HomeMy WebLinkAboutEDA - August 18, 20201685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100
FAX (763) 755-8923 • WWW.AN DOVE RM N.GOV
ECONOMIC DEVELOPMENT AUTHORITY
MEETING
August 18, 2020
6:00 p.m.
Council Chambers
1. Call to Order— 6:00 p.m.
2. Approval of Minutes (July 21, 2020 Regular)
3. Update on Small Business Grant Program
4. Review Commercial Project Activity
5. Redevelopment Discussion / Property Demolitions
6. Closed Session: Property Negotiations — Bunker Lake Boulevard Redevelopment Area
7. Adjournment
Some or all members of the Andover EDA may participate in the August 18, 2020 EDA meeting by
telephone or video conference rather than by being personally present at the EDA meeting place at
the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, MN 55304. Members of the
public can physically attend, although there is very limited seating in the City Council Chambers as
appropriate social distancing will be done by the Council and visitors.
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: August 18, 2020
INTRODUCTION
The following minutes were provided by Staff reviewed by Administration and submitted
for EDA approval:
July 21, 2020 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
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ANDOVER ECONOMIC DEVELOPMENTA UTHORITYMEETING—
JULY21,2020 - MINUTES
The Meeting of the Andover Economic Development Authority was called to order by President
Julie Trude July 21, 2020, 6:00 p.m., at the Andover City Hall 1685 Crosstown Boulevard NW,
Andover, Minnesota.
Present: Commissioners Sheri Bukk la, Jamie Barthel, Valerie Holthus, Ted
Butler, Kari Kafer and Greg Mueller
Absent: None
Also present: EDA Executive Director, Jim Dickinson
Community Development Director, Joe Janish
City Attorney, Scott Baumgartner
APPROVAL OFMINUTES
June 16, 2020, Regular Meeting: Correct as amended
Commissioner Holthus stated on page 4, line 37 and 38 the sentence "The proposed developer is
working on an easement description for the property" should be removed as it is in the paragraph
twice.
Motion by Holthus, Seconded by Butler, to approve the minutes as amended. Motion carried
unanimously.
DISCUSS CARES GRANT PROGRAM
Mr. Janish stated the EDA may recall from previous meetings staff had presented a loan program
for local businesses. The Governor approved the CARES Act Funding Program, the City received
funds July 6"'. There have been some modifications to the program. The program is now a grant
program verses a loan program. As long as that business can show the financial impact was due
to COVID-19. There is an application process. Mr. Janish continued the funds are also available
for the City to recoup costs accrued due to COVID-19.
Mr Janish reviewed the program, indicating the City could be audited if falling within the criteria.
Mr. Dickinson reviewed the federal single audit process.
Mr. Janish indicated the Federal Government set the criteria of what the funds could be used for.
The applicant would need to show hardship to receive the funds.
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Andover Economic Development Authority Meeting
Minutes —July 21, 2020
Page 2
Mr. Janish reviewed the application and the reporting of what the funds were used for that would
be required by the applicant. There will be an application deadline.
Mr. Dickinson indicated the application would ask for basic business information and will be
verified. The intent of the grant program is to keep it simple and to get the funds in the hands of
the small businesses. He stated the funds that are not allocated will go back to Anoka County.
Commissioner Butler stated he felt the proof of expenses was redundant in the application. Mr.
Dickinson explained the proof of expenses is to show the business is not "stacking" grant
programs.
Commissioner Mueller asked what does the applicant get from the City. Mr. Janish answered staff
would provide the application and assist the applicant through the process. Commissioner Mueller
stated the Objectives section is well written and he suggested putting that section also on the
application.
Commissioner Barthel asked if the $10,000 cap was removed. Mr. Janish stated the cap was
removed. Mr. Dickinson indicated the EDA can set a cap. Commissioner Barthel indicated he
feels $10,000 may not be enough, which is why he wanted to see that cap removed.
Commissioner Bukkila asked if the program as two phases would non-profit businesses be eligible
to apply in Phase 2. Mr. Dickinson indicated the thought process of two phases is if there are funds
available after the first phase, phase two would be available for expenses accrued after August 1,
2020 and for those businesses who did not apply in phase one.
