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HomeMy WebLinkAboutJune 29, 2004 , 0 \ 0 ~ ew-.- L~ ~ -(l-ó~ C) ~NDbVE'~ 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 June 29, 2004 - 6:00 p.m. Conference Room A & B AGENDA 1. Call to Order 2. Approval of Minutes - May 25,·2004 0 3. Approve First Amendment to Declaration of Covenants for Andover Marketplace East - Planning 4. Update on Andover Station North - Planning 5. Consider Contract! Advance Resources Proposal - Planning 6. Update on Proposed TIF District 1-4- Planning/Finance 7. Update on Monument Signs - Planning 8. Other Business 9. Adjourn ~) (' 0 (- -\ ~NÓÒVE~ i'.J 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304 · (763) 755·5100 FAX (763) 755-8923 . WWW.CI.ANDOVERMN US ANDOVER ECONOMIC DEVELOPMENT AUTHORITY MEETING JUNE 29, 2004 - MINUTES A Meeting of the Andover Economic Development Authority was called to order by President Mike Gamache, June 29,2004,6:00 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 Fred Larsen; and Non-voting resident member Edward Schultz Also present: Interim Executive Director, Jim Dickinson Community Development Director, Will Neumeister . APPROVAL OF MINUTES C) May 25, 2004: Correct as written. Motion by Knight, Seconded by Jacobson, approval of the Minutes as written. Motion carried unanimously. APPROVE FIRST AMENDMENT TO DECLARATION OF COVENANTS FOR ANDOVER MARKETPLACE EAST Community Development Director Neumeister stated at the May 25, 2004 EDA meeting, approval was granted for a TCF Bank to be planned for one ofthe properties at Andover Marketplace East. The attorneys have prepared the paperwork that is needed to allow this use of the property. Commissioner Jacobson inquired if the primary change had to do with the 10 percent floor space. Mr. Neumeister replied that was correct. Motion by Knight, Seconded by Gamache, to authorize the signing of the "First Amendment of the Declaration of Restrictive Covenants" by the EDA President, Executive Director and City ; Clerk. 0 Commissioner Trude stated that she has observed the number of parking spaces that are provided for at other banks and expressed concern that there may not be enough parking spaces incorporated with this bank. Mr. Neumeister replied that the current proposal does meet the City ordinance as it pertains to (~) 0 /- ., Andover Economic Development Authority Meeting '.,-.-J Minutes - June 29, 2004 Page 2 parking space requirements., but the EDA will still have one more opportunity to review the plan and the materials of the proposed building. Commissioner Trude suggested that maybe they should be reviewing what the City's parking requirements are for financial institutions. Mr. Dickinson explained that previous direction ITom the EDA was that the development group come back with a plan that would not require any variances and comply with City Code. Motion carried unanimously. UPDATE OF ANDOVER STATION NORTH Community Development Director Neumeister explained the staff has been working to develop a land use plan and marketing drawing for Andover Station North. Mr. Neumeister reviewed the schematic drawing for Andover Station North with the EDA. / "- Commissioner Knight inquired as to what type of use would be considered light industrial. Mr. \_~) Neumeister replied that one ofthe potential uses would be a builder showcase building. He explained that the units for the light industrial would be carved into 2,000 square foot bases to accommodate several different uses. Commissioner Jacobson inquired as to what the net density is in the residential portion of the development. Mr. Neumeister replied that six to eight units per acre is currently being proposed. He explained that they would be constructing two different types of units that would be affordable market rate housing and be owner occupied. Commissioner Trude suggested replacing the housing units adjacent to Jay Street with office units that look similar to the housing units. Mr. Neumeister replied that staff did talk to the developer about that possibility and it was his preference to have the housing come all the way to Jay Street. , Commissioner Trude replied that she thought it would be a way to bring more commercial tax base into the City. Commissioner Knight inquired if it was possible to provide a mix of housing and residential along the main street. (j Mr. Dickinson replied that is something they could negotiate with the developer, but noted that in reality the City would more than likely receive more tax base with the townhouse units rather than the commercial units because you have to provide for additional parking with the commercial units. u 0 r \ Andover Economic Development Authority Meeting "-) Minutes - June 29, 2004 Page 3 Commissioner Trude replied that typically the smaller single office units don't require a lot of parking. Commissioner Orttel inquired if it made sense to provide office above the proposed retail area. Mr. Neumeister replied that it is very difficult to market second level office space in the suburbs. Mr. Neumeister inquired if the EDA was in overall agreement with the concept of what is included in the schematic design for Andover Station North so that they can unveil it at the Andover Golf Tournament. Consensus ofthe EDA was that they are in agreement with the concept plan for Andover Station North. Mr. Dickinson noted that the plan