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CSI Redevelopment Agreement June 2, 2014 — Special Meeting Report Page 2 It should be noted that the original framework of the deal was crafted as a build -to- suit -to -lease project with Ryan acting as the developer /landlord and CSI acting as the tenant. In early April, CSI made a business decision to own the building — meaning it would acquire the land directly from the City and use Ryan as the general contractor. In the end, this project is better described as a sort of hybrid deal in which Ryan is functioning as the general contractor, but is participating financially like a landlord and committing resources in order to make the project work. The negotiations have been very intense and of as this writing the parties seemed to have reached agreement on the major elements. The following is a summary of the key provisions and related commentary on any changes from the last Council discussion on May 6, 2014. Council should note that the attached Contract for Private Redevelopment is in a redline format, meaning the final changes are being reviewed by CSI and Ryan. The major deal points in the document have been agreed to, but we did not have time to get a clean version into the packet. There are some exhibits that will need to be added to the document before it is signed, but these do not materially change the terms of the deal. Developerh Ryan Companies, US, Inc. Contractor Owner: Cardiovascular Systems, Inc. Development CSI is planning to build a 125,000 SF two - story, corporate headquarters Scope: building on approximately 10 acres of land referred to as Development (No Change) Blocks A and F. Under the terms of the agreement, the company is requesting that the minimum improvements be defined as a building of 116,000 SF which is what they identified in their initial RFP. Staff does not feel this discrepancy is a material issue, since the land use application identifies the larger building. Land Price: $500,000 in cash. (No Change) Closing: CSI would like to close as early as June 3rd, but in no case would the (No Change) closing occur later than August 15, 2014. Construction of CSI must complete the Minimum Improvements by no later than Minimum December 15, 2014. The company wants temporary occupancy of in Improvements: November 2014 and full occupancy by March 2015. The construction (No Change) deadline in the agreement should be more than adequate. I: \COUNCIL \REPORTS\2014 \Community Development \6 -2 -2014 special \CSI Project - Redevelopment Agreement (Staff Report- V4).doc