The URL can be used to link to this page

Home My WebLink AboutEDA - December 15, 2015ANLbD1' O F 60V 16 85 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100 FAX (763) 755 -8923 • WWW.ANDOVERMN.GOV ECONOMIC DEVELOPMENT AUTHORITY MEETING December 15, 2015 6:00 p.m. Conference Rooms A & B 1. Call to Order — 6:00 p.m. 2. Approval of Minutes (11/17/15 Regular) 3. Presentation — Presbyterian Homes — Extension of Note for TIF District 1 -3 4. Approve First Amendment to the Purchase Agreement — Inventure Properties, LLC S. Discuss/Approve 2016 EDA Budget 6. Redevelopment Updates (verbal) 7. Other Business 8. Adjournment -AX66WO P�-- 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 15, 2015 The following minutes were provided by Staff reviewed by Administration and submitted for EDA approval: November 17, 2015 Regular DISCUSSION The minutes are attached for your review. ACTION REQUIRED The EDA is requested to approve the above minutes. Respectfully submitted, Michelle Harmer 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 48 ANDOVER ECONOMICDEVELOPMENT A UTHORITYMEETING- NOVEMBER 17, 2015 -MINUTES The Meeting of the Andover Economic Development Authority was called to order by President Julie Trade, November 17, 2015, 6:00 p.m., at the Andft City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. ... Present: Commissioners Sheri Mike Knight, and Jo3 Absent: Commissioner T Also present: Executive APPROVAL OF MINUTES October 6, 2015, Regu(arMeeiin ; Correct a October 6, 2015, Close'dMeeting.'Verrect as Modon ayes, 0 Cleven Holthus, James Goodrich, Dave minutes as presented. Motion carried 5 — PRESBYTERIAN HOMES — EXTENSION OF NOTE FOR TIF Mr. Carlberg Wicked some EDA Commissioners toured Presbyterian Homes (The Farmstead). During the tour a number of questions came up for Presbyterian Home's representatives, the representatives have asked the their presentation be tabled in order for them to address those questions in their present i President Trade requested any questions the EDA Commissioners may have to email them to Mr. Carlberg and he will forward them on to the representatives. Mr. Dickinson reviewed TIF District 1 -3. He explained the TIF District has a certification life of 25 years. In the case of the Farmstead project a "pay as you go" revenue note of 15 years was issued. The 15 years has expired, Presbyterian Homes is looking for a 10 year extension of the note to match the life of the TIF District. Commissioner Holthus asked what if the note is not extended. Mr. Dickinson answered 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 Andover Economic Development Authority Meeting Minutes —November 17, 2015 Page 2 Presbyterian Homes obligation of providing 20% of its units as affordable housing would expire. Mr. Dickinson explained generally for a TIP allocation, Presbyterian Homes would be required to do some related improvements, such as parking improvements, as qualifying reimbursable costs. Mr. Dickinson indicated Presbyterian Homes will give their presentation to the EDA at a December meeting. APPROVE LMCIT LIABILITY COVERAGE — EDA Mr. Dickinson stated the League of Minnesota Cities Insurance Trust (LMCM has requested that participating entities annually decide whether or not to waive the statutory tort liability limits established by Minnesota Statutes 466.04. Currently the City of Andover EDA Does Not Waive the monetary limits on municipal tort liability established by Minnesota Statutes 466.04. It is his recommendation to continue with past practices. Motion by Twistol, Seconded by Bukkila, to approve the LMCIT Liability Coverage and to not waive the monetary limits on tort liability established by Minnesota Statutes 466.04. Motion carried unanimously. PURCHASE AGREEMENT UPDATES Mr. Carlberg updated on the following: Inventure Properties, LLC— December 1, 2015 is the scheduled closing date for the 1.75 acre Stop -N -Shop site, 13725 Crosstown Drive. Staff is currently working with Boser Construction, Inc. on preliminary site drawings. City