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HomeMy WebLinkAboutEDA - July 20, 20211685 CROSSTOWN BOULEVARD N.W.. ANDOVER, MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923 • WWW.ANDOVERMN.GOV ECONOMIC DEVELOPMENT AUTHORITY MEETING July 20, 2021 6:00 p.m. Council Chambers 1. Call to Order— 6:00 p.m. 2. Approval of Minutes (June 15, 2021 Regular) 3. Home Improvement Program Update — Planning 4. Redevelopment Updates/Discussion (Verbal) —Administration 5. Review Commercial Project Activity - Planning 6. Other Business 7. Adjournment Some or all members of the Andover EDA may participate in the July 20, 2021, EDA meeting by telephone or video conference rather than by being personally present at the EDA'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. 1685 CROSSTOWN BOULEVARD N.W.. ANDOVER, MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923 . WWW.ANDOVERMN.GOV TO: Economic Development Autho: CC: Jim Dickinson, City Administr, FROM: Michelle Harmer, Deputy City SUBJECT: Approval of Minutes DATE: July 20, 2021 INTRODUCTION The following minutes were provided by Staff reviewed by Administration and submitted for EDA approval: June 15, 2021 Regular DISCUSSION The minutes are attached for your review. ACTION REQUIRED The EDA is requested to approve the above minutes. (Resppec�tfully submitted, Michelle Harmer Deputy City Clerk Attach: Minutes a. 1 2 3 4 5 6 ANDOVER ECONOMIC DEVELOPMENTAUTHORITYMEETING- 7 JUNE 15, 2021- MINUTES 8 9 10 The Meeting of the Andover Economic Development Authority was called to order by President 11 Sheri Bukkila June 15, 2021, 6:03 p.m., at the Andover City Hall x1685 Crosstown Boulevard NW, 12 Andover, Minnesota. 13 14 Present: Commissioners Jamie Barthel, Ted Butler, Valerie Holthus, Randy 15 Nelson, Kari Kafer, and Greg Mueller (remote) 16 17 Absent: None 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 April 20, 2021, Regular Meeting: Correct as written. 27 28 Motion by Kafer, Seconded by Nelson, to approve the minutes as written. Motion taken by roll 29 call: 30 31 Commissioner Barthel: aye 32 Commissioner Butler: aye 33 CommissionersHolthus: aye 34 Commissioner Kafer: aye 35 Commissioner Mueller: aye 36 Commissioner Nelson::, aye 37 President Bukkila: aye 38 39 Motion carried unanimously. 40 41 HOME IMPROVEMENT PROGRAM UPDATE 42 43 Mr. Janish stated the EDA has discussed this item at several previous meetings. He explained the 44 map in the packet shows properties in the City valued at $225,000 or less. Staff is looking for 45 direction from the EDA on a couple of items: 46 47 • The project cost would have to be between $2,000 - $20,000. With the grant paying 25% 48 of the project cost. Andover Economic Development Authority Meeting Minutes —June 15, 2021 Page 2 1 • Will rental properties be included in the program. 2 3 Mr. Janish continued depending on the funding there may have to be income restrictions. Mr. 4 Janish reviewed the draft grant application and presented a list of name suggestions for the 5 program. 6 7 Commissioner Holthus feels the property applying for the grant should be owner occupied. 8 Commissioner Nelson and Commissioner Kafer agree. 9 10 Commissioner Barthel stated he is in favor of offering the program to properties not owner 11 occupied. 12 13 Commissioner Mueller stated he feels initially the program should be for owner occupied 14 properties and depending on the program interest it could expand to rental properties not owner 15 occupied. 16 17 President Bukkila indicated a majority of the EDA is in favor to have the program available to 18 owner occupied/homestead properties only. 19 20 Commissioner Holthus indicated she would like the map to be revised to remove park properties 21 and vacant lots. She asked how many properties are at or below the $225,000 home value. Mr. 22 Janish replied 177 properties. 23 24 Commissioner Butler suggested on the application an example be provided showing the 25 breakdown of how a project will be paid. 26 27 Commissioner Kafer indicated she is in favor of offering the landscape consultation to the 28 applicant. Commissioners Butler and Mueller are also in favor. She asked staff to get quotes for 29 a flat rate consultation from landscape businesses. 30 31 President Bukkila stated nurseries may offer a free consultation if you purchase the items from 32 them. She feels the City should not pay for the landscape consultation. Commissioner Barthel 33 agrees, indicating that is another aspect of the program staff would have to manage. 