Commissioner Holthus asked what non -profits could apply if there is a Phase 2. Mr. Dickinson
replied they would have to be a 501 C3.
President Trude asked about small businesses not being registered being eligible to apply. Mr.
Dickinson indicated staff would need to verify they are indeed a small business and if they are
operating as a business, they will have a State ID number. Verifying the State ID number will be
the easiest way confirm they are a registered business.
President Trude stated after talking to staff she suggested the 50 FTE be lifted for Phase 2. The
goal is to distribute as much as the funds as possible to Andover businesses rather than returning
the funds to the County.
Mr. Dickinson gave an overview of the funds. The City received $2.4 million. The City has been
evaluating eligible costs that meet the criteria. At this time, the City will hold back $500,000 to
$600,000 for eligible city costs. That leaves $1.8 million for this program.
Commissioner Bukkila asked for a ballpark number of businesses in the City. Mr. Janish answered
staff figures about 107 businesses could qualify for the program. Mr. Dickinson added the business
has to be a conforming business.
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Andover Economic Development Authority Meeting
Minutes —July 21, 2020
Page 3
Commissioner Kafer asked if this program is a first come, first serve or after the deadline staff will
review all the applications. Mr. Dickinson replied all applications will be reviewed after the
deadline. Commissioner Kafer also asked what will determine if the applicant receives funds from
the program. Mr. Dickinson stated staff will put together a "review checklist'.
Mr. Dickinson explained what would qualify as a justifiable expense for a business.
The EDA discussed the number of FTE and amount to cap for the program. The consensus was
to keep the FTE at 50 and a $50,000 cap for Phase 1.
President Trude stated she would like to see in the policy a better explanation of expenditures that
qualify for the funds. She also asked about marketing the program to the businesses.
Commissioner Mueller stated on page 4, Section B Eligible Business Details, he suggests
duplicating that paragraph under Section A Eligible Expenditures. He believes it is clearer if
located in both sections.
Mr. Dickinson indicated based on the amendments requested by the EDA; staff will make the
changes to the program policy.
Motion by Barthel, Seconded by Holthus.
Commissioner Holthus withdrew her motion for further discussion on the FTE number and the
dollar amount cap for the program.
The EDA discussed the dollar amount cap.
Motion by Barthel, Seconded by Holthus approving the CARES Act Program with 50 FTE and a
$50,000 cap. Motion carried unanimously.
APPROVE ACQUISITION OF PROPERTY
Mr. Janish indicated staff will be closing on the property at 2527 Bunker Lake Boulevard on
August 3, 20202. He is looking for the EDA to consider ratification of the Purchase Agreement
and also include authorization for EDA Executive Director Mr. Dickinson to sign the Purchase
Agreement.
Motion by Bukkila, Seconded by Barthel approving the Purchase Agreement and authorizing
Executive Director Mr. Dickinson to sign the Purchase Agreement. Motion carried unanimously.
Mr. Dickinson updated the EDA on the redevelopment area. Indicating active negotiation on a
property on 138`h Avenue. Staff has been in contact with another property owner as well. Staff
will continue to monitor the area.
OTHER BUSINESS
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Andover Economic Development Authority Meeting
Minutes —July 21, 2020
Page 4
COMMERCIAL PROJECT ACTIVITY
Mr. Janish updated on the following:
Upper Midwest Athletic Construction — The applicant has made a few changes by moving the
pond further to the west. Staff is working with them again as part of the review process of the
Commercial Site Plan. Two different site plans were submitted pending the outcome of the
potential fence amendment at tonight's Council meeting.
Hearth Development, 1714 Bunker Lake Boulevard — Two tenant spaces remain to be leased.
Clocktower Commons, 15190 Bluebird Street — The final building pad location interest is
relatively low at this point.
Andover High School, 2115 Andover Boulevard — Phase 2 is underway.