Council approved a purchase agreement for a small triangular piece of property east of the site. A March 1, 2016 closing date was established. Leon Properties Uno, LLC— Construction has begun on the Acapulco Restaurant. Staffis working on an issue at the site where the electrical installed for a sign on Bunker Lake Boulevard was installed very shallow. Staff is working with Connexus Energy to place a small transformer and meter by the sign. REDEVELOPMENT UPDATE/BUNKER LAKE BOULEVARD /CROSSTOWN DRIVE Mr. Dickinson reviewed the area. Staff had contacted a property owner regarding the sale of the property. Mr. Dickinson indicated at this time there is no reason to continue to try and negotiate since the property owner's price is much more than the current value. President Trude stated the goal is to get a quantity of property for the possible construction of quality rental housing buildings. Staff will continue to monitor the area. Andover Economic Development Authority Meeting Minutes — November 17, 2015 Page 3 OTHER BUSINESS There was none. 6 ADJOURNMENT 7 8 Motion by Bukkila, Seconded by Twistol, to adjourn. Motion carried unanimously. The meeting 9 adjourned at 6:56 p.m. 10 11 Respectfully submitted, 12 13 14 Michelle Harmer, Recording Secretary 15 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100 FAX (763) 755 -8923 • WWW. C L 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: December 15, 2015 The EDA is requested to consider extending the life of Tax Increment Financing District 1 -3, a 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. Micnson pectfully submitted, J David L. Carlberg C I T Y O F a ND OVE 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100 FAX (763).755 -8923 • W W W CI ANDOVER MN.US TO: EDA President and Board CC: Jim Dickinson, Executive Directo FROM: David L. Carlberg, Community Deve pment Director SUBJECT: Approve First Amendment to the Purchase Agreement ;l— Inventure Properties, LLC — 13725 Crosstown Boulevard NW DATE: December 15, 2015 The EDA is requested to approve the attached First Amendment to the Purchase Agreement with Inventure Properties, LLC for the property located at 13725 Crosstown Drive NW. The Purchase Agreement between the EDA and Inventure Properties, LLC for the sale of the property located at 13725 Crosstown Drive NW established a closing date of December 1, 2015. The City Council approved the sale of a small triangular piece of property adjacent to this property located at 2604 138" Avenue NW to Inventure Properties, LLC on November 2, 2015. The Purchase Agreement for this parcel established at March 1, 2016 closing date. City Staff and Inventure Properties, LLC representatives are in agreement that it is logical and prudent to extend the closing date for the parcel located at 13725 Crosstown Drive NW from December 1, 2015 to March 1, 2016 so both properties can close on the same date. The EDA is requested to approve the attached First Amendment to the Purchase Agreement. Respectfully submitted, David L. Carlberg Attachments First Amendment to the Purchase Agreement FIRST AMENDMENT TO PURCHASE AGREEMENT 13725 Crosstown Drive NW (PIN 33- 32 -24 -13 -0046) DATE: November 19, 2015 WHEREAS, the Andover Economic Development Authority (AEDA), (Seller), and Inventure Properties, LLC and /or its assigns. (Buyer) have entered into a Purchase Agreement dated September 1, 2015 for the sale of the property located at 13725 Crosstown Drive NW (PIN 33- 32- 24 -13- 0046). WHEREAS, the City of Andover entered into a Purchase Agreement on October 13, 2015 to sell to Inventure Properties, LLC (Buyer) an additional piece of property located at 2604 138a' Avenue NW (PIN 33- 32 -24 -13 -0047) consisting of .O8 acres lying adjacent to the parcel identified in this Amendment. WHEREAS, the closing date for the sale of the parcel located at 2604 138'" Avenue NW in accordance with the October 13, 2015 Purchase Agreement has been set for March 1, 2016 to allow for the necessary amount of time to address land use and zoning changes needed to accommodate the Buyer's plans to develop the site. WHEREAS, the closing date specified in the Purchase Agreement dated September 1, 2015, for the sale of the property located at 13725 Crosstown Drive NW, was December 1, 2015. WHEREAS, both the Seller and Buyer agree that closing on the sale of both parcels on the same date and time is logical and prudent. NOW THEREFORE, Seller and Buyer agree to the following: 1) The Closing date for the sale of the property located at 13725 Crosstown Drive NW shall be extended to March 1, 2016. 