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January 14, 2014 Page 5 of 6 Council Business 1. Consideration of a Resolution authorizing a Contract for Private Redevelopment by and between the City of New Brighton and API Group Headquarters, LLC for an office expansion project in New Brighton Exchange. Report No. 14 -021. Resolution No. 14-012. City Manager Lotter indicated City Planner Gundlach would be presenting this item to the Council. City Planner Gundlach reported staffhas been in discussions with APi Group since mid 2012 on an office expansion project in New Brighton Exchange. The talks initially focused on completion of a 9,000 square foot building on their existing campus, but shifted toward a much larger project on the 4 acre site referred to as Block G. APi met with the Council in December 2012 and discussed their plans to build a 75,000 square feet of office space in two different buildings. 'Ihe parties formalized the basic business terms this past spring and a term sheet was approved by the City Council on June 11, 2013. Over the course of the past six months, the parties have been working to finalize the Contract for Private Redevelopment, which spells out all of the development details. One of the reasons for the delay is that AN Group has been evaluating whether to acquire the entire site and construct both phases at once. After some deliberation, the company has decided to go back to the original plan and develop the site in two phases. As a result of the delay, some of the dates from the initial term sheet need to be pushed out She reviewed the changes within the business term sheet in detail with the Council and reported overall, the project was consistent financially with the original terns. The second building (45,000 SF) is expected to generate approximately $103,000 per year in tax increment; while the third building (30,000 SF) will produce $69,000 per year. Staffrecommended the Council approve a Resolution that would authorize a Contract for Private Redevelopment between the City and APi Group for an office expansion project in New Brighton Exchange. Shane Shipman, APi Group, appreciated the work completed by staff with regard to the office expansion and for their understanding through the delays. He indicated APi was looking forward to expanding in the City of New Brighton. Councilmember Bauman thanked APi for their investment in the community. She looked forward to seeing the proposed expansion completed. Councilmember Jacobsen agreed stating AN had a beautiful building and thanked APi for opting to stay in the City ofNew Brighton. Councilmember Burg questioned how many additional employees would be added to APi after the expansion was completed. Mr. Shipman estimated 50 new full time employees would be located in the second building. Councilmember Burg thanked APi for their commitment and fundraising efforts for the Cystic Fibrosis Foundation. Motion by Councilmember Jacobsen, seconded by Councilmember Bauman to approve a Resolution authorizing a Contract for Private Redevelopment by and between the City of New Brighton and API Group Headquarters, LLC for an office expansion project in New Brighton Exchange. 5 Ayes, 0 Nays - Motion Carried Commission Liaison Reports, Announcements and Updates Dean Lotter City Manager Lotter reported he would be traveling with the Mayor to Washington DC to meet with Senator Franken and Senator Klobuchar to discuss negotiations with the Army. He indicated staff was working to organize the Council /staff retreat for March 22nd. The event would be held at the Public Safety Facility. He indicated the Town Hall meeting would be held on April 12th at the Community Center. He reported he would be out of the state January 23'd through January 30`h and Public Safety Director Jacobson would be standing in as the Acting City Manager. Council Business 1. Consideration of a Resolution authorizing a Contract for Private Redevelopment by and between the City of New Brighton and API Group Headquarters, LLC for an office expansion project in New Brighton Exchange. Report No. 14 -021. Resolution No. 14 -012 Commission Liaison Reports, Announcements and Updates