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HomeMy WebLinkAboutEDA - November 16, 20211685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100 FAX (763) 755-8923 • WWW.ANDOVERMN.GOV ECONOMIC DEVELOPMENT AUTHORITY MEETING November 16, 2021 6:00 p.m. Council Chambers 1. Call to Order — 6:00 p.m. 2. Approval of Minutes (October 19, 2021 Regular) 3. Consider Rent Increase for Redevelopment Area Rentals — Planning 4. Review/Discuss/Recommend Proposed 2022 EDA Budget—Administration 5. Approve LMCIT Liability Coverage -Administration 6. Redevelopment Updates/Discussion (Verbal) -Administration 7. Review of Commercial Project Activity - Planning 8. Other Business 9. Adjournment 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100 FAX (763) 755-8923 • WWW.ANDOVERMN.GOV TO: Economic Development Authority CC: Jim Dickinson, City Administrator FROM: Michelle Harmer, Deputy City Clerk SUBJECT: Approval of Minutes DATE: November 16, 2021 INTRODUCTION 0 The following minutes were provided by Staff reviewed by Administration and submitted for EDA approval: October 19, 2021 Regular DISCUSSION The minutes are attached for your review. ACTION REQUIRED The EDA is requested to approve the above minutes. Respectfully submitted, "I , Q G1"4 V L ---- Michelle Harmer Deputy City Clerk Attach: Minutes PA El 6 ANDOVER ECONOMICDEVELOPMENTAUTHORITYMEETING- 7 OCTOBER 19,2021 - MINUTES 9 10 The Meeting of the Andover Economic Development Authority was called to order by President 11 Sheri Bukkila October 19, 2021, 6:02 p.m., at the Andover City Hall, 1685 Crosstown Boulevard 12 NW, Andover, Minnesota. 13 14 Present: Commissioners Jamie Barthel, Valerie Holthus, Kari Kafer, and 15 Greg Mueller (arrived at 6:12 p.m.) 16 17 Absent: Commissioners Ted Butler and Randy Nelson 18 EDA Executive Director, Jim Dickinson 19 20 Also present: Community Development Director, Joe Janish 21 Public Works Director/City Engineer, Dave Berkowitz 22 23 24 APPROVAL OFMINUTES 25 26 July 20, 2021, Regular Meeting: Correct as written. 27 28 Motion by Kafer, Seconded by Barthel, to approve the minutes as written. Motion carried 4 ayes 29 and 3 absent (Butler, Mueller, and Nelson). 30 31 REDEVELOPMENT UPDATES 32 33 Mr. Janish reviewed the occupied units owned by the City. He indicated in the spring the City 34 could look at condensing the units. Mr. Janish stated there has been some exterior clean up on 35 the units and he anticipates the cleanup will be complete by winter. 36 37 REVIEW COMMERCIAL PROJECTACTIVITY 38 39 Mr. Janish updated on the following: 40 41 Hearth Development, 1714 Bunker Lake Boulevard — Two tenant spaces remain to be leased. 42 Staff was contacted by a potential tenant for an office type use. 43 44 Clocktower Commons, 15190 Bluebird Street — The final building pad location interest is 45 relatively low at this point. 46 47 Andover High School, 2018 Additions and Renovations, 2115 Andover Boulevard — Activities 48 continue to wrap up the project. The garage space will be expanded. Andover Economic Development Authority Meeting Minutes — October 19, 2021 Page 2 1 Interest in Hughes Industrial Park — Interest in this area comes and goes. Staff met with a 2 property owner about expansion. Staff reviewed the site plan process with the property owner. 3 4 ABC Mini Storage/T-Squared (self -storage), 13624 Hanson Boulevard — Water, sewer and site 5 prep is complete. The Building Department is working with the applicant on structural drawings 6 for review. This looks to be a spring project. 7 8 Hanson Builders, 13432 Hanson Boulevard — A second floor sales area has been constructed, 9 including an elevator and restrooms. The first floor is also being remodeled and the interior 10 finishes are nearly complete. 11 12 Restaurants/Fast Food — Currently staff is aware of companies continuing to look for land to 13 locate to in Andover. 