residential does not specifically address the appropriate density for the area. Therefore, staff and the Developer are requesting Council direction on the following questions: Is the Guide plan designation of Urban Residential still appropriate and should the rezoning be considered? If the site is rezoned for residential uses, then should the densities be any higher than 2.5 dwelling units per acre (as is typical for R-1)? If higher densities are warranted, then are the proposed locations and amounts of higher densities appropriate? The Planning Commission indicated general support for the project and identified several concerns. 1) The proposal should consist of larger lots and lower density. 2) The proposal's traffic impact on 145th Street should be examined. 3) A copy of the marketing study supporting residential development for this site be provided. 4) The design of the development should include extensive buffering along the Chicago Northwestern railroad line. RECOMMENDED ACTION: No formal action is requested at this time for the proposal. The applicant is expected to revise the proposal as a result of this informal review. COUNCIL ACTION: of (Rosemount PHONE (612)4234411 2875 • 145th Street West, Rosemount, Minnesota FAX (612) 4235203 Mailing Address: P.O. Box 510, Rosemount, Minnesota 55068-0510 TO: Planning Commission FROM: Richard Pearson, Assistant Planner DATE: April 9, 1992 SUBJ: April 14, 1992 Regular Meeting Reviews Agenda Item 3(a) ATTACHMENTS: Concept P.U.D. City of Rosemount Comprehensive Guide Plan - Page 9 3a. C.M.C. Concept P.U.D. - DISCUSSION MAYOR Edward B. McMenomy COUNCILMEMBERS Sheila Klassen James (Rat) Staets Harry Willcox Dennis Wippermann ADMINISTRATOR Stephan Jilk Recommended Action: No motion is requested at this time. The Applicant is preparing a conceptual Planned Unit Development proposal that should be ready for formal Planning Commission review and recommendation on April 28, 1992. CMC Heartland Partners of Chicago, Illinois, will be requesting the approvals necessary to develop 226 acres of land between C.S.A.H. 42 and the Chicago & North Western Railroad tracks east of Biscayne Avenue for residential uses., CMC Heartland is asking for the Planning Commission's review and comments at this time so that the refined project will have the benefit of direction from the Planning Commission and ultimately, the City Council. SITE CHARACTERISTICS The site has constraints as well as opportunities. The Railroad line to the north will require buffering. There are two underground natural gas pipelines that traverse the site. The topography is generally level in the west, and becomes gently rolling towards the east. At least two wetland or ponding areas will also be included on the site. Few trees exist on the site beyond the existing farmstead. The County Highway Department has a garage located adjacent to the northwestern corner of the site. Eight single-family houses with direct access to 145th St. West are adjacent to the southwest corner. LAND -USE ISSUES The land is currently zoned for Agricultural use, but is within the Metropolitan Urban Services boundary. A Major Guide Plan Amendment will be required however, because the land was intended to be developed for an industrial use when it was placed in the MUSA. Discussions regarding the updated Comprehensive Plan have suggested that this parcel along with the land immediately north of the Chicago Northwestern Railroad line be designated Urban Residential. This important land -use issue will have to be resolved as a preliminary part of this process. The Dakota County garage parcel is zoned Public and the existing single-family parcels are zoned R-1. 6verylking s (90ming Ub Rosemounl Y t � rervc�M naner April 14, 1992 Planning Commission Packet CMC Page Two STAFF CONCERNS A considerable amount of discussion has occurred between the applicant and city staff regarding this proposal. As part of the Transportation component to the Comprehensive Plan, Bacardi Avenue will eventually extend south from 135th Street; cross the Chicago Northwestern Railroad line and connect with C.S.A.H. 42. The access to C.S.A.H. 42 should be located across from the median cut approximately 450 feet east of the farmstead driveway. The proposal indicates a collector street access to 145th St. West near the intersection to C.S.A.H. 42. Staff believes that the intersection should be studied for possible re -alignment. The Comprehensive Parks Plan specifies that a 10-15 acre neighborhood park should be located on or near the farmstead. The proposal indicates that the project will generally consist of single-family detached housing with some attached housing located in areas that require buffering for R-1 under FHA guidelines. Traffic generated from the attached housing should not impact the local streets of the low-density housing. The proposed densities that the developer wishes to achieve are as follows: R-1 with a density yield of 2.5 dwelling units per acre (a code -consistent lot); R -1C with a density yield of 3.2 dwelling units per acre (requiring sub -standard lots); R-2 with a density yield of 6 dwelling units per acre (attached housing). The Applicant has not shown staff how the 3.2 dwelling unit yield will be achieved. The attached housing component will probably consist of a variety of townhouses. Site plan review would be appropriate for attached housing and would thus provide the city with an enhanced level of control over the resulting project. Staff considers the R -1C density yield to be medium density residential as referred to in the current Comprehensive Guide Plan. The Planning Commission is requested to examine the issues of land -use location relative to the over-all site as well as the housing densities and how those densities are achieved. Furthermore, the Commission is asked to discuss whether this site should have densities higher than R-1 Single Family Residential. 11 RESIDENTIAL LAND USE & HOUSING PLAN Objectives 1. To encourage a balance of new low, moderate and upper income rental and owner occupied housing. 2. To participate in programs which maintain or improve the social and physical integrity of the existing housing stock. 3. To encourage development of new housing in a quality living environment which is healthy, safe, economical and convenient to work, shopping and schools. 4. To provide for the continuance of an alternate life-style in the City for families desiring large lot, low density living. 5. To meet the City's full -share housing goals as defined by the Metropolitan Development Guide. 6. To strengthen neighborhoods and protect them from adverse influences. Plan Elements High Density Residential (Urban Service Area) High density developments are intended to be located within or near downtown Rosemount where utilities and streets are sufficient in capacity to accommodate the impacts associated with higher density and where maximum shopping and recreational convenience is avail- able within close walking distance. They are to be located adja- cent to a commercial area, a park or public open space and have direct access to a major street as defined by this plan. Typical housing types include high rise and garden apartments and town- houses. Specifically, high density is defined as being greater than six units/acre, consisting exclusively of multi -family housing. Medium Density Residential (Urban Service Area) Medium density residential areas comprise the remainder of the Urban Service Area committed to residential usage. The full range of housing types are proposed (e.g., single-family detached and attached homes, mobile homes, duplexes and quadrominiums), with the exception of high rise apartments. Densities are from two to six units/acret with an intended overall average or base density of three units/gross acre. Clustering and density transfers are allowed within the guidelines established by this plan. Cluster- ing is intended to be employed especially in situations where steep slopes, (12% and up), undevelopable soils, surface waters or quality vegetation can be preserved and Incorporated with the development and furthermore, where negative influences inherent in major streets, railroad lines or non-residential uses can be miti- gated by clustering. Density allowances are intended to encourage clustering and energy conservation. Permanent open space and natural resource preservation are intended to be by-products of clustering. Rural Residential (Rural Service Area) Within the Rural Residential Area, only very low density 0 unit/5 acres with a minimum lot size of 2.5 acres) single family detached housing with on-site utilities is proposed to 1990. The fundamental role of this housing type is to satisfy a continuing demand for a residential life-style which is characterized by a rural, open space setting. It should be noted that ' this area has been programmed into the Comprehensive Sewer Plan for service sometime after 1990. While this may not occur until well after the turn of the century, it is intended that the ability to re - subdivide the area into serviceable lots be preserved. Low & Moderate Income Housing In spite of the fact that Rosemount has been very responsive to the housing needs of low and moderate income people in the past, it intends to increase the availability of elderly, large family, and low and moderate income family housing. Emphasis during the next decade will be placed on the provision of rent and mortgage subsidies for existing and new units, the provision of elderly housing and the continued development of modest cost market rate housing. It is intended that multiple housing complexes be scat- tered and relatively small (30 units or less in size) and meet the locational criteria established for all multiple dwellings. A scattered site concept is proposed for publicly owned low income single family housing. CMC ROSEMOUNT DEVELOPMENT Preliminary Concept Plan April 9, 1992 DEVELOPER CMC HEARTLAND PARTNERS CHICAGO, IL 312 294 0440 LOCAL REPRESENTA77VE WMENOMY, HANSON, CARROLL & WCANN ROSEMOUNT,MN 