HomeMy WebLinkAboutEDA - April 16, 2019C I T Y O F
NDOVE
1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100
FAX (763) 755-8923 • WWW.ANDOVERMN.GOV
ECONOMIC DEVELOPMENT AUTHORITY
MEETING
April 16, 2019
6:00 p.m.
Conference Rooms A & B
1. Call to Order— 6:00 p.m.
2. Approval of Minutes (March 19, 2019 Regular)
3. Potential Developer Discussion
4. Entrance Monument Discussion Updates (Verbal)
5. Commercial Updates
6. Redevelopment Updates (Verbal)
7. Bunker Lake Boulevard/138' Ave —City Owned Rental Units
8. Other Business
9. Adjournment
1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100
FAX (763) 755-8923 . WWW.ANDOVERMN.GOV
TO: Economic Development Author'
CC: Jim Dickinson, City Administrato
FROM: Michelle Harmer, Deputy City Clerk
SUBJECT: Approval of Minutes
DATE: April 16, 2019
INTRODUCTION
6
The following minutes were provided by Staff reviewed by Administration and submitted
for EDA approval:
March 19, 2019 Regular
DISCUSSION
The minutes are attached for your review.
ACTION REQUIRED
The EDA is requested to approve the above minutes.
Respectfully submitted,
4
Michelle Harmer
Deputy City Clerk
Attach: Minutes
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6 ANDOVER ECONOMIC DEVELOPMENTA UTHORITYMEETING-
7 MARCH 19, 2019 - MINUTES
8
9
10 The Meeting of the Andover Economic Development Authority was called to order by President
11 Julie Trude, March 19, 2019, 6:00 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW,
12 Andover, Minnesota.
13
14 Present: Commissioners Jamie Barthel, Sheri Bukkila, Valerie Holthus,
15 Mike Knight and Joyce Twistol
16
17 Absent: Commissioner Kari Kafer
18
19 Also present: EDA Executive Director, Jim Dickinson
20 Community Development Director, Joe Janish
21 Public Works Director/City Engineer, Dave Berkowitz
22
23
24 APPROVAL OFMINUTES
25
26 February 5, 2019, Regular Meeting: Correct as written.
27
28 Motion by Knight, Seconded by Bukkila, to approve the above minutes as written. Motion carried
29 5 ayes, 1 present (Twistol) and 1 absent (Kafer).
30
31 ENTRANCE MONUMENT DISCUSSION UPDATES
32
33 Mr. Janish indicated at a previous EDA meeting direction to staff was to pursue an electronic
34 message board location at 133`d Avenue and Hanson Boulevard.
35
36 Mr. Janish contacted Scott Maciej with DeMars Signs. Mr. Maciej recommended not to move
37 the "Andover" portion to the bottom of the sign, keep consistency with the other electronic
38 message boards. He suggested once the snow is gone to go out to the 133rd Avenue site and take
39 measurements to determine the best height for the sign. Mr. Maciej felt the current size sign at
40 the other locations is appropriate for the speed of Hanson Boulevard. All of that will be
41 evaluated when at the site.
42
43 President Trude asked about doing a double -sided sign. She thinks it could add approximately
44 $10,000 to the cost.
45
46 Commissioner Bukkila stated she feels it should be determined if there is a clear view to both
47 sides.
48
Andover Economic Development Authority Meeting
Minutes —March 19, 2019
Page 2
Mr. Janish indicated he can sketch up a couple options with the estimated cost and bring them
back to a future EDA meeting.
4 President Trude suggested an entrance sign, like the one on Round Lake Boulevard at 133`d
5 Avenue and Crosstown Boulevard.
The area was discussed.
9 Mr. Berkowitz stated there is a small parcel there to work with. Staff can meet with the Anoka
10 County Highway Department and bring the information to a future EDA meeting.
11
12 President Trude mentioned an entrance sign placed on Crosstown Boulevard on the border of
13 Ham Lake. She believed the EDA's goal was to place several of the entrance signs on the
14 Andover border over several years.
15
16 ESTATES AT ARBOR OAKS TOUR DISCUSSION
17
18 Mr. Janish indicated he has been communicating with the Director of Housing at Arbor Oaks,
19 who has offered a tour of the Estates at Arbor Oaks facility. Staff has two dates for the EDA to
20 consider, April 2"a or April 16th from 6:00 p.m. to 6:45 p.m.
