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HomeMy WebLinkAboutEDA - September 1, 20201685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100 FAX (763) 755-8923 • WWW.ANDOVERMN.GOV ECONOMIC DEVELOPMENT AUTHORITY MEETING September 1, 2020 6:00 p.m. Council Chambers 1. Call to Order— 6:00 p.m. 2. Approval of Minutes (August 18, 2020 Regular; August 18, 2020 Closed) 3. Discuss/Consider Approval Round 1 -Small Business Grant Program —Administration 4. Discuss/Consider Acquisition of Property -Administration 5. Adjournment Some or all members of the Andover EDA may participate in the September 1, 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: September 1, 2020 INTRODUCTION The following minutes were provided by Staff reviewed by Administration and submitted for EDA approval: August 18, 2020 Regular August 18, 2020 Closed DISCUSSION The minutes are attached for your review. ACTION REQUIRED The EDA is requested to approve the above minutes. Respectfully submitted, G/1a� Michelle Harmer Deputy City Clerk Attach: Minutes 2 rd 6 ANDOVER ECONOMIC DEVELOPMENTAUTHORITYMEETING- 7 AUGUST 18, 2020 - MINUTES 8 9 10 The Meeting of the Andover Economic Development Authority was called to order by President 11 Julie Trude August 18, 2020, 6:00 p.m., at the Andover City Hall,; 1685 Crosstown Boulevard NW, 12 Andover, Minnesota. 13 14 Present: Commissioners Jamie Barthel, Valerie Holthus, Ted Butler, Kari 15 Kafer and Greg Mueller 16 17 Absent: Sheri Bukkila - 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 OF MINUTES 25 26 July 21, 2020, Regular Meeting: Correct as written. 27 28 Motion by Holthus, Seconded by Butler, to approve the minutes as written. Motion carried 29 unanimously. 30 31 UPDATE ON SMALL BUSINESS GRANT PROGRAM 32 33 Mr. Dickinson reviewed that back in July, the EDA approved the CARES Act Funding for small 34 businesses. The grant is for businesses based on qualifying expenses; the business will need to 35 produce proof of expense. The guidelines were 50 FTE or less and a grant max of $50,000. He 36 stated there would be $1.8 million for the program and anticipated two rounds of applicants. 37 Round one the City received 29 applications totaling approximately $1 million. 38 39 Mr. Dickinson indicated staff is now reviewing all the applications and verifying they are a 40 registered business in the state. He stated the top items the businesses are looking for 41 reimbursement for is rent, utilities and payroll costs. Mr. Dickinson stated they are 50-60% 42 through the applications validating data. He stated all reviews will be complete soon and will be 43 brought to the EDA for recommendations at the September 151 meeting. 44 45 Mr. Dickinson asked the EDA with the remaining funds would they like a Round 2. The EDA 46 agreed to a Round 2. Mr. Dickinson asked what restrictions they would like to change, if any. 47 48 Commissioner Butler suggested removing the non-profit restriction. Andover Economic Development Authority Meeting Minutes —August 18, 2020 Page 2 1 The EDA discussed the FTE number and max funds amount. 2 3 Mr. Dickinson explained in Round 2 they would prioritize for businesses that did not apply and 4 receive funds in Round 1 verses those that did. 5 6 Mr. Dickinson reviewed the EDA's request to remove the FTE restrictions, offer the program to 7 non -profits and larger businesses and the $50,000 cap remains. Staff will target a September I" 8 kick-off date and will accept applications for two weeks. November 15, 2020 is the deadline to 9 distribute all CARES funds, the remaining funds would need to be returned to Anoka County. 10 11 COMMERCIAL PROJECTACTIVITY 12 13 Mr. Janish updated on the following: 14 15 Upper Midwest Athletic Construction — The applicant has made a few changes by moving the 16 pond further to the west. The applicant is going to have fencing with two rows of plants. The 17 applicant is making some adjustments to his lighting plan. 18 19 Hearth Development, 1714 Bunker Lake Boulevard — Two tenant spaces remain to be leased. 