HomeMy WebLinkAboutEDA - December 15, 20201685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100
FAX (763) 755-8923 • WWW.ANDOVERMN.GOV
ECONOMIC DEVELOPMENT AUTHORITY
MEETING
December 15, 2020
6:00 p.m.
Council Chambers
1. Call to Order— 6:00 p.m.
2. Approval of Minutes (October 20, 2020)
3. Approve LMCIT Liability Coverage —Administration
4. Consider Approval — Amendment to Declaration of Covenants —Administration
5. Commercial/Development Updates - Planning
6. Bunker Redevelopment Area Update (Verbal) -Administration
7. Other Business
8. Adjournment
Some or all members of the Andover EDA may participate in the December 1, 2020 City Council meeting
by telephone or video conference rather than by being personally present at the City Council's regular
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. The public can also be provided
a ZOOM video conference invite by going to www.andovermn.gov and clicking on the meeting in the
calendar for the link.
C I T Y O F
MOVE.
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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 Cler
SUBJECT: Approval of Minutes
DATE: December 15, 2020
INTRODUCTION
The following minutes were provided by Staff reviewed by Administration and submitted
for EDA approval:
October 20, 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
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6 ANDOVER ECONOMIC DEVELOPMENTAUTHORITYMEETING-
7 OCTOBER 20, 2020 - MINUTES
8
9
10 The Meeting of the Andover Economic Development Authority was called to order by President
11 Julie Trude October 20, 2020, 6:00 p.m., at the Andover City Hall, 1685 Crosstown Boulevard
12 NW, Andover, Minnesota.
13
14 Present: Commissioners Sheri Bukkila (arrived at 6:04 p.m.), Jamie Barthel
15 (remote), Valerie Holthus (remote), Ted Butler, Kari Kafer and
16 Greg Mueller
17
18 Absent: None
19
20 Also present: EDA Executive Director, Jim Dickinson
21 Community Development Director, Joe Janish
22 City Engineer/Public Works Director, Dave Berkowitz
23
24
25 AMEND AGENDA
26
27 Mr. Dickinson requested the Closed Session be removed from the agenda and add to the agenda
28 Approve Bunker Redevelopment Area Property Acquisitions.
29
30 Motion by Butler, Seconded by Ka%r, to approve the amended agenda. Motion taken by roll
31 call:
32
33 President Trude: aye
34 Commissioner Butler: aye
35 Commissioner Holthus: aye
36 Commissioner Barthel: aye
37 Commissioner Kafer: aye
38 Commissioner Mueller: aye
39
40 Motion carried 6 ayes and 1 absent (Bukkila).
41
42 RECOGNITION OF SERVICE TO EDA — JOYCE TWISTOL
43
44 President Trude recognized Joyce Twistol for her 15 years of service as an EDA Commissioner.
45 President Trude thanked Ms. Twistol for her knowledge and passion for Andover she brought to
46 the EDA Authority.
47
48 Ms. Twistol stated it was a pleasure serving on the EDA for 15 years.
Andover Economic Development Authority Meeting
Minutes — October 20, 2020
Page 2
1 APPROVAL OF MINUTES
2
3 October 6, 2020, Regular Meeting: Correct as presented.
4
5 Motion by Kafer, Seconded by Mueller, to approve the minutes as presented. Motion taken by
6 roll call:
7
8 President Trude: aye
9 Commissioner Butler: aye
10 Commissioner Holthus: aye
11 Commissioner Bukkila: aye
12 Commissioner Barthel: aye
13 Commissioner Kafer: aye
14 Commissioner Mueller: aye
15
16 Motion carried unanimously.
17
18
19 REVIEW COMMERCIAL PROJECT ACTIVITY
20
21 Mr. Janish updated on the following:
22
23 Upper Midwest Athletic Construction — The applicant has made a few changes by moving the
24 pond further to the west. The applicant is in the process of completing this project. Staff met with
25 the applicant and due to the overhead power lines and concern with power company trimming in
26 the future some adjustments were made to the plantings.
27
28 Hearth Development, 1714 Bunker Lake Boulevard — Two tenant spaces remain to be leased.
29 Staff was asked if a liquor store could be located in this building, however due to the property
30 being zoned Industrial it would not be permitted.
31
32 Clocktower Commons, 15190 Bluebird Street — The final building pad location interest is
33 relatively low at this point.
34
35 Andover High School, 2115 Andover Boulevard — Phase 2 is underway. The northwest outdoor
36 education classroom additions are completed and occupied. Walls for the new field house are
37 being topped out and the structural roof steel has been installed. Interior remodeling is underway
38 through the existing locker rooms.
39
40 Interest in Hughes Industrial Park — Interest in this area comes and goes. A 10 -acre property
41 east of the park has been on the market and City Council reviewed with the landowner desired
42 roadway connections through the parcel at a past workshop. Staff has been contacted about
43 contract warehousing for a home-based business.
44
45 Andover Public Works Maintenance Building, 1900 Veterans Memorial Boulevard — This
Andover Economic Development Authority Meeting
Minutes — October 20, 2020
Page 3
project is complete.