21
22 President Trude feels redevelopment is a higher priority than a tour and would like to schedule
23 Norhart, a potential developer for a presentation in April.
24
25 Mr. Janish reviewed direction to staff, to contact Norhart and other potential developers to
26 schedule presentations for April.
27
28 President Trude suggested the Arbor Oaks tour be scheduled for May.
29
30 COMMERCIAL UPDATES
31
32 The Shops @ Andover, 13650 Hanson Boulevard— 1 tenant space remains.
33
34 Walmart (front end pickup remodel), 1851 Bunker Lake Boulevard — The next phase of
35 development to support online ordering and pickup is the proposed construction of a customer
36 vehicle canopy that may be located in the parking lot near the southeast corner of the store. A
37 tensile fabric structure has been typical at other Walmart stores.
38
39 McDonalds,15232 Bluebird Street— This project has been pushed back until Fall 2019.
40
41 Domino's Pizza, 2256 Bunker Lake Boulevard — This project is complete and open.
42
43 Anoka Parks, Activity Center Greenhouse Demolition and Renovation, 550 Bunker Lake
44 Boulevard — Demolition of the existing greenhouse area will give way to an outdoor patio area.
45 Footings are in. Other improvements are to renovate the site approach and provide for better
Andover Economic Development Authority Meeting
Minutes —March 19, 2019
Page 3
1 accessibility and general renovation. This is complete with a few small items remaining to be
2 completed.
3
4 Jon Smith Subs, 15190 Bluebird Street, Suite 107— This project is complete and open.
5
6 Upper Midwest Athletic Construction — A CUP was granted for outside storage. The owner
7 provided a commercial site plan that has been reviewed. The owner is currently working with his
8 Engineer on the 3`d set of comments.
9
10 Hearth Development, 1714 Bunker Lake Boulevard — Fitaholic is open and two tenant spaces
11 remain to be leased.
12
13 Clocktower Commons, 15190 Bluebird Street — Owner Tom Roberts has indicated he has some
14 interest in lot 4 but nothing is concrete at this time. Mr. Roberts is looking at some adjustments to
15 lot 4. The adjustments have caused for storm water requirements to be met at this time.
16
17 Andover High School, 2018 Additions and Renovations, 2115 Andover Boulevard —
18 Construction is in process. The project has a value expected around $11.9 million dollars. The
19 second floor is installed, and interior walls are being erected in the classroom addition. The theater
20 balcony structure and associated second floor egress are framed. Cafeteria framing is started with
21 structural steel, then CMU walls, then steel will resume followed by roofing. Plumbing and
22 mechanical inspections are ongoing.
23
24 Estates at Arbor Oaks/Trident Development, 1753 156" Lane — In the process of renting out
25 units. They currently are 75% MI. Three additional move -ins are expected by March 1" putting
26 them at 80% occupied. The apartments rent for $1,600 to $2,859 per month.
27
28 Crosstown Square, 13632 Crosstown Boulevard — Staff was contacted by the property owner and
29 informed that one of the spaces will be available at the beginning of 2019.
30
31 Interest in Hughes Industrial Park — Interest in the area has quieted down. A few properties are
32 being marketed in the area.
33
34 Legacy Christian Academy, 3037Bunker Lake Boulevard — Kinghorn Construction has provided
35 a building permit application and plans to build a three-story classroom addition between the
36 existing buildings to replace temporary classrooms. A commercial plan review will be necessary
37 prior to permitting, plans are distributed to all departments.
38
39 Milk Moms, 13783 This Street, Suite 200 — This project is complete and open.
40
41 Andover Public Works Maintenance Building, 1900 Veterans Memorial Boulevard — Clearing
42 of trees will begin next week.
43
44 Andover Community Center, 15200 Hanson Boulevard — Staff has been directed to work on bid
45 packages with alternates.
V=
Andover Economic Development Authority Meeting
Minutes —March 19, 2019
Page 4
1 Beberg Landscaping, 13535 Grouse Street — The lot was sold to ABC Mini Storage. The owner
2 is working with staff on fire suppression requirements.
3
4 Overall Marketing — City staff continues to work with parties interested in investing in Andover
5 and marketing all commercial sites.
6
7 Restaurants/Fast Food — Currently staff is aware of two companies continuing to look for land to
8 locate to in Andover.