20 21 Clocktower Commons, 15190 Bluebird Street — The final building pad location interest is 22 relatively low at this point. 23 24 Andover High School, 2115 Andover Boulevard — Phase 2 is underway. 25 26 Interest in Hughes Industrial Park — Interest in this area comes and goes. A 10 -acre property 27 east of the park has been on the market and City Council reviewed with the landowner desired 28 roadway connections through the parcel at a past workshop. 29 30 Andover Public Works Maintenance Building, 1900 Veterans Memorial Boulevard — Working 31 on punch list items and the move in process has been completed and is in full operation, fuel is 32 active. The Memorial is underway, some finishing materials will be completed by City staff, 33 plaques are coming in a little slower than anticipated, once several are ordered then they will be 34 installed. 35 36 Andover Community Center, 15200 Hanson Boulevard — Interior work is occurring. Some site 37 work is still needed. 38 39 YMCA Expansion, 15200 Hanson Boulevard — Is nearing completion. 40 41 Beberg Landscaping (self -storage), 13535 Grouse Street — City Council approved a CUP for 42 additional mini -storage on a portion of this location on February 5, 2020. The buyers of the 43 property had intended to expand the mini -storage. After staff completed the CSP we were 44 contacted that the developer desires to adjust each building by 6 inches, which requires a 45 resubmittal of plan sets. The developer has recorded the RLS and transfer of property. Andover Economic Development Authority Meeting Minutes—August 18, 2020 Page 3 1 Legacy Christian Academy, 3037 Bunker Lake Boulevard— Construction is underway to build a 2 three-story classroom addition between the existing buildings to replace temporary classrooms. 3 4 Riverdale Church, 3210 Bunker Lake Boulevard— Continues to work on their interior remodel 5 which they hope will create an "open design" to provide a more modern appeal and allow for more 6 interaction for all ages. 7 8 Integra Dental, 13783 This Street, Suite 400 — Expansion is underway to add additional 9 workstations, the work is almost complete. 10 11 Casey's, 15246 Bluebird Street —A permit application was submitted fora full commercial kitchen 12 and interior remodeling. 13 14 Restaurants/Fast Food — Currently staff is aware of companies continuing to look for land to 15 locate to in Andover. 16 17 Margie's Kitchen and Cocktails, 13735 Round Lake Boulevard, Suite 105 — City Council 18 approved a CUP for an on -sale liquor license on February 18, 2020. Permit review is complete 19 and construction is underway. 20 21 TCF Site — TCF was approached by private parties about acquiring the lot from them. Staff has 22 heard from three parties who have made offers on the site. Two uses would be allowed according 23 to current zoning regulations. A third party contacted City staff indicating they also made an offer. 24 Staff is unsure at this time if TCF has actually sold the parcel. 25 Train for Andover Station — Staff is attempting to follow up with a potential business on this 26 particular lot. This lot is owned by the Association. 27 28 Hanson Boulevard and 1331 Avenue Monument Sign — This is nearing completion with the final 29 connection to electrical for lighting of the sign. 30 31 71" Avenue and Bunker Lake Boulevard — Staff continues to work with Quest Development and 32 CenterPoint Energy on acquiring a roadway easement through the CenterPoint property. 33 CenterPoint has agreed to an alignment. The proposed developer is working on an easement 34 description for the property. Surveying work for boundaries have been completed according to 35 the developer. 36 37 2557 Bunker Lake Boulevard -Asbestos removal is complete. An adjacent owner has indicated 38 that their well is tied into ours at this property. This has slowed the demolition as staff is 39 investigating the well situation at this time. 40 41 Holasek Property — This parcel has become relatively silent at the moment. 