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Council Business l. Consideration of a Redevelopment Agreement for CSI*. Report No. 14-136. Cþ Manager I¡tter explained Community Development Director Femelius would be presenting this item to Council. Communif Development Director Femelius reported in January ofthis year the City was approached by Ryan Companies and Colliers Intemational about a new corporate headquarten project for New Brighton- based Cardiovascular Systems, Inc. After initial discussions, staffleamed that CSI had nanowed its national search trc a handful of sites in Minnesota including New Brighton Exchange 0'IBE)' This search proces is relevant because many of the initial deal points, eqpecially what CSI was willing pay for land, was a fi¡nction of competing offers made by other communities. In February, the Council provided øitical input on the negotiæions with regæd to site locatior¡ land pricing and support for assisting with certain environmental remediation and public improvement costs. On this last poinl the City is continuing with a sbatery to write down land prices to assist with certain extaordinary costs - a model that has been used on previous deals including Trarsoma and Pulte Homes. By early Marcll CSI made the decision to selectNBE as their new corporate home and since that time the parties have been working out the details ofthe project thÍ:ugh a Contact for hivate Redevelopment. The negotiation process has been challengng, due to a very fast tack construction schedule and the fact that three parties (the Clty, Ryan and CS| have been involved in the contact review It should be noted that the original fiamework ofthe 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 abusiness decisionto ownthebuilding-meaningitwould acquiretheland dirrectlyfromtheCityand use Ryan as the general conûactor. hr the en{ this project is better described as a sort ofhybrid deal in which Ryan is f,nctioning as a general conûactor, but is participating financially like a landlord and mmmitting resources in order to make the project work The negotiations have been very intense and the parties seemed to have reached agreement on the major elements. Staffprovided the Council with a summary of the key provisions and related commentary on the changes fi,om the last Courcil meeting. The business terms werc discussed at lengtlr- He noted the major deal points in the document have been agreed to by all parties. He noted any substantive changes (legal, economic, or material) would be brought back to the City Council for consideration. The financial and tax impacts of tlre project were reviewed in detail with the Cowrcil and staff recommended the Council approve adoption of a Resolution authorizing the Mayor and Cþ Manager to execute the RedevelopmurtAgreement with Ryan Companies and CSI for an office redevelopmentproject inNBE. Councilmember Bauman thanked stafffor the thorougþ presentation, She asked ifthe Clty has seen the agreement between Ryan and CSI. Community Development Director Femelius commented the Ctty ha. not reviewed this agreement. Councilmember Bauman questioned howthe City would be impacted ifthe terms ofthe agreement betu¡een Ryan and CSI were not followed through. City Attrrmey t^andsman oçlained the development agreement with the City does require qpecific improvements to be completed by a date certain. He reported the agreement between Ryan and CSI would address how the wotk was completed. If Ryan did not meet these obligations, a default or brrach of contact would be tiggered within the City's development agreemurt He discussed tlre investnent interest that CSI had in this project to and commented this would ensure the project was completed in a timely manner according to the ageements in place, Councilmember Bauman roquested further information on how Phase II would be developed. Casey Haakenson, Ryan Companies, stated Ryan would be interested in consfucting Phase II ofthe CSI projecq however, the timing ofthis project was uncertain He e>çlained that when CSI was ready for this expansion (Phase Q ttris project would have to come back before the Council for PIID approval. Councilmember Bwg commented the Council addressed the concems ofthe Redevelopment Agreement in a worksession meeting. She appreciated the efforts of staffand all parties involved. Councilmember Jacobsenthanked eachofthe partrers for coming together and forworking with Cþ statrto make this redevelopment arulitY. Councilmember Bauman was pleased with the TIF implications tlnt were agreed upon within this June2,20l4 Page2of4 Council Business l. Consideration ofa Redevelopment Agreement for CSI*. ReportNo. l4-136.