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HomeMy WebLinkAboutEDA June 20, 2006 (~) ~ r-'" r~ NDbVE~~ 1685 CROSSTOWN BOULEVARD N,W, . ANDOVER, MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923 . WWW,CI.ANDOVER,MN,US ECONOMIC DEVELOPMENT AUTHORITY MEETING June 20, 2006 6:00 p,m. Conference Rooms A & B AGENDA 1. Call to Order - 6:00 p.m. 2, Approval of Minutes (5/16/06 Regular Mtg.) 3, 0 4, 5. 6, Approve Relocation Benefit Payment - Charles Mistelske (Commercial Auto Parts) PUBLIC HEARING - Land Sales at Andover Station North Letter of Intent - Review Funeral Home Proposal (Continued) Letter of Intent - Review Town Center Companies/ Northstar Partners Proposal 7. Purchase Agreement/Closing Updates 8. Other Business 9. Adjourn ~ C) ~~ ,. , ". tl: ~..r--...~.o.'~:1 ~. NDOVERif"::~ 1685 CROSSTOWN BOULEVARD N,W, . ANDOVER. MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923 . WWW,CJ.ANDOVER,MN,US ECONOMIC DEVELOPMENT AUTHORITY MEETING June 20, 2006 6:00 p.m. Conference Rooms A & B AGENDA 1. Call to Order - 6:00 p,m. 2. Approval of Minutes (5/16/06 Regular Mtg.) 3. 0 4. 5, 6. Approve Relocation Benefit Payment - Charles Mistelske (Commercial Auto Parts) PUBLIC HEARING - Land Sales at Andover Station North Letter ofIntent - Review Funeral Home Proposal (Continued) Letter ofIntent - Review Town Center Companies/ Northstar Partners Proposal 7. Purchase Agreement/Closing Updates 8. Other Business 9. Adjourn o ':~ :.J , " , \J (j) 1685 CROSSTOWN BOULEVARD N,W, . ANDOVER, MINNESOTA 55304. (763) 755-5100 FAX (763) 755-8923 . WWW,CI.ANDOVER,MN,US TO: Economic Development Authority CC: Jim Dickinson, Executive Director FROM: Vicki Volk, City Clerk SUBJECT: Approval of Minutes DATE: June 20, 2006 INTRODUCTION The following minutes were provided by staff for approval by the EDA: May 16, 2006 Regular Meeting DISCUSSION Attached are copies of the minutes for your review. ACTION REQUIRED The EDA is requested to approve the above minutes. Respectfully submitted, u. O~ Vicki V olk City Clerk () ANDOVER ECONOMIC DEVELOPMENT AUTHORITY MEETING MA Y 16, 2006 - MINUTES A Meeting of the Andover Economic Development Authority was called to order by Secretary Don Jacobson at 6:00 pm, Tuesday, May 16,2006 at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. Commissioners Present: . Mike Knight, Ken Orttel, Julie Trude (arrived at 6:04 pm), Joyce Twistol, Robert Nowak President Mike Gamache Jim Dickinson, Executive Director Dave Berkowitz, City Engineer Will Neumeister, Community Development Director Others Commissioners Absent: Also Present: APPROVAL OF MINUTES o Motion by Orttel, seconded by Knight to approve the minutes of May 2,2006 as written. Motion carried. DISCUSS LETTER OF INTENT (Daniel DeShaw) Mr. Neumeister explained that Keystone Development is working with Thurston- Lindberg Funeral Home on this project. At the present time the list of uses allowed in Andover Station North does not include a funeral home or crematorium. If this is a use the EDA would like in that area it would need to be added to the list. Russ Karash, Keystone Development presented a drawing of the proposed funeral home showing the elevations. He noted that they have a 40% cremation rate at Thurston- Lindberg. (Vice President Trude arrived at 6:04 pm to chair the meeting). Mr. Karash explained that the equipment that will be used for the crematorium is odorless, smokeless and capable of doing 4-6 bodies a day. They plan to do about 50 per year. He explained the process and the amount of time that is necessary for cremation. One of the concerns that people have regarding crematoriums is the mercury that is in teeth. He noted that there has been a 30% decrease in the number of mercury fillings as they usually use porcelain. He also stated that the EP A is not going to monitor crematoriums any more. . " \ ,_ J ':J Economic Development Authority Meeting May 16, 2006 - Minutes Page 2 Commissioner Nowak asked ifthere would be a large smoke stack. Mr. Karash replied that it is about 20 inches high. There is no smoke because it burns at 700 degrees and there is an after-burner that burns the smoke. Commissioner Jacobson asked if this is approved would the EDA need to go back to all of the people who have purchased other lots in the plat to see if they would be agreeable to allowing funeral homes and crematoriums as an allowed use. Mr. Neumeister thought that as long as the convenants were not being changed we wouldn't have to. Commissioner Jacobson felt that there is a lot of asphalt and asked if the purchasers would be willing to add more green space. Mr. Neumeister noted that they meet the requirements for green space. Commissioner