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Community Assets & <br /> Development Department <br /> <br /> MEMORANDUM <br /> <br /> <br />DATE: February 28, 2017 <br /> <br />TO: Economic Development Commission <br /> <br />FROM: Janice Gundlach, Asst. Director of Community Assets & Development/Planning Director <br /> <br />SUBJECT: Proposed Draft Term Sheet with TUV SUD America <br /> <br />City staff, Ryan Companies, and TUV SUD America are pleased to present the attached draft Term Sheet <br />for consideration by the Economic Development Commission. Over the course of a few months, City <br />staff, TUV SUD America, and Ryan Companies have been in discussion regarding a development proposal <br />for Block D in New Brighton Exchange. The attached Term Sheet intends to outline the general deal <br />parameters and obligations of a development proposal that consists of construction of a 36,500 SF <br />office/testing/certification (industrial flex) building, and associated surface parking, utility, and <br />landscaping improvements on an approximate four acre site known at Block D in New Brighton <br />Exchange. <br /> <br />Staff offers the following summary points: <br />• The City would sell TUV SUD America approximately four acres of land <br />• TUV SUD America would hire Ryan Companies to develop and construct the minimum <br />improvements <br />• Block D would be developed with a 36,500 SF building, which also provides for future expansion <br />space of up to 12,000 SF <br />• The City would sell TUV SUD America the land for $2.75/SF <br />• All land proceeds would be deposited into an escrow account to pay for extraordinary <br />environmental costs and building/site enhancements <br />• TUV SUD America would close on the land on or before June 30, 2017 <br />• The City would grant TUV SUD America a feasibility/due diligence period beginning on the <br />effective date of the Term Sheet and ending on June 15, 2017, including providing right-of-entry <br />and environmental testing rights <br />• Construction would begin on or before August 1, 2017 and be substantially complete on or <br />about April of 2018. <br />• TUV SUD America would pay all taxes and agree to a Prohibition on Tax Exemption through <br />termination of the TIF District <br /> <br />The draft term sheet has been reviewed by the City’s redevelopment attorney who has since returned <br />comments that are non-substantive in nature. Those comments will be forwarded to TUV SUD America <br />and Ryan Companies for review. Staff is requesting the EDC review the draft Term Sheet (attached) and <br />provide a recommendation to City Council. Following the EDC’s recommendation, the Term Sheet <br />