Interest in Hughes Industrial Park — Interest in this area comes and goes. A 10 -acre property
east of the park has been on the market and City Council reviewed with the landowner desired
roadway connections through the parcel at a past workshop.
Andover Public Works Maintenance Building, 1900 Veterans Memorial Boulevard — Working
on punch list items and the move in process has been completed and is in full operation, fuel is
expected to be active the week of July 27, 2020. Some final grading and seeding yet to take place.
The Memorial is underway, some finishing materials will be completed by City staff, plaques are
coming in a little slower than anticipated, once several are ordered then they will be installed.
Andover Community Center, 15200 Hanson Boulevard — Interior work is occurring. Some site
work is still needed.
YMCA Expansion, 15200 Hanson Boulevard — Is under construction, which will include a new
gymnasium. Mechanical rough -in is complete, structure is in place, fireproofing is complete and
elevator shaft is in place. Working on punch is items.
Beberg Landscaping (self -storage), 13535 Grouse Street — After staff completed the commercial
site plan review, staff was contacted that the developer desires to adjust each building by six inches
which requires a resubmittal of plan sets. Developer has been attempting to record RLS and deed
transfers.
Legacy Christian Academy, 3037 Bunker Lake Boulevard — Construction is underway to build a
three-story classroom addition between the existing buildings to replace temporary classrooms.
Riverdale Church, 3210 Bunker Lake Boulevard — Continues to work on their interior remodel
which they hope will create an "open design" to provide a more modern appeal and allow for more
interaction for all ages.
Integra Dental, 13783 This Street, Suite 400 — Expansion is underway to add additional
Andover Economic Development Authority Meeting
Minutes —July 21, 2020
Page 5
1 workstations, the work is almost complete.
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3 Casey's,15246 Bluebird Street — A permit application was submitted for a full commercial kitchen
4 and interior remodeling.
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6 Restaurants/Fast Food — Currently staff is aware of companies continuing to look for land to
7 locate to in Andover.
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9 Margie's Kitchen and Cocktails, 13735 Round Lake Boulevard, Suite 105 — City Council
10 approved a CUP for an on -sale liquor license on February 18, 2020. Permit review is complete.
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12 TCF Site — TCF was approached by private parties about acquiring the lot from them. Staff has
13 heard from three parties who have made offers on the site. Two uses would be allowed according
14 to current zoning regulations. A third party contacted City staff indicating they also made an offer.
15 Staff is unsure at this time if TCF has actually sold the parcel.
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17 Train for Andover Station — Staff is attempting to follow up with a potential business on this
18 particular lot. This lot is owned by the Association.
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20 Hanson Boulevard and 1331d Avenue Monument Sign —This should be underway soon. Some
21 items have been ordered and Demars Signs has taken the lead on this project. Electrical worked
22 is expected to be run to the site.
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24 711 Avenue and Bunker Lake Boulevard — Staff continues to work with Quest Development and
25 CenterPoint Energy on acquiring a roadway easement through the CenterPoint property.
26 CenterPoint has agreed to an alignment. The proposed developer is working on an easement
27 description for the property. Surveying work for boundaries have been completed according to
28 the developer.
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30 2557 Bunker Lake Boulevard -Asbestos removal is complete. An adjacent owner has indicated
31 that their well is tied into ours at this property. This has slowed the demolition as staff is
32 investigating the well situation at this time.
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34 Holasek Property — This parcel has become relatively silent at the moment.
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36 COVID-19 — The City has set up a page with several resources for businesses and residents on the
37 City of Andover website. See also CARES Grant Program.
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39 Overall Marketing — City staff continues to work with parties interested in investing in Andover
40 and marketing all commercial sites. Staff continues to work with Anoka County Regional
41 Economic Development (ACRED) on marketing of the community and Anoka County.
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43 ADJOURNMENT
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45 Motion by Bukkila, Seconded by Barthel to adjourn. Motion carried unanimously. The meeting
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Andover Economic Development Authority Meeting
Minutes —July 21, 2020
Page 6
adjourned at 6:54 p.m.