2) Except as expressly amended hereby, all of the terms, provisions, covenants and conditions of the September 1, 2015 Purchase Agreement are hereby ratified and confirmed and shall continue in full force and effect. Inventure Properties, LLC Andover Economic Development Authority (AEDA) Douglas J. Boser, Chief Manager Julie Trade, President. Date Date Jim Dickinson, Executive Director Date Page 1 of 1 &10 1 1 IMP 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100 FAX (763) 755 -8923 • WWW.CLANDOVER.MN.US TO: President and Comndssioners FROM: Jim Dickinson, Executive Director SUBJECT: Discuss/Appmve 2016 EDA Budget DATE: December 15, 2015 INTRODUCTION The EDA is requested to receive a brief presentation on the proposed 2016 Special Revenue Fund budget. DISCUSSION The Executive Director will use the attached documents as the basis for the 2016 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 2016 3. EDA Budget Detail Worksheets Receive a presentation, discuss and adopt the proposed 2016 EDA Special Revenue Fund budget. es fully submitted, is nson A bments City of Andover Special Revenue Funds Economic Development Authority Fund Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 $ 405,838 $ 380,792 $ 380,792 $ 240,843 Revenues Charges for Services 36,622 15,600 20,000 20,000 Investment Income 10,677 5,000 5,000 5,000 Miscellaneous 5,868 - Total Revenues: 53,167 20,600 25,000 25,000 Other Sources Transfers In - - - - Total Revenues and Other Sources: 53,167 20,600 25,000 25,000 Total Available: 459,005 401,392 405,792 265,843 Expenditures Personal Services 48,502 53,149 53,149 22,610 Supplies and Materials 11,235 18,200 18,200 18,900 Purchased Services 8,477 78,750 78,750 78,800 Other Services and Charges 9,999 14,850 14,850 14,850 Capital Outlay - - - - Total Expenditures: 78,213 164,949 164,949 135,160 Other Uses Transfers Out Total Expenditures and Other Uses: 78,213 164,949 164,949 135,160 Fund Balance, December 31 $ 380,792 $ 236,443 $ 240,843 $ 130,663 Fund: Economic Development Authority Activity Type /Code: Special Revenue Expenditure Highlights 2014, 2015 & 2016 includes funding for monument entrance signs. EDA Budget provides for ongoing maintenance around the Andover Station Development area. In 2015, charges for services revenue is reduced due to the decertification of TIF District 1 -2, of which this fund would receive TIF administration fees. 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 four 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 2016 BUDGET CITY OF ANDOVER, MINNESOTA EDA A-- Number Bnerl00ou ebmBea BOrxmkea 54370 Tan bummett AdmmktlaliOnF Aemsl cmrSesFOrxrvw:s A.M Ne m 10= 56910 1.. Earned 56920 Valuation AdjuN 2010 NvMOneN NCnme 2012 Mixelhrcnus Remm�e SBICO RerundsffiReimbmsnoems 2015 Mixelleceous Revrnue T.IRemora 60110 60140 60210 60220 60310 60320 60330 60340 60410 60420 60990 61005 61105 61130 61310 61315 61320 61405 61410 62005 62010 62100 622W 62210 63005 63010 63015 63025 631W 632W 65200 653W xlm & a.