14 15 TCF Site — Andover Station 2016 LLC has acquired the property. The new owner has the list of 16 potential uses allowed. Staff recently had a meeting with the landowner and a perspective 17 business. The perspective business is not allowed in General Business District, the business 18 would need to petition for a code amendment. 19 20 7" Avenue and Bunker Lake Boulevard — Staff has obtained the easement from CenterPoint 21 Energy. Staff has also met with the City of Anoka staff to discuss the traffic signal at 7h 22 Avenue. The Planning and Zoning Commission along with City Council has reviewed a sketch 23 plan for the area. At this time the commercial uses are not known. Staff is expecting an 24 application for the development in the new future. A Commercial Site Plan was submitted for 25 the apartment complex. The preliminary plat could be submitted soon. 26 27 Holasek Property — Staff has been in contact with another multi -family housing developer on 28 this particular property. The type of multi -family plan exceeds the comprehensive plan. There 29 would need to be a comprehensive plan amendment. 30 31 Housing — Developers are looking for additional land for future developments. Several 32 developers are trying to keep an inventory of lots but are having difficulty in finding locations. 33 Several sites are being reviewed and looked at. In 2020 the City had 139 new housing starts. 34 We have had around 108 residential permits issued so far this year. The number of housing 35 permits for 2022 will have a significant jump with the addition of the apartment complex and 36 senior living facility. 37 38 Anoka County Sheriff's Office, 13301 Hanson Boulevard — Staff received a Commercial Site 39 Plan (CSP) for an expansion of parking at the property. This is currently being reviewed by 40 staff. 41 42 Overall Marketing — City staff continues to work with parties interested in investing in Andover 43 and marketing all commercial sites. Staff continues to work with Anoka County Regional 44 Economic Development (ACRED) on marketing of the community and Anoka County. 45 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Andover Economic Development Authority Meeting Minutes — October 19, 2021 Page 3 Walmart, 1851 Bunker Lake Boulevard — Walmart is expected to begin remodeling of their restrooms soon. Commissioner Holthus asked about the vacant property on Round Lake Boulevard by G -Will Liquors. Mr. Janish replied the property is owned by Rademacher Companies Inc. and they have no intentions of selling the property. OTHER BUSINESS There was none. Motion by Holthus, Seconded by Barthel to adjourn. Motion carried unanimously. The meeting adjourned at 6:31 p.m. Respectfully submitted, Michelle Hartner, Recording Secretary C I T Y O F /� WOVERS 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100 FAX (763) 755-8923 • 1YPW.ANDOVERMN.GOV TO: President and Commissioners CC: Jim Dickinson, Executive FROM: Joe Janish, Community Development SUBJECT: Consider Rent Increase for Redevelopment Area Rentals DATE: November l6, 2021 INTRODUCTION The City of Andover EDA has purchased several properties within the Bunker Lake Boulevard Redevelopment Area since 2017: 2017 2557 Bunker Lake Blvd. NW 2543 Bunker Lake Blvd. NW 2526 138 s Ave NW 2018 2542 1381 Ave NW 2020 2527 Bunker Lake Blvd. NW 2511/2513 Bunker Lake Blvd. NW 2556 138' Avenue NW 2621 Bunker Lake Blvd. NW 2607 Bunker Lake Blvd. NW Since the purchase of the properties two have been demolished (2557 Bunker Lake Blvd. and 2526 138' Ave NW). The last increase for rent occurred on September 1, 2019. The Andover EDA increased rents to $865.00 per month for all units. Renters saw an increase in the range of $40-$80 per month in 2019. Staff contacted Cedar Management, Inc. who is managing two of the properties for the EDA to have a rent analysis conducted. Cedar Management provided the following comparable rents: Rents for 2 bedrooms in Mounds View: Sands Scotland Silverwood $1200 $1195 $1100 After review of the rental analysis staff is proposing