CCP 08-13-2014 - Laserfiche WebLink

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MINUTES New Brighton Economic Development Commission Approved Regular Meeting — May 21, 2014 7:30 a.m. Members/Liaisons Present: Chair Paul Zisla, Commissioners, D.L. Beach, Kevin Peck, Al Potter, Mike Murlowski, Bruce Knight, Linda Zelm, Bob Benke and Councilmember Paul Jacobsen. Members/Liaisons Absent: Commissioner Monica Garcia -Perez Staff Present: Grant Fernelius- Community Development Director Also Present: Call to Order Chairperson Zisla called the meeting to order at 7:30 a.m. Approval of Minutes Motion by Commissioner Beach, seconded by Commissioner Potter to approve the minutes from the April 16, 2014 meeting. Approved 7 -0 Report from Council Liaison Councilmember Paul Jacobsen stated the New Brighton Exchange has been a major topic of discussion for the Council with the AN and CSI site plans. New Brighton Exchange Cardiovascular Systems, Inc. Director Fernelius reported staff has been working nonstop on this project. He provided additional background information regarding this matter to the EDC. He reported there has been an education process in getting CSI up to speed on how the project, because the company will be purchasing the site and acting as the land owner. With that come some different responsibilities than when they planned to be a tenant. There has been frustration on CSI's part on the pace of the closing. Further discussion ensued regarding the negotiations taking place between the two parties. Liability and indemnification issues were reviewed. Staff believes CSI's main concern at this time was the "what ifs." He indicated there were some geotechnical issues that would need to be addressed. He noted a vapor barrier would have to be installed on the property. Staff anticipated that the site would have to be monitored for methane by the MPCA for a period of time and then not be needed. It was noted that DEED was offering additional assistance to cover the geotechnical expenses. He reported the City has agreed to sell the property for $500,000, which is less than what the property is worth. He discussed the utilities the City would be responsible for relocating. Staff explained that Ryan was quite motivated to keep the project moving forward. The offer on the table at this time, with funds from the City, DEED and Ryan would provide CSI approximately $1.5 million in assistance. Staff was pleased that other parties were willing to share in the risk and participate financially in this project. These funds would ensure that the project remained in the City of New Brighton. He commented staff would continue to work through the final details with CSI. The location of option land for CSI was reviewed. The City was willing to offer up to an additional 3.6 acres, if CSI developed an additional 75,000 square feet. The City's main concern at this time was to ensure that the project is completed and was pleased that CSI has agreed to escrow 50% of the funds needed for the project. These funds would be placed in escrow at closing of the land sale. The City hoped to have an agreement finalized in the next few weeks.