11/06/2013 - City Council Finance CommitteeFINANCE COMMITTEE MEETING
WEDNESDAY, NOVEMBER 6, 2013
1:00 PM
CONFERENCE ROOMS 2A &B
AGENDA
I. AGENDA ADOPTION
II. PURCHASE OFFER - 3795 PILOT KNOB ROAD PROPERTY
III. CEDAR GROVE REDEVELOPMENT - MORRISSEY HOSPITALITY
PURCHASE OFFER
IV. CSM PUBLIC FINANCING REQUEST
V. OTHER BUSINESS
VI. ADJOURNMENT
Agenda Information Memo
Finance Committee Meeting
November 6, 2013
II. 3795 PILOT KNOB ROAD PURCHASE OFFER
DIRECTION TO BE CONSIDERED:
To make a recommendation to the EDA regarding a purchase offer by ELP Property
Management for the former Fire Administration Building property at 3795 Pilot Knob
Road.
FACTS:
• The City has retained the services of Cassidy Turley to market the former Fire
Administration Building property for sale or lease. In consideration of the
confidential nature of marketing and prospect discussions, the Finance Committee has
been assigned the responsibility of monitoring marketing activities of the broker and
reviewing purchase offers on behalf of the City Council.
• Cassidy Turley has shown the property to three interested parties and at this time,
they have received a purchase offer from ELP Property Management who intends to
locate a medical clinic at the site. The clinic specializes in the treatment of patients
with chronic pain. This use is permitted within the Limited Business Zoning District,
to which the property was rezoned in anticipation of its sale.
The clinic has expressed an interest in the possibility of diversifying its functions to
offer adult day care as well. This use would require a Conditional Use Permit in the
LB Zone. The company is prepared to submit an application for the CUP in the near
future and, if the purchase offer is otherwise acceptable to the Committee and
Council, it may be appropriate to consider a condition in the City's response that the
sale be contingent on the Council's separate consideration of the CUP.
• Cassidy Turley staff will be present at the Committee meeting to overview the offer,
their recommendation of a counter -offer and respond to questions by the Committee.
ATTACHMENTS: None Information to be provided at meeting.
C),
Agenda Information Memo
Finance Committee Meeting
November 6, 2013
III. MORRISSEY HOSPITALITY PURCHASE OFFER
DIRECTION TO BE CONSIDERED:
To make a recommendation to the EDA regarding a purchase offer by Morrissey
Hospitality for one half of the outlot embedded in the parking garage site at Cedar Grove.
FACTS:
• In consideration of the confidential nature of certain marketing and prospect
discussions, the Finance Committee has been assigned the responsibility of
monitoring the redevelopment area marketing activities of the master
developer /broker team on behalf of the EDA and City Council.
• Staff and the Developer have been in discussions with Morrissey Hospitality
Companies in recent months about their interest in developing a hotel on the lot
embedded in the parking garage along Cedar Grove Parkway.
• In follow up to direction provided at the Committee's meeting of July 24, 2013,
negotiations have continued and staff, the developer and the City Attorney are
prepared to provide an update in its regard.
• The Committee will be asked to either provide additional direction for further
negotiation or to make a recommendation to the EDA to consider approval of a
concept plan and direction to prepare a purchase agreement for the property.
ATTACHMENTS: None — Information to be provided at meeting.
Agenda Information Memo
Finance Committee Meeting
November 6, 2013
IV. CSM PUBLIC FINANCING APPLICATION — CENTRAL PARK
COMMONS ENHANCEMENTS
DIRECTION TO BE CONSIDERED:
To make a recommendation to the EDA whether to approve or deny a request by CSM
for public financing assistance for potential enhancements of the Central Park Commons
development proposal.
FACTS:
Background
When Lockheed Martin indicated an intention to pursue a non - contingent sale of its
Eagan property, the City communicated to the company that prospective buyers
should base their purchase decisions on the fact that re- guiding and rezoning of the
property should not be assumed before the fact and that the property's sale price
would need to support any prospective reuse of the property. It should be assumed
that public financing assistance would not be available and that any reuse would need
to be market driven.
At its Workshop meeting of February, 2013, staff asked the City Council if it would
consider public financing assistance if the developer were to propose enhancements
to a market driven plan that were desirable for the community, but beyond the
capacity of the market to finance them. The Council indicated a conditional
willingness to consider such for a project at the site, depending upon what
enhancements or improved features of the development could be achieved if it were
available.
• CSM's initial response was that it would be interested in considering enhancements
of a development plan for the property and made a formal request to the City Council
to authorize staff to explore the possibilities in that regard. Staff researched whether
the property would meet the criteria for a redevelopment TIF district and found that
the building would not meet the substandard test to qualify.
• With the Council's authorization, a request was made of the City's Legislative
Delegation to pursue expanded economic development TIF authority through general
legislation, but was not part of the final tax bill that was passed. CSM has indicated
that it has good momentum from retail and office prospects to proceed with a market
L.l
based project and that it will not be asking the City to pursue special legislation in the
2014 session.
• Staff has consulted with Ehlers and Associates and, given the fact that the project as
presented does not meet the requirements for any of the forms of tax increment
financing districts typically available. The only property based financing tool that
could be applied would be a tax abatement district. A memo from Ehlers describing
tax abatement and the potential revenue that could be captured using the tool is
attached. Under its current Business Financing Policy, the City of Eagan does not
consider the use of tax abatement. If the Committee and EDA conclude that
assistance is warranted for some aspect(s) of this project, it would be necessary to
revisit that policy to determine the bases under which the tool would be considered
for this or other projects.
Financing Request and Format for Committee /EDA Review
• In addition to the market based plan included in the Planned Development
application, CSM has submitted a revised preliminary business financing application,
dated October 29, 2013, based on an "enhanced plan" for consideration by the
Finance Committee and EDA. The developer is asking whether the enhancement(s)
would meet the expectations previously suggested by the Council of features that
might justify public financing assistance through the EDA.
The market driven base plan assumes surface parking for all proposed uses. In
GSM's financing application, it is proposing a site plan within which it would install
a 250 -300 stall parking structure and related landscape and plaza upgrades, to
"incorporate additional overall site density, public functions and attractive amenities."
A more complete description of the structure and amenities is included in CSM's
October 29t" letter, which is attached.
When the EDA considers public financing assistance of any kind, it is typically in
consideration of business expansion or location resulting in the creation of head of
household jobs. That said, the City's Business Financing Assistance Policy also
permits consideration of financing assistance if "other measureable, specific, tangible
goals" are established. "Examples of tangible goals may include redevelopment, or
pollution or soil remediation."
• While the former Lockheed Martin property has not been defined as a redevelopment
area by the City to this point, CSM's proposed development of the site involves the
demolition of the current building and a repurposing of the property for another use.
The Finance Committee and EDA has the latitude to determine whether this would
constitute a redevelopment for purposes of the policy
• The City Attorney has advised that it would be an option for the City's EDA to
consider a comparison of the base plan and an enhanced plan to make a determination
in that regard, much as the EDA now reviews concept plans in its redevelopment
districts to determine whether there is a basis for the Company to proceed with a
formal request for financing assistance. The Finance Committee of the City Council
has been delegated the responsibility of doing the preliminary review of such
applications and making a recommendation to the EDA in their regard.
Financing Option
As noted above, staff and the City's fiscal consultant have not identified funding
sources for public assistance other than tax abatement. If the Finance Committee
were to recommend public financing assistance to the CSM project, it would be
necessary to define the criteria under which abatement would be considered for this
project now and other projects in the future.
ISSUES FOR CONSIDERATION:
• In consideration of the original expectations defined for Lockheed Martin and
prospective purchasers of the property, is there a basis for the City to consider public
financing assistance at this time for any of the base costs of development of the site?
• Are there aspects of the CSM enhanced plan that would justify public financing
assistance? If so, what would they be?
If public financing assistance were to be considered for any aspect of the project,
should the City consider an exception to or amendment of its public financing
assistance policy, such that tax abatement would be a possible funding source in this
case?
ATTACHMENTS:
• CSM Business Financing Assistance Preliminary Application as Amended on pages
through
• Preliminary Planned Development Site Plan on page �3
• Proposed Enhanced Site Plan enclosed without page number.
• Memo from City Attorney regarding the review of business financing applications on
page q
• Letter from the City to Lockheed Martin regarding business financing for prospective
buyers on pages _EL_ through 5T
• Minutes of February 12, 2013 City Council Workshop Minutes on pages
through
l�
• Memo from Ehlers and Associates regarding projections of tax abatement revenue on
pages (pp through (o�-
•
City of Eagan Business Financing Policy on pages
(4�" through
1-1
0 CSM C
PROPERTIES t
October 29, 2013
Mr. Jon Hohenstein
Director of Community Development
City of Eagan
3830 Pilot Knob Road
Eagan, Minnesota 55122
Re: Central Park Commons
Request for Public Finance Assistance
Dear Mr. hlohenstein:
Aff 1' C.ct
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As you are aware, CSM has been working to redevelop the former Lockheed Martin site to allow a mixed -use
development known as Central Park Commons. In concept, this approximately 450,000 sq. ft. development will
include retail, service, dining and healthcare uses, with an estimated market value in excess of $100 million. The
current development plan envisions several features of importance to Eagan residents, as well as the City Council,
which have been incorporated into the site plan based on feedback received from the City Council and
Community Development staff:
• Mixed use components (office /service uses, upscale grocer, large variety of retail uses, quick service and
sit -down dining, and health care uses);
• Creation of neighborhoods and shared parking arrangements intended to minimize an undesired "sea of
parking" and provide a sense of place and walkability on a scale conducive to suburban retail habits;
i Urban -style building placement to screen parking and truck court areas, while offering enhanced
walkability and pedestrian connections;
• Human -scale buildings with a consistent architectural aesthetic, and diversity in height and mass;
0 Cluster of restaurants with outdoor dining and gathering spaces, which will add an amenity notably
lacking in Eagan;
• Connectivity to the community through vehicular, mass transit, sidewalk and trail connections providing
multi -modal access to the development from Central Park, the Community Center and surrounding Eagan
area;
+ Abundant landscaping, plaza areas and directional signage;
® Redevelopment of a prominent property in Eagan which responds to market needs and supports the
policies of the Central Commons Area,
While CSM is excited and committed to proceed with a market- driven plan for Central Park Commons in keeping
with the goals outlined above, the development team recognizes that with the availability of public financing to
bridge the gap between the current strong market - driven plan and a community- enhanced site plan with more of a
"wow" factor, that the site plan could be modified to incorporate additional overall site density, public functions,
and attractive amenities. CSM believes that the addition of structured parking ramp in the northeast portion of the
project area, together with enhanced landscape and plaza features, is one such potential desirable upgrade to
achieve additional site density. It would also allow CSM to create additional opportunities for public gathering
spaces that would coexist with and blend into the overall restaurant and retail experience to present a special sense
of place for the Eagan community.
00 wnshington Ave71t1C South, Suite 3000 btinnenpolis, Minncsotn 55'1,15
I'dephone: (612) 395.7000 ri.- (612) 395.7001 W- Y— mcorp.net
IN
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PROPERTIES
Please consider this letter as CSM's request to the EDA and City Council to explore whether providing Public
Assistance for a structured parking ramp and related landscape and plaza upgrades provide additional benefits to
the City that are justified by the use of these types of funds. At this time, site plan redesign is underway to create
alternatives for a parking structure to be incorporated into the northeast portion of the project. This redesign will
also present opportunities for additional public benefit such as a more focal and enhanced water feature and plaza
area, in addition to reconfiguring the buildings to increase density and further enhance the restaurant and retail
experience in that "neighborhood" of the site.
Pursuant to the directive set forth in your October 3, 2013 memo regarding possible Public Assistance, CS.M.
responds as follows:
1. Description of Use of Funds — A structured parking facility providing 250 to 300 parking stalls, together
with related landscape and plaza upgrades.
2. Anticipated Cost — At this time the exact cost is not known, but the nature and configuration of the
parking facility would seek to optimize the opportunities stated above as well as to provide additional
benefit to the City. Given typical market costs of approximately $13,000 to $15,000 per stall, and a
contemplated amount of approximately $500,000 for an enhanced plaza area, it is anticipated that this
type of parking structure and plaza area would cost in the range of $3.75M to $4.50M.
3. Passing "But For" Test — CSM believes that "but for" this Public Assistance, the structured parking
facility and an enlarged plaza area is not supported under a market - driven plan, as end users would not
pay the incremental rents required to underwrite such a structure and plaza area.
4. Timeline for Use of Funds — CSM is currently underway with existing building salvage and asbestos
remediation. Demolition of the existing building would commence in the winter of 2013/2014. Based on
the current project schedule, and subject to obtaining the necessary entitlements and approvals, CSM
contemplates commencement of site work for the project in spring, 2014. Construction of the structured
parking facility would commence in fall 2014, with completion to coincide with a planned project
opening in fall of 201.5.
