EDC Packet 02-19-2014 - Laserfiche WebLink

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MINUTES New Brighton Economic Development Commission Not Approved Regular Meeting—November 20,2013 7:30 a.m. Members/Liaisons Present: Chair Paul Zisla, Commissioners, Linda Zelm, D.L. Beach,Al Potter, Bruce Knight Vivian Neumann-Walker, Kevin Peck(arrived 7:35) and Councilmember Paul Jacobsen Members/Liaisons Absent: Mike Murlowski Staff Present: Grant Fernelius-Community Development Director, Katie Bruno-Office Assistant. Also Present: Call to Order Chairperson Zisla 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 October 16, 2013 meeting. Approved 6-0 Report from Council Liaison Councilmember Jacobsen reported that Brian Strub was recently elected and would begin his term January 1, 2014. New Brighton Exchange Pulte Homes Director Fernelius reported that Pulte Homes has not received MPCA approval. It was learned that the company is working with two different administrative units within the MPCA (Brownfield Petroleum and Voluntary Investigations and Cleanup), each of which need to approve the clean-up plan.' Pulte received approval of an amendment to the redevelopment agreement, extending the due diligence period for another 60 days, and are still hoping for a December 31, 2013 closing. Pulte has indicated that it would build slab-on-grade homes where needed and active venting systems for the affected homes, with the intention of having models homes ready for the Spring Preview. Commissioner Zelm questioned if this could affect financing. Director Fernelius responded that while mortgagees may have a difficult time securing a mortgage; Pulte provides their own financing. API Group Expansion Director Fernelius reported that the redevelopment agreement with APi is continuing to be refined. APi agreed to pay an additional $70,000 for additional time. The redevelopment agreement is anticipated to go before the City Council in the near future. Update on Alternative Financial Modeling Fernelius stated that over the past couple of years there have been a couple of financial analysis completed; looking at various development scenarios. The objective is to determine the need to satisfy the debt. It was reported that the need is approximately $32 million of tax increment. To achieve $32M of total tax increment, the City needs develop roughly $109,900,000 of taxable market value upon full- build out. To achieve $109,900,000 of taxable market value, the City will rely on the development already in place ($28M); the development planned for APi's expansion and Pulte Homes ($43M); and at least $38M of additional development on the east side.