HomeMy WebLinkAboutEDA - November 20, 20181685 CROSSTOWN BOULEVARD N.W.. ANDOVER, MINNESOTA 55304 • (763) 755-5100
FAX (763) 755-8923 • WWW.ANDOVERMN.GOV
ECONOMIC DEVELOPMENT AUTHORITY
MEETING
November 20, 2018
6:00 p.m.
Conference Rooms A & B
1. Call to Order— 6:00 p.m.
2. Approval of Minutes (October 16, 2018)
3. Commercial Activity Updates
4. Redevelopment Updates — verbal
5. Review/Recommend 2019 EDA Budget
6. Approve LMCIT Liability Coverage/EDA
7. Other Business
8. Adjournment
1685 CROSSTOWN BOULEVARD N.W.. ANDOVER, MINNESOTA 55304 • (763) 755-5100
FAX (763) 755-8923 • WWW.ANDOVERMN.GOV
TO: Economic Development
CC:
FROM
Jim Dickinson, City Adn
Michelle Harmer, Deput.
SUBJECT: Approval of Minutes
DATE: November 20, 2018
INTRODUCTION
The following minutes were provided by Staff reviewed by Administration and submitted
for EDA approval:
October 16, 2018 Regular
DISCUSSION
The minutes are attached for your review.
ACTION REQUIRED
The EDA is requested to approve the above minutes.
Respectfully submitted,
fh,W61,kKi-,
Michelle Harmer
Deputy City Clerk
Attach: Minutes
1
2
3
4
5
6 ANDOVER ECONOMIC DEVELOPMENTA UTHORITYMEETING-
7 OCTOBER 16, 2018 -MINUTES
8
9
10 The Meeting of the Andover Economic Development Authority was called to order by President
11 Julie Trude, October 16, 2018, 6:01 p.m., at the Andover City Hall, 1685 Crosstown Boulevard
12 NW, Andover, Minnesota.
13
14 Present: Commissioners Sheri Bukkila (arrived at 6:03 p.m.), James
15 Goodrich, Valerie Holthus; Mike Knight, Joyce Twistol and Kari
16 Kafer
17
18 Absent: None
19
20 Also present: EDA Executive Director, Jim Dickinson
21 Community: Development Director/Joe Janish
22
23
24 OATH OF OFFICE
25
26 Mr. Dickinson administered the Oath of Office for new resident Commissioner Kari Kafer.
27
28 APPROVAL OFMINUTES_
29
30 September 18, 2018, Regular Meeting: Correct as written.
31
32 Motion by Goodrich, Seconded by Knight, to approve the above minutes as written. Motion
33 carried 5 ayes, 1 absent (Twistol) and 1 present (Kafer).
34
35 ANOKA COUNTY REGIONAL',ECONOMIC DEVELOPMENT INITIATIVE MOU AND
36 COSTSHARINGAGREEMENT''
37
38 Mr. Janish stated in 2017 Anoka County, Connexus Energy and Metro North Chamber of
39 Commerce along with Anoka County communities worked with Ady Advantage to develop an
40 economic development road map. The purpose of the agreement is to encourage economic
41 development within the County.
42
43 Mr. Janish continued the County hired Jacquel Hajder as an Economic Development Specialist to
44 manage the program. During Ms. Hajder's time the development of a Memorandum of
45 Understanding (MOU) has been drafted.
46
47 The MOU outlines the following:
48
Andover Economic Development Authority Meeting
Minutes — October 16, 2018
Page 2
1 ■ Purpose
2 ■ Outlines general objectives
3 • Defines mutual responsibilities
4 ■ Sets goals, timelines, communication and other details
5 ■ Term
6 ■ 5 years
7 ■ Executive Committee
8 Establishes how the committee is established and membership
9
10 Mr. Janish indicated there will be a small group established that will provide direction to a larger
11 group. The larger group will provide direction to Ms. Hajder.
12
13 Mr. Janish stated the Cost Sharing Agreement sets the budget for 2019 of $20,000. Cities agree
14 to contribute $0.057 per resident within its city limits. The City of Andover's contribution is
15 expected to be around $1,800 for 2019.
16
17 President Trude asked why the County seems to have more members than anyone else. Mr. Janish
18 replied the agreement states no more than two County representatives may be designated as
19 "voting members", in excess of the two voting members, shall participate as non-voting members.
