EDC 10-16-2013 - Laserfiche WebLink

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ECONOMIC DEVELOPMENT COMMISSION Supplemental Notes to October 16,2013 EDC Meeting The following are supplemental notes for certain items on the regular meeting agenda. IV. New Brighton Exchange A. Pulte Homes Pulte Homes (Pulte) received their formal land use approvals from the City Council on September 24th The project will be called The Enclave at New Brighton Exchange. The land use approvals included a code amendment (i.e. to allow single-family development in the underlying zoning district); a preliminary Planned Unit Development (PUD) and plat for the entire site; and final PUD and plat approval for Phase 1. The project encompasses 89 single-family homes and 32 townhomes for a total of 121 units on 27 acres of land. Pulte Homes plans to develop the site in 2-3 phases: Phase 1: 61 single-family lots (2014) Phases 2-3: 28 single-family homes (2015) and 32 town homes (2016) The company would need to come back to the City for PUD and plat approval on the next phases. At the Council meeting, Pulte indicated that they would like to do some site grading this fall and install utilities and streets on a portion of the site to allow for the construction of two model homes. Under an ideal scenario, the models would be open for the Spring Home Preview next March. On Wednesday Pulte alerted the City that it still hasn't received its environmental approvals from the Minnesota Pollution Control Agency (MPCA). These approvals are needed before the company can close on the property. As such, they are asking for additional time (up to 60 days) to complete the due diligence phase. Any extension of time would need to be approved by the City Council, which doesn't meet until October 22na Staff has requested more information from the company on the anticipated timing of MPCA approvals and a potential closing date. We'll continue to keep the EDC apprised of any updates. No action is requested at this time. B. API Group Expansion Attorneys for APi Group presented a draft of the Redevelopment Agreement for the expansion project in mid-September. While most of the changes were minor, a couple of business terms were changed. First, the company is requesting to extend all dates by 9 months. While this request is understandable, it does have potential financial implications. For example, the 9 month delay pushes back the likely completion date of the building from 2014 to 2015, meaning that the City will not receive the full tax benefit until a year later than projected. Ehlers has indicated that a one year delay equates to roughly $100,000 of tax increment revenue. Second, the company is seeking to add two years to the option period for the north parcel, by offering to pay $69,000 on or before September 30, 2016. From a practical standpoint, it gives APi the flexibility to exercise the option for an extended period, while delaying that payment for a couple of