42 43 COVID-19 — The City has set up a page with several resources for businesses and residents on the 44 City of Andover website. See also CARES Grant Program. 45 Andover Economic Development Authority Meeting Minutes —August 18, 2020 Page 4 1 Overall Marketing — City staff continues to work with parties interested in investing in Andover 2 and marketing all commercial sites. Staff continues to work with Anoka County Regional 3 Economic Development (ACRED) on marketing of the community and Anoka County. 4 5 REDEVELOPMENTDISCUSSIONIPROPERTYDEMOLITIONS 7 Mr. Janish indicated the EDA is requested to approve the demolition of 2557 Bunker Lake 8 Boulevard. He explained the Fire Department will use the building for spot fire training. When 9 the fire training is complete staff will seek out quotes to demo the building. 10 11 Mr. Janish stated staff is proposing the EDA authorize staff to conduct an environmental review 12 on 2526 138`' Avenue to ultimately demo the 4-plex and the detached garage on the property. 13 14 Mr. Dickinson indicated since these are considered rental property, as long as the buildings are 15 up the City is paying taxes and insurance on these vacant buildings, so it makes sense to remove 16 them. 17 18 Commissioner Kafer asked how much this demolition project will potentially cost. Mr. 19 Dickinson answered for everything approximately $50,000. Mr. Dickinson added the lease 20 revenue generated from the area will cover the cost. 21 22 Motion by Kafer, Seconded by Mueller approving the following: 23 • Environmental review of 2526 13 8h Avenue NW. 24 • Appropriate removal and disposal of any items the environmental review notes. 25 • Allow Andover Fire Department to train within the structures. 26 • Demolition and removal of 2 sheds at 2543 Bunker Lake Boulevard NW. 27 • Demolition and removal of 1 shed at 2527 Bunker Lake Boulevard NW. 28 • Demolition and removal of the 4-plex at 2557 Bunker Lake Boulevard NW. 29 • Demolition and removal of the 4-plex and detached garage at 2526 Bunker Lake 30 Boulevard NW. 31 • Utilizing the past contractors for environmental review and removal if necessary. 32 • Awarding the demolition and removal contract to the lowest responsible bidder. 33 Motion carried unanimously. 34 35 RECESS 36 37 President Trude recessed the regular EDA meeting at 6:30 p.m. to a closed session of the EDA to 38 discuss property negotiations in the Bunker Lake Boulevard Redevelopment Area. 39 40 RECONVENE 41 42 The EDA reconvened at 6:50 p.m. 43 44 OTHER BUSINESS 45 Andover Economic Development Authority Meeting Minutes —August 18, 2020 Page 5 1 President Trude asked if the plantings were completed in the Bunker Lake Boulevard medians. 2 Mr. Janish replied staff will check and the EDA will get an update at a fixture meeting. 4 ADJOURNMENT 6 Motion by Holthus, Seconded by Barthel to adjourn. Motion carried unanimously. The meeting 7 adjourned at 6:52 p.m. 9 Respectfully submitted, 10 11 Michelle Hartner, Recording Secretary 12 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 SUBJECT: Discuss/Consider Approval Round 1 �1nVover Small Business Grant Program DATE: September 1, 2020 REQUESTED ACTION The EDA is requested to receive a presentation and consider approval of the Andover Small Business Grants to local businesses. 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. 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. 