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HomeMy WebLinkAboutEDA - December 3, 2013Pi � lr o . 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100 FAX (763) 755 -8923 • WWW.ANDOVERMN.GOV ECONOMIC DEVELOPMENT AUTHORITY MEETING December 3, 2013 6:00 p.m. Conference Rooms A & B 1. Call to Order — 6:00 p.m. 2. Approval of Minutes (November 19, 2013) 3. Approve Purchase Agreement with DST, Inc. 4. EDA Activity — Project Status Report 5. Approve 2014 EDA Budget 6. Other Business 7. Adjournment A'Lbbw (O'd 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100 FAX (763) 755 -8923 • WWW.ANDOVERMN.GOV TO: Economic Development Authority CC: Jim Dickinson, City Administrator FROM: Michelle Harmer, Deputy City Clerk SUBJECT: Approval of Minutes DATE: December 3, 2013 INTRODUCTION The following minutes were provided by Staff reviewed by Administration and submitted for EDA approval: November 19, 2013 Regular DISCUSSION The minutes are attached for your review. ACTION REQUIRED The EDA is requested to approve the above minutes. Respectfully submitted, Michelle Hartner Deputy City Clerk Attach: Minutes 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 45 46 47 ANDOVER ECONOMIC DEVELOPMENTAUTHORITYMEETING NOVEMBER 19, 2013 -MINUTES A meeting of the Andover Economic Development Authority Gamache, November 19, 2013, 6:00 p.m., at the Andover City Andover, Minnesota. A Present: Absent: Also present: APPROVAL OFMINUTES October 1, 2013, Commissioners Tony Nowak and Joyce T Commissioner '._ Community Devepi Executive Director; Public Works Directo fled to order by President Mike 685 Crosstown Boulevard NW, Director, David ickir (arrived y eer, Dave Julie Trade, Robert Motion by Howard, Si oded by'Ti vistol , appW�of the Minutes as presented. Motion carried unanimously. AIR APPRO ; ? BILI' OVEi ' Motion h Trade, Seconde iy,Knig ft.Vl approve the LMCIT Liability Coverage and to not waive the monetary units on tort "lity e shed by Minnesota Statutes 466.04. Motion carried unanimously. APPROVE PURCIMEAGRONENT WITH CAPSTONE HOMES FOR 8 PLEX LOTS Mr. Carlberg indicated Cip _;e Homes has signed a purchase agreement to purchase Lots 1, 1A,2,3,4,4A,5,6,7,7A,8,9, Block 2, Parkside at Andover Station for the purpose of building an 8- plex residential building. The closing date is scheduled for December 15, 2013, with construction to start in the spring of 2014. Motion by Knight, Seconded by Howard, approving the Purchase Agreement with Capstone Homes for the purchase of Lots 1,1A,2,3,4,4A,5,6,7,7A,8,9, Block 2, Parkside at Andover Station. President Gamache asked if there was any further discussion. Commissioner Trade indicated she has concerns regarding what the building will look like, will 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 Andover Economic Development Authority Meeting Minutes — November 19, 2013 Page 2 the building be part of the current twnhome association, and if Capstone will be able to rent the units instead of selling them. Mr. Carlberg replied the 8 -plex building plan is the original Bruggeman building plan approved with the PUD. If Capstone wanted to change the building plan the Council would need to amend the PUD. Mr. Carlberg indicated Capstone could rent the units as long as he applied for a single - family rental license. Mr. Dickinson indicated the purchase agreement states the property is listed as additional real estate for the current Parkside Townhome Association. The motion was called to vote. Motion carried unanimously. TIF 1 -6 DISTRICT/MEASUREMENT SPECL4LTIES /FOLLOW UP ITEMS Mr. Carlberg stated all documents for creating TIF District 1 -6 are complete and will be sent for certification. Mr. Carlberg indicated the purchase agreement and development agreement with Measurement Specialties, Inc. have been executed by both parties and a closing date is in the process of being scheduled. Measurement Specialties has hired Environ an environmental firm out of Chicago to perform a Phase II environmental review as a part of their due diligence process. Staff will continue to work the MPCA on the installation of the gas probe monitoring well required due to the close proximity of the property to the WDE site. Measurement Specialties anticipate construction to begin