9
10 Hanson Commons — Under new ownership, a company out of Texas. There is over 9,000 square
11 feet available for lease. They are actively marketing the available space.
12
13 REDEVELOPMENT UPDATES
14
15 Mr. Janish updated the EDA on the City owned rental units.
16
17 Commissioner Barthel asked what will happen to the rental buildings once they are vacated. Mr.
18 Dickinson replied they will be demoed.
19
20 The area was discussed.
21
22 Staff continues to monitor the area.
23
24 OTHER BUSINESS
25
26 President Trude indicated she was contacted by Urban Land Institute (ULI). ULI works with U of
27 M students, who contact cities and provide workshops for EDA, Council and Planning and Zoning
28 Commission members regarding problem solving and strategizing for cities. The City members
29 would pick a topic and ULI would come in for a two-hour workshop with suggestions on solving
30 the issue. They have openings available in May.
31
32 Mr. Dickinson suggested the focus be on multi -family housing.
33
34 President Trude suggested Mr. Dickinson, Mr. Janish and herself meet with ULI first to see if this
35 would be of interest to the City.
36
37 ADJOURNMENT
38
39 Motion by Barthel, Seconded by Bukkila to adjourn. Motion carried unanimously. The meeting
40 adjourned at 6:55 p.m.
41
42 Respectfully submitted,
43
44 Michelle Harmer, Recording Secretary
45
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N6D?OVE
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 Direct 0
FROM:
Joe Janish, Community Development ctor
SUBJECT:
Potential Developer Discussion
DATE: April 16, 2019
INTRODUCTION
As requested by the EDA staff has invited Mike Kaeding, President of Norhart, to attend our meeting.
Norhart has recently constructed apartments in Forest Lake and Blaine.
City staff has asked Mr. Kaeding to provide a brief overview of his company, and to share his perspective
on the Bunker Lake Blvd redevelopment area. Mr. Kaeding is expected to address what he believes a
private developer may be able to develop in this particular area. The discussion may include items such
as costs, density, architectural character, etc.
Currently the City of Andover EDA owns four 4-plexes in the area and a vacant lot (highlighted in
yellow). The City has approached several of the property owners in the area and attempts to maintain
open communication with those property owners.
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City staff is asking the EDA to take the opportunity to ask questions of Mr. Kaeding as it relates to the
redevelopment area and multi -family development.
I
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 Direct
FROM: Joe Janish, Community Development 're for
SUBJECT: Review Commercial Project Activity
DATE: April 16, 2019
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 -1 tenant space remains
• Walmart Front End Pickup Remodel, 1851 Bunker Lake Blvd NW - The next phase of
development to support online ordering and pickup is the proposed construction of a customer
vehicle canopy that may be located in the parking lot near the southeast corner of the store. A
tensile fabric structure has been typical at other Walmart stores.
• McDonalds Interior Remodeling/Renovation, 15232 Bluebird Street NW — This
project has been pushed back until Fall 2019.
• 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. This is complete with a few small items remaining to be
completed.
• 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 the 3`d set of comments. A fence permit has been submitted for review along the east
side of the property.
• Hearth Development, 1714 Bunker Lake Blvd. NW — Fitaholic is open and two tenant spaces
remain to be leased.
• 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. The second floor is installed,
and interior walls are being erected in the classroom addition. The Theater balcony structure
and associated second floor egress are framed. Cafeteria framing is started with structural
steel, then CMU walls, then steel will resume followed by roofing. Plumbing and mechanical
inspections are ongoing. The School is looking at starting Phase 2 this fall possibly
• Estates at Arbor Oaks / Trident Development, 1753 156`h Lane NW — In process of renting
out units. They currently are 75% full. Three additional move -ins are expected by March 1s`
putting them at 80% occupied. The apartments rent for $1,600 to $2,859 per month. The
manager of the property has indicated they can provide a tour of the facility when the EDA is
available.
• Crosstown Square, 13632 Crosstown Blvd. NW — Staff was contacted by the property owner
and informed that space is available at this time.
• Interest in Hughes Industrial Park — Interest in the area has quieted down. A few properties are
being marketed in the area.
• MilkMoms 13783 Ibis Street NW, Suite 200 — This project is complete.
• Andover PW Maintenance Building, 1900 Veterans Memorial Blvd. — Staff will bring
forward a recommended bid package to City Council on February 5`h
• Andover Community Center, 15200 Hanson Blvd. NW — Staff has been directed to work on
bid packages with alternates.