Respectfully submitted,
Michelle Hartner, Recording Secretary
C I T YO F
NDOVE
1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100
FAX (763) 755-8923 • WWW.ANDOVERMN.GOV
TO: President and Commissior
FROM: Jim Dickinson, Executive
SUBJECT: Updates CARES Act Func
DATE: August 18, 2020
DISCUSSION
The Governor approved the distribution of funding from the Federal Coronavirus Aid, Relief, and
Economic Security (CARES) Act to cities. The order distributes money to local governments to assist
with the financial strain caused by COVID-19. The City of Andover received our allocated funds on July
6, 2020.
Federal guidance indicates that a City can have discretion to determine what the funds can be used for
based on compliance with the broad guidance provided. A program aimed at assisting small businesses
with the costs of business interruption caused by required closure was tailored by the EDA to assist those
businesses in need of such assistance. The application deadline for that program is August 17tH
The City of Andover has until November 15, 2020 to spend down the CARE funds. If unable to meet
the November 15, 2020 spenddown deadline, the funding will go to Anoka County. Anoka County has
until December 1, 2020 to spend down the funds. If unable to meet the December 1, 2020 deadline,
Anoka County will have to provide their balance of funds to the State of MN.
City Staff will update the EDA at the meeting on the progress being made on the application review
process It is anticipated that City Community Development and Finance Staff will ultimately generate
a recommendation for approval of elizible grants at Special EDA Meeting on September 1 2020
•A
W C I T Y //
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 Development Directo4
SUBJECT: Other Business - Review Commercial Project Activity
DATE: August 18, 2020
INTRODUCTION
Staff will provide a progress report on ongoing commercial project activity at the meeting.
ANDOVER COMMERCIAL PROJECTS
• Upper Midwest Athletic Construction —The applicant has made a few changes by moving the
pond further to the West. The applicant is going to have fencing with two rows of plants. The
applicant is making some adjustments to his lighting plan.
• Hearth Development, 1714 Bunker Lake Blvd. NW —Two tenant spaces remain to be leased.
• Clock Tower Commons —The final building pad location interest is relatively low at this point.
• Andover High School, 2018 Additions and Renovations —Second Phase is underway.
• Interest in Hughes Industrial Park — Interest in this area comes and goes. A 10 acre property
east of the park has been on the market and City Council reviewed with the landowner desired
roadway connections through the parcel at a past work session.
• Andover PW Maintenance Building, 1900 Veterans Memorial Blvd. — Working on punch list
items and the move in process has been completed and in full operation, fuel is active. The
Memorial is underway, some finishing materials will be completed by city staff, plaques are
coming in a little slower than anticipated once several are ordered then they will be installed.
• Andover Community Center, 15200 Hanson Blvd. NW — Interior work is occurring. Some site
work is still needed.
• YMCA Expansion — Is nearing completion.
• Beberg Landscaping (self -storage) — City Council approved a CUP for additional Mini -storage
on a portion of this location on February 5`h. The buyers of the property had intended to expand
the mini -storage. After staff completed the CSP we were contacted that the developer desires to
adjust each building by 6 inches which requires a resubmittal of plan sets. Developer has recorded
the RLS and transfer of property.
• Legacy Christian Academy, Additions & Remodeling, 3037 Bunker Lake Blvd NW —
Kinghorn Construction is underway to build a three-story classroom addition between the
existing buildings to replace temporary classrooms.
• Riverdale Church, 3210 Bunker Lake Blvd NW — Continues to work on their interior
remodel which they hope will create an "open design" to provide a more modern appeal and
allow for more interaction for all ages.
• Integra Dental, 13783 Ibis St NW Suite 400 — Expansion is underway to add additional work
stations, the work is almost complete.
• Casey's, 15246 Bluebird St. NW — A permit was submitted for a full commercial kitchen and
interior remodeling.
• Restaurants/Fast Food — Currently staff is aware of companies continuing to look for land to
locate in Andover.
• Margie's Kitchen and Cocktails, 13735 Round Lake Blvd NW Suite 105 — City Council
approved a CUP for ON Sale Liquor License on February 18, 2020. Permit review is complete,
construction is underway.