Andover Community Center, 15200 Hanson Boulevard — All areas are occupied, punch lists and
final inspections are anticipated through the end of the year.
YMCA Expansion, 15200 Hanson Boulevard — Complete, punch list items only.
8 Beberg Landscaping (self -storage), 13535 Grouse Street — After staff completed the commercial
9 site plan review, staff was contacted that the developer desires to adjust each building by six inches
10 which requires a resubmittal of plan sets. Developer has recorded the RLS and transfer of property.
11
12 Legacy Christian Academy, 3037 Bunker Lake Boulevard — The Certificate of Occupancy has
13 been issued.
14
15 Integra Dental, 13783 This Street, Suite 400 — Expansion is underway to add additional
16 workstations, the work is almost complete.
17
18 Casey's, 15246 Bluebird Street— A permit application was submitted for a full commercial kitchen
19 and interior remodeling. This project is underway.
20
21 Restaurants/Fast Food — Currently staff is aware of companies continuing to look for land to
22 locate to in Andover.
23
24 TCF Site — TCF was approached by private parties about acquiring the lot from them. Staff has
25 heard from three parties who have made offers on the site. Two uses would be allowed according
26 to current zoning regulations. A third parry contacted City staff indicating they also made an offer.
27 Staff is unsure at this time if TCF has actually sold the parcel.
28
29 Train for Andover Station — Staff is attempting to follow up with a potential business on this
30 particular lot. This lot is owned by the Association.
31
32 Hanson Boulevard and 133'dAvenue Monument Sign — This project is complete.
33
34 711' Avenue and Bunker Lake Boulevard — Staff continues to work with Quest Development and
35 CenterPoint Energy on acquiring a roadway easement through the CenterPoint property.
36 CenterPoint has agreed to an alignment. The proposed developer is working on an easement
37 description for the property. Surveying work for boundaries have been completed according to
38 the developer. Staff has meet with some home builders on this property. The density level has
39 created issues with the developer as they have builders for more density and less and is difficult to
40 hit the target.
41
42 2557 Bunker Lake Boulevard -Asbestos removal is complete. Quote forms are distributed to the
43 demolition contractors. City Council will consider demolition award in the near future.
44
45 25261381 Avenue -Asbestos removal is complete. Quote forms are distributed to the demolition
Andover Economic Development Authority Meeting
Minutes — October 20, 2020
Page 4
contractors. City Council will consider demolition award in the near future. The wells will be
sealed.
President Trude asked about the timing of the demolition of the buildings. Mr. Janish replied the
demolition should occur in mid-December.
7 President Trude asked if letters could be sent to the neighbors regarding when the demolition will
8 occur. Mr. Janish indicated letters can be sent.
9
10 Holasek Property — This parcel has become relatively silent at the moment.
11
12 COVID-19 — The City has set up a page with several resources for businesses and residents on the
13 City of Andover website. The City of Andover also created the COVID-19 small business grant
14 program. Funds have been distributed and advertisement has been removed from the City website.
15
16 Housing—Developers are looking for additional land for future developments. Several developers
17 are trying to keep an inventory of lots but are having difficulty in finding locations. 115 new house
18 permits have been issued this year.
19
20 Overall Marketing — City staff continues to work with parties interested in investing in Andover
21 and marketing all commercial sites. Staff continues to work with Anoka County Regional
22 Economic Development (ACRED) on marketing of the community and Anoka County.
23
24 REVIEWIDISCUS'S 2021 PROPOSED EDA BUDGET
25
26 Mr. Dickinson reviewed the EDA budget information located in the packet. He stated the 2021
27 Fund Budget balance is getting quite low. A General Fund transfer to the EDA Fund to help
28 continue this process may need to take place prior to 2022. Mr. Dickinson continued the EDA
29 Fund has not been a tax levy item, the EDA has been working with redevelopment and managing
30 TIF Districts. There are no active TIF Districts at this time. Personnel services historically have
31 billed for staff time, now staff is not billing the EDA. The EDA commissioner salaries are the
32 only staff personnel costs in the EDA budget.
33
34 Mr. Dickinson indicated the main source of draw on the EDA budget in the last few years has been
35 the monument signs.
36
37 Mr. Dickinson indicated the EDA's mission is provide for quality developments of commercial
38 and industrial properties and keeping them strong and viable.
39
40 Mr. Dickinson stated he does anticipate making changes to the rentals and billing time for
41 administration towards the rental properties.
42
43 Mr. Dickinson reviewed the Budget Detail items.
44
45 Commissioner Butler asked about the low fund balance and when would the transfer from the
Andover Economic Development Authority Meeting
Minutes —October 20, 2020
Page 5
1 General Fund take place. Mr. Dickinson replied right now with the rental properties there is
2 positive cash flow into the EDA Fund. He anticipates the transfer would take place the end of
3 2021.
4
5 President Trude asked if the 2021 budget numbers should be reduced. Mr. Dickinson replied staff
6 can make adjustments but with COVID, costs are lower than usual then they would be in a
7 "normal' year.
