HomeMy WebLinkAboutEDA - November 17, 2015C T N' O F
1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100
FAX (763) 755 -8923 • WWW.ANDOVERMN.GOV
ECONOMIC DEVELOPMENT AUTHORITY
MEETING
November 17, 2015
6:00 p.m.
Conference Rooms A & B
1. Call to Order— 6:00 p.m.
2. Approval of Minutes (10/6/15 Regular; 10/6/15 Closed)
3. Presentation — Presbyterian Homes — Extension of Note for TIF District 1 -3
4. Approve LMCIT Liability Coverage - Administration
5. Purchase Agreement Updates
6. Redevelopment Updates (verbal)
7. Other Business
8. Closed Session (Bunker /Crosstown Redevelopment Property Acquisition/Sell Negotiations)
9. Adjournment
6NDOVEA-
1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100
FAX (763) 755 -8923 • WWW.AN DOVE RMN.GOV
TO: Economic Development Authorit
CC: Jim Dickinson, City Administrator
FROM: Michelle Hartner, Deputy City Clerk
SUBJECT: Approval of Minutes
DATE: November 17, 2015
INTRODUCTION
The following minutes were provided by Staff reviewed by Administration and submitted
for EDA approval:
October 6, 2015 Regular
October 6, 2015 Closed
DISCUSSION
The minutes are attached for your review.
ACTION REQUIRED
The EDA is requested to approve the above minutes.
Respectfully submitted,
M4kn I Yu�
Michelle Hartner
Deputy City Clerk
Attach: Minutes
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ANDOVER ECONOMIC DEVELOPMENTA UTHORITYMEETING-
OCTOBER 6, 201 S -MINUTES
The Meeting of the Andover Economic Development Authority was called to order by President
Julie Trude, October 6, 2015, 6:00 p.m., at the Andover City Hall, 1685 Crosstown Boulevard
NW, Andover, Minnesota. —
Present:
Absent:
Also present:
Commissioners Sheri
and Joyce Twistol __
Executive Director,
Others
and
Holthus, James Goodrich,
Dave Carlberg
Dave Berkowitz
the minutes as presented. Motion carried
Inventure Properties LLC — The purchase agreement was approved by the EDA on September
1, 2015. A closing date of December 1, 2015 has been established. Staff is currently working
with Boser Construction, Inc the general contractor for the project on the preliminary site
designs. The EDA is asked to consider recommending to the City Council the possible
conveyance of an additional small parcel of land adjacent to the site to allow adequate room for a
6,000 square foot daycare facility to be located north of the proposed 12,000 square foot two
story office building. A frontage road easement agreement is in place in the purchase agreement.
Motion by Bukkila, Seconded by Goodrich approve recommending to the City Council that they
move forward with the conveyance of the small parcel of land adjacent to the site. Motion
carried unanimously.
Leon Properties Uno, LLC (Acapulco Restaurant) — Closing took place on October 5, 2015.
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Andover Economic Development Authority Meeting
Minutes — October 6, 2015
Page 2
The building permit has been issued. EDA will be informed of any ground breaking event. The
opening of the restaurant will likely occur in July 2016.
Mr. Carlberg stated a shared parking agreement between Blue Fin and Leon Properties Uno,
LLC has been completed. Also completed a shared access agreement between Blue Fin and
Great River Energy.
Mr. Dickinson indicated Premier Bank, 1777 Bunker Lake Boulevard will open in November.
EDA PROJECT UPDATES
Mr. Carlberg updated on the following:
Bunker Lake Boulevard Medians — Prairie Restorations will do a site visit this spring to
determine the success of the potted perennials planted July 2, 2015. Commissioner Twistol
stated the medians look really good.
Andover Station Area Banners — Installation of the banners should begin October 71h. President
Trude indicated there will be an article in the next newsletter on name suggestions for the pond
by Target.
Electronic Message Entrance Sign — The estimated cost to provide electrical for a sign on
Hanson Boulevard/ I33`d Avenue is estimated at $1,500. Staff plans to work with the contractor
from the Crosstown/Bunker sign over the winter. Staff will bring back sign designs to the EDA
at a future meeting. Staff is hopefully for spring construction.