in the spring of 2014. CHERRYWOOD ADVANCED LIVING UPDATE Mr. Carlberg stated Cherrywood Advanced Living started construction October 15, 2013. They anticipate construction to be done by April 1, 2014. Cherrywood Staff will take occupancy, train and furnish the facility during the month of April, with the first residents moving in May 1, 2014. ANDOVER STATIONNORTH UPDATE Mr. Carlberg updated on the following: Dynamic Sealing Technologies, Inc. — DSTI is close to signing a final Purchase Agreement. An agreement has been reached on the purchase price and a closing date on or before July 1, 2014. Construction to begin in 3 — 5 years. Pizza Ranch — Pictures of construction were reviewed. Hiring was conducted in November. Opening of the restaurant will occur by the end of the year. Andover Economic Development Authority Meeting Minutes — November 19, 2013 Page 3 1 Commissioner Nowak asked about the vacant bank in Andover Station North. Mr. Dickinson 2 indicated there has been interest from a couple of banks and he remains in contact with the owner 3 of the property. 4 5 REDEVELOPMENT DISCUSSION 6 7 Mr. Carlberg indicated seed has been planted at the Stop -N -Shop parcel. 8 9 Mr. Dickinson stated a 4 -plex located on 138th Avenue is in foreclosure, the Sheriff Sale will 10 take place soon. Staff continues to monitor the area. 11 12 SET ANDO VER B USINESS DEVELOPMENT DA Y DA TE 13 14 Mr. Carlberg indicated the EDA is being asked to select a venue for the 2014 Annual Business 15 Development Day, which will be held Wednesday, June 18, 2014. Staff received two price 16 quotes for the event. Rum River Hills Golf Club ($48.00) and Green Haven ($67.98). 17 18 Motion by Knight, Seconded by Howard approving Rum River Hills Golf Club as the venue for 19 the 2014 Annual Business Development Day, June 18, 2014. Motion carried unanimously. 20 21 REVIEW /APPROVE 2014 PROPOSED EDA BUDGET 22 23 This item will be brought to the December 3, 2013 meeting. 24 25 OTHER BUSINESS 26 27 Mr. Dickinson handed out and reviewed the November 2013 Forecast Cash Flow Analysis — TIF 28 Project Accounts Districts 1 -1 & 1 -2. 29 30 Mr. Dickinson indicated there will be funds available for Crosstown/Bunker Lake Boulevard 31 redevelopment acquisition. 32 33 ADJOURNMENT 34 35 Motion by Trude, Seconded by Howard to adjourn. Motion carried unanimously. The meeting 36 adjourned at 7:04 p.m. 37 38 Respectfully submitted, 39 Michelle Hartner, Recording Secretary 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100 FAX (763) 755 -8923 • WWW.CI.AN DOVER. MN. US TO: EDA President and Board CC: Jim Dickinson, Executive Directo FROM: David L. Carlberg, Community Deve ent Director SUBJECT: Approve Purchase Agreement with DST, Inc. for the Sale of Lot 1, Block 2, Andover Station North DATE: December 3, 2013 REQUEST The EDA is requested to approve the attached purchase agreement with DST, Inc. for the purchase of Lot 1, Block 2, Andover Station North. BACKGROUND The EDA held a public hearing and adopted the attached resolution at the September 3, 2013 meeting approving the land sale of the above described lot to DST, Inc. (See attached map). The closing date in accordance with the agreement will be completed by July 1, 2014. ACTION REQUESTED The EDA is requested to approve the attached purchase agreement. Respectfully submitted, David L. Carlberg Attachments Purchase Agreement September 3, 2013 EDA Resolution Approving Land Sale Location Map PURCHASE AGREEMENT 1. PARTIES. This Purchase Agreement is made on ' 2013, by and between Andover Economic Development Authority, a body corporate and politic, 1685 Crosstown Boulevard NW, Andover, Minnesota, (hereinafter referred to as "Seller ") and DST Properties, LLC, a Minnesota limited liability company, 13829 Jay Street N.W., Andover, MN 55304 (hereinafter referred to as "Buyer "). 