CSM welcomes any other suggestions of City leaders for desired improvements to the Central Park Commons site
plan, which suggestions will hopefully be part of a discussion about the feasibility of using public finance
assistance to achieve shared objectives that absent assistance could not otherwise be achieved.
CSM looks forward to our continued dialog.
Since: • .ly,
Thomas P. Palmquist
Manager
CSM Eagan, L.L.C.
500 Washington Avenue S0111h, Suile 3000 Minneapolis, Minnesota 5 )+t5
Telephone: (612) 395.7000 Fax: (612) 395,7001 W— smcorp,net
M
CITY OF EAGAN
PRE- APPLICATION
___.__........__.._. .._....._.. ......... __._ ..... .__ BUSINLNS ASSISTANCE FIN ANCMT.. .W� ..._.. v......._ .......... �_
Legal name of applicant: CSM EAGAN, L.L.C.
Address: 500 Washington Ave. S, Suite 3000, Minneapolis, MN 55415
Telephone number: (612) 395 -7026
Name of contact person: Thomas P. Palmquist
REQUESTED INFORMATION
Addendum shall be attached hereto addressing in detail the following:
1. A map showing the exact boundaries of proposed development.
2. Give a general description of the project including size and location of building(s); business
type or use; traffic information including parking, projected vehicle counts and traffic flow;
timing of the project; estimated market value following completion.
3. The existing Comprehensive Guide Plan Land Use designation and zoning of the property.
Include a statement as to how the proposed development will conform to the land use
designation and how the property will be zoned.
4. A statement identifying:how the assistance will be used and why it is necessary to undertake
the project.
5. A statement identifying the public benefits of the proposal including estimated increase in
property valuation, new jobs to be created, hourly wages and other community assets.
6. A written description of the developer's business, principals, history and past projects
I understand the Pre - Application is a tool through which the City will make an initial determination as to
whether public financing assistance might be considered for the project. If so, I would intend to prepare
and submit a formal application for business financing assistance.
SIGNATURE
Applicant's Signature:
Date:
3eptemoer 16, zui.s
5
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to
Addendum to Pre - Application
Business Assistance Financing
CSM Eagan, L.L.C. —Central Park Commons
September 18, 2013
Please note the following attachments and additional information to the CSM Eagan, L.L.C. ( "CSM ") Pre -
Application request for Business Assistance Financing. The responses follow the format of the requested
information on the application form:
1. Property Boundaries - See attached Preliminary Plat dated September 13, 2103, from the
CSMPD Application submission of the Lockheed Martin property located at 3333 Pilot Knob
Road, Eagan, MN.
2. For a general description of the project, please see the complete CSM's PD Application dated
September 18, 2013, which includes the project Narrative, and full Civil and Architectural
drawings of the proposed project. From a project schedule standpoint, CSM anticipates that
given the PD Application of same date that the Final Plat, Development Agreement and other
necessary documents would be approved in first quarter 2014. This will enable a construction
commencement in spring of 2014, and a project opening in fall of 2015. The estimated project
value of the completed project is reasonably expected to be in excess of $105,000,000.
3. The existing Comprehensive Guide Plan Land Use is Major Office, with a Research and
Development District zoning. The planned Comprehensive Guide Plan Land Use is Retail
Commercial, with a PD zoning.
4. While CSM is committed to proceed with a market - driven plan for Central Park Commons, the
development team recognizes that the site plan could be modified to incorporate additional
public functions, amenities and values. CSM would like to discuss options for the use of Tax
Abatement with the City Finance Committee, EDA and Council to offset the extraordinary costs
associated with the proposed redevelopment (both as currently envisioned and as may be
amended to reflect additional public values). CSM welcomes suggestions by City leaders for
desired improvements to the Central Park Commons site plan, which suggestions will hopefully
be part of a discussion about the feasibility of using public finance assistance to realize shared
objectives that absent assistance could not otherwise be achieved.
5. The applicant submits that the following "public benefits" are provided by Central Park
Commons, and that through Tax Abatement, additional and greater benefits could be realized:
• Central Park Commons seeks to provide and unify highly desirable retailers, restaurants
and other uses into a successful marquee destination that provides for unmet Eagan
market needs.
• Site Circulation - Care and planning was used to develop a site Layout that is
accommodating to multi -modal transportation means which include vehicle, mass transit,
bicycle and ease of pedestrian circulation, while minimizing vehicle and pedestrian
conflicts.
• Pedestrian Connections - The site plan takes into account the neighboring uses and existing
area -wide trail system by providing an external pedestrian loop to invite foot and bike
traffic into the site, and an internal pedestrian loop to safely allow travel within the site.
• Tax Base Differential - If approved, the Central Park Commons project will increase taxes
from $332,445.00 to approximately $2,500,000.00 per year.
• Redevelopment of a market - obsolete, outdated building before any blight conditions can
occur.
• Sustainable Design - Energy efficient roofs, elimination of soil import and export, recycling
existing building concrete for structural fill, encouragement of non - vehicle means of
property access and shared parking are all part of the cohesive design that uses current
sustainability best practices.
• Building Architecture - The proposed design exceeds the City material requirements while
uniquely telling the story of the former land use. Most importantly, the building location
and quality architecture contribute to the public realm and create a vibrant mixed -use
destination. Street level architectural features will be emphasized such as canopies, store
front material details, and decorative lighting.
• Site Amenities - Inviting plaza areas at key site locations, walking trails, seating areas and
gathering spaces, water features, and gateways are all amenities that contribute to the
experience of Central Park Commons.
• Future City Well - Central Park Commons will grant a no cost permanent easement to the
City of Eagan that provides property for the future addition of a well for the municipal
water system.
• The Final Plat will dedicate the necessary right -of -way per the Dakota County April 16, 2013
Plat Needs Map along Pilot Knob Road at no cost for the planned future expansion of Pilot
Knob Road.
• The project is expected to generate approximately 475 construction jobs, and in excess of
1,750 permanent full and part time jobs upon project completion and opening.
6. See the attachment included herein which details CSM's business, principals and significant
members of the development team, CSM history and CSM past projects.
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OFFICE INDUSTRIAL RETAIL HOTEL RESIDENTIAL CSM
PROPERTIES
STATEMENT OF QUALIFICATIONS
Established
Since 1976, CSM has developed, acquired and managed a diverse portfolio of real estate across the United
States, Today, CSM owns and manages 4,000 residential units, eight million square feet of industrial space,
two million square feet of retail space, one million square feet of office space, and 37 hotels in 16 states.
Entrepreneurial
CSM is widely recognized for our
entrepreneurialvision and approach
to creating successful real estate
solutions for businesses of all sizes
including small enterprises and
Fortune 500 customers.
Innovative
CSM brings creativity with best
practices to the design and
construction of projects that
CSM Corporate Headquarters in downtown Minneapolis
respond to our clients, customers
and the environment, which helps assure that our collective ventures succeed.
Values -Based
With a best practice foundation based on integrity and respect for our clients, their projects and the
impacted communities, CSM creates projects that promote continued business growth.
Customer- Focused
CSM provides our clients with benefits from vertical integration of in -house services including property
management, maintenance, and asset management services. Our main priority is to identify customer
needs and exceed clients' expectations for their continued complete satisfaction.
Financially Strong
With private capital and diverse financing, CSM is a well capitalized company. The company's varied
portfolio of properties offers a continuous stream of stable income, allowing CSM to aggressively pursue
opportunities that fulfill our clients'vision and optimize their success.
Responsive
Extensive in -house capabilities and expertise enable CSM to focus on properties so our clients can
maintain focus on their businesses.
CSM • 500 Washington Avenue S., Ste 3000 • Minneapolis, MN • (612) 395.7000 1 MCSMCORRnet
1 b
OFFICE I INDUSTRIAL I RETAIL I HOTEL I RESIDENTIAL
IN-HOUSE SERVICES
Development
Our highly experienced Development team with a
committedon- time /on- budgetemphasisallowsour
clients to concentrate on their core businesses with
the assurance that the project will be completed on
the agreed schedule and within the agreed budget.
Our clients, partners and cities are enabled to move
forward with confidence in the success of every
project, every time.
Architecture
CSM's LEED Certified architects maintain an
ongoinggoalofprovidingcleanenergyefficientand
environmentally sensitive designs. Our dedication
results both in lower operating expenses and
greater return on investments, and aligns with both
customerandindividualcommunities 'objectivesby
utilizing environmentally sustainable design.
Legal
With extensive knowledge and professionalism,
the CSM legal and paralegal team provides cost -
effective, comprehensive legal support to all
clients. The legal support team creates timely,
fair agreements with a "deal maker" emphasis on
constructive negotiations.
CSM
PROPERTIES
Commercial Leasing
The CSM Leasing team maintains open and
responsivecommunicationtoalltenants ;presenting
innovative, customized and responsive solutions to
the ever changing business environment. Focused
ontheindividual business needsofeverytenant,our
professionals assure a seamless leasing process.
Construction Services
The CSM Construction Services and Management
Team assigns a project manager to each client as
part of the company's commitment to on -time,
on- budget delivery of every project. CSM project
managersbring responsiveservice,communication
and attention to detail, which translates to accurate
expectations and exceptional quality.
CSM • 500 Washington Avenue S., Ste 3000 • Minneapolis, MN • (612) 395.7000
CSMCORP.net
OFFICE I INDUSTRIAL I RETAIL I HOTEL I RESIDENTIAL
IN -HOUSE SERVICES
Financial
Astrong balance sheet and readily available capital
offers our clients the certainty of CSM's ability to
closewith nofinancial contingency. Grounded with
long -term ownership principles, CSM manages
every transaction building client confidence and
peace of mind.
ProTech
ProTech is CSM's in -house maintenance and
leasehold improvement division. By assisting in
construction and managing tenant improvement
projects, the team monitors each project through
completionwhileadheringtobudgetsandtimelines.
PROTECH provides tenants with quality,
professional service to all CSM business units.
Property Management
CSM
n�
PROPERTIES
The CSM Property Management team allows our
clients and tenants the freedom to prioritize their
efforts into what is most important to them —
running their businesses. Daily operations of their
environment are handled by our seasoned and
responsive management professionals.
Asset Management
When opportunities are presented, the CSM Asset
Management Team acts quickly, offering timely
dispositions, financing and capital solutions.
With the team's intensive long term strategies and
detailed attention comes increased buying power,
which keepscapitalexpenditurestoa minimum and
productivity to a maximum.
CSM • 500 Washington Avenue S., Ste 3000 • Minneapolis, MN • (6(12) 395.7000 W.0 S MCORRnet
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OFFICE I INDUSTRIAL I RETAIL I HOTEL I RESIDENTIAL CSM
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PROPERTIES
ABOUT CSM�
Headquartered in Minneapolis, Minnesota, CSM owns and manages property and space for people,
businesses and communities. Wedothisbyacqui ring, developing and managing real estatethatallowsour
customers, partners and the communities we serve to succeed and prosper.
History
CSM Corporation began modestly when a 12- year -old Gary Holmes, now CSM's CEO, started selling
light bulbs doorto door in southwest Minneapolis. A young entrepreneur, Gary enlisted members of his
Boy Scout troop as a sales force. At age 14, he used his light bulb earnings to buy his first real estate asset
— a set of Minneapolis duplexes. In 1976, Gary's first company, Colonial Apartments became Colonial
Services & Management,
which eventuaIly became CSM
Corporation.
Growth continued, and CSM
began acquiring, developing
and renovating residential,
commercial and industrial
properties across the United
States. By 1980, CSM had
15 employees overseeing five
commercial properties and
five apartment communities.
Six years later, that portfolio
hadexpandedto11 commercial
properties and 1,200 rental units.
Milwaukee Road Depot, Downtown Minneapolis
In 1990, CSM entered the hotel industry, acquiring and renovating a former Howard Johnson's into a
Country Inn by Carlson. CSM's success continued through the next two decades. A one million square
foot commercial property portfolio grewto more than eight million by 2008. By this time, CSM Lodging
had acquired, built and managed 37 hotel properties. From a companythat employed 150 people in 1990,
CSM has expanded to 2,200 employees today.
Future
With provenfinancialstrength ,astaffoftalented property experts, and demonstrated innovation,CSMis
well - positioned to manage current assetstotheirfullest ,whileinvesting in new properties and expanding
our portfolio for continued growth and success.
CSM • 500 Washington Avenue S., Ste 3000 • Minneapolis, MN • (612) 395.7000 • ' • -
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OFFICE INDUSTRIAL RETAIL HOTEL RESIDENTIAL CSM
PROPERTIES
CSM IN THE COMMUNITY 1
Holmes Family Foundation
Founder and CEO Gary Holmes understands that real estate development is much more than building or
acquiring properties. He knows that giving back to the community is essential, and form any years, Gary
and the Holmes FamilyFoundation have madegenerouscontributionsofti me, moneyandotherresources
to local and national organizations.
Thefoundation assists organization sthat provide support
for families, children, health and education, including
the Boys and Girls Clubs of America, the University of
Minnesota Hospital, Carlson School of Management
at the University of Minnesota, the Children's Cancer
Research Fund, Hope forthe City, A Chance to Grow.
