EDC 06-18-2013 - Laserfiche WebLink

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Not Approved MINUTES New Brighton Economic Development Commission Regular Meeting—May 21, 2013 7:30 a.m. Members/Liaisons Present: Chair Pro-Tern Al Potter, Commissioners Mike Murlowski, Linda Zelm, D.L.Beach, Kevin Peck and Councilmember Paul Jacobsen Members/Liaisons Absent: Commissioners Paul Zisla and Bruce Knight Staff Present: Grant Fernelius-Community Development Director, Katie Bruno-Office Assistant. Also Present: Scott Landsman, Hoff, Barry&Kozar, P.A. and Mark Ruff, Ehlers Call to Order Chairperson Potter called the meeting to order at 7:30 a.m. Approval of Minutes Motion by Commissioner Potter, seconded by Commissioner Zelm to approve the minutes from the March 19, 2013 meeting. Approved 6-0 Report from Council Liaison Councilmember Jacobsen introduced himself to the commission. He reported that the Council recently adopted an Ordinance regarding Tobacco regulations. Urban Farming and Budget Discussions are scheduled worksession topics for the near future. New Brighton Exchange Update on Pulte Homes negotiations Director Fernelius reported that Pulte and the City entered into an Exclusive Negotiations Agreement that gave the company until October 31, 2012 to investigate the site. Pulte subsequently submitted a Letter of Intent to purchase the site and then met with the City Council last December to discuss their offer. Pulte indicated at the time that they wanted a more formal agreement with the City before investing substantial resources in additional testing and due diligence efforts. Typically, the City uses a Term Sheet to start the negotiations, which becomes the framework for a more comprehensive redevelopment agreement. Due to time constraints, Pulte would like to have the agreement presented to the City Council on May 28th and if approved, start the site investigation process/due diligence phase shortly thereafter. Director Fernelius reviewed the major items from the Redevelopment Contract.Pulte has agreed to pay$2,309,650 for the site, which is approximately 27 acres. Because there is additional environmental remediation to be done and possibly additional soil (beyond what the City has already imported), the parties have agreed to escrow$1,000,000 at closing. At a minimum, the City would receive $1,309,650 for the land, which is consistent with a third-party appraisal completed for the City in January of this year. Commissioner Zelm questioned if the financial health of Pulte has been verified. Both Fernelius and Ruff stated that they are not concerned, noting that Pulte has a good reputation in the community and the City's risk is minimal. Commissioner Murlowski stated that he is pleased with the structure of the agreement. Fernelius reported that Pulte will take the site down in two phases; the first being around August 15, 2013 or 30 days after all City approvals, but not later than December 31, 2013. This will consist of