612 4231155 ARCHITECTAND PLANNERS BOARMAN KROOS PFISTER & ASSOCIATES MINNEAPOLIS, MN 612 339 3752 JOHN C. JOHNSON BROOKLYN PARK, MN 612 566 6158 McMENOMY, HANSEN, CARROLL & McCANN A PROFESSIONAL ASSOCIATION ATTORNEYS AT LAW DAKOTA CENTRAL OFFICES 1446 SOUTH ROBERT TRAIL ROSEMOUNT. MINNESOTA 55666 EDWARD B. MCMENOMY TELEPHONE- 161214211155 REID 1 HANSEN KEVIN P. CARROLL TELECOPIEM 01B 4211157 MICHAEL C. McCANN April 9, 1992 Mr. Al Meyer, Chairman Rosemount Planning Commission Rosemount, Minnesota RE: Proposed Residential Development Dear Chairman Meyer and Commissioners: On behalf of CMC Heartland Partners, I am pleased to present this Preliminary Concept Plan for your review and comment. CMC Heartland Partners is interested in producing a quality residential development on land east of Downtown Rosemount. The parcel, which consists of approximately 226 acres, is owned by the Chicago Northwestern Railroad and is currently under option by CMC Heartland Partners. The primary interest at this time is to work with the City of Rosemount to obtain the necessary municipal approvals for this parcel within the time frame defined by the option agreement. In order to accomplish this we are submitting this Preliminary Concept Plan for your review and comment. Following review of this preliminary concept plan by the Planning Commission and City Council, we will prepare a formal Guide Plan Amendment and Subdivision PUD which will request the following: 1) Approval of the Concept Plan/Planned Unit Development. 2) A change in Guide Plan designation from Agricultural to Urban Residential. 3) A change in the zoning designation from Agricultural to Urban Residential. Our research indicates there is a strong market in the Rosemount area for entry level and middle market residential. We are interested in developing our land resources into an economically productive and socially responsive residential community, and we welcome the:opportuni to work with the City of Rosemount on this venture. Sincv. Re M I Contents 1.1 Property Description 2.1 Transportation Systems 2.2 Land Use/Guide Plan 2.3 MUSA & Utilities 3.1 Natural Features 4.1 Concept Land Use Plan 1.1 Property Description _ The proposed project development consists of a 226 acre parcel located east of Downtown Rosemount. The site Is owned by the Chicago Northwestern Railroad and is currently under option by CMC Heartland Partners. The site has excellent visibility and access from County Road 42, and good access to Downtown Rosemount via 145th Street The site is currently used for agricultural purposes, and has a farmstead consisting of two houses, a bam, several sheds and two silos near the center of the site. The western half of the site Is relatively flat, and the eastern half is gently rol ing. CMC Heartland Partners Is a real estate development company that Is a continuation of the Milwaukee Road Railroad which was founded In 1647. Through its long history, the company has been an important partner In the growth and development of many major metropolitan areas. CMC Heartland Partners manages and develops commercial, residential and Industrial real estate In thirteen states, principally in Wisconsin, Illinois, 42 Minnesota and Washington. CMC Heartland Partners Is owned by Heartland Partners, L P., a master limited partnership listed of the American Stock exchange as AMEX:HTL 2.1' Transportation Systems proposed development is located in the jThe southeastern quadrant of the Twin Cites Metropolitan Area, and is located approximately 20 miles south of the Downtowns of Minneapolis and St. Paul. The primary north/south roadways i that connect the she to the Metropolitan area are Interstate 35W, Cedar Avenue (Highway 77), and Highway 52. Both 35W and Highway 52 provide connections to cities to the south of the Metropolitan area as well. County Road 3 Is a two lane arterial that provides the most i Immediate north/south connection. County Road 42 defines the southern edge of the she, and is the primary east/west roadway and links the site to the north/south arteries. The 1988 average dally traffic count on County 42 was approximately 12,000 vehicles west of Cotmty Road 3 and approximately 8,000 east of County Road 3. it Is anticipated Biscayne Avenue will be upgraded from its current status as a gravel road to a paved collector street as part of this project. Bacardi Avenue is proposed to be extended from the north to Intersect with County 42, but the actual crossing of Bacardi at the C&NW rah line Is problematic and should be reconsidered given the topographic and alignment Issues. j The proposed development is located approximately 12 miles south of the existing Minneapolis St Patti international Airport and the iMal Of America. The site Is outside the Airport Search Area, which is a 100,000 acre area defined by the Metropolitan Councl in which a future new airport may be located. The decision j to build a new airport or retain the existing airport Is scheduled to be made In 1996. Two railroad lines are in the area of the proposed development. The Chicago Northwestern { Railroad fine runs northeasterly along the site, and a Soo Une track runs northerly out of i Rosemount. These two tracks combine into one joint track operated by the Soo Une that runs southerly out of Rosemount. 2.2 Land Use/Guide Plan I The 1990 Rosemount Land Use Plan shown at left Illustrates existing and proposed land use adjacent to the proposed development. The property directly to the south of the she across 145th Street is a combination of townhomes, single family detached, and public/Inst@utional. i Immediately adjacent to the site on the west end Is a small development of newer single family homes (Kane Place), and the Dakota County Highway facility. The area south of County 42 is designated to I remake Agricultural and Public/Instftutionai, i which is consistent with Its designation as part of the Airport Search Area. The areas east of the Site and northwest of the site are designated Agricultural, and the small area west of the ske j across Biscayne is designated Industrial. The primary commercial corridor of Downtown Rosemount Is mated along Highway 3 from 145th Street south to County 42. it can be l expected that this area will continue to be upgraded with commercial uses, but that It will be in competition with commercial land along County 42. The Guide Pian is currently under review by the City of Rosemount, and modifications to the existing Guide Plan designations are being 1 considered. LEGEM ---- 1990 URBAN SERV. AREA jj Ph PUBLIC: INSTITUTIONAL POS. PRESERVATION OPEN SPACE ' OI GENERAL INDUSTRIAL 1111 IP INDUSTRIAL PARK CC COMMUNITY (CBD) COMMERCIAL i HC HIGHWAY COMMERCIAL GC GENERAL COMMERCIAL I CHC CONVENIENCE COMMERCIAL AN MON DENSITY RESIDENTIAL RR RURAL RESIDENTIAL A6 AGRICULTURAL ■.�■ MISSISSIPPI RIVER CRITICAL AREA i MAJOR STREETS UNDESIGNATED: MEDIUM DENSITY RESIDENTIAL 1 I i a i' G 2.3 MUSA & Utilities The existing Metropolitan Urban Service Area (MUSA), defined in the drawing at left Identifies the site as being included within MUSA boundaries. When the site was brought Into the MUSA, it ".designated as anticipated Industrial land, and this Guide Plan Amendment requests this parcel designation be changed to residential. The site will be serviced by city water and sewer, Two Northern Natural Gas pipelines cross the site. A 66' wide easement, (18' gas pipeline), crosses from 145th Street I1 a northeasterly direction, and a 45' easement extends westerly along the north edge of 145th Street. A 50' easement, (4' line), crosses the northeast tip of ithe site In a northwest/southeast direction. i `AG i i 1.11 LEGEND 1 ---- 1990 URBAN SERV. AREA P/1 PUBLIC A INSTITUTIONAL I POS PRESERVATION OPEN SPACE i GI GENERAL INDUSTRIAL IP INDUSTRIAL PARK CC COMMUNITY (C8D) COMMERCIAL HC HIGHWAY COMMERCIAL GC GENERAL COMMERCIAL - CNC CONVENIENCE COMMERCIAL RH HIGH DENSITY RESIDENTIAL RRRURAL RESIDENTIAL AG AGRICULTURAL ROSE )N nl ■o• MISSISSIPPI RIVER CRITICAL AREA MAJOR STREETS UNDESIGNATED: MEDIUM ' .0djjjjjjjjk&k' DENSITY RESIDENTIAL NEXISTING MUSA 1 3.1 Natural Features The site of the proposed development can be characterized as relatively flat on its western half, with a high elevation of approximately 970, and somewhat lower and rolling on the eastern half. The site does have a small defined wetland area (water elevation 911) along the northwesterly edge. This wetland area will be protected and used as a retention area. In addition, there Is a low area at Elevation 912 in the southeast quadrant of the site that is not a wetland and that will be used as a retention area. In addition to these two defined retention areas, we anticipate developing approximately two to four smaller retention areas In the central and west portions of site. The site is primarily treeless and open, except for several mature trees located in the existing farmstead, and a few mature cottonwood trees sprinkled In the low areas In the wide railroad right of way along the northwest edge of the site. Apparently this widened area was used as a borrow area when the rail line was elevated above the kyMand. it appears from visual observation and topographic data that the rad line dips to a low elevation of approximately 940', about 30' above the low land point. All solls are well drained, with the exception of several small pockets of Kennebec Silty loam typically found in depressed areas. 