2. OFFER/ACCEPTANCE. Buyer agrees to purchase and Seller agrees to sell real property legally described as follows: Lot 1, Block 2, ANDOVER STATION NORTH, according to the recorded plat thereof, Anoka County, Minnesota. Subject to and together with easements of record. (hereinafter collectively referred to as the "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 purchase price for the Property (the "Purchase Price ") shall be One Million Six Hundred and Seventy Four Dollars ($1,000,674). This price includes $941,089 for land, and $59,585 for park dedication fees, which Buyer shall pay as follows: Earnest money of Twenty Thousand and no /100 Dollars ($20,000.00), and Nine Hundred Eighty Thousand Six Hundred and Seventy Four Dollars ($980,674) cash on or before July 1, 2014 Date of Closing, subject to the contingencies in paragraph 5 below, for which Buyer can reasonably extend the Date of Closing. Buyer shall have six (6) months from the date of this Purchase Agreement within which to complete its due diligence. Thereafter, the earnest money shall become non - refundable. The purchase price is based upon a lot estimated to be 291,246 net square feet and 25,000 square feet of power line easement. Actual net square footage shall be determined by a survey of the Property and by taking the gross square footage of the property and deducting the existing power line easement located upon the Property. The price herein represents a per square foot price for the net area of $3.35 and $1.00 per square foot for the easement area. Said price includes the land; park dedication fees: non - residential water area charges and assessments; sewer area charges and assessments; and water and sewer lateral charges. After a survey of the property is completed by the AEDA as required in paragraph 8 herein, and the actual gross square footage and net square footage are known, the Purchase Price shall be adjusted to reflect the change in the 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, as determined by Buyer in Buyer's sole discretion. (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, but not limited to, a full building permit for a building conforming to Seller's design standards which Buyer determines can be built for a price acceptable to Buyer, all as determined by Buyer in Buyer's sole discretion. (c) Buyer shall have determined that the roads, easements, driveways, utilities, points of access and other infrastructure serving the Property will be adequate for Buyer's purposes, as determined by Buyer in Buyer's sole discretion. (d) On or before the Date of Closing, Title shall have been found acceptable, in accordance with the requirements and terms of Sections 13 and 14 below. (e) Buyer, on or before the Date of Closing, shall have received, reviewed and determined that it is satisfied with the matters disclosed by the survey of the Property. (0 The representations and warranties made by Seller in Section 9 shall be correct as of the Date of Closing with the same force and effect as if such representations and warranties were made at such time. 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 which do not interfere with Buyer's intended use of the property; C. Reservation of any mineral rights by the State of Minnesota; D. Utility and drainage easements which do not interfere with Buyer's intended use of the property. E. Declaration of Covenants filed by the Andover Economic Development Authority. 2 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 and sewer area charges and any and all other special assessments against the Property levied and pending 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. (b) Seller, at its sole cost and expense, shall deliver to Buyer and Title Company a survey (the "Survey ") of the Property, prepared by a surveyor licensed in the State of Minnesota, dated subsequent to the date of this Agreement, certified in favor of Buyer, Buyer's nominee, if any, and the Title Company as having been prepared in accordance with the Minimum Standard Detail Requirements for Urban Class land title surveys jointly established by ALTA, ACSM and NSPS (as revised in 2005) and prepared in accordance with the accuracy standards prescribed therein, including Table A Items 1, 2, 3, 4, 6, 8, 9, 10, 11(b), 13, 16, 17 and 18 disclosing the state of facts existing on the date of such certification and showing and certifying the gross acreage and the Net Area of the Property. The Survey shall contain the surveyor's certification that the Property or any part thereof is not located within a wetland or an area that has been designated by the Federal Emergency Management Agency, the