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HomeMy WebLinkAboutEDA September 5, 2006 ~NDOvE~ ~L_ 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US ECONOMIC DEVELOPMENT AUTHORITY MEETING September 5, 2006 6:00 p.m. Conference Rooms A & B AGENDA 1. Call to Order - 6:00 p.m. 2. Approval of Minutes (8/15/06 Regular Mtg.) 3. Review Purchase Agreement / Tracy Sonterre 4. Letter ofIntent / Office Building Proposal 5. Letter ofIntent / Funeral Home Proposal (Continued) 6. Update on Economic Development Activities 7. Other Business 8. Adjourn .. ..,. . ,. ~- 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 September 5, 2006 6:00 p.m. Conference Rooms A & B AGENDA 1. Call to Order - 6:00 p,m. 2. Approval of Minutes (8/15/06 Regular Mtg.) 3. Review Purchase Agreement / Tracy Sonterre 4. Letter of Intent / Office Building Proposal 5. Letter ofIntent / Funeral Home Proposal (Continued) 6. Update on Economic Development Activities 7. Other Business 8. Adjourn CITY OF NDOVE @ 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: September 5, 2006 INTRODUCTION The following minutes were provided by Staff for approval by the EDA: August 15,2006 Regular Meeting The following minutes were provided by TimeSaver for approval by the EDA: August 15,2006 Regular Meeting, Cont. DISCUSSION Attached are copies of the minutes for your review. ACTION REOUIRED The EDA is requested to approve the above minutes. Respectfully submitted, U- drib Vicki V olk City Clerk ANDOVER ECONOMIC DEVELOPMENT AUTHORITY MEETING AUGUST 15,2006 - MINUTES A meeting of the Andover Economic Development Authority was called to order by President Mike Gamache at 6:00 p.m., Tuesday, August 15,2006 at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. Commisisoners Present: Don Jacobson, Mike Knight, Ken Orttel, Julie Trude, Joyce Twistol, Robert Nowak Edward Schultz, Advisor to the EDA Jim Dickinson, Executive Director Will Neumeister, Community Development Director Dave Berkowitz, City Engineer Others Commissioners Absent: Also Present: AGENDA APPROVAL Add to agenda: Monument Signs at Andover Station North and the Resource Guide. Table Item 8, Review Proposed Signs at Andover Station. APPROVAL OF MINUTES-JULY 18.2006 Page 4, fIrst paragraph should be $100,000, not $158,000. Motion by Knight, seconded by Jacobson to approve the minutes of July 18, 2006 as amended. Motion carried. PURCHASE AGREEMENT (MICHAEL CASEY) Motion by Trude, seconded by Jacobson to move the refund. Mike Casey thanked the EDA, Will Neumeister and Jim Dickinson for the opportunity he had. He spoke to B&B Carpet and tried to get them to come to Andover, but it was not in their plan. Commissioner Trude thought we could still see something like Mr. Casey's proposal come to Andover. Motion carried unanimously. Economic Development Authority Meeting August 15, 2006 - Minutes Page 2 DISCUSS ANDOVER STATION LIST OF ALLOWABLE USES. CONT. Mr. Newneister explained that there is a request for a modification to the allowable uses list to include funeral home and crematoriwn. At the June EDA meeting there was discussion whether the site they have asked for would be better for a larger office complex and staffwas directed to contact Great River Energy to see if that property was an option. Great River has indicated that they do not wish to sell any property at this time. President Gamache asked if the change to the allowable uses list is only for Andover Station North. Mr. Neumeister replied that it is. Commissioner Trude stated that she spoke to Greg Schlink of Bruggeman Homes. The plan for this area was for commercial, retail and a restaurant. If you change your vision and the list, you can change the outcome. Commissioner Trude stated she asked Mike Mulrooney if a funeral home would deter us from getting a restaurant and he said yes. President Gamache asked ifhe has an explanation as to why it would be a deterrent. Commissioner Trude noted that it's just the image. Commissioner Jacobson felt that if we're going to have a funeral home, this is the place for it. Bruggeman isn't really against it as long as there is not huge signage. This is the last spot in the city for a funeral home. Commissioner Trude stated there is no other place in the city for a restaurant. Commissioner Orttel asked what happened to the idea of putting it in the northeast comer of Andover Station North. Mr. Newneister stated he spoke to Mr. Karasch and he was not interested in that site. He wanted the exposure of Jay Street. Commissioner Knight explained that information from the public indicates they want a decent sit-down restaurant. He would hesitate to jeopardize that. Commissoner Twistol felt that the EDA is hung up on the word crematoriwn. In other cities they are called cremation services. She likes the building and would like to see a funeral home in the city where she lives. Commissioner Nowak noted that in Brooklyn Park there is a funeral home as well as restaurants nearby. Mr. Dickinson noted that Andover Station North isn't the only location for a restaurant. Others include Clocktower Commons, the Fairbanks property and Andover Station South. The Fairbanks property is however, fairly full. Mr. Newneister explained that the site north of the bank is not the first choice of any restaurant people. He has talked to Economic Development Authority Meeting August 15,2006 - Minutes Page 3 restaurant people and they don't want to be behind another building; they want the