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HomeMy WebLinkAboutEDA - December 4, 2012ND OVE: 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100 FAX (763) 755 -8923 • WWW.ANDOVERMN.GOV ECONOMIC DEVELOPMENT AUTHORITY MEETING December 4, 2012 6:00 p.m. Conference Rooms A & B 1. Call to Order — 6:00 p.m. 2. Approval of Minutes (November 7, 2012 Regular; November 7, 2012 Closed) 3. Discuss /Approve Resolution Authorizing Termination of a Lease Agreement, and Authorizing Execution of an Escrow Agreement Relating to the Issuance by the City of Andover, Minnesota, of its $17,400,000 Taxable General Obligation Abatement Bonds, Series 2012C 4. Discuss /Approve 2013 EDA Budget 5. Parkside at Andover Station Land Sale Discussion 6. Tax Forfeiture Property —1049 Andover Boulevard NW 7. Consider 2013 CDBG Project Application 8. Entrance/Monument Sign Update 9. Other Business 10. Adjournment [DOVE' 4 18 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100 FAX (763) 755 -8923 • WWW.ANDOVERMN.GOV TO: Economic Development CC: Jim Dickinson, City Administrator FROM: Michelle Hartner, Deputy City SUBJECT: Approval of Minutes DATE: November 20, 2012 INTRODUCTION The following minutes were provided by Staff reviewed by Administration and submitted for EDA approval: November 7, 2012 Regular November 7, 2012 Closed DISCUSSION The minutes are attached for your review. ACTION REQUIRED The EDA is requested to approve the above minutes. Respectfully submitted, i /),� Michelle Hartner Deputy City Clerk Attach: Minutes ANDOVER ECONOMIC DEVELOPMENT AUTHORITY MEETING NOVEMBER 7, 2012 - MINUTES 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 A meeting of the Andover Economic Development Authority was called to order by President Mike Gamache, November 7, 2012, 6:01 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. Present: Commissioners Sheri Bukkila, Tony Howard, Mike Knight, Julie Trude (arrived at 6:06 pm), Robert Nowak and Joyce Twistol Absent: None Also present: Community Development Director, David Carlberg Executive Director, Jim Dickinson Public Works Director /City Engineer, Dave Berkowitz APPROVAL OF MINUTES October 16, 2012, Regular Meeting: Correct as presented. Motion by Twistol, Seconded by Bukkila, approval of the Minutes as presented. Motion carried unanimously. APPROVE LMCIT LIABILITY COVERAGE Mr. Dickinson stated the League of Minnesota Cities Insurance Trust (LMCIT) has requested that participating EDA's annually decide whether or not to waive the statutory tort liability limits established by Minnesota Statutes 466.04. Currently the City of Andover EDA Does Not Waive the monetary limits on municipal tort liability established by Minnesota Statutes 466.04. It is his recommendation to continue with past practices. Motion by Bukkila, Seconded by Twistol, to approve the LMCIT Liability Coverage and to not waive the monetary limits on tort liability established by Minnesota Statutes 466.04. Motion carried unanimously. APPROVE LAND PURCHASE A GREEMENTIMA RD 0 T PROPERTIES /PID #33- 32- 24 -13- 0046 47 Mr. Dickinson stated the EDA authorized staff to negotiate with Mardot Properties on the Andover Economic Development Authority Meeting Minutes — November 7, 2012 Page 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 property located at 13725 Crosstown Drive. Part of the negotiation was to examine the environmental related issues. There is a contingency section in the purchase agreement regarding environmental issues. There was a leak back in the 1990's, they did receive a No Further Action Letter from the Minnesota Pollution Control Agency regarding the leak in 1999. Mr. Dickinson indicated there is some soil contamination and about the only reason something would need to be done to that area is if residential housing was placed on the property. Mr. Dickinson stated the purchase agreement is for $430,000 and Mardot will be covering the current outstanding assessments. The City will be doing the demolition and tank removal. Mr. Dickinson indicated Mardot is motivated to close by December 31, 2012 with the termination of the current leases. If lease termination does not happen by the end of the year closing would take place in March 2013. Mr. Dickinson stated the purchase agreement has been signed by Mardot. The City Attorney and Administration recommend the approval of the purchase agreement. Commissioner Trade asked about demolition. Mr. Dickinson replied demolition would take place in the spring or summer, depending on the closing date. Commissioner Nowak asked what the cost of demolition would be. Mr. Dickinson indicated approximately $15,000 for the building and $20,000 per tank removal. There are three tanks on the property. The budget for the demolition and related professional services was originally set at $110,000. Commissioner Knight asked about marketing the property. Mr. Dickinson indicated in order to market the EDA would need a critical mass. Mr. Carlberg stated when the property is ready it would be marketed on the City website and North Metro MSP. Motion by Trade, Seconded by Knight approving the purchase agreement with Mardot properties as presented and for the President