4.1 Concept Land Use Plan The planning objectives for the site are to create a single family detached neighborhood with small Pockets of for sale townhomes and duster housing, to create a central neighborhood park utilizing the mature trees and resources of the existing farmstead, and to retain the roiling character of the eastern portion of the site. Access to the site will be obtained from three roadways along the south and west edges. The primary access will be from County 42 just east of the existing farmstead. This access location coincides with the existing median break In County 42 and will allow this collector street to be consistent with the existing sewer easement extending north from this location. Secondary access points will be from 145th Street on the southwest edge, and Biscayne Avenue on the west. It is anticipated the primary traffic flow will be west or east on County 42, the secondary Now will be west on 145th Street, and minor amount of traffic will flow north on Biscayne. The Interior site circulation consists of a primary east/west collector street that runs from Biscayne on the west to the east property line, and shorter north/south collector streets connecting to County 42 and 145th Street. The primary north/south collector street connects to the primary site access on County 42. If, when the property to the north is developed, future traffic demands warrant, this street could be extended to cross the rail tracks to connect to Bacardi Avenue to the north. The secondary north/south collector street connects to 145th Street and follows the path of the gas pipeline easement in a northeasterly direction. The connection of this collector at 145th Street near County 42 may warrant .EN reconfigeration of this Intersection. A third north/south street connection is possible along the east property line, although the topography and limited visibility to the east on County 42 makes this connection subject to further evaluation. I % 4`(j C The concept land use plan features a centrally located, ten acre neighborhood park incorporating the mature trees of the existing farmstead. It is anticipated this park would be 50% recreational, and could reuse some of the existing farm buildings, If appropriate. The existing wetland area along the north edge of the site will also be a primary open space, and it is anticipated the retention area In the southeast quadrant will also be a defined open space. The concept plan utilizes three land use types to provide aesthetic and market diversity. Approximately 24 acres would be developed as for sale townhomes in two dusters at the northwest caner of the she and adjacent to the park and County 42 access. Three areas of single family duster housing totalling 24 acres are distributed in the west, central and east portions of the site. The remaining 176 acres of land are planned consistent with R1 criteria of 10,000 SF minimum lot size and 80' frontages. This distribution of housing types locates the more dense areas near access points to reduce traffic impact, allows for a mixture of housing types to be brought on market In each phase of the development, and provides texture and variety in the development. It is anticipated the duster housing would have a gross density of approximately 3.2 DU/A and could be either zero lot line homes, twin or quad homes, or small lot homes, depending on market conditions and planning considerations. This density is well within the maximum density of 6 DU/A for duster areas stated on page 5 of Rosemount Policies, and consistent with the policy statement to allow use of duster housing to compensate for major streets, railroad lines and natural resource preservation. R2 24A(9>6DU/A = 144 RiC 24A(aP3.2 = 76 Rt 178@2.5 - 445 TOTAL 665DU EDWARD L McMENOMY REID I HANSEN KEVIN P. CARROLL MICHAEL G McCANN McMENOMY, HANSEN, CARROLL & McCANN A PROFESSIONAL ASSOCIATION ATTORNEYS AT LAW DAKOTA CENTRAL OFFICES 14450 SOUTH ROBERT TRAIL ROSEMOUNT MINNESOTA 55068 April 16, 1992 City of Rosemount Attn: Lisa Freese and Rick Pearson Dear Lisa and Rick: TELEPHONE: (612) 423-1155 TELECOPIER: (612) 423•II57 HAND DELIVERED _As requested at CMCIs informal presentation to the Rosemount Planning Commission on April 14, 1992, enclosed herewith please find ten copies of the marketing study performed by Tracy Cross & Associates, Incorporated with respect to the 226 acre site currently under option with CMC Heartland Partners. Please distribute the study to Rosemount City Council members, Planning Commission members, and other interested persons. If you have any questions, please give me a call. Very trul FOR Reid RJH:hmr Enclosures October 16, 1991 Mr. Wayne Delfino CMC Heartland Partners 547 W. Jackson Boulevard Chicago, Illinois 60606 Dear Mr. Delfino: At the request of CMC Heartland Partners, Tracy Cross & Associates, Incorporated evaluated the market potential for single family and townhome/ condominium development to be located within a land parcel aligning 145th Street/Route 42 in Rosemount, . Dakota County, Minnesota. Specifically, this analysis establishes the following: o Conclusions regarding the annual demand for single family and townhome/condominium housing in the Rosemount, Minnesota market area focusing on the subject property and its expected share by price range. o Conclusions and recommendations for single family and townhome/condominium development, outlining square footage, pricing and project infrastructure requirements necessary to achieve strong levels of consumer acceptance and economic success without jeopardizing the marketability of the Client's other landholdings in the immediate area. The Site CMC Heartland Partners' subject property is a 226 -acre land assemblage located north of and contiguous to 145th Street/Route 42, ,east of Biscayne Avenue in Rosemount, Minnesota. This location places the subject property directly northeast of the Client's other landholdings which consist of 103.3 total acres. The majority of the site is relatively flat and is characterized by open farmland with a minimal amount of tree growth. However, the eastern portion of the site maintains a number of dramatically rolling hills which extend from a farm located in the center of the site to the property's eastern border. In addition, aligning the site's northern boundary is the Chicago, Rock Island and Pacific Railroad. Principal access to the subject property is provided by 145th Street/Route 42, an east -west arterial which runs along the site's southern perimeter. A major north -south roadway serving the property is State Highway 3 which is located one mile west of the site. Market Dynamics The purpose of this section is to present an understanding of growth dynamics of the overall Minneapolis metropolitan region in order to provide a background of Mr. Wayne Delfino October 16, 1991 Page 2 information relative to economic occurrences expected to influence residential demand potentials in Dakota County. From this larger scale regional setting, a more localized focus is taken toward the immediate area surrounding the site in terms of employment, population, household and residential construction trends with forecasts provided as to expected levels of housing absorption over the near term. The Minneapolis/St. Paul metropolitan region, for the purpose of this analysis, Is defined as the seven -county area of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott and Washington counties. During the 1980-1983 recessionary period, the Minneapolis area witnessed a decline in employment as the number of workers dropped from 1,040,111 to 1,024,532 reflecting an average annual decline of 5,193 Jobs. However, the one-year period between 1983 and 1984 saw an abrupt turnaround as employment increased by 71,184 workers to 1,095,716 as employers throughout the region began to hire the large numbers of persons who were left unemployed during the recession. Between 1984 and 1987, the Minneapolis/St. Paul area averaged annual employment additions of 34,519 new workers with the 1984-1985 timeframe realizing gains of 37,775, the 1985-1986 period accounting for worker gains of 20,513 and the 1986-1987 period showing an increase of 45,270 new workers. More recently, since 1987, the seven -county area has witnessed an economic slowdown as in the four-year period between 1987 and 1990 employment gains have steadily decreased from a high of 45,270* in the 1986-1987 period to 36,340 during 1987-1988 to 28,271 between 1988 and 1989 and to 18,214 new worker additions in the most recent period between 1989 and 1990. During the 1984-1990 period, the major growth area within the Minneapolis/St. Paul region was Hennepin County (which contains the city of Minneapolis as well as the western suburban area) which accounted for over 53 percent of all employment growth. However, Dakota County showed the- strongest percentage gains over the 1984-1990 period as employment levels grew from 70,809 in 1984 to total 102,420 jobs in 1990 and its share of the seven -county area employment grew from 6.5 percent to 8.0 percent, respectively. In addition, Dakota County's capture rate of employment gains in the metropolitan area increased from 7.6 percent in 1989 to the 8.0 percent mark in 1990. Table 1 provides a summary of employment trends for the seven -county Minneapolis/St. Paul region. Over the 1991-1993 period, employment will continue to show moderates growth in the Minneapolis/St. Paul region as it adds an average of 23,000 workers annually. The current economic climate of the Minneapolis areR fs heavily influenced by recessionary overtones felt nationally. This current recession, moderate national expansions and restraints on bank lending will further affect employment gains over the near term. Specifically, employment is likely to increase by 20,500 workers in 1991 then moving upward to an average of 24,250 in 1992 and 1993. Demographic Vends Between 1980 and 1987, the Minneapolis/St. Paul region grew by 167,660 persons or by 8.4 percent reflecting an annual average of 23,951 additions. However, during the 1987 to 1989 period, the population of the metropolitan area increased TABLE 1 NDMEAPOLIS/ST. PAUL REGION EMPLOYMENT TRENDS 1980-1990 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 Overall Minneapolis/ St. Paul MSA 1,040,111 1,038,9401,012,477 1,024,532 1,095.716 1.133,491 1,154,004 1,199,274 1,235,614 1,263,885 1,282,099 Anoka County 58,345 58,147 57,523 59,465 64,298 65,124 65,978 68,523 72,051 74,706 77.369 Carver County 9.854 10,221 9,681 9,653 10,212 11,349 11,301 12,436 13,384 14.822 16,979 Dakota County 61,828 61,983 61,022 63,300 74,809 75,065 77,224 83,485 92,448 96,656 102,420 Hennepin Cty 600,307 600,834 584,626 590,117 632,252 654,654 668,783 695,336 710.510 727,384 732.136 Ramsey Cty 269,041 265.848 258,593 259,174 272,543 279,543 280,628 286,155 291,365 292,530 293,519 Scott County 13.028 13,219 12,972 13,082 14,018 15,057 15,633 16,548 17,520 17,600 18,47: Washington County 27,708 28,688 27,860 29,741 31,442 32,699 34,457 36,791 38,336 40,187 41,203 Mr. Wayne Delfino October 16, 1991 Page 3 from 2,153, 533 to 2,240,850 reflecting the annual addition of 43,659 persons, a mark almost double to the annual increase witnessed between 1980 and 1987. Additionally, between 1989 and 1990, the Minneapolis metropolitan area recorded an increase of 47,871 persons. Over the 1980-1990 timeframe, Hennepin County's population grew by an average annual amount of 9,102 persons reflecting 30.1 percent of all growth region -wide. However, on a percentage basis, Dakota County again recorded the strongest growth as its share of region -wide population rose from 9.8 percent in 1980 to 12.0 percent in 1990. Table 2 presents the major growth areas during the 1980-1990 period and provides a statistical look at regional growth patterns. Building Permit Trends In 1990, the Minneapolis/St. Paul region issued a total of 13,459 building permits. By product type, 76.9 percent of all activity was in the single family sector with the multi -family sector accounting for the remaining 23.1 percent. 