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Home My WebLink AboutEDA - April 5, 2016Y O F OVE, 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100 FAX (763) 755 -8923 • WWW.ANDOVERMN.GOV ECONOMIC DEVELOPMENT AUTHORITY MEETING April 5, 2016 6:00 p.m. Conference Rooms A & B 1. Call to Order— 6:00 p.m. 2. Approval of Minutes (March 2, 2016 Regular) 3. Land Sale Update 4. Depot Pond Signage 5. Update /Trident Development (verbal) 6. Redevelopment Update (verbal) 7. Other Business 8. Adjournment NDOVEA 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 Hartner, Deputy City Clerk SUBJECT: Approval of Minutes DATE: April 5, 2016 INTRODUCTION The following minutes were provided by Staff reviewed by Administration and submitted for EDA approval: March 2, 2016 DISCUSSION The minutes are attached for your review. ACTION REQUIRED Regular 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 48 ANDOVER ECONOMIC DEVELOPMENT AUTHORITYMEETING- MARCH 2, 2016 -MINUTES The Meeting of the Andover Economic Development Authority was called to order by President Julie Trude, March 2, 2016, 6:01 p.m., at the Andover City .Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. Present: Commissioners Sheri Valerie Holthus and J Absent: Commissioner Also present: Executive Director, Others APPROVAL OF January 5, 2016, Cleven Goodrich, Mike Knight, Dave Carlberg !; x, Dave Berkowitz Page 1, Tine 37, her name should be Valerie not Valeria. Page 2, sine 26, the first sentence should, read "Mr. Dickinson gave a brief update..." Motion by Holthus, Seconded by;,Bukkila, "to approve the minutes as amended. Motion carried unanimously. APPROVE SECOND!, AMENDMENT TO THE PURCHASE AGREEMENT -FINAL RESULTS OFANDOVER. LLC Mr. Carlberg explained the EDA is requested to approve the second amendment to the Purchase Agreement with Final Results of Andover, LLC for the property located at 13725 Crosstown Drive to extend the closing date to April 4, 2016. The financing institution for Final Results of Andover, LLC is requesting environmental and appraisal reviews before closing on the property. Motion by Knight, Seconded by Bukkila authorizing EDA Executive Director, Jim Dickinson to execute all closing documents on behalf of the Andover EDA. Motion carried unanimously. (See Resolution R001 -16) 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 — March 2, 2016 Page 2 Motion by Bukkila, Seconded by Twistol, to approve the second amendment to the Purchase Agreement with Final Results of Andover LLC. Motion carried unanimously. PRESENTATION- TRIDENTDEVELOPMENT, LLC-ESTATESATARBOR OAKS -TIF HOUSING DISTRICT Mr. Carlberg introduced Roger Fink of Trident Development, LLC. Mr. Fink reviewed how Trident Development, LLC developed Arbor Oaks Senior Living in the Grey Oaks area 3 -4 years ago. He explained there is an unmet need for senior independent living in Anoka County. Mr. Fink indicated Trident has received approval to construct a 66 unit independent living facility to be known as the Estates of Arbor Oaks, in the Grey Oaks area. Mr. Fink explained the property for the project has been purchased, building plans for a 66 unit facility approved, but estimated construction costs received put the project $1 million dollars over budget. Trident is requesting from the City of Andover a business subsidy in the form of creating a TIF Housing District. With a TIF District 20% of the units would remain affordable. The monthly rent could range from $1,600 - $2,400 depending on the unit. President Trude asked if after the TIF District expires, do those affordable units go away. Mr. Fink answered the units remain affordable the term of the TIF District. He indicated Trident is requesting a 15 year TIF District. Commissioner Bukkila asked about the companies involved in the project. Mr. Fink indicated there are 3 companies involved, Trident Development, LLC is the developer, Lyon Contracting is the builder and Tealwood Management will operate the facility. Commissioner Bukkila indicated her concern with the request of a TIF District is that Trident is requesting the TIF District after finding out the construction costs are over budget $1 million dollars. She feels the TIF District should have been requested in the beginning stages of the project. For that reason she is not in favor of the request. Commissioner Holthus asked what caused the increase in the building cost. Mr. Fink answered the large increase was due to the Atlas 14 storm water requirements. Mr. Berkowitz stated the high water levels on the property brought the structure higher, which would raise the cost. Commissioner Twistol questioned what percentage of seniors would be able to afford the rent for these units. Commissioner Goodrich stated he thinks it is a great project, but fundamentally he is not in favor of the TIF District request. Commissioner Holthus asked if there is a demand for these types of units and what is included in the rent cost. Mr. Fink answered the rental structure includes all utilities, a meal plan, transportation, activities and underground parking. 