Orttel stated that a lot of funeral homes don't return pacemakers and other medical devices and asked how Thurston-Lindberg deals with them. Mr. DeShaw explained that devices are required to be removed and they have a service that picks them up and disposes of them as required by law. ~J Mr. Neumeister showed the EDA a drawing of Andover Station North, noting where the green space is located. If the EDA wants more green space the purchaser can reduce the parking. Commissioner Knight asked what the opposition was to the other location previously brought forward for a funeral home and crematorium. Mr. Neumeister stated that the people in the area were concerned with health issues. The EDA discussed with Mr. Karash if they would be willing to take a different lot. Commissioner Knight noted that there is heavy residential going in across the street and he didn't know how they would feel about this use. Greg ScWink, Bruggeman Homes, stated that he would like a little time to talk to his marketing people. Vice President Trude explained that the EDA would want to know if this use would prevent people from buying Bruggeman's homes. Commissioner Twistol stated that the Hanson Builders property is very well screened and she would have no problem with this use. Mr. Neumeister explained that they would get the information to the developers and come back to the EDA with their comments. Vice President Trude requested that the approval of minutes be reconsidered. Motion by Orttel, seconded by Jacobson to reconsider the approval of the May 2,2006. Motion carried. ' "- \, ) C) Economic Development Authority Meeting May 16, 2006 - Minutes Page 3 Vice President Trude noted that on Page 2, the 7th paragraph should read "Commissioner Trude stated Andover has very little space for commercial left and she wondered why Andover, as a mostly bedroom community, would need this organization." Motion by Jacobson, seconded by Knight to change the minutes to reflect Vice President Trude's comments. Motion carried. DISCUSS BRUGGEMAN HOMES ARCHITECTURAL CHANGES AT "PARKSIDE", CONTINUED Mr. Neumeister noted that Bruggeman Homes has restyled the buildings. Staff feels they did a good job of changing the design. Greg Schlink, Bruggeman Homes, explained that they shortened the roof and moved the end unit front doors to the sides of the buildings. There are a few places where the porches encroach into the setbacks. They will be using 2 color variations so there would be 12 different variations on the buildings. o Vice President Trude noted that she likes the floor plan where people come in through the kitchen and not the living room. Mr. Dickinson stated that President Gamache informed him that he also likes the floor plan. The EDA agreed that the roof is better than previously shown. Motion by Knight, seconded by Orttel to accept the architectural changes for Bruggeman Homes at Parkside at Andover Station. Motion carried unanimously. DISCUSS BRUGGEMAN HOMES MORTGAGE AMENDMENT Mr. Dickinson explained that the original goal was that Bruggeman would takedown34 units in May. They would now like to consolidate the two additional parcels they are purchasing into the mortgage and calculate the paydown into 36 units. The EDA will be holding the note on the outlot. The 36 units will be at the agreed upon price and they will pay us for the Povlitzki parcel and the EDA adjacent parcel. Bruggeman has requested the EDA to extend the note for an additional two years, unti12010. During Phase II they will be doing some takedoWllS. The interest rate is currently 6%. , " , i...J Commissioner Jacobson asked if the interest rate would be higher if we extend the note for 2 years. Mr. Dickinson stated that we are locking in the interest rate; however, we , "\ <_/ Economic Development Authority Meeting May 16, 2006 - Minutes Page 4 will be collecting more interest because of the two-year extension. Motion by Jacobson, seconded by Knight to move the change as requested by Bruggeman Homes referencing Item #4 on the agenda. Motion carried unanimously. DISCUSS ANOKA COUNTY PARTNERS PROPOSAL Mr. Dickinson noted that President Gamache asked what the county's participation would be and what value we are getting out of this. If this is not something the EDA wants to discuss it can be taken to the City Council. Funding for this could be designated out of the EDA budget as a special revenue fund. Commissioner Jacobson stated that there will be a meeting of the Anoka County Partners group and he felt that EDA members should attend to see if we fit in. (-J Mr. Dickinson noted that David Piggott said they want to pull businesses out of the central city and move them to