34 35 President Bukkila asked about requiring the applicant to have lived at the property for a certain 36 length of time to prevent house flippers from applying. Mr. Janish stated that could be a 37 requirement but typically you do not see house flippers living in the house, so it would be non - 38 homestead which would not qualify anyway. 39 40 Commissioner Kafer stated the end goal is to increase curb appeal and home value, so does it really 41 matter if it is a house flipper. President Bukkila feels house flipping is a business and asked is it 42 fair to allow them to apply for the program when the business community cannot. Commissioner 43 Kafer replied she does not know if you can make the program completely fair for everyone. 44 45 Commissioner Butler indicated he agrees with Commissioner Kafer and pointed out by requiring Andover Economic Development Authority Meeting Minutes—June 15, 2021 Page 3 1 a length of time of living at the property you are excluding new residents from the program who 2 may plan on living at the property for a length a time. 4 Commissioner Barthel stated most house flippers only hold on to a property less than six months 5 and they do not homestead the property. 6 7 The list of program names was discussed. 9 The EDA majority recommended "Andover Home Improvement Program". 10 11 Mr. Dickinson indicated staff will "fine tune" the program and bring it back at a future meeting. 12 13 BUNKER LAKE BOULEVARD MEDL4N 14 15 Mr. Berkowitz stated the median on Bunker Lake currently has prairie grass and some plantings. 16 This median is very difficult to maintain. The Anoka County Highway Department requires a lane 17 shutdown each time work is done in the median. A shutdown cost the City $2,500 each time. 18 19 Mr. Berkowitz indicated the EDA has the following options for the median: 20 21 • Leave the median in its current state. 22 • Add more plantings. 23 • Remove all vegetation and put concrete in. 24 25 Staff is looking for direction from the EDA. 26 27 Commissioner Holthus stated she does not like the prairie grass, the statement it makes is that the 28 City is not taking care of the median. 29 30 Commissioner Nelson asked how much the concrete will cost. Mr. Berkowitz answered 31 approximately $150,000 which is drastically reduced from a previous quote some years ago. 32 33 Commissioner Barthel stated he is in favor of concrete. Commissioner Mueller agreed. 34 35 Commissioner Butler stated he likes plantings in a median but not necessarily prairie grass. 36 37 Commissioner Holthus asked what the cost would be for stamped concrete. Mr. Berkowitz 38 answered the cost would increase by approximately 30%. 39 40 Commissioner Kafer asked about the funding for the concrete. Mr. Dickinson answered the project 41 would be put into the 2022-2026 CIP and funding determined at that time. 42 43 The EDA direction for staff is for concrete and to put the project into the 2022-2026 CIP. 44 45 Andover Economic Development Authority Meeting Minutes—June 15, 2021 Page 4 ENTRANCE MONUMENT SIGN DISCUSSION (BUNKER LAKE BOULEVARD AND 7TH AVENUE) 4 Mr. Janish stated back in 2019 the EDA had a discussion for a monument sign on 7"' Avenue and 5 Bunker Lake Boulevard. Does the EDA want a standard monument sign or a message board. He 6 stated a standard monument sign would be approximately $32,000 and a message board would be 7 approximately $44,000. 9 The EDA direction is for a standard monument sign. 10 11 REDEVELOPMENT UPDATES 12 13 Mr. Dickinson reviewed the EDA owned properties in the redevelopment area. Staff was 14 approached by the property owner of 2461 Bunker Lake Boulevard and he is currently in 15 negotiations. Staff is looking for direction from the EDA if they should move forward with 16 negotiations. The EDA directed staff to move forward with negotiations. 17 18 Mr. Dickinson stated the parcel located on Crosstown Drive directly behind 2619 1381' Avenue 19 and owned by the Anoka County Highway Department, the City contacted Anoka County with 20 interest in purchasing the parcel. Anoka County staff recommended turning the parcel over to 21 the City for economic development with no monetary transaction. The Anoka County 22 Transportation Committee had their committee meeting and came back to the City with the 23 assessor's value for the property of $57,200. Mr. Dickinson stated a majority of the property is 24 wetland and floodplain, he calculated the value of the property to be around $8,000. 25 26 REVIEW COMMERCIAL PROJECTACTIVITY 27 28 HolasekProperty —Mr. Dickinson indicated staff has been approached by multi -family developers 29 interested in the property. Staff is looking for EDA direction, would the EDA be interested in 30 partial multi -family or entirely multi -family, which would require a Comprehensive Plan 31 amendment. Mr. Dickinson stated the developers have indicated luxury apartments on the 32 property. There have been no recent commercial prospects. 