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IJCOf Report Number 14 -136 N�Ew Agenda Section VIII -1 R Council Meeting Date June 2, 2014 the city that works for you REQUEST FOR COUNCIL CONSIDERATION ITEM DESCRIPTION: A RESOLUTION AUTHORIZING EXECUTION AND DELIVERY OF A CONTRACT FOR PRIVATE REDEVELOPMENT BETWEEN THE CITY, CARDIOVASCULAR SYSTEMS, INC. AND RYAN COMPANIES US, INC. DEPARTMENT HEAD'S APPROVAL: Grant Fernelius, Community Development Director CITY MANAGER'S APPROVAL: No comments to supplement this report Comments attached Recommendation: Staff recommends th/the City Council approve the attached resolution authorizing a Contract for Private Redevelopment by and between the City of New Brighten and Cardiovascular Systems, Inc. and Ryan Companies US, Inc. for an office project in New Brighton Exchange. Legislative History: See report for project history. Financial Impact: See report for additional information on the financial impact of this proposal. Explanation: As you know, in January of this year the City was approached by Ryan Companies and Colliers International (who are working as the preferred developer and land broker, respectively, in New Brighton Exchange) about a new corporate headquarters project for New Brighton -based Cardiovascular Systems, Inc. After initial discussions, staff learned that CSI had narrowed its national search to a handful of sites in Minnesota, including New Brighton Exchange. This search process is relevant because many of the initial deal points, especially what CSI was willing to pay for land, was a function of competing offers made by other communities. In February, the City Council provided critical input on the negotiations with regard to site location (i.e. combining development Blocks A and F), land pricing and support for assisting with certain environmental remediation and public improvement costs. On this last point, the City is continuing with a strategy to write down land prices (as necessary) to assist with certain extraordinary costs — a model that has been used on previous deals including Transoma and Pulte Homes. By early March, CSI made the decision to select New Brighton Exchange as their new corporate home and since that time the parties have been working out the details of the project through a Contract for Private Redevelopment. The negotiation process has been challenging, due to a very fast track construction schedule and the fact that three parties (the City, Ryan and CSI) have been involved in the contract review. I: \COUNCIL \REPORTS\2014 \Community Development \6 -2 -2014 special \CSI Project - Redevelopment Agreement (Staff Report- V2).doc