OTHER BUSINESS
Mr. Carlberg updated on the Open to Business Program. Kathleen Duchene, Business Advisor
has met with a total of 26 residents regarding businesses. Calls increase when posted in the
newsletter. Anoka County has indicated they may continue the program for 2016 at their cost.
RECESS
President Trude recessed the regular EDA meeting at 6:34 p.m. to a closed session of the EDA to
discuss Bunker /Crosstown Redevelopment Property Acquisition/Sell Negotiations.
RECONVENE
The EDA reconvened at 6:55 p.m.
ADJOURNMENT
Motion by Bukkila, Seconded by Twistol, to adjourn. Motion carried unanimously. The meeting
adjourned at 6:55 p.m.
Andover Economic Development Authority Meeting
Minutes — October 6, 2015
Page 3
Respectfully submitted,
Michelle Hartner, Recording Secretary
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1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100
FAX (763) 755 -8923 • WWW.CI. ANDOVER. MN. US
TO: President and Commissioners
FROM: Jim Dickinson, Executive Director
David L. Carlberg, Community Development Director
SUBJECT: Presentation — Presbyterian Homes — Extension of Note for TIF District 1 -3
DATE: November 17, 2015
INTRODUCTION
The EDA is requested to consider extending the life of Tax Increment Financing District 1 -3,
Housing District as requested by Presbyterian Homes. The purpose of the request is to extend
the tax benefits derived from the district an additional 10 years and by doing so insuring that
twenty percent (20 %) of the senior housing units remain affordable.
Background
TIF District 1 -3 was created in the late 1990's for The Farmstead Project, a 140 unit senior
housing development that provides memory care, assisted and independent living located on
Bunker Lake Boulevard NW between Marigold Street and Quay Street proposed by Presbyterian
Homes. The TIF Housing District has a certification life of 25 years. However, in the case of
the Farmstead project, a "pay as you go" revenue note of fifteen (15) years was issued. This
means that for the past 15 years 90% of the property taxes generated from the new building have
been refunded to Presbyterian Homes and by doing so a rent reduction has been applied of
roughly $360 /unit for 20% of the units. The affordable units also have to be occupied by
individuals whose income is 50% or less of the area median gross income. By the City agreeing
to the 10 year extension of the note, 28 of the 140 units will continue to remain affordable as
originally intended. If the extension is not approved Presbyterian Homes is no longer obligated
to provide for affordable units.
ACTION REQUESTED
Receive presentation from Presbyterian Home's representatives and direct staff on how the EDA
would like to proceed with the extension request of TIF 1 -3 as requested by Presbyterian Homes.
e fully submitted,
Ji 'ckinson David L. Carlberg
preshyterian
homes & services
Innovations in
<#>Senior Living Communities
SENIOR HOUSING
PARTNERS
City of Andover — The Farmstead
Request for TIF Extension
November 17, 2015
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June 15, 1955 - First 6 Residents Move In ho esP &eservices
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Mission and Vision
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preshyterian
homes & services
Mission: To honor God by enriching the
lives and touching the hearts of older
adults.
Vision: To provide more choices and
opportunities for more older adults to live
well.
presbyterian
PHS Values homes & services
Christian Ministry: Serving with compassion, modeling Christ, and
spending time in prayer and reflections.
Ready and Engaged People: Treating others as we would like to
be treated, leveraging strengths, attracting the right talent, and providing a
nurturing environment.
Operational Integrity: Leveraging operational standards, enhancing
programming, providing or creating new continuum services, and being a
pioneer in innovation.
Service Excellence: Establishing and consistently delivering service
standards, being responsive, and creating memorable experiences.
Stewardship: Optimizing, with careful responsibility, the people,
financial, charitable, and physical resources entrusted to us and to
intentionally grow our ministry.