and Executive Director to move forward toward closing. Motion carried unanimously. ANDOVER COMMUNITY CENTER/YMCA FINANCING DISCUSSION Mr. Dickinson stated there is potential to refinance the Community Center Lease Revenue Bonds. The City would save money by changing the Lease Revenue Bonds to General Obligation Debt. To do this the City would need to own the Community Center instead of the EDA. Mr. Dickinson indicated staff has researched the options and one option that could be used is Recreational Facility Tax Abatement. It is abating the taxes on a number of properties in the community and utilizing that to pay the debt. Mr. Dickinson reviewed the refinancing process. Andover Economic Development Authority Meeting Minutes — November 7, 2012 Page 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 Mr. Dickinson indicated the current YMCA sub -lease would become a lease. By refinancing the Community Center the YMCA would also save money. Mr. Dickinson indicated all EDA lease revenues under his proposal will be gone in 2014, at the call date. President Gamache asked about financing for a possible Community Center expansion. Mr. Dickinson replied there are multiple options such as the Recreational Facility Tax Abatement, Capital Improvement Plan Bonds, or Gross Revenue Bonds. PARKSIDE AT ANDOVER STATION UPDATE Mr. Carlberg indicated staff has been working through a purchase agreement with Cherrywood Advanced Living, however with the land price and utility costs Cherrywood is approximately $200,000 above their project budget. He stated Cherrywood has not done a project within the seven county metro area and now have to deal with the Met Council regarding SAC. Staff is looking for direction from the EDA. Mr. Dickinson indicated the land price is set at market rate. He suggested a closed session if the EDA would like to discuss land price. The EDA indicated they would do that at the end of the meeting. Mr. Carlberg indicated Capstone Homes would like to amend the current PUD to include a two - story style home with a full basement and a split -entry home with a full basement. There are several lots that would accommodate these types of homes. Mr. Carlberg asked the EDA if they are comfortable with the amendment request. The EDA agreed the amendment request was acceptable to them. The public hearing will be held at the November 13, 2012 Planning and Zoning meeting. Mr. Carlberg indicated Capstone is ahead of schedule of taking down lots. Mr. Dickinson stated he would be attending the closing for two lots on November 8, 2012. Capstone has indicated they may be taking down up to four more lots by the end of the year. EDA ACTIVITY— PROJECT STATUS UPDATE Entrance Signs — The sign location on Bunker Lake Boulevard (east side) has been staked. The EDA should take a look at the location for approval so Demars Signs can move forward with putting the sign up. Additional LED lights have been placed in the reader board on Crosstown/Bunker Lake Boulevard. The sign is slightly brighter. The EDA agreed to replace the beige sign with a white sign. OTHER BUSINESS Andover Economic Development Authority Meeting Minutes —November 7, 2012 Page 4 1 2 3 4 5 6 7 8 9 10 11 12 13 The EDA recessed at 6:50 p.m. to go into a closed session to discuss Property Negotiations at the Parkside at Andover Station North Development. The EDA reconvened at 7:00 p.m. from the closed session. ADJOURNMENT Motion by Howard, Seconded by Bukkila to adjourn. Motion carried unanimously. The meeting adjourned at 7:00 p.m. Respectfully submitted, Michelle Hartner, Recording Secretary r DOVE ' R '01 . 1685 CROSSTOWN BOULEVARD N.W.. ANDOVER, MINNESOTA 55304 • (763) 755 -5100 FAX (763) 755 -8923 • WWW.CI.ANDOVER.MN.US TO: President and Commissioners FROM: Jim Dickinson, Executive Director SUBJECT: Discuss /Approve Resolution Authorizing Termination of a Lease Agreement, and Authorizing Execution of an Escrow Agreement Relating to the Issuance by the City of Andover, Minnesota, of its $17,400,000 Taxable General Obligation Abatement Bonds, Series 2012C DATE: December 4, 2012 INTRODUCTION As part of the 2013 Budget development process the City continually reviews past debt issuances to determine if there are refinancing opportunities that could produce potential long term debt service savings. This agenda item is in response to an opportunity to refinance the Andover YMCA/ Community Center Bonds. DISCUSSION City Staff and Ehlers and Associates, the City's fiscal advisor, have reviewed the following bonds: Description Governmental Activities General Obligation Bonds 2004 EDA Public Facility Lease Rev (a) 2006 EDA Public Facility Lease Rev Refunding (a) 2007 EDA Public Facility Lease Rev Refunding (a) Date of Rate of Original Issue Maturity Interest Issued 2.125- 4/23/2004 2/1/2014 5.400% 19,580,000 12/1/2006 2/l/2034 4.004.50% 10,000,000 1/1/2007 2/1/2034 4.004.50% 6,865,000 The aforementioned bonds were issued finance the construction of the Andover YMCA/Community Center. City Staff and Ehlers, in an effort to save long term debt service expense through a unique financing method, have recommended the City Council abate property taxes levied by the City on the