HomeMy WebLinkAboutOctober 5, 2004
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1685 CROSSTOWN BOULEVARD N.W. . ANDOVER. MINNESOTA 55304 . (763) 755-5100
FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US
CITY OF ANDOVER
ECONOMIC DEVELOPMENT AUTHORITY
MEETING
OctoberS, 2004 - 6:00 p.m.
Council Chambers
AGENDA
1. Call to Order
2. Approval of Minutes - September 21,2004
(-~\ 3. Discuss the TlF District 1-4 Development - Finance
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4. Review Schedule/Andover Station North Development Plan/Improvements - Planning
5. Update/Andover Station North Potential Land Sales - Planning
6. Andover Station North Design Guidelines - Planning
7. Discuss Andover Station North Marketing Contract - Finance
8. Other Business
9. Adjourn
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ANDOVER ECONOMIC DEVELOPMENT AUTHORITY MEETING
OCTOBER 5, 2004 - MINUTES
A Meeting of the Andover Economic Development Authority was called to order by President Mike
Gamache, October 5,2004,6:00 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW,
Andover, Minnesota.
Present: Commissioners Don Jacobson, Mike Knight, Ken Orttel, Julie
Trude; Voting resident member Robert Nowak
Absent: Voting resident member Fred Larsen and Non-voting resident
member Edward Schultz
Also present: Executive Director, Jim Dickinson
Community Development Director, Will Neumeister
Fire Chief, Dan Winkel
City Engineer, Dave Berkowitz
Others
APPRO V AL OF MINUTES
Commissioner Trude stated they were talking with Mr. Mulrooney and the consensus was to go
ahead with the non-exclusive agreement as written and she wanted to add "by staff' to the end of
sentence.
Commissioner Trude stated staff also indicated in the minutes that they approved the feasibility study
but they decided to have staff amend the plans for Jay Street. Mr. Berkowitz stated this was brought
to the Council meeting and that was approved and the feasibility study was approved.
September 21, 2004: Correct as amended.
MOTION by Trude, Seconded by Jacobson, approval of the Minutes as written. Motion carried
unanimously.
DISCUSS ANDOVER STATION NORTH MARKETING CONTRACT
Executive Director Dickinson explained at the last meeting, the EDA directed staff to work with
Advance Resources to negotiate acceptable compensation language for a marketing contract.
Mr. Dickinson presented the Commission with marketing language to review.
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Andover Economic Development Authority Meeting
Minutes - October 5, 2004
Page 2
Commissioner Jacobson wondered in item "D", why they would give them 3.5% ofthe property
when they already have people interested in the land. Mr. Dickinson stated they have marketed
the property to them and they have come but have not made any specific conclusions on what
they would do on the site so without that, being non-exclusive, it was felt there was not a reason
to put together a marketing plan from his perspective. He stated that if they did not provide a
marketing contract, the City would not see much of a commitment from that side because there is
really no light at the end of the tunnel if they do a lot of marketing efforts.
Commissioner Jacobson stated Bruggeman Properties is already in the plans and if this were
sold, they would get 3.5%. Mr. Dickinson stated they would write this into the contract that
Bruggeman Properties would be an exclusion. He stated they could fme tune the contract to fit
their needs. He stated if they would get signed contracts between now and November first, they
could exclude those also.
Commissioner Trude wondered if it made sense to make a marketing plan that might not fit. Mr.
Dickinson stated they would look at the fine details on this to exclude any contractors signed
before November fIrst. Commissioner Jacobson stated he did not object to them making money
but it did not make sense to pay them for marketing already done.
Mr. Nowak stated he would be ok with this without item D in the plan.
Mr. Dickinson stated he is looking at an effective date of November 1 st so they can make this as
concise as needed.
Mayor Gamache wondered if City Staff could fInish these without Mr. Mulroney's help. Mr.
Dickinson stated based on the specific projects they have, that they would not be looking for
much assistance going forward on the projects they have specifics on. If they could close them,
he did not think they would need much help but if any of them would fall through they would
want some help.
Commissioner Orttel wondered if they should hold off on this.
The Commission thought this should be worked on some more and brought back for further
discussion.
DISCUSS THE TIF DISTRICT 1-4 DEVELOPMENT
Executive Director Dickinson introduced Mr. Darren Lazan, Landform Engineering, who made a
presentation to the Commission regarding Hughs Industrial Park area.
