2017.02.01 EDC - Laserfiche WebLink

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Commissioner Benke requested further information on the tax increment fund. Gundlach discussed the TIF financing for NBE with the Commission. She reported at the end of 2035, the City would have $11 million from the development. Chair Zisla questioned how the Pulte development was integrating into the community. Gundlach believed the residents in this development were quite pleased and stated the only questions she has had from Pulte homeowners was when the park would develop. B. Block D Update Gundlach reported that Ryan Companies has been working with TUV SUD regarding development interest in Block D in New Brighton Exchange. TUV SUD is an existing New Brighton business, located just north of New Brighton Exchange at 1775 Old Highway 8 NW. TUV SUD is a German- based company with 18 locations in the US and Canada where they perform electromagnetic testing and certification of various products. TUV SUD would employ 75-100 employees with average salaries in the $80,000 range. The company is considering building a new building in New Brighton Exchange, whereby their existing New Brighton location, and two other locations in the state, would be consolidated into a single site. This use is considered industrial flex with a combination of office, lab/testing, and warehouse space. Conceptually, the desired building would be approximately 30,000 SF with 15,000 SF of expansion space. Gundlach explained this lead originally came to City staff via a call from a broker working for TUV SUD. Staff directed that broker to Ryan Companies. Staff has met with TUV SUD representatives and took a tour of their New Brighton location in early December. Ryan Companies has met with TUV SUV several times. Currently, Ryan Companies and TUV SUD are determining building needs and overall costs to see if the company can afford their needs. TUV SUD wishes to own the building. Staff has also directed TUV SUD to DEED to determine if other funding sources could help with overall financing. Staff has communicated to TUV SUD the City’s desire to see a project on Block D in 2017 and available assistance with regard to environmental hurdles. Staff has also communicated to TUV SUD that additional assistance may be available depending on the various obstacles to development and the overall project quality. Gundlach stated at this time, staff is waiting for Ryan Companies and TUV SUD to pull together building cost estimates to see if the project can move forward. TUV SUD wants to start construction in 2017, requiring a decision to be made soon. If there is a project to move forward, the EDC will be asked to provide a recommendation to Council on project terms. Chair Zisla questioned if there was an environmental issue. Gundlach commented there were no environmental issues within the soil on Block D. However, the proximity to the dump and vapor migration was a concern. She stated another complicated factor was that this company was German based and did not own any real estate in the United States. Further discussion ensued regarding current land values in the north metro. Councilmember Bauman asked if TUV SUD had submitted paperwork with DEED. Gundlach stated only preliminary conversations have been held. She planned to follow up with DEED on this matter further. Commissioner Carter questioned if the Mayor should be sending a letter to this company. Gundlach indicated this has been discussed with Ryan. She anticipated she would have more to report to the EDC on this topic next month.