The Holmes Family Foundation, and Children's Miracle
Network effectively connects business and community
development.
CSM Corporation
Hope for the City volunteer day
The spirit of giving backto the community is engraved in our culture. In 2008, CSM employees collected
over 6,000 pounds of food, donated more than 1,000 volunteer hours and contributed nearly $55,000
to Hope for the City, a non - profit organization that distributes corporate surplus to those in need.
In 2008, CSM Corporation received the Jefferson Award for public service. Co- founded in 1972 by Sam
Beard, Jacqueline Kennedy Onassis and Senator RobertTaft, the Jefferson Award is a prestigious national
recognition honoring community and public service in America.
CSM Corporation and Holmes Family Foundation continue to seek opportunities to use their time and
talents aiding the communities where the company builds, acquires and manages properties.
Philanthropy
Our long -term investment strategy benefits our customers, partners and the communities where we do
business.Ga ry Holmes has paralleled three decades of steadyCSM business growth with phi lanth ropic and
volunteer investments in a variety of community- enhancing charitable groups.
CSM • 500 Washington Avenue S., Ste 3000 • Minneapolis, MN • (612) 395.7000
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OFFICE I INDUSTRIAL I RETAIL HOTEL I RESIDENTIAL CSM
m�
PROPERTIES
CSM Awards
CSM's 30 years of world class real estate investment have garnered the company an array of awards from a
variety of organizations, including the National Association of Industrial and Office Properties (NAIOP)
the Minnesota Shopping Center Association (MSCA), the Business Journal, the Minnesota
Multi- Housing Association, Marriott International, Carlson Companies and the American Hotel
& Lodging Association.
Year afteryear, the largest and most prestigious brands and trade organizations in the real estate industry
consistently recognize CSM nationally for our talented staff, innovative designs, superb services and the
outstanding quality of our well- maintained properties. .
Lodging Awards
Marriott Developer of the Year (two times)
Marriott Hotels of the Year
Marriott Renovated Hotel of the Year
Marriott Sales Team & Director of Sales of the Year
Marriott General Managers of the Year
Marriott Gold & Silver Awards
Country Inn & Suites by Carlson Developer of the Year
Country Inn &Suites by Carlson Presidents Award
Country Inn & Suites by Carlson Employee(s) of the Year
Country Inn & Suites by Carlson General Manager of the Year
Country Inn & Suites by Carlson Gold Standard Award
Country Inn & Suites by Carlson Pinnacle Award
Commercial Awards
15 time NAIOP Award of Excellence recipient
MSCA STARR Awards
CharityAwards
Jefferson Award for Corporate Philanthropy
Partner in Hope Award
Gary Holmes' Awards
Twin Cities Business Hall of Fame Honoree
Entrepreneur of the year, St. Thomas
Entrepreneur of the year, LI of M
ExecuStay Presidents Circle
ExecuStay Sales Team of the Year
ExecuStay General Manager of the Year
Best Hotel /Resort Waterpark, Aquatics International
Best Opening Award, Marriott International
Construction Excellence Award, Marriott International
Global Award Direct Sales Leader, Marriott International
Highest ESOcc, Marriott International
Project of the Year, American Institute of Architects
Sales Performance, Marriott
SalesTeam(s) of the Year, Marriott
The Partnership Circle Award, Marriott International
CSM • 500 Washington Avenue S., Ste 3000 • Minneapolis, MN - (612) 395.7000 VLV.CSMCORP.net
OFFICE INDUSTRIAL RETAIL HOTEL RESIDENTIAL CSM.
PROPERTIES
L__IEA�M PROFILE
Gary Holmes
President and Chief Executive Officer
Gary Holmes, CSM's President and CEO, continuously
recognizes and capitalizes on opportunities, embracing
organizational fluidity to mold real estate investments into
lucrative assets. Gary's entrepreneurial spirit, focus, strive
for integrity and honesty, and instinctive understanding of
business and risk- taking has developed a company known
nationwide for raising, renovating and restoring thriving
residential, commercial, industrial and hotel properties
across the U.S.
An early entrepreneur, Gary built CSM from modest
beginningsasapropertymanagementcompanyintoitsstatus
todayas real estate powerhouse. In parallel, Gary has actively
pursued and supported countless philanthropiccontributions
to various causes and volunteer efforts, which bolster the
communities in which he does business.
Gary's business and charitable successes have garnered
numerous awards, among them, the Outstanding
Achievement Award, from the University of Minnesota's
Carlson School of Business, the John F. Cade Award — an
honor conferred upon exemplary entrepreneurs —from the
University of St. Thomas.
The Twin Cities Business magazine inducted Gary into their
Minnesota Business Hall of Fame and most recently featured
him as one of the top 200 Minnesotans you should know.
Additionally, Gary has been awarded Entrepreneuroftheyear
by both U of M and St. Thomas.
CSM • 500 Washington Avenue S., Ste 3000 • Minneapolis, MN • (612) 395.7000 • ' ' -
OFFICE I INDUSTRIAL I RETAIL I HOTEL I RESIDENTIAL
TEAM PROFILE
Ron Schiferl
Senior Vice President, Commercial Properties
CSM Senior Vice President, Commercial Properties Ron
Schiferl provides strategic direction and leadership for all
aspects of the CSM commercial real estate portfolio. His
primary focus area is analyzing and developing strategic
plans to maximize return on each asset. He also oversees
the commercial properties team including leasing, asset
management, construction, development, acquisitions,
dispositions and property management. Schiferl plays a
key role in driving the lease renewal and approval process,
ensuring strong long -term portfolio decisions.
His leadership background includes experience as Chief
Financial Officer, Chief Operating Officer and consulting
and audit partner with a "Big 4 "CPA firm. Beforejoining
CSM, Schiferl was Chief Financial Officer for the Community
Preservation Corporation in New York, New York. In
addition, he held positions with the Minnesota -based
companies Naterra Land, Inc. and Opus Corporation and
KPMG, LLP.
Ron earned a bachelor's degree in Business Administration
at the University of Wisconsin Eau Claire. His professional
and community involvement extends to Urban Land
Institute (ULI), International Council of Shopping Centers
(ICSC), the Commercial Real Estate Development
Association (NAIOP) and Catholic Charities.
CSM • 500 Washington Avenue S., Ste 3000 • Minneapolis, MN • (612) 395.7000
C�q
CSM
n
PROPERTIES
Education and Training
• Bachelor of Arts — Business
Administration: University of
Wisconsin - Eau Claire
Professional Memberships
American Institute of CPAs
Urban Land Institute
NAIOP
ICSC
Civic and Charitable Organizations
• Prior Board of Directors positions with
Progress Valley and Catholic Charities
of Minneapolis & St. Paul
CSMCORP.net
OFFICE I INDUSTRIAL I RETAIL I HOTEL I RESIDENTIAL
[__IEAM PROFILE
__.__j
Michelle Culligan
Vice President, General Counsel
Michelle leads the legal aspects and business consultation
for CSM's diverse portfolio of commercial, residential and
hotel properties, including corproate matters, financings,
development, leasing, acquisitions, and risk management.
She has over 24 years' experience representing clients in
the commercial real estate industry.
Prior to joining CSM, Michelle was a principal and general
counsel at Manchester Companies in Minneapolis,
Minnesota. Michelle practiced 13 years at Briggs and
Morgan, P.A. where she was a partner in the Financial
Services /Real Estate department and 5 years as a partner at
the firm of Dunkley and Bennett, P.A.
Michelle recieved her bachelor's degree from Drake
University, her Jursi Doctor from the University of
Minnesota and a Mini Master in Real Estate Development
from the University of St. Thomas.
Michelle is an active member of the Association of
Corporate Counsel, and serves on the Board of Directors
and is chair of the Facilities Committee of Progress Valley,
Inc.
CSM • 500 Washington Avenue S., Ste 3000 • Minneapolis, MN • (612) 395.7000
CSM
PROPERTIES
Education and Training
Summa Cum Laude — Drake
University
Mini master - Real Estate;
University of St. Thomas
Juris Doctorate - University of
Minnesota
Professional Memberships
• Minnesota State Bar Association
OFFICE I INDUSTRIAL I RETAIL I HOTEL I RESIDENTIAL
TEAM PROFILE
Thomas P. Palmquist
Vice President, Retail Development and Leasing
During his 25 -plus year career of commercial development,
leasing and asset management, Tom has earned a
reputation for building lasting relationships and optimizing
project efficiency and success. From determining customer
neesd and site selection to defining completed project sale
or hold strategies, he coordinates the development process
for all components of CSM retail, industrial, office and
mised -use ventures.
Tom has served as President of Robert Muir Company and
Vice President Retail Development for Ryan Companies
US, Inc. He is a licensed real estate broker, and is active
in the International Council of Shopping Centers (ICSC),
National Association of Office and Industrial Parks (NAIOP),
Minnesota Commercial Association of Realtors (MNCAR)
and Minnesota Shopping Center Association (MSCA).
Tom is a graduate of the University of Minnesota's Carlson
School of Management, having earnd both his bachelor
and master of business administration degrees from
that school. He is a past recipient of the "40 under 40"
recognition from City Business magazine.
CSM • 500 Washington Avenue S., Ste 3000 • Minneapolis, MN • (612) 395.7000
d- (
CSM
PROPERTIES
Education and Training
Bachelor of Science - Business;
University of Minnesota
Master's In Business
Administration; University of
Minnesota
Licensed real estate broker,
Minnesota
Professional Memberships
International Council of Shopping
Centers
Minnesota Shopping Center
Association
Minnesota Commercial
Association of Realtors
Commercial Real Estate
Development, Minnesota Chapter
(NAIOP)
OFFICE I INDUSTRIAL ] RETAIL I HOTEL I RESIDENTIAL
TEAM PROFILE
Louis Zachary
Director of Construction Services
As Director of Construction Services, Louis Zachary applies
his many years of experience in construction management
to further CSM's long- standing achievement in high quality
development. Louiscoordinatesandmanagesconstructionfor
multiple and concurrent projects across the CSM portfolio.
Since beginning with CSM in 2007, Louis has made it his
mission to assist CSM and their clients with the successful
real estate transactions by providing responsive and
personalized construction services. Louis ensures that his
team takes care of every detail. His team makes every effort
possible to serve clients' needs and consistently deliver
excellence in customer service.
Representative Experience:
Managed the construction of 420 projects totalling over
4 million sf.
Transaction Highlights:
• Dr. Professional Building, 175,000 sf, St. Paul, MN
• Centennial Lakes Office Park, 300,000 sf, Edina, MN
• Midwest Plaza Office, 225,000 sf, Minneapolis, MN
CSM • 500 Washington Avenue S., Ste 3000 • Minneapolis, MN • (612) 395.7000
ail
CSM
PROPERTIES
Education and Training
Bachelor of Science — Construction
Management; Minnesota State
University, Mankato
Pursuing Masters — Project
Management; St. Mary's University
Professional Memberships
Construction Management
Association of America (CMAA)
Design -Build Institute of America
Awards
Project Manager of the Year Award
from United Properties, Inc.
Five- time winner of United
Properties Customer Champion
Award
OFFICE I INDUSTRIAL I RETAIL I HOTEL I RESIDENTIAL
L_LEAMPRO ILE
John Ferrier
Director of Architecture
Director of Architecture John Ferrier coordinates, manages
and oversees architectural design for all CSM projects. A
licensed member of the American Institute of Architects
(AIA) and a registered member of the National Council
of Architectural Registration Boards (NCARB), John
proficientlyconceptualizes ,developsandimplementsavariety
of commercial projects, from office /industrial and retail to
residential and lodging.
John gained experience at a number of Twin Cities'
architectural firms, including BWBR, Setter Leach and
Lindstrom, and Houwman Architects. In 2007, he received
the CSM Award forOutstanding Achievement, recognizing his
dedication and commitment to the goals and vision of CSM.
John is a certified interior designer and recently completed
his LEED certification. His focus on sustainable design was
effectively utilized on Aveda's Distribution Center in Blaine,
Minnesota.
Representative Experience:
• Designed more than 200 office, industrial, retail, residential,
and lodging projects totaling 4 million sf
Transaction Highlights:
• Aveda Distribution Center, 125,000 sf, Blaine, MN
• Lexington Preserve II Business Center, 87,000 sf, Blaine, MN
• Parametric Technologies Build -to- Lease, Lexington Preserve
IV, 94,000 sf, Blaine, MN
CSM • 500 Washington Avenue S., Ste 3000 • Minneapolis, MN • (612) 395.7000
CSM
m
PROPERTIES
Education and Training
Bachelor of Science —
Environmental Design; North
Dakota State University (NDSU)
Bachelor of Architecture; NDSU
Licensed Architect in Minnesota
LEED Accredited Professional
Certified Interior Designer
Professional Memberships
• American Institute of Architects
(AIA)
• National Council of Architectural
Registration Boards (NCARB)
Awards
• 2007 recipient, CSM Award for
Outstanding Achievement
CSMCORRnet
OFFICE I INDUSTRIAL I RETAIL I HOTEL I RESIDENTIAL
F -
TEAM PROFILE
Brad Kittleson
Vice President, Property Management
With his 30 years of property management experience, Brad
Kittleson has been a driving force in the success of CSM since
joining the company in 1988. As vice president of property
management, his knowledge, leadership, and work ethic have
complemented the company's goals of producing award - winning
results. Brad oversees CSM's Residential department consisting of
more than 4,000 residential units in nine states, housing more
than 10,000 residents. He also leads the Commercial Property
Management department responsible for more than 11 million
squarefeetand 110 properties insixstates .ln addition, heoversees
the CSM in -house maintenance team, ProTech, which provides
full- service maintenance and tenant improvement services.