1990's total volume reflects a slight increase from the 1980-1983 period when an average of 13, 243 permits were issued annually. However, when compared to the most recent 1986-1989 period when an average of 21,414 permits were issued annually, 1990's volume reflects a decrease of 37.1 percent. The following text table presents a detailed examination of building permit activity in the Twin Cities area over the last five years. Building Permits Issued As seen above, the percentage of multi -family permits issued has declined steadily from 54.4 percent to 23.1 of total activity from 1985 to 1990. By county, Dakota County's share of region -wide building permit activity has ranged from a low of 13.3 percent in 1982 to a high of 24.5 percent in 1985. However, over the last six years (1985-1990), Dakota County has averaged 22.4 percent of region -wide building permit activity while for the 1980-1984 time frame, Dakota County averaged only 16.3 percent of region -wide activity. On the other hand, Hennepin County, which contains the downtown Minneapolis area, has witnessed a steady decline in its share of region -wide building permit volumes with percentages declining steadily from a high of 47.8 percent in 1982 to lows of 29.6 percent in 1989 and 31.9 percent in 1990. Single multi - Year Total Family Family 1985 21,068 9,612 11,456 1986 26,078 13,493 12,585 1987 24,982 13,207 11,775 1988 18,820 11,834 6,986 1989 15,776 11,302 4,474 1990 13,459 10,349 3,110 As seen above, the percentage of multi -family permits issued has declined steadily from 54.4 percent to 23.1 of total activity from 1985 to 1990. By county, Dakota County's share of region -wide building permit activity has ranged from a low of 13.3 percent in 1982 to a high of 24.5 percent in 1985. However, over the last six years (1985-1990), Dakota County has averaged 22.4 percent of region -wide building permit activity while for the 1980-1984 time frame, Dakota County averaged only 16.3 percent of region -wide activity. On the other hand, Hennepin County, which contains the downtown Minneapolis area, has witnessed a steady decline in its share of region -wide building permit volumes with percentages declining steadily from a high of 47.8 percent in 1982 to lows of 29.6 percent in 1989 and 31.9 percent in 1990. Area Overall Minneapolis/ St. Paul MSA Anoka County Carver County Dakota County Apple Valley Burnsville Eagan Farmington Lakeville Rosemount Hennepin County Ramsey County Scott County Washington County TABLE 2 MINNEAPOLIS/ST. PAUL REGION POPULATION GROWTH PATTERNS 1980 - 1990 Population 1980 1987 1989 1990 Annual Average Change 1980-1987 1987-1989 1989-1990 1,985,873 2,153,533 2,240,850 2,288,721 23,951 43,659 47,871 195,998 224,626 237,546 243,641 4,090 6,460 6,095 37,046 43,405 46,136 47,915 908 1,366 1,779 194,279 241,594 263,818 275,227 6,759 11,112 11,409 21,818 28,776 33,622 34,598 1,137 1,923 976 35,574 44,353 50,225 51,288 1,240 2,936 1,063 20,700 39,225 44,058 47,409 2,646 2,417 3,351 4,370 5,140 5,682 5,940 110 271 258 14,790 19,106 22,707 24,854 617 11801 2,147 5,083 6,847 8,014 8,622 252 584 608 941,411 986,505 1,015,320 1,032,431 6,442 14,408 17,111 459,784 472,298 479,504 485,765 1,788 3,603 6,261 43,784 54,046 57,573 57,846 1,466 1,764 273 113,571 131,059 140,953 145,896 2,498 4,947 4,943 Mr. Wayne Delfino October 16, 1991 Page 4 By community in Dakota County, the village of Rosemount's share of countywide building permit activity was quite cyclical in the early part of the 1980's with its share ranging from a low of 0.6 percent in 1985 to a high of 4.8 percent in 1982. However, between 1985 and 1988 Rosemount's county -wide share increased from 0.6 percent to 8.4 percent with 1989 showing a slight moderation to the 5.9 percent level and then increasing to a 6.4 percent representation level in 1990. Since there is an unbreakable connection between growth in the number of jobs and the number of housing units which should be built in an area, employment growth is unmistakably the best indicator of housing demand. By studying historical movements of employment and building activity over time, an employment/permit ratio can be developed to determine proper demand/supply equivalents in the Minneapolis/St, Paul region. As shown in Table 3 over the last eight years the Minnesota/St. Paul Metropolitan area supported an average 1.73 employment/permit ratio ranging from a high of 3.98 in 1984 to a low of 0.69 in 1983. The high end of these extremes as reflected in 1984's ratio resulted from the fact that jobs created during the year were not attracting a significant new labor force but only cutting into the ranks of unemployed which accumulated during the 1980-1983 recessionary period. In the instance of 1983's low employment/permit ratio, the Minneapolis/St. Paul area was just in this initial recovery period and the era of tax increment financing for apartments stimulated rental construction not directly consistent with demand forces in the marketplace. When the employment/permit ratios from 1983 and 1984 are excluded, the ratio falls to 1.55 with this signifying a highly "normal" demand condition. 1992 Housing Demand Using the 1.55 employment/permit ratio average established earlier and applying this ratio to levels of expected job gains for 1991, 1992 and 1993 results in the following forecasted levels of "normal" demand over the next three years for the Minneapolis/St. Paul region. In summary, short run residential demand will average 14,800 units annually during the three year period ending at the close of 1993. By product type 72 percent of all activity will be centered in detached single family alternatives with multi -family alternatives expected to account for the remaining 28 percent. "Normal" Expected Residential Employment Employment/ Demand Year Gains PeFipit Ratio Requirements 1991 20,500 1.55 13,200 1992 23,000 1.55 14,800 1993 25,500 1.55 16,500 In summary, short run residential demand will average 14,800 units annually during the three year period ending at the close of 1993. By product type 72 percent of all activity will be centered in detached single family alternatives with multi -family alternatives expected to account for the remaining 28 percent. TABLE 3 EMPLOYMENr/PERMIT RATIOS MINNEAPOLIS/ST. PAUL METROPOLITAN 1983-1990 Twelve Employment Months Employment/ Year Change Permits Permit Ratio 1982-1983 12,055 17,374 0.69 1983-1984 71,184 17,871 3.98 1984-1985 37,775 21,068 1.79 1985-1986 20,513 26,078 0.79 1986-1987 45,270 24,982 1.81 1987-1988 36,340 18,820 1.93 1988-1989 28,271 15,776 1.79 1989-1990 18,214 13,459 1.35. Annual Averages 33,703 19,429 1.73 1984-1990 Average 31,064 20,031 1.55 Mr. Wayne Delfino October 16, 1991 Page 5 Over the next three years, Dakota County will capture 25.0 percent of region -wide activity and account for 3,300 units in 1991, 3,700 units in 1992 and 4,125 units in 1993. of Units of Market Additionally, as the more mature areas of Dakota County (Le. Burnsville) become built out, a higher percent of housing demand share in Dakota County will be reflected in communities such as Rosemount. As such, Rosemount will account for 7.0 percent of Dakota County's overall demand potential in 1991 and then increasing to the 8.0 to 11.0 percent levels in 1992 and 1993. Empirically, the immediate Rosemount market area which includes the communities of Apple Valley, Burnsville, Eagan, Farmington, Lakeville and Rosemount has historically been absorbing between 1,000 and 1,300 single family units annually just in the lower to lower/middle price ranges. In this instance, over 79.0 percent of all single family sales within the past year. have been concentrated in the narrow price band of $100,000 to $149,999. Competitive Factors In analyzing the competitive elements expected to influence development • of the Client's Rosemount, Minnesota property, a total of ten production -type single family developments and seven townhome/condominium projects were surveyed in the Rosemount market area. Additionally, 23 lower priced, nonproduction/custom home developments were examined in the Rosemount area For the geographic distribution of all programs surveyed, consult the following text tables: Production -Type Single Family Developments Number Number Number Percent Community of Programs of Units of Market Apple Valley 3 146 11.9 Eagan 2 159 13.0 Lakeville 3 648 52.8 Rosemount 2 274 22.3 Total 10 1,227 Townhome/Condominium Developments 100.0 Number Number Percent Community of Programs of Units of Market Apple Valley 2 204 36.3 Burnsville 1 30 5.3 Eagan 3 328 58.4 Total 7 562 100.0 Mr. Wayne Delfino October 16, 1991 Page 6 Custom Hose/Lot Sale Developments As mentioned