Army Corps of Engineers or any other governmental agency as having or being subject to special flood hazards or shall, in the alternative, identify and designate such areas and certify the gross acreage of such areas. (c) Seller shall cause all sanitary sewer, water and storm drainage utilities to be constructed to the edge of the property at Seller's expense. Such obligation shall not include the sanitary sewer connection fee, sewer availability charge and water unit connection charges to be paid. Said charges shall be the responsibility of the Buyer. Seller shall be responsible to pay for any sewer area charge, water area charge, sewer lateral charge and water lateral charge. Seller shall cause all electric, gas, telephone and cable utilities to be constructed to the edge of the property at Seller's expense. 3 9. REPRESENTATIONS AND WARRANTIES OF SELLER. Seller represents and warrants to and covenants with Buyer that: (a) Seller is the owner of fee simple title to the Property and that Seller has the power and authority to enter into and perform the terms and conditions of this Agreement, and such performance will not conflict with or result in a breach of any of the terms, conditions or provisions of any agreement or instrument to which Seller is a party or by which it is bound, or constitute a default under any of the foregoing; this Agreement is valid, binding and enforceable against Seller in accordance with its terms. (b) Seller has not received any notice of and Seller is not aware of any violation of any law, municipal ordinance or other governmental requirement affecting the Property, including without limitation any notice of any fire, health, safety, building, pollution, environmental or zoning violation. (c) Seller has not received any written notice of any condemnation or eminent domain proceedings, or negotiations for purchase in lieu of condemnation, relating to the Property, or any portion thereof; and Seller has no actual knowledge that any condemnation or eminent domain proceedings have been commenced or threatened in connection with the Property, or any portion thereof. (d) (1) The Property (A) is not subject to any private or governmental lien or judicial or administrative notice, order or action relating to Hazardous Substances or environmental problems, impairments or liabilities with respect to the Property and (B) to Seller's knowledge, is not in, or with any applicable notice and/or lapse of time, and/or failure to take certain curative or remedial actions, will not be in violation of any Environmental Laws (as herein defined). (2) Seller shall not allow, prior to the Date of Closing, any Hazardous Substances to exist or be stored, generated, used, located, discharged, released, possessed, managed, processed or otherwise handled on the Property, and shall comply with all Environmental Laws affecting the Property. (3) Seller shall immediately notify Buyer should Seller become aware of (A) any Hazardous Substance or other environmental problem or liability with respect to the Property, (B) any lien, order, action or notice of the nature described in subparagraph (1) above, or (C) any litigation or threat of litigation relating to any alleged unauthorized release, discharge, generation, use, storage or processing of any Hazardous Substance or the existence of any Hazardous Substance or other environmental contamination, liability or problem with respect to or arising out of or in connection with the Property. As used herein, "Hazardous Substances" means any matter giving rise to liability under the Resource Conservation and Recovery Act, 42 U.S.C. Section 6901 et seq., the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. Sections 9601 et seq. (including the so- called "Superfund" amendments thereto), or other applicable, 4 federal, state or local statute, law, ordinance, rule or regulation governing or pertaining to any hazardous substances, hazardous wastes, chemicals or other materials, including without limitation asbestos, polychlorinated biphenyls, radon, petroleum and any derivative thereof, or any common law theory based on nuisance or strict liability (all of the foregoing statutes, laws, ordinances, rules, regulations and common law theories being