Prior tojoining CSM, Brad worked for the Milwaukee -based
Decade Companies where he was responsible for daily property
management, renovations and repositioning of properties.
Representative Experience:
• Managed approximately 75 apartment communities with
15,000 units, 125 commercial properties, shopping centers
and office buildingswith approximately 12.5 million sfvalued
in excess of $2 billion.
Transaction Highlights:
• Fountain Place Apartments, 498 units, Eden Prairie, MN
• Westridge Market, 260,000 sf, Minnetonka, MN
• Acme Distribution Center, 875,000 sf, Denver, CO
CSM • 500 Washington Avenue S., Ste 3000 • Minneapolis, MN • (612) 395.7000
CSM
PROPERTIES
Education and Training
Bachelor of Science - Public
Administration; University of
Minnesota
Institute of Real Estate
Management, CPM Designation
Licensed real estate salesperson,
Minnesota
Professional Memberships
Minneapolis Building Owners and
Managers Association
Minnesota Multi Housing
Association
NAIOP, Commercial Real Estate
Development Association,
Minnesota Chapter
Certified Commercial Investment
Member (CCIM)
Civic and Charitable Organizations
• Hope for the City
OFFICE I INDUSTRIAL I RETAIL I HOTEL I RESIDENTIAL
BUSINESS PARK DEVELOPMENT
The Waters Business Center
The Project
400,000 square -foot, high finish, office showroom
business park situated on 95 acres
Challenges & Opportunities
To attract Fortune 500 companies, CSM wanted.to
develop a premiere business park.
During site planning, this project required special
attention to integrate the buildings into a designated
wetland area.
CSM
,M
PROPERTIES
At the start of each phase, CSM faced increased city
architectural finish requirements, which posed budget constraints.
Our Response
CSM Architecture developed a plan to integrate the natural
features of the property within the project, adding extensive
landscaping and pedestrian pathways.
CSM created the opportunity to meet each client's needs by
offering build -to -suit or multi- tenant buildings.
Results
CSM developed seven buildings totaling 395,965 square feet.
Currently in the planning and design phase of buildings VIII, IX
and X, the Waters Business Center is a high finish development
beautifully situated within a park like setting. By establishing
high aesthetic standards, the park has attracted several Fortune
500 company tenants, including Ecolab, Delta Airlines, Hewlett
Packard, John Deere, IBM, and AIG.The Waters is a three time
NAIOP Award of Excellence recipient.
CSM • 500 Washington Avenue S., Ste 3000 • Minneapolis, MN • (612) 395.7000
31
Highway 55 and Dodd Road
Eagan, Minnesota
"My client had a number
of requirements, including
office space, training
space, and even a tractor
implement showroom area.
CSM responded with an
impressive, interconnected
showplace well - suited to
everyone -- employees,
dealers and customers.
They were easy to work
with and made the process
seamless:'
-Ted Carlson
SYP NAI Welsh,
Deere & Co.
CSMCORP.net
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OFFICE I INDUSTRIAL I RETAIL I HOTEL I RESIDENTIAL
HISTORIC REDEVELOPMENT
The Milwaukee Road Depot
The Project
Restoration and redevelopment in the Historic Mill
District of Minneapolis that created two hotels and
more than 60,000 square feet of meeting, event and
entertainment space
Challenges & Opportunities
Built in 1899, the Milwaukee Road Depot greeted
travelers and freight for over a half century before it
fell into disrepair. When CSM purchased the property,
the depot had been vacant for 25 years.
CSM
n
PROPERTIES
Historic Mill District
Washington and Third Avenues South
Minneapolis, Minnesota
CSM needed to meet many expectations, including those of the Minneapolis City Council, the
Minneapolis Community Development Agency, and the Minneapolis Heritage Preservation
Commission for this prominent site.
While preserving the historic character of The Depot was highly important to CSM, financial feasibility
was also a requirement for the project.
Our Response
CSM determined a hotel would restore this historic property to a vital public landmark for the city of
Minneapolis.
This property, with its blend of old and new, was a perfect candidate for Marriott's Renaissance flag
associated with iconic properties.
From the marble work in the Great Hall and the hand painted ceiling to the historic guest suites;
developers and designers labored intensively over every aspect of the restoration.
The extensive redevelopment project required a financial commitment that carried significant risk.
After a ramp up to stabilization, this property is now one of the best performing assets in CSM's
hospitality portfolio.
Results
The Milwaukee Road Depot project has spurred re- development of the Historic Mill District, culminating
in the new Guthrie location and Gold Medal Park. The city of Minneapolis Planning Department
& Committee on Urban Environment "CUE" presented the Milwaukee Road Depot with an award
recognizing "Significant Achievement in Design and Aesthetic Excellence."
CSM • 500 Washington Avenue S., Ste 3000 - Minneapolis, MN • (612) 395.7000 • • ' -
OFFICE I INDUSTRIAL I RETAIL I HOTEL I RESIDENTIAL
MIXED USE DEVELOPMENT _J
Plymouth Pointe
The Project
22,000 square feet of retail shops and a 119 room
Residence Inn by Marriott.
Challenges & Opportunities
A five -acre inI HI site owned by the adjacent medical
Interstate 494 and Highway 55
campus brought an opportunity for a multi -use
Plymouth, MN
development.
CSM's Development and Lodging divisions collaborated
to build a hotel with surrounding retail amenities.
Site constraints dictated a creative approach to storm water management. CSM relocated an existing
storm water pond by building a one million gallon underground storm water management system.
CSM
PROPERTIES
Our Response
A solid working relationship with the City of Plymouth allowed CSM to re -zone the site and create a
final product that exceeded expectations.
CSM Architecture, in conjunction with hotel experts from CSM Lodging, designed a custom
Residence Inn by Marriott.
Results
Completed in 2008, Plymouth Pointe is a first class, mixed use
facility located in a growing suburban area. By combining an
extended stay hotel with retail shops, CSM successfully provided
necessary amenities to extended stay customers and the greater
community. These complimentary uses will ensure long term
viability for this development. Plymouth Pointe illustrates the
outstanding efficiency and effectiveness of CSM's many in -house
services.
CSM • 500 Washington Avenue S., Ste 3000 • Minneapolis, MN • (612) 395.7000
"CSM has developed quality
projects in Plymouth that have
added value to our community.
The professionals at CSM
understand the City's review and
approval process!
CSMCORP.net
- City Staff
City of Plymouth
OFFICE I INDUSTRIAL I RETAIL I HOTEL I RESIDENTIAL
INDUSTRIAL REDEVELOPMENT
Westgate Business Center
The Project
A three - phase, 450,000 square foot commercial
redevelopment in St. Paul's Midway Area
Challenges & Opportunities
The property's prior land owners were unsuccessful
in redeveloping the center due to extensive
environmental clean up and associated costs.
Located within an urban transportation corridor,
this site had the potential to foster the rebirth of a
struggling commercial sector.
Our Response
CSM
,M
PROPERTIES
University Avenue and Highway 280
Saint Paul, Minnesota
CSM purchased the site and established a working relationship with the St. Paul Port Authority, an
organization created through legislation to promote commerce along the Mississippi River.
CSM enlisted environmental experts to assist in the remediation of the brown field site and
maximized the density of the development resulting in five buildings.
CSM's foresight, phased development approach and financial strength brought a much - needed,
renewed energy to this commercial corridor.
Results
Westgate Business Center consists of five phases for a total exceeding 450,000 square feet of commercial
space, which created more than 300 jobs in cooperation with the Saint Paul Port Authority. In
addition to developing jobs, CSM's investment brought revitalization to this section of the St.Paul
Midway. Demonstrating their commitment to this area, CSM Corporation's located its headquarters in
Westgate more than a decade ago.The project is a key example of the positive impact CSM has on local
communities. The results speak for themselves as the Westgate Business Center was recognized with a
NAIOP Award of Excellence.
CSM • 500 Washington Avenue S., Ste 3000 • Minneapolis, MN • (612) 395.7000
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CSMCORP.net
OFFICE I INDUSTRIAL I RETAIL I HOTEL I RESIDENTIAL
CORPORATE BUILDTO SUIT
Lexington Preserve Business Park
The Project
A 120,000 square foot distribution center for Aveda
Corporation
Lexington II, a multi- tenant office /warehouse with
87,000 square feet
PTC, a 90,000 square foot build -to -suit office building
Challenges & Opportunities
CSM
PROPERTIES
Interstate 35 and Lexington Avenue
Blaine, Minnesota
Environmentally responsive Aveda Corporation contracted with CSM to build a facility that
integrated sustainable development principles.
The site was situated in a watershed district, under the control of a restrictive Comprehensive
Wetland Management Plan (CWMP).
CSM was a new developer in the area at the onset of the project, and established successful working
relationships with city officials and council members along the way.
Our Response
CSM Architecture's plan mirrored Aveda's environmental mission, which brought about one of CSM's
greenest projects to date, using sustainable water, energy, materials, and waste strategies at the site.
CSM worked closely with city officials, the watershed district's management and the Army Corp of
Engineers to gain full governmental development approval with the new CWMR Additionally, CSM
re- routed county ditches, donated two acres of wetlands and excavated 150,000 cubic yards of soil.
Results
Recognized by NAIOP with an Award of Excellence, Aveda
Corporation's distribution center is an outstanding example
of CSM's ability to integrate the needs and ideas of clients
and other vital stakeholders in every phase of a project. CSM
excels in planning, designing, and constructing buildings that
minimize impact on the natural environment from the ground
breaking through the long term.
CSM • 500 Washington Avenue S., Ste 3000 • Minneapolis, MN • (612) 395.7000
3J
"Sustainable design is part of
our company vision and mission.
Aveda and CSM worked closely
and cooperatively to develop a
leading edge sustainable design
for our new Distribution Center
leased from CSM;'
- Charles Weaver
Senior Vice President
Business Operations - Aveda
L.CSIVICORRInet,
OFFICE I INDUSTRIAL I REMIL I HOTEL I RESIDENTIAL
CORPORATE BUILD TO SUIT
Midway Corporate Office Park
The Project
A 173,000 square foot corporate build -to -suit
redevelopment of a 1950s -era industrial facility
Challenges & Opportunities
The delivery time of 13 months included lease
negotiations, building design, city approvals,
economic incentive agreements, demolition, and
CSM
PROPERTIES
construction.
Easement issues created site constraints, which
required extensive negotiations with the state of Minnesota.
Highway 280 and Energy Park Drive
Saint Paul, Minnesota
Highly focused construction management was required for the redevelopment of a brown field site
with existing 1950s -era industrial facility.
Our Response
CSM devised a plan to raze a condemned industrial facility and construct a two - story, Class A office
building keeping on schedule and within budget.
CSM worked in cooperation with the tenant, Secure Computing, their broker CB Richard Ellis and the
city of St. Paul to expedite project approvals and obtain a forgivable loan, which allowed the project
to compete with similar suburban projects.
The creativity of the CSM development team aligned well with the flexibility of Secure Computing to
ease site constraint issues.
To accommodate rapid growth and the future needs of Secure Computing, CSM added a separate
three -story office building with the addition of a connecting pedestrian link to the existing building.
Results
Midway Corporate Office Park, preeminent corporate office
project, showcases core strengths of CSM- establishing and
maintaining quality relationships with clients and communities,
utilizing maximum design creativity and managing client- specific
projects. Because of their business success and relationship with
CSM, Secure Computing signed a long -term lease for the office
park. In 2006, the Midway Corporate Office Park won the NAIOP
Award of Excellence.
CSM • 500 Washington Avenue S., Ste 3000 • Minneapolis, MN • (612) 395.7000
.J (D
"Based on our experience, we
knew that CSM had the resources,
knowledge and project team to
deliver this time sensitive Brownfield
project. CSM met the critical
timetable and exceeded our client's
expectations frorn start to finish.'
- Charles E. Caturia
J.D. - CB Richard Ellis Global Corporate
Services on Secure Computing
OFFICE I INDUSTRIAL l RETAIL I HOTEL I RESIDENTIAL CSM
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PROPERTIES
RETAIL REDEVELOPMENT
Shops at Lyndale
Retail Redevelopment
The Project
Redevelopment resulting in 240,000 square feet of
retail space in a high- traffic area of a Twin City suburb
Challenges & Opportunities
Businesses were struggling at the site before the
redevelopment, and the area experienced a decline in
tax base.
