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HomeMy WebLinkAboutNovember 16, 2021C I T Y O F © NDOVE 1685 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 CJ © ��NDOVE ANDOVER ECONOMIC DEVELOPMENT AUTHORITY MEETING — NOVEMBER 16, 2021- MINUTES In the absence of the President and Vice President the Meeting of the Andover Economic Development Authority was called to order by Commission Secretary Jamie Barthel November 16, 2021, 6:01 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. Present: Commissioners Ted Butler, Randy Nelson, Kan Kafer, and Greg Mueller Absent:. President Sheri Bukkila Commissioner Valerie Holthus (Vice President) Also present: EDA Executive Director, Jim Dickinson Community Development Director, Joe Janish Associate Planner, Jake Griffiths APPROVAL OF MINUTES October 19, 2021, Regular Meeting: Correct as written. Motion by Kafer, Seconded by Nelson, to approve the minutes as written. Motion carried 4 ayes, 1 present (Butler) and 2 absent (Bukkila andHolthus). CONSIDER RENT INCREASE FOR REDEVELOPMENT AREA RENTALS Mr. Janish reviewed the properties acquired by the EDA and the properties where the structures have been removed. He indicated since acquiring the properties there has been one rent increase, September 2019. The tenants were given several months' notice before the increase occurred. Mr. Janish stated 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. Commissioner Mueller stated he feels the rent increase is overdue. He asked now that the rent moratorium has been lifted, what is the status of the tenants that were behind paying their rent. Mr. Janish reviewed the current status. Commissioner Nelson is also in favor of the rent increase and feels the increase is adequate. Commissioner Butler feels comfortable with the increase, the notice time frame and the capped © Andover Economic Development Authority Meeting Minutes — November 16, 2021 Page 2 amount. Commissioner Barthel supports the rent increase. Motion by Nelson, Seconded by Mueller approving the rent increase for the Redevelopment Area. Motion carried 5 ayes and 2 absent (Bukkila and Holthus). REVIEW/DISCUSS/RECOMMEND PROPOSED 2022 EDA BUDGET Mr. Dickinson stated the budget was reviewed with the EDA in July; nothing has changed since then. He continued stating one of the aspects of the EDA by-laws is that the EDA needs to annually recommend an EDA budget to the City Council. Mr. Dickinson reviewed the EDA Fund Balance. He indicated the Fund Balance is getting very low, he anticipates transferring dollars from the General Fund. The commitment was made to put concrete in the Bunker Lake Boulevard medians in 2022, the transferred funds will be used for this project. Motion by Butler, Seconded by Nelson, recommending the proposed EDA 2022 budget to the City Council. Motion carried 5 ayes and 2 absent (Bukkila and Holthus). APPROVE LMCIT LIABILITY COVERAGE Mr. Dickinson stated the League of Minnesota Cities Insurance Trust (LMCIT) has requested that participating entities annually decide whether or not to waive the statutory tort liability limits established by Minnesota Statutes 466.04. Currently the City of Andover EDA Does Not Waive the monetary limits on municipal tort liability established by Minnesota Statutes 466.04. It is his recommendation to continue with past practices. Motion by Mueller, Seconded by Nelson, to approve the LMCIT Liability Coverage and to not waive the monetary limits on tort liability established by Minnesota Statutes 466.04. Motion carried 5 ayes and 2 absent (Bukkila and Holthus). REDEVELOPMENT UPDATES Mr. Dickinson stated since the last EDA meeting staff has had two property owner contacts in the Redevelopment Area. One property is located on Bunker Lake Boulevard, the property owner is not interested in selling at this time. The other property is located on 138`h Avenue, the property owner is interested in selling. At this time the City is not interested in the property on 1381h Avenue. © Mr. Dickinson indicated the City has yet to acquire the property directly behind 2619 138' Avenue, owned by the Anoka County Highway Department. REVIEW COMMERCIAL PROJECT ACTIVITY © Andover Economic Development Authority Meeting Minutes — November 16, 2021 Page 3 Mr. Janish updated on the following: Hearth Development, 1714 Bunker Lake Boulevard — Two tenant spaces remain to be leased. Clocktower Commons, 15190 Bluebird Street — The final building pad location interest is relatively low at this point. Andover High School, 2018 Additions and Renovations, 2115 Andover Boulevard — Activities continue to wrap up the project. Interest in Hughes Industrial Park — Interest in this area comes and goes. Staff met with a property owner about expansion. 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 calls from interested parties. ABC Mini Storage/T-Squared (self -storage), 13624 Hanson Boulevard — Water, sewer and site prep is complete. The Building Department is working with the applicant on structural drawings © for review. This looks to be a spring project. Hanson Builders, 13432 Hanson Boulevard — 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 inspection for this project has been scheduled. Restaurants/Fast Food — Currently staff is aware of companies continuing to look for land to locate to in Andover. TCF Site — Andover Station 2016 LLC has acquired the property. The new owner has the list of potential uses allowed. Staff recently had a meeting with the landowner and a perspective business. The perspective business is not allowed in the General Business District, the business would need to petition for a code amendment. Staff provided the feedback from the EDA and has not heard back from the perspective business at this time. 71 Avenue and Bunker Lake Boulevard — Staff has obtained the easement from CenterPoint Energy. Staff has also met with the City of Anoka staff to discuss the traffic signal at 7`h Avenue. The Planning and Zoning Commission along with City Council has reviewed a sketch plan for the area. At this time the 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, 186 units between the two projects. The owner has also indicated they intend to plat and sell one commercial lot as they have an interested buyer. Mr. Dickinson pointed out part of the project will be the intersection on 7`h Avenue, this will be a joint project © with the City of Anoka. Holasek Property — Staff has been in contact with another multi -family housing developer on this particular property. © Andover Economic Development Authority Meeting Minutes — November 16, 2021 Page 4 Mr. Dickinson stated his understanding is this parcel is under contract. Staff has only received requests on the parcel for multi -family projects. Commissioner Barthel asked if the price is the reason all the requests have been for multi -family projects. Mr. Dickinson replied the price has come way down. The parcel is odd shaped, and the street access is not good for commercial usage. 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 the City 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. Mr. Dickinson indicated the parcel at 13901 Jay Street owned by DSTI has received a proposal for market rate apartments and commercial. He stated with the Holasek property and this property both wanting multi -family housing there may not be enough sewer capacity for both projects. One project would need to be downsized. © Commissioner Kafer asked what the property is zoned. Mr. Dickinson replied General Business. Commissioner Butler stated he is not opposed to the multi -family project; he feels the EDA needs to be sensitive on giving up prime commercial property. Commissioner Barthel agrees. Commissioner Kafer indicated she would prefer more commercial over apartments. Anoka County Sheriff's Office, 13301 Hanson Boulevard — Staff 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 continues to work with parties interested in investing in Andover and marketing all commercial sites. Staff continues to work with Anoka County Regional Economic Development (ACRED) on marketing of the community and Anoka County. OTHER BUSINESS There was none. ADJOURNMENT Motion by Butler, Seconded by Nelson to adjourn. Motion carried unanimously. The meeting © adjourned at 6:47 p.m. Respectfully submitted, Michelle Harmer, Recording Secretary