an increase in rent to bring the properties into a consistent rental rate for July 1, 2022. The management company would provide notice to the renters after and if the EDA approves the increase in early January. A notice in January would allow for the tenants to have a nearly 7 month notice of the increase. All but two tenants are on a month to month lease. The intent would be to continue the month to month at the new rate and existing tenants not in a month to month status will remain at their lease rate, however when it expires and if they continue to stay they will then move to the new rate. Staff is suggesting a rent increase to $1,000.00 a month for the fourplex units. A rent increase to $1,000.00 per month would be an increase ranging from $0 to $250. Taking into account that a rent increase of $250 may be too large, staff would suggest a cap on the increase of $150.00 per month at this time. Staff is proposing a new rate for the duplex to $1,250. This would be a rent increase of $150.00 per month. Description - Location Current Rent Adjustment Proposed Rent 2511 Bunker Lk Blvd 1,100.00 +150.00 1,250.00 2527 Bunker Lk Blvd #1 11000.00 0 1,000.00 2527 Bunker Lk Blvd #2 1,000.00 0 1,000.00 2527 Bunker Lk Blvd #3 1,000.00 0 1,000.00 2542 -138th Ave #1 865.00 +135.00 1,000.00 2542 -138th Ave #4 865.00 +135.00 1,000.00* 2543 - Bunker Lk Blvd #1 865.00 +135.00 1,000.00 2556 —138th Ave #1 850.00 +150.00 1,000.00 2556 —138th Ave #2 750.00 +150.00A 900.00# 2556-138 th Ave #3 800.00 +150.00A 950.00 2556-138 th Ave #4 880.00 +120.00 1,000.00 2607 - Bunker Lk Blvd #1 785.00 +150.00A 935.00 2607 - Bunker Lk Blvd #2 960.00 +40.00 1,000.00 2607 - Bunker Lk Blvd #3 950.00 +50.00 1,000.00 2607 - Bunker Lk Blvd #4 900.00 +100.00 1,000.00 2621- Bunker Lk Blvd #5 850.00 +150.00 1,000.00 A Units that "hit' the cap increase * Receives a $15 credit for utilities so actually rent would $15 less than shown. # Is currently compensated as per original agreement with past landlord of $90 per month for being caretaker of property by management company. Staff is looking for direction from the Andover EDA related to the potential rent increase of up to $150 per month. Res lly bm' ed, Joe apish 1!16 Updated 10 hours ago Home For Rent 2505 138th Ave NW Andover, MN 55304 3 Beds I 1 Bath.........................................$1.795 1.600 Sqft 1 Floor Plan (844) 213-6214 v1 Top Amenities Dogs Allowed 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 2022 EDA Budget DATE: November 16, 2021 INTRODUCTION The EDA is requested to receive a brief presentation on the proposed 2022 Special Revenue Fund budget. DISCUSSION The Executive Director will use the attached documents as the basis for the 2022 EDA Budget presentation and to facilitate discussion: 1. EDA Special Revenue Fund Statement of Revenues, Balance 2. EDA Special Revenue Fund Budget Worksheet for 2022 3. EDA Budget Detail Worksheets ACTION REQUESTED Expenditures and Changes in Fund a presentation, discuss and recommend a proposed 2022 EDA Special Revenue Fund budget. submitted, City of Andover Special Revenue Funds Economic Development Authority Fund Statement of Revenues, Expenditures and Changes in Fund 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: Fund Balance, December 31 Change in Fund Balance $ 198,788 26,005 2,435 443 28,883 28,883 227,671 3,792 5,610 55,159 9,130 73,691 73,691 $ 153,980 $ (44,808) -23% 153,980 7,000 2,000 9,000 9,000 162,980 6,028 18,900 63,400 13,850 102,178 $ 153,980 15,000 2,000 17,000 17,000 170,980 6,028 13,650 41,500 11,850 73,028 102,178 73,028 $ 60,802 $ (93,178) -61% $ 97,952 $ (56,028) -36% $ 97,952 15,000 2,000 17,000 150,000 167,000 264,952 7,536 18,900 213,400 13,850 253,686 253,686 $ 11,266 $ (86,686) -88% Actual 1 Adopted 1 Estimate 1 Requested 1 Description 2020 2021 2021 2022 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: Fund Balance, December 31 Change in Fund Balance $ 198,788 26,005 2,435 443 28,883 28,883 227,671 3,792 5,610 55,159 9,130 73,691 73,691 $ 153,980 $ (44,808) -23% 153,980 7,000 2,000 9,000 9,000 162,980 6,028 18,900 63,400 13,850 102,178 $ 153,980 15,000 2,000 17,000 17,000 170,980 6,028 13,650 41,500 11,850 73,028 102,178 73,028 $ 60,802 $ (93,178) -61% $ 97,952 $ (56,028) -36% $ 97,952 15,000 2,000 17,000 150,000 167,000 264,952 7,536 18,900 213,400 13,850 253,686 253,686 $ 11,266 $ (86,686) -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. 