Andover. The cost to Andover would be 50 cents per capita Because they are a 501c(3) they can't lobby. He noted that if the EDA wants them to come back they would be more than happy to do so. Commissioner Twistol asked if Andover is part of the Chamber of Commerce and if so, their business is to bring in business. Vice President Trude stated that we are a part of the Chamber. Commissioner Nowak felt that 50 cents per capita is a small price to pay if we get something out of it. Motion by Jacobson, seconded by Knight to add this to the next EDA agenda. Motion carried. Motion by Jacobson, seconded by Knight to adjourn. Motion carried unanimously. Meeting adjourned at 7:00 p.m. Respectfully submitted, Vicki V olk City Clerk ~) ~,~) @ 1685 CROSSTOWN BOULEVARD N,W. . ANDOVER, MINNESOTA 55304 . (763) 755.5100 FAX (763) 755-8923 . WWW,CI.ANDOVER,MN,US TO: EDA President and Commissioners FROM: Jim Dickinson, Executive Director SUBJECT: Approve Relocation Benefit Payment - Charles Mistelske (Commercial Auto) DATE: June 20, 2006 INTRODUCTION As you may recall in June of 2005, Charles Mistelske made a claim of some $400,000 in additional relocation benefits related to the EDA's acquisition of his Commercial Auto Parts property. The appointed hearing examiner conducted a contested hearing on April 19, 2006. DISCUSSION . '\ '-) After the contested hearing and a detailed review by the hearing examiner, the examiner has concluded that Mr. Mistelske is entitled to an additional award of $42,500 for some storage expenses during the period of June 1998 through October of 1998. All other claims made by Mr. Mistelske were denied. If Mr. Mistelske is dissatisfied with the decision, he has the right to again appeal this decision to the Minnesota Court of Appeals and has 60 days to do so. The EDA's legal counsel and I are recommending payment to Mr. Mistelske of $42,500 as directed by the hearing examiner. BUDGET IMPACT The payment would be from the TIP Project Fund, which currently has a legal defense reserve fund balance available for the payment. ACTION REOUESTED The EDA is requested to approve the relocation benefit payment. , \ U /- '\ '-) " \.J ~J @ 1685 CROSSTOWN BOULEVARD N,W, . ANDOVER, MINNESOTA 55304. (763) 755-5100 FAX (763) 755-8923 . WWW.CI.ANDOVER,MN,US TO: EDA President and Board .-/ CC: Jim Dickinson, Executive Director FROM: evelopment d- Will Neumeister, Director ofCommum SUBJECT: Public Hearing - Land Sales at Andover Station North DATE: June 20, 2006 INTRODUCTION City Attorney, Bill Hawkins, has advised the EDA that when land is sold in Andover Station North, a public hearing is necessary. Now that the purchase agreements have been put into final form and signed, it is appropriate to hold the public hearings for the land sales to Louis Rudnicki for a retail development; and also to Michael Casey for a light industrial development. ACTION REOUESTED EDA is requested to open the public hearing and request public comment. If no public comments are made, then the EDA may close the public hearing and discuss the land sales to these two different individuals/companies. Respectfully submitted, hdt4~ Will Neumeister Attachment Public Hearing Announcement " J NOTICE OF PUBLIC HEARING CITY OF ANDOVER COUNTY OF ANOKA STATE OF MINNESOTA 1 \._~ The Economic Development Authority of the City of Andover will hold a public hearing at 6:00 p.m., or as soon thereafter as can be heard, on Tuesday, June 20, 2006 at Andover City Hall, 1685 Crosstown Blvd NW, Andover, for Land Sales in Andover Station North. All written and verbal comments will be received at that time and location. A copy of the proposed land sale information will be available for review prior to the meeting at City Hall. Please contact Will Neumeister, Community Development Director, with any questions at (763) 767-5140. ~~_o>>V{ ____ Will Neumeister, Community Development Director Publication date: ,2005 \ " ) , ....J,' @ 1685 CROSSTOWN BOULEVARD N,W, . ANDOVER, MINNESOTA 55304. (763) 755-5100 FAX (763) 755-8923 . WWW,CI.ANDOVER,MN,US TO: EDA President and Board Members ~ Jim Dickinson, Executive Director ~ Will Neumeister, Community Developme~ctorttd- CC: FROM: SUBJECT: Letter of Intent -Review Funeral Home Proposal (Continued) DATE: June 20, 2006 INTRODUCTION On May 16, 2006 a letter of intent was brought to the EDA related to a funeral home and crematorium proposal. The letter was submitted by Daniel DeShaw for a portion of Lot 1, Block 2, Andover Station North. Please find the letter of intent attached for your review. The discussion at that meeting centered on whether the use list should be modified to allow the EDA to entertain this as an allowable