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Community Assets & <br /> Development Department <br /> <br /> MEMORANDUM <br /> <br /> <br />DATE: December 29, 2016 <br /> <br />TO: Economic Development Commission <br /> <br />FROM: Janice Gundlach, Asst. Director of Community Assets & Development/Planning Director <br /> <br />SUBJECT: Item IV_B, Block D Update <br /> <br />Ryan Companies has been working with TUV SUD regarding development interest in Block D in New <br />Brighton Exchange. TUV SUD is an existing New Brighton business, located just north of New Brighton <br />Exchange at 1775 Old Highway 8 NW. TUV SUD is a German-based company with 18 locations in the US <br />and Canada where they perform electromagnetic testing and certification of various products. TUV SUD <br />would employ 75-100 employees with average salaries in the $80,000 range. The company is <br />considering building a new building in New Brighton Exchange, whereby their existing New Brighton <br />location, and two other locations in the state, would be consolidated into a single site. This use is <br />considered industrial flex with a combination of office, lab/testing, and warehouse space. Conceptually, <br />the desired building would be approximately 30,000 SF with 15,000 SF of expansion space (see attached <br />Site Plan). <br /> <br />This lead originally came to City staff via a call from a broker working for TUV SUD. Staff directed that <br />broker to Ryan Companies. Staff has met with TUV SUD representatives and took a tour of their New <br />Brighton location in early December. Ryan Companies has met with TUV SUV several times. Currently, <br />Ryan Companies and TUV SUD are determining building needs and overall costs to see if the company <br />can afford their needs. TUV SUD wishes to own the building. Staff has also directed TUV SUD to DEED <br />to determine if other funding sources could help with overall financing. Staff has communicated to TUV <br />SUD the City’s desire to see a project on Block D in 2017 and available assistance with regard to <br />environmental hurdles. Staff has also communicated to TUV SUD that additional assistance may be <br />available depending on the various obstacles to development and the overall project quality. <br /> <br />At this time, staff is waiting for Ryan Companies and TUV SUD to pull together building cost estimates to <br />see if the project can move forward. TUV SUD wants to start construction in 2017, requiring a decision <br />to be made soon. If there is a project to move forward, the EDC will be asked to provide a <br />recommendation to Council on project terms. <br /> <br />Attachment <br /> Conceptual Site Plan <br /> <br /> <br />