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CSI Redevelopment Agreement June 2, 2014 — Special Meeting Report Page 4 would expand by 75,000 SF. The parties had previously agreed on three option periods and payment of certain fees after (2017) to continue the option rights through the December 2020. There was a significant amount of back and forth discussion on the option and concessions by both parties. CSI eventually agreed to language that requires the company to expand by 50,000 SF to purchase 2 acres and 75,000 SF to buy up to a maximum of 3.6 acres. The option fee language (i.e. $20,000 per acre) and land price ($4.75 PSF) remain unchanged, but the City conceded to 5 additional months (or until May 2021) for the last option period and 24 months to complete the minimum improvements. Other Provisions: A key sticking point to final negotiations concerned demands by CSI for certain warranties, representations, indemnifications and refusing to buy the property on an "as -is, where -as" basis. The City did agree to a few minor additions to the list of representations. However, after a great deal of discussion and several face -to face meetings, CSI eventually accepted the City's standard environmental and conveyance language. State Assistance: CSI is seeking $750,000 of MIF loan assistance. The funds will be used for new equipment ($500,000) and site work ($250,000). The details of the MIF loan still need to be worked out. The loan documents will be provided in the next month or so. The good news is that DEED has said it will provide a conditional commitment letter prior to closing. However, the City is not obligated to make up any lost funding. In addition to MIF, CSI is also seeking $2.0 million of assistance through the Job Creation Fund (JCF). Other than a resolution of support (also on the agenda), the City will not play any role in that funding. Financial Impacts The CSI project is anticipated to have an overall cost of $30.9 million. Of this amount, about $18.250 million will spent on construction and $6.5 million on equipment and machinery. The balance of costs relate to land acquisition, environmental remediation, site /public improvements. The company is investing a substantial amount of money into the project (about $28.15 million), with the State of Minnesota ($2.5 million) and the City is contributing toward the project in the form of a land write down to assist with environmental remediation and public improvements. Ehlers updated the New Brighton Exchange dashboard to show how the CSI deal fits into the I: \COUNCIL \REPORTS\2014 \Community Development \6 -2 -2014 special \CSI Project - Redevelopment Agreement (Staff Report- V4).doc