8
9 Motion by Bukkila, Seconded by Kafer to recommend the EDA Budget to the City Council.
10 Motion taken by roll call:
11
12 President Trude: aye
13 Commissioner Butler: aye
14 Commissioner Holthus: aye
15 Commissioner Bukkila: aye
16 Commissioner Barthel: aye
17 Commissioner Kafer: aye
18 Commissioner Mueller: aye
19
20 Motion carried unanimously.
21
22 APPRO VE BUNKER REDEVELOPMENTAREA PROPER TYACQUISITIONS
23
24 Mr. Dickinson stated the closing for 2556 138h Avenue will take place October 30, 2020. The
25 City closed on 2513 Bunker Lake Boulevard on October 15, 2020
26
27 Mr. Dickinson indicated the EDA is requested to consider the acquisition of two properties 2621
28 and 2607 Bunker Lake Boulevard. The purchase price would be $460,000 each. At this time one
29 4-plex has 3 tenants and the other has 4 tenants. The renters are currently on a month-to-month
30 lease. The closing would take place before December 30, 2020.
31
32 Motion by Barthel, Seconded by Bukkila approving the acquisition of 2621 and 2607 Bunker Lake
33 Boulevard and authorizing the Executive Director to the sign the purchase agreement.
34
35 Commissioner Bukkila asked how many acres the EDA has acquired in this area. Mr. Janish
36 replied roughly 5 acres.
37
38 Mr. Dickinson reviewed the area.
39
40 Mr. Dickinson indicated the acquisition fund still has some funds available for 2021.
41
42 Commissioner Bukkila asked for a review of the tenant occupancy of the properties the EDA owns.
43 Mr. Janish updated the tenant occupancy.
44
45 Motion taken by roll call:
Andover Economic Development Authority Meeting
Minutes —October 20, 2020
Page 6
1 President Trude: aye
2 Commissioner Butler: aye
3 Commissioner Holthus: aye
4 Commissioner Bukkila: aye
5 Commissioner Barthel: aye
6 Commissioner Kafer: aye
7 Commissioner Mueller: aye
9 Motion carried unanimously.
10
11 OTHER BUSINESS
12
13 STRIP MALL BUILDING IN FRONT OF TARGET
14
15 Mr. Dickinson indicated the EDA does have covenants on the property which does restrict the
16 amount of office space in that building. The owner of the building has a vacancy. A real estate
17 company is interested in renting the 1,800 square foot space. The owner would like to seek a
18 waiver from the EDA for this specific lease. The City Attorney advises not to sign a waiver as
19 this could create issues in the future.
20
21 The property owner's attorney was able to secure a waiver from Target. Target is fine with the
22 lease and did put together an extensive letter identifying what they are willing to agree with and
23 setting limitations. The property owner's attorney is working to get 100% waiver sign off from
24 all the businesses in that area. The waiver does indicate if the real estate company leaves the
25 building the original restrictions go back into effect.
26
27 Commissioner Holthus asked if all the office buildings are full or do they just want to be on Bunker
28 Lake Boulevard. Mr. Dickinson answered most of the office space in the area is rented.
29
30 Commissioner Kafer stated she does not agree with the real estate company going into the building.
31 She would like to see a retail business go into the space that is going to serve more Andover
32 residents than a real estate company would.
33
34 Commissioner Butler stated he is fine with the real estate company going into the space, he would
35 like to see the space filled.
36
37 Commissioner Mueller indicated he agrees with Commissioner Butler especially during this
38 current environment.
39
40 Commissioner Barthel stated he agrees with Commissioners Butler and Mueller. He would rather
41 see the building full and does not like to tell business property owners what or what cannot go into
42 their building.
43
44 Mr. Dickinson reviewed the restrictions Target put into their letter. He indicated Target does not
45 want to see empty space in front of them. He feels filling the space is the right decision.
2
rd
Andover Economic Development Authority Meeting
Minutes — October 20, 2020
Page 7
President Trude and Commissioner Holthus agree with filling the space.
ADJOURNMENT
President Trude declared the meeting adjourned at 6:56 p.m.
Respectfully submitted,
9 Michelle Hartner, Recording Secretary
10
(T
1685 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
December 1, 2020
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.
LMC
LEAGUE of
MINNESOTA
CITIES
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 pstechna,lmc.org.
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.
LEAGUE OF MINNESOTA CITIES 145 University Avenue West PH: (651) 281-1200 FX: (651) 281-1298
-INSURANCE TRUST. St. Paul, Minnesota 55103 TF: (800) 925-1122 www.imc.org
LMCIT Member Name: Andover Economic Development Authority
Check one:
The member DOES NOT WAIVE the monetary limits on municipal tort liability established by Minn.
Stat. S 466.04.
F]The member WAIVES the monetary limits on municipal tort liability established by Minn. Stat. &
466.04, to the extent of the limits of the liability coverage obtained from LMCIT.
Date of member's governing body meeting:
Signature: Position:
2
rill
-AN66W
1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100
FAX (763) 755-8923 • WWW.ANDOVERMN.GOV
TO: President and Commissic
FROM: Jim Dickinson, Executive
SUBJECT: Consider Amendment to
DATE: December 15, 2020
REQUESTED ACTION
The EDA is requested to review and consider approval of the attached Amendment to Declaration of
Restrictive Covenants for Andover Marketplace East.