Commissioner Orttel asked if every owner will be a member of the association. Mr. Lazan stated
they are going around to each property owner to see if they want to be a member. They need a
majority in order to proceed with this.
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Andover Economic Development Authority Meeting
Minutes - October 5, 2004
Page 3
Commissioner Knight asked if each representative will have a say based on the site or acreage.
Mr. Lazan stated it will be based on the acreage.
Commissioner Knight asked what they would do with the existing pond. Mr. Lazan stated it was
questionable as to whether this was functioning as a storm pond.
Commissioner Knight wondered if the residents to the north would consider being included in
the project. Mr. Lazan stated they did not pursue it and he did not think there were any owners
interested.
Commissioner Orttel asked if this is EDA bonds and not a 429 process. Mr. Dickinson stated
this is funded through the TIF District and not a 429 process.
Commissioner Trude asked if they could use the tax increment to payoff a 429 process. Mr.
Dickinson stated if they do a 429, they have to assess at least twenty percent with the increment
coming into the project to help pay off the residual. That is a way to not have to use taxable
funds.
Commissioner Orttel asked when it says the association of owners is guaranteed the revenue
stream, how do they guarantee that. Mr. Dickinson stated if there is an increase in the increment,
they would like to be able to provide the debt service and the association would be billed because
they are running a mini sewer enterprise.
Commissioner Jacobson asked who would own this. Mr. Lazan stated this is open for discussion
but the owners at this point would want to do this as a private project.
Commissioner Jacobson wondered what would happen if an owner sells and a new owner comes
in. Mr. Lazan stated this could be recorded with the land.
Commissioner Knight wondered if the City Attorney has looked this over. Mr. Dickinson stated
if they used the 429 process, Mr. Hawkins would get involved if this is funded through the TIF
District Briggs and Morgan would get involved. Mr. Dickinson introduced Jenny Boulton from
Briggs and Morgan.
President Gamache asked if there was a back up plan if the homeowners to the east decide not to
sell. Mr. Lazan showed a site map of a smaller well design if the property owner did not sell.
Commissioner Orttel wondered if the reconstituted water would not be a viable source for rue
fighting. Fire Chief Winkel stated this would need to be looked at. He was concerned with the
amount of water for sprinkling. They would need to make sure the tank is large enough to
provide water to each of the parcels. Another concern is future additions with enough water
capacity for fire protection.
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Andover Economic Development Authority Meeting
Minutes - October 5, 2004
Page 4
Mr. Lazan stated they are more concerned to fmd users for the reconstituted water than having
enough water.
REVIEW SCHEDULE/ANDOVER STATION NORTH DEVELOPMENT
PLANHMPROVEMENTS
Community Development Director Neumeister discussed a schedule with the Commission,
which showed the work involved in getting the planned improvements and proposed
developments off the ground for Andover Station North.
Commissioner Jacobson stated the only thing missing is Pov's. He thought they need to have
something in writing to state Pov's approves of this. Mr. Neumeister stated they did discuss this
with Pov's and they are in favor. Mr. Berkowitz stated they would meet with Mr. Povlitzki and
go over this with him before the Public Hearing.
UPDATE/ANDOVER STATION NORTH POTENTIAL LAND SALES
Community Development Director Neumeister explained the plan for developing Andover
Station North depends upon land sales to be far enough along by early March 2005 to enable the
"award of a bid" for construction of Phase 1 or possibly the entire Jay Street and utilities to be
constructed on time.
Commissioner Jacobson wondered if they would have enough money with the land sales to do
the intersection on 139th. Mr. Dickinson stated they would.
Mr. Neumeister explained the sites to the Commission.
Mr. Nowak stated as this relates to item seven, site B is willing to go through with this, but they
are still willing to pay Mr. Mulrooney. Mr. Dickinson stated they would not do that with this
site.
ANDOVER STATION NORTH DESIGN GUIDELINES
Community Development Director Neumeister explained in the coming months, there will need
to be new design guidelines created for Andover Station North. The EDA needs to review the
Design Guidelines from Andover Station to determine how they may be changed to suit new land
uses that were not considered in Andover Station South.
Commissioner Orttel stated he would rather do this individually than as a blanket.
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Andover Economic Development Authority Meeting
Minutes - October 5, 2004
Page 5
OTHER BUSINESS
There was none.
Motion by Orttel, Seconded by Jacobson, to adjourn. Motion carried unanimously. The meeting
adjourned at 6:59 p.m.
Respectfully submitted,
Susan Osbeck, Recording Secretary