EDC 11-20-2013 - Laserfiche WebLink

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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 years. Lastly, the company is offering to make an additional PILOT payment of$17,300 in 2014 in recognition that there have been project delays. Commissioner Zelm and Potter questioned if the land value in five years will be considered. Director Fernelius explained that the price of the land is established in the contract. Chairperson Zisla noted that there currently is not another interested party, and stated he feels it is important for the City and APi to come to an agreement. Commissioner Murlowski stated that he feels the City is offering APi a very good deal, commenting that the chances of APi going else ware are slim. Fernelius stated that he feels good about the City's proposal to APi. Chairperson Zisla commented that the mutual objective is to develop the land. Marketing Efforts Director Fernelius referenced a marketing report for the month of September from Colliers. Staff and officials from Colliers and Ryan held a monthly conference call on October 1st and not much new information was reported. Colliers is continuing to track prospects, however demand for new construction is still soft given the availability of existing office space. Commissioner Potter questioned the 15.4%vacancy rate, asking what a normal/average rate would be. Commissioner Zelm stated about 7%would be considered average during a healthy economy. Update on Ehlers financial analysis Fernelius stated that we have talked with Ryan for the possibility for flexibility in looking at different development options for the east side. For example, if the City wanted to attract activity sooner it might want to consider subdividing Block F (two 40,000 SF buildings) rather than waiting for a larger user. There are numerous scenarios, each with a different impact financially and policy-wise. Fernelius explained that a dashboard analysis that shows the minimum level of development needed to support debt service payments and then what happens as different assumptions are adjusted on the east side will be forthcoming. Fernelius reported that Ehlers will be providing an update to the City Council at their October 22 worksession. Chairperson Zisla questioned what the constraints are in moving density? Fernelius responded that they include; market demand, remediation requirements, infrastructure and parking issues. Commissioner Neumann-Walker questioned if there has been any discussion regarding signage. Fernelius stated that Ryan Co has requested a construction trailer. The commissioners expressed varied opinions on a trailer. Fernelius stated that he will check into the legislative requirements associate with parking a trailer in the New Brighton Exchange area. Councilmember Jacobsen suggested sending the October 22 worksession materials to the EDC members. Fernelius agreed to do so. Other Items Chairperson Zisla suggested the commission plan to meet in November, noting that he will be in contact with Director Fernelius to determine necessity. Adjourn Motion by Commissioner Knight, seconded by Commissioner Zelm to adjourn the meeting. 7 Ayes, 0 Nays, Motion carried Meeting adjourned at 8:38 am