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Of <br />N~' W <br />~~~~ <br />ttie city that woks fnr you <br />Re art Number: <br />A enda Section: • <br />Re ort Date • <br />Council Meetin Date 4/1Q/07 <br />REQUEST FOR COUNCIL CONSIDERATION <br />ITEM DESCRIPTION: Consideration of Third Amendment to Redevelopment Agreement with <br />Dalstar 5th Avenue, LLC <br />DEPARTMENT HEAD'S APPROVAL: Grant Fernelius, Director of Community Development <br />CITY MANAGER'S APPROVAL: <br />No comments to suunlement this report =f~Y Comments attached <br />Recommendation: <br />Approve the attached Third Amendment to the contract between the City and Dalstar New <br />Brighton, LLC and authorize its execution. <br />Legislative History: <br />November 3, 2005 City executes Second Amendment. <br />August 5, 2003 City executes First Amendment. <br />August 22, 2000 City executes contract with Dalstar New Brighton for the construction of <br />corporate headquarters and distribution facility. <br />Financial Impact: <br />Expansion will enhance the tax base and provide opportunities for increased employment in New <br />Brighton. <br />Explanation: <br />The City entered into a contract with Dalstar New Brighton, LLC, owner of Dalco Enterprises, in <br />August 2000. This agreement led to the development of a new corporate headquarters and <br />distribution facility for Dalco at 300 Fifth Ave. NW. <br />The original agreement provided an option for Dalco to expand within five years onto a 160-foot <br />strip immediately to the south of its property. In order for this to happen, an agreement had to be <br />worked out between the City and Bell Pole for a small area that would have been part of the <br />Dalco expansion area. <br />Dates were extended and financial arrangements were adjusted with two amendments executed <br />in 2003 and 2005. In late 2006 it became clear that it would be difficult to work out an <br />arrangement with Bell due to issues involving costs of relocating its storage yard and regulatory <br />protections related to environmental contamination. Staff therefore decided that it would be best <br />to sell the City-owned parcel without pursuing an agreement with Bell. This was communicated <br />to Dalco as well as Ryan Companies, who has an agreement with the City to purchase land to the <br />1:\COUNCIL\R.F.POR~fS\2007\Comrnunity Development\4-l U•2007\Dalw 3rd Nnendmentdoc <br />