DISCUSSION
At the October 201h EDA meeting, staff indicated the EDA has covenants on the property (1966 Bunker
Lake Blvd NW — Lot 2, Block 1) which does restrict the amount of office space in that building to no
more than 10% of the total space. The owner of the building has a vacancy, and a real estate company
is interested in renting approximately 1,800 square foot space
The owner first sought a waiver from the EDA for this specific lease, but the City Attorney advised
against the EDA signing a waiver as this could create issues in the future from the other burdened
property owners referenced in the covenants. It was recommended that an amendment to the covenants
be agreed to by all burden properties.
(Lot 1, Block 1, Lot 2, Block 1, Lot 1, Block 2, and Outlots A, B, C, D, and E, Andover Marketplace
East, according to the recorded plat thereof, Anoka County, Minnesota are the "Burdened Properties".)
The property owner's attorney has discussed the potential of an amendment with all the burdened
properties, all have indicted support of an amendment removing the restrictions and the preference of
tenant space filled rather than vacant. The attached Amendment to Declaration of Restrictive Covenants
was prepared by the property owners attorney and reviewed by the EDA Executive Director and City
Attorney.
Attachments: -Andover Marketplace East map
-Amendment to Declaration of Restrictive Covenants
-Declaration of Restrictive Covenants
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AMENDMENT TO
DECLARATION OF RESTRICTIVE COVENANTS
This Amendment to Declaration of Restrictive Covenants (this "Amendment") is made as of the
day of December, 2020, by the Andover Economic Development Authority, a body
corporate and politic under the Laws of Minnesota ("the Declarant"), Target Corporation, a
Minnesota corporation ("Target"), Maplewood Corner Plaza, LLC ("Maplewood Corner"), Yayin
Gadol, LLC d/b/a Top Ten Liquors, a Minnesota corporation ("Top Ten Liquors"), Minnco Credit
Union, a Minnesota Credit Union ("Minnco"), SCI Georgia Funeral Services, LLC, a Delaware
limited liability company ("SCI Georgia"), and Andover Station Owners Association, a Minnesota
non-profit corporation ("Andover Station"), each a "Parry" or collectively the `Burdened Owners"
WHEREAS, the Declarant made a Declaration of Restrictive Covenants dated December 18, 2003
and registered with the Anoka County Register of Titles on December 23, 2003 as Document No.
455182 (the "Declaration");
WHEREAS, the Declaration burdened certain real property legally described as:
Lot 1, Block 1, Lot 2, Block 1, Lot 1, Block 2, and Outlots A, B, C, D, and E,
Andover Marketplace East, according to the recorded plat thereof, Anoka County,
Minnesota
(the "Burdened Properties");
WHEREAS, the Declaration set forth certain restrictive covenants on the Burden Properties;
WHEREAS, the Burdened Owners are all owners of the certain properties that comprise the
Burdened Properties;
WHEREAS, the Burdened Owners comprise all the owners of the Burdened Properties;
WHEREAS, Section 10 of the Declaration states it may be amended only by written agreement of
all Burdened Owners;
WHEREAS, the Burdened Owners wish to amend the Declaration as set forth below; and
WHEREAS, the Burdened Owners wish the Declaration, as amended, to continue in full force and
effect;
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the Parties agree as follows:
Section 3.1 of the Declaration is stricken in its entirety, and replaced with the following:
The Burdened Property shall be used only for retail sales and businesses, Retail Offices,
Business Offices, Restaurants or other permitted commercial and service -related purposes.
"Business Office" shall mean an office which does not provide services directly to
consumers, "Retail Office" shall mean an office which provides services directly to
consumers, including but not limited to financial institutions, real estate companies, stock
brokerages, title companies, travel and insurance agencies, legal offices, and medical,
surgical, chiropractic, and dental clinics.
2. Except as expressly modified by this Amendment, all of the terns, conditions, agreements,
covenants, representations, warranties and indemnities contained in the Declaration remain
unmodified and in full force and effect. In the event of any conflict between the terms and
conditions of this Amendment and the terms and conditions of the Declaration, the terns and
conditions of this Declaration will prevail.
3. This Amendment is binding upon and will inure to the benefit of the Burdened Owners and
their respective heirs, legal representatives, successors and assigns.
4. This Amendment may be executed in counterparts, each of which will constitute an
original, and all of which, when taken together, will constitute the same instrument. If any
signature is delivered by facsimile transmission or by e-mail delivery of an electronic format data
file (i.e..pdf), such signature will create a valid and binding obligation of the party executing (or
on whose behalf such signature is executed) with the same force and effect as if such facsimile or
'.pdf' signature page was an original thereof.
[The Remainder of this Page Intentionally Left Blank.]
IN WITNESS WHEREOF, the parties executed the foregoing Amendment to Lease Agreement as
of the date and year first written above.