above, within the Rosemount market area, a total of ten production -type single family programs are currently active. A production -type single family development can be defined as one in which a fixed set of models are offered and the base lot price is included in the overall purchase price. Since opening, the average single family development in the Rosemount market area has captured 2.5 sales per month. By individual program, sales volumes are paced by Royal View/Royal Oaks in Lakeville at 4.4 units per month followed by Hypointe Crossing, also in Lakeville, with a rate of 4.1 units per month. At the opposite end of the spectrum, the slowest velocities are being garnered by Westchester -Centex in Apple Valley with a sales per month since opening rate of 1.3 units. The community of Rosemount, itself, currently supports two production -type single family developments, Briarwood Village and Country Hills, which have averaged 2.3 and 2.2 sales per month since opening, respectively. The following text table provides a comparative ranging of all single family developments surveyed on an average sales per month since opening basis. Number Number Percent Community of Programs of Units of Market Apple Valley 5 685 24.3 Burnsville 1 52 1.8 Eagan 9 695 24.7 Farmington 1 360 12.8 Lakeville 3 374 13.3 Rosemount 4 648 23.1 Total 23 2,814 100.0 As mentioned above, within the Rosemount market area, a total of ten production -type single family programs are currently active. A production -type single family development can be defined as one in which a fixed set of models are offered and the base lot price is included in the overall purchase price. Since opening, the average single family development in the Rosemount market area has captured 2.5 sales per month. By individual program, sales volumes are paced by Royal View/Royal Oaks in Lakeville at 4.4 units per month followed by Hypointe Crossing, also in Lakeville, with a rate of 4.1 units per month. At the opposite end of the spectrum, the slowest velocities are being garnered by Westchester -Centex in Apple Valley with a sales per month since opening rate of 1.3 units. The community of Rosemount, itself, currently supports two production -type single family developments, Briarwood Village and Country Hills, which have averaged 2.3 and 2.2 sales per month since opening, respectively. The following text table provides a comparative ranging of all single family developments surveyed on an average sales per month since opening basis. Sales Per Month Program Location Since opening Royal View/Royal Oaks Lakeville 4.4 Hypointe Crossing Lakeville 4.1 Hills of Stonebridge Eagan 2.6 Coventry Pass Eagan 2.4 Briarwood Village Rosemount 2.3 Country Hills Rosemount 2.2 Lakeville Green Lakeville 2.2 Westchester-Rottlund Apple Valley 1.8 Huntington -Centex Apple Valley 1.3 Westchester -Centex Apple Valley 1.3 Mr. Wayne Delfino October 16, 1991 Page 7 Compared to a survey conducted by our firm in the Rosemount market area in August of 1990, the current average sales rate among production -type single family developments reflects an increase of 8.7 percent from the average sales rate previously registered. The average production -type single family home offered in the Rosemount market area currently supports a sales price of $119,256 for a unit offering 1,768 square feet of livable area, yielding a value ratio of $67.45 per square foot. However, when adjustments are made to the sales prices to compensate for certain Included or excluded amenities or features which are considered to be standard, the average sales price falls to $104,473 for an adjusted value ratio of $59.09 per square foot. By constituent community, average offering prices show slight variation as seen in the following text table: When presented graphically, the active production -type single family developments in the Rosemount market area align one distinct pricing tier. This pricing tier includes all ten active developments with an average adjusted price of $104,473 and an average plan size of 1,768 square feet. A linear regression analysis was performed on the pricing structure and it as determined that "market" values range from $73,225 for 900 square feet up to $145,225 at 2,900 square feet while moving at an incremental rate of $36 per square foot. Over thegiven range of square footages, the following text table presents the market rate pricing structures. Plan Size Average Average Value Ratio Consunity Offering Plan Size Per 1100 Price (Sq. Ft.) Square Foot Apple Valley #129,222 1969 #65.63 Eagan 114,775 1606 71.47 Lakeville 1091551 1580 69.34 Rosemount 123,344 1911 64.54 When presented graphically, the active production -type single family developments in the Rosemount market area align one distinct pricing tier. This pricing tier includes all ten active developments with an average adjusted price of $104,473 and an average plan size of 1,768 square feet. A linear regression analysis was performed on the pricing structure and it as determined that "market" values range from $73,225 for 900 square feet up to $145,225 at 2,900 square feet while moving at an incremental rate of $36 per square foot. Over thegiven range of square footages, the following text table presents the market rate pricing structures. Plan Size Average Adjusted (Sq. Ft.) Market Price 900 # 73,225 1000 76,825 1100 80,425 1200 84,025 1300 87,625 1400 91,225 1500 94,825 1600 98,425 1700 102.045 1800 105,625 1900 109,225 Mr. Wayne Delfino October 16, 1991 Page 8 Plan Size (Sq. Ft.),con't. 2000 2100 2200 2300 2400 2500 2600 2700 2800 2900 Average Adjusted Market Price $112,825 116,425 120,025 123,625 127,225 130,825 134,425 138,025 141,625 145,225 By individual program, the following text table presents relevant unit size, average adjusted and "market" rate prices, the price variance from market and monthly sales rate information. For a detailed composite sales summary of all production -type single family programs surveyed, consult Table 4 (at the back of this letter) . This table presents an outline of models offered, unit sizes, sales histories as well as prices on both an adjusted and unadjusted basis'. Among the seven active townbome/condominium developments in the Rosemount market area, the average program has captured 7.6 sales per month, since opening. However, when three programs are excluded, including: Deerwood Townhomes which is priced well above the remainder of the market along with Highland Village Deck Homes and Villas at Diffley Commons which are priced well Monthly Average Average Average Price Sales Rate Unit Size Adjusted Market Variance Since Program (Sq. Ft.) Sales Price Price From Market Opening Coventry Pass 1332 S 98,450 $ 88,777 +$ 9,673 2.4 Westchester-Rottlund 2137 127,115 117,757 +S 9,358 1.8 Hills of Stonebridge 1880 117,300 108.505 +S 8,795 2.6 Westchester -Centex 1885 110,175 108.685 +S 1,490 1.3 Lakeville Green 1434 93.090 92,449 +$ 641 2.2 --Market-- 1768 104,473 104,473 -0- 2.5 Briarwood Village 2495 129,750 130,645 -S 895 2.3 Huntington -Centex 1885 106,758 108,685 -5 1,927 1.6 Country Hills 1326 82,406 88,561 -5 61155 2.2 Royal View/Royal Oks 1501 85,968 94,861 -S 8.893 4.4 Hypointe Crossing 1806 93.714 105.841 -$12.127 4.1 For a detailed composite sales summary of all production -type single family programs surveyed, consult Table 4 (at the back of this letter) . This table presents an outline of models offered, unit sizes, sales histories as well as prices on both an adjusted and unadjusted basis'. Among the seven active townbome/condominium developments in the Rosemount market area, the average program has captured 7.6 sales per month, since opening. However, when three programs are excluded, including: Deerwood Townhomes which is priced well above the remainder of the market along with Highland Village Deck Homes and Villas at Diffley Commons which are priced well Mr. Wayne Delfino October 16, 1991 Page 9 below the mainstream of the market, the overall average sales rate changes to 3.0 units per month. The market area's current sales leaders are Highland Village Deck Homes and Villas at Diffley Commons (the two newly opened value -oriented developments) which have registered 21.1 and 20.0 sales per month since opening, respectively. The following text table provides a comparative ranking of all townhome/condominium developments surveyed in the Rosemount market area on an average sales per month since opening basis. Extremely strong sales rates due to low pricing structure and initial surge when entering the market over the past two months. The current average sales rate of 3.0 units per month among the mainstream of Rosemount's townhome/condominium market reflects an increase of 20.0 percent from the average sales rate recorded in August of 1990. The overall average sales price of a townhome/condominium unit offered in the Rosemount market area currently stands at $112,643 and $106,832 (adjusted) for a home containing 1,508 square feet of livable area, translating to value ratios of $74.70 and $70.84 per square foot, respectively. By community, the average sales prices in the Rosemount market area's townhome/condominium sector range from a high of $121,650 in Eagan to a low of $91,000 in Apple Valley as seen in the following text table Community Apple Valley Burnsville Eagan Average Offering Price $91,000 119,900 121,650 Average Plan Size (Sq. Ft.) 1 335 1500 1597 Value Ratio Per Square Foot $68.16 79.93 76.17 When presented graphically on a price/value basis, the active townhome/condominium developments in the Rosemount market area align two distinct pricing tiers. Performing a straight line regression analysis results Sales Per Month Program Location Since Opening Highland Village Deck Homes Apple Valley 21.1* Village at Diffley Commons Eagan 20.0* Wescott Square Eagan 4.5 Woodland -Country Homes Eagan 3.9 Embassy Estates Apple Valley 2.4 Southcross Oaks Burnsville 1.1 Deerwood Townhomes Eagan 0.3 Extremely strong sales rates due to low pricing structure and initial surge when entering the market over the past two