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 program funding target is $1.8 million. The application deadline for Round 1 funding for that program was August 171h. City Staff have reviewed the small business grant applications to determine if the business has qualifying expense, validating the data submitted to determine if the business meets the guidelines of the program. For Round 1 the EDA received 29 applications with requests totaling $1,088,834. Staff will review the attached summary with the EDA recommending grants to the businesses totaling $972,834. Round 2 for this program was kicked off on September 151, again with an aggressive application deadline on September 151h. As soon as possible after the deadline, Staff will confer with Anoka County (or their 3rd party administrator) to align efforts and discuss applications within the City of Andover. City Community Development and Finance Staff will also meet to generate a recommendation for approval of eligible grants at a Special EDA Meeting on October 6`h. This timeline will allow the City of Andover the opportunity to possibly conduct a Round 3 of accepting applications and awarding grants in the event the funding is not spend down in Round 2. Attachment: Small Business Emergency Grant Applications Summary CI7YOFANDOVER Small Business Emergency Grant Application Business Own / Lease Year Started Justification Requested Capped Documentation Included DBA Snap Fitness Lease 2016 $ 20,000 $ 20,000 $16,000- rent (2 mths) -lease agreement $4,000 - payroll -payroll ledgers -lease invoice $161k due -W-9 Custom Smiles Dentistry Lease 2020 $ 20,000 $ 20,000 $13,669 - rent (3 mths) -lease agreement $6,600- payroll (3 mths) -payroll ledgers -lease invoice $4,556 due -W-9 Anytime Fitness Lease 2012 $ 32,691 $ 32,691 $26,250 - rent (3 mths) -lease agreement $4,500- payroll (1 mth) -payroll ledgers/detail $1,941- utilities (3 mths) -comcast bill -W-9 For Kids Only Inc. Own 1990 $ 45,000 $ 45,000 $40,000 - payroll (I mth) -property tax statement $2,630- utilities (I mth) -P/L $1,650- cleaning supplies -utility bills -payroll ledgers -W-9 Pizza Ranch Lease 2013 $ 100,000 $ 50,000 $88,000 -payroll (2 mths) -payroll ledgers $11,000 -utilities (2 mths) -utility bills $10,650-h1th incur (2 mths) -hlth insurance invoice -W-9 Dancin'Feet Own 2006 $ 50,000 $ 50,000 $18,000 - mortgage (Mar -Aug) -property tax statement $6,162- association dues (Mar -Aug) -Bus truck lease summary $8,571- utilities / insurance (Mar -Aug) -Comm Loan summary $3,600- bus vehicle lease (Mar -Aug) -West Bend statement $3,038-h1th insurance -Building Assoc Fees invoice $9,088 - Bus Exp (Mar -Aug) -Hlth/Dental invoices $2,843 - costumes (Mar -Aug) -bank accL summary of transactions $1,686 -Bank Fees (Mar -Aug) -W-9 Jon Smith Subs Lease 2019 $ 25,000 $ 25,000 $3,000 - utilities (past due & current) -rent invoice $2,503 due $3,000 -Sysco -payroll ledgers $13,767 - rent (5.5 mths) -Sysco invoice $3,982 due $4,800 - payroll (2 wks) -utility bills $1,000- increase wages to compete -W-9 Gotcha Covered Own -Home 2019 $ 26,280 $ 26,280 $19,500 - payroll (3 mths) -property tax statement $3,750-royalty/franchice fee (3 mths) -P/L $1,350- franchise fee (3 mths) -payroll detail $480- phone (3 mths) -expenditure details $1,200- advertising (3 mths) -W-9 15 16 17 CITY OF ANDOVER Small Business Emergency Grant Application Business 13 14 Own/Lease Year Started Requested Capped Justification Documentation Included DBA Andover Auto Care Inc Own 1997 $ 50,000 $ 50,000 $1,970- payroll (per week) -mortgage pymt $1,000-insurance(mth) -insurance invoice $2,133 -mortgage pymt -monthly charges & bills -accounting services charge $600 4-5 months -W-9 (unsigned) Beef '0' Brady's Lease 2008 $ 30,000 $ 30,000 $30,000 - rent (3 mths) - rent invoice $10,000 due -lease agreement -W-9 Complete Auto Services Inc. Lease 2016 $ 25,500 $ 25,500 $25,500 - rent (3 mths) -lease(partial) -rent invoices -W-9 Ferrell's Extreme Bodyshaping Lease 2012 $ 10,000 $ 10,000 -lease pymts ($8,799 per month) - P / L (2019) -utilities -HJ Dev A/R -wages ($9,111 per month) -comcast bill -payroll detail -lease agreement -W-9 Inspire Academy of Music Lease 2017 $ 28,560 $ 28,560 $28,560- rent (6 mths) -lease agreement $4,103- monthly shortfall -monthly CAM invoice -W-9 Discovery Dental Lab Lease 2005 $ 50,000 $ 50,000 $2,869 - rent (per mth) -lease $268 -utilities (per mth) -comcast/phone bill $27,360- payroll (per mth) -payroll ledgers -W-9 Andrews Chiropractic, PA Own 1988 $ 50,000 $ 50,000 -payroll -property tax