20
21 Motion by Bukkila, Seconded by Twistol to approve the Anoka County Regional Economic
22 Development Initiative MOU and Cost Sharing Agreement. Motion carried unanimously.
23
24 BUNKER LAKE BOULEVARD MEDIAN
25
26 Mr. Janish stated in the spring of 2018 Commissioner Twistol and Kameron Kytonen, Natural
27 Resources Technician for the City spent time checking into possible options for the medians. The
28 EDA decided to move forward with ornamental flowers. Anoka County Highway Department
29 policies require ornamental plantings within the right-of-way to be irrigated.
30
31 Mr. Janish indicated Mickman Brothers submitted irrigation quotes: There are two options:
32
33 • $22,988 base bid, if boring new sleeves is necessary.
34 . $20,690 base bid, if boring new sleeves is NOT necessary.
35
36 President Trude mentioned by having irrigation installed plants in the median can be changed. She
37 added she supports the cost of installing the irrigation system.
38
39 Mr. Dickinson indicated the irrigation will be a dip system, not a spray system.
40
41 Mr. Janish stated each year there will be a cost for start up and closing out the system for the
42 season.
43
44 Commissioner Goodrich asked where the money is coming from to pay for the irrigation system.
45 Mr. Dickinson answered the EDA budget will need to provide the funding.
Andover Economic Development Authority Meeting
Minutes — October 16, 2018
Page 3
President Trude asked when the irrigation system would be installed and if a planting budget
should be added to the 2019 EDA budget. Mr. Dickinson indicated they are looking at installation
in the spring of 2019 and a planting budget will need to be added to the 2019 EDA budget at a
future EDA meeting when the 2019 budget is approved.
Motion by Twistol, Seconded by Knight approving the installation of an irrigation system in the
Bunker Lake Boulevard median. Motion carried unanimously.
9 President Trude mentioned the City owned property in Andover Station, indicating several years
10 ago the developer gave the City money for some type of art project in the area. In previous EDA
11 meetings they discussed installing a sign with a plaque by Depot Pond with the history of Andover,
12 a train car and some type of art. She asked the EDA what they would like to see done in the area.
13
14 Commissioner Goodrich asked how much money is available for this area. Mr. Dickinson
15 answered $22,000-$23,000.
16
17 The project was discussed.
18
19 Mr. Dickinson reviewed direction from the EDA as a sign by the pond, explore metal art
20 possibilities and continue the search for a train car/caboose. The EDA concurred.
21
22 COMMERCL4L ACTIVITY UPDATES
23
24 Mr. Janish reviewed the following:
25
26 Karate School, 15190 Bluebird Street, Suite 112 — The tenant space previously occupied by a
27 tanning salon is being remodeled to provide for a karate school. The building permit has been
28 issued and opening is pending final inspection.
29
30 Walmart, 1851 Bunker Lake Boulevard— Walmart is remodeling the front end/cashiering area of
31 the store to provide for racking and online order grocery pick-up.
32
33 McDonalds,15232 Bluebird Street—A scheduled renovation is permitted and underway, majority
34 of the work is occurring in the customer dining area and includes new tables, seating and interior
35 finishes.
36
37 McDonalds,13731 Round Lake Boulevard- A scheduled renovation is permitted and underway,
38 majority of the work is occurring in the customer dining area and includes new tables, seating and
39 interior finishes.
40
41 Domino's Pizza, 2256 Bunker Lake Boulevard — A portion of the tenant space occupied by Belli
42 Capelli Salon is being remodeled to become a Domino's Pizza take-out.
43
44 FedEx/Walmart Tenant,1851 Bunker Lake Boulevard — A FedEx service office is being built in
45 one of the tenant bays at the front of the Walmart Store.
Andover Economic Development Authority Meeting
Minutes — October 16, 2018
Page 4
1 Anoka Parks, Activity Center Greenhouse Demolition and Renovation, 550 Bunker Lake
2 Boulevard — Demolition of the existing greenhouse area will give way to an outdoor patio area
3 with a large deck. Footings are in. Other improvements are to renovate the site approach and
4 provide for better accessibility and general renovation.
5
6 Restaurants/Fast Food — Currently staff is aware of two companies continuing to look for land to
7 locate in Andover.
8
9 Upper Midwest Athletic Construction — A CUP was granted for outside storage. The owner
10 provided a commercial site plan that has been reviewed. The owner is working with his engineer
11 on comments. The owner did express frustration with some of the comments due to code
12 requirements.