property benefited by or in close proximity to the Andover YMCA/Community Center (this would include parcels within 3/4 of a mile). The taxes proposed to be abated by the City on the specific properties would be for up to a 20 year period, and is estimated to be not more than $19,000,000. The City Council at the December 4 th City Council will be issuing $17,400,000 Taxable General Obligation Tax Abatement Bonds, Series 2012C to finance acquisition of the community center from the Economic Development Authority (EDA) of the City of Andover. The EDA will then use the proceeds to pay off the Lease Revenue bonds that originally financed the Andover YMCA/Community Center, in return to the City the EDA is requested to terminate the lease agreement with the City to facilitate the transaction. BUDGET IMPACT Through the use of tax abatement, the City will have the opportunity to save long term debt service expense. ACTION REQUESTED The EDA is asked to: Approve the attached "Resolution Authorizing Termination of a Lease Agreement and Authorizing Execution of an Escrow Agreement Relating to the Issuance by the City of Andover, Minnesota, of its $17,400,000 Taxable General Obligation Abatement Bonds, Series 2012C" y submitted, - Resolution EXTRACT OF MINUTES OF A MEETING OF THE BOARD OF COMMISSIONERS OF THE ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF ANDOVER, MINNESOTA HELD: 2012 Pursuant to due call and notice thereof, a regular or special meeting of the Board of Commissioners of the Economic Development Authority of the City of Andover, Anoka County, Minnesota, was duly held at the City Hall on 2012, at o'clock P.M., for the purpose, in part, of authorizing termination of documents relating to a refunding. The following members were present: and the following were absent: Member introduced the following resolution and moved its adoption: RESOLUTION AUTHORIZING TERMINATION OF A LEASE AGREEMENT, AND AUTHORIZING EXECUTION OF AN ESCROW AGREEMENT RELATING TO THE ISSUANCE BY THE CITY OF ANDOVER, MINNESOTA, OF ITS $17,400,000 TAXABLE GENERAL OBLIGATION ABATEMENT BONDS, SERIES 2012C A. WHEREAS, the City of Andover, Minnesota (the "City ") proposes to issue its $17,400,000 Taxable General Obligation Abatement Bonds, Series 2012C (the "Bonds ") to finance the acquisition of the community center (the "Community Center ") from the Economic Development Authority of the City of Andover, Minnesota (the "Authority "); and B. WHEREAS, the proposed purchase price for the Community Center is an amount equal to the outstanding principal of and interest on the Authority's $10,000,000 original principal amount Public Facility Lease Revenue Refunding Bonds, Series 2006 (City of Andover Community Center), dated December 1, 2006 (the "Prior 2006 Bonds ") issued pursuant to a Mortgage and Security Agreement and Indenture of Trust dated as of December 1, 2006 (the "Prior 2006 Indenture ") and on the Authority's $6,865,000 original principal amount Public Facility Lease Revenue Refunding Bonds, Series 2007A (City of Andover Community Center), dated January 1, 2007 (the "Prior 2007 Bonds ") issued pursuant to a First Supplemental Indenture and Amendment to Mortgage dated as of January 1, 2007 (the "Prior 2007 Indenture "). NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF ANDOVER, MINNESOTA, as follows: 1. Callable Prior 2006 Bonds $10,000,000 aggregate principal amount of the Prior 2006 Bonds which matures on and after February 1, 2015, is callable on February 1, 2014 (the "Callable Prior 2006 Bonds "), the refunding of the Callable Prior 2006 Bonds is consistent with covenants made with the holders of the Prior 2006 Bonds. 5049687vl 2. Callable Prior 2007 Bonds $6,865,000 aggregate principal amount of the Prior 2007 Bonds which matures on and after February 1, 2015, is callable on February 1, 2014 (the "Callable Prior 2007 Bonds "), the refunding of the Callable Prior 2007 Bonds is consistent with covenants made with the holders of the Prior 2007 Bonds. 3. Escrow Agreement The Callable Prior 2006 Bonds and the Callable Prior 2007 Bonds shall be redeemed and prepaid in accordance with the terms and conditions set forth in the Escrow Agreement, dated as of December 27, 2012 (the 'Escrow Agreement ") by and between the City, the Authority and U.S. Bank National Association, in Saint Paul, Minnesota (the 'Escrow Agent "), in substantially the form submitted to the Board of Commissioners. The terms and conditions of the Escrow Agreement are hereby approved and incorporated herein by reference. The Authority hereby approves the execution of the Escrow Agreement by the President and Executive Director on behalf of the Authority. 4. Prepayment of Purchase Option Price As provided in Section 4.6 of the Lease Agreement between the City and the EDA, dated as of December 1, 2006 (the "Lease ") to prepay the Purchase Option Price (as defined in the Lease), the Authority hereby determines and declares that upon the issuance of the Bonds and the funding of the Escrow Deposit as provided in the Escrow Agreement and the Lease Agreement shall be terminated and the Authority shall have no further right, title or interest in and to the Community Center. 