Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Economic Development topic
No spam. Unsubscribe anytime.
EDA advances terms for Central Dermatology purchase-and-development agreement; board sets timeline and employment requirements
Summary
The EDA reviewed a draft purchase-and-development agreement with River Birch Investments for Central Dermatology. The board signaled support for a phased deal (lots 1–2 development, lot 3 option), a 24-month target for certificate of occupancy, and a five-year employment maintenance tied to a $1-per-acre incentive.
Brainerd City's Economic Development Authority on Sept. 4 advanced contract terms for a proposed Central Dermatology project in the TC Industrial Park, outlining a phased purchase-and-development agreement that would place lots one and two under development and hold lot three as an option.
Jennifer Hascamp said the draft PDA follows a template previously used for other industrial-park deals and noted zoning was amended earlier to permit the proposed clinic. She described phase one as a roughly 9,500-square-foot building (about 7,000 sq ft finished on the upper level and 2,500 sq ft on the lower level) and said the developer is pursuing SBA financing. "The total square footage of the building that they are working on right now is approximately 9,500 square ft," she told the board.
Key points the board addressed included: • Option structure for lot 3: The PDA would treat lot three as an option parcel that the developer may purchase within five years after phase-one completion; the city would retain fee title unless the option is exercised. Staff and board members indicated five years is an appropriate exercise window. • Construction timing: The draft requires the developer to obtain a certificate of occupancy within 24 months of closing for phase one; the board generally agreed that 24 months is reasonable for commercial construction under the proposed financing structure. • Plans appended to the PDA: Board members favored attaching substantive design and site plans (roughly 50–60% construction-level plans: site plan, elevations and floor plans) rather than schematic renderings, to give lenders and the city better budget and performance assurances. • Incentive employment terms: Because the developer expects to use the city's dollar-per-acre incentive program, the PDA must document employment commitments. The developer's preference is to maintain existing jobs and add staff later; the board signaled support for a five-year maintenance period consistent with state guidance.
Jennifer said staff will incorporate the board's direction into the draft PDA and return with a refined agreement. Any final sale or incentives will require legal review and, where applicable, city-council approval.