Interstate 494 and Lyndale Avenue
Richfield, Minnesota
Prior to redevelopment, the site consisted of 30 individual properties that needed to be purchased
separately.
While the site was in need of redevelopment, the number of businesses requiring relocation made
the redevelopment a controversial topic within the community.
Our Response
In the midst of a sensitive situation, CSM approached the project with a willingness to work in an
atmosphere of compromise in all.phases of construction.
CSM acquired the site, located near two of the busiest freeways in the upper Midwest, and created a
successful mix of national tenants.
CSM planned the redevelopment in two phases to allow for acquisitions of each property.
Results
The Shops at Lyndale was a complicated endeavor and one of
CSM's earliest projects in their retail portfolio. Despite the
challenges, thedevelopmentteambuilta successful retailcenter
with 240,000 square feet of retail space, which includes: The
Sports Authority, David's Bridal, Borders, PetSmart, and the
flagship Best Buystore.The Shops at Lyndale have prospered and
spurred neighboring redevelopment of multi - family housing.
CSM • 500 Washington Avenue S., Ste 3000 • Minneapolis, MN • (612) 395.7000
39
"GSM's hard work and creative
approach to real estate were
instrumental to the early success of
our company!
-Brad Anderson
CEO, Best Buy Co., Inc.
`.CSMCORRnIet'
OFFICE I INDUSTRIAL I RETAIL I HOTEL I RESIDENTIAL
RETAIL REDEVELOPMENTYJ
Westridge Market
The Project
A 245,000 square foot retail center along the highly
traveled 1 -394 freeway corridor
Challenges & Opportunities
The site previously included 64 individual properties
adjacent to a Metro Transit "Park and Ride "facility.
The previous developer experienced a series of failed
CSM
PROPERTIES
Interstate 394 and Hopkins Crossroads
Minnetonka, Minnesota
development attempts.
Located along the highly traveled 1 -394 corridor, the site was in high demand, but other developers
were unable to successfully plan and execute the project.
Our Response
CSM brought a new vision to the project. Partnering with Rottlund Homes, CSM created the right
environment by combining affordable housing, retail and senior living.
CSM worked diligently with the City of Minnetonka during an 18 -month planning & approval
process.
CSM's overall plan to develop the area required moving a church. Collaborating with the
congregation, CSM was able to relocate the church by building the congregation a new facility in
nearby Eden Prairie.
Results
Westridge Market, a 245,000 square foot retail center, is anchored by dynamic tenants such as Michael's,
Dick's Sporting Goods, Trader Joe's, Bed Bath & Beyond, Staples, and Land's End. CSM turned 64
individual properties into a cohesive retail and residential community through strategic planning,
dedication to their vision, and cooperation with city officials, a church congregation and the overall
community.
CSM • 500 Washington Avenue S., Ste 3000 • Minneapolis, MN • (612) 395.7000
OFFICE INDUSTRIAL RETAIL HOTEL RESIDENTIAL CSM
nn
PROPERTIES
[7�RiETAILL REDEVELOPMENT
_J
Shops at Plymouth Creek
The Project
A 21 0,000 square foot shopping center redevelopment
of an industrial warehouse facility
Challenges &Opportunities
The site was located on a prominent, high- traffic
corner in an area previously occupied by a vacant
heavy industrial facility which the City of Plymouth
analyzed carefully to determine the proper rezoning.
Highway 55 and Vicksburg Lane
Plymouth, Minnesota
During a three -year planning and approval process, CSM worked closely with the City of Plymouth
and the local community to ensure concerns of all parties were addressed from the project's onset.
Our Response
CSM envisioned repositioning this site for retail development.
A custom - designed Lowe's Home Improvement Center replaced the empty warehouse and anchored
the development.
CSM developed a collaborative working relationship with the City of Plymouth to obtain rezoning of
the site and to gain the trust and respect of the city.
Results
In 2006, CSM's commitment to The Shops at Plymouth
Creek project was recognized with the MSCA Star Award for
redevelopment project of the year. Since the construction
and opening of this retail project, CSM has continued a very
successful working relationship with the City ofPlymouth .The
Shops at Plymouth Creekshowcases CSM's abilityto imagine
new, innovative uses fortired spaces and to workwith project
partners over time in bringing a complex project to fruition.
CSM • 500 Washington Avenue S., Ste 3000 • Minneapolis, MN • (612) 395.7000
�A
"It was wonderful working with CSM.
They did what they said they were
going to do... I would recommend
them to anyone"
Robert Fiebig Ill, C-. I. Lowe's Companies, Inc.
.CSMCORP.net
OFFICE I INDUSTRIAL I RETAIL I HOTEL I RESIDENTIAL
OF PROJECTS _j
CSM
ne
PROPERTIES
Lexington Preserve Business Center, Blaine, MN
Arden Hills Corporate Center, Arden Hills, MN
Golden Triangle Business Center, Eden Prairie, MN
CSM • 500 Washington Avenue S., Ste 3000 • Minneapolis, MN - (612) 395.7000
LA )
Waters Business Center, Eagan, MN
:CSMCORP.net
OFFICE I INDUSTRIAL I RETAIL I HOTEL I RESIDENTIAL
OF PROJECTS
CSM
PROPERTIES
Depot Office Center, Minneapolis, MN
Midway Corporate Office Center, St. Paul, MN
Golden Triangle Business Center, Eden Prairie, MN
Waters Business Center, Eagan, MN
CSM • 500 Washington Avenue S., Ste 3000 • Minneapolis, MN • (612) 395.7000
140—k
CSMCORP.pet
OFFICE I INDUSTRIAL I RETAIL I HOTEL I RESIDENTIAL
OFFICE /INDUSTRIAL PROJECTS
Advanced United Terminal
58,344 sf
Minneapolis, MN
Airport Business Ctr
149,721 sf
Bloomington, MN
Arden Hills Business Ctr
113,565 sf
Arden Hills, MN
Arden Hills Corporate 1
33,000 sf
Arden Hills, MN
Arden Hills Corporate II
48,804 sf
Arden Hills, MN
Arden Hills Corporate III
33,000 sf
Arden Hills, MN
Arden Hills Corporate IV
51,931 sf
Arden Hills, MN
Aurora Warehouse
875,666 sf
Aurora, CO
Aveda Distribution
126,038 sf
Blaine, MN
Blue Mound Business Ctr
58,800 sf
Brookfield, WI
Boone Ave Business Ctr 1
163,982 sf
Brooklyn Park, MN
Boone Ave Business Ctr II
73,394 sf
Brooklyn Park, MN
Brookdale Office Building
52,090 sf
Brooklyn Center, MN
Brooklyn Crossing II
15,600 sf
Brooklyn Center, MN
Brooklyn Crossing III
6,000 sf
Brooklyn Center, MN
Brooklyn Crossing IV
9,798 sf
Brooklyn Center, MN
Carver Lake Business Ctr
45,469 sf
Woodbury, MN
Centre Pointe Office
12,554 sf
Roseville, MN
Centennial Tech 1
87,923 sf
Centennial, CO
Chanhassen Business Ctr 1
128,081 sf
Chanhassen, MN
Chanhassen Business Ctr II
63,950 sf
Chanhassen, MN
Chanhassen Business Ctr III
28,023 sf
Chanhassen, MN
Chanhassen Business Ctr IV
32,890 sf
Chanhassen, MN
Chaska Industrial Center
95,821 sf
Chaska, MN
Clearwater Business Ctr
89,181 sf
Minnetonka, MN
Depot Office Center
143,197 sf
Minneapolis, MN
Edenvale Business Ctr
130,479 sf
Eden Prairie, MN
Enterprise Business Ctr
36,206 sf
Minneapolis, MN
Flying Cloud
Crossing
77,271 sf
Eden Prairie, MN
Freeway Business
Center
144,723 sf
Brooklyn Center,
MN
Gateway Business
Ctr
48,278 sf
Roseville, MN
Gateway West Business Ctr 1
155,765 sf
Roseville, MN
Gateway West Business Ctr II
79,387 sf
Roseville, MN
Gilbert Tech Center
80,000 sf
Gilbert, AZ
Golden Triangle Business Ctr
153,349 sf
Eden Prairie, MN
Granada Business Ctr 1
80,000 sf
Oakdale, MN
Granada Business Ctr 11
44,000 sf
Oakdale, MN
Granada Business Ctr III
39,770 sf
Oakdale, MN
Hadley Avenue Commerce Ctr
118,096 sf
Oakdale, MN
Hamline Business Ctr
21,978 sf
Roseville, MN
Interstate Business Ctr
15,714 sf
Minneapolis, MN
CSM
PROPERTIES
Golden Triangle Business Center, Eden Prairie, MN
Interstate Distribution Ctr
143,945 sf
Burnsville, MN
Interstate Warehouse
127,521 sf
Minneapolis, MN
Kasota Business Ctr 1
195,854 sf
Minneapolis, MN
Kasota Business Ctr II
107,265 sf
Minneapolis, MN
Lake Drive Business Ctr
192,183 sf
Chanhassen, MN
Leyden Business Ctr 1
225,537 sf
Denver, CO
Leyden Business Ctr II
106,772 sf
Denver, CO
CSM • 500 Washington Avenue S., Ste 3000 • Minneapolis, MN • (612) 395.7000 • ' ' -
q-
OFFICE I INDUSTRIAL I RETAIL I HOTEL I RESIDENTIAL
OFFICE /INDUSTRIAL PROJECTS continued
Lexington Preserve
North Central Business Park I
Business Ctr 11
230,518 sf
87,748 sf
Fridley, MN
Blaine, MN
North Central Business Park 11
Lifetouch
66,115 sf
93,524 sf
Fridley, MN
Eden Prairie, MN
Old Shakopee Road
Lincoln Business Ctr
180,300 sf
16,223 sf
Bloomington, MN
Centennial, CO
Pacifica /Bryant Warehouse
Long Lake Business Ctr
292, 662 sf
23,616 sf
Denver, CO
Long Lake, MN
Park Glen Business Ctr
MN Valley Business Ctr
82,912 sf
71,236 sf
St. Louis Park, MN
Bloomington, MN
Waters VII, Eagan, MN
Midway Corporate Office Ctr 1
107,344 sf
St. Paul, MN
Midway Corporate Office Ctr II
60,126 sf
St. Paul, MN
Minnetonka Corporate Center
234,121 sf
Minnetonka, MN
Nortel -Data Park
148,834 sf
Minnetonka, MN
Patton Building
70,840 sf
Roseville, MN
Prairie Crossroads Corporate
Ctr
80,862 sf
Eden Prairie, MN
Prairie Oaks
83,013 sf
Eden Prairie, MN
Produce Distribution Center
81,000 sf
Minneapolis, MN
Progress Lasting
173,503 sf
Plymouth, MN
Riverview Industrial Ctr
92,730 sf
St. Paul, MN
Science Center Drive
124,021 sf
New Hope, MN
Shady Oak Business Ctr 1
69,600 sf
Eden Prairie, MN
Shady Oak Business Ctr II
73,971 sf
Eden Prairie, MN
Skyline Business Ctr
140,791 sf
Minneapolis, MN
SW Corporate Ctr
156,333 sf
Chanhassen, MN
SW Tech Ctr
211,793 sf
Chanhassen, MN
Tower Road Industrial Building
190,035 sf
Aurora, CO
University Industrial Park 1
47,591 sf
Minneapolis, MN
University Industrial Park II
156,371 sf
Minneapolis, MN
University Industrial Park III
242,124 sf
Minneapolis, MN
Valley Green Business Ctr
114,000 sf
Shakopee, MN
Waters Business Ctrl
65,970 sf
Eagan, MN
CSM • 500 Washington Avenue S., Ste 3000 • Minneapolis, MN • (612) 395.7000
qq
CSM
ne
PROPERTIES
xWaters Business Ctr II
73,546 sf
Eagan, MN
Waters Business Ctr III
77,282 sf
Eagan, MN
Waters Business Ctr IV
54,000 sf
Eagan, MN
Waters Business Ctr V
44,342 sf
Eagan, MN
Waters Business Ctr VI
45,472 sf
Eagan, MN
Waters Business Ctr VII
38,353 sf
Eagan, MN
Westgate Business Ctr 1
78,801 sf
St. Paul, MN
Westgate Business Ctr II
64,762 sf
St. Paul, MN
Westgate Business Ctr III
101,373 sf
St. Paul, MN
Westgate Business Ctr IV
101,520 sf
St. Paul, MN
Westgate Business Ctr V
98,200 sf
St. Paul, MN
White Bear Parkway
Business Ctr
164,479 sf
White Bear Lake, MN
Woodbury Business Center
65,419 sf
Woodbury, MN
OFFICE INDUSTRIAL RETAIL HOTEL RESIDENTIAL C S M
PROPERTIES
RETAIL PROJECTS
Century Hills Shopping Center, White Bear Lake, MN
Woodbury Marketplace, Woodbury, MN
Shops at Lyndale, Richfield, MN
Plymouth Pointe, Plymouth, MN
CSM • 500 Washington Avenue S., Ste 3000 • Minneapolis, MN • (612) 395.7000
t 4r
.CSMCORRnet
OFFICE I INDUSTRIAL I RETAIL I HOTEL I RESIDENTIAL
RETAIL PROJECTS
Best Buy- HD Webster
Groves
30,000 sf
