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HomeMy WebLinkAboutSeptember 21, 2004 ü 0 . ; r--'\ ~ R@ \. ..J . ..... NDOVË' . ,."""~ 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 September 21,2004 - 6:00 p.m. Council Chambers AGENDA 1. Call to Order 2. Approval of Minutes - August 17,2004 and September 7,2004 () 3. Update on Proposed TIF District 1-4 - Planning/Administration-Finance 4. Discuss AndoverStatiolÌ North Improvements - Planning 5. Discuss Andover Station North Residential Land Sale - Planning 6. Discuss Andover Station North Marketing Contract - Planning 7. Update on Andover Station South - Planning/Admin/Engineering 8. Other Business 9. Adjourn i (J C I T Y o F QV'v'lt-v\.clQ~l NDOVE ID~ 5' -6'{ r-\ \. --....J 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923 . WWW.CJ.ANDOVER.MN.US Andover Economic Development Authority Meeting September 21, 2004 - Minutes A meeting of the Andover Economic Development Authority was called to order by President Gamache at 6:00 p.m., Tuesday, September 21,2004 at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. Commissioners Present: Don Jacobson, Mike Knight, Bob Nowak, Ken Orttel, Julie Trude Commissioners Absent: Fred Larsen, Ed Schultz Also Present: Jim Dickinson, Executive Director Dave Berkowitz, City Engineer Will Neumeister, Community Development Director Others 0 AGENDA APPROVAL Add Resolution to Item #3, Update on Proposed TIF District 1-4; add revised Letter of Intent to Item #5, Discuss Andover Station North Residential Land Sale. Motion by Trude, seconded by Jacobson to amend the agenda. Motion carried unanimously. APPROVAL OF MINUTES September 7, 2004 Councilmember Trude noted that on Page 2 it states that Doug Hanson had been looking.... The name should be Dean Hanson. August 17,2004 Councilmember Trude stated on Page 5, Verbal Update on Andover Station, the name Leash should be Liesch. Motion by Trude, seconded by Jacobson to approve the September 7,2004 and August 0 17,2004 minutes as amended. Motion carried unanimously. u 0 ,~ Andover Economic Development Authority Meeting September 21, 2004 - Minutes \. __J Page 2 UPDATE ON PROPOSED TIF DISTRICT NO. 1-4 Mr. Dickinson explained that there have been slight changes in the size of the district. One parcel on the far easterly edge of the proposed district could not be included. All of the other parcels were able to be included based on the most recent inspections. After the EDA approves the resolution, the City Council also needs to approve a resolution to establish the district. Motion by Knight, seconded by Trude to adopt the resolution adopting a modification to the development program for Development District No. 1 and establishing Tax Increment Financing District No. 1-4. Discussion: Commissioner Knight asked if there has been any discussion about buffering the parcel to the north. Mr. Neumeister stated that the city wants to make sure it's on record that we are going to do a good job of buffering it. A list of specific uses allowed will be compiled and a contract rezoning would enable the city to limit the uses. Commissioner Trude noted that the public needs to be told that we are just creating the district. Mr. Dickinson explained that all proposed uses would need to come back for approval. Commissioner Nowak asked what the setup cost is. Mr. Dickinson stated it 0 would be about $10,000. The Commission discussed the possibility of someone wanting retail and the fact that rezonings would be required for those uses. Motion carried unanimously. (Resolution R005-04) Commissioner Trude complimented staff on their involvement. DISCUSS ANDOVER STATION NORTH IMPROVEMENTS Mr. Neumeister explained that Bruggeman would like to develop 158 units oftownhomes on the parcel. The cost to extend Jay Street halfway is estimated at 2.2 million dollars. The purchase agreement is for 1.767 million dollars which would be paid over two years. He noted that staff is working on a couple of other potential land sales in this area. The cost for Jay Street would be covered by those sales. Staffhas discussed with Mr. Povlitzki the fact that his assessment would be about one million dollars. Great River