use in Andover Station North. The staffwas directed to gather input from Bruggeman Homes and Hanson Builders as to whether this use would be considered acceptable to them. Attached is a letter from Bruggeman Homes that generally objects to the use change, ') \._/ DISCUSSION Again, as stated on May 16,2006 the list of uses allowed in Andover Station North does not have a funeral home and crematorium listed. Therefore the EDA must first decide if these uses will be allowed in Andover Station North. If the EDA agrees that the uses should be amended, then there should be a motion to amend the list of allowable uses to include them. If the EDA decides the list should not allow these uses the staff should be directed to return the letter of intent to Mr.DeShaw with the acknowledgement that the EDA could not act on the request because the uses were not changed. ACTION REOUESTED The EDA is asked to discuss whether the Andover Station North uses should be amended to include funeral homes and crematoriums. If the EDA feels that they should be allowed, then the letter of intent should be discussed and determine whether there is interest in selling the land to Mr. DeShaw based on the proposal that he has prepared, Respectfully submitted" J Will Neumeister W'ct.-- Attachment List of Uses Allowed in Andover Station North Letter from Bruggeman Homes (June 8, 2006) Letter of Intent (Daniel DeShaw) Minutes of May 16,2006 EDA Meeting \......) o o ~ <. I ~J .E1 ~, f\. ,"i\.BRUGGEMAN PROPERTIES Building Communities Since 1959 L'l . A' i'~ June 8, 2006 Mr. Will Neumeister Andover Economic Development Authority 1685 Crosstown Blvd, N,W. Andover, MN 55304 Re: Andover Station North Dear Will, As you recall, at the EDA meeting on May 16, 2006 Bruggeman Properties, LLC was asked to review and respond to the proposal for the Thurston Funeral Home Andover Chapel. We have reviewed the proposal with our staff and the sales staff of Bruggeman Homes, The consensus was the construction of a funeral home and crematorium on Jay Street near the entrance to the Par1<side neighborhood could have a negative impact on the sale of homes, This was in view of the other concems impacting the property salability related to the WOE landfill and the lighted ball fields. Although we are aware of those existing constraints, introduction of one more possible sales objection could compound the problem, particularly in light of altematives available in Ramsey. In addition, we believe the air quality issues related to a crematorium have been adequately addressed, However, we believe the crematorium has a considerably more negative image perception than a funeral home alone. Although we are opposed to the dlange, if the Andover EDA were to revise the use restrictions to allow the funeral home, we ask them to consider the following: 1) Consider altemative sites within Andover Station North that do not front on Jay Street. 2) Require "low key" signage identifying the facility. 3) Limit signage to the words ''Thurston Funeral Home Andover Chapel", with no reference to the crematorium permitted on any exterior signage within Andover Station North, The proposed ardlitecture for the facility is attractive and appropriate and enhanced landscaping could further mitigate negative perceptions of the use. We appreciate the continuous support and concem the Andover EDA has consistently shown and welcome the opportunity to disQJSS this issue with you in further detail. Sincerely, u u.-' link roperties, LLC -:2,.- EYSTONE FUNERAL HOME DESIGN BUILD, INC. Mr. Will Neumeister City of Andover, MN 1685 Crosstown Blvd. N.W. Andover, MN 55304 "Client Satisfaction is the Ke!f" 22517 178th Ave Suite 210 Cold Spring, MN 56320 1,866,685,8054 320,685,8054 320,685,8853 fax RE: Purchase of City land located on Jay Street N.W. Dear Mr. Neumeister: This letter is a proposal for the purchase ofa parcel of land located on Jay Street N.W. from the City of Andover, MN and it's subsequent development into a funeral home with crematorium. 1. SELLER: City of Andover, MN 2. BUYER: Joyce and Daniel DeShaw 3, LEGAL DESCRIPTION: (To be determined, property needs to be platted/metes and bounds, along with fmal square foot lot size) r ~, I \._/ 4. PRICE: $404,519.00 Four Hundred Four Thousand Five Hundred Nineteen and no/l00 dollars or $4.95 a square foot ($4.50 a square foot plus $.45 a square foot for park dedication fees for usable square feet, approximately 75,374 square feet), and $2.47 a square foot ($2.25 a square foot and $.22 a square foot for park dedication fees, approximately 12,720 square foot for land that would be purchased and used as access to other parcels of land into the development). Complete parcel of new land, less public street, would be maintained by owner along with granting a roadway easement to the other parcels.) Assessment of street, storm sewer, sanitary sewer, water main is included in the price. Final price will be adjusted once survey is complete, but would be based on the above square foot calculations. 