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HomeMy WebLinkAboutMarch 6, 2012cTY� OF © 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100 FAX (763) 755 -8923 • WWW.ANDOVERMN.GOV ECONOMIC DEVELOPMENT AUTHORITY MEETING March 6, 2012 6:00 p.m. Conference Rooms A & B 1. Call to Order— 6:00 p.m. 2. Approval of Minutes (February 6, 2012 Regular; February 6, 2012 Closed) 3. Bunker /Crosstown Redevelopment Area © 4. EDA Project Progress Review 5. Parkside at Andover Station Update 6. Arbor Oak/Trident Development Update— Recommend Creation of TIF District 7. Other Business 8. Adjournment l4 S AN66W ANDOVER ECONOMICDEVELOPMENT AUTHORITYMEETING MARCH 6, 2012 - MINUTES A Meeting of the Andover Economic Development Authority was called to order by Vice President Julie Trade, March 6, 2012, 6:01 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. Present: Commissioners Sheri Bukkila (arrived 6:06 pm), Tony Howard, Mike Knight, Joyce Twistol and President Mike Gamache (arrived 6:05 pm) Absent: Commissioner Robert Nowak Also present: Community Development Director, David Carlberg Executive Director, Jim Dickinson APPROVAL OF MINUTES February 6, 2012, Regular Meeting: Correct as presented. Motion by Knight, Seconded by Howard, approval of the Minutes as presented. Motion carried unanimously (Twistol absent). February 6, 2012, Closed Meeting: Correct as presented. Motion by Trade, Seconded by Howard, approval of the Minutes as presented. Motion carried unanimously (Twistol absent). BUNKER/CROSSTOWNREDEVELOPMENT AREA Mr. Carlberg indicated staff will be soliciting bids for abatement of environmental issues and demolition for the four -plex located at 2600 138`h Avenue. He stated the Anoka County Sheriff's Office and the Andover Fire Department are interested in using the building for training exercises before it is demolished. © Commissioner Trade stated the neighbors should be notified when the building will be demolished and if it is used for any training exercises. She suggested putting a sign by the curb with the information when available. © Andover Economic Development Authority Meeting Minutes —March 6, 2012 Page 2 Mr. Carlberg explained the City applied for County CDBG funds to purchase another four -plex in the area, but were unsuccessful in the grant award process this year. EDA PROJECT STATUS REPORT Mr. Carlberg updated on the following: Retail Market Analysis. Linda Oie from the McCombs Group has conducted 10 interviews with Andover businesses. The struggle seems to be getting the businesses to conduct customer surveys. Part of the struggle is the business's corporate office does not allow for the customer surveys to be done at their establishment. This issue could push the analysis out a couple weeks. Ms. Oie will continue to try and get more responses from customers. Concert Events: The schedule is complete and staff is working on contracts for each event. PARKSIDE AT ANDOVER STATION UPDATE Mr. Carlberg stated closing took place February 15, 2012 for the property at 1801 139`" Avenue. © He indicated staff is working on a purchase agreement with Capstone Homes Inc. regarding the single family property. Mr. Dickinson indicated part of the negotiating is the grading on the west side. He recommended starting in that area which would create about 27 lots. Commissioner Trude suggested starting on Linnet Street and move back. Mr. Dickinson indicated the City would be looking at very large redevelopment costs. He explained it is about the lot sizing, the infrastructure is all set up for eight - plexs. Mr. Dickinson reminded the EDA being the developer, money is going to have to be spent for platting, grading, etc before lot sales can occur. ARBOR OAKS /TRIDENT DEVELOPMENT UPDATE — RECOMMEND CREATION OF TIF DISTRICT Mr. Carlberg stated Trident Development is holding a neighborhood meeting at Grey Oaks tonight. Mr. Carlberg reviewed the schedule of events calendar regarding the proposed modification to the development program for Development District No. I and creation of TIF District 1 -5. © Mr. Dickiison indicated Trident Development submitted an escrow and application materials for a business subsidy. Ehlers and Associates are reviewing the application. The banks listed in the application have been reviewed. Trident has done TIF deals in other communities. Trident is projecting a total market value of 9.6 million with 7.4 million construction costs. Mr. Dickinson © Andover Economic Development Authority Meeting Minutes —March 6, 2012 Page 3 stated along with the EDA, Grey Oaks Inc. has requested more upgrades to the fagade of the building. Mr. Dickinson stated Trident is asking for a 25 year TIF District with an $800,000 subsidy. He indicated when reviewing the application what is looked at is what is a reasonable rate of return for an investor, the rule of thumb is for an investor to get at least a 10% return on investment. Based on what Trident submitted a rate of return of 10% can be attained just after 10 years. Mr. Dickinson recommended putting a "look- back" clause in the development contract. Commissioner Bukkila stated she is not comfortable with a 25 year TIF District. President Gamache stated that is a long time. Mr. Dickinson indicated Ehlers feels that 10 years is warranted but could be persuaded to support 15 years. President Gamache stated Ehlers is suggesting 10 -15 years. Mr. Dickinson believes the City can get 15 years. He reviewed the benefit of a shorter district. © Commissioner Trude suggested having an agreement on the valuation for property tax purposes. Mr. Dickinson indicated a valuation agreement can be in the developer contract so they can not contest the value. Motion by Trude, Seconded by Howard to approve the resolution recommending the City Council call for a public hearing for the proposed adoption of the modification to the development program for Development District No. 1 and the proposed establishment of Tax Increment Financing District No. 1 -5 and the proposed adoption of a Tax Increment Financing Plan. Motion carried unanimously. OTHER B USINESS Mr. Carlberg stated Advanced Eyecare of Andover, 1574 154th Avenue is hosting an open house March 15th from 4:00 p.m. — 8:00 p.m. Anoka County Community Development will be hosting an open house at 14524 Bluebird Street on March 24th from 1:00 p.m. — 4:00 p.m. There will be a Beyond the Yellow Ribbon kickoff meeting on March 29th at 6:30 p.m. at Green Haven Golf and Banquet Center. A representative from the program will be at the March 20th City Council meeting to give a presentation. © ADJOURNMENT Motion by Knight, Seconded by Bukkila to adjourn. Motion carried unanimously. The meeting adjourned at 6:51 p.m. © Andover Economic Development Authority Meeting Minutes —March 6, 2012 Page 4 Respectfully.submitted, i helle artner, Recording Secretary L: J U