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91 NEW Report Number 11-119 <br /> BMGHTON Agenda Section VI-7 <br /> the city that works for you Council Meeting Date April 12, 2011 <br /> REQUEST FOR COUNCIL <br /> CONSIDERATION <br /> ITEM DESCRIPTION: Consideration of Second Amendment to Contract for Private Redevelopment by and <br /> between the City of New Brighton and API Group Headquarters,LLC regarding construction of Second Office <br /> Building. <br /> DEPARTMENT HEAD'S APPROVAL: Grant Fernelius, Community Development Director <br /> CITY MANAGER'S APPROVAL: <br /> No comments to supplement this report Comments attached <br /> Recommendation: <br /> Approve the attached resolution authorizing a Second Amendment to the Contract for Private <br /> Redevelopment by and between the City of New Brighton and API Group Headquarters,LLC regarding <br /> construction of a second office building. <br /> Legislative History: <br /> January 23, 2007 City Council approved a term sheet with API Group Headquarters, LLC <br /> for construction of two buildings: 1) 54,000 square foot headquarters; and <br /> 2) 9,000 square foot office building. The resolution also authorized <br /> execution of a Contract for Private Redevelopment consistent with the <br /> term sheet(dated May 10, 2007). <br /> October 14, 2008 City Council approved a first amendment extending the deadline for <br /> completion of the second building. <br /> Financial Impact: <br /> The proposed amendment would include API Group Headquarters, LLC to make a payment-in- <br /> lieu of tax increment(PILOTI)to the City. See below for a description of these payments. <br /> Explanation: <br /> Under the terms and condition of the amended Contract for Private Redevelopment with APi <br /> Group Headquarters, LLC (API),the company is obligated to construct a second office building <br /> at the corner of Northwest Parkway and Old Highway 8. <br /> This provision was incorporated into the agreement, because the parties acknowledged that the <br /> company was not maximizing the development density of the site. APi was originally obligated <br /> to complete the second building by December 31, 2008. In October 2008,the company <br /> approached the City and requested an extension of the start and completion dates. The <br /> construction start date was moved to no later than May 15, 2011; with completion due by <br /> I:\COUNCIL\REPORTS\2011\Community Development\Council Report-APi Group Inc(2nd Amendmentl).doc <br />