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July 11, 2017 Page 5 of 6 <br />now (after an inspection period), with the first lost tax increment payment occurring on May 1, <br />2018. There is no specified time table for development as long as APi continues to make lost tax <br />increment payments through the life of the TIF district (December 31, 2035). In addition to being <br />contractually obligated to build at least a 30,000 SF building, APi would not be permitted to <br />transfer or sell the property without City consent or to a tax-exempt user. <br />Assistant Community Assets and Development/Planning Director Gundlach reported in addition to the <br />land sale proceeds, APi is contractually obligat ed to pay park dedication fees in the amount of <br />$24,910.20 at the time of closing. APi and the City has also agreed that perimeter landscaping, <br />sidewalks, pedestrian ramps, and corner monuments must be constructed now, rather than wait for <br />development. APi has agreed to transfer their erosion control sureties from the previous two <br />buildings, in the amount of $40,000, to the City for installation of these improvements. If the <br />improvements do not rise to $40,000, any remaining funds will be reimbursed to APi. Staff <br />anticipates these improvements can be installed at or below $40,000 and the City will contract for <br />installation of the improvements. <br />Assistant Community Assets and Development/Planning Director Gundlach explained a closing date of on <br />or before December 1, 2017 is included in the contract. This allows APi until November 1, 2017 to <br />conduct their due diligence and secure any environmental liability assurances from the MPCA, <br />should they be eligible. The closing date would occur no later than 30 days fol lowing expiration of <br />the inspection period. Staff provided further comment on the major contract terms and <br />recommended the City Council authorize execution of the contract in its current form. <br />Councilmember Bauman thanked Assistant Community Assets and Development/Planning Director <br />Gundlach for all of her work on this contract. She appreciated the investment APi has made in the <br />community and thanked for them for working with staff on the proposed contract. <br />Mayor Johnson agreed APi was a great community partner. She understood it wasn’t easy to get to this point, <br />but she was very pleased that APi and the City were able to reach an agreement. <br />Don Randle, APi Group, thanked the City for working with APi on this project and for their efforts to reach <br />common ground. He explained APi would continue to grow and invest in this site. <br />Councilmember Jacobsen believed APi was a very solid company and he looked forward to seeing this site <br />developed at some point in the future. <br />Councilmember Burg thanked Mr. Randle for working with the City. She questioned how the City would <br />use the lost TIF payments. Assistant Community Assets and Development/Planning Director Gundlach <br />explained the lost increment would be used to help pay down outside bond debt and internal loans. <br /> <br />5 Ayes, 0 Nays-Motion Carried <br /> <br />Commission Liaison Reports, Announcements and Updates <br /> <br />Dean Lotter <br />City Manager Lotter commented on the popularity of early voting and anticipated this would <br />have to be done at another location in the future. He explained staff was beginning to address <br />this matter and was working to locate anther site that could be used for early voting. He noted <br />food shelf negotiations continue, along with work on the license bureau plans. He reported the <br />Parks and Recreation position closed last week and the City received a large number of strong <br />candidates. Staff would be reviewing the candidates over the coming weeks with hopes of <br />having a Director in place sometime in late September. He provided further comment on a <br />speaking engagement he attended and spoke at regarding surface and ground water. He <br />reported construction continues on the water treatment plant and noted the City was waiting for <br />its concrete tip up panels. <br /> <br />Gina Bauman <br />Councilmember Bauman reported the EDC would be meeting on Wednesday, July 12th at 7:30 <br />a.m. She explained the Cable Commission was continuing to meet to discuss their long-term <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br />Commission Liaison <br />Reports, <br />Announcements and <br />Updates <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br />