5. Severability If any section, paragraph or provision of this resolution shall be held to be invalid or unenforceable for any reason, the invalidity or unenforceability of such section, paragraph or provision shall not affect any of the remaining provisions of this resolution. 6. Headings Headings in this resolution are included for convenience of reference only and are not a part hereof, and shall not limit or define the meaning of any provision hereof. The motion for the adoption of the foregoing resolution was duly seconded by member and, after a full discussion thereof and upon a vote being taken thereon, the following voted in favor thereof: and the following voted against the same: Whereupon the resolution was declared duly passed and adopted. 5049687v1 STATE OF MINNESOTA COUNTY OF ANOKA ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF ANDOVER I, the undersigned, being the duly qualified and acting Executive Director of the Economic Development Authority of the City of Andover, Minnesota, do hereby certify that I have compared the attached and foregoing extract of minutes with the original thereof on file in my office, and that the same is a full, true and complete transcript of the minutes of a meeting of the Board of Commissioners, duly called and held on the date therein indicated, insofar as the minutes relate to authorizing termination of a lease agreement and ground lease agreement and calling prior bonds. WITNESS my hand on 2012. Executive Director 5049687v1 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100 FAX (763) 755 -8923 • WWW.CI.ANDOVER.MN.US TO: President and Commissioners FROM: Jim Dickinson, Executive Director SUBJECT: Discuss /Approve 2013 EDA Budget DATE: December 4, 2012 INTRODUCTION The EDA is requested to receive a brief presentation on the proposed 2013 Special Revenue Fund budget. DISCUSSION The Executive Director will use the attached documents as the basis for the 2013 EDA Budget presentation and to facilitate discussion: 1. EDA Special Revenue Fund Statement of Revenues, Expenditures and Changes in Fund Balance 2. EDA Special Revenue Fund Budget Worksheet for 2013 3. EDA Budget Detail Worksheets ACTION REQUESTED Receive a presentation, discuss and adopt the proposed 2013 EDA Special Revenue Fund budget. 7c#1 N 00 co 00 M O O ' I CO L L O r� Re O O O ' O 00 O O O O N O O O N N ti 00 ' rn 00 d d' CA r Q r r rn O O O N O O O N N f- OD ' O O O - li O r ti r O O N r N N 01 ti 0 O M N ti CA CO O N C7 (O r 00 O 00 O r (p O r M O 00 (fl N O 1 O O M r O h CA 't r (O r N O O N r N N 0 n CA O M N ti � 0 CO O N co M ti r N a N L C) O 2 A L N m d td (` N U L N O U co a U N 2: OJ O T 41 'O 2 N (n U_ O C C: U) 0(D CD� W N O x �o c T mU) R W C co 0- U L t- .0 C w !Z L Q L Q X a) =3 O I` F I'- N r M 00 M CO Re M 0 4 1 N P- 6 r M L d V d 0 d V C R OD 7 LL N O co LO O LO LO O M �t N I- 00 ' O CO O CO 00 d' 00 M O r I r O r O O O O N O O O N N ti 00 ' rn 00 d d' CA r Q r r rn O O O N O O O N N f- OD ' O O O - li O r ti r O O N r N N 01 ti 0 O M N ti CA CO O N C7 (O r 00 O 00 O r (p O r M O 00 (fl N O 1 O O M r O h CA 't r (O r N O O N r N N 0 n CA O M N ti � 0 CO O N co M ti r N a N L C) O 2 A L N m d td (` N U L N O U co a U N 2: OJ O T 41 'O 2 N (n U_ O C C: U) 0(D CD� W N O x �o c T mU) R W C co 0- U L t- .0 C w !Z L Q L Q X a) =3 O I` F I'- N r M 00 M CO Re M 0 4 1 N P- 6 r M L d V d 0 d V C R OD 7 LL m I- 0 O O 0 0 co .a IRT m O O CO ' CO co N ti r CO ti r. O -� CA CA 0 CA 0 N O O O O N v ° o_ ° o_ 0 ° O_ v O O O O P` C) CO CO ti LL Q Q O d CL ,: co O r r M M N 4 CL ca V O r N N h C L O 7 C O G1 V � W d w � v 'O O it r N 4) � R w E 0 7 O V N COj C d 7 O 0 d 3 C N R N v-. U of O U) L 47 O U O D ~ C 2 CS R LL w U 5 : O 1� H F�- O O O O N O O O N N ti 00 ' rn 00 d d' CA r Q r r rn O O O N O O O N N f- OD ' O O O - li O r ti r O O N r N N 01 ti 0 O M N ti CA CO O N C7 (O r 00 O 00 O r (p O r M O 00 (fl N O 1 O O M r O h CA 't r (O r N O O N r N N 0 n CA O M N ti � 0 CO O N co M ti r N a N L C) O 2 A L N m d td (` N U L N O U co a U N 2: OJ O T 41 'O 2 N (n U_ O C C: U) 0(D CD� W N O x �o c T mU) R W C co 0- U L t- .0 C w !Z L Q L Q X a) =3 O I` F I'- N r M 00 M CO Re M 0 4 1 N P- 6 r M L d V d 0 d V C R OD 7 LL CITY OF ANDOVER Budget Worksheet - 2013 EDA 2110 -46500 Account Actual Actual Actual Actual Actual Budget Estimate Requested Number Description 2007 2008 2009 2010 2011 2012 2012 2013 -- Revenues 5,000 56920 Valuation Adjustment 4,016 (1,283) 1,527 1,077 5,128 _... _ Chargesfor Services. - -___ Investment Income 12,190 13,387 9,486 9,300 54370 Tax Increment Administration F 162,553 173,096 181,416 199,403 199,030 175,000 191,380 75,000 Charges for Services 162,553 173,096 181,416 199,403 199,030 175,000 191,380 75,000 1112912012 Investment Income 56910 Interest Earned 8,174 14,670 7,959 8,223 10,020 5,000 6,000 5,000 56920 Valuation Adjustment 4,016 (1,283) 1,527 1,077 5,128 Investment Income 12,190 13,387 9,486 9,300 15,148 5,000 6,000 5,000 Miscellaneous Revenue 58100 Refunds & Reimbursements 11,253 1,693 2,487 547 34,196 509 Miscellaneous Revenue 11,253 1,693 2,487 547 34,196 509 Total Revenues 185,996 188,176 193,389 209,250 248,374 180,000 197,889 