5. CLOSING: Closing shall be on or before August 151, 2006 with construction to begin Fall of 2006. At closing, seller shall convey a marketable fee title free of all leases, mortgages and other encumbrances and restrictions. 6. TAXES AND ASSESSMENTS: All taxes shall be prorated as of the day of closing. The property shall be delivered by SELLER free of any Special Assessments. 7. BROKERAGE: Buyer and Seller represent that neither party is responsible for Brokerage commissions. . -. 8. INTENDED USE: The parties acknowledge that the intended use of the property would be used to construct an approximate 7,000 square foot funeral Home with crematorium. Architecture would be per City of Andover, MN requirements. Attached elevations, site plan and floor plan depict conceptual design. -3- '-../ " '\ , . - " . ') '-- / \ \j 9. CONDITIONS PRECEDENT TO CLOSING: Buyer shall agree to or receive from City of Andover, MN the following: a. Approval for the construction of a funeral home with crematorium at site. b. Approved preliminary plat, final plat (at City of Andover's expense). Proposed preliminary site plan and elevation approval. c. A cross-easement agreement between other parcels of land is acceptable, but there would be no allowance for location of signage, etc. by other businesses to be located on BUYER'S property unless approved by BUYER. 10. CONFIENTIALITY: Each of the parties (and their respective agents and repre- sentatives) will keep the existence and terms of the letter in strict confidence both before and after closing, except in the course of conveying necessary information to third parties involved in the transaction and except as may be required by law or otherwise mutually agreed upon in writing by both parties. 11. NON-BINDING: Each of the parties acknowledges that this is a Letter of Intent and shall not be binding until a written Purchase Agreement is executed by both parties. Please acknowledge your acceptance of this Letter ofIntent by signing and returning by mail or fax. Thank you for your assistance in the process and your favorable response for the proposed use. We look forward to be coming a part of the community of Andover, MN. Sincerely, t=)~ (;2 Z)AW Daniel DeShaw Funeral Director Acknowledged this day of _,2006 City of Andover, MN By: Printed: Title: -t./_ ...... 0 \) ~ ~ .... \) ;a. ~ == ~ ~ (J I ~ ...... - ... \) == - ~ =: ~ Ci ~ ~ ~ ~ r.t:l - ~ r.t:l ... ~ - llI:: 0 Ci ~ ~ -s- ~--_. ~._:'liJ. 3~nJ.03J.1HOHV S~lVI:JOSSV * ~~ll-NV\J ---.-,... - ",'~"""~"'IEI: _'_'cn.<_ u - " Dn u iil \Z <Il <Il W Z ~ !e~ III w~ ;J.~~w~w; a:: a::o ~ _i a:::l! ~ 5;, ~!'Ol :5 W 0....' w,:;: " ~ ~~; fii~~ c;- O t-~~ 0'" Z w:rn ~'!t:- Z !211 ~!,.!< 2 !!!ll :511~ g CJ . <Il - !e. . w S 1 ~ :.i ~!~!l~ o ~~;Ir.. l:! l:l'~~ ,,~!~i" ;:; !!.!:! ~ ~~;;.. ~ &~~i \\ \ " '\.\\ \\ \ \ \\ \\ \\ \\ .' \\ "'<\, \>-- '\"-.- ',,, ii "'::::"'" II "-'>" H 'Ioii i;~i!! 'I oil" ".! ,I !.-,'l , .., I.,'''' ".,!! '~li~''"!! 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() '\ \J ~J ANDOVER ECONOMIC DEVELOPMENT AUTHORITY MEETING AMY 16, 2006 - MINUTES A Meeting of the Andover Economic Development Authority was called to order by Secretary Don Jacobson at 6:00 pm, Tuesday, May 16,2006 at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota Commissioners Present: Mike Knight, Ken Orttel, Julie Trude (arrived at 6:04 pm), Joyce Twistol, Robert Nowak President Mike Gamache Jim Dickinson, Executive Director Dave Berkowitz, City Engineer Will Neumeister, Community Development Director Others Commissioners Absent: Also Present: APPROVAL OF MINUTES Motion by Orttel, seconded by Knight to approve the minutes of May 2,2006 as written. Motion carried. ~ DISCUSS LETTER OF INTENT (Daniel DeShaw) Mr. Neumeister explained that Keystone Development is working with Thurston- Lindberg Funeral Home on this project. At the present time the list of uses allowed in Andover Station North does not include a funeral home or crematorium. If this is a use the EDA would like in that area it would need to be added to the list. Russ Karash, Keystone Development presented a drawing of the proposed funeral home showing the elevations. He noted that they have a 40% cremation rate at Thurston- Lindberg. (Vice President Trude arrived at 6:04 pm to chair the meeting). Mr. Karash explained that the