2022 includes the medians along Bunker Lake Boulevard to be filled in with concrete ($150,000) through a transfer from the General Fund. 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 2022 BUDGET CITY OF ANDOVER, MINNESOTA 1111012021 CITY OF ANDOVER Budget Worksheet - 2022 EDA 2110-46500 Account Armal Actual Actual Actual Actual Budget Estimate Requested Number Description 2015 2016 2017 2018 2020 2021 2021 2022 C. Revmaes .._.. Charges for Services 54370 Tax Increment Administration F 9,181 7,249 7,003 7,096 26,006 7,000 15,000 15,000 Charges for Services 9,181 7,249 7,003 7,096 26,006 7,000 15,000 15,000 Investment Income 56910 Interest Esrsed 4,077 4,517 4,148 4,111 2,491 2,000 2,000 2,000 56920 Valuation Adjustment (217) (1,133) 176 2,120 (56) Investment Income 3,860 3,384 4,324 6,231 2,435 2,000 2,000 2,000 Miscellaneous Revenue 58100 Refunds & Reimbursements 1,478 367 177 177 443 Miscellaneous Revenue 1,478 367 177 177 443 Other Financing Sources 59100 Operating Transfers In 150,000 Other Financing Sources 150,000 Total Revenues 14,519 11,000 11,504 13,504 28,884 9,000 17,000 167,000 &xye0,011-T Salaries& Benefits 60110 Salaries- Regular 11,583 6,421 6,887 129 405 - - - 60140 Salaries - Council/Commissio 2,040 2,160 2,560 2,280 2,800 5,600 5,600 7,000 60210 FICA 851 496 528 158 197 347 347 434 60220 Medicare 214 119 131 37 46 81 81 102 60310 Health Insurance 1,569 802 739 208 241 - - - 60320 Dental Insurance 59 35 34 8 9 - - - 60330 Life Insurance 1 1 1 - - - - - 60340 Long-Tenn Disability 26 16 20 4 4 - - - 60410 PERA 949 483 500 21 31 - - - 60420 Nationwide Refinement 125 72 148 46 45 - - - 60520 Workers Comp 322 235 245 5 14 - - - 60990 Inter-City Labor Allocation Salaries& Benefits 17,739 10,840 11,793 2,896 3,792 6,028 6,028 7,536 Departmental 61005 Supplies-General 300 1,170 - 95 150 2,000 2,000 2,000 61105 R & M Supplies - General 16 - - - - - - - 61130 R&M Supplies- Landscape - - - - - 10,000 5,000 10,000 61310 Meals/Lodging 90 - 175 15 - 700 700 700 61315 Continuing Education - 305 - 295 - 1,500 1,500 1,500 61320 Annual Dues/Licenses 1,069 998 1,308 1,031 1,043 1,500 1,250 1,500 61405 Postage 144 140 140 135 2,617 1,000 1,000 1,000 61410 Transportation/Mileage 1,800 1,800 2,291 1,800 1,800 2,200 2,200 2,200 Departmental 3,419 4,413 3,914 3,371 5,610 18,900 13,650 18,900 Operating 62005 Electric 3,083 3,129 2,689 3,000 3,130 7,000 5,000 7,000 62010 Water 814 800 789 17 330 - - - 62100 Insurance 2,597 2,321 4,943 6,099 4,071 5,250 5,250 5,250 62200 Rentals - - - 2,000 - - - _ 62210 Computer Services 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 Operating 8,094 7,850 10,021 12,716 9,131 13,850 11,850 13,850 Professional Services 63005 Professional Services 3,349 3,402 4,045 2,854 2,595 5,900 4,500 5,900 63010 Contractual Services 3,257 845 28,093 39,318 20,414 53,000 35,000 203,000 63015 Attorney 234 - - - 307 2,000 500 2,000 63025 Publishing 878 890 967 992 667 2,500 1,500 2,500 63100 R & M Labor- General - - - - 1,025 - - - 63200 inspections Professional Services 7,718 5,137 33,105 43,164 25,008 63,400 41,500 213,400 Capital Outlay 65200 Buildings- 65300 Improvements 30,151 Capital Outlay 30,151 Total Expenditures 36,970 28,240 58,833 62,147 73,692 102,178 73,028 253,686 Net Increase (Decrease)in FB (22,451) (17,240) (47,329) (48,643) (44,808) (93,178) (56,028) (86,686) 1111012021 CRY OF ANDOVER Budget Worksheet - 2022 EDA Account Actual Actual Actual Actual Actual Budget Number Description 2015 