is always open for change. Commissioner Knight stated that at one point they had talked about having dual purpose parking areas between the ballparks and the commerciaVindustrial area and inquired if that was still the ~-) case. Mr. Neumeister replied that that is something they will look to negotiate before they sell the land, but that is the City's ultimate goal. Commissioner Jacobson inquired as to what the status is to upgrading the intersection of Hanson Boulevard and 139th. Mr. Neumeister replied that the intersection will have to be designed to accommodate the traffic that will flow in and out ofthe Andover North Station. Commissioner Jacobson inquired ifthe City was to going to depend on the County to build that intersection. Mr. Dickinson replied that the County will be upgrading the intersection, but the City will be asked to participate. Mr. Neumeister noted that upgrading the intersection is in the County's plan to be completed in the next two years, but that does not include installing lights at the intersection, which is why the City would probably have to participate. Commissioner Nowak inquired if staff was confident that three lanes was going to be adequate to serve the development. Mr. Neumeister replied that staff will be having consultants review the concept plan to determine if the three lanes will work. Originally they had planned for five lanes, but that was when they were including more commercial development. CONSIDER CONTRACT/ADVANCE RESOURCES PROPOSAL CJ Finance Director/futerim City Administrator Dickinson stated at the May 25,2004 meeting, the EDA directed staffto discuss a performance based marketing agreement with Mr. Mike Mulrooney of Advance Resources for Development, Incorporated. Staff has had discussions with Mr. Mulrooney and a proposal was presented for the EDA's consideration. Mr. Dickinson explained that the proposal was similar to the arrangement with Advance Resources for the initial (J 0 ./ -, Andover Economic Development Authority Meeting "-) Minutes - June 29, 2004 Page 4 development of Andover Station. The new proposal proposes various development services through a consulting fee/commission of seven percent of the negotiated selling price of the property sold. The proposal is performance based as requested by the EDA, and if the EDA were to decide to proceed forward with the proposal, staff would recommend that the proposal be modified to allow that exclusions be made for proposals and contacts that City Staff has marketed to and secured development interest from in Andover Station North. Commissioner Trude inquired if Mr. Mulrooney would consider a flat hourly rate to assist with staff with the process in the situation where staff has already secured development interest. Commissioner Nowak inquired if any thought had been given to pay a fee based on a sliding scale. Commissioner Trude replied that she was thinking oftrying to have staff and Mr. Mulrooney work together rather than against each other. Mr. Dickinson explained that staff did discuss with Mr. Mulrooney that they would want ,) exclusions and he seemed fine with that. His concern is that at this point going forward it could be very fuzzy as to who those contacts are. Commissioner Jacobson stated that it seems that staffhas had great success already with bringing in potential users and questioned if it is necessary to even enter into a contract with Advance Resources. Mr. Neumeister replied that he thought there were definitely contacts that Mr. Mulrooney has that City staff does not. Mr. Dickinson stated that he felt a joint agreement would work fine. Mr. Orttel inquired if staff felt that $4.5 per square foot was a reasonable market rate. Mr. Neumeister replied that the retail property is at least that, and the light industrial property would sell between $2.00 to $4.00 per square foot. He noted that the City does have to consider price breaks on the commercial/industrial section because surrounding communities are giving the land away. Commissioner Orttel inquired ifthe City would only be selling the building pad. Mr. Neumeister replied yes. Commissioner Orttel replied that if that was the case the City was providing a huge subsidy ~--) because the ponding, roads, etc will already be in. Mr. Dickinson stated that he is hearing from the EDA that they would like staff to discuss the possibility of a sliding scale fee on commercial/industrial transactions if appropriate, an hourly rate for service to assist with closings on any of the transactions listed under the exclusion. 0 () / \ Andover Economic Development Authority Meeting \,,-_ .J Minutes - June 29, 2004 Page 5 Commissioner Jacobson inquired if they would be entering into a one-year contract. Commissioner Trude replied that she thought it needed to be longer than one year. Mr. Dickinson inquired if the EDA felt that a seven percent commission was adequate. Commissioner Nowak replied that a seven percent commission may be adequate if they are selling property at $4.00 per square foot, but possibly not at $2.00 per square foot. Mr. Dickinson inquired if that is something that staff should discuss with Mr. Mulrooney. Consensus of the EDA was yes. Mr. Dickinson questioned what the sunset date of the contract should be. Consensus ofthe EDA was that the contract should be at least two years. <__J Motion by Knight, seconded by Orttel, to direct