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<br />• The timing of development for Block G was moved from 2017 to 2018
<br />• An assumed office value of $100/SF is unchanged for office potential
<br />• Unfinished Pulte lots assumed $405,000 per single family home and $225,000 per townhome
<br />
<br />Highlights of the updated dashboard include:
<br />• For Pay 2017, CSI’s market value increased $1,265,200 to $14,000,000, resulting in an additional $575,989 in projected tax increment.
<br />• For Pay 2017, CSI’s market value increased $912,800 to $10,040,700, resulting in an additional
<br />$340,418 in projected tax increment.
<br />• For Pay 2017, APi’s market value on their headquarters building increased $243,000 to $7,743,000, resulting in an additional $72, 459 in projected tax increment.
<br />• For Pay 2017, The View Apartment’s market value increased $6,360,000 to $20,000,000,
<br />resulting in an additional $1,766,950 in projected tax increment.
<br />• For Pay 2017, Pulte’s market values are slightly better than projections at a total of $26,470,000,
<br />resulting in an additional $526,417 in projected tax increment.
<br />• Estimating ending cash in Fund 460 has increased $3,692,394 to $11,720,799.
<br />• The interfund loan assumes repayment of principal at 4% interest. Based on this interest rate (the highest allowable by State Statute), the full principal balance cannot be repaid even if the
<br />projected development scenarios on Blocks B, D, E, and G are realized. This isn’t surprising and
<br />has always been anticipated.
<br />• The cash balance difference in Fund 460 at the end of year 2035 (when the districts expire) between development that has been realized and projected is $4,713,791 and $11,720,799
<br />respectively.
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<br />Gundlach explained this information is for review and discussion purposes only. Ehler’s staff will be available to help address questions or concerns of the Commission.
<br />Ms. Vogt commented on how market values have been increasing in recent years, especially apartment
<br />values. She discussed how this would positively impact the City through an increased tax base.
<br />
<br />APi Group, LLC Option Extension Discussion
<br />Gundlach stated, as has been communicated to the Commission previously, APi has an option to
<br />construct a third building of a minimum square footage of 30,000 SF, on the approximately two acre
<br />parcel immediately north of their training center. The option term, as outlined in their Contract for Private Redevelopment, runs thru December 31, 2016. Staff reached out to APi a few months back to remind them of the option deadline and to initiate discussions on whether or not they intend to move
<br />forward.
<br />
<br />Gundlach explained Staff met with APi representatives last week, where APi disclosed they are not yet ready to build a third building and would like to request a three year extension on their option. After discussing internally, staff felt this was an issue the EDC should discuss and then forward a
<br />recommendation to the City Council. Staff suggests there are three main factors in evaluating whether
<br />to extend APi’s option, those being: 1) APi’s already huge investment into New Brighton Exchange, 2)
<br />the financial impacts of waiting three years, and 3) other development interests. Gundlach indicated it is important to remember that APi has been a development partner of the City
<br />since 2007, when they built their headquarters building. They made future commitments to build a
<br />second building and followed through with construction of the training center in 2015. As a company,
<br />APi has brought 160 permanent jobs to the City. Between the two buildings and helipad, APi has created
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