Webster Groves, MO
Best Buy - Racine
47,000 sf
Racine, WI
Best Buy- Northridge
47,745 sf
Milwaukee, WI
Best Buy - Southridge
45,000 sf
Greenfield, WI
Blockbuster - Grand Avenue
5,500 sf
St. Paul, MN
Blockbuster - Minneapolis
6,400 sf
Minneapolis, MN
Bonaventure Shopping Ctr
84,770 sf
Minnetonka, MN
Bullwinkles
5,412 sf
Minneapolis, MN
Burnhill Plaza
Shopping Center
145,638 sf
Burnsville, MN
Century Hills Shopping Ctr
51,678 sf
White Bear Lake, MN
Denver Aurora Retail
68,017 sf
Aurora, CO
Grand Forks Plaza Shopping
22,021 sf
Grand Forks, ND
424 Hennepin
5,412 sf
Minneapolis, MN
Moline Shopping Ctr
42,507 sf
Moline, IL
Oak Park Commons
23,700 sf
Oak Park Heights, MN
Parker Landing Shopping Ctr
110,324 sf
Aurora, CO
Westridge Market Shopping Center, Minnetonka, MN
Plymouth Pointe Plaza
23,000 sf
Plymouth, MN
Rochester Shopping Ctr
32,273 sf
Rochester, MN
Rocky Mountain Shopping Ctr
75,868 sf
Westminster, CO
Shops at Lyndale 1
126,535 sf
Richfield, MN
C► ►TII
PROPERTIES
Sportmart Plaza Shopping Ctr
66,465 sf
Minnetonka, MN
St. Cloud Shopping Ctr
61,318 sf
St. Cloud, MN
Vernon Shops
22,925 sf
Edina, MN
Westridge Market Shopping Ctr
260,430 sf
Minnetonka, MN
Shops at Lyndale II Woodbury Marketplace
114,889 sf 14,523 sf
Richfield, MN Woodbury, MN
Shops At Plymouth Creek
235,000 sf
Plymouth, MN
CSM • 500 Washington Avenue S., Ste 3000 • Minneapolis, MN • (612) 395.7000 • ' ' -
4(0
OFFICE INDUSTRIAL RETAIL HOTEL RESIDENTIAL C s M
PROPERTIES
HOTEL PROJECTS
Courtyard by Marriott, Lloyd Center
Residence Inn by Marriott, Naples
The Depot Renaissance Minneapolis Hotel
The Depot Renaissance Minneapolis Hotel
CSM • 500 Washington Avenue S., Ste 3000 • Minneapolis, MN • (612) 395.7000
�q
OFFICE INDUSTRIAL RETAIL HOTEL RESIDENTIAL C S M
n,
PROPERTIES
HOTEL PROJECTS
Residence Inn by Marriott, Plymouth
Hilton Garden Inn, Scottsdale
Marriott, Milwaukee West
Residence Inn, Mesa
CSM • 500 Washington Avenue S., Ste 3000 • Minneapolis, MN • (612) 395.7000
MM
OFFICE I INDUSTRIAL I RETAIL I HOTEL I RESIDENTIAL
HOTEL PROJECTS
Country Inn & Suites by Carlson
Des Moines West
104 rooms
Clive, IA
Country Inn & Suites by Carlson
Milwaukee West
149 rooms
Brookfield, WI
Courtyard by Marriott
Minneapolis /Bloomington
203 rooms
Bloomington, MN
Courtyard by Marriott
Portland Downtown/
Lloyd Center
202 rooms
Portland, OR
Courtyard by Marriott
Portland Southeast
136 rooms
Clackamas, OR
Courtyard by Marriott
Seattle /SeaTac Area
211 rooms
Tukwila, WA
Courtyard by Marriott
Denver South/
Park Meadows Mall
156 rooms
Englewood, CO
Courtyard by Marriott
Boston /Natick
181 rooms
Natick, MA
Courtyard by Marriott
Minneapolis St.Paul /Roseville
120 rooms
Roseville, MN
Courtyard by Marriott
Woburn /Boston North
192 rooms
Woburn, MA
Homewood Suites by Hilton
Chicago /Lincolnshire
125 rooms
Lincolnshire, IL
Hilton Garden Inn
Portland /Beaverton
150 rooms
Beaverton, OR
Hilton Garden Inn
Phoenix/Scottsdale Old Town
199 rooms
Scottsdale, AZ
Marriott Milwaukee West
281 rooms
Milwaukee, WI
Marriott Minneapolis West
195 rooms
St.Louis Park, MN
The Depot Minneapolis,
A Renaissance Hotel
227 rooms
Minneapolis, MN
CSM
ne
PROPERTIES
Residence Inn by Marriott
Naples
120 rooms
Naples, FL
Residence Inn by Marriott
Phoenix /Mesa
117 rooms
Mesa, AZ
Residence Inn by Marriott
Minneapolis St.Paul /Roseville
108 rooms
Roseville, MN
Residence Inn by Marriott
Minneapolis /Bloomington
128 rooms
Bloomington, MN
CSM • 500 Washington Avenue S., Ste 3000 • Minneapolis, MN • (612) 395.7000
l
Marriott Milwaukee West
OFFICE I INDUSTRIAL I RETAIL I HOTEL I RESIDENTIAL
HOTEL PROJECTS] continued
Residence Inn by Marriott
Denver South/
Park Meadows Mall
112 rooms
Englewood, CO
Residence Inn by Marriott
Minneapolis Downtown
at The Depot
131 rooms
Minneapolis, MN
Residence Inn by Marriott
Eden Prairie
128 rooms
Eden Prairie, MN
Residence Inn by Marriott
Plymouth
119 rooms
Plymouth, MN
Residence Inn by Marriott
Portland NorthNancouver
120 rooms
Vancouver, WA
Residence Inn by Marriott
Portland South /Lake Oswego
112 rooms
Oswego, OR
SpringHill Suites by Marriott
Minneapolis St. Paul /Eagan
105 rooms
Eagan, MN
SpringHill Suites by Marriott
Minneapolis West
126 rooms
St. Louis Park, MN
SpringHill Suites by Marriott
Minneapolis /Eden Prairie
119 rooms
Eden Prairie, MN
TownePlace Suites by Marriott
Milwaukee /Brookfield
112 rooms
Brookfield, WI
TownePlace Suites by Marriott
Minneapolis /Eden Prairie
103 rooms
Eden Prairie, MN
TownePlace Suites by Marriott
Minneapolis St. Paul /Eagan
94 rooms
Eagan, MN
TownePlace Suites by Marriott
Detroit /Livonia
94 rooms
Livonia, MI 48152
TownePlace Suites by Marriott
Minneapolis Downtown
131 rooms
Minneapolis, MN
TownePlace Suites by Marriott
Detroit /Dearborn
148 rooms
Dearborn, MI
Marriott Milwaukee West
CSM • 500 Washington Avenue S., Ste 3000 • Minneapolis, MN • (612) 395.7000
CSM
PROPERTIES
TownePlace Suites Detroit/
Sterling Heights
95 rooms
Sterling Heights, MI
TownePlace Suites
Minneapolis West
106 rooms
St. Louis Park, MN
Marriott ExecuStay
Minneapolis /St. Paul
161 units /month
Minneapolis, MN
CSMCORRnet
OFFICE I INDUSTRIAL I RETAIL I HOTEL 1 RESIDENTIAL
LRESIDENTIAL PROJECTS
Minnetonka Hills Apartments, Minnetonka, MN
The Fountains Apartments, West Des Moines, IA
CSM
PROPERTIES
Bass Lake Hills Townhomes, Plymouth, MN
CSM • 500 Washington Avenue S., Ste 3000 • Minneapolis, MN • (612) 395.7000
Mequon Trail Townhomes, Mequon, WI
CSMCORRnet
OFFICE I INDUSTRIAL I RETAIL I HOTEL I RESIDENTIAL
RESIDENTIAL PROJECTS
Bass Lake Hills Townhomes
284 units
Plymouth, MN
Birch Lake Townhomes
114 units
White Bear Lake, MN
Candlewood Apartments
168 units
Rapid City, SD
Coronado Apartments
510 units
Denver, CO
Courtly ParkTownhomes
76 units
Woodbury, MN
Country Bluff Apartments
108 units
Rapid City, SD
Creekside Apartments
160 units
Clackamas, OR
Crown Ridge Apartments
64 units
Minnetonka, MN
Eastgate Apartments
64 units
Oakdale, MN
Fountain Place Apartments
498 units
Eden Prairie, MN
Gatehouse Apartments
164 units
Kansas City, MO
Granada Lakes Townhomes
68 units
Oakdale, MN
Independence Towers
Apartments
123 units
Independence, MO
Lancaster Village Apartments
160 units
Plymouth, MN
Laredo House Apartments
100 units
Aurora, CO
Mequon Trail Townhomes
246 units
Mequon, WI
Mill City Apartments
43 units
Minneapolis, MN
Minnetonka Hills Apartments
241 units
Minnetonka, MN
Mountainview Apartments
144 units
Gillette, WY
North Village Apartments
150 units
Kansas City, MO
Park Place Apartments
72 units
Fargo, ND
Quail Creek Apartments
65 units
Kansas City, KS
Rivergreens Apartments
224 units
Gladstone, OR
Shoreview Apartments
56 units
Spring Park, MN
Squaw Valley Apartments
168 units
Gillette, WY
The Fountains Apartments
204 units
West Des Moines, IA
The Meadow Townhomes
144 units
Hermantown, MN
CSM
ne
PROPERTIES
The Pines of Burnsville
216 units
Burnsville, MN
Trailway Pond Apartments
240 units
Burnsville, MN
Valley Creek Apartments
402 units
Woodbury, MN
Westwind Apartments
186 units
St. Louis Park, MN
White Bear Wood
300 units
White Bear Lake, MN
Woodlane Place Townhomes
26 units
Woodbury, MN
Creekside Apartments, Clackamas, OR
CSM • 500 Washington Avenue S., Ste 3000 • Minneapolis, MN • (612) 395.7000 • • ' -
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Dougherty, Molenda, Solfest, Hills & Bauer P.A.
DO U HERTY MOLENDA
r Attorneys I Advisors
MEMORANDUM
To: Jon Hohenstein, Community Development Director
From: Mike Dougherty
Date: 10/31/2013
Re: Finance Committee Discussion
7300 west 1.4 7th Street
Suite 600
Apple Valley, MN 55124
(952) 432 -31.36 Phone
(952) 432 -3780 Fax
www.dmshh.com
This Memo is in response to your inquiry regarding the extent that the members of the Finance
Committee may have discussions with CSM in light of the pending applications submitted by
CSM for land use approvals. The Finance Committee is charged with conducting a preliminary
review of CSM's request for public financing assistance in the redevelopment of the Lockheed
Martin site.
As in any review or comment on a land use proposal or application that may come before the
City Council or the Economic Development Authority, the members of the Finance Committee
cannot state how the member may vote on the issue prior to the matter being heard by the full
body. This caution stems from the fact that the court has found that often times the City Council
acts in a quasi-judicial manner when making decisions affecting an applicants' property rights.
Due process requires that a fair and impartial public hearing be held.
Unlike its land use requests, CSM's application for public financing (i.e. tax abatement) does not
affect its property rights. CSM's application involves a purely legislative function of the City
and in such role, the members of the Council may seek out and /or comment upon any
information that is related to the legislative function (whether to grant tax abatement).
While the line is not necessarily bright, it is our opinion that the members of the Finance
Committee may inquire about or comment upon any aspect of CSM's applications that may be
directly or indirectly affected as a result of potential tax abatement. Such statements may include
comments on the public policy of tax abatement in general and to what degree of public benefit
is derived by its use in connection with CSM's proposal. The overall caveat being that the
members of the Finance Committee continue to refrain from articulating how they would vote on
the pending land use applications.
If you have any questions, please give me a call. Otherwise, I will be attending the Finance
Committee meeting and will be able to answer any questions.
cc: Dave Osberg
Mike Maguire
February 10, 2011
Mayor
Paul Bakken
Tom Green and Mary Pat Barr
Cyndee Fields
Lockheed Martin
Gary Hansen
100 S. Charles Street, Suite 1400
Meg Tilley
Baltimore, MD 21201
Council Members
Dear Tom and Mary Pat,
Thomas Hedges
City Administrator
Thank you again for the telephone update regarding Lockheed Martin's revised approach to
receiving and considering proposals for the sale and reuse of the company's property at the
intersection of Pilot Knob and Ya>ilcee Doodle Roads in Eagan. It is exciting to know that
the property has attracted so much interest so soon, When we first spoke, we had
understood you intended to list the property with a broker to test the market in the property's
current configuration, Prospective buyers could then approach the City to discuss or
Municipal Center
propose reuse and /or redevelopment alternatives prior to making formal offers to purchase,
3830 Pilot Knob Road
Our current understanding is that you are receiving multiple offers for direct purchase and
Eagan, MN 55122 -1810
that you expect that the sale could occur prior to the submittal of requests for zoning or
651.675,5000 phone
development changes, even though the prospective buyer may be basing its offer on those
651,675,5012 fax
assumptions.
