EDC 11-16-2010 - Laserfiche WebLink

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costs of the project are less than the project budget as submitted to the City, the first $200,000 would be repaid to cover the balance of unpaid park dedication fees. Any remaining project budget would be split between the City and the redeveloper at a 25% (city) / 75% (SC) level. The second look back would only be invoked if the redeveloper sells the building within 10 years. At the time of the sale, the redeveloper would prepare a description of sales proceeds, equity invested, and annual cash flow (excluding depreciation). If such a calculation results in proceeds in excess of a 16% internal rate of return, the remainder will be split between the City and the redeveloper at a 50%/50% level. The City and the redeveloper will formalize the transaction by entering into a Contract for Private Redevelopment. Due to the complexities of the underlying financing for the Northwest Quadrant, the City will take the lead in drafting this document. The City's redevelopment counsel would work with counsel for the redeveloper and any lenders. Commissioner Nelson questioned if the forgiveness goes with the sale in the event the developer sells the property. Director Fernelius responded details to that level have not been worked out yet. Commissioner Nelson questioned the value of Block G. Director Fernelius reported he thought that sites G and H would have comparable values. It was reported a new curb cut would need to be installed to allow access to the site, as well as a change to one of the existing medians. Commissioner Smith questioned the cost to build the project. Director Fernelius responded approximately $17.5 million. Commissioner Flahave questioned the breakdown of units. Director Fernelius responded they are proposing 45%, one bedroom, 45% two bedroom, 5% three bedroom and 5% studio units. Councilmember Bauman stated she questioned the developer as to if they have completed a market study. They stated they will likely to do in the future; the breakdown of units could change depending on the results of the market study. Estimated rent was reported to be approximately $1200 for a one bedroom unit, with many amenities included. Councilmember Bauman stated she would like to see the City have some type of guarantee that the City will recoup their costs. Director Fernelius reported it is anticipated to have a contract complete by November 2011. Marketing Efforts Director Fernelius reported Arne Cook will be assisting the City in finding a broker to begin marketing the NWQ site to developers and users. The City Council will consider an agreement sometime in October following a work session to allow discussion. Northwest Quadrant Naming Contest Director Fernelius reported there is a wide range of concepts that were submitted, including a few duplicates. Chairperson Nelson suggested the EDC forward a list of their top three choices from the abbreviated list to Director Fernelius by the next EDC meeting in order to narrow down the entries, and then present the list to the City Council, Other Topics Railroad Wye Director Fernelius reported the railroad suggested building the wye, using it as a second team track (a dead end track), and paying the City on the basis of a per car use. Director Fernelius reported the council was united in their decision that if this is not a good deal for the city, they would not be interested in continuing. Highway 96/Highway 10 Grade Separation Project Director Fernelius reported the Public Works Director contacted Ramsey County, background information along with a drawing showing the proposed alignment was included in the packet. It was reported that there will be no work occurring within the 135W right of way; other than signal work. New Brighton will really not be impacted from a construction perspective. The major element includes two bridges on Highway 10, going over Highway 96. Construction is anticipated to begin in 2012.