CCP 02-22-2011 - Laserfiche WebLink

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Director Fernelius shared the following potential schedule: January 25,2011 City Council considers revised development agreement and use applications. March 2011 Construction plan review and permit process. April—May 2011 Close on land and construction financing. June 30,2011 Deadline for ground breaking and first disbursement of cash assistance($500,000). December 31,2011 Deadline for second disbursement of cash assistance($700,000). December 31,2012 Deadline for project completion. Commissioner Beach asked why the City would remove the tax exempt stipulation. Director Fernelius responded that while the tax exempt statues could have implications on the City; the likelihood of a tax exempt tenant moving into the facility is very small. Commissioner Smith questioned if the City is able to confirm Stuart's financial situation? Director Fernelius confirmed the City is unable to do so, and a element of risk is possible with any developer. Councilmember Bauman questioned when the developer will have bank approval. Director Fernelius stated that he was not sure of when,but stated that they will have to have all requirements met by closing. Commissioner Beach asked if there has been any past practice of Stuart converting properties to tax exempt status. Fernelius reported they have not done so before. Commissioner Beach questioned the need for additional rental property in New Brighton, and expressed concern with occupying the units. Director Fernelius stated the market indicates a demand in market rate rental housing. Councilmember Bauman stated the market study has not been done yet. Commissioner Benke stated he is confident the lender will look at market research once the project is approved. Councilmember Bauman expressed concern with the possibility of transient population. Office Marketing Efforts Director Fernelius reported the City has been working with Arne Cook for brokerage and developer services. A RFQ will solicit interest from some of the larger brokerage and development firms in the Twin Cities. Staff will then share the responses with the EDC at the March meeting. It can be later determined if the EDC would like to interview the candidates in advance of making a recommendation to the City Council. Commissioner Benke requested the list of respondents be made available at the February meeting. Grant Funding In total the City received $8.625M of grants dating back to the 2005 from the Minnesota Department of Employment and Economic Development (DEED), the Met Council and Ramsey County. The funds played a crucial role in the completion of environmental clean-up and infrastructure activities. Commissioner Murlowski questioned if there was anything to report regarding competition for the Northwest Quadrant. Director Fernelius reported the GSA is in the auction process to sell the TCAAP site in Arden Hills. Fernelius shared his opinion that that site is still several years away from being developable. Councilmember Bauman stated the site is in better condition than thought, and there aren't as many hot spots either. Commissioner Benke stated there are different levels of cleanup regarding industrial verses residential. Benke reported Twin Lakes in Roseville is currently working on their infrastructure. Director Fernelius stated most of the demand for the Northwest Quadrant will come form New Brighton, or very near by.