frontage on Bunker Lake Boulevard. President Gamache stated that his concern is marketing and if we should start marketing the site on Jay and Hanson for a restaurant. He asked if we change the list of allowable uses to include a funeral home and crematorium, do we have to allow it? Mr. Dickinson stated it just says it's an allowable use. Mr. Karasch explained how many funeral homes are located near restaurants. Commissioner Knight stated that one of the reasons we are not getting a restaurant is because we don't have the daytime trade. Motion by Jacobson, seconded by Twistol to add to the list of allowable uses a funeral home and crematorium. It was noted that the funeral home would be an allowable use but the crematorium would require a Conditional Use Permit. Vote on Motion: Yes - Twistol, Nowak, Jacobson, Orttel, Knight; No - Gamache, Trude. Motion carries. LETTER OF INTENT - REVIEW FUNERAL HOME PROPOSAL, CONT. Commissioner Jacobson noted that Page 10 deals with confidentiality and he asked if we can keep this in confidence if we are a public body. Mr. Dickinson stated that the confidentiality clause is a standard item in most letters of intent. Mr. Karasch explained that if the purchaser can't get this site, he has another opportunity to pursue. Commissioner Trude stated there is a vacant site on Round Lake Boulevard north of Tasty Pizza that might work.. Mr. Neumeister noted that a funeral home would not be allowed at that site. Motion by Jacobson, seconded by Nowak that we accept the proposal for Lot 2, Block 3, Andover Station North. Vote on Motion: Yes - Twistol, Nowak, Jacobson; No - Knight, Gamache, Orttel, Trude. Motion fails. Economic Development Authority Meeting August 15,2006 - Minutes Page 4 Motion by Gamache, seconded by Trude to recess the EDA meeting for not less than one hour. Motion carried. Meeting recessed at 7:00 pm. Respectfully submitted, Vicki V olk City Clerk ANDOVER ECONOMIC DEVELOPMENT AUTHORITY MEETING, CONTINUED AUGUST 15,2006 - MINUTES The EDA reconvened at 8:36 p.m. LETTER OF INTENT - REVIEW DAY CARE PROPOSAL (TRACY SONTERRE) Community Development Director Neumeister stated a Letter of Intent has been submitted for approximately the south half of the parcel located northeast of Bruggeman Townhomes along Jay Street. StafIis of the opinion that this is a strong proposal as it provides a transition to the townhomes and will have a residential look to the building. Commissioner Trude asked if there is a better way to place a cross easement rather than next to the pond. She asked if it will be done nice and not just concrete up to the edge. Mr. Berkowitz stated this is a mitigated wetland area and the pond is further over than it looks. Commissioner Orttel asked if there will be posts or something for safety of driving. Mr. Berkowitz indicated the wetland does not have that much water in it. Commissioner Jacobson asked if the property owner will be paying entirely for the driveway. Mr. Neumeister stated as they work on another parcel, if they are making improvements to an evasive property that the EDA still owns, they may be putting that improvement into the ground just to make it work for the potential buyer. Commissioner Orttel asked if they will be charging for it. Mr. Neumeister indicated it will be charged for later because it will be something they will benefit by. Commissioner Jacobson stated the daycare will be using the driveway also and will have a cross access and he wondered if this is included in the cost. Mr. Neumeister stated it is. Motion by Jacobson, Seconded by Knight, to approve the letter of intent for Tracy Sonterre for the Day Care Center. Commissioner Orttel asked if they will be assessed for the driveway or ifit is included in the cost of the property. Mr. Neumeister stated it is included. Motion carried unanimously. REVIEW BASEBALL ASSOCIATION'S BUILDING PROPOSAL City Engineer Berkowitz explained a representative of the Andover Baseball Association will be present at the meeting to present the attached plans for a new service building that they would like to build this Fall at Andover Station North. Andover Economic Development Authority Meeting Minutes - August 15, 2006 Page 2 Mr. Joe Dietz of the Andover Baseball Association expressed his concern to the Commission over the Hockey Association dominating most of the gambling sites in Andover. Mr. Dietz presented a model of the proposed building and made a presentation to the Commission. Mr. Dietz noted he did not know how they will get the building done without having an establishment to accommodate their lawful gambling. Motion by Jacobson, Seconded by Orttel, to approve the building proposal. Motion carried unanimously. REVIEW PROPOSED MONUMENT SIGN AT ANDOVER STATION NORTH Community Development Director Neumeister stated staff has begun looking at various options related to construction Area Identification Signs for Andover Station North. Commissioner Knight asked if they will be paying for the full price of the sign. Mr. Neumeister stated they will because they need to get the advertising out for the businesses within the development. Mr. Dickinson indicated that signage is extremely important. They are trying to identifY the area and businesses and it is important for a business to be successful in any community. Commissioner Jacobson asked if there will be two signs. Mr. Neumeister stated there will be one at each end of the development. Commissioner Jacobson stated he