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HomeMy WebLinkAboutMarch 2, 2016ANL66WR#tt�� 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100 FAX (763) 755-8923 • WWW.ANDOVERMN.GOV ECONOMIC DEVELOPMENT AUTHORITY MEETING March 2, 2016 6:00 p.m. Conference Rooms A & B 1. Call to Order— 6:00 p.m. 2. Approval of Minutes (1/5/16 Regular) 3. Approve Second Amendment to the Purchase Agreement — Final Results of Andover, LLC 4. Presentation — Trident Development, LLC — Estates at Arbor Oaks — TIF Housing District © 5. Continue Discussion of Pond Name — Andover Station 6. 2015 Year in Review — EDA Projects (handout presented at meeting) 7. Other Business 8. Adjournment Lai +r ,`v -9UND 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 Bukkila, James Goodrich, Mike Knight, Valerie Holthus and Joyce Twistol Absent: Commissioner Timothy Cleven Also present: Executive Director, Jim Dickinson Community Development Director, Dave Carlberg Public Works Director/City Engineer, Dave Berkowitz © Others APPROVAL OFMINUTES January 5, 2016, Regular Meeting: Correct as amended. Commissioner Holthus requested corrections on: Page 1, Line 37, her name should be Valerie not Valeria. Page 2, Line 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) © 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 40 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. © 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 133`d 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 Harmer, Recording Secretary