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 — March 2, 2016 Page 3 Commissioner Holthus asked if the TIF District request was denied what type of facility would be constructed. Mr. Carlberg indicated the property is zoned high density. Mr. Fink stated if the request was denied they may redesign the project. Mr. Dickinson reviewed the TIF District process and indicated at this point no formal TIF application has been made. The thought for this evening's discussion was to gauge interest to see if money spent on a TIF application was a good business decision for Trident. President Trude asked the EDA Commissioners if they are in favor of the request and if they are interested in getting more information about the facility not with a TIF District being created. 4 Commissioners were not in favor of the TIF District request and 2 Commissioners wanted more information about the facility before making a decision to approve or deny a TIF District. Mr. Dickinson stated staff will continue to work with Mr. Fink regarding the project. The EDA thanked Mr. Fink for coming in. CONTINUE DISCUSSION OF POND NAME ANDOVER STATION The pond names submitted by residents were discussed. Motion by Bukkila, Seconded by Holthus to approve "Depot Pond" as the name of the pond located in Andover Station. Motion carried unanimously. 2015 YEAR INREVIEW -EDA PROJECTS Mr. Carlberg handed out information on EDA projects from 2012 — 2016. Mr. Carlberg indicated the proposed message board sign at Hanson Boulevard and 133rd Avenue will be a one sided message board and due to overhead power lines on the west side of Hanson Boulevard, the message board will be placed on the east side, by the Anoka County Sheriff's Office. OTHER BUSINESS There was none. ADJOURNMENT Motion by Bukkila, Seconded by Holthus to adjourn. Motion carried unanimously. The meeting adjourned at 7:00 p.m. Respectfully submitted, 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 Commission CC: Jim Dickinson, Executive Direct FROM: David L. Carlberg, Community SUBJECT: Land Sale Update DATE: April 5, 2016 INTRODUCTION The EDA is requested to receive an update on land sale activity. BACKGROUND Remax Results of Andover 01 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 EDA approved a First Amendment to the Purchase Agreement on December 15, 2015 to extend the closing date to March 1, 2016. The EDA also approved a Second Amendment to the Purchase Agreement on March 2, 2016 to extend the closing date to April 4, 2016. Please note that Inventure Properties, LLC recently assigned the Purchase Agreement to Final Results of Andover, LLC. The City Council also approved the sale of a small triangular piece of property adjacent to this property located at 2604 138th Avenue NW to Inventure Properties, LLC on November 2, 2015. The Purchase Agreement for this parcel established at March 1, 2016 closing date. Please note that Inventure Properties, LLC recently assigned the Purchase Agreement to Final Results of Andover, LLC. The City Council on March 2, 2016 approved a First Amendment to the Purchase Agreement to extend the closing date to April 4, 2016 so both properties can close on the same date. At the time of the writing of this report the closing on the property had not occurred. The closing on the property is scheduled to occur at 3:30 p.m. on April 4th at Registered Abstractors in Anoka. Upon closing on the sale of the property, a 13,000 s.f. office building for Remax Results of Andover will be built on the property this summer. ACTION REQUESTED Receive update. Respectfully submitted, a �j . /- � qa�'a � � David L. Carlberg 2 C I T Y O F ,ND OVE 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100 FAX (763) 755 -8923 • WWW.CI.ANDOVER.MN.US TO: EDA President and Commissioners CC: Jim Dickinson, Executive Director FROM: David L. Carlberg, Community Develop nt Director SUBJECT: Depot Pond Signage DATE: REQUEST April 5, 2016 0 The EDA is requested to discuss the signage for the recently named Depot Pond located in Andover Station. BACKGROUND The EDA at the March 2, 2016 meeting selected the name "Depot Pond" from a list of 72 entries for the pond located in Andover Station. The EDA will need to decide how the new name will be made available /displayed to the public. There is an opportunity to utilize the existing sign support/pole structure that was used to display the concert in the park summer event banner along Bunker Lake Boulevard. The EDA may also wish to choose some type of informational plaque or placard in the area near the pergola with a description of the naming of the pond process. ACTION REQUESTED Direct staff on how the EDA would like to display to the public the Depot Pond name. Respectfully submitted, David L. Carlberg