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HomeMy WebLinkAboutNovember 7, 2012q C I T Y O F © Nb0VE 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100 FAX (763) 755 -8923 • WWW.ANDOVERMN.GOV ECONOMIC DEVELOPMENT AUTHORITY MEETING Wednesday, November 7, 2012 6:00 p.m. Conference Rooms A & B 1. Call to Order — 6:00 p.m. 2. Approval of Minutes (October 16, 2012 Regular) 3. Approve LMCIT Liability Coverage ® 4. Approve Land Purchase Agreement/Mardot Properties /PID #33- 32 -24 -13 -0046 - Administration 5. Andover Community Center/YMCA Financing Discussion 6. Parkside at Andover Station Update (verbal) 7. EDA Activity - Project Status Update (verbal) 8. Other Business 9. Adjournment H E ►J E10 LNDOVE ^ ANDOVER ECONOMIC DEVELOPMENT A UTHORITY MEETING NOVEMBER 7, 2012 - MINUTES 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: Absent: Also present: APPROVAL OFMINUTES Commissioners Sheri Bukkila, Tony Howard, Mike Knight, Julie Trude (arrived at 6:06 pm), Robert Nowak and Joyce Twistol None Community Development Director, David Carlberg Executive Director, Jim Dickinson Public Works Director /City Engineer, Dave Berkowitz 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 AGREEMENT/MARD0T PROPERTIES /PID #33- 32- 24 -13- 0046 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 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 Trude 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 Trude, 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 CENTERIYMCA 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 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 A TANDOVER 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 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 r1 �J H