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HomeMy WebLinkAboutEDA - October 20, 20201685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100 FAX (763) 755-8923 • WWW.ANDOVERMN.GOV ECONOMIC DEVELOPMENT AUTHORITY MEETING October 20, 2020 6:00 p.m. Council Chambers 1. Call to Order— 6:00 p.m. 2. Recognition of Service to EDA - Joyce Twistol 3. Approval of Minutes (October 6, 2020) 4. Commercial/Development Updates - Planning 5. Review/Discuss/Recommend 2021 Proposed EDA Budget —Administration 6. Closed Session: Bunker Redevelopment Area Property Negotiations- Administration 7. Other Business 8. Adjournment Some or all members of the Andover EDA may participate in the October 6, 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. NDO O 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 Hartner, Deputy City Clerk SUBJECT: Approval of Minutes DATE: October 20, 2020 INTRODUCTION The following minutes were provided by Staff reviewed by Administration and submitted for EDA approval: October 6, 2020 Regular DISCUSSION The minutes are attached for your review. ACTION REQUIRED The EDA is requested to approve the above minutes. Respectfully submitted, Michelle Hartner Deputy City Clerk Attach: Minutes 2 3 4 5 6 7 8 9 10 11 12 13 ANDOVER ECONOMIC DEVELOPMENTAUTHORITYMEETING— OCTOBER 6, 2020 -MINUTES The Meeting of the Andover Economic Development Authority was called to order by President Julie Trude October 6, 2020, 6:00 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. 14 Present: 15 16 17 Absent: 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 Also present: APPROVAL OFMINUTES Commissioners Sheri Bukkila, Jamie Barthel (via Zoom), Ted Butler, Greg Mueller and Kari Kafer Commissioner Valerie Holthus EDA Executive Director, Jim Dickinson September 1, 2020, Regular Meeting: Correct as presented Motion by Bukkila, Seconded by Butler, to approve the minutes as presented. Motion carried 6 ayes, and 1 absent (Holthus). DISCUSS/CONSIDER APPROVAL ROUND 2 - SMALL BUSINESS GRANT PROGRAM Mr. Dickinson reviewed the CARES Act grant program. The City received the funds from the State on July, 6, 2020. The City; can have discretion to determine what the funds can be used for and decided to put a significant amount of the funds toward a program to help small businesses within the City. The City has until November 15, 2020 to spend down the CARES funds, unspent funds would be returned to Anoka County after November 15, 2020. Anoka County would then have 15 days to spend the funds and any remainder would go back to the State. Mr. Dickinson stated the program funding target is $1.8 million, targeting local businesses and non -profits. Round 1 took place in August with 29 applications received. $972,834 was distributed to qualifying businesses. Round 2 kicked off September 11t. Staff received 27 applications requesting $925,850. Staff reviewed the applications and is requesting approval of funds for $829,650 be distributed to qualifying businesses. Commissioner Kafer asked for clarification on the amount requested versus the amount staff is asking for approval. Mr. Dickinson replied while verifying some amounts were lowered due to the "stacking" of grants with the County and other amounts requested on some applications could not be verified. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 Andover Economic Development Authority Meeting Minutes — October 6, 2020 Page 2 Commissioner Butler asked if any non -profits applied. Mr. Dickinson indicated no applications from non -profits were submitted. Motion by Butler, Seconded by Mueller approving Round 2 of the small business grant application list. Motion carried unanimously. Mr. Dickinson stated some restaurants have inquired about putting up tents with heaters for outdoor dining going into the cooler season. He continued the City does have guidelines in place for temporary structures such as tents. Mr. Dickinson stated you may see some restaurants limiting their hours to their busy times. DISCUSS/CONSIDER ACQUISITION PROPER TY Mr. Dickinson indicated the closing for the 4-plex located at 2556 138th Avenue will be completed before October 30, 2020. Transition management and following up on tenant leases will take place after closing. Mr. Dickinson stated the EDA is requested to approve the purchase agreement for the twin home located at 2513 Bunker Lake Boulevard. The sellers have signed the purchase agreement and would like to close on the property before October 15, 2020. Motion by Barthel, Seconded by Kafer approving the purchase agreement for the acquisition of 2513 Bunker Lake Boulevard. Motion carried unanimously. Commissioner Bukkila asked what properties will be demolished. Mr. Dickinson replied 2557 Bunker Lake Boulevard and 2526 138th Avenue will hold Fire