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<br />Gundlach provided the EDC with updates regarding projects in New Brighton Exchange as follows: <br /> <br />Block D: TUV SUD America, Inc. <br />On May 23, 2017 the City Council approved the land use applications and authorized the Mayor and <br />City Manager to sign the Contract for Private Redevelopment By and Between the City of New Brighton <br />and TUV SUD America, Inc. (TUV). These approvals allow TUV to proceed with the development of <br />Block D in New Brighton Exchange. The final plat consists of 4.19 acres of land that would be sold to <br />TUV, where a 37,000 SF building would be constructed. The Site Plan illustrates a future 12,000 SF <br />expansion. The building is approximately 40% office and 60% testing and certification space. TUV <br />would own the land and building and Ryan Companies will act as the developer and contractor for the <br />project. TUV plans to break ground on Wednesday, July 12th. <br /> <br />Block G: APi Group, Inc. <br />City staff continues to work with APi staff on a Redevelopment Contract whereby APi purchases the 1.8 <br />acres immediately north of their Training Center building for future construction of a third APi building <br />of at least 30,000 SF. The condition of the Council (also recommended by the EDC) was that APi make <br />lost tax increment payments each year they don’t build. After City staff delivered an initial draft of the <br />contract in late March, APi has requested changes to the contract that removes their commitment to <br />build and has deleted language that restricts a future sale or transfer of the property. These changes are <br />substantial in that APi wouldn’t ever be contractually obligated to building a building and could sell the <br />property to anyone without City consent (and even make money on the land). APi does continue to <br />commit to make lost tax increments payments in year through the life of the TIF district. City staff, after <br />meeting with Council, directed APi these two issues were non-starters and the contract must result in <br />construction of at least a 30,000 SF building and APi would not be able to sell without City consent. <br />There were other minor contract revisions that will also need discussion if these two major issues can be <br />resolved. APi has signaled to staff they will accept the City’s position on these two issues and will <br />recirculate a revised agreement (which has not been received yet). Per the Council’s direction, APi has <br />been given June 14th as a hard deadline whereby if they cannot agree to the City’s terms on building and <br />sales/transfers, the City will move on to Pulte. Pulte continues to express interest in the site for the <br />construction of their urban row townhome. <br /> <br />Block E: Cardiovascular Systems, Inc. (CSI) <br />The City Manager received notice that CSI intends to exercise their right to extend their option on Block <br />E, consisting of 3.6 acres immediately north of Central Park Boulevard on the east side of New Brighton <br />Exchange. Per the existing contract, there are three option periods: 1) June 11, 2014 – May 31, 2017, 2) <br />June 1, 2017 – May 31, 2019, and 3) June 1, 2019 – May 31, 2021. Option period 1 was free to CSI. <br />Option periods 2 and 3 may be exercised only by paying $20,000/acre. CSI provided the City a check <br />for $72,000, securing future development rights on all 3.6 acres through May 31, 2019. If CSI exercises <br />the option in the future by buying land and building an addition to their building, the option payments <br />are credited towards the already agreed-upon price of $4.75/SF. <br /> <br />Comprehensive Plan Update <br /> <br />Gundlach stated the first phase of community engagement ended in late April and the City’s <br />Comprehensive Plan consultant (HKGi) assembled all comments received during the engagement <br />meetings at Freedom Park and Hanson Park, as well on comments submitted online through Social <br />Pinpoint. These comments will fuel upcoming plan revisions, which will be discussed at future <br />meetings. She reported the City Council discussed this information at their work session meeting on <br />June 6th. <br /> <br />Work Plan <br />