did not see a problem with this except that in Andover Station South everyone wants their own sign and he did not want that to happen. President Gamache asked what the total cost of the signs will be. Mr. Neumeister stated it will be $60,000, $30,000 for each sign. President Gamache indicated he likes option one. Mr. Neumeister stated they could get more designs and costs for other ideas. UPDATE ON ECONOMIC DEVELOPMENT ACTIVITIES Community Development Director Neumeister updated the Commission on EDA activities in the City. Andover Economic Development Authority Meeting Minutes - August 15, 2006 Page 3 ANOKA AREA CHAMBER OF COMMERCE Community Development Director Neumeister stated staff has begun to prepare the "Spotlight" Article and photographs for the Resource Guide. Mr. Neumeister reviewed the information with the Commission. Commissioner Jacobson thought it will be more readable to show photos with captions under them instead of a full page of text. He thought this will be more visually appealing. Commissioner Jacobson thought the photos should have people in them and they should focus on the natural features of the City. Motion by Jacobson, Seconded by Knight, to adjourn. Motion carried unanimously. The meeting adjourned at 9:20 p.m. Respectfully submitted, Susan Osbeck, Recording Secretary 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 Directo FROM: Will Neumeister, Community Development Directortif~ SUBJECT: Review Purchase Agreement / Tracy Sonterre DATE: September 5, 2006 INTRODUCTION The attached purchase agreement was prepared by the City Attorney, Bill Hawkins, and has been reviewed by Tracy Sonterre for accuracy and details that follow the original letter of intent that was submitted and approved by the EDA on August 15,2006. DISCUSSION The EDA needs to review the document and if it is acceptable make a motion to approve. The original proposal for a day care center provides a transition to the townhomes and will have a residential look to the building. You will recall the site drawing indicates that the day care center would be approximately 8,000 square feet in size. The owner sees the need for this type of facility in the area because of the large youth population in Andover, the nearby schools and ballfields. The site would lend itself to having a day care center with adequate parking to meet the City's day care center requirements and allow a use to occupy about half of a site that once was conceived as having all offices. The day care use would still enable about 9,000 square feet of office to be built on the remainder of the site. ACTION REOUIRED The EDA is asked to review the purchase agreement and if it is acceptable make a motion to approve the purchase agreement to sell the south half of Lot 24, Parkside at Andover Station to Tracy Sonterre for a children's day care facility. Respectfully submi~e?, / Will Neumeister ~ Attachments Purchase Agreement Letter ofIntent from August 15,2006 Plat Drawing of Area Site Drawing PURCHASE AGREEMENT 1. PARTIES. This Purchase Agreement is made on , 2006, by and between Andover Economic Development Authority, a body corporate and politic, 1685 Crosstown Boulevard NW, Andover, Minnesota, Seller and JMZ Property Management, LLC, a Minnesota limited liability company, Buyer. 2. OFFER/ACCEPTANCE. Buyer agrees to purchase and Seller agrees to sell real property legally described as follows: The South Half of Lot 24, Block 1, Parkside at Andover Station, Anoka County, Minnesota ("Property"). . 3. PURCHASE OF LOT WITH BUILDING OR VACANT LOT. (Check paragraph that pertains.) A. Buyer is purchasing the lot with an existing building. x B. Buyer is purchasing a vacant lot. 4. PRICE AND TERMS. The price for the real property included in this sale: One Hundred Seventy One Thousand Four Hundred Seventeen and no/100 Dollars ($171,417.00) which Buyer shall pay as follows: Earnest money of Five Thousand and no/100 Dollars ($5,000.00) by check, receipt of which is hereby acknowledged, and One Hundr~d Sixty Six Thousand Four Hundred Seventeen and no/100 Dollars ($166,417.00) cash on or before March 1,2007 DATE OF CLOSING. The purchase price is based on a site estimated to be 42,854 square feet of gross area. The price herein represents a net per square foot price of $4.00 ($3.64 per square foot for assessments, property, water connection fees, and $0.36 per square foot for park dedication fees). After the survey of the property is completed by the AEDA as required in paragraph 8 herein and the actual gross square footage of the site is known, the price shall be adjusted to reflect the change in land area based upon the square foot price set out in this paragraph. 5. CONTINGENCIES. Buyer's obligations under this Purchase Agreement are contingent upon the following: (a) Seller shall permit Buyer, at Buyer's expense, to enter the Property to conduct investigations and testing and Buyer shall be completely satisfied with the environmental and soil conditions of the Property. (b) Buyer shall have obtained all zoning, land use, signage, watershed, environmental and other governmental approvals and permits Buyer shall deem necessary to use the Property in the manner contemplated by Buyer, including, without limitation, a full building permit for a building conforming to Seller's design 2 standards which Buyer determines can be built for a price acceptable to Buyer, in Buyer's sole discretion. (c) Buyer shall have determined that the roads, utilities, points of access and other infrastructure serving the Property will be adequate for Buyer's purposes. In the event any of the above contingencies have not been satisfied or waived by Buyer on or before the date of closing, this Agreement shall be voidable at the option of the Buyer. 