EDC 01-15-2013 - Laserfiche WebLink

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Commissioner Murlowski asked if a financial comparison has been completed detailing the various tax base scenarios. Director Fernelius directed the commission to a spreadsheet included in their packet; providing a simple analysis noting the office use compares very well to the residential use. Fernelius stated that Stuart Co. is pleased with their current lease numbers; however they are not ready to expand. Fernelius reported that neither Stuart Co. nor Pulte Homes expressed concern with the proposed APi project. Commissioner Knight asked Mr. Shipman if they would be interested in site A if the City were to cover the cost for pedestrian access. Mr. Shipman reported that APi may possibly be interested and is evaluating the costs. Commissioner Potter expressed concern with potentially leaving parcel A undeveloped. Director Fernelius confirmed that site could be developed by another Company. Commissioner Zelm expressed concern with the failure of APi to build on site K as originally agreed upon. Fernelius clarified that the City has not yet released APi from it's contractual obligation, and that is part of the forthcoming negotiations, noting that APi has been communicating with the City all along. Mr. Shipman stated that APi would continue to figure a way to offset any tax revenue that may be lost. Chairperson Zisla summarized that the commission seems more concerned with contract issues, than concept issues, noting it makes sense to try to work with APi in their expansion efforts; the commission agreed. Commissioner Neumann-Walker questioned if APi may expand into the fracking market? Mr. Shipman confirmed that is a possibility, and they could have substantial growth in the gas and oil market. Mr. Shipman extended an invitation to the commission to visit APi. Presentation by Colliers and Ryan Co. on Marketing Activities Director Fernelius introduced Craig Lien, Ted Gonsior and Casey Hankinson. Craig Lien explained that Ted Gonsior has been independently marketing the land, and Casey Hankinson markets for Ryan Co. to develop buildings. Lien stated that the recession has and continues to be difficult, noting all marketing channels are being utilized. Contributing factors include consolidation of companies as well as rent costs. Chairperson Zisla asked if any site specific issues have been expressed. Lien responded that the most common complaints are the limited access and lack of amenities in the area. Lien stated that many of the larger companies are south and west of the metro. Casey Hankinson reported that there have been two promising prospects; one ended up renewing their lease in New Brighton, the other went to Roseville. Hankinson noted that many prefer moving into existing buildings, as it most efficient. Hankinson stated that APi's expansion is promising and as the market tightens,New Brighton Exchange will be attractive to tenants. Craig Lien stated that the current market is in the area of med-tech buildings and medical manufacturing buildings. Hankinson commented that the New Brighton Exchange is somewhat challenging because of the specificity of parcels. Chairperson Zisla commented that the EDC will need to continue to balance the need for quick development verses waiting for desired proposals. Commissioner Knight asked if there any changes the City should consider. Hankinson stated that the City's vision is in line with the market, as well as being adaptive when necessary. Commissioner Knight asked what system of measurement is used to measure progress. Fernelius receives a monthly report of prospects from Colliers; which is shared with the EDC. Casey Hankinson suggested that signage would be beneficial, Councilmember Burg agreed, and suggested the EDC recommend signage to the council. Commissioner Potter stated that he feels the area is over signed. Commissioner Murlowski asked when the vacancy rates are expected to improve. It was reported that many companies have downsized, and the need for additional space is not being sought out, the general consensus for improvement in vacancy rates is the year 2014.