equipment that will be used for the crematorium is odorless, smokeless and capable of doing 4-6 bodies a day. They plan to do about 50 per year. He explained the process and the amount of time that is necessary for cremation. One of the concerns that people have regarding crematoriums is the mercury that is in teeth. He noted that there has been a 30% decrease in the number of mercury fillings as they usually use porcelain. He also stated that the EP A is not going to monitor crematoriums any more. -7- (-J Economic Development Authority Meeting May 16, 2006 - Minutes Page 2 Commissioner Nowak asked if there would be a large smoke stack. Mr. Karash replied that it is about 20 inches high. There is no smoke because it burns at 700 degrees and there is an after-burner that burns the smoke. Commissioner Jacobson asked if this is approved would the EDA need to go back to all of the people who have purchased other lots in the plat to see if they would be agreeable to allowing funeral homes and crematoriums as an allowed use. Mr. Neumeister thought that as long as the convenants were not being changed we wouldn't have to. Commissioner Jacobson felt that there is a lot of asphalt and asked if the purchasers would be willing to add more green space. Mr. Neumeister noted that they meet the requirements for green space. Commissioner Orttel stated that a lot of funeral homes don't return pacemakers and other medical devices and asked how Thurston-Lindberg deals with them. Mr. DeShaw explained that devices are required to be removed and they have a service that picks them up and disposes of them as required by law. ~~ Mr. Neumeister showed the EDA a drawing of Andover Station North, noting where the green space is located. If the EDA wants more green space the purchaser can reduce the parking. Commissioner Knight asked what the opposition was to the other location previously brought forward for a funeral home and crematorium. Mr. Neumeister stated that the people in the area were concerned with health issues. The EDA discussed with Mr. Karash if they would be willing to take a different lot. Commissioner Knight noted that there is heavy residential going in across the street and he didn't know how they would feel about this use. Greg Schlink, Bruggeman Homes, stated that he would like a little time to talk to his marketing people. Vice President Trude explained that the EDA would want to know if this use would prevent people from buying Bruggeman's homes. Commissioner Twistol stated that the Hanson Builders property is very well screened and she would have no problem with this use. Mr. Neumeister explained that they would get the information to the developers and come back to the EDA with their comments. Vice President Trude requested that the approval of minutes be reconsidered. Motion by Orttel, seconded by Jacobson to reconsider the approval of the May 2, 2006. Motion carried. , ... \ \J -3'- u , '\ \...J C) Economic Development Authority Meeting May 16, 2006 - Minutes Page 3 Vice President Trude noted that on Page 2, the 7th paragraph should read "Commissioner Trude stated Andover has very little space for commercial left and she wondered why Andover, as a mostly bedroom community, would need this organization." Motion by Jacobson, seconded by Knight to change the minutes to reflect Vice President Trude's comments. Motion carried. CUSS BRUGGEMAN HOMES ARCHITECTURAL CHANGES AT IDE", CONTINUED Mr. Ne ister noted that Bruggeman Homes has restyled the buildings. Staff feels they did a good j of changing the design. Greg Schlink, B geman Homes, explained that they shortened the roof and moved the end unit front door 0 the sides of the buildings. There are a few places where the porches encroach into e setbacks. They will be using 2 color variations so there would be 12 different variation on the buildings. Vice President Trude noted t she likes the floor plan where people come in through the kitchen and not the living room. Mr. Dickinson stated that President Gamache informed him that he also likes the floor pi Motion carried unanimously. The EDA agreed that the roof is better Motion by Knight, seconded by Orttel to ac pt the architectural changes for Bruggeman Homes at Parkside at Andover Station. DISCUSS BRUGGEMAN HOMES MORTGAGE Mr. Dickinson explained that the original goal was that Brug man would takedown 34 units in May. They would now like to consolidate the two addl 'onal parcels they are purchasing into the mortgage and calculate the paydown into 36 'ts. The EDA will be holding the note on the outlot. The 36 units will be at the agreed up price and they will pay us for the Povlitzki parcel and the EDA adjacent