The PHS Way
Christian
t
presbyterian
homes & services
PHS Overview
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preshyterian
homes & services
We now serve approximately 25,480 older
adults each year — 12,921 "under our roofs"
and 12,559
"in the community."
We partner with 5,913 employees.
We are supported by over 2,500 volunteers.
Serving Low Income to Fulfill our Mission
:art,
4' s
s
preshyterian
homes & services
1 /3rd of all our
apartments are income
qualified.
20% or more of those
"under our roof" are
very low income.
75% of those we
serve in HCBS are very
low income.
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History of The Farmstead Presbyterian
homes &services
The Farmstead was developed in 1997 and
opened in 1998.
The Farmstead was one of the first mini -
continuum projects for PHS.
The community consists of 66 independent
living apartments, 54 assisted living
apartments, 17 memory care /assisted living
apartments, and 6 cottages.
Preservation of the historic round barn.
Original TIF Agreement
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® preshyterian
homes & services
15 year term.
$3.5M principal amount.
First year of increment was in the year 2000.
Original term expired in 2015.
Full $3.5M of principal amount remains
unpaid.
Annual TIF payments to the project
approximately $125k per year.
Low Income Rent Commitment
t
presbyterian
homes & services
20% of apartments (28) set aside for low
income residents at 50% or less of median
income.
TIF set aside rent is $819 per month.
Average market rate for similar apartments is
$1,176.
Low income commitment ends upon
expiration of the TIF district.
Low Income Rent Commitment
Extension of the low income set aside
apartments:
presbyterian
homes & services
Maintains the current level of affordable
senior housing options in Andover.
Addresses Met Council low income
objectives.
Advances the mission of PHS.
t
Capital Improvements Completed hasp &esehterian
rvices
Interior renovation and remodel - 1.443M.
New nurse call system - $172K.
WIFI Network - $48K.
2014 Ford Passenger Bus - $60K.
Planned parking lot additions, improvements,
and landscaping for 2016 - $350K.
Request
t
preshyterian
homes & services
Extend the TI district term for 10 additional
years or the maximum allowable.
PHS / The Farmstead shall continue set
aside affordable housing apartments for the
term of the extension.
PHS shall pay all professional fees
associated with the TIF extension.
•Request
t
presbyterian
homes & services
Extend the TI Note term for 10 additional
years or the maximum allowable.
PHS / The Farmstead shall continue set
aside affordable housing apartments for the
term of the extension.
PHS shall pay all professional fees
associated with the TIF extension.
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1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100
FAX (763) 755 -8923 • WWW.CLAN DOVER. MN. US
TO:
FROM:
SUBJECT:
DATE:
President and EDA Commission Members
Jim Dickinson, Executive Director
Approve LMCIT Liability Coverage - EDA
November 17, 2015
INTRODUCTION
The League of Minnesota Cities Insurance Trust (LMCIT) requests that participating EDA's
annually decide whether or not to waive the statutory tort liability limits established by
Minnesota Statutes 466.04.
DISCUSSION
Attached is the "LMCIT Liability Coverage — Waiver Form" provided by the LMCIT, which
provides a description of the options available to the City of Andover EDA. Currently the City
of Andover EDA DOES NOT WAIVE the monetary limits on municipal tort liability
established by Minnesota Statutes 466.04. I am recommending continuing with the past
practice.
BUDGET IMPACT
No budget impact if the EDA does not waive limits.
ACTION REQUESTED
The City of Andover EDA is requested to not waive the monetary limits on tort liability
established by Minnesota Statutes 466.04.
submitted,
Attachment
�o
LEAGUE of
MINNESOTA
CITIES
CONNECTING & INNOVATING
SINCE 1913
LIABILITY COVERAGE - WAIVER FORM
LMCIT members purchasing coverage must complete and return this form to LMCIT before the effective date of
the coverage. Please return the completed form to your underwriter or email to pstech @lmc.org
This decision must be made by the member's governing body every year. You may also wish to discuss these issues with
your attorney.
