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City ofRoseville Community Development Department MEMO August 17, 1994 CONFIDENTIAL MEMO TO: Steve Sarkozy, City Manager FROM: Dennis Welsch, Community Development Director RE: Computype Space Needs Yesterday, I toured the Computype facility at 2785 W. County Road C with Rick Huntsinger, Chief Operations Officer (633~0633) and their real estate consultant, Tom Hauschild (342-2200). The purpose of the meeting was to better understand Computype's space needs and organization. Computype is a global Jeader in preparation, manufacturing, and on~site distribution of custom identification and data base programs and products. They are recognized world~wide as the dominant TQM manufacturer of precision bar-coding systems. They are a ISO~9000 company and a Ford Q-I quality supplier. Their customers are Ford, Motorola, Red Cross Blood I.D., and most of the nation's large libraries. The company has been in Roseville for 8 years; one of the founding owners still lives here (Larry Erickson). Computype has expanded each year and many of its smaller profit centers have doubled in size in the past 3 years. There are approximately 150 employees with an average wage of $ 16.00/hr. Because of the phenomenaJ growth, Computype has worked with a real estate consultant to evaluate two proposals to expand from the existing 57,000 sq. ft. to 75,000 sq. ft.. They include: I) Stay in Roseville at the existing site, but renegotiate the lease and make substantial improvements to the building owned by Normandale Properties. Computype would lease additional bays in the building. Normandale will not finance these improvements. Computype now looks to the City for such assistance. Only as a last resort are they interested in federal loans/grants. 2) Move to a new 75,000 sq. ft. building specifically designed for them in a northern suburb; to be ready in June, 1995. Bottom line lease and operating cost is very important to the company. Cash available for the project is not available, consequently they either will borrow the funds or blend the cost into their new lease. If the 2 alternatives are close, they would like to stay in Roseville. The Normandale Properties building in Roseville needs nearly a complete renovation on the inside to make way for Computype's new presses and other computer directed machinery. Best estimate is that Normandale has offered a net (with no renovation) lease rate of$2.50 for 7 years. There are between $600,000 and $1,000,000 in renovation costs including new HV AC and electrical