THE ANDOVER ECONOMIC DEVELOPMENT AUTHORITY
a body corporate and politic under the Laws of Minnesota
By:
Its:
TARGET CORPORATION
a Minnesota corporation
By:
Its:
MAPLEWOOD CORNER PLAZA, LLC
a Minnesota limited liability company
By: Anil K. Jain
Its: Manager
YAYIN GADOL, LLC
a Minnesota limited liability company
By:
Its:
MINNCO CREDIT UNION
a Minnesota credit union
By:
Its:
c
SCI GEORGIA FUNERAL SERVICES, LLC
A Delaware limited liability company
By:
Its:
ANDOVER STATION OWNERS ASSOCIATION
A Minnesota nonprofit corporation
By:
Its:
11
455182
DECLARATION OF RESTRICTIVE COVENANTS
THIS DECLARATION is made as of the /FA day of December, 2003, by Andover
Economic Development Authority, a body corporate and politic under the laws of Minnesota (the
"Declarant").
RECITALS
WHEREAS, the Declarant is the fee owner of certain property located in the City of
Andover, Anoka County, Minnesota and legally described on Exhibit A attached hereto (the
"Burdened Property");
WHEREAS, Declarant wishes to impose upon and subject the Burdened Property, or
portions thereof, to certain covenants, restrictions and conditions
NOW THEREFORE, the Declarant hereby DECLARES, imposes upon and makes the
Burdened Property subject to the following covenants, restrictions and conditions
Section 1 Recitals The recitals set forth above are hereby incorporated into this
Declaration as more fully set forth herein
Section 2 Definitions The following terms shall have the meanings hereinafter set forth
2 1 Burdened Owner. The owner(s) from time to time of all or any portion of the
Burdened Property
2 2 Building `Building" shall mean any permanently enclosed structure placed,
constructed or located on the Burdened Property, which for the purpose of this Declaration shall
include any building appurtenances such as stairs leading to or from a door, transformers, trash
containers or compactors, canopies, supports, loading docks, truck ramps, and other outward
extensions of such structure
2.3 Floor Area "Floor Area" shall mean the aggregate of the actual number of square
feet of space (r) contained on each floor within a Building, including any mezzanine or basement
Doc# 1830238\7
GpNflMOF+w*IRet. PAII'INpffle iYfl,S, L.±.G
space, as measured from the exterior faces of the exterior walls or store front and/or the center
line of any common walls, provided, however, that the following areas shall not be included in
such calculation space attributable to any multi -deck, platform, rack or other multi-level system
used solely for the storage of merchandise which is located above ground floor, any space used
solely for Building utilities or mechanical equipment; (n) outdoor seating for customers of
Restaurants and/or other food service businesses Within thirty (30) days after receipt of a
request therefor, any owner or Occupant of any portion of the Burdened Property shall certify to
any other owner or Occupant of the Burdened Property the amount of Floor Area applicable to
the Burdened Property or any portion thereof requested by such owner or Occupant, provided,
such request shall not exceed more than once per year unless such requesting party has a
reasonable belief that the Floor Area has changed If an owner or Occupant of any portion of the
Burdened Owner or any agent, successor or assign thereof causes an as -built survey to be
prepared with respect to any portion of the Burdened Property, said owner or Occupant shall
furnish or cause to be furnished a copy of such survey to any other owners of the Burdened
Property for informational purposes only
2 4 Occupant "Occupant" shall mean any Person from time to time entitled to the use
and occupancy of any portion of a Buildmg in the Burdened Property under an ownership right or
under any lease, sublease, license, concession, or other similar agreement
2 5 Person "Person" shall mean any individual, partnership, firm, association,
corporation, limited liability company, trust, or any other form of business or governmental
authority
2 6 Restaurant "Restaurant" shall mean any operation or business which requires a
governmental permit, license and/or authorization to prepare and/or serve food for either on or
off-site consumption, provided, however, notwithstanding anything contained herein to the
contrary, a supermarket, grocery store or similar operation shall not be deemed a Restaurant
Section 3 Imposition of Covenants Declarant hereby declares, imposes upon and makes
the Burdened Property subject to all of the following covenants, restrictions and conditions
3 1 The Burdened Property shall be used only for retail sales and businesses, Retail
Offices, Business Offices (subject to the following restrictions), Restaurants or other permitted
commercial and service -related purposes "Business Office" shall mean an office which does not
provide services directly to consumers, "Retail Office" shall mean an office which provides
services directly to consumers, including but not limited to financial institutions, real estate,
stock brokerage and title companies, travel and insurance agencies, and medical, surgical,
chiropractic, dental and legal clinics. No more than ten percent (10%) of the total Floor Area on
any lot in the Burdened Property may be used for Retail Office and/or Business Office purposes,
provided, however, that office space used by an Occupant for administrative purposes, and which
is not open to the general public, shall not be considered Business Office for the purpose of this
limitation
3 2 No portion of the Burdened Property shall be used for any of the following purposes -
(A) Any use which emits an obnoxious odor, noise or sound which can be
heard or smelled outside of any Building
Doc# 1830238\7
(B) An operation primarily used as a storage warehouse operation and any
assembling, manufacturing, distilling, refining, smelting, agricultural or
mining operation
(C) Any "second-hand" store, "surplus" store, or pawnshop As used herein a
"second-hand" store shall specifically exclude any "Qualified Chain"
which sells first quality new as well as used goods As used herein, a
"Qualified Chain" shall mean a retail company or franchise operation
having a national or regional presence, operating or franchising the same
retail business under the same tradename in at least six (6) business
locations within the Twin Cities metropolitan area, or in at least fifty (50)
business locations serving the public in the United States and utilizing