sometimes collectively hereinafter referred to as "Environmental Laws "). (e) No litigation or proceedings are pending or, to Seller's knowledge, contemplated, threatened or anticipated, relating to the Property, or any portion thereof. (f) Seller has no knowledge of any unrecorded agreements, undertakings or restrictions which affect the Property. There are no tenants, persons or entities occupying any portion of the Property and no claim exists against any portion of the Property by reason of adverse possession or prescription. (g) To the Seller's knowledge (i) there is no obligation with respect to the Property for any assessment, annexation fee, payment, donation or the like, (other than general real estate taxes, sewer connection fee, sewer availability charge and water unit connection charge, which are required to be paid by the Buyer); (ii) there are no obligations in connection with the Property of any so- called "recapture agreement" involving refund for sewer extension, oversizing utility, lighting or like expense or charge for work or services done upon or relating to the Property or otherwise; and (iv) there is no unexecuted paving agreement or undertaking with any government agency respecting construction or any acceleration or de- acceleration lane, access, or street lighting. (h) Within twenty one (21) days of the date of this Purchase Agreement, Seller shall deliver to Buyer for Buyer's use and review of the Property, all background information and documents for the Property, including engineering reports, soils study reports and environmental studies or assessments in possession of Seller. If, prior to the Date of Closing, Seller obtains knowledge of a fact or circumstance the existence of which would constitute a breach by Seller of its representations and warranties hereunder or would render any such representations and warranties materially untrue or incorrect, Seller shall promptly notify Buyer in writing of the same. Under said circumstances, and in addition to any other right or remedy that may be available to Buyer, Buyer, at its option, may terminate this Agreement without further liability by giving written notice thereof to Seller, in which event the earnest money shall promptly be returned to Buyer. 10. BUYER'S OBLIGATIONS. (a) 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. (b) Buyer acknowledges that it has had (and will have) an adequate opportunity to inspect the Property and, upon closing the transaction contemplated by this 5 Agreement, shall be deemed to have, subject to the express warranties herein contained, accepted that Property in "AS IS" and "WHERE IS" condition with any and all faults, except as specifically provided in this Agreement. 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, except as specifically provided otherwise in this Agreement. 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. Title examination will be conducted as follows: A. Seller's Title Evidence. Seller shall furnish to Buyer a commitment ( "Title Commitment ") for an ALTA form B 1990 Owner's Policy of Title Insurance, certified to date to include proper searches covering bankruptcies, State and Federal judgments and liens, insuring title to the Property deleting standard exceptions and including affirmative insurance regarding zoning, contiguity, appurtenant easements and such other matters as may be identified by Buyer, in the amount of One Million One Hundred Eighteen Thousand Eight Hundred and Four Dollars ($1,118,804) issued by a title insurance company acceptable to Buyer, subject only to the Permitted Encumbrances. B. Buyer's Objections. Buyer shall be allowed thirty (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 Date of Closing, whichever is later. 31 B. If title is marketable, or is made marketable as provided herein, and Buyer defaults in any of the agreements herein, Seller may, as its sole remedy, cancel this contract as provided by statute. C. 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) Cancel this contract as provided by statute; (2) Seek specific performance within six (6) 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. 