Energy and the EDA would also have some assessments. Mr. Dickinson noted that there are some dollars from the south side that could be contributed to this parcel. Mr. Neumeister stated that if we could get commitments from some of the other people interested in the property, the project could be bid in early spring. Mr. Berkowitz noted U that the entire site would be graded at one time. 0 í '\ V ¡' --'\ EDA Meeting "-._J September 21, 2004 - Minutes Page 3 Commissioner Jacobson asked if the cost to purchase the Great River site had been figured into the total. Mr. Dickinson stated no. Great River would sell to a private party and that would avoid the cost to the city. Mr. Neumeister stated that originally there was a larger amount of square footage of light industrial but people were not willing to pay enough to underwrite the costs. There is now more retail rather than light industrial. Some could end up to be office space. Those types of developments pay more per square foot. Motion by Trude, seconded by Jacobson to authorize staff to start the feasibility study and begin the 429 process for Jay Street between Bunker Lake Boulevard and Hanson Boulevard. Discussion: Commissioner Knight asked if it would be prudent to run the sewer and water all the way now. Mr. Dickinson stated that staff wants to plan for it. Commissioner Orttel noted that we would be placing an assessment of one million dollars on someone's property who has not requested the improvements. Mr. Dickinson asked if they resist the assessment would the city be willing to defer it? Mr. Neumeister explained that Mr. Povlitzki is aware of the potential assessment and at some point he /' ' will probably be looking for a deferment. . ì j - The motion was withdrawn. Motion by Trude, seconded by Jacobson to direct staff to begin the plans for the whole Jay Street from Bunker Lake Boulevard to Hanson Boulevard. Motion carried unanimously. Mr. Berkowitz informed the Commission that so far there is about $300,000 in cleanup costs on this site and some cleanup on the south site. That cost does not include disposal. DISCUSS ANDOVER STATION NORTH RESIDENTIAL LAND SALE Mr. Neumeister noted that Bruggeman Homes has submitted a Letter of Intent to purchase approximately 17 acres for 114 housing units at a purchase price of$I,912,600. The City would grade the property and do tree removal. Mr. Neumeister asked the EDA to authorize staff to work with the attorney on a purchase agreement, which would be contingent on the change of land use and rezoning. Commissioner Jacobson noted that under seller's responsibility it says we would provide pad finish grading and asked if it is required that we do the finish grading. Mr. Berkowitz explained that it is really rough grading. F \ ) II (J í-', EDA Meeting ) September 21, 2004 - Minutes Page 4 Motion by Knight, seconded by Orttel to authorize staff to work with the city attorney to prepare a purchase agreement on the sale to Bruggeman Properties, to begin the Chapter 429 process for public improvements. Motion carried on a 5-yes, I-no (Trude) vote. ANDOVER STATION NORTH MARKETING CONTRACT Mr. Neumeister explained that Mr. Mulrooney has submitted a contract with an hourly rate that is not satisfactory to staff. Mr. Dickinson noted that the commission rate is 7% on property sold if the buyer is anyone not identified on the exclusion list. Staff would defInitely want Bruggeman excluded. Commissioner Orttel didn't think Mr. Mulrooney should be paid for something staff has already done. Mr. Neumeister felt that a non- exclusive agreement is the way to go. Concensus of the Commission was to go with a non-exclusive agreement and that Clause B needs to be rewritten. ~ 5-kt.Çf, Clti\~.x\.tlu\ \ ð - 5 -' b l\ , UPDATE ON ANDOVER STATION SOUTH j Mr. Neumeister informed the commission that there is interest in a developer building a 10,000 square foot retail building in front of Target. Twin City Federal is possibly coming back and will be in front of Festival Foods. Motion by Jacobson, seconded by Knight to adjourn. Motion carried unanimously. Meeting adjourned at 7:00 p.m. Respectfully submitted, d:L a¿¿· Vicki V olk City Clerk , 1 , --'