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HomeMy WebLinkAboutFebruary 6, 2012C I T Y O F © ND OVE 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100 FAX (763) 755 -8923 • WWW.ANDOVERMN.GOV ECONOMIC DEVELOPMENT AUTHORITY MEETING February 6, 2012 6:00 p.m. Conference Rooms A & B 1. Call to Order— 6:00 p.m. 2. Approval of Minutes (January 3, 2012 Regular) 3. Arbour Oaks of Andover Senior Housing Project — Trident Development © 4. Bunker /Crosstown Redevelopment Area 5. EDA Project Progress Review 6. Parkside at Andover Station Update 7. Closed Session — Property Negotiations (PIN 34- 32- 24 -12- 0048 -0052 & 34-32-24-12-0070 - 0072) 8. Other Business 9. Adjournment =J pn ANDOVER ECONOMIC DEVELOPMENT AUTHORITY MEETING FEBR VARY 6, 2012 - MINUTES A Meeting of the Andover Economic Development Authority was called to order by President Mike Gamache, February 6, 2012, 6:00 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. Present: Commissioners Sheri Bukkila, Tony Howard, Mike Knight, and Julie Trude Absent: Commissioners Joyce Twistol and Robert Nowak Also present: Community Development Director, David Carlberg Executive Director, Jim Dickinson Public Works Director /City Engineer, Dave Berkowitz a APPROVAL OF MINUTES January 3, 2012, Regular Meeting: Correct as presented. MOTION by Trude, Seconded by Knight, approval of the Minutes as presented. Motion carried unanimously. ARBOUR OAKS OF ANDOVER SENIOR HOUSING PROJECT — TRIDENT DEVELOPMENT Mr. Carlberg introduced Roger Fink from Trident Development, LLC. He indicated Mr. Fink would be making a presentation on a proposed senior housing project located on the southwest corner of Hanson Boulevard and 155th Lane in the Grey Oaks Development. Mr. Fink explained the team is made up of three companies, Trident Development LLC a real estate developer, Lyon Contracting Inc. a general contracting firm and Tealwood Care Center Inc. a management company. The objective of this team is to develop, construct and manage the facility long term. Mr. Fink indicated the project concept for Andover is a three story, 70 unit building. The building will house residents from approximately 70 —100 years old. There will be three types of housing: independent living, assisted living and enhanced services often referred to as memory support care. Mr. Fink stated this facility would create approximately 30 — 35 new jobs. A Marketing Director would be hired six months before the facility is open. They would like to © Andover Economic Development Authority Meeting Minutes — February 6, 2012 Page 2 start construction in July of 2012; the construction will take about a year, opening the facility in August of 2013. Mr. Fink stated the total development budget is approximately 9.9 million. Mr. Fink explained the market demand for senior housing in Anoka County. Commissioner Trude stated her concern is that Andover is a young community. She believes the parents of the city's residents are the ones that will be interested in the facility. President Gamache asked how this facility compares to the Farmstead. Mr. Dickinson indicated the Farmstead is 144 units. Commissioner Howard asked if using TIF funds brings down the cost to the facility residents. Mr. Fink explained TIF funds close the financing gap. The lending environment has changed in the recent years. Mr. Fink stated with a large project such as this one some costs do not qualify for financing. He explained the project costs are stacked up as follows: 73% financing, 19% private investors and 8% TIF funds. Mr. Fink indicated they would be applying for Housing TIF Funds, which creates affordable housing units. He stated the Housing TIF District will establish at least 20% of the rental units as affordable housing. Commissioner Howard asked if when the TIF District drops off will the rent rates increase. Mr. Fink stated they are asking for a 25 year TIF District. Mr. Dickinson indicated after the TIF District ends it will depend on how the market is regarding facility rates. President Gamache stated from the City's stand point once the TIF District ends the City has no input since the City has been paid back. Commissioner Trude indicated her concern with a rent increase when the TIF District ends. Mr. Fink stated he believes it is highly unlikely the rent would increase a significant amount. Commissioner Trude asked who is going to be the long term owner of the facility. Mr. Fink indicated Trident, Tealwood and private investors will form a company called Arbour Oaks LLC and they will own the facility. Commissioner Howard commented that he would like to see more cultured stone on the building, an all enclosed dumpster area and the number of parking spaces in the back of the building reduced. Mr. Fink stated on the latest concept plan the parking in the back has been reduced. Commissioner Howard stated his concern regarding the noise from the air conditioner units placed in each apartment. © Commissioner Bukkila asked what the ups and downs are for the City regarding this facility. Mr. Dickinson indicated there is a market demand for this type of facility and by using a TIF District it will provide affordable housing for seniors. He stated this evening's presentation is to provide a feel for the developer and direction from the EDA in regard to moving forward with this © Andover Economic Development Authority Meeting Minutes — February 6, 2012 Page 3 project. Mr. Dickinson indicated a positive for the City is that the project will create jobs. Commissioner Knight asked if there are a maximum number of TIF districts a city can have. Mr. Dickinson answered Andover is at the very low end of having TIF districts. Commissioner Bukkila asked if 25 years is a long time for a TIF district. Mr. Dickinson stated 25 years is a long time. Mark Ruff from Elhers and Associates indicated a 25 year TIF district is not common; however it is locking in long term affordability. Mr. Fink stated they will hold a neighborhood informational meeting to hear concerns and questions from the residents. The EDA feels the concept is very good and encouraged Mr. Fink to move forward. The EDA thanked Mr. Fink for the presentation. EDA ACTIVITY — PROJECT STATUS REPORT Mr. Carlberg updated on the following: © 2012 Special EDA Events — Staff has scheduled the concerts in the park series for this summer. Oak View Middle School Jazz Band on May 306, Erin Rogue on June 27a, Bellows and Brass on July 24t1, and the Andover High School Band on August 22 "d OTHER BUSINESS Mr. Carlberg reminded the EDA, February 14a' is the Chamber luncheon at the Harvest Grill in Coon Rapids and February 15t` is the kick off for the McCombs Group market analysis study at 5:30 p.m. in the Council Chambers. EDA recessed at 6:58 p.m. to go to the City Council meeting. The EDA returned from the City Council meeting and recessed to an EDA Closed Session to discuss Parkside at Andover Station proposals at 8:10 p.m. The EDA reconvened from the Closed Session at 8:40 p.m. ADJOURNMENT Motion by Bukkila, Seconded by Howard, to adjourn. Motion carried unanimously. The meeting adjourned at 8:40 p.m. © Resp . ctfully submitted, LL L Michelle Hartner, Recording Secretary