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CSI Redevelopment Agreement June 2, 2014 — Special Meeting Report Page 5 larger financial picture. As you can see from the attached analysis, the first phase of the development generates about $6.0 million of tax increment financing (TIF), while the expansion project (assuming 50,000 SF) produces another $2.1 million. When combined with the proposed API and Pulte projects, the value of new development creates about $18.5 million of TIF over the life of district. In short, these projects help close the gap for additional development value and taxes on the remaining blocks. Approximately $10.8 million of additional value on Blocks B and D is needed to meet the minimum development threshold and cover future NBE debt service. In terms of employment, CSI currently employees 191 people in Minnesota. Most of these workers are on New Brighton, although the company also leases a small amount of office space in Roseville. Upon completion of the facility, the company plans to increase employment by another 140 positions for a total of 330 employees. The building is being designed to accommodate up to 500 employees with associated parking. The average annual salary for the company is currently $75,000. Staff has arranged for the City's redevelopment and environmental counsel to be present in the event there are questions. We would like to thank Council and the EDC for their patience and support through this process — and extend our appreciation to the entire City team (including, staff, attorneys and advisors), along with CSI (their team) and Ryan Companies. While the negotiations were difficult at times, staff believes the project is a good deal for the City, CSI and Ryan �Oe� %� Grant Fernelius Community Development Director Attachments: o Resolution o Ehlers analysis o Contract for Private Redevelopment L• \COUNCIL \REPORTS\2014 \Community Development \6 -2 -2014 special \CSI Project - Redevelopment Agreement (Staff Report- V4).doc