6. DEED/MARKETABLE TITLE. Upon performance by Buyer, Seller shall execute and deliver a Warranty Deed conveying marketable title, subject to: A. Building and zoning laws, ordinances, state and federal regulations; B. Restrictions relating to use or improvement of the property without effective forfeiture provisions; C. Reservation of any mineral rights by the State of Minnesota; D. Utility and drainage easements which do not interfere with existing improvements. E. Declaration of Covenants filed by the Andover Economic Development Authority. 7. REAL ESTATE TAXES AND SPECIAL ASSESSMENTS. Real estate taxes due and payable in and for the year of closing shall be prorated between Seller and Buyer on a calendar year basis to the actual DATE OF CLOSING. SELLER SHALL PAY on DATE OF CLOSING all special assessments for street, storm sewer, sanitary sewer, water main and water area. charges levied as of the date of closing. BUYER SHALL PAY real estate taxes due and payable in the year following closing and thereafter and any unpaid special assessments payable therewith and thereafter. Seller makes no representation concerning the amount of future real estate taxes or of future special assessments. 8. SELLER'S OBLIGATIONS. (a) Seller warrants that there has been no labor or material furnished to the property in the past 120 days for which payment has not been made. Seller warrants that there are no present violations of any restrictions relating to the use or improvement of the property. These warranties shall survive the delivery of the warranty deed. 3 (b) SELLER shall provide a survey of the property reflecting boundary lines, topographic indications, subdivision, easements, restrictions and other matters customarily reflected in a survey of real property. (c) SELLER shall cause all offsite utilities, storm drainage, street lights and paving to be constructed, if not already completed, necessary to serve the subdivision at Seller's expense. Such obligation shall not include the sanitary sewer and water connection charges. Said charges shall be the responsibility of the Buyer. (d) SELLER shall deliver the property with all mass grading completed. 9. BROKERAGE. Buyer and Seller represent that neither party is represented by a real estate agent or broker and no brokerage commissions are due any third parties as a result of this transaction. 10. BUYER'S OBLIGATIONS. (a) BUYER will provide a preliminary site plan on or before , 2006 for approval by the City of Andover. (b) BUYER will provide a final site plan to the City on or before ,2007. (c) BUYER shall construct a building upon the property which is in substantial conformance to the building identified in attached Exhibit A. Buyer's obligation shall survive the closing on this transaction. (d) Buyer acknowledges that it has had (and will have) an adequate opportunity to inspect the Property and, upon closing the transaction contemplated by this Agreement, shall be deemed to have accepted that Property in "AS IS" and 'WHERE IS" condition with any and all faults. Seller hereby disclaims all warranties, whether oral or written, express or implied, as to the Property's merchantability, fitness for a particular purpose, condition, type, quantity or quality. 11. DISCLOSURE OF NOTICES. Seller has not received any notice from any governmental authority as to violation of any law, ordinance or regulation. If the property is subject to restrictive covenants, Seller has not received any notice from any person as to a breach of the covenants. 12. POSSESSION. Seller shall deliver possession of the property not later than DATE OF CLOSING. 13. EXAMINATION OF TITLE. Seller shall, within a reasonable time after acceptance of this Agreement, furnish an Abstract of Title, or a Registered Property Abstract, certified to date to include proper searches covering 4 bankruptcies, State and Federal judgments and liens. Buyer shall be allowed 30 business days after receipt for examination of title and making any objections, which shall be made in writing or deemed waived. 14. TITLE CORRECTIONS AND REMEDIES. Seller shall have 120 days from receipt of Buyer's written title objections to make title marketable. Upon receipt of Buyer's title objections, Seller shall, within ten (10) business days, notify Buyer of Seller's intention of make title marketable within the 120 day period. Liens or encumbrances for liquidated amounts which can be released by payment or escrow from proceeds of closing shall not delay the closing. Cure of the defects by Seller shall be reasonable, diligent, and prompt. Pending correction of title, all payments required herein and the closing shall be postponed. A. If notice is given and Seller makes title marketable, then upon presentation to Buyer and proposed lender of documentation establishing that title has been made marketable, and if not objected to in the same time and manner as the original title objections, the closing shall take place within ten (10) business days or on the scheduled closing date, whichever is later. B. If notice is given and Seller proceeds in good faith to make title marketable but the 120 day period expires without title