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HomeMy WebLinkAboutFebruary 2, 2015ANLbY O F fl 6 u4k� 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100 FAX (763) 755 -8923 • WWW.ANDOVERMN.GOV ECONOMIC DEVELOPMENT AUTHORITY MEETING February 2, 2015 7:00 p.m. Conference Rooms A & B 1. Call to Order — 7:00 p.m. 2. Approval of Minutes (January 6, 2015 Regular) 3. Public Hearing: Consider Sale of Lot 1, Block 1, Andover Station North 3`d Addition 4. Approve Purchase Agreement — Griffen Property Holdings, LLC 5. EDA Work Session — Presentations will be provided at the meeting. 6. Adjournment 0 DOVER ANDOVER ECONOMIC DEVELOPMENT A UTHORITY MEETING FEBRUARY 2, 2015 -MINUTES A meeting of the Andover Economic Development Authority was called to order by President Julie Trude, February 2, 2015, 7:00 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. Present: Commissioners Sheri Bukkila (arrived at 7:03 p.m.), Mike Knight, James Goodrich, Valerie Holthus, Timothy Cleven and Joyce Twistol Absent: None Also present: Community Development Director, Dave Carlberg Executive Director, Jim Dickinson Others 40 APPROVAL OF MINUTES January 6, 2015, Regular Meeting: Correct as presented. Motion by Twistol, Seconded by Knight, approval of the Minutes as presented. Motion carried unanimously. PUBLIC HEARING: CONSIDER SALE OF LOT 1, BLOCK 1, ANDOVER STATION NORTH 3RD ADDITION Motion by Knight, seconded by Holthus, to open the public hearing at 7:01 p.m. Motion carried unanimously. No one wished to address the Commission. Motion by Holthus, seconded by Cleven, to close the public hearing at 7:02 p.m. Motion carried unanimously. Mr. Carlberg indicated State Statute requires a public hearing prior to any EDA land sale. Mr. Carlberg stated the owner of Foundation Hill Montessori School located at 1750 139`x' Lane is interested in purchasing the property located at 1730 139th Lane to expand their current facility. Mr. Nagwani, Foundation Hill Montessori School indicated with the purchase of this property he will be constructing a 5,700 square foot expansion to the current 6,600 square foot facility, almost doubling the square footage, but will not be doubling the enrollment. The reason for that © Andover Economic Development Authority Meeting Minutes — February 2, 2015 Page 2 is they will keep some common areas in the new building and in the current building. Currently there are 94 children enrolled, with the expansion they plan to enroll between 148 and 158 children. The children range in age from 6 weeks to 6 six years old. Enrollment has been full since they opened six years ago. The expansion will create 10 -12 new full time jobs. Construction is planned for 2015. Motion by Holthus, seconded by Bukkila, to approve the land sale resolution of Lot 1, Block 1, Andover Station North P Addition. Motion carried unanimously. (See EDA Resolution R001- 15) APPROVE PURCHASE AGREEMENT — GRIFFEN PROPERTY HOLDINGS, LLC Mr. Carlberg indicated there is a minor correction on the Purchase Agreement on page 1 under Parties. The zip code is listed as 553311, it should be 55331. Mr. Carlberg stated the Purchase Agreement is based on a sale price of $215,000 and all of the sewer and water connection charges are being paid for by the buyer. The water and sewer area charges have already been paid for. Motion by Bukkila, Seconded by Knight to approve the Purchase Agreement for the sale of Lot 1, Block 1, Andover Station North P Addition, with the correction listed above. Motion carried unanimously. EDA WORK SESSION Bunker Lake Boulevard Redevelopment Mr. Dickinson handed out a map of the area, a parcel by parcel listing and a Cash Flow Analysis. Mr. Dickinson explained the redevelopment area is on Bunker Lake Boulevard between Crosstown Boulevard and Crosstown Drive. Mr. Dickinson indicated on the map 138fl' Avenue acts as a dividing line. The parcels to the north of the dividing line will be referred to as "north" and the parcels south will be referred to as "south ". He suggested the EDA focus on the parcels on the south side. Mr. Dickinson reviewed the area and the Cash Flow Analysis. Commissioner Bukkila asked about the relocation costs. Mr. Dickinson explained the relocation process and costs that may be associated. © Mr. Dickinson reviewed the parcels on the south side, identifying the different types of structures and ownership. Mr. Dickinson also reviewed with the EDA advertised rents for the properties. Commissioner Bukkila asked what the koal would be if the city were to acquire these properties. © Andover Economic Development Authority Meeting Minutes — February 2, 2015 Page 3 Mr. Dickinson answered resale of the property to a developer for a mixed use development with better housing stock. President Trade asked approximately how much land is needed for a 70 unit apartment building. Mr. Carlberg answered at least 3 acres is needed. The area was discussed. The