33 34 The EDA stated they have no interest in the entire parcel as multi -family. 35 36 OTHER BUSINESS 37 38 There was none. 39 40 ADJOURNMENT 41 42 Motion by Holthus, Seconded by Barthel to adjourn. Motion taken by roll call: 43 44 Commissioner Barthel: aye 45 Commissioner Butler: aye Andover Economic Development Authority Meeting Minutes — June 15, 2021 Page 5 1 Commissioner Holthus: aye 2 Commissioner Kafer: aye 3 Commissioner Mueller: aye 4 Commissioner Nelson: aye 5 President Bukkila: aye 6 7 Motion carried unanimously. The meeting adjourned at 7:00 p.m 9 Respectfully submitted, 10 11 12 Michelle Hartner, Recording Secretary 13 AN66W � (D 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100 FAX (763) 755-8923 • WWW.ANDOVERMN.GOV TO: President and Commissioners CC: Jim Dickinson, Executive Director FROM: Joe Janish, Community Development Director SUBJECT: Discussion of Possible Residential Improvement Grants DATE: July 20, 2021 INTRODUCTION During the May 19, 2020 EDA meeting, June 16, 2020, February 16, 2021, April 20, 2021, and June 15, 2021 members discussed the possibility of a Residential Improvement Loan/Grant Program. EDA members reviewed the Home for Generations II, and Front Door Program offered by the City of Coon Rapids. Direction provided by the EDA was to look at a smaller version of a Front Door Program that Coon Rapids provides. The attached map has been modified to reflect the input from the EDA, based on valuations and excluding lots owned by the City of Andover and Anoka County. Staff will still need to continue to review lots based on if structures exist or not. Please keep in mind that the map itself would not be part of the application but is intended to help illustrate properties that may qualify for the program. Attached Commissioners will find the suggested paper format for the City of Andover. Based upon past conversations staff has developed the "Andover Program". Some highlights of the program include: • The project cost would have to be between $2,000 to $20,000. With the property owner paying 75% of costs and the grant covering 25%. • Depending on program funding, income limits may be needed. • Qualifying properties would be owner occupied. • The EDA majority prefers "Andover Home Improvement Program". • Removal of landscape consultation, typically nurseries will provide this information. Re ectfull bmilt d, J Janis Community Development Director Attached: Andover Paper Application V C I T t� Y N D 06 � ^ 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100 FAX (763) 755-8923 • WWW.ANDOVERMN.GOV Andover Home Improvement Grant Program Applications are accepted until XXXX, XXXX, 2021. Grant recipients may be chosen by lottery on XXXX, XXXX, 2021. Due to evolving public health recommendations surrounding the COVID-19 pandemic, the Andover Home Improvement Program lottery event will occur either in person at Andover City Hall, or virtually on XXXX, XXXX, 2021. A decision regarding the final event style will be made by XXXX, XXXX, 2021 and will be communicated on the City website, and potentially City social media platforms. The intent of the Andover Home Improvement Grant Program is to pay aop rtion of project costs to Andover property owners who will make certain exterior improvements to the front (street side) of their home, increasing its curb appeal which benefits the entire community. There are no income limits to participate in this program. Grant Grant amounts awarded will be between $500 - $5,000. Homeowners must pay at least $1,500 (75% of project costs) of their own funds to be eligible to receive the minimum grant amount of $500 from the City. Grant dollars do not need to be repaid. Grants will equal 25% of the applicant's individual project amounts depending upon the scope of work. If the scope of work includes qualifying projects from both categories, then the grant amount will be determined individually in each category. The combined project amount must be $2,000 or more to be eligible. Cost of tools will not be eligible for grant dollars. Eligibility Requirements • 1 to 4 unit buildings, owner -occupied, single family, townhome, twin home, condo. • Homestead status with Anoka County Property Records. • Current on Anoka County property taxes. • Property value is less than $225,000 based on Anoka County estimated property value. • Projects must include at least one item from the Beautification Project list. • Projects must be visible from the street in front of the house. • None of these exterior projects are covered, or will be