651.454.8535 TDD
We have shared that it has been our experience that most prospective owners and developers
Maintenance Facility
who intend to propose changes requiring City approvals make contingent purchase offers,
3501 Coachman Point
You have shared that it would be your preference to complete the sale without
Eagan, MN 55122
contingencies, so the company will not be involved in any entitlement considerations.
651,675,5300 phone
Understanding that, we need to put in writing the expectations we discussed last week and
651,675,5360 fax
refer to the City's Comprehensive Guide Plan policies for the Central Commons Area and
651.454.8535 TDD
ask that you forward this information to the prospective buyers, so they do not make
proposals on the basis of inaccurate or mistaken perceptions.
www,oityofeagan.00m
0 The Lockheed Martin property is currently guided Major Office and zoned Research
and Development, The City of Eagan and State of Minnesota have valued the
presence of high quality, primary sector jobs at this location for forty -five years and
we will work closely and cooperatively with an owner, business or businesses who
would continue to use the site in the same way, For that reason, a buyer who intends
The Lone Oak Tree
to reuse or market the property as a corporate facility or campus within those
The symbol of
parameters would be able to do so provided any modifications to the site conform to
strength and growth
the related zoning, subdivision and land use standards,
In our community.
7t3
t..
• A buyer who intends to propose other uses of the property would }need to apply for
both a Comprehensive Guide Plan Amendment and a rezoning of the site, neither of
which may be assumed to be approved prior to the submittal and consideration of a
formal application, In order to be successful, such an application would not only
need to conform to the City Council's vision for the area, but substantially exceed
ordinary expectations for form and function of new development.
• Lockheed Martin has indicated its desire not to be part of such an entitlement
process. If the company were to modify that intention, the City may be open to an
alternative concept plan review preceding the submittal of formal applications, but
that option would not be available to a subsequent owner individually,
• While infill or redevelopment of the Lockheed Martin site would require a Plan
Amendment and rezoning noted above, the Comprehensive Plan does define policies
for infill and redevelopment within the City's Central Commons Area. For a plan
for redevelopment or infill other than office uses to be part of an amendment and
rezoning application that the City might consider, it will need to;
• "Support dense, mixed -use development with a range of retail, office,
services, medium /high - density residential, employment and public spaces,"
While the 50 acre Lockheed Martin site may not be large enough to
incorporate all of those elements, it is large enough to support the kind of
mixed use development contemplated by the Comprehensive Plan and a
proposal that would only provide for one or two of those elements would not
be consistent with the Comprehensive Plan.
• "Require high- quality design of sites and buildings that creates a cohesive
identity for the Central Commons Area and offers flexibility that can respond
to change in uses over time, Strive for pedestrian -scale buildings that are
two to four stories in height." The Comprehensive Plan creates an
expectation for vertical development throughout the Central Commons Area.
Nowhere would the need to meet that expectation be greater than at its major
intersection.
• "Strategically place buildings toward the street with parking behind to help
create clearly defined streets and the public realm." and "Utilize a shared or
district parking approach to minimize the amount of spaces and size of
parking lots. Where possible use structured or underground parking," The
property is uniquely situated along two major roadways and Central
Parkway. The fifty acre site would permit such a design scheme in either an
infill or redevelopment approach. The current building already has an
underground parking element.
• "Capitalize on opportunities to create and enhance pedestrian connections,"
The Comprehensive Plan is supportive of strong integration of pedestrian and
transit connectedness, particularly in the context of the MVTA Transit
Station, Central Park, the Ring Road and the City's roadside transportation'
trail system, The Comprehensive Plan is not supportive of relying only on
traditional, suburban single use plans or design schemes.
• Address other Comprehensive Plan policies for the Central Commons Area,
• The Pilot Knob and Yankee Doodle Road intersection is one of the most highly
traveled, highest visibility locations within the community and the City understands
its attractiveness to prospective buyers who may have a number of different visions
for it, Because the site is being made available as a result of a company decision to
close the facility and relocate operations outside of Eagan, it would not be
appropriate for the City to provide public financing assistance for the redevelopment
of the property, That would unfairly subsidize the relocation at the expense of the
City's remaining taxpayers. The price of the property will need to be appropriate to
permit the buyer to reuse the property in a way that will be acceptable to the City as
well as economically feasible for the new owner,
This information is being provided, not to diminish the process you are pursuing, but to
provide clarity and transparency to the process for the company and the prospective buyers.
Please forward this information to them or provide us with a list of proposer contacts, so we
can forward it directly to them,
Working together, we are confident we can help Lockheed Martin and a future owner of the
property position it for the future to continue to be the strong, positive anchor it has been for
the community to date, Please contact me if you have any questions regarding this
information or our request to distribute it further,
Sincerely,
Jon Hohenstein
Director of Community Development
Cc: Torn Hedges, City Administrator
MINUTES
SPECIAL CITY COUNCIL MEETING
TUESDAY, FEBRUARY 12, 2013
5:30 P.M.
EAGAN ROOM — EAGAN MUNICIPAL CENTER
City Council members present: Mayor Maguire, Councilmembers Fields and Tilley. Councilmember
Bakken and Hansen were absent.
City Staff present: Assistant City Administrator Miller, Director of Community Development Hohenstein,
and City Attorney Dougherty.
I. ROLL CALL AND ADOPTION OF THE AGENDA
Councilmember Tilley moved, Councilmember Fields seconded a motion to adopt the agenda as
presented. Aye:3 Nay:0
II. VISITORS TO BE HEARD
There were no visitors to be heard.
III. CENTRAL COMMONS AREA SMALL AREA STUDY — LOCKHEED MARTIN PROPERTY
Director of Community Development Hohenstein introduced the item noting on December 4, 2012, the
Council authorized Hoisington Koegler Group (HKG) to prepare a Small Area Study to determine the best
future uses for the site. As part of its preparation, HKG prepared of the City's Comprehensive Guide
Plan update, HKG prepared several concept examples of ways in which existing developments within the
area might be intensified or modified if the opportunity arose. No plan was prepared for the Lockheed
Martin parcel as part of the update, because there was no expectation at the time that the company
would sell the property.
Hohenstein noted in preparing the Small Area study, HKG considered not only the City's Comprehensive
Guide Plan Central Commons Area Special Area Plan, but also background from the analysis of the
original application by the owner, CSM, for the redevelopment of the property. Hohenstein also noted
one of the assumptions that HKG used in all of their concept scenarios is a single Pilot Knob access to the
property on the west as was identified in the County Pilot Knob Road Corridor study.
Bryan Harjes with Hoisington Koegler Group gave a presentation on the Small Area Planning Study —
Lockheed Martin site, presenting a number of alternative site concepts to help identify priorities for the
property.
CMS Corporation Representative Tom Palmquist, addressed the Council noting he appreciated their
feedback. Palmquist noted CSM is committed to moving forward with developing the property and
responded to the different concepts presented.
Director of Community Development Hohenstein noted the list of questions in the Council packet are
based on the policies listed in the comprehensive guide are intended to guide the Councils discussion.
Special City Council Minutes
February 12, 2013
Page 2
The Council responded to the questions noting their preference for a development of the site to be
pedestrian friendly and with a mix of uses that is well integrated with the surrounding community.
Councilmembers Fields and Tilley also agreed it was important to avoid a sea of asphalt, and cultivate a
diversity of forms on the property by including buildings of varying heights. The Council said they place
a high priority on the human scale policies including pedestrian orientation and public gathering spaces.
Council had no expectation as to the maximum size /footprint of individual buildings including single
story and multi- story, leaving that up to the developer, although it was noted that there would be
concern if there were more than one large individual anchor business. The Council agreed that inclusion
of one or more public streets within the development would be desirable and feel it is important to
appropriately screen service and loading areas from major roadways. The Council was also in favor of
structured or underground parking as a means of reducing the parking fields (of asphalt) in the
development.
There was no other business to be heard.
IV. OTHER BUSINESS
VI. ADJOURNMENT
Councilmember Tilley moved, Councilmember Fields seconded a motion to adjourn at 7:45 p.m.
Aye:3 Nay:O
Date
Mayor
Clerk
Memo
T: Jon Hohenstein, City of Eagan
From: Rebecca Kurtz and Mark Ruff, Ehlers
[date,: October 3, 2013
Subject: Abatement Summary and Options for the Central Area
In response to CSM Eagan's application for business assistance for redeveloping the former
Lockeed Martin site, we have provided a summary of tax abatement and updated two scenarios
for providing abatement assistance for the Central Area project.
Tax Abatement
Tax abatement is a financing tool that allows individual taxing entities to capture and use all or a
portion of its local property tax revenues within a defined geographic area to finance a specified
project or improvement. It allows each major taxing jurisdiction (city, county and school district)
to choose to contribute its share of the taxes and limit the abatement in any manner it determines
appropriate. In practice it is a rebate rather than an exemption from paying taxes.
Many communities use abatement in a way similar to tax increment, so the property continues to
pay its taxes in full; the community continues to receive the taxes currently generated; and, the
increase in taxes after development is directed to a specific project.
Tax abatement is a more flexible tool than tax increment and can be used to finance development
and redevelopment projects, public infrastructure, and public facilities. In addition, while not
widely used, entities have the ability to abate existing taxes.
Teri and Limit
If all three taxing entities participate in abatement, the maximum term is 15 years. However, if
only one or two entities participate, the term is a maximum of 20 years. In any one year the
TOTAL amount an entity may abate may not exceed the greater of 10 percent of the entity's net
tax capacity or $200,000. The 2013 net tax capacity for Eagan is 64,875,992; therefore, the City
may abate up to $6,487,599 annually.
Abatements are special tax levies. The amount of the abatement must be added to the total levy
for the current year, and must be included in the proposed levy for Truth in Taxation as well as
the certified levy.
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Minnesota phone 651-697-8500 3060 Genre Pointe Drive
� - LEADERS rN rua�rt riNnnI >i O f o% also in Wisconsin and Illinois fix 651-697-8555 Roseville, MN 55113 1'122
toll froo 800- 552-1171
Process to Establish Ab t ment
After identifying the details of the abatement -- including the amount of assistance, term and the
parcels for abatement -- a public hearing with at least a 10 day published notice must be held by
each entity granting the abatement. The entity is then required to adopt a resolution approving
the abatement. The adopting resolution must include the following: (1) Term of the abatement;
(2) Statement of public benefit expected to result from the abatement; (3) Required findings; and
(4) Schedule of repayment of deferred taxes (if applicable).
Abatement Options
Based on CSM Eagan's application, we have drafted two scenarios for abatement assistance —
fiscal disparities from within the district and from outside the district. With each of the scenarios
we have used the following assumptions:
■ Tax abatement district established in 2014
■ Development completed in one phase in 2015 (18 months after establishment of the
district)
■ Completed market value of $105,000,000, based on developer's application and
discussions on 9/19/2013
■ City only abatement of the increase in taxes
■ Term of 20 years
• No inflation
• Present value rate of 5.5%
The following chart outlines the estimated abatement:
Please review the information, and let us know if you have questions. Thanks.
LQ �
Annual
Assistance
Total
Assistance
Present Value
of Assistance
Fiscal Disparities within District
$440,526
$8,810,522
$4,630,786
Fiscal Disparities outside of District
$734,064
$14,681,262
$7,716,431
Please review the information, and let us know if you have questions. Thanks.
LQ �
CITY OF EAGAN
BUSINESS ASSISTANCE POLICY
Adopted December 19, 2006
Updated August 21, 2012
1. PURPOSE
1,01 The purpose of this policy is to provide a guideline for the City of Eagan (City Council or EDA
Board) to offer assistance for commercial and housing development and redevelopment projects.
The Business Subsidies Statutes are codified as Minnesota Statutes 116J.993 through 116J.995.
Minnesota Statutes 116J, 993, Subd. 3 defines a Business Subsidy as "a state or local government
agency grant, contribution of personal property, real property, infrastructure, the principal amount
of a loan at rates below those commercially available to the recipient, any reduction or deferral of
any tax or any fee, any guarantee of any payment under any loan, lease, or other obligation, or
any preferential use of government facilities given to a business." Appendix A lists forms of
financial assistance that are not a business subsidy. This policy shall be used as a guide in
processing and reviewing applications requesting business assistance.