relative to all or a substantial majority of such business locations a
prototypical exterior building elevation or sign fascia design consisting of
generally recognized logo or trademark emblems or other similar indicia of
said Qualified Chain's identity (examples of the foregoing exclusion to
"second-hand" stores are retail stores such as Play -It -Again -Sports,
Computer Renaissance, Second Swing, etc, but shall not include thrift
stores such as the Salvation Army or Goodwill)
(D) Any mobile home park, trailer court, labor camp, junkyard, or stockyard,
provided, however, this prohibition shall not be applicable to the
temporary use of construction trailers during penods of construction,
reconstruction or maintenance
(E) Any dumping, disposing, incineration or reduction of garbage, provided,
however, this prohibition shall not be applicable to garbage compactors,
trash receptacles or dumpsters used in connection with the business on or
within the Burdened Property located near the rear or side (but not the
front) of any Building
(P) Any fire sale, bankruptcy sale (unless pursuant to a court order) or auction
house operation
(G) Any central laundry, dry cleaning plant or laundromat; provided, however,
this prohibition shall not be applicable to nominal supportive facilities for
on-site service oriented to pickup and delivery by the ultimate consumer as
the same may be found in retail shopping centers in the metropolitan area
where the Burdened Property is located
(I) Any automobile, truck, trailer or recreational vehicle sales, leasing, display
or body shop repair operation
Doc$ 1830238\7
(I) Any bowling alley or skating nnk
(.1) Any movie theater or live performance theater.
(K) Any hotel, motel, short or long term residential use, including but not
limited to, single family dwellings, townhouses, condominiums, other
multi -family units, and other forms of living quarters, sleeping apartments
or lodging rooms
(L) Any vetennary hospital or animal raising or boarding facility, provided,
however, this prohibition shall not be applicable to pet shops.
Notwithstanding the forgoing exception, any veterinary or boarding
services provided in connection with the operation of a pet shop shall only
be incidental to such operation, the boarding of pets as a separate customer
service shall be prohibited, all kennels, runs and pens shall be located
inside the Building, and the combined incidental veterinary and boarding
facilities shall occupy no more than fifteen percent (15%) of the Floor
At ea of the pet shop
(M) Any mortuaty or funeral home
(N) Any adult book store, adult theatre, adult amusement facility or any
establishment selling, renting or exhibiting pornographic materials or
having such displays
(0) Any establishment selling or exhibiting paraphernalia for use with illicit
drugs, or which exhibits either live or by other means to any degree, nude
or partially clothed dancers or wait staff.
(P) Any bar, tavern, Restaurant or other establishment whose reasonably
projected annual gross revenues from the sale of alcoholic beverages for
on -premises consumption exceeds forty-five percent (45%) of the gross
revenues of such business
(Q) Any Health spa, fitness center or workout facility to the extent they exceed
4,000 square feet of Floor Area
(R) Any flea market, amusement or video arcade, pool or billiard hall, car
wash, dance hall or massage parlor or similar establishment
(S) Any training or educational facility, including but not limited to beauty
schools, barber colleges, reading rooms, places of instruction or other
operations catering primarily to students or trainees rather than to
Doc# 1830238\7
customers; provided, however, this prohibition shall not be applicable to
on-site employee training by an Occupant incidental to the conduct of its
business at the Burdened Property
(T) Any gambling facility or operation, including but not limited to off-track
or sports betting parlor, table games such as blackjack or poker; slot
machines, video poker/blackjack/keno machines or similar devices; or
bingo hall Notwithstanding the foregoing, this prohibition shall not be
applicable to government sponsored gambling activities, the sale of
government sponsored lottery or gaming tickets or charitable gambling
activities, so long as such activities are incidental to the business operation
being conducted by the Occupant
3 3 No Burdened Owner or Occupant shall use, or permit the use of, Hazardous Materials
on, about, under or in the Burdened Property, except for sale, dispensing or use of Hazardous
Materials in the ordinary course of its usual business operations conducted thereon, and any such
use shall at all times be in compliance with all Environmental Laws Each Burdened Owner or
Occupant agrees to defend, protect, indemnify and hold harmless each other from and against all
claims or demands, including any action or proceeding brought thereon, and all costs, losses,
expenses and liabilities of any land relating thereto, including but not limited to costs of
investigation, remedial of removal response, and reasonable attorneys' fees and cost of suit,
ansing out of or resulting from any Hazardous Material used or permitted to be used by such
Burdened Ownei or Occupant, whether or not in the ordinary course of business
For the purpose of this Section 3 3, the term (i) "Hazardous Materials" shall mean and
refer to the following. petroleum products and fractions thereof, asbestos, asbestos containing
materials, area formaldehyde, polychlonnated biphenyls, radioactive materials and all other
dangerous, toxic or hazardous pollutants, contaminants, chemicals, materials, substances and
wastes listed or identified in, or regulated by, any Environmental Law, and (n) "Environmental
Laws" shall mean and refer to the following all federal, state, county, municipal, local and other
statutes, laws, ordinances and regulations which relate to or deal with human health or the
environment, all as may be amended from time to time
3.4 This Declaration is not intended to, and does not, create or impose any obligation on a
Burdened Owner to operate, continuously operate, or cause to be operated a business or any
particular business at the Burdened Property
Section 4 Imposition of Additional Covenants not Applicable. In addition to the
covenants and conditions in Section 3 herein, Declarant hereby declares and imposes upon the
Burdened Property, except Lot 1, Block 1, Andover Marketplace East, Anoka County, Minnesota