parcel. Bruggem has requested the EDA to extend the note for an additional two years, until 2010. Duri Phase II they will be doing some takedowns. The interest rate is currently 6%. Commissioner Jacobson asked if the interest rate would be higher if we extend note for 2 years. Mr. Dickinson stated that we are locking in the interest rate; however, e -1- : ) ~ ~J \ \. ) @ CITY OF NDOVE 1685 CROSSTOWN BOULEVARD N,W, . ANDOVER, MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923 . WWW,CI.ANDOVER,MN,US TO: EDA President and Board Mem er~ Jim Dickinson, Executive Director CC: FROM: Will Neumeister, Community Develop n Director wL SUBJECT: Letter of Intent -Review Town Center Companies / Northstar Partners Proposal DATE: June 20, 2006 INTRODUCTION A letter of intent has been received from Town Center Companies, LLC in conjunction with Northstar Partners (as broker) to purchase Lot I, Block 2, Andover Station North. They have indicated that they would develop professional offices, including possibly a bank on the site. The site is the large parcel at the southwest comer of 139th and Hanson Boulevard (see attached location map). DISCUSSION The proposal indicates they would need a six month period to perform their "due diligence" and after that is completed they would "take down" the entire parcel at one time. Their terms are that the City EDA would pay the broker involved from Northstar Partners a six percent brokerage fee (due at closing). Their proposal indicates they would offer two prices for the land involved. They are proposing that the portion of the site under the power lines (approx. 0.5 acres) would be at a reduced price, and the usable portion of the site (6.77 acres), not encumbered by the power line easement, would be at the full price. They indicate that the offering prices include the payment of a 10% park dedication fee in their number. ACTION REOUESTED The EDA is asked to discuss the proposal from Town Center Companies/Northstar Partners. Provide staff direction on whether the EDA would like to pursue writing of a purchase agreement between the City EDA and Town Center Companies. Respectfully submitted, t!4- Will Neumeister Attachment Letter of Intent (Town Center Companies/N orthstar Partners) ~. ) ~ Mr. .Jim Dickenson Mr. Will Neumeister City of Andover, MN 1685 Crosstown Blvd. N. W. Andover, MN 55304 RE: Letter of Intent to Purchase Land By and between the City of Andover ("Seller") and Town Center Companies, LLC ("Buyer") made this day of .June 2006. Location: Hanson Boulevard And .Jay Street Northwest, Andover, MN 55304 Legal Desc. : Lot 1, Block 2 Andover Station North o Area: 7.27 Gross Acres (316,676 s. f.) 6.77 Net Acres (294,858 s. f.) Price: $4.36 per sq. ft. for the net 6.77 Acres, ($1,285,581 ). $1.00 per sq. ft. for the easement area of .5 acres, ($21,818). Total purchase price for the 7.27 Gross acreages is $1,307,399. This price includes park dedication fees. Assessments for street, storm sewer, sanitary sewer, water main is included in the price. Final price will be adjusted once survey is completed, but will be based on the above price per square foot. Terms: Buyer shall make a $25,000 refundable down payment that will apply to the final purchase price. u 1 . \ <J Effective Date: July 11, 2006 Taxes: All taxes shall be prorated as of the day of closing. The property shall be delivered by Seller free of any Assessments. Due Diligence: Buyer shall have six (6) months to complete its Due Diligence, including but not limited to environmental, survey, and economic viability. If Buyer is engaged in the process of entitlement, i.e. getting plans approved etc. Seller agrees to extend the closing date by an additional six (6) months. If Buyer cancels this agreement in writing during the Due Diligence period, the down payment shall be refunded to the Buyer within 10 working days of the City receiving written notice of cancellation. ') '-.J Closing conditions: As listed below: a. Approval of a preliminary plat on the property. Intended Use: Developer plans to develop professional office, with some services, to include all office type uses as well as banks. Exclusivity: Seller agrees to remove the site from the market and will not entertain any other offers solicited or not during the Due Diligence time frame. Brokerage: Seller acknowledges Scott Kummel of Northstar Partners as the Buyer Broker and agrees to pay Northstar Partners a fee of six percent (6) of the gross sales price (less park dedication) at the time and place of closing. Both parties represent , ,) ') JUN 14 '06 15:52 FR TOWN CENTER DEV 7634206831 TO 7637558923 P.04 ,- "\ , J \...._~~ not dealt with any other broker in connection with this transaction and agree to hold each other harmless for any claims arising from any other brokers. Non- Binding: Each of the parties acknowledges that this is a Letter of Intent and shall not be binding until a written Purchase Agreement is executed by both parties. Buyer TOW By: Its: Date= SELLER CITY OF ANDOVER By Its: Date: , '\ '----./ "~-) 3 /1 LcJcA-rION MJ'tP" <l; '" .::j '" '", .., ~ 3 1 ... 