• TCF Site — Apparently TCF approached private parties about acquiring the lot from them. Staff
has heard from three parties who have made offers on the site. Two uses would be allowed
according to current zoning regulations. A third party contacted city staff indicating they also
made an offer. Staff is unsure at this time if TCF has actually sold the parcel.
• Train for Andover Station — A few EDA Members had spoke with the St. Cloud Area Rail
Legacy Museum, additional research will continue to be conducted. City staff is attempting to
follow up with a potential business on this particular lot as well. This lot is owned by the
association.
• Hanson and 133`d Ave Monument Sign — This is nearing completion with the final connection
to electrical for lighting of the sign.
• 7`h Avenue and Bunker — Staff continues to work with Quest Development and CenterPoint
Energy on acquiring an easement through the CenterPoint Property. CenterPoint has agreed to an
alignment. The proposed developer is working on an easement description for the property.
Surveying work for boundaries have been completed according to the developer.
• 2557 Bunker Lake Blvd. — Asbestos removal is complete. An adjacent owner has indicated that
their well is tied into ours at this property. This has slowed the demolition as we are investigating
the well situation at this time. This items is part of the agenda.
• Holasek Property (near City Hall) — This parcel has become relatively silent at the moment.
• COVID-19 — The city has set up a page with several resources for businesses and residents. City
of Andover Website. The City of Andover also created the COVID-19 GRANT program and an
updated will be provided at this meeting.
• Overall marketing - City Staff continue to work with parties interested in investing in Andover
and marketing all commercial sites. Staff continues to work with the Anoka County Regional
Economic Development (ACRED) on marketing of the community and Anoka County.
(ANDOVFI^
A W7
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 Development Director
SUBJECT: Redevelopment Discussion / Property Demolitions
DATE: August 18, 2020
INTRODUCTION
Currently the City of Andover has two vacant buildings in the redevelopment area: 2526 138' Ave NW
and 2557 Bunker Lake Blvd NW. At this time the City of Andover has conducted an asbestos inspection
and abated the concern at 2557 Bunker Lake Blvd NW.
Originally 2526 138`x' Ave NW has remained in order to allow for the flexibility of potentially moving
tenants to if needed. However, it has been discovered that the property continues to develop issues and
has become difficult to maintain in its current condition. City Council received complaints on the
property at their August 4, 2020 regular City Council Meeting by a nearby neighbor. Staff is proposing
that the Andover EDA authorize staff to conduct an environmental review, address any concerns such as
asbestos by utilizing the same contractor who identified the potential hazard and utilize the same
contractor who removed the material from 2557 Bunker Lake Blvd NW.
The Andover Fire Department intends to utilize the buildings for training. This training will be for spot
fires and not engulf the entire property in flames.
Once the Andover Fire Department is complete with their training city staff will seek out quotes/bids to
demolish the buildings and award the contract to the lowest responsible bidder. As part of the demolition
quote staff will include the two sheds at 2543 Bunker Lake Blvd NW, the four-plex at 2557 Bunker Lake
Blvd NW, the shed at 2527 Bunker Lake Blvd NW, and the four-plex and detached garage at 2526 138`h
Ave NW.
The costs associated with the environmental reviews, removal and demolition would be paid for with the
historic rents received.
In summary staff is seeking approval of the following:
• Environmental review of 2526 138`x' Ave NW.
• Appropriate removal and disposal of any items the environmental review notes.
• Allow Andover Fire to train within the structures.
• Demolition and removal of 2 sheds at 2543 Bunker Lake Blvd. NW.
• Demolition and removal of 1 shed at 2527 Bunker Lake Blvd. NW.
• Demolition and removal of the four-plex at 2557 Bunker Lake Blvd NW.
• Demolition and removal of the four-plex and detached garage at 2526 Bunker Lake Blvd. NW
• Utilizing the past contractors for environmental review and removal if necessary.
• Awarding the demolition and removal contract to the lowest responsible bidder.
All
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