13
14 Hearth Development, 1714 Bunker Lake Boulevard— Is under construction. They have not
15 named any of the tenants that will be occupying the building.
16
17 Commissioner Knight asked about the Centerpoint property off 7th Avenue and Bunker Lake
18 Boulevard regarding access for the Sonsteby property. Mr. Janish indicated he had spoken with
19 the real estate agent for Quest Development and was told the developer Dominion has walked
20 away from pursuing a 4 -story apartment building with underground parking at this location. At
21 some point the City will sit down with Anoka County, the City of Anoka, Centerpoint Energy
22 and Quest Development to discuss the design work for the access intersection off 7th Avenue.
23
24 OTHER BUSINESS
25
26 Mr. Dickinson updated on the redevelopment area, indicating the property at 2526 138th Avenue
27 owned by the City was thought at some point to be used for relocation. Staff is finding with
28 remodel costs and experiencing vandalism in the area, it might be wise to take the building down.
29 He recommends taking down the garage first.
30
31 President Trude suggested installing a yard light on the property.
32
33 The EDA direction to staff is to take the garage down and install a yard light.
34
35 ADJOURNMENT
36
37 Motion by Bukkila, Seconded by Knight to adjourn. Motion carried unanimously. The meeting
38 adjourned at 6:51 p.m.
39
40 Respectfully submitted,
41
42 Michelle Harmer, Recording Secretary
43
ANL66V9^_ (JD*
1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100
FAX (763) 755-8923 • WWW.ANDOVERMN.GOV
TO: President and Commissioners
CC: Jim Dickinson, Executive Director
FROM: Joe Janish, Community Developmen i ector
SUBJECT: Review Commercial Project Activity
DATE: November 20, 2018
INTRODUCTION
Staff will provide a progress report on ongoing commercial project activity at the meeting.
ANDOVER COMMERCIAL PROJECTS
• The Shops @ Andover, 13650 Hanson Boulevard NW —AT&T, Natural Nails, Dunkin Donuts,
Joy Kitchen, Twin Cities Dental, SportClips are all open.
• Karate School, 15190 Bluebird St NW, Suite 112 — The tenant space previously
occupied by a tanning salon is being remodeled to provide for a karate school.
Building permit has been issued and opening is pending final inspection.
• Walmart Front End Pickup Remodel, 1851 Bunker Lake Blvd NW -- Walmart is
remodeling the front end/cashiering area of the store to provide for racking and online
order grocery pick-up.
• FedEx/Walmart Tenant Build Out, 1851 Bunker Lake Blvd. NW — A FedEx services office is
being built into one of the tenant bays at the front of the Walmart Store.
• McDonalds Interior Remodeling/Renovation, 15232 Bluebird Street NW — A
scheduled renovation is permitted and underway, majority of work is occurring in the
customer dining area and includes new tables, seating and interior finishes.
• McDonalds Interior Remodeling/Renovation, 13731 Round Lake Blvd NW — A
scheduled renovation is in application for permit, the majority of work is occurring in
the customer dining area and includes new tables, seating and interior finishes.
• Domino's Pizza, 2256 Bunker Lake Blvd. — A portion of the tenant space occupied by Belli
Capelli Salon is being remodeled to become a Domino's Pizza take-out. City staff was able to
negotiate no charges for SAC units saving the owner around $25,000.
• Anoka Parks, Activity Center Greenhouse Demolition and Renovation, 550 Bunker Lake
Blvd. NW — Demolition of the existing greenhouse area will give way to an outdoor patio area.
Footings are in. Other improvements are to renovate the site approach and provide for better
accessibility and general renovation.
• Jon Smith Subs, 15190 Bluebird St NW, Suite 107 — A building permit has been issued for
remodeling of the tenant space previously occupied by Keomawny Asian Cuisine to become Jon
Smith Subs.
• Restaurants/Fast Food — Currently staff is aware of companies continuing to look for land to
locate in Andover.
• Upper Midwest Athletic Construction — A CUP was granted for outside storage. The owner
provided a commercial site plan that has been reviewed. The owner is currently working with his
Engineer on comments.
• Hearth Development, 1714 Bunker Lake Blvd. NW — Is under construction.
