2017.05.23 CC Minutes - Laserfiche WebLink

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May 23, 2017 Page 7 of 9 Councilmember Jacobsen thanked Mr. Mueller for his partnership with the City. Councilmember Strub discussed the benefits of TUV SUD's new building for the community and the opportunity that would become available for a new business once they vacated their current space. Councilmember Burg thanked Ryan Companies and TUV SUD for providing a high-quality development on Block D within the New Brighton Exchange. Steve Dykstra, TUV SUD representative, thanked the Council and staff for their support. He stated he was excited to be building a new facility in New Brighton. He invited the Council to be a part oftheir groundbreaking ceremony. Mayor Johnson stated this was another historic moment for the Council as they would be voting to keep a high-quality business within the community. She indicated she was proud to be offering her support for this project. 5 Ayes, 0 Nays -Motion Carried Authorize the Mayor and City Manager to enter into a Contract for Private Redevelopment by and between the City ofNew Brighton and TUV SUD America, Inc. regarding development of a 37,000 SF office/testing/certification building on property known as Block D in the New Brighton Exchange redevelopment area Motion by Councilmember Jacobsen, seconded by Councilmember Bauman to Authorize the Mayor and City Manager to sign the provided Contract for Private Redevelopment by and between the City of New Brighton and TUV SUD America, Inc. (TUV). Assistant Director Community Assets and Development/Planning Director Gundlach stated since the Council authorized the Term Sheet on March 14, 2017, City staff, our attorney, TUV, and TUV's agents have been negotiating a contract for the sale of Block D in New Brighton Exchange, language of which is consistent with the terms outlined in the approved Term Sheet. He reported the following additional information has become known and impacts the development of Block D: • TUV has proposed a re -plat of the property that would create a boundary such that TUV would not acquire any land that was/is impacted by dump material. The change in property line is slight. The area formerly part of Block D that TUV will not acquire will be combined with an outlot. This change has zero impact on the terms approved as part of the Term Sheet. • TUV's plat results in a property acquisition of 4.19 acres or 182,477 SF. At a purchase price of $2.75/SF, this equates to $501,812 in land proceeds. • Per the Term Sheet, 100% of the land proceeds will be deposited into an Escrow Account to fund expenses outlined in Section 5.4 of the agreement. Beyond this amount, the City will have no further financial obligations to realize TUV's development plans. ■ The total building area has increased slightly from 36,500 SF to 37,000 SF. The breakdown of office and testing/certification is approximately 40/60. The plan identifies future expansion opportunities of 12,200 SF. No timetable was provided for construction of the expansion. • The timetable to initiate construction has been accelerated by one month to July 1, 2017. Assistant Director Community Assets and Development/Planning Director Gundlach explained beyond these items, all other terms have not been changed since adoption of the term sheet. This includes a closing scheduled for June 30, 2017, a market value of $100/SF, completion by the 3. Authorize the Mayor and City Manager to enter into a Contract for Ptivate Redevelopment by and bdv,= the City ofNew Brighton and TUV SUD America, Inc. regarding development of a 37,000 SF ofiicehesting/cettifi- cation building on property known as Block D in the New Brighton Exchange redevelopment area