% xlmiea- Reguly Saimies- COUrcII /COmmimio FICA Manure HeJW IOSmms Life lmvnrce Lo - T.Dimb'd11y PERA Nazioowide R. 4 -City Lehr Allaoation Salt' & B'm. DepoTneval Supplies -Gercnl R &M SWM-G-M R &M SW -Lades Meek /LodguW COMmlwS Educadon Po Dues /Liumes Po&a¢ Twpott4koo /MEmge Oepvtmuual Opuv0i8 Eta W. knumtm Reoble Computer SarRea Opuamtg P.Or wml5m Pm siou Services COmracmal xrvieee Avomey Pub! b ng RffiMLeNr- Genital WpiW ouory BuOdmgu ImpmvemMa Capitll Omlay ToAIES odihm Net4ernee(Decrosvlw FB Fund Beknce B".n ' Eodl, CITY OF ANDOVER Budge)WorRbeet -2016 12/100015 210-46500 Aemsl M.SI A.M Aetutl Ae..l w,d"' Esdmte Re9.vl 2010 2011 2012 2013 2014 2015 2015 2016 199,403 199,030 190,538 37,303 36,622 15,603 20.00 20000 199,03 199030 190.538 37,306 36,622 ISM 20,000 20000 8,223 10,020 9,063 7,468 8,765 51000 5,000 5;000 1,0]] 5.128 (1.841) 11014641 1,912 9jW 15.148 7.222 12,9961 10,677 S.Q"0 S,CgI S.LCO 547 34.196 50 6,620 5,30 547 34,196 509 6,620 5,80 209,250 MV74 198.269 40,930 53,16] 2 23,000 25,030 0,025 75,527 77,026 80,666 35,07 - - - 532 533 494 3jw 2,440 5,600 5,600 5,600 4,489 4,237 4,386 4,690 2,235 347 30 347 1,063 1,020 1,051 1,139 534 81 81 81 8,945 8,546 9,124 9232 5,065 - - - 326 289 317 329 174 - - - 12 13 13 11 6 189 167 190 190 91 5,458 5,152 5,561 5,80] 2,699 - - - 514 514 514 513 231 - - - 47,121 47,121 16,582 100,556 95,993 98,676 106,157 48,902 53,149 53,149 22.610 546 1,149 1245 3,409 7,326 2,030 2,403 2,000 1,202 1,483 - - - - - 1,924 830 - - 307 IO,000 101000 10,000 - 45 16 175 99 700 7W 700 200 25 1,500 I'M I,Snd 915 1204 938 2,348 1,493 800 B00 1,500 506 223 594 615 185 I'M 1,000 1,000 1,800 1,882 1,800 1,804 1800 2,200 2200 2,200 7,03 6,816 4,593 8,351 11235 18,200 18,200 18,900 5,172 4,861 5,063 5,920 4364 8,000 8,00o 8,000 - - 536 1,062 365 - - - 4,738 2,873 2,491 31 08 3,6]0 5,250 5,250 5,250 2,563 1,924 - - - - - - 1,600 1,600 1,600 1,600 1600 1,600 1.600 1.600 14,03 11256 9,690 11,663 9.999 14,850 14,850 14,650 3,464 9,917 9,255 1,965 3,669 5,250 5250 5,300 17,00 32,576 20,696 4,903 AWS 69,000 69,000 69,000 - 197 - 2,000 2.m 2,000 988 971 628 1,03] 763 2,500 2,500 2,500 24 84 21,522 43,661 30,579 7M9 8,4]] 78,750 ]8,750 7$803 - 21,683 - - 38,327 38,950 14.185 WQ010 38,950 14,185 103219 21].738 183A58 148)43 ]8211 164949 UKWI 135160 -1-06 30,636 15]81 110].4151 (25,046) 141 49 (1)9.949) (IIRI60) 40,830 166,06 4""72 5134M 40SMS MTO 3&1,792 24,841 166,536 49],4]2 50253 405,838 380,792 2M 240,66 13,60 12/100015 City of Andover Budget Detail for all Object Codes (List each expense a ccountindividually with specific cast detail) Department /Cost Center: Economic Development -2110 Object Code Explanation Amount Requested Total 2016 Request Priority 1through 5 1- high :5 -low 2015 Budget 2016 Adjustment 61005 SUPPLIES - GENERAL 2,000 2,000 0 0 --paper/promotions-suppli 0 0 Total 2,000 0 2,000 61130 R & M SUPPLIES - LANDSCAPE 10,000 10,000 median expenditures 0 0 0 0 Total 10,000 0 10,000..... 61310 MEALS /LODGING 700 700 Special events participation - Staff /Commission 0 0 0 0 Total 700 0 700 61315 CONTINUING EDUCATION 1,500 1,500 Training opportunities - Staff /Commission 0 0 0 0 Total 1,500 0 1,500 61320 ANNUAL DUE$ /LICENSES 800 700 1,500 Chamber of Commerce Dues 0 0 -Anoka Area & Metro North 0 0 0 0 Total 800 700 1,500 81405 POSTAGE 1,000 1,000 Newsletter Publication & Mailings 0 0 01 0 Total 1,000 0 1,000 61410 TRANSPORTATION /PARKING 2,200 2,200 Staff /Commislon 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 Coat Sharing 0 0 0 0 Total 8,000 0 8,000 62100 INSURANCE 5,250 5,250 Risk Management/LMCIT Premiums 0 0 0 0 Total 5,250 0 5,250 62210 COMPUTER SERVICES 1,600 1,600 Central systems - Server /emaigimaging /etc. 0 0 0 0 Page I oft City of Andover Budget Detail for all Object Codes (List earn expense account individually with specific costdetad) Department /Cost Center: Economic Development - 2110 Object Code Explanation Amount Requested Total 2016 Request Priority 1 through 5 '1-high 5-low 2015 Budget 2016 Adjustment Total 1,600 0 1,600 63005 PROFESSIONAL SERVICES 3,500 3,500 Audit and Financial Services 1,750 50 1,800 0 0 Total 5,250 50 5,300 63010 CONTRACTUAL SERVICES 1,000 1,000 Landscaping Andover Station - aasoc 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 30,000 Total 69,000 0 69,000 63015 ATTORNEY 2,000 2,000 0 0 0 0 Total 2,000 0 2,000 63025 PUBLISHING 2,500 2,500 Tax Increment ReportIng 0 0 0 0 Total 2,500 0 2,500 Grand Total for all Expenditures $111,800 $750 $112,550 Page 2 oft