• Clock Tower Commons —Tom Roberts has indicated he has some interest in lot 4 but nothing is
concrete at this time. Mr. Roberts is looking at some adjustments to lot 4. The adjustments have
caused for storm water requirements to be met at this time.
• Andover High School, 2018 Additions and Renovations — Construction is in process. The
project has a value expected around $11.9 million -dollar project. All demolition work is
complete. Footing and foundation work is about 80% complete. West wall is started and will be
the 2 story area for science classrooms.
• Estates at Arbor Oaks / Trident Development, 1753 156' Lane NW — In process of renting
out units. Within 30 days, they expect to be 72% full. The apartments rent for $1,600 to $2,859
per month.
• Crosstown Square, 13632 Crosstown Blvd. NW — Staff was contacted by the property owner
and informed that one of the spaces will be available at the beginning of 2019.
• Interest in Hughes Industrial Park — Interest in the area has quieted down. A few properties are
being marketed in the area.
• Beberg Landscaping — Is marketing one of their lots (where the outside storage is currently).
• Overall marketing - City Staff continue to work with parties interested in investing in Andover
and marketing all commercial sites.
Respectfully submitted,
Joe Janish
1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100
FAX (763) 755-8923 • WWW.ANDOVERMN.GOV
TO: President and Commissioners
FROM: Jim Dickinson, Executive Director
SUBJECT: Review/Discuss/Recommend Proposed 2019 EDA Budget
DATE: November 20, 2018
INTRODUCTION
The EDA is requested to receive a brief presentation on the proposed 2019 Special Revenue Fund budget.
The Executive Director will use the attached documents as the basis for the 2019 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 2019
3. EDA Budget Detail Worksheets
ACTION REQUESTED
a presentation, discuss and recommend a proposed 2019 EDA Special Revenue Fund budget.
submitted,
City of Andover
Special Revenue Funds
Economic Development Authority Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
K77aNO3 ��a. "�§ R
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`�'�'wv�y` ® v%'�� !
Fund Balance, January 1
Revenues
Charges for Services
Investment Income
Miscellaneous
Total Revenues:
Other Sources
Transfers In
Total Revenues and Other Sources:
Total Available:
Expenditures
Personal Services
Supplies and Materials
Purchased Services
Other Services and Charges
Total Expenditures:
Other Uses
Transfers Out
Total Expenditures and Other Uses:
Fund Balance, December 31
Change in Fund Balance
$ 312,000 $ 294,760 $ 294,760 $ 214,508
7,249
3,383
367
10,999
10,999
322,999
10,839
4,413
5,137
7,850
28,239
239
$ 294,760
$ (17,240)
-6%
8,000
3,000
11,000
11,000
305,760
14,302
18,900
63,200
13,850
110,252
7,000
3,000
10,000
10,000
304,760
14,302
13,900
50,200
11,850
90,252
7,000
2,000
9,000
9,000
223,508
6,028
18,900
63,300
13,850
102,078
110,252 90,252 102,078
$ 195,508
$ (99,252)
-34%
$ 214,508
$ (80,252)
-27%
$ 121,430
$ (93,078)
-43%
Fund: Economic Development Authority
Activity Type/Code: Special Revenue
Expenditure Highlights
2018 & 2019 includes funding for monument entrance signs.
EDA Budget provides for ongoing maintenance around the Andover Station
Development area.
