2022.04.12 WS Packet - Laserfiche WebLink

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STAFF Memorandum New Brighton Exchange (Block B) To: City Council From: Craig Schlichting, Director DCAD Meeting Date: 4-12-22 New Brighton Exchange Construction continues with the TUV SUD lab, but have you ever wondered what might happen on the vacant land that remains? APi The west side of Old Highway 8 is entirely developed with the exception of APi’s 3rd property. Staff anticipates that a site plan will be submitted for this property soon, which would allow for the creation of additional parking. This parking would provide overflow capacity for the training center, whose 3rd floor is being completed this year. APi purchased the 3rd property in 2017 and pays taxes as if it were fully developed. This allowed APi to retain development rights while providing the City tax increment to cover the original redevelopment costs. CSi In the fall of 2021 the City and CSi came to terms on an option that allows Cardiovascular Systems, Inc. the rights to purchase the land north of their existing site until May 31, 2025. For this option the City receives $20,000/acre for a total of 3.6 acres for each 2 year option period, totaling $144,000. Previous options and the 2 extended option payments can be used towards a future purchase to meet CSi development needs. This particular parcel was identified as parking for future growth of the company. Block B In 2020, with Lot B being the only remaining parcel on the market, Colliers informed the City that one of our main contacts in their organization (Eric Rapp) was leaving to take a position with Equity Transwestern (typically referred to as just “Transwestern”). Given Eric’s history with the site and his contacts within the industry, Colliers recommended the City switch its marketing agreement to Transwestern to allow Eric to continue his work on behalf of the City. Transwestern will be paid by the buyer depending on the buyer’s agreements with their broker and/or redeveloper, or by the City based on the amount of land sold and the selling price. The new agreement outlines a sliding-scale fee schedule based upon land purchase price. The City also has a preferred developer contract with Ryan Companies. Ryan Companies gets paid a developer fee and construction fee by users in New Brighton Exchange when those users use Ryan Companies. Because Ryan’s agreement with the City is non-binding, if the City were to sell and/or transfer land to a third party without Ryan Companies involvement, the City would be obligated to pay Ryan Companies a