statement -P/L 4-5 months -payroll detail -W-9 Fitaholic Fitness - Andover Lease 2018 $ 50,000 $ 50,000 $15,940 -Rent -lease agreement $20,000- equipment rental -club deposit ledger -equipment lease summary -W-9 Olmira's Tailor Shop Lease 1987 $ 10,000 $ 10,000 $2,720 -employee -lease agreement $3,442 - rent -lease invoice $2,467 - payroll -credit card balance $1,265-credit(bus) -tax statements -941s -W-9 27 22 23 24 CIN OF ANDOVER Small Business Emergency Grant Application Business Own/Lease Year Started Justification Requested Capped Documentation Included DBA 3 Sweet Toppings Frozen Yogurt Lease 2011 $ 50,000 $ 50,000 $2,447 - lease (per mth) -lease agreement $7,000- payroll (per mth) -lease pymt summary $625- utilities (per mth) -payroll ledger summary/detail $1,570 - loan (per mth) -gas/ electric summary -SOFI personal loan info 4-5 months - P / L -W-9 3 Muddy Paws Doggy Daycare, LLC Own 2018 $ 40,000 $ 40,000 $6,400- SBA Mortgage (3 mths) -property tax statement $10,000- Bremer Bank Mortgage (4 mths) -SBA loan history $24,000 - payroll (4 mths) -Bremer loan summaries -payroll ledger summary/detail -W-9 Heil Chiropractic Center PA Lease 2012 $ 8,300 $ 8,300 $4,800 - rent (2 mths) -lease agreement $2,000- payroll (per mth) -note from building owner $1,500- utilities (per mth) -copies of cks- payroll/rent -multiple monthly invoice copies -payroll ledger -W-9 Lessons Learned Solutions LLC Own 2017 $ 1,320 $ 1,320 $800 -website mntce/marketing -Illinois Cert of Good Standing $200 - phone -muliple monthly invoice copies $260 -networking/ advising group -W-9 $32 -zoom $18 - giant tv Roger's Auto Body Inc Own 1973 $ 31,804 $ 31,804 $23,730 - payroll (14 wks) -property tax statement $3,750- insurance (3 mths) -insurance summary(gtrly) $2,747- utilities (3 mths) -muliple utility copies $1,577 - lease (3 mths) -Vee pay stubs -payroll detail -truck lease -W-9 Acapulco Mexican Restaurant Own 2016 $ 50,000 $ 50,000 $29,000 - rent (2 mths) -SBA Disaster Loan denial $21,000 - payroll (1-2 mths) -Anoka Co Prop Tax website info -2019 CPA tax statements -payroll detail _W-9 Pack Leader Behavior& Training, L Lease 2012 $ 9,379 $ 9,379 $7,000 - rent (2 mths) -lease agreement $479- utility pymts (2 mths) -SB PPPL $1,900- SB Emergency Loan -muliple utility copies -W-9 2i 28 W* 30 CITY OF ANDOVER Small Business Emergency Grant Application Business Own / Lease Year Started Requested Capped Justification Documentation Included DBA i North Forty Digital, Inc. Own 2014 $ 9,000 $ 9,000 $9,000 - payroll (3 mths) -property tax statement -payroll(quickbooks) -W-9 i Margie's Kitchen & Cocktails, LLC Lease 2020 $ 50,000 $ 50,000 Payroll, leases, construction expenses -lease agreement -payroll detail $11,000 -payroll bi-weekly -W-9 Lease - Aug/Sep: $4,200 / $5,200 Courtyards of Andover Lease 2013 $ 50,000 $ 50,000 4 months rent & association dues -lease agreement $13,268.81 per month -P/L -rent payment summary -W-9 Pappy's Cafe & Tavern Lease 2010 $ 116,000 $ 50,000 rent, payroll, etc. -Sales Comparisons -Bi-weekly payroll $7,077 - rent (per mth) -rent invoices ($7,077 per mth) $23,000 - payroll (2 weeks) -W-9 Inner Sanctum Salon &Spa Lease 2008 $ 50,000 $ 50,000 $4,100 - rent (per mth) -rent invoice $12,000- payroll (per mth) -payroll detail $1,130- utilities (per mth) P/L $5,000 - A/P -lease info $10,000 - product inventory (per mth) -utility invoices -W-9 $1,088,834 $ 972,834 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 SUBJECT: Approve Acquisition of Property DATE: September 1, 2020 REQUESTED ACTION The EDA is requested to receive a presentation and consider acquisition of a property in the Bunker Lake Boulevard Redevelopment Area. DISCUSSION The Executive Director is in active negotiations with various properties in the Bunker Lake Boulevard Redevelopment Area. Based on progress to date on negotiations the Executive Director would like to seek authorization on to acquire a specific property. Details of the negotiation will be presented at the meeting.