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 2019 BUDGET
CITY OF ANDOVER, MINNESOTA
CITY OF ANDOVER
Budget Worksheet - 2019
EDA
2110-46500
Account
Actual
Actual
Actual
Actual
Actual
Budget
Estimate
Requested
Number
Description
2013
2014
2015
2016
2017
2018
2018
2019
�� Revenues
Charges for Services
54370
Tax Increment Administration F
37,306
36,622
20,895
9,181
7,249
8,000
7,000
7,000
Charges for Services
37,306
36,622
20,895
9,181
7,249
8,000
7,000
7,000
Investment Income
56910
Interest Earned
7,468
8,765
3,946
4,077
4,517
3,000
3,000
2,000
56920
Valuation Adjustment
(10,464)
1,912
(114)
(217)
(1,133)
Investmentlncome
(2,996)
10,677
3,832
3,860
3,384
3,000
3,000
2,000
Miscellaneous Revenue
58100
Refunds& Reimbursements
6,620
5,868
930
1,478
367
Miscellaneous Revenue
6,620
5,868
930
1,478
367
Total Revenues
40,930
53,167
25,657
14,519
11,000
11,000
10,000
9,000
Salaries & Benefits
60110
Salaries -Regular
80,686
35,027
35,737
11,583
6,421
-
-
-
60140
Salaries -Council/Commissio
3,560
2,440
2,840
2,040
2,160
5,600
5,600
5,600
60210
FICA
4,690
2,235
2,162
851
496
347
347
347
60220
Medicare
1,139
534
523
214
119
81
81
81
60310
Health Insurance
9,M
5,065
5,032
1,569
802
-
-
-
60320
Dental Insurance
329
174
183
59
35
-
-
-
60330
Life Insurance
11
6
4
1
1
-
-
-
60340
Long -Tenn Disability
190
91
78
26
16
-
-
-
60410
PERA
5,807
2,699
2,679
949
483
-
-
-
60420
Nationwide Retirement
513
231
220
125
72
-
-
-
60520
Workers Comp
-
-
-
322
235
-
-
-
60990
Inter -City Labor Allocation
8,274
8,274
Salaries & Benefits
106,157
48,502
49,458
17,739
10,840
14,302
14,302
6,028
Departmental
61005
Supplies - General
3,409
7,326
814
300
1,170
2,000
2,000
2,000
61105
R & M Supplies - General
-
-
735
16
-
-
-
-
61130
R & M Supplies - Landscape
-
307
-
-
-
10,000
5,000
10,000
61310
Mcals/Lodging
175
99
100
90
-
700
700
700
61315
Continuing Education
-
25
-
-
305
1,500
1,500
1,500
61320
Annual Dues/Licenses
2,348
1,493
1,475
1,069
998
1,500
1,500
1,500
61405
Postage
615
185
140
144
140
1,000
1,000
1,000
61410
Transportation/Mileage
1,804
1,800
1,800
1,800
1,800
2,200
2,200
2,200
Departmental
8,351
11,235
5,064
3,419
4,413
18,900
13,900
18,900
Operating
62005
Electric
5,920
4,364
3,678
3,083
3,129
7,000
5,000
7,000
62010
Water
1,062
365
667
814
800
-
-
-
62100
Insurance
3,081
3,670
3,301
2,597
2,321
5,250
5,250
5,250
62200
Rentals
62210
Computer Services
1,600
1,600
1,600
1,600
1,600
1,600
1,600
1,600
Operating
11,663
9,999
9,246
8,094
7,850
13,850
11,850
13,850
Professional Services
63005
Professional Services
1,965
3,669
1,918
3,349
3,402
5,700
5,700
5,800
63010
Contractual Services
4,903
4,045
4,561
3,257
845
53,000
40,000
53,000
63015
Attorney
-
-
615
234
-
2,000
2,000
2,000
63025
Publishing
1,037
763
1,136
878
890
2,500
2,500
2,500
63100
R & M Labor -General
-
-
-
_
63200
Inspections
84
Professional Services
7,989
8,477
8,230
7,718
5,137
63,200
50,200
63,300
Capital Outlay
65200
Buildings
-
65300
Improvements
14,185
-
-
-
-
-
-
-
Capital Outlay
14,185
Total Expenditures
148,345
78,213
71,998
36,970
28,240
110,252
90,252
102,078
Net Increase (Decrease) in FB
(107,415)
(25,046)
(46,341
22,451)
(17,240)
(99,252)
80,252)
(93,078
Fund Balance
Beginning
513,253
405,838
380,792
334,451
312,000
294,760
294,760
214,508
Ending
405,838
380,792
334,451
312,000
294,760
195,508
214,508
121,430
11/1512018
City of Andover
Budget Detail for all Object Codes
(List each expense account individually with specific cost detail)
Department / Cost Center: Economic
- 2110
Object
Code
s
: Explanation`
Amount Requested
2016 2019
Budget '. Adjustment
: Total
: 2019
Request !
Priority'
1 through.5 -'.
