2017.06.07 EDC - Laserfiche WebLink

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Community Assets & Development Department MEMORANDUM DATE: June 1, 2017 TO: Economic Development Commission FROM: Janice Gundlach, Asst. Director of Community Assets & Development/Planning Director SUBJECT: New Brighton Exchange Updates Be advised of the following updates regarding projects in New Brighton Exchange: Block D: TUV SUD America, Inc. On May 23, 2017 the City Council approved the land use applications and authorized the Mayor and City Manager to sign the Contract for Private Redevelopment By and Between the City of New Brighton and TUV SUD America, Inc. (TUV). These approvals allow TUV to proceed with the development of Block D in New Brighton Exchange. The final plat consists of 4.19 acres of land that would be sold to TUV, where a 37,000 SF building would be constructed. The Site Plan illustrates a future 12,000 SF expansion. The building is approximately 40% office and 60% testing and certification space. TUV would own the land and building and Ryan Companies will act as the developer and contractor for the project. TUV plans to break ground in early July. The Site/Landscape Plan is attached. Block G: APi Group, Inc. City staff continues to work with APi staff on a Redevelopment Contract whereby APi purchases the 1.8 acres immediately north of their Training Center building for future construction of a third APi building of at least 30,000 SF. The condition of the Council (also recommended by the EDC) was that APi make lost tax increment payments each year they don’t build. After City staff delivered an initial draft of the contract in late March, APi has requested changes to the contract that removes their commitment to build and has deleted language that restricts a future sale or transfer of the property. These changes are substantial in that APi wouldn’t ever be contractually obligated to building a building and could sell the property to anyone without City consent (and even make money on the land). APi does continue to commit to make lost tax increments payments in year through the life of the TIF district. City staff, after meeting with Council, directed APi these two issues were non-starters and the contract must result in construction of at least a 30,000 SF building and APi would not be able to sell without City consent. There were other minor contract revisions that will also need discussion if these two major issues can be resolved. APi has signaled to staff they will accept the City’s position on these two issues and will recirculate a revised agreement (which has not been received yet). Per the Council’s direction, APi has been given June 14th as a hard deadline whereby if they cannot agree to the City’s terms on building and sales/transfers, the City will move on to Pulte. Pulte continues to express interest in the site for the construction of their urban row townhome.