Department and Sheriffs Office training before being demolished. Mr. Dickinson reviewed the redevelopment area. OTHER BUSINESS Mr. Dickinson updated the EDA on the housing developer interest for the Sonsteby property on 7' Avenue and Bunker Lake Boulevard. Staff has met with the developer. President Trude asked about the city sign on Bunker Lake Boulevard that was hit by a car. Mr. Dickinson indicated Mr. Brezinka is in charge of risk management and is taking care of that incident. ADJOURNMENT Motion by Butler, Seconded by Bukkila to adjourn. Motion carried unanimously. The meeting adjourned at 6:35 p.m. Respectfully submitted, Andover Economic Development Authority Meeting Minutes — October 6, 2020 Page 3 2 Michelle Hartner, Recording Secretary -ANC I T Y 0 F nq* NDOVE 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100 FAX (763) 755-8923 • WWW.ANDOVERMN.GOV TO: CC: FROM: SUBJECT: DATE: President and Commissioners Jim Dickinson, Executive Director Joe Janish, Community Developm, Review Commercial Project Activity October 20, 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 in process of completing this project. Staff meet with the applicant and due to the overhead power lines and concern with power company trimming in the future some adjustments were made to the plantings. • Hearth Development, 1714 Bunker Lake Blvd. NW — Two tenant spaces remain to be leased. Staff was asked if a Liquor Store could be located in this building, however due to the property being zoned Industrial it would not be permitted. • 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. The northwest Outdoor Education classroom additions are completed and occupied. Walls for the new field house are being topped out and the structural roof steel has been installed. Interior remodeling is underway through the existing locker rooms. • 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. Staff has been contacted about contract warehousing for home based business. • Andover PW Maintenance Building, 1900 Veterans Memorial Blvd. —This is complete. • Andover Community Center, 15200 Hanson Blvd. NW — All areas are occupied, punch lists and final inspections are anticipated through the end of the year. • YMCA Expansion — Complete, punch list items only. • Beberg Landscaping (self -storage) — City Council approved a CUP for additional Mini -storage on a portion of this location on February 51. 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 — Kinghom Construction is underway to build a three-story classroom addition between the existing buildings to replace temporary classrooms. This has had the Certificate of Occupancy issued. • 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. This is underway. • Restaurants/Fast Food — Currently staff is aware of companies continuing to look for land to locate in Andover. • 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" Ave Monument Sign — This is complete. • 71 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. Staff has meet with some home builders on this property. The density level has created issues with the developer as they have builders for more density and less and is difficult to hit the target. • 2557 Bunker Lake Blvd. — Asbestos removal is complete. Quote forms are distributed to demolition contractors. City Council will consider demolition award in the near future. • 2526 138' Avenue — Asbestos removal is complete. Quote forms are distributed to demolition contractors. City Council will consider demolition award in the near future. • 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 small business grant program and an update will be provided at this meeting. Funds have been distributed and advertisement has been removed from the City Website. • Housing — Developers are looking for additional land for future developments. Several developers are trying to keep an inventory of lots, but are having difficulty in finding locations. • 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. j C I T Y 0 F ND 06 VWE Il+�% 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 2021 EDA Budget DATE: October 20, 2020 INTRODUCTION The EDA is requested to receive a brief presentation on the proposed 2021 Special Revenue Fund budget. DISCUSSION The Executive Director will use the attached documents as the basis for the 2021 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 2021 3. EDA Budget Detail Worksheets ACTION REQUESTED a presentation, discuss and recommend a proposed 2021 EDA Special Revenue Fund budget. submitted, Jim City of Andover Special Revenue Funds Economic Development Authority Fund Statement of Revenues, Expenditures and Changes in Fu;,d Balance 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 $ 247,431 $ 198,788 $ 198,788 $ 105,710 7,096 6,231 177 13,504 