80,000 Ezpeuthtures Salaries & Benefits 60110 Salaries - Regular 49,752 65,603 67,735 79,025 75,527 - - - 60140 Salaries - Council / Commissio 535 598 326 532 533 - - 5,600 60210 FICA 2,829 3,691 3,849 4,489 4,237 - - 347 60220 Medicare 689 901 924 1,063 1,020 - - 81 60310 Health Insurance 3 3,839 6,074 8,948 8,546 - - - 60320 Dental Insurance 201 260 248 326 284 - - - 60330 Life Insurance 13 15 15 12 13 - - - 60340 Long -Term Disability 127 169 172 189 167 - - - 60410 PERA 3,063 4,220 4,523 5,458 5,152 - - - 60420 Nationwide Retirement - 515 514 514 514 - - - 60990 Inter -City Labor Allocation - 99,229 99,229 103,427 Salaries& Benefits 60,725 79,811 84,380 100,556 95,993 99,229 99,229 109,455 Departmental 61005 Supplies - Geneml 493 802 1,021 546 1,149 2,000 2,000 2,000 61105 R & M Supplies - General - - - 1,202 1,483 - - - 61130 R & M Supplies - Landscape 11,226 4,093 - 1,924 830 10,000 10,000 10,000 61310 Meals / Lodging - - - - 45 700 700 700 61315 Continuing Education 250 100 - 200 - 1,500 1,500 1,500 61320 Annual Dues / Licenses 14,630 750 765 915 1,204 800 800 800 61405 Postage 784 319 1,061 506 223 1,000 1,000 1,000 61410 Transportation /Mileage 1,205 1,839 1,943 1,800 1,882 2,200 2,200 2,200 Departmental 28,588 7,903 4,790 7,093 6,816 18,200 18,200 18,200 Operating 62005 Electric - - 7,134 5,172 4,861 8,000 8,000 8,000 62100 Insurance 2,239 2,190 2,537 4,738 2,873 5,250 5,250 5,250 62200 Rentals - - - 2,563 1,924 - - - 62210 Computer Services 1,500 1,545 1,600 1,600 1,600 1,600 1,600 1,600 Operating 3,739 3,735 11,271 14,073 11,258 14,850 14,850 14,850 Professional Services 63005 Professional Services 1 1,550 5,656 3,464 9,917 5,200 5,200 5,250 63010 Contractual Services 17,236 12,533 14,244 17,046 32,576 67,000 95,000 69,000 63015 Attorney - 619 1,810 - 197 2,000 2,000 2,000 63025 Publishing 947 816 25 988 971 2,500 2,500 2,500 63100 R & M Labor - General 3,282 1,950 - - - - - - 63200 Inspections 156 23 35 24 Professional Services 23,586 17,491 21,770 21,522 43 76,700 104,700 78,750 Capital Outlay 65200 Buildings - - - - 21,683 - - - 65300 Improvements 38,327 Capital Outlay 60,010 Total Expenditures 116,638 108,940 122,211 143,244 217,738 208,979 236,979 221,255 Net Increase (Decrease) in FB 69,358 79,236 71,178 66,006 30 (28,979) (39 (141,255) Fund Balance Beginning 181,058 250,416 329,652 400,830 466 497,472 497,472 458,382 Ending 250,416 329,652 400,830 466,836 497,472 468,493 458,382 317,127 1112912012 City of Andover Budget Detail for all Object Codes (List each expense account individually with specific cost detail) Department / Cost Center: Economic Development - 2110 Object Code Explanation Amount Requested Total 2013 Request Priority 1 through 5 1-high 6-low 2012 Budget 1 2013: Adjustment 61005 SUPPLIES - GENERAL 2,000 2,000 paper /promotions supplies 0 0 0 0 Total 2,000 0 2,000 61130 R & M SUPPLIES - LANDSCAPE 0 0 median expenditures 10,000 10,000 0 0 Total 10,000 0 10,000 61310 MEALS / LODGING 700 700 Special events participation - Staff /Commission 0 0 01 0 Total 700 0 700< 61315 CONTINUING EDUCATION 1,500 1,500 Training opportunities - Staff /Commission 0 0 0 0 Total 1,500 f 0 1,500 61320 ANNUAL DUES / LICENSES 800 800 Chamber of Commerce Dues 0 0 -Anoka Area & Metro North 0 0 0 0 Total 800 0 800 61405 POSTAGE 1,000 1,000 Newsletter Publication & Mailings 01 1 0 0 0 Total 1,000 0 1,000 61410 TRANSPORTATION / PARKING 2,200 2,200 Staff / Commision Travel 0 0 Executive Director % allocation 0 0 01 0 Total 2,200 0 2,200' 62005 ELECTRIC 8,000 8,000 Andover Station Area Street Light Cost Sharing 0 0 0 0 Total 8,000 0 8,000 62100 INSURANCE 5,250 5,250 Risk Management/LMCIT Premiums 01 0 0 0 Total 5,250 0 5,250 62210 COMPUTER SERVICES 1,600 1,600 Central systems - Server /email /imaging /etc. 0 0 0 0 Page 1 of 2 City of Andover Budget Detail for all Object Codes (List each expense account individually with specific cost detail) Department / Cost Center: Economic Development - 2110 Object Code Explanation Amount Requested Total 2013 Request Priority 1 through 5 1 -high : 5 -low 2012 Budget 2013 Adjustment Total 1,600 0 1,600' 63005 PROFESSIONAL SERVICES 3,500 3,500 Audit and Financial Services 1,700 50 1,750 0 0 Total 5,200 50 5,250 63010 CONTRACTUAL SERVICES 1,000 1,000 Landscaping @ Andover Station - assoc membership 2,000 2,000 Maintenance -Andover Station Area 20,000 20,000 Partnership opportunities - EDA Discretionary 16,000 16,000 Community Monument Entrance Signs 28,000 1 2,000 30,000 Total 67,000 2,000 69,000 63015 ATTORNEY 2,000 2,000 0 0 0 0 Total 2,000 0 2,000' 63025 PUBLISHING 2,500 2,500 Tax Increment Reporting 0 0 0 0 Total 2,500 0 2 Grand Total for all Expenditures $109,750 $2,050 $111,800 Page 2 of 2 L C I T Y 0 F ^ 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100 FAX (763) 755 -8923 • WWW.CI. ANDOVER. MN.US TO: President and Commissioners Jim Dickinson, Executive Director FROM: David L. Carlberg, Community Development Director SUBJECT: Parkside at Andover Station Update DATE: December 4, 2012 INTRODUCTION The EDA is requested to receive an update from the Community Development Director on recent developments at Parkside at Andover Station. DISCUSSION Capstone Homes