staff to discuss the possibility of a sliding scale fee on commercial/industrial transactions if appropriate, include exclusions for current contacts the City has already entered into discussions with, an hourly rate for service to assist with closings on any ofthe transactions listed under the exclusion, and that the contract be a minimum of two years. Commissioner Trude inquired if staff was reluctant to move forward with the contract because they seem to be having good luck marketing the development on their own. Mr. Dickinson replied that things have been going good, but staff still needs assistance to get the development filled out in the time they have set forward. Commissioner Knight inquired ifit will be possible to get started with the residential portion of the development before they begin the commercial/retail areas. Mr. Neumeister replied that staff would like to have commercial/retail contracts in place before the residential portion proceeds forward. Staffhas met with Bruggeman Homes and they seem to be in agreement with the current timeline. Motion carried unanimously. UPDATE ON PROPOSED TIF DISTRICT 1-4 ,~) Community Development Director Neumeister explained that staff held a meeting with the property owners in the area known as Hughs Industrial Park on June 22, 2004. There were five property owners representing nine of the properties present. Staff indicated that the process to set up the District must start over and the City wants to make sure they have discussed with all potential property owners in the area involved what the opportunity is and whether they would be (J ü ( \ Andover Economic Development Authority Meeting I , \. __J Minutes - June 29, 2004 Page 6 interested in being included in the District. It was explained that in order to assist in qualifying parcels that will be included in the potential new district there will need to be a visual inspection and report on the properties to determine whether the conditions present will qualify the property for inclusion in the tax increment district. It was indicated that the inspection would not be used for anything other than determining if the site and building will allow the City to qualify the parcel in the proposed new TIF district. Generally there was acceptance that the City should proceed with the inspections and analysis of what can be done to set up the District for the entire Hughs and Westview Industrial Parks. Mr. Dickinson stated that due to the fact that a few property owners were not present at the meeting, staffwill be individually contacting the other property owners in the area to determine if they are interested in being included in the proposed district. The general feeling that was prevalent at the meeting on June 22nd was that the properties could greatly benefit from being included in the TIF District and that the City should continue in the effort to expand the boundaries ofthe original area. Commissioner Orttel noted that MMHI is currently zoned residential so they should probably make changes to the zoning if it is going to be included in the TIF District. , , I \. , There was no action required. UPDATE ON MONUMENT SIGNS Community Development Director Neumeister explained staff has been working on determining the cost ofthe monument signs and have found that the cost will generally exceed $16,750 per monument sign. The goal ofthe EDA was to have monument signs at six to seven locations at entrances into the Community. Firm cost estimates that staff has received are far in excess of what had originally been envisioned. Staff is concerned that the direction this is taking is not in keeping with the original budget and also there are other priorities that they may want to consider before these signs are authorized. Staff would prefer to have the green metal entrance signs move fOlWard and receive approval for construction and installation (cost $6,000 to $7,000) and hold off on the monument style entry signs. There are many costs that could be involved in the marketing of Andover Station North and staff would prefer to hold off on the large costs involved in the monument signs until the development of Andover Station North has generated ¡ enough additional revenues to support the large expense involved. President Gamache inquired if there was CIP money set aside for the monument signs. Mr. Dickinson replied yes, but explained that with as fast as Andover Station North is developing it makes sense to hold off on spending that money until the area is developed. /', \~j Motion by Jacobson, seconded by Knight, to authorize the construction and installation of the green metal signs; hold on any further work on the monument style signs until Andover Station North has been nearly fully developed and there are sufficient additional funds to support the cost. 0 0 ( - ) Andover Economic Development Authority Meeting l Minutes - June 29, 2004 Page 7 Motion carried unanimously. OTHER BUSINESS Outlot Behind Walgreen's Commissioner Trude suggested that some sort of public art be placed on the outlot behind Walgreen's. Mr. Neumeister noted that there will be an item on the July 6th EDA agenda to discuss that property. Motion by Jacobson, Seconded by Knights, to adjourn. Motion carried unanimously. The meeting adjourned at 7:10 p.m. Respectfully submitted, (~ Nanci Libor, Recording Secretary . , i I - ') ; l, ... ..,j