months. The current average sales rate of 3.0 units per month among the mainstream of Rosemount's townhome/condominium market reflects an increase of 20.0 percent from the average sales rate recorded in August of 1990. The overall average sales price of a townhome/condominium unit offered in the Rosemount market area currently stands at $112,643 and $106,832 (adjusted) for a home containing 1,508 square feet of livable area, translating to value ratios of $74.70 and $70.84 per square foot, respectively. By community, the average sales prices in the Rosemount market area's townhome/condominium sector range from a high of $121,650 in Eagan to a low of $91,000 in Apple Valley as seen in the following text table Community Apple Valley Burnsville Eagan Average Offering Price $91,000 119,900 121,650 Average Plan Size (Sq. Ft.) 1 335 1500 1597 Value Ratio Per Square Foot $68.16 79.93 76.17 When presented graphically on a price/value basis, the active townhome/condominium developments in the Rosemount market area align two distinct pricing tiers. Performing a straight line regression analysis results Mr. Wayne Delfino October 16, 1991 Page 10 in the following price relationships for plans of various sizes within each respective pricing tier. Plan Size Average Adjusted Market Prices (Sq. Ft.) Tier I Tier II 1000 $53,534 $95,806 1100 56,134 99,006 1200 58,734 102,206 1300 61,334 105,406 1400 ------- 108,606 1500 ------- 111,806 1600 ------- 115,006 1700 ------- 118,206 1800 ------- 121,406 1900 ------- 124,606 2000 ------- 127,806 2100 ------- 131,006 2200 ------- .134,206 Tier I prices are currently moving at an average of $26 per incremental square foot, while Tier II prices are incrementally increasing at a rate of $32 per square foot. For each program analyzed, the following text table provides relevant unit size, sales price, "market" rate price variance and monthly sales rate information. Monthly Average Price Sales Rate Market Variance Since Price From Market Opening 3 57,954 +$ 5,596 20.0 57,720 -O- 20.6 57,486 -$ 5,596 21,1 $119,422 +$ 3,928 3.9 111,806 +$ 3,794 1.1 114,334 -0 3.0 Average Average Unit Size Adjusted Program (Sq. Ft.) Sales Price Tier I Villas at Diffley Commons 1170 S 63,550 --Market-- 1161 57,720 Highland Village Deck Homes 1152 51,890 Tier II Woodland -Country Hms 1738 $123,350 Southcross Oaks 1500 115,600 --Market-- 1579 114,334 Monthly Average Price Sales Rate Market Variance Since Price From Market Opening 3 57,954 +$ 5,596 20.0 57,720 -O- 20.6 57,486 -$ 5,596 21,1 $119,422 +$ 3,928 3.9 111,806 +$ 3,794 1.1 114,334 -0 3.0 Mr. Wayne Delfino from the above analysis was Deerwood Townhomes in Eagan due to its relatively high pricing structure October 16, 1991 The average unit at Deerwood Townhomes currently carries a sale price of $175,050 (adjusted) for 1,919 square feet of Page 11 program $49,836 over the second tier's market average for comparable footage. Since opening, Deerwood Townhomes has accumulated 0.3 sales per month. 13 -month supply, based upon Monthly sales trends within the market, Average Average Average Price Sales Rate Unit Size Adjusted Market Variance Since Program, cont. (Sq. Ft.) Sales Price Price From Market opening Tier II, cont. Embassy Estates 1517 $110,934 $112,350 -$ 1,416 2.4 Wescott Square 1560 107,450 113,726 -$ 6,276 4.5 Excluded from the above analysis was Deerwood Townhomes in Eagan due to its relatively high pricing structure . The average unit at Deerwood Townhomes currently carries a sale price of $175,050 (adjusted) for 1,919 square feet of living space, thus positioning this program $49,836 over the second tier's market average for comparable footage. Since opening, Deerwood Townhomes has accumulated 0.3 sales per month. 13 -month supply, based For a detailed composite sales summary of all _townhome/condominium developments surveyed in the Rosemount market area, consult Table 5 located at the back of this letter. As mentioned earlier, within the Rosemount market area a total of 23 moderately priced non -production custom home/lot sale developments were surveyed by our firm. These programs can be defined at the those which do not offer a fixed set of models, rather, a developer will subdivide a parcel Into a number of lots which are then sold individually to the end consumer who will contract to have a home built. In many cases, participating builders will buy individual lots or a bulk of lots and then sell home/lot packages to the end consumer. Since opening, the average custom home development in the Rosemount market area has attained 2.3 sales per month to end users with velocities ranging from a low of 0.5 per month at Great Oak Shores in Lakeville to a high of 6.2 at Rosewood Park in Rosemount. Within the Rosemount market area, the 23 active custom home/lot sale developments (combined) contain a total of 2,814 lots. The community of Eagan reflects the largest number of total lots with 695 or a 24.7 percent market share. Following Eagan are Apple Valley and Rosemount with market share rates of 24.3 and 23.1 percent, respectively. Of the 2,814 lots scattered throughout the six communities in the market area, 2,135 have been sold to end users which leaves a remaining inventory of 679 lots or a 13 -month supply, based upon current sales trends within the market, Mr. Wayne Delfino October 16,1991 Page 12 The average base Iot for sale in the Rosemount market area currently contains 10,865 square feet (0.25 acres) with lot sizes extending to an overall average of 12,509 square feet. In turn, the average sales price of a base lot currently stands at $27,052 and extends upward to an overall average of $29,528. The current value ratio of a base lot in the market area supports a price per square foot of $2.49. By community, base lot value ratios range from a high of $3.63 per square foot in Burnsville to a low of $2.29 per square foot in Rosemount as seen below: Burnsville 2200 168,333 76.52 17.2 Eagan Average Base 140,556 Avg. Base Average Lot Price 973 Lot Size Buse Lot Value Ratio Community (Sq. Ft.) Price Per Square Foot Apple Valley 9,858 $26,140 $2.65 Burnsville 81000 29,000 3.63 Eagan 12,337 29,600 2.40 Farmington 6,000 18,000 3.00 Lakeville 11,963 29,133 2.44 Rosemount 9,928 22,675 2.29 In terms of home/lot packages, among the 23 programs examined, the average home includes 1,612 square feet of livable area with a sales price of $134,565 including the lot. This equates to a value ratio of $83.48 per square foot. In addition, given an overall average base lot price of $27,052 as discussed earlier for the Rosemount market area as a whole, the lot price accounts for 20.1 percent of the overall home/lot sales price. By community, the following table examines average home sizes, home/lot prices, value ratios and base lot prices as a percentage of home/lot prices. For a detailed composite sales summary of all nonproduction custom home/lot sale developments surveyed in the Rosemount market area, consult Table 6 (at the back of this letter) . This table outlines lot size and price, home/lot package price, home size and sales histories on a per project basis. Base Average Average Value Ratio Lot Price As a Hose Size Hose/lot Price Per Percentage of Community (Sq. Ft.) Sales Price Sq. Ft. Home/lot Price Apple Valley 1433 $125,267 $87.42 20.9 Burnsville 2200 168,333 76.52 17.2 Eagan 1746 140,556 80.50 21.1 Farmington 973 92,000 94.55 19.6 Lakeville 1828 161,667 88.44 18.0 Rosemount 1384 114,584 82.79 19.8 For a detailed composite sales summary of all nonproduction custom home/lot sale developments surveyed in the Rosemount market area, consult Table 6 (at the back of this letter) . This table outlines lot size and price, home/lot package price, home size and sales histories on a per project basis. Mr. Wayne Delfino October 16, 1991 Page 13 Conclusions and Recommendations CMC Heartland Partners' Rosemount property is definitely within the path of regional growth as over the next three years Dakota County, of which Rosemount is part, will account for the absorption of 3,700 new residential housing units annually on average. This demand forecast represents 25.0 percent of the total housing demand potential in the Minneapolis/St. Paul metropolitan area. Over the past decade, Dakota County has witnessed an increase in its percentage share of employment growth, population growth and building permit activity in the Minneapolis metropolitan area. Between 1984 and 1990 Dakota County's share of the seven -county area employment grew from 6.5 percent to 8.0 percent, respectively. In terms of population, Dakota County increased its percentage share of region -wide population growth from 9.8 percent in 1980 to 12.0 percent in 1990. Additionally, over the last six years, Dakota County has averaged 22.4 percent of region -wide building permit activity while during the 1980 to 1984 period, Dakota County averaged only 16.3 percent of region -wide activity. Dakota County and more specifically the Rosemount market area is characteristic of an emerging market. As such, the market segments reflected in the area are very insular in nature. These mandated market segments are represented by two specific groups: the family segment and the very value -oriented single or couple. Therefore, because of the economic, demographic and construction environment that is evolving in the Rosemount market area, the following two alternatives are recommended for the Client's subject property. Alternative I consists of combining the 226 -acre subject property with the Client's other 103 -acre parcel to create a planned unit development infrastructure. This proposal will allow for the Client to develop the entire land assemblage in order to present his own product lines while at the same time selling off semi -developed parcels of land to other builders in the area. In this instance, the product recommended for portions of the site allocated for construction by the Client should conform to the product guidelines presented in our August 1990 study as outlined below: Price Square Anticipated Product Type Range