has acquired six lots from the EDA, the last two lots closed on November 8th. The Purchase Agreement with Capstone Homes called for the takedown of an additional lot within 120 days of the date of the closing of the initial sale of the two lots which was June 1, 2012, and an additional lot every 45 days thereafter (5 lots to be acquired by December 31, 2012). Therefore, Capstone Homes is ahead of the take down schedule. Capstone Homes has requested a building permit to build a two story unit and will close on that lot by the end of the year bringing the total to 7 lots acquired. Staff continues to negotiate with Cherrywood Advanced Living on the acquisition of 1.8 acres to build a 20 unit senior housing project. General agreement has been reached on the purchase price and related development costs. Architectural style and materials of the building construction are being evaluated to insure the project fits into the surrounding neighborhood/community. ACTION REQUESTED Receive presentation and provide input if necessary. Respectfully submitted, David L. Carlberg A NDOVER ' op T Y O F (00 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100 FAX (763) 755 -8923 • WWW.CI.ANDOVER.MN.US TO: President and Commissioners Jim Dickinson, Executive Direct FROM: David L. Carlberg, Community Development Director SUBJECT: Tax Forfeiture Property — 1049 Andover Boulevard NW DATE: December 4, 2012 INTRODUCTION The EDA is requested to discuss the City's interest in the tax forfeiture property located at 1049 Andover Boulevard NW. DISCUSSION Anoka County has recently contacted Andover staff regarding the land forfeiture property at 1049 Andover Blvd, Andover, MN. It is zoned RI Single Family -Rural and is a 4.5 acre parcel located directed west of the BNSF railroad tracks. In 2005, the City of Andover abated a hazardous structure on the parcel. The certified principle amount is $31,200.00. There are no other pending special assessments. Chapter 282.01, Subdivision 1, of the Minnesota Statutes requires that the governing body of a municipality must approve the classification -and sale of forfeit parcels that lie within their jurisdiction. If the City of Andover desires to acquire the parcel it must approve the classification and sale of the parcel no later than January 2, 2013 and file a written application with the county board to withhold the parcel from sale for six (6) months. If the city fails to acquire the property within the withholding period, the county may offer it for sale upon the expiration of the withholding period; however, the city may have to pay maintenance costs incurred by the county ( if any) during the six (6) months the property is withheld from public sale. During the six (6) month withholding period, the city would need to decide the intended purpose of the property. Chapter 282.01, Subdivision 1A, of the Minnesota Statutes explains the different ways land forfeiture property can be purchased which is determined by the intended use of the property. Lands can be purchased for an authorized public use, full market value, or less than market value. Authorized Public Use: The parcel can be purchased for an authorized public use, such as: a road, or right -of -way road; a park that contains improvements; trails for walking, biking, etc; transit facilities; public parking; and public service facilities. If after three (3) years from the date of conveyance, if the city fails to put the land to public use, the city will be required to purchase the land for its full market value or turn the land over to the state of Minnesota. Market Value: The parcel can be purchased for "market value" which means an estimate of the full and actual market value of the parcel as determined by Anoka County. When purchased this way, the city has the authority to determine what the parcel will be used for. Less than Market Value: The parcel can be purchased for less than market value if the county determines that a sale at a reduced price is in the public interest because a reduced price is necessary to provide an incentive to correct the blighted conditions that make the lands undesirable in the open market, or the reduced price will lead to the development of affordable housing. ACTION REQUESTED The EDA is requested to discuss the City's interest in the property and recommend to the City Council the acquisition of the property if so desired. Attachments Aerial Map of 1049 Andover Blvd Respectfully submitted, David L. Carlberg � : 2 <� : � <� : \ y� j �� \ � ;� « a <a r Y ♦r - A la�vr 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100 FAX (763) 755 -8923 • WWW.CI.AN DOVER. MN.US TO: President and Commissioners Jim Dickinson, Executive Director FROM: David L. Carlberg, Community Develop nt Director SUBJECT: 2013 CDBG Application DATE: December 4, 2012 INTRODUCTION The City Council discusses and directs the application for Community Development Block Grant funds. However, since the 2012 application involved requesting funds for the Crosstown/Bunker redevelopment area, staff thought it appropriate that the EDA be a part of the discussion in considering the 2013 application. 