EDC 05-21-2013 - Laserfiche WebLink

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EDC Meeting Agenda May 21, 2013 Page 4 As mentioned above, Pulte would like to reach an agreement with the City on May 28th. Given the tight time frame, staff wants to alert the EDC to the major business provisions. If a draft of the agreement can be finalized in time, staff will share it with the EDC on Tuesday. Action Requested: Staff is seeking feedback from the EDC on the business terms as described. B. Update on APi Group Negotiations. As you know, staff has been in discussions with APi Group for over a year on an office expansion project in New Brighton Exchange. The talks last summer were initially focused on completion of the 9,000 square foot building on their existing campus, but have since shifted toward a much larger project on the 4 acre site referred to as Block G(north). APi met with the Council last December and shared their plans to build up to 75,000 square feet of office space in two different buildings. We are pleased to report that we have worked through most of the major issues and are finalizing a term sheet that we expect to present to the Council for formal approval in June. Development APi is proposing to build a 45,000 square foot building on the Scope: south 2 acres of the site. They want the option to build a second building of up to 30,000 square feet on the north half of the site. The company is prepared to pay consideration for the option, which is described later. Land Price: APi will pay $8 per square foot for the land. This price is considered very good for the current market(according to Colliers and Ryan) and is consistent with a third party appraisal completed earlier this year. This is also the price of the land for the option parcel. As an aside, it is the same price APi paid for their current HQ site, which was purchased prior to the last recession. The term sheet states that the City would consider a price reduction to assist with structured/underground parking or extraordinary environmental costs. The site is clean, however given the presence of the Miller Dump across the street,the MPCA may require a venting system. Phasing: APi will close on the south 2 acres by December 31, 2013. This means that the company will need to finalize a redevelopment agreement and go through the land use approval process in the next 6 months. The closing date for the option parcel will be December 31, 2015. Public All of the public improvements have been installed by the City, Improvements: however in the event that APi has to modify these improvements, the company will pay for these costs.