HomeMy WebLinkAboutAugust 17, 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
August 17,2004 - 6:00 p.m.
Council Chambers
AGENDA
1. Call to Order
2. Approval of Minutes - June 29,2004 and July 6,2004
CJ 3. Discuss Proposed TIF District 1-4/ Approve Resolution Modifying Development District
No. 1 and Tax Increment Financing Plan for TIF District 1-4 - Planning
4. Approve Andover Station North Marketing Contract - Planning
5. Discuss Andover Station North Development Plan - Planning
6. Review Request from United Properties for Use of Lot for Financial Institution-
Planning
7. Verbal Update on Andover Station - Planning
8. Other Business
9. Adjourn
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\_J 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304 . (763) 755-5100
FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US
ANDOVER ECONOMIC DEVELOPMENT AUTHORITY MEETING
AUGUST 17,2004 -MINUTES
A Meeting of the Andover Economic Development Authority was called to order by President Mike
Gamache, August 17,2004,6:03 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW,
Andover, Minnesota.
Present: Commissioners Don Jacobson, Mike Knight, Ken Orttel, Julie
Trude
Absent: Voting resident members Fred Larsen and Robert Nowak; and
Non-voting resident member Edward Schultz
Also present: Interim Executive Director, Jim Dickinson
Community Development Director, Will Neumeister
City Engineer, Dave Berkowitz
Others
APPROVAL OF MINUTES
:.) June 29, 2004: Correct as written.
July 6, 2004: Correct as written.
MOTION by Jacobson, Seconded by Orttel, approval of the Minutes as written. Motion carried
unanimously.
Commissioner Jacobson wondered why some of the members are not showing up for the
meetings. Mr. Dickinson stated they are notified every month and Mr. Nowak did tell him he
would not be able to make the meeting because he would-be out of town. He explained that Mr.
Nowak usually does come to the meetings.
Commissioner Jacobson was concerned because the EDA is a board consisting of City Council
members and residents of Andover and he felt the resident members should be at the meetings.
Commissioner Trude arrived at 6:05 p.m.
DISCUSS PROPOSED TIF DISTRICT 1-4/APPROVE RESOLUTION MODIFYING
DEVELOPMENT DISTRICT NO.1 AND TAX INCREMENT FINANCING PLAN FOR TIF
DISTRICT 1-4 ;
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;,] Interim Executive Director Dickinson stated staff held a meeting with the property owners in the
area known as Hughs Industrial Park on June 22, 2004. Five property owners were present
representing nine of the properties. Staff indicated that the process to set up the District must ;
start over because of the lack of a quorum at a Council meeting in June.
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~-) Andover Economic Development Authority Meeting
Minutes - August 17, 2004
Page 2
Mr. Neumeister reviewed information regarding the TIF District with the Commission and why
the commercial owners want the two residential properties included.
Commissioner Jacobson asked ifthis was jerry mandering to meet code. Mr. Neumeister stated
the person they have consulted asked they do not jerry mander to make this meet code.
Mr. Dickinson stated right now the property owners cannot insure their buildings for full value
because of water issues.
Commissioner Jacobson stated the residential properties do not seem to want to be included. Mr.
Dickinson stated the end residential owner does not want to be included and they are willing to
take that property out but they requested the Commission keep the other residential property in
for reasons explained.
Commissioner Jacobson asked what the other residential owner would do with the land that
would be the community septic system. Mr. Dickinson stated the owner could split the lot and
sell that portion off.
C_) Commissioner Trude stated even if the residential land is in the TIP District, they could use and
maintain their land as they want to for as long as they want but it just gives them some fmancial
options if they want to sell out. Mr. Dickinson stated this is correct. Commissioner Trude stated
this could potentially raise the land value quite a bit if it could be sub-divided as commercial or
business use.
Commissioner Jacobson asked what the difficulty was of adding them in at a later date. Mr.
Dickinson stated they could add them in the future but the difficulty is in how long they can
collect an increment on them. He stated there becomes some real criteria issues trying to attach
to that.
Commissioner Orttel stated they could still develop it but they would not get subsidy.
Commissioner Trude stated the advantage to them would to be included in the TIF District from
the beginning. Mr. Dickinson stated that is correct because they can always take them out ofthe
TIF District.
Mr. Dickinson stated they need to fine tune the numbers in order to bring accurate numbers
forward and they had to switch inspection firms. They would like to get this extended to a future
date in September.
.:_) Commissioner Jacobson asked if they need to certify by a certain date. Mr. Dickinson stated this
did not really matter at this point, it is when the value raises and they start to receive the
increment dollar that the clock starts ticking.
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0 Andover Economic Development Authority Meeting
Minutes - August 17, 2004
Page 3
Commissioner Orttel asked if the rural reserve is filled out to Constance Boulevard, there is no
sewer capacity left to go north of there. Mr. Berkowitz stated their plan through the Rural
Reserve is to oversize this to handle development to the north. Commissioner Orttel stated the
reason he asked this was because the people on the residential property felt it is probably better to
have it commercial than residential. Having it commercial, they would be able to market their
property fairly quickly at a decent price.
APPROVE ANDOVER STATION NORTH MARKETING CONTRACT
Community Development Director Neumeister stated on June 29, 2004 the EDA authorized staff
to begin working one a contract with Mr. Mike Mulrooney, Advanced Resources, to assist in
marketing Andover Station North. Staff met with Mr. Mulrooney on July 20th to review his
contract proposal and indicated the terms and conditions that he should include in the final form
of his contract for services.