("Lot 1, Block 1") the following covenants, restrictions and conditions*
4 1 1 The Burdened Property, with the exception of Lot 1, Block 1, shall be
further restricted as follows
Dalt 183023817
(A) No more than five thousand (5,000) square feet of Floor Area within any
Building devoted to the sale of toys shall be permitted
(B) No drug store exceeding ten thousand (10,000) square feet of Floor Area
shall be permitted, and no store of any size selling or offering for sale any
pharmaceutical products requiring the services of a licensed pharmacist
shall be permitted, except on that portion of the Burdened Property legally
described as Lot 1, Block 2, Andover Marketplace East, Anoka County,
Minnesota
(C) No pet shop shall be located thereon within Five Hundred (500) feet of Lot
1, Block 1
(D) No gas/service station and/or other facility that dispenses gasoline, diesel
or other petroleum products as fuel shall be permitted within Five Hundred
(500) feet of Lot 1, Block 1 (except that sales of motor oil and other
automobile products in containers of typical size for ordinary consumer
use shall be permitted)
(E) No liquor store offering off -premises sale of alcoholic beverages within
Five Hundred (500) feet of Lot 1, Block 1 shall be permitted, nor shall any
liquor store offering off -premises sale of alcoholic beverages exceeding
16,000 square feet of Floor Area be permitted
The names "Target", "Crreatland", "SuperTarget" or any variation using the name "Target" shall
not be used to identify any portion of the Burdened Property except Lot 1, Block 1, or any
business or trade conducted on the Burdened Property except for such business or trade on Lot 1,
Block 1
Section 5 Duration The covenants, restrictions and conditions created herein
(collectively, the "restrictions") shall run with and bind the Burdened Property, provided that the
foregoing shall terminate and be of no further force and effect thirty (30) years from the date hereof
unless, at such time, any portion of the Burdened Property is being used for retail purposes (or is
not being so used due to construction, casualty, repair, remodeling or refixturing) in which event
the restrictions shall continue to remain in full force and effect for successive ten (10) year periods
until such time as such use requirement is no longer satisfied In no event shall the restrictions
created herein remain in effect for more than sixty (60) years from the date hereof
Section 6 Enforcement
6 1 Remedies Any Burdened Owner shall have the right to enforce, by any proceeding at
law or in equity, all covenants, restrictions and conditions now or hereafter imposed by the
provision of the covenants against the Burdened Property and the owners of the Burdened
Property. In addition to all other remedies available at law or in equity, any Burdened Owner
may apply for and obtain from court of competent jurisdiction equitable relief in the way of a
Dock 1830238\7
temporary restraining order, temporary and permanent injunction and/or a decree of specific
performance prohibiting such activities in violation of the provisions hereof and/or enforcing the
terms of this Declaiation
6 2 Costs of Enforcement If any party brings an action against any other owner under
this Declaration, the prevailing party in the action shall be entitled to collect all of its costs of the
action, including reasonable attorneys' fees, from the non -prevailing party
6 3 Waiver of Right to Trial by Jury Each party hereby waives, to the fullest extent
permitted by law, the right to trial by ,jury in any action, proceeding or counterclaim filed by
either party, whether in contract, tort or otherwise, relating directly or indirectly to this
Declaration
6.4 No Waiver The failure of any Burdened Owner to insist upon strict performance of
any of the terms, covenants or conditions hereof shall not be deemed a waiver of any rights or
remedies which that party may have hereunder, at law or in equity, and shall not be deemed a
waiver of any subsequent breach or default in any of such terms, covenants or conditions
Section 7 Severability Invalidation of any of the provisions herein by judgment or court
order shall not affect any of the other provisions which shall remain in full force and effect, until
the date of expiration hereunder
Section 8 Reformation. If any provision contained in this Declaration is or would be
deemed invalid under or would otherwise violate applicable law, such provision shall ipso facto
be automatically reformed sufficient to comply with applicable law and such reformed provision
shall be enforceable to the fullest extent permitted by applicable law
Section 9 No Merger Neither this Declaration nor the other rights created herein shall
terminate or merge by reason of common ownership of any portion of the Burdened Property
Section 10 Amendment and Termination This Declaration may be amended or
terminated only by written agreement signed by all of the then Burdened Owners
Section I 1 Notices All notices, demands and requests (collectively, the "notice")
required or pemutted to be given under this Declaration must be in writing and shall be deemed
to have been given as of the date such notice is (i) delivered to the intended recipient, (u)
delivered to the then designated address of the intended recipient, (iii) rejected at the then
designated address of the intended recipient, provided such notice was sent prepaid, or (iv) sent
by nationally recognized overnight courser or by United States certified mail, return receipt
requested, postage prepaid and addressed to the then -designated address of the intended recipient
The initial addresses of the parties shall be
Burdened Owner Andover Economic Development Authority
1685 Crosstown Boulevard
Andover, Minnesota 55304
Upon at least ten (10) days' prior written notice, either party shall have the right to change its
address to any other address within the United States of America
IPM ;131 -*I13091 -I W
Section 12 Not a Public Dedication Nothing herein contained shall be deemed to be a
gift or dedication of any portion of the Burdened Property or of any tract or portion thereof to the
general public, or for any public use or purpose whatsoever Except as herein specifically
provided, no right, privileges or immunities of any party hereto shall inure to the benefit of any
third -party person, nor shall any third -party person be deemed to be a beneficiary of any of the
provisions contained herein.