being made marketable, Buyer may declare this Agreement null and void by notice to Seller, neither party shall be liable for damages hereunder to the other, and earnest money shall be refunded to Buyer. C. If Seller does not give notice of intention to make title marketable, or if notice is given but the 120 day period expires without title being made marketable due to Seller's failure to proceed in good faith, Buyer may seek, as permitted by law, anyone or more of the following: (1) Proceed to closing without waiver or merger in the deed of the objections to title and without waiver of any remedies, and may: (a) Seek damages, costs, and reasonable attorney's fees from Seller as permitted by law (damages under this subparagraph (a) shall be limited to the cost of curing objections to title, and consequential damages are excluded); or, (b) Undertake proceedings to correct the objections to title; (2) Rescission of this Purchase Agreement by notice as provided herein, in which case the Purchase 5 Agreement shall be null and void and all earnest money paid hereunder shall be refunded to Buyer; (3) Damages from Seller including costs and reasonable attorney's fees, as permitted by law; (4) Specific performance within six months after such right of action arises. D. If title is marketable, or is made marketable as provided herein, and Buyer defaults in any of the agreements herein, Seller may elect either of the following options, as permitted bylaw: (1) Cancel this contract as provided by statute and retain all payments made hereunder as liquidated damages. The parties acknowledge their intention that any note given pursuant to this contract is a down payment note, and may be presented for payment notwithstanding cancellation; (2) Seek specific performance within six months after such right of action arises, including costs and reasonable attorney's fees, as permitted by law. E. If title is marketable, or is made marketable as provided herein, and Seller defaults in any of the agreements herein, Buyer may, as permitted by law: (1) Seek damages from Seller including costs and reasonable attorneys' fees; (2) Seek specific performance within SIX months after such right of action arises. TIME IS OF THE ESSENCE FOR ALL PROVISIONS OF THIS CONTRACT. 15. NOTICES. All notices required herein shall be in writing and delivered personally or mailed to the address as shown at paragraph 1 above and, if mailed, are effective as of the date of mailing. 16. MINNESOTA LAW. This contract shall be governed by the laws of the State of Minnesota. 17. WELL AND FUEL TANK DISCLOSURE. Seller certifies that the Seller does not know of any fuel tanks or wells on the described real property. 6 18. INDIVIDUAL SEWAGE TREATMENT SYSTEM DISCLOSURE. Seller certifies that there is no individual sewage treatment system on or serving the property. 19. PAYMENT OF CLOSING COSTS. Each party will pay closing costs which are normally allocated of Buyers and Sellers in a real estate transaction. 20. PARK DEDICATION FEES. Seller shall be responsible for payment of all park dedication fees due the City of Andover for development by Buyer of the Property. 21. CROSS PARKING AGREEMENT. The parties shall enter into a driveway access and cross parking agreement prior to closing for access and use of the common driveway and parking areas between the parcel being conveyed to the Buyer described in paragraph 2 herein and the remainder parcel owned by the Seller. 7 The Andover Economic Development Authority agrees to sell the property for the price and terms and conditions set forth above. SELLER: ANDOVER ECONOMIC DEVELOPMENT AUTHORITY By: Michael R. Gamache, President Its: By: James Dickinson, Executive Director I agree to purchase the property for the price and terms and conditions set forth above. BUYER: JMZ PROPERTY MANAGEMENT, LLC By: 8 CITY OF NDOVE @ 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US FROM: Will Neumeister, Community Develop TO: EDA President and Board Memb r CC: Jim Dickinson, Executive Director SUBJECT: Letter of Intent / Office Building Proposal DATE: September 5, 2006 INTRODUCTION A letter of intent has been submitted to the EDA related to a new office building proposal. This letter was submitted by Andy Stoner (Nassau Builders Inc.) for the north half of Lot 24, Block I, Parkside at Andover Station. Please find the letter of intent attached for your review. DISCUSSION The developer is proposing to build a set of two new office buildings that would total approximately 9,200 square feet (see attached site plan). These buildings would be located directly north of the day care center that Tracy Sonterre was interested in building on the south half of lot The developer will present his proposal for the architectural design of the building at the EDA meeting. The attached site plan shows the footprint of the building and the parking lot/driveway access that he would plan to build. This works quite nicely with the day care center as it is a good transitional use adjacent to the townhomes and day care. The buildings would be one story in height and have a residential character. Please note that there is a request from the buyer's agent for the EDA to pay a 5% commission if the sale occurs. Staff is recommending approval of the commission payment as it is similar to what had previously been agreed to for other realtorlbrokers that asked for commissions if they were instrumental in bringing the EDA a buyer. ACTION REQUESTED The EDA is asked to discuss the letter of intent and determine whether there is interest in selling the land to Mr. Stoner based on the proposal that he submitted (price of $200,577). Also, the EDA needs to acknowledge whether the commission would be paid to the buyer's agent. Respectfully submitted, ~ Will Neumeister Attachments . Letter of Intent . Drawing of Subject Site/Site Plan ~\ ~. F:!