HomeMy WebLinkAbout4.2a First Amendment to Amended and Restated TIF Agreement NP Logistics Park Memo
TO: Economic Development Authority
Jennifer Levitt, Executive Director
FROM: Gretchen Larson, Economic Development Director
DATE: February 10, 2023
RE: First Amendment to the Amended and Restated Contract with NorthPoint Cottage Grove
Logistics, LLC
Background
In December 2021, the EDA approved the creation of TIF District No. 1-20 for the Logistics Park. The TIF
Agreement that was approved as part of the TIF District provided the phasing schedule and required job
creation as well as the amount of tax increment financing that would be provided. In May of 2022, the EDA
approved a first amendment to the TIF agreement to include a Building 1a and address the issues shared
by NorthPoint that the bids for engineering and construction of the public roads they are required to build,
were approximately $4.5 million more than preliminary estimates. Due to the increased in costs, the city’s
financial consultants at Ehlers determined that the TIF could be increased by to cover the increased costs
for the construction of the roadways. As a result of the discussions, the EDA approved the amended and
restated contact for TIF.
In late December NorthPoint representatives contacted the City Administrator to discuss some additional
changes to the previously amended TIF agreement. They stated that leasing of spaces in their current
Buildings I and Ia was taking longer than anticipated and therefore, an adjustment would need to be made
for the commencement date for the building of Phase II. Based upon the request from NorthPoint regarding
Phase II construction, the following is the key term of the attached first amendment to the amended and
restated TIF Agreement:
a) Development:
o Construction of the following manufacturing/distribution facilities and phases has been
modified from the original TIF agreement to change the commencement date for the
Phase II building from April 30 to October 31, 2023. Staff notes that the square footage
and completion date for the building remain unchanged.
Phase Square Feet Commencement Date Completion Date
II 730,000 October 31, 2023 July 30, 2025
Recommendation
By motion:
A. Approve the First Amendment to the Amended and Restated Contract for Private Development
by and between the Cottage Grove Economic Development Authority and NP BGO Cottage
Grove Logistics Park, LLC.
Attachment
1. First Amendment to Amend and Restate Contract for Private Development by and between Cottage
Grove EDA and NP BGO Cottage Grove Logistics Park, LLC.