#77 3-25-97 -8-12-97 97-053 - 97-183

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Agenda Section: VI II-3 CITY OF NEW BRIGHTON 9 7-1 8 2 Report Number: REQUEST FOR COUNCIL CONSIDERATION • Report Date: August 12, 1997 ITEM DESCRIPTION RESOLUTION AMENDING A CONTRACT FOR REDEVELOPMENT FOR BRIGHTON CORPORATE PARK II DEPT. HEAD'S APPROVAL: MANAGER'S REVIEW/RECOMMENDATION: No comments to supplement this report 'W/ Comments attached EXPLANATION/SUMMARY In June 1996, the City entered into a contract for private redevelopment with Industrial Equities Group for the Brighton Corporate Park II area within TIF District#15. The agreement called on the developer to construct four buildings over four years beginning in 1996 and concluding in 1999. For the development to occur, the City was obligated to acquire the necessary sites and deliver them to the developer in a timely basis. The first building, the largest, was completed in 1996. The second building was to have been completed by the end of this year. However, complications regarding site acquisition have delayed the start of the second building and it will not be possible to complete Phase II by the end of this year. .ty Council action is being sought at this time to amend the re-development agreement. The amendment will ift the schedule for completion of site acquisition and construction of the second and third buildings back one year. Originally completion of the second and third buildings were to occur by December 31, 1997 and December 31, 1998 respectively. The amendment calls for the second and third buildings to be completed by December 31, 1998 and December 31, 1999 respectively. The overall deadline for the completion of the project (all four buildings) remains the same, December 31, 1999. Besides the adjustment in the schedule for buildings two and three, the amendment corrects a typographical error in the original agreement regarding the tax deficiency guarantee provided by the developer. The amendment inserts a missing phrase in the formula for calculation of property taxes for the project. The amendment to the agreement and a resolution approving and authorizing its execution is attached. It has been prepared by Jim Casserly the City's attorney for redevelopment and TIF projects. The amendment of the agreement is recommended. RECOMMENDATION TO WAIVE THE READING AND ADOPT THE RESOLUTION AUTHORIZING EXECUTION AND DELIVERY OF A FIRST AMENDMENT TO THE CONTRACT FOR PRIVATE REDEVELOPMENT(BRIGHTON CORPORATE PARK II)BY AND BETWEEN THE CITY OF NEW BRIGHTON AND INDUSTRIAL EQUITIES GROUP,LLC. • K vin Locke, Director o mmunity Development I1COMMDE\ACD1-97-CCIREPORTS\KEVIN17O SCP2A.WPD