2016 2017 2018 2020 2021 Fund Balance Beginning Ending 334,451 312,000 294,760 247,431 198,788 153,980 312,000 294,760 247,431 198,788 153,980 60,802 2110-46500 Estimate Requested 2021 2022 153,980 97,952 97,952 11,266 1111012021 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 2021 2022 Budget Adjustment Total 2022 Request Priority 1 through 5 1 -high : 5 -low 61005 SUPPLIES -GENERAL 2,000 2,000 paper/promotions supplies 0 0 0 0 Total 2,000 0 1 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 I 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 / 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 5,250 62210 COMPUTER SERVICES 1,600 1,600 Central systems - Server/email/imaging/etc. 0 0 0 0 Page I of2 City of Andover Budget Detail for all Object Codes (List each expense account individually with specific cost detail) Department l Cost Center: Economic Development - 2110 Object Code Explanation Amount Requested 2021 2022 Budget Adjustment Total 2022 Request Priority 1 through 5 1 -high 5 -low Total 1,600 0 1,600 63005 PROFESSIONAL SERVICES 3,500 3,500 Audit - LB 2,400 2,400 0 0 Total 5,900 0 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 Bunker Lake Blvd Concrete Median 0 150,000 150,000 Total 53,000 150,000 203,000 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 $96,150 $150,000 $246,150 Page 2 of 2 1685 CROSSTOWN BOULEVARD N.W.. ANDOVER, MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923 . WWW.ANDOVERMN.GOV TO: President and EDA Commission Members FROM: Jim Dickinson, Executive Director SUBJECT: Approve LMCIT Liability Coverage - EDA DATE: November 16, 2021 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. submitted, 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 pstechglmc.or2• 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. & 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: Position: 2 AC I T Y 0 F N D6 06 VVE9 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 Directo FROM: Joe Janish, Community Development Director SUBJECT: Review Commercial Project Activity DATE: November 16, 2021 INTRODUCTION Staff will provide a progress report on ongoing commercial project activity at the meeting. ANDOVER COMMERCL4L PROJECTS 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. • ABC Mini-Storage/T-Squared (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. • 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. The final for this project has been scheduled with the Building Department. • 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. Staff suggested a restaurant or fast food. Staff recently had a meeting with the landowner and a perspective business. Staff provided the feedback from the EDA and has not heard back from the perspective business at this time. • 7`h Avenue and Bunker — Staff has obtained the easement from CenterPoint Energy. City Staff has also met with the City Anoka staff to discuss the traffic signal at 7' Avenue. The Planning and Zoning Commission along with City Council has reviewed a sketch plan for the area. At this time the majority of commercial uses are not known. Staff has received the Rezone Request, Preliminary Plat, and Commercial Site Plans for the Apartment Complex, and Assisted Living Facility. The owner has also indicated they intend to plat and sell one commercial lot as they have an interested buyer. • Holasek Property (near City Hall) — Staff has been in contact with another multi -family housing developer on this particular property. • 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 117 residential permits issued so far this year. Staff has received many calls related to possible multi -family developments and has met with several multi -family developers recently. • Sheriffs Office — The City of Andover has received a Commercial Site Plan (CSP) for an expansion of parking at the property. This is currently being reviewed by staff. • 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.