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EDC Meeting Agenda May 21, 2013 Page 6 Existing close on the south parcel and develop the 45,000 square foot Obligations: building, the company would continue making annual payments (through 2035) of$17,300 to the City as compensation for the lost tax increment on the smaller building. The parties are nearing completion of a formal term sheet which includes the elements described in this memo and few other minor provisions. Staff is planning to finalize that document in the next couple weeks and present to the Council on June 11th. If approved, staff and the developer would begin working on a Redevelopment Agreement and present that document for consideration at a later date. Again, if a draft of the term sheet is available, we will present it to the EDC on Tuesday. The economics of APi's project are shown on Attachment 4. This analysis was prepared last fall and shows the impact of APi' expansion(highlighted in salmon color), relative to some of the other redevelopment scenarios that the City envisioned. Obviously,the attractiveness of APi's proposal is the larger development prospect(75,000 SF). If APi does not build the second building (30,000 SF),the project does not have the same economic impact. However, the City has no other development prospects for this site and there are some advantages to "kick-starting" commercial development with APi's proposal. Action Requested: Staff is seeking feedback from the EDC on the business terms as described. C. Colliers/Ryan marketing report. Attachment 5 is the marketing report for April 2013 form Colliers. There is no new activity to report since the March update. During a conference call this week, Colliers mentioned that it is hearing about smaller users (15,000 to 30,000 SF)that are looking for sites. The large office users, simply have not been as active in the market. As such, Colliers is suggesting that the City and Ryan look at subdividing development parcels on the east side to consider a smaller building and lot. Ryan will start work on some concept plans and we'll make these available to the EDC and Council for review at a future meeting. V. Other Topics D. Introduction of new commissioner Kevin Peck. Last month the Council appointed New Brighton resident Kevin Peck to the EDC for a three year term. Mr. Peck is a commercial real estate agent. Welcome Kevin.