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 and trail dedication fees due the City of Andover for development by Buyer of the Property. [Remainder of Page intentionally left blank] 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 I agree to purchase the property for the price and terms and conditions set forth above. BUYER: DST PROPERTIES, LLC By: Its: James Dickinson, Executive Director By: Its: CITY OF ANDOVER EDA COUNTY OF ANOKA STATE OF MINNESOTA RESOLUTION NO.R003 -13 A RESOLUTION APPROVING THE LAND SALE OF A PARCEL LOCATED IN ANDOVER STATION NORTH WHEREAS, the City of Andover EDA has held a public hearing to gather public comments on the proposed land sale and to disclose the pending land sale of Lot 1, Block 2, Andover Station North, and WHEREAS, the findings substantiating that it is in the public interest to sell the EDA owned parcel to the buyer include the following: The land sale will increase local jobs and increase the local tax base. NOW, THEREFORE, BE IT RESOLVED by the EDA of the City of Andover, Anoka County, Minnesota, that the public hearing has been held and it has been found to be in the public's interest to sell EDA owned land described as Lot 1, Block 2, Andover Station North. Adopted by the EDA of the City of Andover this 3`d day of September, 2013. CITY OF ANDOVER EDA ichael R. Gamache, President Attest: ' e Mi helle Harmer— Deputy City Clerk A NLbD60VFT Map N Disclaimer: Maps and documents made available to the public by the City of Andover are not legally recorded maps or surveys and are not intended to be used as such. The maps and documents are created as part of the Geographic Information System (GIS) w ij}e that compiles records, information, and data from various city, county, state and federal resources 9 Copyright © 2013 City of Andover, All Rights Reserved S Printed 08/2912013 1DOVE 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 Direct FROM: David L. Carlberg, Community SUBJECT: EDA Activity - Project Status Report DATE: December 3, 2013 INTRODUCTION rector This memo provides a brief update of all EDA activities. Further details will be provided at the meeting. DISCUSSION 2014 Special EDA Events — "Concert in the Park" — EDA last discussed in September. Staff was directed to look at soliciting quotes to build a dock/pier for the pond near Target. Staff has found that very few dock/pier manufacturers exist. Most public docks /piers are being manufactured by MINNCOR Industries. MINNCOR staff responded that they are not interested in building a pier beyond their standard designs. 2014 Andover Business Development Day — EDA set the date for this event on Wednesday, June 18, 2014 at the Rum River Hills Golf Club. Andover Station Area Medians — No activity to report. Walmart has completed the median changes in front of their store. Andover Station North — The last two available sites next to the Montessori School and in front of Blue Fin Pool and Spa are actively being marketed. Potential Restaurants — Pizza Ranch is under construction at 13797 Jay Street NW and will open by the end of the year. Staff continues to submit demographic information to potential restaurants as leads become available. Staff continually reviews various businesses journals looking for restaurants, retailers and other companies who are expanding their operations. As the EDA is aware, there continues to be two issues facing Andover in attracting sit down restaurants. The first is not enough daytime traffic and the second being the lack of square footage of retail space to support a restaurant. Walmart opening added 7,000 vehicle trips a day to the area which will help. The City struggles to compete with the Riverdale shopping area in Coon Rapids. Crosstown/Bunker Redevelopment Sites — Stop -N -Shop has been removed. Staff is monitoring the area for potential acquisitions as they become available. Parkside at Andover Station — Capstone Homes, Inc. has purchased and built on all of the lots in the Third Addition completing the project. Capstone will also purchase the 8 -plex lot on the south side of 139`h Avenue NW. The closing date is set for December 15`h. One 4 -plea lot remains on the south side of 1391h Avenue NW. Monument/Entrance Signs — Sign installations at Bunker, Crosstown and Round Lake Blvd. are complete. Staff is soliciting bids for landscaping and