~ ~IIImo August 28, 2006 ~r. Jim Dickensen Mr. Will Neumeister City of Andover 1685 Crosstown Blvd. NW Andover, MN 55304 Sirs: Please accept this letter as a Letter of Intent to Purchase property located on Jay Street within the area known as Andover Station North. Specifics are: Parties: Nassau Builders, Inc (buyer) and City of Andover (seller) Legal Description: Lot 24, Block 1 Parkside at Andover Station inclusive of westerly triangle of land northwest of this lot. Approximate Area: Approximately 50,144 finished square feet of buildings (9,146 in office structures), parking lot and greenspace. Price: $200,577.00. CEased on $4.00 per square foot.) This price includes all assessments such as sanitary and storm sewers, streets, water mains, sidewalks, trails, park dedication fees and area charges. Terms: Buyer will provide a refundable $5000.00 deposit that will apply to the final purchase price. If buyer requests seller to extend Due Diligence by additional 6 months, the deposit can become non-refundable, but still apply to the final purchase price. Effective Date: August 30, 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: ~'\ ~. F:!~ ~IIImo Buyer shall have six months to complete Due Diligence, including but not limited to site survey, economic viability, and review of already completed environmental studies for the site. If the buyer is engaged in the process of entitlement (i.e. getting plans approved, etc.) seller will agree to extend the closing an additional 6 months. If Buyer cancels this agreement in writing during the the first 6 months of the Due Diligence period, the down payment shall be refunded to the buyer within 10 working days of the receipt by the seller of the written cancellation. Buyer agrees to provide the seller with monthly updates of marketing and Due Diligence progress. Closing Conditions:Approval of Preliminary plat on the property Negotiated and agreed economical elevation and landscaping plans. Intended Use: Exclusivity: Compensation: The buyer plans on developing and marketing office/small retail space to include, but not limited to, professional services such as real estate, insurance or other as yet undetermined office/small retail oriented occupations. Seller agrees to remove site from the active selling market and will not entertain any other offers solicited or not during the Due Diligence time frame. Seller acknowledges Devon Walton, of RE/MAX associates plus, Inc. as buyer's agent for Nassau Builders, Inc. Seller agrees to pay RE/MAX associates plus, Inc. a fee of five percent (5%) of the gross sale price upon successful closing of the transaction. Both parties represent that they have not dealt exclusively with any other agentlbroker in connection with this transaction and agree to hold each other harmless for any claims arising from any other brokers. ~~\ ~. F:!~ ~IIImo 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 Na8'a~~/" By: % ~7-;b ./8;C Title: ?~"" ~r Date. CZ5: ~~ 'h r Seller City of Andover By: Title: Date: , .. ''''':'?i/j'...:/:i , /.i i i /,' I /I/.......!/ "/ I ;" :,' / / i . / ! ..... , ,... ..... --- ../-,- -.-.';:;\ '" 1 ' ; I / - -"- " . I I ' . . . I. ... -.. ! \. I Il. /': /,,: .-.,<'....1, \ ,. \ ' . ',. .. "\ ><, , I . ./ i , I / ' .I, . '-....., ," : \ II . ) , I ''/ /. , ".. -" , I ., I , , i / /' , '! 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'\ \ /'" " . \ I, '\, \ /,' . \" , . / / " . . " " / " ',' " ", ,/ I . , \\\\ '" \ \ \ \ " " \ \ '. '-- ". ...... \ ,'--...... ... \ \', '-'" \\,',............ ". , '" ......, \"", , "'" , , '~""", '. . "'" '..... "'" - "" " -'-. "'"......-. .... ",.:::~. . ,. , / //. , />,.;. ~ . 'j / , I 1/ . / ./.. /'./ /' / / / '" ,/ /' .' /.' /' /'.-' - , ~,1 -^.,., t e~ ..... ~C; ~. ~1 CJO _~~ .....-(0 ~ )" i." \, f~, ~'f. ~.. ~\ r....-l .. t t ~~ -11: (" ~ \ l, " - . ..4 - r J.. ___ . ............... " \.. "~.!i/~ fJ 4.,., .~ 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 Members CC: Jim Dickinson, Executive Director FROM: Will Neumeister, Community Development Director W.h-- SUBJECT: Letter oflntent / Funeral Home Proposal (Continued) DATE: September 5,2006 INTRODUCTION A revised letter of intent has been submitted to the EDA related to a funeral home and crematorium proposal. This new letter was submitted once again by Daniel DeShaw for the westerly 318 feet of Lot I; Block 3, Andover Station North. Please find the letter of intent attached for your review. DISCUSSION At the August 15, 2006 EDA meeting the list of allowed uses for Andover Station North was modified to allow the funeral home as a permitted use and a conditional use for a crematorium. Staff has checked with Bruggeman Homes and they still have the same concems as before (see attached letter). A staff person from Bruggeman Home will be at the EDA meeting to explain their concerns. At four previous EDA meetings this has been discussed and this proposal is their final request to locate in Andover Station North. They do not want to consider the site adjacent to WDE at 139th and Hanson Boulevard. The