Footage Range Iionthly Sales Single Family A #101,900- 1250- 116,900 1700 3.5 Single Family B $120,900- 1900- 136,900 2400 2.0 Townhomes t 72,900- 1100- 82,900 1300 4.0 Mr. Wayne Delfino October 16, 1991 Page 14 Alternative 2, on the other hand, consists of "land banking" the current 226 -acre subject property until the above product lines have been presented on the 103 -acre parcel and are 75.0 percent sold out. In either instance, the Client should focus his construction efforts toward the product line outlined above and detailed in the August 1990 study, with the possible addition of the following "duplex product. Recommended Duplex Product Plan A B Elevation Two Story Two -Story Bedrooms 3 2+Den Baths 2.5 2.5 Square Feet 1400 1550 Garage 2 -Car 2 -Car Suggested Sales Price $99,900 $104,900 At the suggested price line, the recommended duplex product will achieve 4.0 units per month over the life of the program. The rationale for the two previous alternatives is presented below: o The Rosemount market area is definitely oriented toward the single family sector and is virtually void of specialized life cycle segments such as empty nesters, divorcees, professional couples, deferring family formation etc. In fact, of total absorption potentials expected for the Rosemount market area, close to three-fourths will be concentrated in the detached sector of the market. Therefore, the success of the proposed single family product line is imminent within this insular market area and the success of the townhome and duplex product lines will be proven as true single family detached substitutes are provided. o While the Rosemount market area as a whole carries a number of different pricing and product clusters through the single family and multifamily for sale sectors, demand for housing in the immediate Rosemount area will initially cover a much more narrow band with the strongest potentials noted for low to moderate priced housing forms. o The average production -type single family home offered in the Rosemount market area currently commands a sales price of $119,256 and $104,473 (adjusted) for a home offering 1,768 square feet of living area. Since opening, the average single family development has recorded 2.5 sales per month, a rate 8.7 percent higher than the average sales rate recorded in August of 1990. Mr. Wayne Delfino October 16, 1991 Page 15 o The average sales price of a town home /con domini um unit offered in the Rosemount market area stands at $112,643 and $106,832 (adjusted) for a unit containing 1,508 square feet of livable area. Since opening, the average townhome/condominium unit has achieved 3.0 sales per month, a figure 20.0 percent higher than the average sales rate registered one year ago. o The average home/lot package among the more moderately priced custom home/lot sale developments in the Rosemount market area includes a home with 1,612 square feet priced at $134,565 including the lot. Since opening, the average custom home development has averaged 2.3 sales per month. o Therefore, the product lines recommended for either alternative will be placed competitively in the marketplace, a marketplace where sales have increased yet prices have remained generally consistent over the pf►st year. The two alternatives recommended for acquisition of the 226 -acre land parcel are strongly suggested. As a definite emerging market, the character of the Rosemount area makes it virtually impossible for any builder to pursue construction of separate product lines in two different developments located in the same community and essentially right across the street. If this were to be the procedure, there would be no way to not "cross compete" with one another and is therefore not recommended. Respectfully submitted, T ACY CROSS & ASSOCIATES, INCORPO ATED Tracy Cross President /tjs Ll TABLE 4 COMPOSITE SALES SUMMARY PRODUCTION -TYPE SINGLE FAMILY DEVELOPMENTS ROSEMOUNT, MINNESOTA MARKET AREA OCTOBER 1991 PAGE: 1 ----- SALES HISTORY ------ TOTAL INCRE- AVG MO MENTAL SALES PROGRAM/LOCATION/ DEVELOPER OPENING TOTAL MODEL BEDS/ SALES ADJUSTED SALES QUARTER SALES FOR RATE DATE UNITS NAME BATHS SQ FT PRICE PRICE ENDING p1R. FOR QTR. HUNTERS RIDGE-CENTEX 125TH AVENUE, OFF PILOT KNOB R 8/15/87 30 CAMDEN 4-2.5 2250 SOLD OUT SOLD OUT 8/20/90 27 0.7 APPLE VALLEY, MN WELLINGTON GLENHURST 3-2.5 2290 SOLO OUT SOLD OUT 12/01/90 3 0.9 CENTEX HOMES SHEFFIELD 4-2.5 4-2.5 2651 2760 SOLO OUT SOLD OUT SOLD OUT SOLD OUT 0 0.0 NORMANDY 4-2.5 2770 SOLD OUT SOLD OUT 0 0 0.0 0.0 AVERAGES SINCE OPENING 30 0.8 HUNTINGTON-CENTEX DORCHESTER TRAIL, E. OF PILOT 3/01/89 52 BRITTANY 2-1 1020 99,500 94,300 8/20/90 23 1.3 APPLE VALLEY, MN HARTFORD WILSHIRE 3-2.5 3-2 1360 110,900 103,700 10/07/91 27 2.0 CENTEX HOMES WINDHAM 3-2.5 1400 1800 109,900 116,900 103,700 100,700 0 0.0 STRATTON 3-2.5 1858 120,900 104,700 0 0 0.0 0.0 KENSINGTON 3-2.5 1920 119,500 102,800 0 0.0 ADDISON 3-2.5 2025 124,500 107,800 PRESTON 4-2.5 2075 126,500 109,800 CAMDEN 4-2.5 2250 129,900 112,700 FAIRFAX 4-2.5 2256 128,500 111,300 HAMPTON 4-2.5 2309 129,500 112,300 BRECKENRIDGE 4-2.5 2350 134,500 117,300 AVERAGES 1885 120,917 106,758 SINCE OPENING 50 1.6 TABLE 4 COMPOSITE SALES SUMMARY PRODUCTION -TYPE SINGLE FAMILY DEVELOPMENTS ROSEMOUNT, MINNESOTA MARKET AREA 1 1 OCTOBER 99 PAGE: 2 ----- SALES HISTORY ------ TOTAL INCRE- AVG MO MENTAL SALES ADJUSTED SALES RATE PROGRAM/LOCATION/ OPENING TOTAL MODEL BEDS/ SQ FT SALES PRICE SALES QUARTER FOR QTR. FOR DEVELOPER DATE UNITS NAME BATHS ---_PRICE ------ENDING ----_QTR. - WESTCHESTER-CENTEX 12/10/89 54 BRITTANY 2-1 3-2.5 1020 1360 99,500 113,900 94,300 106,700 8/20/90 10/07/91 13 16 1.6 1.2 EDINBOROUGH WAY, N. OF DIAMOND HARTFORD WILSHIRE 3-2 1400 112,900 106,700 0 0.0 APPLE VALLEY, MN WINDHAM 3-2.5 1800 119,900 103,700 0 0.0 CENTEX STRATTON 3-2.5 1858 123,900 107,700 0 0.0 KENSINGTON 3-2.5 1920 122,500 105,800 0 0.0 ADDISON 3-2.5 2025 127,500 110,800 PRESTON 4-2.5 2075 129,*500 112,800 CAMDEN 4-2.5 2250 134,900 117,700 FAIRFAX 4-2.5 2256 133,500 116,300 HAMPTON 4-2.5 2309 134.,500 117,300 BRECKENRIDGE 4-2.5 2350 139,500 122,300 AVERAGES 1885 124,333 110,175 SINCE OPENING 29 1.3 WESTCHESTER-ROTTLUND 11/01/89 40 EAGLETON 3-2 4-2.5 1620 2000 139,350 SOLD OUT 132,650 SOLD OUT 8/20/90 10/07/91 27 15 2.8 1.1 EDINBOROUGM WAY, N. OF DIAMOND' HANOVER HAMPSHIRE 4-2.5 2200 138,150 120,450 0 0.0 APPLE VALLEY, MN ROCKPORT 3-2 2250 146,375 129,675 0 0.0 ROTTLUND HOMES NORMANDY 3-2.5 2300 145,300 127,600 0 0.0 ITASCA 3-2.5 2315 142,900 125,200 0 0.0 CHARLESTON 4-2.5 2400 SOLD OUT SOLD OUT AVERAGES 2137 142,415 127,115 SINCE 42 1.8 OPENING TABLE 4 COMPOSITE SALES SUMMARY PRODUCTION -TYPE SINGLE FAMILY DEVELOPMENTS ROSEMOUNT, MINNESOTA MARKET AREA OCTOBER 1991 PAGE: 3 ----- SALES HISTORY ------ TOTAL INCRE- AVG MO MENTAL SALES ADJUSTED SALES RATE PROGRAM/LOCATION/ OPENING TOTAL MODEL BEDS/ BATHS SQ FT SALES PRICE SALES QUARTER FOR FOR QTR. DEVELOPER DATE UNITS NAME --PRICEENDING----,QTR. COVENTRY PASS 5/15/90 54 MANOR 2-1 2-1.5 980 1100 91,900 96,900 89,200 93,200 8/20/90 10/08/91 14 26 ; 4.4 1.9 OFF DIAMOND PASS ROAD FAIRFAX SUMMIT 2-1.5 1200 102,900 99,200 0 0.0 EAGAN, MN EAGAN,N WESTWOOD 3-2 1280 105,900 102,200 0 0.0 HOMES NORWOOD 3-2.5 1632 113,400 100,700 0 0.0 APPLETON 3-2.5 1800 119,900 106,200 0 0.0 AVERAGES 1332 105,'150 98,450 SINCE OPENING 40 2.4 HILLS OF STONEBRIDGE 1/01/89 105 BRITTANY 2-1 3-2.5 1020 1360 99,500 113,900 94,150 106,550 8/20/90 10/07/91 52 333 .7 22.4 STONEBRIDGE CIRCLE, OFF DODD A HARTFORD STRATTON 3-2.5 1858 123,900 116,550 0.0 EAGAN, MN EAGAN/ROTTLUND KENSINGTON 3-2.5 3-2.5 1920 2025 122,500 127,500 115,150 120,150 0 0 0.0 0.0 ADDISON CAMDEN 4-2.5 2250 134,900 127,550 0 0.0 FAIRFAX 4-2.5 2256 133,500 126,150 BRECKENRIDGE 4-2.5 2350 139,500 132,150 AVERAGES 1880 124,400 117,300 OPENING 85 2.6 TABLE 4 COMPOSITE SALES SUMMARY PRODUCTION -TYPE SINGLE FAMILY DEVELOPMENTS ROSEMOUNT, MINNESOTA MARKET AREA OCTOBER 1991 PAGE: 4 ----- SALES HISTORY ------ TOTAL INCRE- AVG MO MENTAL SALES PROGRAM/LOCATION/ OPENING TOTAL MODEL BEDS/ SALES ADJUSTED SALES QUARTER SALES FOR RATE FOR DEVELOPER DATE UNITS NAME ---_--___BATHS __-SQ_FT_-- PRICE PRICE ENDING QTR. -_QTR_- HYPOINTE CROSSING 5/15/88 373 LEWIS 3-1 1319 100,950 88,750 8/20/90 124 4.6 16071 HURON PATH HILL 3-1 1340 104,950 92,750 10/07/91 43 3.2 LAKEVILLE, MN SIBLEY 3-2.5 1743 111,950 88,000 0 0.0 ORRIN THOMPSON RAMSEY 3-2.5 1921 119,950 95,250 0 0.0 FAIRFIELD 4-2.5 1975 118,950 94,750 0 0.0 FARIBAULT 3-2.5 2127 123,950 98,750 0 0.0 LINDBERGH 4-2.5 2220 122,950 97,750 AVERAGES 1806 114,807 93,714 SINCE OPENING 167 4.1 LAKEVILLE GREEN 7/15/91 155 ASHLEY 2-1.5 963 89,990 80,590 7/15/91 0 0.0 175TH ST. k IPAVA AVE. BRIGHTON 2-1 1088 94,990 86,090 10/07/91 6 2.2 LAKEVILLE, MN DOVER 2-2 1433 107,990 95,590 0 0.0 MARV ANDERSON HOMES ESSEX 3-1.5 1590 109,990 97,590 0 0.0 GLADSTONE 3-1.5 1634 112,990 99,590 0 0.0 FAIRFAX 4-2.5 1898 114,990 99,090 0 0.0 AVERAGES 1434 105,157 93,090 SINCE OPENING 6 2.2 ROYAL VIEW/ROYAL OAKS 4/01/91 120 ESQUIRE 2-1 1110 93,800 70,050 4/01/91 -0 0.0 210TH ST, k JACQUARD RD. MARQUIS 2-1 1124 96,800 73,050 10/07/91 27 4.4 LAKEVILLE, MN WINDSOR 2-1 1180 97,800 79,050 0 0.0 WENSMANN HOMES WINCHESTER 2-2 1196 101,800 80,810 0 0.0 WINCHESTER If 2-2 1323 104,800 83,050 0 0.0 STATFORD 3-2 1550 115,800 93,550 0 0.0 ROYALE 3-2.5 1892 119,800 96,050 BUCKINGHAM 3-2.5 1914 115,800 92,050 KINGSTON 3-2.5 2222 131,800 106,050 AVERAGES 1501 108,689 85,968 SINCE OPENING 27 4.4 TABLE 4 COMPOSITE SALES SUMMARY PRODUCTION -TYPE SINGLE FAMILY DEVELOPMENTS ROSEMOUNT, MINNESOTA MARKET AREA OCTOBER 1991 COUNTRY HILLS 8/15/88 74 DARTMOUTH SHANNON PKWY & CANNEMARA TRAIL HARVARD ROSEMOUNT, MN SOMERSET ORRIN THOMPSON GEORGETOWN PRINCETON RADCLIFFE CAMBRIDGE FAIRFIELD 2-1 998 84,950 72,000 2-1 1108 93,950 PAGE: 5 3-1 1128 89.950 76,000 2-1 1166 ----- SALES HISTORY ------ 1315 96,950 82,000 3-2 1354 95,950 81,500 TOTAL 1564 105,950 90,500 4-2.5 1975 115,950 99,250 INCRE- AVG MO MENTAL SALES ADJUSTED SALES RATE PROGRAM/LOCATION/ OPENING TOTAL MODEL BEDS/ SALES SALES QUARTER FOR FOR DEVELOPER