retaining around the signs. ACTION REQUESTED Receive a presentation from staff and provide direction if necessary. Respectfully submitted, David L. Carlberg 2 OW A C I T Y 0 F .,U .,. NLD6 06 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100 FAX (763) 755 -8923 • WWW.CL ANDOVER. MN. US TO: President and Commissioners FROM: Jim Dickinson, Executive Director SUBJECT: Discuss /Approve 2014 EDA Budget DATE: December 3, 2013 INTRODUCTION The EDA is requested to receive a brief presentation on the proposed 2014 Special Revenue Fund budget. DISCUSSION The Executive Director will use the attached documents as the basis for the 2014 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 2014 3. EDA Budget Detail Worksheets ACTION REQUESTED Receive a presentation, discuss and adopt the proposed 2014 EDA Special Revenue Fund budget. d, City of Andover Special Revenue Funds Economic Development Authority Fund Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Revenues Charges for Services Investment Income Miscellaneous Total Revenues: Other Sources Transfers in Total Revenues and Other Sources: Total Available: Expenditures Personal Services Supplies and Materials Purchased Services Other Services and Charges Capital Outlay Total Expenditures: Other Uses Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 $ 497,472 $ 513,254 $ 513,254 $ 326,999 190,538 7,222 509 198,269 198,269 695,741 98,677 4,593 29,336 9,690 40,191 182,487 75,000 5,000 80,000 80,000 593,254 109,455 18,200 78,750 14,850 221,255 182,487 221,255 $ 513,254 $ 371,999 30,000 5,000 35,000 35,000 548,254 109,455 18,200 78,750 14,850 221,255 221,255 $ 326,999 30,000 5,000 35,000 35,000 361,999 52,067 18,200 63,750 14,850 148,867 148,867 $ 213,132 �,,,Me �yLlld� p jt`ed, �. C�.e•.+� 2 ti Fund Balance, January 1 Revenues Charges for Services Investment Income Miscellaneous Total Revenues: Other Sources Transfers in Total Revenues and Other Sources: Total Available: Expenditures Personal Services Supplies and Materials Purchased Services Other Services and Charges Capital Outlay Total Expenditures: Other Uses Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 $ 497,472 $ 513,254 $ 513,254 $ 326,999 190,538 7,222 509 198,269 198,269 695,741 98,677 4,593 29,336 9,690 40,191 182,487 75,000 5,000 80,000 80,000 593,254 109,455 18,200 78,750 14,850 221,255 182,487 221,255 $ 513,254 $ 371,999 30,000 5,000 35,000 35,000 548,254 109,455 18,200 78,750 14,850 221,255 221,255 $ 326,999 30,000 5,000 35,000 35,000 361,999 52,067 18,200 63,750 14,850 148,867 148,867 $ 213,132 Fund: Economic Development Authority Activity Type /Code: Special Revenue F,xpenditure I-liahlights 2012, 2013 R 2014 includes funding for monument entrance signs. EDA Budget provided for ongoing maintenance around the Andover Station Development area. Department Head: City Administrator General Activity Description To provide for the quality development of commercial and industrial properties to ensure a strong, viable and diversified tax base. Process Used Promotion and expansion of the commercial and industrial tax base through the development and redevelopment of land. The EDA is the primary authority involved in managing the City's three Tax Increment Financing (TIF) Districts. The EDA monitors and initiates the activities within the TIF Districts to reach the goals of the TIF plans. ADOPTED 2014 BUDGET CITY OF ANDOVER, MINNESOTA CITY OF ANDOVER Budget Worksheet- 2014 EDA 217046500 Account Actual Actual Actual Actual Actual Budget Estimate Requested Number Description 2008 2009 2010 2011 2012 2013 2013 2014 Charges for Services 54370 Tax Increment Administration F 173,096 181,416 199,403 199,030 190,538 75,000 30000 30,000 Charges for Services 173,096 181,416 199,403 199,030 190 ,538 75,000 30,000 30,000 Investment Income 56910 lntemst Earned 14,670 7,959 8,223 10,020 9,063 5,000 5,000 5,000 56920 Valuation Adjustment (1,283) 1,527 1,077 5,128 (1,841) Investment Income 13,387 9,486 9,300 15,148 7,222 51000 5,000 5,000 Miscellaneous Revenue 58100 Refunds & Reimbursements 1,693 2,487 547 34,196 509 Miscellaneous Revenue 1,693 2,487 547 34,196 509 Total Reveoues 188,176 193,389 209,250 248,374 198,269 80,010 35,000 35,000 Salaries & Benefits 60110 Salaries - Regular 65,603 