City, Company Responds to Potential Purchase of Lockheed Martin Facility

CSM Equities, LLC, an affiliate of the Minneapolis-based CSM Corporation, announced Wednesday their sale and leaseback agreement and possible intentions for Lockheed Martin's 51.25-acre property in Eagan.

According to Lockheed Martin, "[Our company] has signed a contract to sell its Eagan, Minn., facility to CSM Corp.... The sale is anticipated to close in early summer 2011, at which time CSM Corp. would take ownership of the building."

Lockheed Martin would lease back space from CSM Corp. through March 2013. At that time, Lockheed Martin employees will have transitioned to other locations as a result of their previously announced plan to discontinue operations at the Eagan facility, Lockheed Martin said in a statement.

Lockheed Martin received a total of five offers from interested buyers, according to Spokesperson Peggy Mullikin. The company provided those buyers with the Eagan facility's "preferred deal structure."

In addition, according to Eagan City Administrator Tom Hedges, the city provided Lockheed Martin with a memo (or letter) earlier in the year concerning the status of the property, such as zoning requirements, that the company could share with interested buyers.

Once Lockheed Martin reviewed the offers from potential buyers, the company selected CSM to enter into negotiation of terms and conditions and a contract was signed by both parties. This begins the due diligence period where CSM more closely examines the property and documentation, according to Lockheed Martin.

In addition, during this period, CSM can still withdraw its bid for the sale of the property. If that occurs, "Lockheed Martin would select another potential buyer to repeat the process. Following the due diligence phase, the buyer [would close] on the contract," according to Lockheed Martin.

In a CSM press release, the company stated its interest with "future mixed-use development, [which could include an] enhanced Tier III data center [or] retail, restaurant, service, office and other uses."

Hedges said the property is currently zoned for research and development. However, a company can request a zoning change for any given property in the city. If that were to happen, the company would have to submit a request for a zoning change and a comprehensive guide plan. Then, they would go through an application process before the planning commission and city council.

Concerning zoning changes at the Lockheed Martin facility, Hedges said, "We are a long way away from that idea. We have not had a meeting with them [CSM] and until we meet with them, it's all speculation."

Hedges added, "We've been working with Lockheed Martin very closely and we are very interested in what it is [CSM is] proposing."