covered, by an insurance claim. • Work cannot begin until the required paperwork has been submitted to the City and a Grant Award Certificate has been provided to the homeowner. Beautification Projects (25% grant) • Front door, storm door, and/or garage door • Sidelight windows by front door • Columns at front door • Covered front porch • Brick, stone, or shakes • Alter roofline on front of house • Permanent landscaping (includes tree trimming, removal and replacement of overgrown and/or dead items, planting new trees, shrubs, plants and/or flowers) $250 minimum. • Driveway, sidewalk (repair or replace) • Window boxes, shutters (add or replace) • Screening of utility boxes and/or garbage and recycling cans • Fence (add, repair, or replace) Basic Projects (25% grant) • Roof • Siding • Painting • Soffit • Facia • Trim • Gutters • Windows • Chimney repair, tuck -pointing, repointing • Deck - front or side yard - visible from front of house (repair or replace) • Porch - front or side yard - visible from front of house (repair or replace) • Retaining wall (repair or replace) Application • one application per address EXAMPLE OF PROJECT: Fence Project TOTAL $4,000. Homeowner Pays $3,000. City Grant Contributes $1,000. DRAFT ANDOVER PROGRAM 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100 FAX (763) 755-8923 • WWW.ANDOVERMN.GOV ANDOVER HOME IMPROVEMENT PROGRAM GRANT APPLICATION DEADLINE TO APPLY: XXX, 2021. The intent of the Andover Home Improvement Program is to pay a portion of project costs to Andover property owners who will make certain exterior improvements to the front (street side) of their home, increasing its curb appeal which benefits the entire community. There are no income limits to participate in this program. 1. Property Type*: Single Family Home. _ Townhome. Twin Home/Duplex. Condo. Multi -Unit Building (up to 4 units). 2. How many units in the building if Multi -Unit Building: 3. Is your property part of a Home Owner's Association: Please provide a copy of the Association Bylaws showing that you are responsible for the project costs* 4. I understand that I will need to spend at least $1,500 (75% of project costs) of my own funds to be eligible to receive the minimum grant amount of $500 from the City of Andover. 5. I understand the City's grant dollars will only pay a portion of the cost of the exterior improvements. 6. Eligibility Requirements (check each to confirm you meet these requirements. You must meet all requirements to be eligible for this program.) The home is in Andover, MN and I own and live in the home. The home has Homestead Status with Anoka County Property Records. I am current on my Anoka County property taxes. My property value is less than $225,000 based on Anoka County estimated property value. My projects will be visible from the street in front of my house. DRAFT ANDOVER PROGRAM None of my projects are covered, or will be covered, by an insurance claim. BEAUTIFICATION PROJECTS: These projects are eligible for a 25% grant. All eligible applications must include at least one item from this beautification list. Please check at least on project that will be completed. Front door, storm door, garage door(s). Sidelight window by front door. Columns at front door. Covered front porch. Brick, stone, or shakes. Alter roofline of front of house. Permanent landscaping (tree trimming, removal and replacement of overgrown and/or dead shrubs, planting new trees, shrubs, or perennial flowers; $250 minimum). Driveway or sidewalk — concrete or asphalt (repair, replace). Window boxes, shutters (add or replace). Screening of utility boxes and/or garbage and recycling containers. Fence (add, repair, or replace). BASIC PROJECTS: These projects are eligible for a 25% grant. The projects on this list are optional. Please check the projects you are considering. If any of these items marked with *** are completed on the front of the house, then the cost of the project to be completed around all sides of the house would be eligible. Roof***. Siding***. Painting***. Soffit***. Fascia***. Gutters***. Windows***. Chimney repair, tuck -pointing, repointing. Deck — front or side yard— visible from the front of house (repair or replace). Porch — front or side yard— visible from the front of house (repair or replace). DRAFT ANDOVER PROGRAM Retaining wall (repair or replace). 7. First and Last Name(s) of Property Owner(s)* 8. Street Address*: 9. Phone Number: 10. Email Address: 11. Alternate Email Address: CITY, STATE, ZIP Alternate Phone Number: TO REMAIN ELIGIBLE FOR An ANDOVER HOME IMPROVEMENT PROGRAM GRANT AWARD, you cannot start your project until you receive a Grant Award Certificate from the City of Andover. Collecting bids from contractors is encouraged, but actual work on the projects cannot start until receiving a Grant Award from the City, which may be passed on lottery results in XXXX, 2021. 