2013 CDBG applications are due at Anoka County on January 14, 2013. The city needs to determine if it will submit applications for this round of CDBG funding. DISCUSSION CDBG Program Criteria The attached information from the Anoka County web site provides a summary of CDBG program criteria. Step one on this attachment shows the types of projects that are eligible. Due to the competitive nature of the process, any application that does not benefit low to moderate income people will have difficulty being funded. A list of recently funded projects throughout the county is also attached. The maximum grant amount is $300,000. The minimum grant amount is $10,000. Recent CDBG History In 2012 the City requested $200,000 to purchase and demolish a four -plex in the Crosstown/Bunker Redevelopment Area. The project was not funded. In 2011, the city was successful in obtaining $150,000 in funding for water connection assistance for the new water main along 138 Avenue and Xavis St NW. Due to lack of interest in reinvestment in these properties by their owners the funds were transferred to the 140 Lane water main construction project that was constructed in 2012. An additional $53,285 in existing CDBG funds was also transferred to this project fund. In 2009 and 2010, the city was successful in obtaining $150,000 each year for the construction of water main along 138 Avenue and Xavis Street NW. This project has been completed and the balance transferred as noted above. In 2008, the city was unsuccessful in obtaining $50,000 to secure and abate foreclosed properties. In 2007, the city was successful in obtaining an additional $50,000 for the housing rehabilitation revolving loan fund. In 2006, the city was successful in obtaining $29,000 for updating the Comprehensive Plan. In 2005, the city was unsuccessful with two applications. The first was an economic redevelopment subsidy application for $250,000. The second was $50,000 to fund a position at the YMCA for youth and senior programs. In 2004, the city was successful in obtaining $157,000 in funds reallocated from projects outside the city for construction of the Community Center. Applications for an Economic Development revolving loan fund and housing rehabilitation were not funded that year. In 2003, a modified version of the Bunker Lake Boulevard redevelopment loan fund application was approved to establish the housing rehabilitation revolving loan fund ($47,000). Also that year, applications for a youth development program ($52,300), Andover Boulevard trail construction ($150,000), Zoning Ordinance update ($8,000) were unsuccessful. ACTION REQUESTED The EDA is asked to discuss CDBG project ideas. Attachments CDBG Program Criteria Recently Funded Projects Respectfully submitted, jj Z)�J /' 6 David L. Carlberg CDBG requirements Page 1 of 2 Community Development > Doing Business with Community Development > Funding and Financing Opportunities > Community Development Block Grant (CDBG) funding General CDBG Program Requirements While there are many aspects to consider when selecting potential CDBG program activities, three key questions need to be asked and answered in order to determine if CDBG funds may be used: Step 1 - Does the activity fit one of the categories listed as an eligible activity? • Acquisition of Real Property • Disposition of Real Property • Public Facilities and Improvements • Clearance /Demolition • Public Services • Relocation • Loss of Rental Income • Privately -owned utilities • Rehabilitation • Construction of Housing • Code Enforcement • Special Economic Development Activities • Microenterprise Assistance • Homeownership Assistance • Planning and Capacity Building • Other Miscellaneous Activities (i.e., Accessibility Improvements, Technical Assistance, Housing Assistance, etc.) Step 2 - Does the activity fall within a category of explicitly ineligible activities, despite its apparent inclusion in an eligible activity category? • Buildings or portions thereof, used for the General Conduct of Government • General Government Expenses • Political Activities • Purchase of Equipment • Furnishings and Personal Property • Operating and Maintenance Expenses • New Housing Construction • Income Payments http : / /ww2.anokaeounty.us /v3_cd/ doing- business /CDBGrequirements.aspx 11/28/2012 CDBG requirements Page 2 of 2 Step 3 - Does the proposed activity meet one of the National Objectives of the CDBG program? • Benefiting low- and moderate - income persons • Preventing or eliminating slums or blight • Meeting an urgent community development need Additional things to consider: • CDBG funds are intended to be used to start a new program /project, expand an existing program /project, or fund a new service of the program /project. • CDBG funds are NOT intended to be used to fund the on -going expenses of an existing program /project. • The County is required to ensure that a minimum of 70% of the funds are used to benefit low- and /or moderate - income persons. • Proposed project/program costs of the activity must be necessary and reasonable, and conform to HUD requirements. • HUD limits the amount of the grant that can be used to fund public services and /or planning projects. • The County must