0 .~ 'l! . oS ... 0 ~ ~ . oS ... 0 . oS '( ~ - .. 1 OUTLOT B'2.0:~ \..Ie 2.11 Acros f. \ \ , ; =, Cl.. .:.... I ~ L- I 5 .3 , )- ~ lL l1: ~) ~ ~L ,~ 13~.TtL JF:'" -~~ .~~ .-,l, It).... "- ~ ~ ....~ ~ -- I~~ 3 ~ - ~ ~ ~~~ ~ I , I , " r I I I I I I I I __oj!! T ~~~j~ ~B~:a~ m~t, 1 1 , " . i- . \ ..,;-------________________ coo 00 l______n____nnn_ \ c ~ ..J ~ o m z o CJ) ~ , , CDI r... 1< " .... 'v 9 [l -. l , ( ", ~ . '~l fl 5 2 . ~ oS -' _ 11-~' 5~ -~ - flWJJ -, . ... ' ( 0- C ~ [l tOO \ 1- \: a '- - --- !-- 25 .... f- 'u t211P. -.>. 1"'=: ,~. 11 ,-, ~} ,'" " '" -. "'- 1----- 150 --- -' ... " <( , ' ) ,_ .J , , " _/ '\ , / (J) CITY OF NDOVE 1685 CROSSTOWN BOULEVARD N,W, . ANDOVER, MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923 . WWW,CI.ANDOVER,MN,US TO: EDA President and Board CC: Jim Dickinson, Executive Director Will Neumeister, Community Developm Director fJl'L FROM: SUBJECT: Update on Andover Station North (Various Purchase Agreements/Closings) DATE: June 20, 2006 INTRODUCTION This memo is provided as a status update for all the various purchase agreements and closings that are in the process of being completed. DISCUSSION The following is the update on activities: Recent discussion with a potential developers/purchasers have yielded a letter of intent up for discussion at the June 20th EDA meeting. The property isjust south of 139th Avenue and north of the wetland, The potential use is an office development. John Larkin has indicated that he is still exploring options for the property just north of 139th Avenue and west of Hanson Blvd. John is interested in developing the sports training facility and is checking with various companies to see ifhe can afford to build a building that would conform to the architectural standards. The Andover Station North "Business Fair" was held on Thursday, June 15th from 5 -7 p,m. The purpose of the event was to gain better public and business awareness that the City is selling off portions ofthe Andover Station North site. About 40 people attended the event, and follow up calls will be made within a week for those that attended. Work continues on closing out purchase agreements approved by the EDA. The following is the update on activity: Rudnicki Purchase Agreement - The City Attorney and Staff have prepared the necessary documents to complete the closing of this parcel. The closing was tentatively scheduled for June 16,2006 but has been moved out a few more days to allow Mr. Rudnicki to lease more of the space in the building, Mr. Rudnicki is expecting to close on the property before the end of the month. Mr. Rudnicki has submitted an application to the City for a building permit and is on schedule to start construction as soon as the closing is complete. He has also secured his construction contingency plan approval from the MPCA. r '\ , ; " \ \_/ / " I '.-./ Casey Purchase Agreement - The final copy of purchase agreement has been signed and Mr. Casey has brought in the down payment. Closing has been set for on/or before July 1 st, Bruggeman Homes Purchase Agreement - The closing for Parkside at Andover Station occurred on Wednesday, June 14th. Their first eight unit building is under construction. Funeral Home Proposal- The EDA will need to determine how they would like to proceed with this development proposal at the June 20th meeting. New Office Development Proposal- The EDA will hear a new proposal for an office development on Lot I, Block 2 at the June 20th meeting. Other New Light Industrial Development Proposal- The staff have been working with a potential development of a site for building materials storage. This could develop into a formal proposal within the next two to three weeks. Restaurant Site - Staff has obtained a very comprehensive list of restaurants to pursue and plan to market heavily to them very shortly. Overal/- Staff continues to pursue the EP A in Chicago to remove the institutional controls placed on the Andover Station North parcels, Jay Street final wear course paving was recently completed. The site plans for Michael Casey's and Louis Rudnicki's buildings/sites are being prepared. ACTION REOUlRED This is an informational update to the EDA only, no action is needed, Respectfully SUb~ Will Neumeister ?