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CITY OF ARDEN HILLS MEMORANDUM DATE: January 15, 1997 TO: Economic Development Committee FROM: Kevin Ringwald, Community Development Director SUBJECT: Monthly Report 1. Cardiac Pacemakers Inc. The City Council on January 2, 1997 authorized the City Administrator to execute the loan agreement with CPI which is required as part of the $300,000 grant(forgivable loan) from the State of Minnesota. CPI received a proposal from Governor Arne Carlson on August 21, 1995 stating that the City will apply for a$500,000 grant from the State of Minnesota. The City received a letter from the Governor August 12, 1996 informing the City that it had received a $300,000 grant from the State of Minnesota to help support the consolidation and expansion of the CPI facilities in Arden Hills. As a part of this grant, the State required the City to provide a forgivable loan to CPI. The terms of the forgivable loan are three • (3) percent for five years with 50 percent of the loan being forgiven on August 12, 1999 if CPI has retained 540 jobs and has created 70 jobs. The remainder of the loan will be forgiven on August 12, 2001 if CPI has continued to retain the 540 jobs and 70 jobs previously created. The City on January 6, 1997 received an application from CPI to construct an approximately 40,000 square foot addition(two floors @ 20,000 sq. ft./floor) to one of their existing buildings (Building E). The building addition will enhance the research and development potential of CPI. Additionally, CPI currently estimates that the addition will add 200 new highly paid scientists to their staff. Therefore, Staff is pursuing the second part of this grant, which is $200,000. Additionally, the Staff will be requesting an additional $100,000 from the State to offer to CPI as a low interest loan. The repayment of the loan would provide the City $100,000 to use a revolving loan fund to assist other business expansions, retentions, or relocations within the City. 2. Gateway Business District. The Staff has been working with Welsh Companies on Phase I of their Arden Hills Commerce Center. Currently, Staff anticipates that the construction of Phase will start in February or March of 1997. Additionally, Staff has been working with Welsh Companies on advancing the Phase II building (approximately 110,000 square feet on the Pentair property) and starting discussions on the Phase III building (approximately 110,000 square feet on the City and Zafke properties). To that end, the Staff anticipates that Welsh Companies will submit the Phase II building for • approval in February of 1997, so that construction can start in April or May of 1997.