EDA concurred the goal is mixed use with commercial and high density housing for the area. President Trade suggested staff put together a drawing of the area showing what type of commercial may work, traffic flow, street access and address housing affordability. Commissioner Goodrich stated his concern with the project is accruing debt. Mr. Dickinson indicated his proposal is being presented with zero debt for the EDA. Mr. Dickinson indicated that cash flow management will be monitored closely to achieve the goal of having a large enough area for a development. Mr. Dickinson stated staff will continue to pursue parcels in the south area based on using © current market pricing, he cautioned against premium pricing. Mr. Dickinson asked if the EDA is interested in staff marketing the Stop N Shop property, 13725 Crosstown Drive. Commissioner Bukkila and President Trade indicated they are not ready for the parcel to be marketed. Mr. Carlberg reviewed a list of EDA involved projects dating back to 2011 as requested by Commissioner Twistol. 7th Avenue and Bunker Lake Boulevard Mr. Carlberg reviewed the properties 14259 & 14327 7t' Avenue. He noted the property owner of 14327 has retained a Commercial Real Estate Broker. President Trade stated she would like to see this area become commercial, 14259 7`h Avenue is zoned M -2. She would prefer to see it zoned general business and move the M -2 somewhere else in the city. She stated this would take work with the Met Council. She asked the EDA if they would support staff pursuing the rezoning of this property to commercial. Commissioner Bukkila stated she would like to see it zoned commercial, however when you remove the M -2 zoning you need to put it somewhere else in the city and she is not sure where © that would be. Commissioner Holthus noted 5 acres of the property is currently zoned commercial. President Trade stated the Met Council does not run the city and the city has moved zoning © Andover Economic Development Authority Meeting Minutes — February 2, 2015 Page 4 around in the past. Mr. Carlberg indicated there are not a lot of areas for M -2 zoning that have sewer and water availability. President Trade stated she would like to move the M -2 zoning to the Rural Reserve. Commissioner Bukkila stated she has never seen a city that tucks their high density housing in the middle of the city with no way to get to it. She stated she sees it as a shuffle game and it keeps getting pushed around the city. She noted she is not ok with it being in the center of the city, she would prefer to see it on main corridors and arterial roads. President Trade indicated it is a way to get something that we want for the community. Commissioner Goodrich asked how binding the Comprehensive Plan is. Mr. Carlberg answered the Comprehensive Plan is what the city has to follow. The city zoning maps and codes need to be consistent with the Comprehensive Plan. President Trade asked what the process would be to change the zoning. Mr. Carlberg stated an amendment to the Comprehensive Plan to change the land use designation would need to go through the city review process. If approved by the City Council, then submit the request to the © Met Council for approval or you could include the amendment in the 2018 Comprehensive Plan update. He noted in his opinion if this is what the Council would like to do, including it in the 2018 update would the better option. Mr. Carlberg stated moving the high density to the Rural Reserve is probably not going to be received well by the Met Council since it is not in the current metropolitan urban service area (MUSA). Commissioner Ideas or Comments President Trade asked for ideas or comments from the Commissioners. Commissioner Twistol indicated she would like to see staff continue to focus on the Bunker Lake Boulevard redevelopment area. Commissioner Knight agreed. Mr. Carlberg stated staff believes the next area for development will be around the Kottkes bus area. There has been interest in that area. President Trade asked how the city could recruit a restaurant into the city. Mr. Carlberg answered the problem with recruiting a restaurant is the low number of lunch crowd and traffic count in the city. QCommissioner Holthus stated there is a small percentage of land that is zoned commercial in the city, she would be willing to rezone for more businesses. Commissioner Goodrich stated he would like to see more commercial zoning. Andover Economic Development Authority Meeting Minutes — February 2, 2015 Page 5 Commissioner Bukkila indicated she has seen steady progress and does not want to see too much pushed at one time. President Trude thanked the EDA Commissioners for their input. L- "P L81 `luhAYl11 Motion by Holthus, Seconded by Goodrich to adjourn. Motion carried unanimously. The meeting adjourned at 9:02 p.m. Respectfully submitted, Michelle Hartner, Recording Secretary X1 H