EDC 01-15-2013 - Laserfiche WebLink

Home Browse Search

NOTES TO ECONOMIC DEVELOPMENT COMMISSION AGENDA January 15,2013 IV. New Brighton Exchange A. Update on APi discussions (Informational) The City Council met with representatives from APi Group on December 11, 2012 to learn more about the company's plans to expand on the vacant lot north of their current headquarters. The presentation by APi was very similar to the one given to the EDC in November. Staff talked about the policy implications of changing the planned use from residential to commercial, along with the economic impacts. The Council was supportive of the project and directed staff to start negotiating details of a potential deal with APi. Over the course of the next month or so, staff will start crafting a term sheet that identifies the major business terms for a potential deal with APi. Once the sides outline the framework of a deal,that would be shared with the City Council and EDC. Eventually,those terms would be incorporated into a formal redevelopment agreement. Attached as Exhibit 1 is a sample term sheet was used for the APi Headquarters project in 2007. This document will be used as a template for current discussions with APi. Because formal negotiations are pending,there is some sensitivity to discussing specific business terms. The City is a public entity and so any open discussion of proposed terms or strategy would put the City at a negotiations disadvantage. The key issues for this deal will include: 1)price for land; 2)possible write down to help with structured parking(to maintain building densities); 3) length of option period; 4) financial consideration to secure option parcel; and 5) how to handle financial impacts of the unfinished office building. Attached as Exhibit 2 is a proposed schedule for the APi expansion project. The dates are based on APi's proposal, which has not been accepted by the City and is therefore subject to change. B. Update on Pulte Homes discussions (Informational) The City Council reviewed Pulte's proposed offer on December 4th and expressed continued interest in the project. For the most part,the Council was supportive of the project. Some questions were raised about the townhomes and whether Pulte would consider a different design(one story)that might have more appeal to seniors in New Brighton. Pulte was non- committal about a different design, but explained those units would not be constructed for at least 3 years. Other Council comments concerned the proposed 8 acre park area in the northwest corner of the site. The City would retain this land(because of its environmental history) and develop the area into a park. The current site plan shows ball fields, which the City has never formally discussed. In 2008,the City went through a planning process and several different concepts were evaluated from passive space to soccer fields and a dog park. The Council at that time chose not to make a decision on a design. Staff plans to ask the Council to re-visit park planning in the next year.