1.02 The City shall have the option of amending or waiving sections of this policy when determined
necessary or appropriate. Minnesota Statutes 116J 994, Subd 2, allows the City to deviate from
its criteria by documenting in writing the reason for the deviation and attaching a copy of the
document to its next annual report to the Department of Employment and Economic
Development,
2. STATUTORY LIMITATIONS
2.01 In accordance with the City of Eagan's Business Assistance Policy, assistance requests must
comply with applicable State Statutes, including Minnesota Statutes I I6J.993 through I I6J.995,
3. GOALS
3.01 As a matter of adopted policy, the City of Eagan will consider using a business assistance tool to
assist private developments only in those circumstances in which the proposed private projects
show a demonstrated financing gap and meet one of more of the goals, as identified in the City of
Eagan's Comprehensive Plan for Economic Development dated April 6, 2010.
4, BUSINESS ASSISTANCE PROJECT APPROVAL CRITERIA
4.01 All new projects approved by the City of Eagan should meet the following mandatory minimum
approval criteria. However, it should not be presumed that a project meeting these criteria will
automatically be approved. Meeting these criteria creates no contractual rights on the part of any
potential developer.
A. The assistance shall be provided within applicable state legislative restrictions, State
Auditor interpretation, debt limit guidelines, and other appropriate financial requirements
and policies.
B, The project should meet one or more of the goals referenced in the City of Eagan's
Comprehensive Plan for Economic Development,
1-
C. The project must be in accord with the Comprehensive Plan and Zoning Ordinances, or
required changes to the Comprehensive Plan and Zoning Ordinances must be under
active consideration by the City at the time of approval.
D. The assistance will not be provided to projects that have the financial feasibility to
proceed without the benefit of the assistance. Assistance will not be provided solely to
broaden a developer's profit margins on a project. Prior to consideration of a business
assistance request, the City may undertake an independent underwriting of the project to
help ensure that the request for assistance is valid,
E, Prior to approval of business assistance, the developer shall provide any required market
and financial feasibility studies, appraisals, soil boring, information provided to private
lenders for the project, and other information or data that the City or its financial
consultants may require in order to proceed with an independent underwriting,
F. Any developer requesting business assistance should be able to demonstrate past
successful general development capability as well as specific capability in the type and
size of development proposed,
G. The developer must retain ownership of the project at least long enough to complete it, to
stabilize its occupancy, to establish the project management, and to initiate repayment of
the business assistance.
H. The level of business assistance funding should be reduced to the lowest possible level
and least amount of time by maximizing the use of private debt and equity financing first,
and then using other funding sources or income producing vehicles that can be structured
into the project financing, prior to using additional business assistance funding.
5. BUSINESS ASSISTANCE PROJECT EVALUATION CRITERIA
5.01 If a business meets the criteria in Section 4 and is eligible for assistance, the following criteria
will be used to determine the amount of assistance and type of assistance that may be provided.
All projects will be evaluated by the EDA and Eagan City Council on the following criteria for
comparison with other proposed business assistance projects reviewed by the City, and for
comparison with other subsidy standards (where appropriate). It is realized that changes in local
markets, costs of construction, and interest rates may cause changes in the amounts of business
assistance subsidies that a given project may require at any given time, In applying the criteria to
a specific project, the following will apply;
A. The City may consider the requirements of any other business subsidy received, or to be
received, from a grantor other than the City,
B. If the business subsidy is a guaranty, the amount of the business subsidy may be valued at
the principal amount of the guaranteed payment obligation,
C. If the business subsidy is real or personal property, the amount of the subsidy will be the
fair market value of the property as determined by the City.
D. If the business subsidy is received over time, the City may value the subsidy as it
determines is fair and reasonable under the circumstances,
PA
As used herein, `Benefit Date," means the date the business subsidy is received, If the
business subsidy involves the purchase, lease, or donation of physical equipment, then
ttFie benefit crate occurs wTiee tie recipient puts the equipment into service. If the business
subsidy is for improvements to property, then the Benefit Date refers to the earliest date
of either when the improvements are finished for the entire project or when a business
occupies the property.
E. All business assistance projects will need to meet a "Reasonable Rate of Return."
Assistance will not be used unless the need for the City's economic participation is
sufficient that, without that assistance the project could not proceed in the manner as
proposed. The Reasonable Rate of Return will be based on market standards at the time
of the application for assistance,
F, Business assistance will not be used when the developer's credentials, in the sole
judgment of the City, are inadequate due to past track record relating to: completion of
projects, general reputation and /or bankruptcy, or other problems or issues considered
relevant by the City,
G. Business assistance funding should not be provided to those projects that fail to meet
good public policy criteria as determined by the Council, including: poor project quality;
projects that are not in accord with the comprehensive plan, zoning, redevelopment plans,
and city policies; projects that provide no significant improvement to surrounding land
uses, the neighborhood, and /or the City; projects that do not have significant new, or
retained, employment; projects that do not meet financial feasibility criteria established
by the City; and projects that do not provide the highest and best desired use for the
property,
H. All projects receiving business assistance under the criteria listed in Minnesota Statutes
116J.993, Subd. 3 must meet the job and wage goals described below, Minnesota Statutes
116J,994, Subd, 2 allows the City to deviate from its criteria by documenting in writing
the reason for the deviation and attaching a copy of the document to its next annual report
to the Department of Employment and Economic Development,
1. Except as described in 2 and 3, a business subsidy must result in the creation or
retention of jobs, which will pay at least 80% of the Median Income for Dakota
County (base jobs), In addition, consideration will also be given to the creation or
retention of jobs, which will pay 100% of Median Income for Dakota County
(head of household jobs). The Median Income for the County is annually defined
by the Minnesota Housing Finance Agency, (In 2012, 100% of the median is
$83,900 and 80% of median is $67,100.). Wage goals will be set forth
specifically in the business subsidy agreement. Where job creation is one of the
public purposes of the business subsidy, the subsidy may be up to $10,000 per
baso job retained or created and may be up to $20,000 per head of household job
retained or created. The amount of assistance available to a project will be
limited by the amount of proceeds that TIF or other financing tools may support,
2, Job creation or retention is not required for businesses subsidies as long as the
grantor identifies an alternate public purpose in addition to tax base increase, If
after a public hearing /council consideration of the alternate public purpose(s)
proposed, the creation or retention of jobs is determined not to be a goal, the
wage and job goals may be set at zero,
C0 �
3. _ In lieu of job creation or retention, other measurable, specific, and tangible go_ als
sliall -ie estabi ed7 xamples of tangible goals may include redevelopment, or
pollution or soil remediation.
I. Business assistance will normally be used for projects that address the following land use
issues: (1) more compatible with the City's Comprehensive Plan than other permitted
uses for property; (2) located on property which needs but is not likely to be developed or
redeveloped because of blight or other adverse conditions of the property; and /or include
design and /or amenity features not otherwise required by law.
J. Business assistance will be evaluated on the project's impact on existing and fixture
public investment: (1) whether and to what extent the project will utilize existent public
infrastructure capacity and the extent it requires additional publicly funded infrastructure
investments; (2) arrangements for the City to receive a direct monetary return on its
investment in the project.
K. Business assistance will normally be used for projects that demonstrate to the satisfaction
of the City adequate financing for the project is available and that the project will be
completed in a timely fashion.
L. Business assistance from the City must satisfy all requirements of Minnesota Statutes
116J.993 through 116J.995.
5.02 Some criteria, by their very nature, must remain subjective. However, wherever possible
"benchmark" criteria have been established for review purposes. The fact that a given proposal
meets one or more "benchmark" criteria does not mean that it is entitled to funding under this
policy, but rather that the City is in a position to proceed with evaluations of (and comparisons
between) various business assistance proposals, using uniform standards whenever possible.
Mike Maguire
Mayor
Date
4
CITY OF EAGAN
PRE - APPLICATION
BUSINESS AS Imo' E FINANCING -
Legal name of applicant:
Address:
Telephone number:
Name of contact person:
REQUESTED INFORMATION
Addendum shall be attached hereto addressing in detail the following:
1. A map showing the exact boundaries of proposed development,
2. Give a general description of the project including size and location of building(s); business
type or use; traffic information including parking, projected vehicle counts and traffic flow;
timing of the project; estimated market value following completion.
3. The existing Comprehensive Guide Plan Land Use designation and zoning of the property,
Include a statement as to how the proposed development will conform to the land use
designation and how the property will be zoned,
4. A statement identifying how the assistance will be used and why it is necessary to undertake
the project.
S. A statement identifying the public benefits of the proposal including estimated increase in
property valuation, new jobs to be created, hourly wages and other community assets.
6. A written description of the developer's business, principals, history and past projects
I understand the Pre- Application is a tool through which the City will make an initial determination as to
whether public financing assistance might be considered for the project, If so, I would intend to prepare
and submit a formal application for business financing assistance.
SIGNATURE
Applicant's Signature:
Date:
CITY OF EAGAN
_ APPLICATION
BUSINESS ASSISTANCE FINANCING
GENERAL INFORMATION
Business Name:
Address:
Type (partnership, etc,):
Authorized Representative:
Description of Business:
Legal Counsel:
Address:
FINANCIAL BACKGROUND
1, Have you ever filed for bankruptcy?
2, Have you ever defaulted on a loan conunitment?
3, Have you filed for conventional financing for this project?
4, List financial references:
a)
b)
C)
6
(01
Date:
Phone:
Phone:
5. Have you ever used Business Assistance Financing before?
If yes, what, where and when?
PROJECT INFORMATION
1. Location of proposed project:
2. Amount of business assistance requested:
3. Need for business assistance:
4. Present ownership of site:
5. Number of permanent jobs created as a result of project:
6. Estimated annual sales: Present:
7. Market value of project following completion:
8. Anticipated start date:
FINANCIAL INFORMATION
1, Estimated project related costs:
a) Land acquisition
b) Site development
c) Building cost
d) Equipment
e) Architectural /engineering fee
f) Legal fees
g) Off -site development costs
TOTAL:
7
Future:
Completion date:
2. Source of financing:
a) Private financing institution
b) Requested public assistant funds
c) Other public funds
d) Developer equity
TOTAL:
I am submitting the business financing assistance application and related support documentation for the
purposes of requesting consideration of public financial support of my project. I understand that the
application fee is non - refundable and that the escrow deposit will be used for City staff and consultant
costs associated with the review of this application. The balance of the escrow may be returned if the
costs of review are less than the original deposit. The escrow may be partially refundable if the request
for assistance is withdrawn. Refunds will be made at the discretion of the City Council and be based on
the costs incurred by the City prior to the withdrawal of the request for assistance. If the initial application
escrow is insufficient to cover all City costs of review, I will be responsible for additional deposits.
SIGNATURE
Applicant's Signature:
Date:
PLEASE INCLUDE:
1. Preliminary financial commitment from bank.
2. Plans and drawing of project.
3. Background material of company.
4. Pro Forma analysis.
5. Financial statements.
6. Statement of property ownership or control.
7. Payment of application fee of $1,000
8. Escrow payment $10,000 and Escrow Agreement
8
M_#
APPENDIX A
The Business Subsidies Statutes specifically exclude 22 items from the definition, The following are NOT
business subsidies;
• A business subsidy of less than $150,000;
• Assistance that is generally available to all businesses or to a general class of similar businesses,
such as a line of business, size, location, or similar general criteria;
• Public improvements to buildings or lands owned by the state or local government that serve a
public purpose and do not principally benefit a single business or defined group of businesses at
the time the improvements are made;
• Redevelopment property polluted by contaminants as defined in M.S. Section 116J552, Subd, 3;
• Assistance provided for the sole purpose of renovating old or decaying building stock or bringing
it up to code and assistance provided for designated historic preservation districts, provided that
the assistance is equal to or less than 50% of the total cost;
• Assistance to provide job readiness and training services if the sole purpose of the assistance is to
provide those services;
• Assistance for housing;
• Assistance for pollution control or abatement, including assistance for a tax increment financing
hazardous substance sub - district as defined under M.S. Section 469,174, Subd, 23;
• Assistance for energy conservation;
• Tax reductions resulting from conformity with federal tax law;
• Workers' compensation and unemployment compensation;
• Benefits derived from regulation;
• Indirect benefits derived from assistance to educational institutions;
• Funds from bonds allocated under chapter 474A, bonds issued to refund outstanding bonds, and
bonds issued for the benefit of an organization described in section 501 (0) (3) of the Internal
Revenue Code of 1986, as amended through December 31, 1999;
• Assistance for a collaboration between a Minnesota higher education institution and a business;
• Assistance for a tax increment financing soils condition district as defined under MS, Section
469,174, Subd, 19;
• Redevelopment when the recipient's investment in the purchase of the site and in site preparation
is 70 percent or more of the assessor's current year's estimated market value;
• General changes in tax increment financing law and other general tax law changes of a
principally technical nature;
• Federal assistance until the assistance has been repaid to, and reinvested by, the state or local
government agency;
• Funds from dock and wharf bonds issued by a seaway port authority;
• Business loans and loan guarantees of $150,000 or less; and
• Federal loan funds provided through the United States Department of Commerce, Economic
Development Administration,
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