City staffwill recommend a utility/access easement be preserved across the north 40 feet of the lot to enable utilities and street/driveway access to the easterly portion of Lot I, Block 3 (see drawing on page 4). ACTION REQUESTED The EDA is asked to discuss the letter of intent and determine whether there is interest in selling the land to Mr. DeShaw based on the newest proposal that he submitted (price of$394,916). Respectfully submitted, w~ Will Neumeister Attachments · Newest Letter oflntent (Daniel DeShaw) . Drawing of Subject Site · Architectural Drawing of Pun era I Home . Letter from Bruggeman Homes AUG-30-2006 WED 02:02 PM p, 002/004 Mr. Will Neumeister City of Andover, MN 1685 Crosstown Blvd N.W. Andover, MN 55304 RE: Purchase of City land located on Jay StreetN.W. Dear Mr. Neumeister: This letter is a proposal for the purchase of a parcel ofland located on Jay Street N.W. from the City of Andover, MN and its subsequent development into a funeral home. 1. SELLER: City of Andover, MN 2. BUYER: JO)'ce and Daniel DeShaw 3. LEGAL DESCRIPTION: W. 1/2 of Lot 1 Block 3 of Andover Station North (Approximately 98,729 square feet) 4. PRICE: $394,916.00 (Three Hundred Ninety Four Thousand Nine Hundred Sixteen and nO/lOO dollars), or $4.00 per square foot, (98,729 total square feet). Purchase price to include land purchase, park dedication fees, non-residential water connection charge and assessments. Final price of the land 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 February 1, 2007 with construction to begin Spring of2D07. 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 site plan, along with previous floor plan and elevations depict conceptual design. -2..- AUG-30-2006 WED 02:02 PM P. 003/004 9. CONDITIONS PRECEDENT TO CLOSING; Buyer shall agree to or receive from City of Andover, MN the following: a. Approval of conditional use pennit for the use of a crematoriwn at the funeral home site. b. Proposed preliminary site plan and el,evation approval by Buyer and Seller. c. Approved administrative lot split as shown on site plan (From 353 feet to 319 feet west to ~t) . 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 of Intent 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, Daniel DeShaw Funeral Director Acknowledged this day of _,2006 City of Andover, MN By: Printed: Title: -3- / " / I '" ~.~ 1 $~. 3 ., .~ S-l: .' i~ 1 n ':;'a n \ \ J 't '.; . '-- -.- '~,j-~- - r ,..^ ~~.,~.- ~"f)._ . <"l;: '-id ,,--Center Lln~ of Bunker Lak~ Bou/~varrf ;;',---- -Str~et and Utility Fasemed . - ; BUNKER;LAI<E BOULEVARD (COU~ :' 1/\ II~'C"":; 71b~L7 . 'VI '1r \L..f\ . N89"()4~7nW I I ^ I<'C" I - _r- d'.... 1""\ I II C"\ I ^ Cll"'\ / L./""Ir\L.. t I ?- "VUL.L.. V /""II \U ' '-1..-,5: line of the :iFf/of. of the NFf/4 of See. .14, 1----. sw. CO" olth~ SCT/4 ~ 01 the NE1/4 01 See. .34, T. .12, H. 24 ",---.- I M1UND ~ "l~ ~~(Q 0) . ...... '~fr) ~...... J .-1 :5"'UI5:XciCT ~ f~~- / ~ ll: ~ "" ;:Ij' <l III ... Q ~ ~ kl I~... ~S2 ~~~'-l ~Oi or--...... ~~/lf") ~ ~...... :S .... ... Q .. -l; .... :l:! , I I I \ \ " , A~~DO\/ER 1= '--' .., - so- I Sag'44'16"E ___ ~ . Z 1 I I "1 ~ f I, ~I I \ UjdOb I ~I ~ I ~ '.L...... I I 1;1 I I' 'I I : I II I ___'~__~) l'lrE, -~k~~J------------------~ I ... I ~:s I c:::5 \ I ~~ I r...l.l' I ~~ I ......~ I (j I I I I I I I-~ w;t w 0::: I- en r c,Q '/fJP.N !..AWe , . .-./ .. I ~ i -' T. .12, H. 24 1'1""1'"\1 '1\ '''-'\1' ,'VVVI'l1 I ~DOVER STA TION NORTH c una.. the lawl flnniUOta, to-wit: I Ule.2~7 Sq.f't. I 4-.,32 Acres Iillnutota. l)'I'n9 I IOYth from the I :h !l9 degrees OS I QllltQIIC::. of I 89 deqrees OS I ~n:II::~.I~: of I ') ../ ..... _..., Aau -- '- -- '- 1- ./ . I '-.. . "--. /'" /------N. Un. of th. SET/4- 01 tJr. ~f/4 01 SIfC. .J.#, r. "J2: R. 24 .. ,.' .s: Un. of tire NEt/./. 01 tile HEf/4 of ~ J-I-. r. J2. R. 2-# / OUTLOT A 1 5 - ./' '" I 600.04 ~r;1 589"06'.38"1. i!?~ . - /" . --- / OUTLOT 892,o.4....rc- '\ . 2.11 Aern --_____~J----,--MA TCHL/NE------_ ......./ (~ Shftflt Z of ~e::f~ ................._..._... . Minnesota, lying --- -' uned bearing of tcIat Quart.... Q ...~minutllll .. of 109.56 f_t;: $I minllt.. 38 ollt Quart.. SI:Ild I". tn.... - I ..--------------- '00.00 1--------- I J //f' I , , , - , ~ I ------------- J40.0 ~~ ~ ~m Z~ <~ .' ~o 0- u~ ~, ~~ 00 .~ ~CIl' <0 -~ ~m ~~ ~~ :n zE ~, ol ~~ I ~. ~- i!' ~ , '" , '" \"1 636.48 1 1 I 1 1 1 I :1:1 ~ I I 1 I 1 I I 1 : O;).~ I~~ I~~ I~"" 1 'J<:) ..,,-<::> .., (fj ;;J 1 1 1 1 1 1 J -, 1 I 1 I 1 1 1 I 1 I I :I, ~I <I I 1 I I 1 1 1 1 1 .,.J Il I I I I 1 I ~ f<; r 1 1 1 1 1 , ------ '- :L. EXCEPT the ec:Illt 600.00 feet thereof, ~ 4 West. Make County, Minnesota, 1 on~;':l;so~.,1.:~ =C::.O~~~ 14 MeI with and distant 32.00 feet east of IO'C. of lend to No describlld; th*,ce CIS J1 seeonds West. '1 dlstance of 24-2.00 "eny 0 dlrionce of ~.J7 f..t olong 0 en J3 mnutes 19 SIIconds to Its 'ClIt Cuort.. of the Nor1h~t Qul:rtr; .. with ond dlstlrlt. J2.00 teet eQSt of the begi,,"lruJ of tne p~ of Iond dQCribed. e to tne plJbllc for pubHc use for,v.- the Economic Dewlopment Authority. hell 197,S4S sq.tt. 4..!i4 oere=s ~ Z 58904-4-"6-( llJ6.J9 I- W W a::: I- en :; " i:i -, r 1 I 1 I 1 I 1 I II ,1'Jll "1 - ;!I ~ ~I 1 II II II 1 1 L ZBI.J9 J.!iJ.OO " ." .,. " <J: ~ " ~ l-<J1c 1< ~ ~Ic . ~ ~o,... ~ 2..... ~ <: . 20----, by of Mdo....... Minnesota, on o...olf 0' the corponJtlon. 2 3 88,399 sq.ft.. 2.03 01:...1 3 ~ i'::: ~ ~ '-'.i ~ ..., 109..!ige sq.ft.. 2."