7,000 7,000 7,000 2,000 2,000 2,000 9,000 9,000 9,000 13,504 Actual Adopted Estimate 1 Requested 1 Description 2019 2020 2020 2021 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 $ 247,431 $ 198,788 $ 198,788 $ 105,710 7,096 6,231 177 13,504 7,000 7,000 7,000 2,000 2,000 2,000 9,000 9,000 9,000 13,504 9,000 9,000 9,000 260,935 207,788 207,788 114,710 2,896 6,028 6,028 6,028 3,371 18,900 18,900 18,900 43,164 63,300 63,300 63,400 12,716 13,850 13,850 13,850 62,147 102,078 102,078 102,178 62,147 102,078 102,078 102,178 Fund Balance, December 31 $ 198,788 $ 105,710 $ 105,710 $ 12,532 Change in Fund Balance $ (48,643) $ (93,078) $ (93,078) $ (93,178) -20% -47% -47% -88% Fund: Economic Development Authority Activity Type/Code: Special Revenue Expenditure Highlights 2020 & 2021 includes funding for monument entrance signs. 2020 also includes irrigating the median in the Andover Station area. 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 2021 BUDGET CITY OF ANDOVER, MINNESOTA City of Andover Budget Detail for all Object Codes (List each expense account individually with specific cost detail) Department I Cost Center: Economic Development - 2110 Object Code Explanation Amount Requested 2020 2021 Budget Adjustment Total 2021 Request Priority 1 through 5 11 -high 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 61320 ANNUAL DUES I 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 I PARKING 2,200 2,200 Staff/Commision Travel 0 0 Executive Director % allocation 0 0 0 0 Total 2,200 0 2,200 62005 ELECTRIC 7,000 7,000 Andover Station Area Street Light Cost Sharing 0 0 0 0 Total 7,000 0 7,000 62100 INSURANCE 5,250 5,250 Risk Management/LMCIT Premiums 0 0 0 0 Total 5,250 0 5,260 62210 COMPUTER SERVICES 1,600 1,600 Central systems - Servedemail/imaging/etc. 0 1 0 0 1 0 Page I of 2 City of Andover Budget Detail for all Object Codes (List each expense account individually with specific cost detail) Department I Cost Center: Economic Development - 2110 Object Code Explanation Amount Requested 2020 2021 Budget Adjustment Total 2021 Request Priority 1 through 5 1 -high : 5 -low Total 1,600 0 1,600 63005 PROFESSIONAL SERVICES 3,500 3,500 Audit - LB 2,300 100 2,400 0 0 Total 5,800 100 5,900 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 30,000 30,000 Total 53,000 0 53,000 63015 ATTORNEY 2,000 2,000 0 0 0 0 Total 2,000 0 2,000 63025 PUBLISHING 2,500 2,500 Tax Increment Reporting 0 0 0 0 Total 2,500 0 2,500 Grand Total for all Expenditures $96,050 $100 $96,150 Page 2 oj2 General Ledger Expense vs Budget By �`[ fi►1 Dept '�1,Tr r%tTT'.%1t User: LBrezinka Printed: 10/14/20 14:22:22 Period 09 - 09 Fiscal Year 2020 Account Description Budget MTD YTD % Expensed P -YTD Number 2110 EDA 46500 Economic Development Salaries & Benefits 2110-46500-60110 Salaries- Regular 0.00 0.00 304.02 0.00 79.60 2110-46500-60140 Salaries - Council Commissio 5,600.00 0.00 40.00 0.71 0.00 2110-46500-60210 FICA 347.00 0.00 20.22 5.83 13.29 2110-46500-60220 Medicare 81.00 0.00 4.71 5.81 3.11 2110-46500-60310 Health Insurance 0.00 14.33 186.63 0.00 167.86 2110-46500-60320 Dental Insurance 0.00 0.52 6.68 0.00 6.52 2110-46500-60330 Life Insurance 0.00 0.01 0.11 0.00 0.18 2110-46500-60340 Long -Term Disability 0.00 0.25 2.96 0.00 3.46 2110-46500-60410 PERA 0.00 0.00 22.80 0.00 17.22 2110-46500-60420 Nationwide Retirement 0.00 3.73 33.61 0.00 34.71 Salaries & Benefits 6,028.00 18.84 621.74 10.31 325.95 Departmental 2110-46500-61005 Supplies - General 2,000.00 0.00 150.00 7.50 95.00 2110-46500-61130 R & M Supplies - Landscape 10,000.00 0.00 0.00 0.00 0.00 2110-46500-61310 Meals Lodging 700.00 0.00 0.00 0.00 15.00 2110-46500-61315 Continuing Education 1,500.00 0.00 0.00 0.00 295.00 2110-46500-61320 Annual Dues Licenses 1,500.00 0.00 1,043.00 69.53 1,031.00 2110-46500-61405 Postage 1,000.00 22.40 66.48 6.65 73.80 2110-46500-61410 Transportation Mileage 2,200.00 150.00 1,350.00 61_36 1,350.00 Departmental 18,900.00 172.40 2,609.48 13.81 2,859.80 Operating 2110-46500-62005 Electric 7,000.00 65.06 488.56 6.98 531.85 2110-46500-62100 Insurance 5,250.00 0.00 7,128.00 135.77 6,099.00 211046500-62210 Computer Services 1,600.00 0.00 1,600.00 100.00 1,600.00 Operating 13,850.00 65.06 9,216.56 66.55 8,230.85 Professional Services 2110-46500-63005 Professional Services 5,800.00 0.00 2,068.00 35.66 2,680.80 2110-46500-63010 Contractual Services 53,000.00 3,849.84 49,794.10 93.95 36,003.01 2110-46500-63015 Attorney 2,000.00 0.00 0.00 0.00 0.00 2110-46500-63025 Publishing 2,500.00 0.00 100.00 4.00 445.00 2110-46500-63100 R & M Labor - General 0.00 0.00 1,025.00 0.00 0.00 Professional Services 63,300.00 3,849.84 52,987.10 83.71 39,128.81 46500 Economic Development 102,078.00 4,106.14 65,434.88 64.10 50,545.41 GL - Expense vs Budget By Dept (10/14/2020 - 2:22 PM) Page I