Section 13 Miscellaneous. This Agreement shall be governed by and construed in
accordance with the laws of the State or Commonwealth in which the Burdened Property is
located This Agreement shall not be construed strictly for or against the Burdened Owner. This
Agreement may be signed in counterparts, each of which shall be deemed an original and all of
which when taken together shall constitute one instrument
[SIGNATURE PAGE FOLLOWS]
Doc# 1830238\7
IN WITNESS WHEREOF, the undersigned has caused this Declaration to be executed as
of the day and year first above written
Andover Economic Development
Authority
Declarant
By
Name Michael R Gamache
Title President
By
Name hn Erar
Title Executive Director
STATE OF MINNESOTA )
)ss
COUNTY OF ANOKA )
The foregoing instrument was acknowledged before me this /4- day of December, 2003
by Michael R Gamache and John Erar, the President and Executive Director of the Andover
Economic Development Authority, a body corporate and politic under the laws of Minnesota, on
behalf of the authority
'144ary Public
This Instrument was Prepared By- u -,y
Bama Guzy &Steffen, Ltd anti MICHELLED31.2DOS
200 Coon Rapids Boulevard �' PUBLIC BLIC
OM
�� nay COM
Suite 400 P,RES JA
mu s
Minneapolis, MN 55433-8024
222031_1
Doc# 1830238\6
EXHIBIT A
Legal Description of Burdened Property
Lot 1, Block 1, Lot 2, Block 1, Lot 1, Block 2, and Outlots A, B, C, D and E, Andover
Marketplace East, according to the recorded plat thereof, Anoka County, Minnesota
Dod 1830238\6
Receipt
Date/rime 12
Doc Order
RecardabUity
Filing Fees
'7 ❑ Tax Lien/Release
�j
❑ Transfer
❑ Division
❑ Status
❑ New legal Description
❑ GAC
❑ Deferred Specials
Well Cert Recd No Change
❑ Certified Copy(
❑ Non-standard Document 99 L�
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DODUMENTNO. 455182 0 TORRENS
ANOKA COUNTY MINNESOTA
I HEREBY CERTIFY THAT THE WITHIN INSTRUMENT WAS FILED IN THIS OFFICE
FORRECORDONDEC 23 2003
AT 2: 15 PM AND WAS DULY RECORDED
FEES AND TAXES IN THE AMOUNT OF $42.00 PAID
RECEIPT NO 2003177940
MAUREEN J DEV/NE
ANOKA COUNTY PROPERTY TAX ADMIN/STRATOR/RECOROERIRED/STRAR OF TRIES
BY GKE
DEPUTY PROPERTY TAX ADMINISTRATORIRECORDER/REe/STRAR OF TITLES
6
.AAC I T Y 0 FNDOVE
✓a �� _
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 Direc
FROM: Joe Janish, Community Developme rector
SUBJECT: Review Commercial Project Activity
DATE: December 15, 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 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. Staff is waiting on the as -
built of the improvements.
• Hearth Development, 1714 Bunker Lake Blvd. NW — Two tenant spaces remain to be leased.
Staff was asked if a Liquor Store could be 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. 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 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.
• Casey's, 15246 Bluebird St. NW —A permit was submitted for a full commercial kitchen and
interior remodeling. Work has been completed and kitchen service is anticipated before the
end of the year.
• 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 sold the parcel.
• Train for Andover Station — A few EDA Members had spoken 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 lot as well. This lot is owned by the association.
• 7" 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. It is expected an administrative land split will occur to
allow for the sale of the southern parcel to a home builder (Capstone Homes has submitted a sketch
plan for review by the P&Z and City Council). Staff also continues to have discussions with Anoka
County Highway Department related to access along Bunker Lake Boulevard. 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 was done, Council awarded the demo quote to PGM,
Inc. After permits were secured the demolition was completed in early December.
• 2526 138" Avenue — Asbestos removal was done, Council awarded the demo quote to PGM, Inc.
After permits were secured the demolition was completed in early December.
• Holasek Property (near City Hall) — This parcel has become relatively silent.
• COVH)-19 — The city has set up a page on the City of Andover website with several resources for
businesses and residents. The City of Andover has distributed its COVID-19 Funds.
• 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.