04-27-11 Council Minutes - Laserfiche WebLink

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MINUTES CITY COUNCIL APRIL 27, 2011 he could support the City's continued involvement in the financing of this property. The City Administrator reported that the Loan Agreement with Graba Properties calls for an additional $100,000 in financing for the build -out of space for Neato Scan. The Administrator indicated that the property owner could move the thrift store into the building, but without Neato Scan the owner would be in default under the Loan Agreement. The options would be for the City to amend the Loan Agreement, the property owner to take out the City's financing, or the property owner to honor the agreement and bring Neato Scan into the building. Bob Wagner, Graba Properties, indicated that situation has changed as one of the Neato Scan partners is out of the country indefinitely. Wagner reported that his attorney would be contacting the City Administrator tomorrow to explain the situation. Wagner reported that if the City insists that Neato Scan must move to 3225 Country Drive, that will be done. However, he has a thrift store interested in 7,000 square feet and a current tenant, Athlete Lab, wants another 1,500 square feet. This would take up the remaining vacant space in the building. Wagner explained that he offices in the building and could give up his space for Neato Scan. Wagner reported that he has 2,500 square feet of space, and Neato Scan currently has 800 square feet in his Oakdale building. The 2,500 square feet would be more than Neato Scan needs. The City Administrator reported that the contract with Graba Properties says that Neato Scan will lease 3,826 square feet of property. Wagner reported that Neato Scan would pay the same rent for the 2,500 square feet as they would for the 3,826 square feet. Wagner pointed out that the thrift store and Athlete Lab expansion makes the building healthy and strong. He pointed out that Athlete Lab is growing and needs additional space. If he cannot provide it, they will move from the property. Blesener pointed out that the City got involved in the project because Neato Scan was a growing business that would bring jobs to the community. The City Administrator agreed, and indicated that Neato Scan was the impetus of the financing program that the City put in place. He noted that due to the economy banks were not financing build -out expenses, and given the potential for growth and job generation by Neato Scan, the City used revised TIF Law to provide build -out financing to Graba Properties. The Administrator pointed out that if Neato Scan does not move to this building, the current loan documents need to be changed. 7