12. GOVERNMENT DATA PRACTICES ACT — TENNESSEN WARNING* The data you supply on this form will be used to process this application for which you are applying. You are not legally required to provide this data, but the City will be unable to proceed without it. The data will constitute a public record. I acknowledgement the Government Data Practices Act - Tennessen Warning*: 13. (left for formatting) Signature Signature DRAFT ANDOVER PROGRAM • 1•"�_—. ISIST AYE -••—•__._________._.________..__7.._________ ANPOV.,16'ER • m � . N or 3 -167tH A'v'[ =, , T I r � a S T*M`A': E •r, • I . m- � ■ i 04 ?'HAVElip: 157(HA4i a ' rz �QpSS. ■ i` . q• n 7 9 ■ FSO I .;49TH AVE ■ '1 I MIND r — . I , � •• �°i IL I Y ' COURTYRO� Combined Land and Improvement Values • � � ' � •��• • � .,- I - Under S200.00(I li 71 - S200000 $225000 1261 ' �S ' 7 • BUNKER LAKE BLVD • • r ■ 10) CITY OF ,�, IN 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 Director FROM: Joe Janish, Community DevelopmeND!or""� SUBJECT: Review Commercial Project Activity DATE: July 20, 2021 INTRODUCTION Staff will provide a progress report on ongoing commercial project activity at the meeting. ANDOVER COMMERCIAL PROJECTS 166 • Upper Midwest Athletic Construction –As -built was submitted and verified. This project is complete. • Hearth Development, 1714 Bunker Lake Blvd. NW – Two tenant spaces remain to be leased. • Clock Tower Commons –The final building pad location interest is relatively low at this point. • Andover High School, 2018 Additions and Renovations – Activities continue to wrap up the project. • 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. The owner of the 10 acre parcel had again contacted city staff asking questions about the roadway. The Fire Department, Building and Planning had a discussion with a business owner about adding a new building or two at their property. Staff occasionally receives a call from interested parties. • Andover Community Center, 15200 Hanson Blvd. NW – All areas are occupied, punch lists and final inspections are anticipated soon. • YMCA Expansion – Only a few punchlist items remain, including roof drain and overflow roof drain adjustments. • ABC Mini -Storage (self -storage) – City Council approved a CUP for additional Mini -storage on a portion of this lot. The buyers of the property had intended to expand the mini -storage. The Building Department is working with the applicant on structural drawings for review. Water, Sewer and site prep is completed. • Crooked Lake Elementary, Energy Management System Phase H, 2939 Bunker Lake Blvd NW—A rooftop energy management system is being installed in three phases at the school. The 2"d phase is underway and ATS&R has submitted an acceptable plan for rooftop equipment • Hanson Builders, 13432 Hanson Blvd NW – A second floor sales area has been constructed including an elevator and restrooms. The first floor is also being remodeled, and the interior finishes are nearly complete. • Restaurants/Fast Food — Currently staff is aware of companies continuing to look for land to locate in Andover. • TCF Site — Andover Station 2016 LLC has acquired the property. The new owner has the list of potential uses allowed. At this time there are no specific plans for what will be constructed. Staff suggested a restaurant or fast food. • 7`h Avenue and Bunker — Staff continues to work with Quest Development and CenterPoint Energy on acquiring an easement through the CenterPoint Property. CenterPoint has agreed to an alignment. Staff and City Council has meet with some apartment developers for this property. Capstone is underway with development on the southern property. Staff is expecting a sketch plan for a PUD on the north side of Bunker Lake Blvd. • Holasek Property (near City Hall) — Staff has been in contact with another multi -family housing developer on this particular property. • COVID-19 —The City of Andover has distributed its COVID-19 Funds. Anoka County has another program available based on a first come first serve basis provided criteria is met. • 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. Several sites are being reviewed and looked at. In 2020 we had 139 new housing starts. We have had around 75 residential permits issued so far this year. • Minty Nails — The Anoka Area Chamber of Commerce is expected to hold a ribbon cutting ceremony on July 21" at 10. The address is 1574 154'h Avenue NW, Ste 1078. • 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.