ensure that funds are awarded in such a manner as to meet the goals and objectives outlined in the Consolidated Plan. This page was printed from the official Web site of Anoka County Government. Copyright © Anoka County, 2100 3rd Ave, Anoka, MN 55303 763 - 421 -4760 (switchboard), 763 - 323 -5289 (TTY) http : / /ww2.anokaeounty.us /v3_cd/ doing- business /CDBGrequirements.aspx 11/28/2012 CDBG funding Page 1 of 1 Community Development > Doing Business with Community Development > Funding and Financing Opportunities Community Development Block Grant (CDBG) funding The Community Development Block Grant (CDBG) program is the federal government's primary program for promoting community revitalization throughout the country. CDBG provides annual grants on a formula basis to Anoka County. The CDBG program has three national objectives: • Benefit low- and moderate - income persons, Aid in the prevention or elimination of slums or blight, and Meet community needs that present a serious or immediate threat to the health or welfare of the community. CDBG Documents • Go to the CDBG Forms page to download Public Service and Project Application forms and other documents. • General Program Requirements • Examples of Previous CDBG Funding Recipients • For more information, go to the Web site of the U.S. Department of Housing and Urban Development, Community Development This page was printed from the official Web site of Anoka County Government. Copyright © Anoka County, 2100 3rd Ave, Anoka, MN 55303 763- 421 -4760 (switchboard), 763 - 323 -5289 (TTY) http: / /ww2.anokacounty.us /v3_cd /doing- business /CDBGfunding.aspx 11/28/2012 Examples CDBG Page 1 of 1 Community Development > Doing Business with Community Development > Funding and Financing Opportunities > Community Development Block Grant (CDBG) funding Examples of Previous CDBG Funding Recipients • Anoka County Fair Housing Activities - $5,000 • Anoka County Community Action Program (ACCAP): Manufactured Home Removal - Removal of vacant substandard manufactured homes - $125,000 • Anoka County Community Action Program (ACCAP): Senior Outreach - $20,000 • Alexandra House, Inc.: Shelter Advocacy Services - $15,000 • Anoka County Income Maintenance Department: Continuum of Care Committee Costs - $10,000 • Anoka County Mental Health Department: Medication Access Program - $25,000 • Community Emergency Assistance Program (CEAP): Needs of people financial assistance program - $15,000 • Central Center for Family Resources: Bridgeview Program - $10,000 • City of Columbia Heights: Sheffield Neighborhood Demo - $170,000 • City of Coon Rapids (Entitlement funds): Citywide home rehab program - $211,794 • Family Life Mental Health Center: Front Door Accessibility - $5,000 • Free to Be, Inc.: Emergency car repair program - $10,000 • Greater Metropolitan Housing Corporation (GMHC): Countywide Housing Rehab - $149,254 • Meals on Wheels (2 agencies): Delivery of meals to homebound persons - $39,482 • North Metro Pediatrics: Healthy Beginnings for Children - $25,000 • North Suburban Counseling Center: Discretionary Co- Payments - $10,000 • Nucleus Clinic: Operating Expenses - $20,000 • Rise, Inc.: Bldg. Improvement at 1130 Lund Blvd. site - $31,085 • Southern Anoka Community Assistance (SACA): Food shelf and other services - $15,000 • Twin Cities Housing Development Corporation: Northgate Woods Apts. Rehab - $295,000 • YMCA of Metro Minneapolis: Youth Initiative in Coon Rapids - $25,000 This page was printed from the official Web site of Anoka County Government. Copyright © Anoka County, 2100 3rd Ave, Anoka, MN 55303 763 -421 -4760 (switchboard), 763- 323 -5289 (TTY) http : / /ww2.anokacounty.us /v3_cd/ doing- business /CDBGExamples.aspx 11/28/2012 A,Lb 6, Y � , Ae"' 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100 FAX (763) 755 -8923 • WWW.CI. ANDOVER. MN. US TO: President and Commissioners Jim Dickinson, Executive Direct FROM: David L. Carlberg, Community Development Director SUBJECT: Entrance/Monument Sign Update DATE: December 4, 2012 INTRODUCTION The EDA is requested to receive a presentation from the Community Development Director at the meeting. DISCUSSION Monument Entrance Signs and Other Electronic Reader Board Signs Round Lake Boulevard Location — monument only • Sign has been installed as of Wednesday, November 21 The lit cabinet was designed with the white background to insure maximum visibility. Aircon Electric has provided electrical service to the sign. Staff is currently working with Connexus Energy to provide power from the transformer to the electrical pedestal installed by Aircon Electric. Crosstown/Bunker Location — monument with electronic reader board • The beige lit cabinet will be switched out to a white background. The "Welcome to" is also being removed. • Kameron Kytonen is working on a landscape plan. Bunker Lake Boulevard East Sign Location — monument only • Sign location has been marked. Demars Sign is fabricating the sign in their shop. The Connexus Energy electrical service application has been completed and submitted. ACTION REQUESTED Receive a presentation and provide direction to staff if necessary. Respectfully submitted, David L. Carlberg