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Agenda Section: VIII-5 <br /> CITY OF NEW BRIGHTON <br /> Report Number: 96-044 <br /> REQUEST FOR COUNCIL CONSIDERATION <br /> • Report Date: February 13, 1996 <br /> ITEM DESCRIPTION CONSIDERATION OF REDEVELOPMENT AGREEMENT WITH <br /> INDUSTRIAL EQUITIES GROUP FOR TIF DISTRICTS#21&#22. <br /> DEPT. HEAD'S APPROVAL: <br /> MANAGER'S REVIEW/RECOMMENDATION: <br /> i <br /> No comments to supplement this reportkra____ Comments attached <br /> EXPLANATION/SUMMARY (attach supplemental sheets as necessary) <br /> Industrial Equities Group(IEG)has proposed to enter into a redevelopment agreement with the City to complete the <br /> development of the Lakeview Business Park(LBP) located generally south of Jones Lake. The Lakeview <br /> Business Park was begun in 1993 with the construction of the US West facility on Lakeview Point.IEG's proposal calls <br /> for construction of at least three more buildings with a total minimum area of 162,500 square feet over the next three <br /> years. Attached are maps showing the location of the project and the three phases. Total estimated market value would be <br /> at least$5,420,000 when completed. <br /> A redevelopment agreement between the City and 1EG has been drafted by Casserly and Molzahn for the City Council's <br /> review and approval. IEG has agreed to the terms and conditions of that agreement and is prepared to proceed with the <br /> project. A resolution of approving the agreement and authorizing its execution by the Mayor and City Manager has been <br /> attached to this report for City Council consideration. Adopting the resolution enables implementation of this project. <br /> • Below is additional information on the proposed project and the terms of the redevelopment agreement. <br /> The initial phase of the project will be a 46,746 square foot office/showroom building similar to the similar to the Intre <br /> State Business Center project developed by IEG in 1989. The building materials will be brick and glass and largely <br /> finished space for offices or services. It will be built in the current TIF District#21 (the Brost property) located between <br /> the Pletscher's Greenhouse and the MacDonalds on Old Hwy 8. The City is in the process of acquiring this site, having <br /> entered into a purchase agreement with the Brost Estate on December 19, 1995. Development of this site will begin <br /> shortly after closing on the purchase of the property from the estate later this spring. Completion of the structure will be no <br /> later than one year from the sale of the property to IEG. <br /> The phase 2 building and the phase 3 building will be completed no later than two and three years from the sale of the <br /> property to IEG respectively. Phase 2 will have a minimum size of 80,000 square feet and minimum value of$2,400,000. <br /> Phase 3 will be a minimum of 40,000 square feet and minimum value of$1,320,000. Construction of the phase 2 and 3 <br /> buildings will be compatible and complimentary to the existing Lakeview 1 building at 701 Lakeview Point. <br /> RECOMMENDATION <br /> TO WAIVE THE READING AND ADOPT THE RESOLUTION AUTHORIZING EXECUTION AND <br /> DELIVERY OF A CONTRACT FOR PRIVATE REDEVELOPMENT (LAKEVIEW SOUTH),BY AND <br /> BETWEEN THE CITY OF NEW BRIGHTON AND INDUSTRIAL EQUITIES GROUP,LLC. <br /> • ._ . _ <br /> Kevin Locke,Director of Community Development <br /> I;C OMM D E V IC D196-C C R1 KE V I N102-I EG RA W P D <br />