DATE UNITS NAME BATHS SQ FT PRICE PRICE ENDING QTR. QTR. BRIARWOOD VILLAGE 4/01/88 200 SIBLEY 3-2.5 1750 120,950 102,700 8/20/90 77 2.7 DELTA PLACE OFF DIAMOND PATH R RAMSEY 3-2.5 1921 127,950 108,850 10/07/91 22 1.6 ROSEMOUNT, MN LANCASTER 3-2.5 2100 130,950 111,450 0 0.0 ORRIN THOMPSON EDINBURGH 4-2.5 2240 135,950 116,450 0 0.0 STIRLING 4-2.5 2300 145,950 126,450 0 0.0 RICHMOND 4-2.5 2500 149,950 130,450 0 0.0 WINDSOR 4-2.5 2600 163,950 144,450 WINCHESTER 3-1.5 2700 165,950 148,450 PEMBROOKE 4-3 2760 165,950 145,450 ST. ANDREWS 4-3.5 2900 159,900 138,400 CARLISLE 3-2.5 2928 154,950 135,450 NORMANDY 4-3.5 3236 169.950 148,450 AVERAGES 2495 149,363 129,750 SINCE OPENING 99 2.3 COUNTRY HILLS 8/15/88 74 DARTMOUTH SHANNON PKWY & CANNEMARA TRAIL HARVARD ROSEMOUNT, MN SOMERSET ORRIN THOMPSON GEORGETOWN PRINCETON RADCLIFFE CAMBRIDGE FAIRFIELD 2-1 998 84,950 72,000 2-1 1108 93,950 78,000 3-1 1128 89.950 76,000 2-1 1166 94,950 80,000 3-1 1315 96,950 82,000 3-2 1354 95,950 81,500 3-2.5 1564 105,950 90,500 4-2.5 1975 115,950 99,250 AVERAGES 1326 97,325 82,406 8/20/90 44 1.8 10/07/91 38 2.8 0 0.0 0 0.0 0 0.0 0 0.0 SINCE OPENING 82 2.2 HIGHLAND VILLAGE DECK HOMES 8/15/91 TABLE 5 1152 57,900 51,890 8/15/91 0 144TH ST., E. OF PILOT KNOB RD COMPOSITE SALES SUMMARY 10/09/91 38 APPLE VALLEY, MN TOWNHOME/CONDOMINIUM DEVELOPMENTS 0 WENSMANN HOMES ROSEMOUNT, MINNESOTA MARKET AREA AVERAGES 1152 57,900 51,890 SINCE OCTOBER 1991 OPENING 38 HUNTERS RUN TOWNHOMES 1/01/88 156 B 2-1 1100 SOLD OUT SOLD OUT 8/20/90 154 OFF PILOT KNOB ROAD A 2-1 PAGE: 1 SOLD OUT SOLD OUT 9/15/90 2 APPLE VALLEY, MN ----- SALES HISTORY ------ 0 0 ROTTLUND HOMES TOTAL AVERAGES SINCE INCRE- AVG MO OPENING 156 MENTAL SALES ADJUSTED SALES RATE PROGRAM/LOCATION/ OPENING TOTAL MODEL BEDS/ SALES SALES QUARTER FOR FOR DEVELOPER DATE UNITS NAME BATHS SQ FT PRICE PRICE ENDING QTR. QTR. EMBASSY ESTATES 7/01/91 54 BELGIAN 2-2 1275 111,500 96,500 7/01/91 0 0.0 144TH ST., E. OF PILOT KNOB RD DANISH 2-2 1400 117,500 102,500 10/09/91 8 2.4 APPLE VALLEY, MN AUSTRIAN 2-2 1475 124,500 113,670 0 0.0 WENSMANN HOMES ENGLISH 2-2.5 1520 114,500 102,500 0 0.0 CANADIAN 3-2.5 1915 152,500 139,500 0 0.0 AVERAGES 1517 124,100 110,934 SINCE OPENING 8 2.4 EMBASSY PARK TOWNHOMES 5/31/89 17 DIPLOMAT 2-2 1323 SOLD OUT SOLD OUT 8/20/90 12 0,8 EMBASSY AVE., EAST OF PILOT KN AMBASSADOR 2-2 1490 SOLD OUT SOLD OUT 7/01/91 5 0.5 APPLE VALLEY, MN REGENCY 3-2 1906 SOLD OUT SOLD OUT 0 0.0 WENSMANN HOMES 0 0,0 AVERAGES SINCE OPENING 17 0.7 HIGHLAND VILLAGE DECK HOMES 8/15/91 150 UNITS A, B & C 2-1.5 1152 57,900 51,890 8/15/91 0 144TH ST., E. OF PILOT KNOB RD 10/09/91 38 APPLE VALLEY, MN 0 WENSMANN HOMES 0 AVERAGES 1152 57,900 51,890 SINCE OPENING 38 HUNTERS RUN TOWNHOMES 1/01/88 156 B 2-1 1100 SOLD OUT SOLD OUT 8/20/90 154 OFF PILOT KNOB ROAD A 2-1 1240 SOLD OUT SOLD OUT 9/15/90 2 APPLE VALLEY, MN 0 0 ROTTLUND HOMES AVERAGES SINCE OPENING 156 0.0 21.1 0.0 0.0 21.1 4.9 2.5 0.0 0.0 4.8 TABLE 5 COMPOSITE SALES SUMMARY DEVELOPMENT 2 OMINIUM TOWNHOME/COMIINNESOTA MARKET AREAS PAGE: ROSEMOUNT, --- OCTOBER 1991 ----- SALES HISTORY --- TOTAL INCRE- AVG MO MENTAL SALES SALES RATE AI)JUSTED SALESQUARTER FOR FOR QTR== BE SALES PRICE- PRICE ENDING-- -=QTR OPENINGTOTAL MODEL BATH S4 FT ------=------------ -- --- _ 4.4 PROGRAM/LOCATION/ DATE UNITS -NAME________ i SOLD OUT 0/20/90 242 8 4.4 DEVELOPER ______________________ --- ---- - - 3-1.5 1300 SOLD OUT 10/15/90 0 0.0 2/01/86 250 STRATFORD 0 0.0 MORNINGVIEW TOWESTMOF CEDAR STREET, SINCE 4.4 157TH APPLE VALLEY, MN AVERAGES OPENING 250 ORRIN THOMPSON . 1115 SOLD OUT SOLD OUT 8/20/90 9/15/90 67 1 1.4 1.3 0.0 9/01/86 68 A 2-1 0 0 0.0 PENNOCK SHORES GLENDA DRIVE, EAST OF PENNOCK SINCE 68 1.4 APPLE VALLEY, MN AVERAGES OPENING DIEDRICH BLORS. 1100 SOLD OUT SOLD OUT 8/20/90 5/01/91 39 5 2.1 o.6 0.0 44 STANDARD 2.1 0 0 0.0 2/01/89 VALLEY WAY VILLAGE II PILOT KNOB ROAD SINCE 44 1.6 14340 APPLE VALLEY, MN AVERAGES OPENING WENSMANN HOMES COUNTRY HOLLOW 6/01/87 99 S27,900- 8000 $130,000- 1350- 112 2.1 COUNTRYSIDE DR.. NORTH OF DIFF $35,900 15000 S180,000 2600 EAGAN, MN PROGRESS LAND CO. CUTTERS RIDGE 10/01/88 45 - - - 45 1.5 CUTTERS LANE, OFF PILOT KNOB R EAGAN, MN KEY LAND HOMES DEERWOOD TRAIL 5/15/88 85 $35,000- 12000 - $150,000 2200- 83 2.0 DEERWOOD TRAIL, SOUTH OF DEERW $40,000 17000 $205,000 3000 EAGAN, MN MITTLESTAEDT CONST. FAIRWAY HILLS 12/01/87 140 $30,000- 10000 $120,000- 1600- 86 1.9 INTERLACHEN DRIVE, OFF PILOT K $40,000 18000 S200,000 2500 EAGAN, MN DEREK DEVELOPMENT LEXINGTON POINTE V11 & V1l`l 3/15/90 32 S2g,900 10000 12000 S110,000- S120,000 1000- 16 0.9 1200 LEXINGTON PARKWAY, SOUTH OF DI EAGAN, MN TABLE 6 TRI -LAND DEVEL. COMPOSITE SALES SUMMARY LEXINGTON SQUARE 7/01/88 50 $23,900- 16500 - , 1000- 49 1.3 1350 NON -PRODUCTION CUSTOM HOME/LOT SALE DEVELOPMENTS EAGAN. MN ROSEMOUNT, MINNESOTA MARKET AREA MERITOR DEVELOPMENT OCTOBER 1991 PRAIRIE RIDGE HILLS III PAGE: 3 12750 - 25500 $180goo- 000- ,000 1500- 23 2.5 2300 WELLINGTON COURT & DODD ROAD , AVG. LOT TOT. MONTH PROJECT/LOCATION/ OPENING TOTAL PRICE LOT SIZE HOME & LOT PRICE RANGE SQ FT RANGE LOTS SOLD SALES RATE --------------- DEVELOPER DATE UNITS RANGE RANGE _-------COMMENTS ASPEN RIDGE 1/01/83 125 $35,000- 12000 - $120,000- 2000- 120 RIDGEWOOD, NORTH OF WESCOTT $43,000 16000 $280,000 3300 EAGAN,tMN MONTGOMERY BUILDERS COUNTRY HOLLOW 6/01/87 99 S27,900- 8000 $130,000- 1350- 112 2.1 COUNTRYSIDE DR.. NORTH OF DIFF $35,900 15000 S180,000 2600 EAGAN, MN PROGRESS LAND CO. CUTTERS RIDGE 10/01/88 45 - - - 45 1.5 CUTTERS LANE, OFF PILOT KNOB R EAGAN, MN KEY LAND HOMES DEERWOOD TRAIL 5/15/88 85 $35,000- 12000 - $150,000 2200- 83 2.0 DEERWOOD TRAIL, SOUTH OF DEERW $40,000 17000 $205,000 3000 EAGAN, MN MITTLESTAEDT CONST. FAIRWAY HILLS 12/01/87 140 $30,000- 10000 $120,000- 1600- 86 1.9 INTERLACHEN DRIVE, OFF PILOT K $40,000 18000 S200,000 2500 EAGAN, MN DEREK DEVELOPMENT LEXINGTON POINTE V11 & V1l`l 3/15/90 32 S2g,900 10000 12000 S110,000- S120,000 1000- 16 0.9 1200 LEXINGTON PARKWAY, SOUTH OF DI EAGAN, MN TRI -LAND DEVEL. LEXINGTON SQUARE 7/01/88 50 $23,900- 16500 - $115,000- $135,000 1000- 49 1.3 1350 STONEY POINT, OFF DANBURY TRAI EAGAN. MN MERITOR DEVELOPMENT PRAIRIE RIDGE HILLS III 1/01/91 39 '537900 12750 - 25500 $180goo- 000- ,000 1500- 23 2.5 2300 WELLINGTON COURT & DODD ROAD , TABLE 6 COMPOSITE SALES SUMMARY NON—PRODUCTION CUSTOM HOME/LOT SALE DEVELOPMENTS ROSEMOUNT, MINNESOTA MARKET AREA OCTOBER 1991 PAGE: 4 AVG. LOT TOT. MONTH PROJECT/LOCATION/ OPENING TOTAL PRICE LOT SIZE HOME do LOT SQ FT LOTS SALES DEVELOPER DATE UNITS RANGE RANGE PRICE RANGE RANGE SOLD RATE COMMENTS SUMMER PLACE 8/15/89 34 $24,900— 8000 — $115,000— 1200— 20 0.8 SUMMER LANE, NORTH OF CLIFF RO $27,900 10000 $150,000 1700 EAGAN, MN J. MILLER CONST. SUNRISE HILLS 8/01/88 60 $35,900- 21780 — S130,000— 1500— 57 1.5 WESCOTT HILLS DR.,N. OF NESCOT $41,900 S175,000 2500 EAGAN, MN JOSEPH MILLER TABLE 6 COMPOSITE SALES SUMMARY NON -PRODUCTION CUSTOM HOME/LOT SALE DEVELOPMENTS ROSEMOUNT. MINNESOTA MARKET AREA OCTOBER 1991 PAGE: 5 AVG. PROJECT/LOCATION/ LOT OPENING TOTAL PRICE LOT SIZE HOME k LOT SQ FT TOT. LOTS MONTH SALES DEVELOPER DATE UNITS RANGE RANGE PRICE RANGE RANGE SOLD RATE COMMENTS DAKOTA COUNTY ESTATES 7/01/811 360 S18,000- 6000 - $78,000- 860- 331 3.8 180TH & ECHO DRIVE $20,000 10000 $120,000 1200 FARMINGTON, MN EVERGREEN INVST. i TABLE 6 'COMPOSITE SALES SUMMARY NON -PRODUCTION CUSTOM HOME/LOT SALE DEVELOPMENTS ROSEMOUNT, MINNESOTA MARKET AREA OCTOBER 1991 PAGE: 6 PROJECT/LOCATION/ LOT OPENING TOTAL PRICE LOT SIZE HOME & LOT SQ FT TOT. LOTS AVG. MONTH SALES DEVELOPER DATE UNITS RANGE RANGE PRICE RANGE RANGE SOLD RATE COMMENTS GREAT OAK SHORES 1/01/89 73 S38,000- 16000 - $200,000- 2200- 16 0.5 KANELEB & ORCHARD TRAIL $60,000 21780 S250,000 3500 LAKEVILLE, MN OZMUN-PEDERSON LYNWOOD NORTH 4/15/88 158 528,500- 9000 - $130,000- 1200- 112 2.7 170TH & IPAVA DRIVE $34,000 14000 $195,000 1850 LAKEVILLE, MN M.W. JOHNSON SHADY OAK SHORES 7/01/89 143 $20,900- 10890 - S95,000- 1200- 46 1.7 GLENCOE AVENUE, SOUTH OF 170TH $30,900 28750 $160,000 1900 LAKEVILLE, MN BRIDLEWILDE DEV. N � n C n Z n m J�J i ' I i I 77, VIII _ CLUSTER CONCEPT GlM�L. �,�Wte�NT C CLUSTERCONCEPT Z"e- VOW TABLE 6 COMPOSITE SALES SUMMARY NONPRODUCTION CUSTOM HOME/LOT SALE DEVELOPMENTS OCTOBER 11 gg1 MINNESOTA MARKET AREA ,OCTOBER PROJECT/LOCATION/ DEVELOPER OPENING TOTAL LOT PAGE: 1 DATE UNITS PRICE LOT SIZE AVG. --__ _ RANGE RANCE HOME & LOT Sq FT TOT. MONTH APPLE PONOS 11 & 111 ________________RANG PRICE RANGE RANGE LOTS SALES GALAXIE AVE. 4/01/90 J2o_________ SOLD RATE COMMENTS APPLE VALLEY, MGARRETT DR, $22,900- _ ______________________________ BART WINKLER $27,900 16000 590,000- S 140 , Ooo 1500 49 2.7 CARROLTON ESTATES HAVEN AVE. & 147TH 6/01/85 300 APPLE VALLEY, MN 520,000- 9000 WINKLER DEV. $30,000 11000 S90,000- 1000-295 S145,DOD 1500 3.9 EAGLE HILLS GARDENIA PATH, NORTH OF 136TH 2/15/90 72 APPLE VALLEY, MN S27,900 10400 ARGUS DEVELOPMENT S36,900 13500 5120.000- 1800- 67 $160,000 2500 3.4 EAGLE POND GALAXIE AVE. & 136TH ST. 3/01/90 42 APPLE VALLEY, MN $41 000- 10890 BILL COADY S41,000 14520 $124.500- 1400- 35 $195,000 2400 t.8 ROLLING RIDGE DRUMLIN APPLE COURT, OFF DIAMOND PAT 8/01/87 151 $24 aPPIE VALLEY, MN ,900- 10000 RSM HOMES $31,000 13000 S115,o00 1200- 133 $160,000 2000 2.6 I- , N I I 11 I W it 11 II • JI U Q n a n 1 u u u u In n ru 2 If W II Z 11 � II on U u I 11 II 11 I I II S N If h- W W 11 O UZJM- 11 >OQQn II u •Np II ? 000 II rJN 11 II !I 11 r W II I O C:, WUu OO 0% CID O Q 11 (y to S II In it r 11 Z W II t Oz II O O IL J Q 71 0 0 0 11 J aid 11 O In 1+! > W 1 ? N W U 111 N NN O Oar If xa 11 W p J II I N Q jj W 11 r OQ NW 11 Wo 11 \r Z II O O fx Omli CO }=Q J 11 II 0— � II I Zo<II u OOO WW II C N=� x-00 11 00 0-211 J =< 11 IT O7 hUZ C6= 11 N? W2Z II Vfin J O — 11 I;A r A JN 11 Qr 11 N W�r� If i♦1 raz 0 0 2 `OHC=W r0 II WOc.1CID J d I W O of U II ON co Cox 01- <U2C0zIW— li M C-0 11 O O 11 I II 11 II I II II II I I it 11 II 11 11 S r 11 O \ 11 J1 Z 11 .- O u u 2 r II �r O II QW0 \W II UJJV rC6 11 OJ—N4 if JC 11 W cc V) '••) W: N 2 E O> QLa Q r� x011 OUI'nQ