League of Minnesota Cities Insurance Trust (LMCIT) members that obtain liability coverage from LMCIT must decide
whether to waive the statutory tort liability limits to the extent of the coverage purchased. The decision has the following
effects:
If the member does not waive the statutory tort limits, an individual claimant would be able to recover no more than
$500,000 on any claim to which the statutory tort limits apply. The total all claimants would be able to recover for a
single occurrence to which the statutory tort limits apply would be limited to $1,500,000. These statutory tort limits
apply regardless of whether the city purchases the optional excess liability coverage.
If the member waives the statutory tort limits and does not purchase excess liability coverage, a single claimant could
potentially recover up to $2,000,000 for a single occurrence. (Under this option, the tort cap liability limits are waived to
the extent of the member's liability coverage limits, and the LMCIT per occurrence limit is $2 million.) The total all
claimants would be able to recover for a single occurrence to which the statutory tort limits apply would also be limited
to $2,000,000, regardless of the number of claimants.
If the member waives the statutory tort limits and purchases excess liability coverage, a single claimant could
potentially recover an amount up to the limit of the coverage purchased. The total all claimants would be able to
recover for a single occurrence to which the statutory tort limits apply would also be limited to the amount of coverage
purchased, regardless of the number of claimants.
Claims to which the statutory municipal tort limits do not apply are not affected by this decision.
selects liability coverage limits of $ from the League of Minnesota Cities
Insurance Trust (LMCIT).
Check one:
❑ The member DOES NOT WAIVE the monetary limits on municipal tort liability established by Minnesota Statutes,
Section 466.04.
❑ The member WAIVES the monetary limits on municipal tort liability established by Minnesota Statutes, Section
466.04 to the extent of the limits of the liability coverage obtained from LMCIT.
Date of city councillgoverning body meeting
Signature
145 UNIVERSITY AVE. WEST
ST. PAUL, MN 55103 -2044
Position
PHONE: (651) 281 -1200 FAx (651) 281 -1299
TOLL FREE: (800) 925 -1122 WEB:www.Lmc.oRG
0
1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100
FAX (763) 755 -8923 • WWW.CI. ANDOVER. MN. US
TO: President and Commissioners
CC: Jim Dickinson, Executive Director
FROM: David L. Carlberg, Community Deve opment Director
SUBJECT: Purchase Agreement Updates
DATE: November 17, 2015
INTRODUCTION
The EDA is requested to receive an update from the Community Development Director
on recently approved purchase agreements.
DISCUSSION
Inventure Properties, LLC — The Purchase Agreement (PA) for the 1.75 acre Stop -N-
Shop site located at 13725 Crosstown Drive NW was approved by the EDA on
September 1, 2015. A December 1, 2015 closing date was established in accordance with
the approved PA. Staff is currently working with Boser Construction, Inc. the general
contractor for the project on the preliminary site designs.
The City Council on November 2 °d approved a PA for a small triangular piece of
property (.08 acres) immediately east of the above site located at 2604 138th Avenue NW.
A March 1, 2016 closing date was established in accordance with the approved PA.
Leon Properties Uno, LLC (Acapulco Restaurant) — The land sale closing occurred on
Monday, October 5th. The Commercial Site Plan (CSP) has been approved. Building
Permit has been issued and construction has commenced. A groundbreaking ceremony
occurred on October 10h. The opening of the restaurant will likely occur in July 2016.
ACTION REQUESTED
Receive presentation and provide input as necessary.
Respectfully submitted,
David L. Carlberg
A,Lb , A � ((c)
1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100
FAX (763) 755 -8923 • WWW.CI.ANDOVER.MN.US
TO: President and Commissioners
FROM. Jim Dickinson, Executive Director
David L. Carlberg, Community Devel ent Director
SUBJECT: Redevelopment Area Discussion Update
DATE: November 17, 2015
INTRODUCTION
The EDA is requested to receive an update from staff on the redevelopment of the
Bunker Lake Boulevard/Crosstown Drive /Crosstown Boulevard area.
ACTION REQUESTED
The EDA is requested to continue discussions on the redevelopment of this area.
Respectfully submitted,
* : ar
David L. Carlberg