Recently annexed land included in the Aero Business Park will start at $50,000 per acre.
The Princeton City Council set the price of the 42 acres of property at its March 25 meeting. All together the land would be worth approximately $2.1 million.
“We don’t want to be low-balling the property around here, we want it to be competitive and also make our money back on the investment that we’ve made as well as to give us some room to pay for some of the infrastructure that will be required,” Community Development Manager Stephanie Hillesheim said.
The expansion is bordered by First Street on the north and Sylva Corporation Inc. to the south, with the Princeton Municipal Airport and Highway 169 on the east and west sides.
Princeton initially purchased the land for $525,000 — approximately $12,500 per acre. The city estimates it will cost around $1.4 million to install infrastructure improvements such as water and sewer on the land.
The price was a recommendation from the Economic Development Authority. EDA members initially discussed setting the price at $39,000 or $45,000 per acre, but ultimately settled on $50,000, according to a draft version of the Feb. 18 EDA meeting minutes.
Hillesheim said she thought the price was a good starting place for businesses that are interested in constructing new facilities on the land.
“I think we’ll see some good development on it, which is our goal — to grow the tax base,” Hillesheim said.
The land is anticipated to be platted into Princeton’s industrial MN-1 zoning, according to Hillesheim. That would allow business types including manufacturing, printing, offices, research and design laboratories, warehouses, wholesale businesses and more.
Going hand-in-hand with the industrial park expansion is a new connection between 19th Avenue and 21st Avenue South. The city is waiting on FAA approval, but complications with one of three lots will likely delay construction until next year, according to City Administrator Michele McPherson.
“Two out of the three parcels are what I would call no-brainers, but the third one is going to require some fairly extensive FAA review,” McPherson said.
That will likely push any approval out until fall, meaning the project won’t go to bid until winter. That would mean construction begins sometime in the spring of 2022.