Mr. Neumeister stated they have not received all of the information for this item yet and they
would like to continue this until the September EDA meeting.
C_) Commissioner Trude noted she had a correction to the EDA meeting dated June 29, 2004 on
page 2. Councilmember Knight did not inquire about a mix of housing and residential, he
inquired about a mix of housing and office. "Commissioner Knight inquired if it was possible to
provide a mix of housing and rcsidential offices along the main street."
DISCUSS ANDOVER STATION NORTH DEVELOPMENT PLAN
Community Development Director Neumeister stated on June 29, 2004 the attached colored
drawing was reviewed by the EDA so that it may be presented at the EDA Business Appreciation
Day Golf Outing on the 30th. In order to implement the vision for medium density housing for
this area, there will need to be a land use plan amendment processed through the City Planning
Commission and City Council, that is ultimately approved by Metropolitan Council.
Motion by Commissioner Orttel, Seconded by Commissioner Jacobson, to approve the land use
change.
Commissioner Jacobson asked if there is anything else that needs to be taken care of so they
could send it all in together. Mr. Neumeister stated he would rather see it done this way because
the Met Council reviewing under forty acres at a time, processes it as a minor plan amendment
0 and it can be processed within ten days. He stated he would rather not take the whole hundred
acres in at one time because it could take awhile to explain to the Met Council and screw up the
plans for Bruggeman.
Commissioner Trude asked if there is any residential zoning right now in the area. Mr.
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~J Andover Economic Development Authority Meeting
Minutes - August 17, 2004
Page 4
Neumeister stated it is all commercially zoned. The land use plan shows high density in one
small quadrant.
Commissioner Trude stated she is going to oppose this because she does not think they should
have more than ten acres because of the lack of commercial development and tax base.
Mr. Neumeister stated the Met Council is still holding them to 120 units of affordable housing
which this ten acres would have provided at 12 units per acre. This is six units per acre which is
considerably less than 12 units per acre which leaves a considerable amount of open space in a
housing type that hits their criteria for affordable.
Commissioner Orttel asked how many units are on the City land. Mr. Neumeister stated 108.
Commissioner Knight asked what the definition is for affordable. Mr. Dickinson stated it would
be between $180 to $200 thousand. These units would start at around $180.
Commissioner Jacobson thought they agreed with the Met Council to reserve affordable housing
in certain areas. Mr. Neumeister stated that if they reduce the counts in this area, they will have
() to increase them elsewhere.
Commissioner Knight asked where they would put high density housing. Mr. Neumeister stated
there are two areas they could put high density. He showed on the map where the areas are
located.
Motion carried 4 ayes, 1 nay (Trude).
REVIEW REQUEST FROM UNITED PROPERTIES FOR USE OF LOT FOR FINANCIAL
INSTITUTION
Community Development Director Neumeister stated on May 25,2004, the EDA reviewed
whether the lot at the southwest comer of Martin Street and Bunker Lake Boulevard could be
allowed to be used for a TCF Bank. The EDA approved the modifications to the Covenants to
allow the use ofthat site for a fmancial institution. Recently, United Properties verbally
requested the same change to allow Outlot C, located at the northeast comer or Quinn Street and
Station Parkway, to also be allowed to be used for either an office building or a financial
institution.
Commissioner Jacobson asked why they want this changed. Mr. Neumeister stated United
() Properties felt this was a use they would like to market to. When you look at the area, because
there is not high visibility off of Bunker, this would work well as a financial building. He stated
they bring high tax value with very low service levels.
Commissioner Jacobson stated they already have a number of bank buildings in the area. I
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/ '\ Andover Economic Development Authority Meeting
I Minutes - August 17, 2004
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Commissioner Trude asked if they change this parcel, wouldn't it make most of the area office.
She stated this land is more visible than Andover Station North ever will be.
The Commission discussed the possibilities of future retail versus office areas in Andover Station
South.
Motion by Commissioner Jacobson, seconded by Commissioner Trude, to deny the request.
Commissioner Knight asked what happens if they deny the request. Mr. Neumeister stated
United will probably not sign off on the TCF Bank site.
Commissioner Trude thought they could solve this problem by having United come back when
they have a distinct plan.
Motion carried 4 ayes, 1 nay (Gamache).
CJ VERBAL UPDATE ON ANDOVER STATION
City Engineer Berkowitz stated the wetland mitigation and storm water basin have been created
on the north side which is complete without any issues tied to it. He stated that as they got to the
south side, they knew they had petroleum contaminants and they are working through the PCA,
~~and Ryan Companies evaluating the petroleum issues. He stated they have to take samples
08e 8( ~ach pile and evaluate each one. He explained the big benefit for the area is that they got
Ryan Companies to build the storm water ponds, wetland mitigation and the outlet pipes for both
of the ponding areas. IlnLtrUlul q , J-(-olt
Commissioner Orttel asked if they have three hundred yards of spoiled material. Mr. Berkowitz
stated that was correct.
OTHER BUSINESS
Commissioner Knight asked what was happening with the garden golf course. Mr. Neumeister
stated Mr. Ward did not get Target's approval for his use in front of their store so he thought they
might allow him to use the back pond area instead.
Motion by Jacobson, Seconded by Knight, to adjourn. Motion carried unanimously. The meeting
/ ) adjourned at 7:00 p.m.
\J Respectfully submitted,
Susan Osbeck, Recording Secretary