EDC 08-21-2013 - Laserfiche WebLink

Home Browse Search

NOTES TO ECONOMIC DEVELOPMENT COMMISSION AGENDA August 21,2013 IV. New Brighton Exchange A. Update from Colliers and Ryan Co. on Marketing Activities Staff has invited representatives from Colliers and Ryan Co. to attend the EDC meeting on August 21st and provide the group with an update on marketing activities. The team has been asked to discuss the outlook for the current office/commercial market; the specific activities that have been done to date; and the types of inquiries that have been received for New Brighton Exchange. A copy of the most recent marketing report by Colliers is attached. The last time the EDC received an update was in November 2012. Since that time,the team has been reporting that the trend in the marketplace seems to be from smaller users (25,000 to 30,000 SF in size). Although we have received some inquiries, nothing has materialized to date. One of the marketing/policy questions we would like to discuss on Wednesday is whether the City should re-focus on these smaller users. The trade off would be to attract development sooner(albeit smaller) versus waiting for larger users later. In all likelihood, this would mean subdividing one or more parcels on the east side. One idea is to subdivide Block F into two lots that could accommodate two buildings of up to 40,000 SF. Attached is a concept plan that Ryan prepared to help visualize the layout. There are pros and cons to this approach and we'd like some feedback on the appropriateness of pursuing this marketing strategy. Other topics we plan to discuss on Tuesday include additional signage and extending the listing agreement with Colliers through 2014 to run in conjunction with our Ryan agreement. We should note that the marketing video is now accessible from the City's project website. http://www.newbrightonexchange.com/ B. Update on Pulte and API Proposals Pulte The company continues their due diligence efforts in anticipation of a land use request this fall. The company's environmental consultant reported this week they are planning to do additional Phase II investigations (i.e. soil testing) soon and prepare their own Response Action Plan (RAP). The RAP will focus on vapor mitigation and soil cover. Pulte has enrolled in the voluntary investigation program (VIC) at the agency. So far their testing has identified some minor petroleum hits, but no methane. Everything seems to be moving in the right direction. API Legal counsel for both sides have been in discussions about the draft redevelopment agreement. We are now waiting for feedback from the company on the first draft of the redevelopment agreement. APi has also indicated that they are planning to start invasive soil testing soon.