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I I I Council Meeting Minutes July 12, 1994 Page 5 Council Business. continued Redevelopment of TIF #21 (Brost Property) had been expected to occur prior to the redevelopment of this site, but this has not been the case and the development agreement reflects that change of circumstances. IEG commits to build a 40,000 sq. ft. building at 5th St. SW and Old Highway 8. They also have constructed a 90,000 sq. ft. building on Lakeview Drive across the street from the new U.S. West building. Improvement of this project requires the City to acquire the three properties directly south of 5th St. SW fronting Old Highway 8. One of these properties has already been acquired by the City. Mr. Casserly explained that the City agrees to deliver those three parcels to IEG and then construction of a 40,000 sq. ft. building would begin. The agreement requires the building to have a minimum valuation of $30 per sq. ft; and provides protection to the City if construction does not take place in a timely basis. This agreement was designed to assist in the development of the south district (Brost estate), but that project was unable to go forward. However, the agreement provides that if the project did go forward, the City would be able to use surplus revenues generated from this north district. Samuelson asked the status of those three properties. Locke explained that these property owners have been in contact with the City for quite some time and have been aware of the City's overall redevelopment plan for the area. Williams asked what is the next step in the property acquisition process. Locke confirmed that negotiations are underway in regards to the appraisal process and relocation assistance. The City will work with the property owners to arrange an appropriate relocation schedule. The property owners in the audience did not ask questions. Motion by Williams, seconded by Larson, to WAIVE THE READING AND APPROVE THE RESOLUTION AUTHORIZING EXECUTION AND DELIVERY OF A CONTRACT FOR PRIVATE REDEVELOPMENT BY AND BETWEEN THE CITY OF NEW BRIGHTON AND THE INDUSTRIAL EQUITIES GROUP. 4 Ayes - 0 Nayes, Motion Carried. Locke presented for consideration the development agreement with Medical Devices. Staff has been working with Medical Devices to develop an agreement to provide for this expanding New Brighton business to remain in the community. Medical Devices proposes to build a 30,000 sq. ft. facility on the phase 3 lot in the Rush Lake Business Park. The development agreement terms include: building would have a minimum estimated market value of $1,238,880 as of January 1996; building completion by December 1995; the City would provide $170,000 in the form of cash at project completion and a note calling for 13 semi-annual payments of $5,000 each; and the assistance for soil corrections and demolition will be reduced to $80,000 from $85,000 and will be provided as expenses are incurred rather than after the project is completed. Council Business IEG Development Agreement Report 94-168 Resolution 94-087 Medical Devices Development Agreement Report 94-169 Resolution 94-088