~ 589"27'50-( ..l.8..1.J.z.. nON NORlH; that thl. plat '" 0 COlT~t that aU monuments ho"" been correctly of this plot; that the outside boundaries , or publ1e highways to be desi~noted on , . . ~ r 401 1 I 1 I I I 1 I 1 1"1 2El i ~~I ~, I 1 I I 1 1 1 1 401 ~8~07 L~____~.,~r.--- ,g ,...--ctlf'lta- Umt oI'Bu"k.,. Lok. 8ou/~vord ~"-------S""-t and I./tillt f", ~,5.,14t: _ L--- _ BUNKER lAKEe.oUlEVARO(COa-U~N1Yt , 831 P~Doc. No. "4'S88---_.. I _ -"' - - - _ STATE AID HIGHWAY No:, a:.J~i}<ER 716.21 / I ^ I "r- / ~ N89V4'.37.W , L_r\"\c.. : ... Bf'"'\t II C'"' I ^ C)I"'\ ( \..1_5: t.n. of' the z';/~;.;; ~Efr\l \U -----SIt!: Cor. 01 th. SC7/4 ~ th. NEf/4 of s.c. R. r. .JZ. "J{~:f S~ .14, r. .1.Z, R. 24 ~-T- 2 I I ".."<~.,,., , nl~t '-'l"l~ J'<<14 ~ , , , \ '-- -- 20----, by JeHrey 5 lei the plat of ANDO'.'ER STATION NORTH ot llents and rcommendatlons of the 30 day period has 8Iopnd witnwt ntCoipt 180,239 Sq.f"t. 4.14 Acns I .' --------------~- '00.00 ---------- 1 ...i. L -1- -L N8~;2 6(}(}.1H N89TJ4'JT'W Anoka County Ai th. SE'. Ccr.. "f (1'''1''''\' '1'\ 1.\/ ~"'.,.. ^ Tr- ^ 11"'\ of See. .14, r. 0 . ~VV" , f '=, ~~j ;":;>:'IIA ',' , .... 1-) a::: ." o ~_ I -~ ~,.~: ~- 1161 N lHUS: ~NGCVER .~ ,-, ~ I I I ~- l>J )- uJ <( 0::: -, ~- ~1 90 ("T"Tl......'" ~lr"I'IVI.. , AU. LOT THE PlAT. ~ I ...f"\f"\r....'n"j nVLJIII'-'I~ IY MINNESOTA STAlE STATUTE AR OF THE RECORDING DATE ENeED BY A 1/2" :0 BY RLS 12251. 10 IT. -_0- ..... ~ ~ .at ~ ..... ~ ~ ~ ~ = ~ ~ I ~ ..... ~ ..... ~ = . ~ = i!: 0 ~ ~ ~ ..... ~ - ~ i!: ~ 0 ..... ~ ~ . Il:: ~ 0 ~ ~ i!: ~ ~ ~ ~ ~ -1- & A~~..t~r..B R UGGEMAN ~ Building Commun PROPERTIES ities Since 1959 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 Parkside 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 alternatives 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 change, 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) Umit 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 architecture 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 discuss this issue with you in further detail. Sincerely, a -.8'- 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 Pre~dent aad BoanI ~ ~ Jim Dickinson, Executive Director ~ Will Neumeister, Community Development Director ~ CC: FROM: SUBJECT: Update on Economic Development Activities DATE: September 5, 2006 INTRODUCTION This memo is provided as a status update for all the economic development activities that the staff has been engaged in over the past month. DISCUSSION The following is the update on activities: Rudnicki Building - Mr. Rudnicki's building is above grade and will be completed by the end of October. For the last two weeks they have been using a travel trailer on the adjacent site to promote their new business location. The trailer will be gone very soon. Bruggeman Homes - They have indicated they would like to move to their second phase as quickly as possible as they would like to have all the streets and utilities completed by late fall. Engineering has worked overtime to get the street and utility plans done so that this will be possible The fIrst eight- unit building is expected to be ready for the "Parade of Homes" on September 8th. At the September 5th Council Meeting, the approval of the final plat for their 2nd Addition of Parks ide at Andover Station is on the agenda. They will soon ask for a building permit for one of their one-unit townhomes. They want to have that unit available for the spring 2007 Parade of Homes. . Funeral Home Proposal- The newest proposal for a location in Andover Station is on the September 5th EDA agenda for consideration. They propose to purchase the west 'li of Lot I, Block 3, Andover Station North Gust north of where Casey was proposing to build). Town Center Companies - Due Diligence Progress Review - Since the July 18th EDA meeting, staff received the signed copy of the agreement with Town Center Companies and received the $25,000 down payment/earnest money to complete the agreement. They have been getting ready to market the property and a debate between Town Center Companies and Northstar Partners had caused a slight delay, but they have resolved who will be paying to prepare the marketing materials. The signs marketing brochures will be put out very soon. Other New Proposals - Staffhas contacted the building materials storage company and they are waiting to see what the housing market does. At this point they are only considered a prospect for the easterly 4 acres in the southem part of Andover Station North adjacent to the power substation. Day Care Proposal- The staffhas worked out a purchase agreement for the EDA to consider for th approval on Sept. 5 . Small Office Development - To the north of the site for the day care, staff has been working with a developer to build 9,000 square foot of office space. The "Letter ofIntent" is on the agenda for Sept. 5th EDA consideration. EP A Clearance of Institutional Controls - Staff has received word from EP A in Chicago that they have made a slight change that the State Attomey General's office must agree to first then they will remove the institutional controls placed on the Andover Station North parcels and establish a reduced set of requirements. Ballfield Completion - The ballfields are projected to be completed by the end of September 2006. The ballfields will be ready for use in the summer of2007. ACTIQN REQUIRED This is an informational update to the EDA only, no action is needed. Respectfully submitted, Will Neumeister ~ 2