1-h�gh:5-low'
61005
SUPPLIES - GENERAL
2,000
2,000
paper/promotions supplies
0
0
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
I
61320
ANNUAL DUES / LICENSES
1,500
1,500
Chamber of Commerce Dues
0
0
-Anoka Area & Metro North
0
0
0
0
Total
1,500
0
1,500
-
61405
POSTAGE
1,000
1,000
Newsletter Publication & Mailings
0
0
0
0
Total
1,000
0
1,000
61410
TRANSPORTATION / PARKING
2,200
2,200
Staff/Commision Travel
0
0
Executive Director % allocation
0
0
0
0
Total
2,200
0
2,200
62005
JELECTRIC
7,000
7,000
Andover Station Area Street Liaht Cost Sharino
n
n
62100
62210
lement/LMCIT Premiums
SERVICES
tems - Server/email/imag
Page ! of 2
0
5,250:
1,600
0
City of Andover
Budget Detail for all Object Codes
(List each expense account individually with specific cost detail)
Department / Cost Center: Economic Development - 2110
I I 1 01 1 01 1
63005 1PROFESSIONAL
Audit - LB
0 0
Total 5,700 100 5,800
63010 CONTRACTUAL SERVICES 1,000 1,000
Landscaping @ Andover Station - assoc membership 2,000 2,000
Maintenance -Andover Station Area 10,000 10,000
Partnership opportunities - EDA Discretionary 10,000 10,000
Community Monument Entrance Signs 130,000 30,000
Totall 53,000 0 1 53,000
63015 ATTORNEY 1 2.000 1 1 2.000
0
0
63025 PUBLISHING 1 2,500 1 1 2,500
Tax Increment Reporting 1 0 1 1 0
Grand Total for all
Page 2 of 2
7
Amount Requested
Total
Priority
Object
2018 2019
2019
1 through'.5
Code Explanation l
[ Budget Adiustment
Request
1-hiah:5-low'
I I 1 01 1 01 1
63005 1PROFESSIONAL
Audit - LB
0 0
Total 5,700 100 5,800
63010 CONTRACTUAL SERVICES 1,000 1,000
Landscaping @ Andover Station - assoc membership 2,000 2,000
Maintenance -Andover Station Area 10,000 10,000
Partnership opportunities - EDA Discretionary 10,000 10,000
Community Monument Entrance Signs 130,000 30,000
Totall 53,000 0 1 53,000
63015 ATTORNEY 1 2.000 1 1 2.000
0
0
63025 PUBLISHING 1 2,500 1 1 2,500
Tax Increment Reporting 1 0 1 1 0
Grand Total for all
Page 2 of 2
7
mv--mmu-
1685
ll
CROSSTOWN BOULEVARD N.W.. ANDOVER, MINNESOTA 55304 . (763) 755-5100
FAX (763) 755-8923 • WWW.ANDOVERMN.GOV
TO:
FROM:
SUBJECT:
DATE:
President and EDA Commission Members
Jim Dickinson, Executive Director
Approve LMCIT Liability Coverage - EDA
November 20, 2018
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.
BUDGETIMPACT
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.
CONNECTING & INNOVATING
SINCE 1913
LIABILITY COVERAGE — WAIVER FORM
Members who obtain liability coverage through the League of Minnesota Cities Insurance Trust (LMCIT)
must complete and return this form to LMCIT before the member's effective date of coverage. Return
completed form to your underwriter or email to pstech(&lmc.or2.
The decision to waive or not waive the statutory tort limits must be made annually by the
member's governing body, in consultation with its attorney if necessary.
Members who 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 could recover no more than
$500,000 on any claim to which the statutory tort limits apply. The total all claimants could recover for a single
occurrence to which the statutory tort limits apply would be limited to $1,500,000. These statutory tort limits
would apply regardless of whether the member purchases the optional LMCIT excess liability coverage.
• If the member waives the statutory tort limits and does not purchase excess liability coverage, a single claimant
could recover up to $2,000,000 for a single occurrence (under the waive option, the tort cap liability limits are
only waived to the extent of the member's liability coverage limits, and the LMCIT per occurrence limit is
$2,000,000). The total all claimants could 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 could 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.
LMCIT Member Name:
Check one:
The member DOES NOT WAIVE the monetary limits on municipal tort liability established by Minn. Stat.
466.04.
The member WAIVES the monetary limits on municipal tort liability established by Minn. Stat. S 466.04, to
the extent of the limits of the liability coverage obtained from LMCIT.
Date of member's governing body meeting:
145 UNIVERSITY AVE. WEST PHONE: (651) 281-1200 FAx: (651) 281-1299
ST. PAUL, MN 55103-2044 TOLL FREE: (800) 925-1122 WEB: WWW.LMC.ORG