67,735 79,025 75 ,527 77,026 - - - 60140 Salaries - Council I Commissio 598 326 532 533 494 5,600 5,600 5,600 60210 FICA 3,691 3,849 4,489 4,237 4,386 347 347 347 60220 Medicare 901 924 1,063 1,070 1,051 81 81 81 60310 Health lmumnce 3,839 6,074 8,948 8,546 9,124 - - - 60320 Dental Insurance 260 248 326 284 317 - - - 60330 Life Insurance 15 15 12 13 13 - - - 60340 Long -Term Disability 169 172 189 167 190 - - - 60410 PERA 4,220 4 ,523 5,458 5,152 5,561 - - - 60420 Nationwide Retiremau 515 514 514 514 514 - - - 60990 Inter-City Labor Allocation 103,427 103,427 46,039 Salaries & Benefits 79,811 84,380 100,556 95,993 98,676 109,455 109,455 52,067 Departmental 61005 Supplies . General 802 1,021 546 1,149 1,245 2,000 2,000 2,000 61105 R & M supplies - Gencml - - 1,202 1,483 - - - 61130 R &MSupplies - Landscape 4,093 - 1,924 930 - 101000 10,0,000 00 10- 61310 Meals /Lodging - - - 45 16 700 700 700 61315 Continuing Education 100 - 200 - - 1,500 1,500 1,500 61320 Annual Dues / Licenses 750 765 915 1,204 938 800 800 800 61405 Postage 319 1,061 506 223 594 1,000 1,000 1,000 61410 Transportation /Mileage 1,839 1,943 1,800 1,882 1,800 2,200 2,200 2,200 Departmental 7,903 4,790 7,093 6,816 4,593 18,200 18,200 18,200 Operating 62005 Electric - 7,134 5,172 4,861 5,063 8,000 8,100 8000 62010 Water - - - 536 - - - 62100 Insurance 2,190 2,537 4,738 2,873 2,491 5,250 5,250 5,250 62200 Rentals - - 2,563 1,924 - - - - 62210 Computer Services 1,545 1,600 1,600 1,600 1,600 1,600 1,600 1,600 Operating 3,735 11171 14,073 11,258 9,690 14,850 14,850 14,850 Professional Services 63005 Professional Services 1,550 5,656 3,464 9,917 9,255 5,250 5,250 5,250 63010 Contractual Services 12,533 14,244 17,046 32,576 20,696 69,000 69,000 54,000 63015 Attorney 619 1,810 - 197 - 2,000 2,000 2,000 63025 Publishing 816 25 988 971 628 2,500 2,500 2,500 63100 R & M Labor- General 1,950 - - - - - 63200 Inspections 23 35 24 Professional Services 17,491 21,770 21,522 43,661 30,579 78,750 78,750 63,150 Capital Outlay 65200 Buildings - - 21,683 - - - 65300 improvements 38,327 38,950 Capital Outlay 60,010 38,950 Total Expenditures 108,940 14211 143,244 217,738 182,488 221,255 221,255 148,867 Net Increase (Decresse) in FB 79,236 71,178 66,006 30,636 15,781 (141,255) (]86,255) (113,867) Fund Balance Beginning 250,417 - 329,653 400,831 466,837 497,473 513,254 513,254 - 326,999 Ending 319,653 400,831 466,837 497,473 513,254 371,999 326,999 213,132 1111412013 City of Andover Budget Detail for all Object Codes {list each expense account individually with specific cost detail) Department f Cost Center: Economic Development - 2110 Page l oft Amount Requested Total Priority Abject 2013 2014 ` 2014 1 through 5 Code Explanation Budget Adjustmenf Request 1 -high : 5-16W 61005 SUPPLIES - GENERAL 2,000 2,000 paperlpromotions supplies 0 0 0 0 Total 2,000 0 2,000 ' 61130 R & M SUPPLIES - LANDSCAPE 0 0 median expenditures 10,0001 10,000 0 0 Total 10,000 0 10,000 61310 MEALS f LODGING 700 700 Special events participation - Staff /Commission 0 0 0 0 Total 700 0 700 61315 CONTINUING EDUCATION 1,500 1,500 Training opportunities - Staff /Commission 0 0 0 0 Total 1,500 0 11500 t. 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 0 0 0 0 Total 1,000 0 1,000 I' 61410 TRANSPORTATION 1 PARKING 2,200 2,20D Staff / Commision Travel 0 0 Executive Director % allocation 0 0 0 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 6,000.::. 62100 INSURANCE 5,250 5,250 Risk ManagemenVLMCIT Premiums 0 0 0 0 Total 5,250 0 5,250: ':- 62210 COMPUTER SERVICES 1,600 1,600 Central systems - Serverlemalllimagingletc. 0 0 0 0 Page l oft City of Andover Budget Detail for all Object Codes (List each expense account individually with specific cost detail) Department I Cost Center: Economic Development - 2110 Amount Requested Total Priority, Object 2013 2014. 2014 1 through 5 Code Explanation Budget Adjustment Request 1-hi h 5-low Total 1,600 0 1,600 63005 PROFESSIONAL SERVICES 3,500 3,500 Audit and Financial Services 1,750 1,750 0 0 Total " 5,250 0 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 30,000 (15,000) 15,000 63025 1PUBLISHING 2,500 Z'ouu Tax Increment Reporting 0 0 0 0 Total 2,500 0 2,500 Grand Total for all Expenditures $111,800 ($15,000) $96,800 Page 2 of 2