• Beberg Landscaping (self -storage) — City Council approved a CUP for additional Mini -storage
on a portion of this location on February 5'. The buyers of the property had intended to expand
the mini -storage.
• Legacy Christian Academy, Additions & Remodeling, 3037 Bunker Lake Blvd NW —
Kinghorn Construction has provided a building permit application and plans to build a three-
story classroom addition between the existing buildings to replace temporary classrooms. The
plans are in review and Building staff is in close contact with the Architect at this time.
• Overall marketing - City Staff continue to work with parties interested in investing in Andover
and marketing all commercial sites.
• Restaurants/Fast Food — Currently staff is aware of companies continuing to look for land to
locate in Andover.
e pe Ily submitted,
Joe Jamsh
9 C I T Y O F
NDOVE (:i)-
1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100
FAX (763) 755-8923 • WWW.ANDOVERMN.GOV
TO: President and Commissi
CC: Jim Dickinson, Executi)
FROM: Joe Janish, Community
SUBJECT: Bunker Lake Boulevard/ 138h Ave - City Owned Rental Units
DATE: April 16, 2019
INTRODUCTION
The City of Andover EDA purchased three four plexes (2557 and 2543 Bunker Lake Blvd. NW along
with 2526 138' Ave NW) at the end of 2017. The City of Andover EDA acquired 2542 138t° Avenue in
2018.. Renters occupy three buildings. The fourth has been secured and is not intended to be rented at
this time.
When the two properties along Bunker Lake Blvd were purchased, the listings indicated rent could be
increased to be closer to market rate. Staff contacted Cedar Management, Inc. who is managing the
properties for the City of Andover to have a rent analysis conducted. Attached you will find the
information provided by the management company.
After review of the rental analysis staff is proposing an increase in rent to bring the properties into a
consistent rental rate for September 1, 2019. The management company would provide notice to the
renters after and if the EDA approves the increase.
Description - Location
Original Rent
Current Rent
Proposed Rent
2543 Bunker Lk Blvd #1
695
795.00
865.00
2543 Bunker Lk Blvd #2
765
865.00
865.00
2543 Bunker Lk Blvd #3
725
825.00
865.00
2543 Bunker Lk Blvd #4
695
795.00
865.00
2557 Bunker Lk Blvd #1
750
Vacant
Vacant
2557 Bunker Lk Blvd #2
725
Vacant
Vacant
2557 Bunker Lk Blvd #2
725
825.00
865.00
2557 Bunker Lk Blvd #4
725
825.00
865.00
2542 - 138th Ave #1
800
800.00
865.00
2542 - 138th Ave #2
800
800.00
865.00
2542 - 138th Ave #3
800
800.00
865.00
2542 - 138th Ave #4
785
785.00
865.00
Is ct sub fitted,
Joe Janish
Joe Janish
From: Kim Nelson <KNelson@cedarmanagement.com>
Sent: Tuesday, April 2, 2019 3:00 PM
To: Joe Janish
Subject: RE: Rent Comparison
Joe,
Okay, here is what I know and what I'm finding.
I manage a 8 plex in Fridley and the rent is $900 there and I manage a 4 plex in Crystal and the rent is also $900.
What I could find online on Craigslist similar to the Andover site is one in SLP that is going for $1195, which I think is a bit
high.
The one on Rent.com etc. that are similar to your don't have vacancy and there is no numbers to call.
Typically the rent increase each year on a unit without improvements being made is 3.5%.
Mounds View units managed by Cedar are going anywhere from $880 - $1,000 for a 2 bedroom.
Let me know your thoughts.
Kim
From: Joe Janish <j.janish@andovermn.gov>
Sent: Tuesday, April 2, 2019 1:22 PM
To: Kim Nelson <KNelson@cedarmanagement.com>
Subject: Rent Comparison
Kim,
I failed to mention during our phone conversation if you could check into the current rents for similar type properties
and if we should consider increasing rent. The thought would be to take the information to our EDA (owners) and
discuss if rent should be increased or not. Chances are if they increase rent it would be in September.
Thanks for any information you might be able to generate.
Joe Janish
Community Development Director
City of Andover
1685 Crosstown Blvd. N.W.
Andover, MN 55304
Direct: (763) 767-5140
Main: (763) 755-5100
Fax: (763) 755-8923