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HomeMy WebLinkAboutApril 19, 2004 ¡'-'" o~óòVER¥ 0 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US Special Economic Development Authority Meeting Monday, April 19, 2004 Conference Room A & B 1. Call to Order - 6:00 p.m. 2. Approve Minutes - April 6, 2004 3. Review Andover Station North RFP's eJ 4. Recess (for Board of Review) - 6:45-7:15 5. Review Andover Station North RFP's 6. Other Business 7. Adjournment ! 0 ~ Q../.:v CITY o F l.JJLU:LLn 5"" ~ :5- 0 of NDOVE ~J ANDOVER ECONOMIC DEVELOPMENT AUTHORITY MEETING - APRIL 19, 2004 - MINUTES A Meeting of the Andover Economic Development Authority was called to order by President Mike Gamache, April 19, 2004, 6:06 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, MinnesotL 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, John Erar Community Development Director, Will Neumeister Others ~-) APPRO V AL OF MINUTES April 6, 2004: Correct as written. MOTION by Orttel, Seconded by Knight, approval of the Minutes as written. Motion carried unanimously. REVIEW ANDOVER STATION NORTH RFP'S Community Development Director Neumeister explained the Request For Proposal (RFP) announcements were sent out to developers on February 10,2004 and five developers responded by April 7, 2004 with proposals to purchase EDA land in Andover Station North. EDA members need to review the five proposals that were submitted and make a recommendation on which developer they are interested in selling the property to. United Properlies/Meridian Land Co. Mr. Keith Ulstad from United Properties made a presentation to the EDA. He stated they looked at the north site and they do not feel comfortable with the sub-station there. The main premise is to get an idea on the cost of moving the sub-station. Their proposal to the City is based on their ~J making a contribution to the City to move the sub-station. He showed a layout of the proposed development on the site. Mr. Don Jenson, Meridian Land Co., sister company to United Properties, also made a presentation to the EDA. 0 0 C) Andover Economic Development Authority Meeting Minutes - Apri/19, 2004 Page 2 Commissioner Trude asked if Mr. Jenson is the broker. Mr. Jenson he is not; they have other people do this. Mr. Jenson explained Meridian Land Company thought everything west of Jay Street should be residential and there should be a park in that area. They believe they have a strong open space feel. Commissioner Knight asked how many acres the residential area is. Mr. Jenson stated it was. approximately fifteen acres. Commissioner Knight stated there is a piece of land that is owned by someone else and he wondered why this was included. Mr. Jenson stated they thought this would blend the commercial into the residential and they spoke with one of the family members and he is open to coming up with something and is not opposed to working with whoever is selected. Commissioner Knight stated there is a substantial decrease in land space for the sub-station compared to what they have now. He wondered if they have talked to the electric company about /~ this. Mr. Jenson stated the sub-station would fit in the smaller area. Mr. Ulstad noted they have \.j called regarding this but have not received a response in regard to what the cost would be. Commissioner Jacobson stated the price to move the sub-station out of there is approximately eight million. Mr. Jenson stated there is land that the EDA has bought and cannot be used for anything else, which they thought would be a good spot for the sub-station. Commissioner Jacobson asked if the sub-station were not moved what this would do to the presentation. Mr. Ulstad stated if it were not moved, it would substantially dampen their retail user use and it would probably not be able to be commercial but would rather need to be industrial. It affects their land value substantially and they would need to go back to the drawing board. Commissioner Jacobson stated two years ago it cost 1.8 million to move the smaller part of the sub-station including buying the land. Mr. Ulstad stated they could swap land to lower the cost. Mr. Erar stated there are quite a few easements on the property so if the sub-station were moved they would still have to deal with the easements. There are also other constraints with the sub- station being moved so close to the WDE site. Commissioner Jacobson asked if the developer was asking the City to put in all of Jay Street and /\ sewer and water before they start their development and are they prepared to pay some of the U costs to bring these utilities up to the site. Mr. Ulstad stated they would be willing to cost share the expenses. Commissioner Orttel asked if Mr. Ulstad felt the residential was a distressed site or if it was a 0 0 ., Andover Economic Development Authority Meeting \ 'j Minutes - Apri/19, 2004 Page 3 market rate site. Mr. Ulstad stated he thought it was at market rate. Mr. Jenson stated the residential would be a town home market but it would not be the most expensive homes in the City. Mr. Ulstad stated retail is not limited by the space. By adding more residential, it does not mean there will be less retail. Commissioner Jacobson asked if the residential area would be all owner-occupied. Mr. Jenson stated everything would be owner-occupied except for assisted living. Commissioner Jacobson asked about the contingency with the County regarding road improvements on Hanson and Bunker. Mr. Ulstad stated they would need to discuss full movement access into the area. Discussion ensued in regard to the sub-station and building Jay Street. Motion by Jacobson, Seconded by Orttel to recess the EDA Meeting at 6:55 p.m. Motion carried \ unanimously. \./ Andover EDA reconvened at 7:28 p.m. REVIEW ANDOVER STATION NORTH RFP'S (CONTINUED) Town and Country Homes Ms. Krista Fleming and Mr. Terry Matula from Town and Country Homes made a presentation to the EDA. Ms. Fleming stated the proposal they came up with is a back-to-back town home development. She stated they are open to build housing within the commercial area. Commissioner Knight asked if they had common firewalls all around the town homes shown. Ms. Fleming stated there were. ·Commissioner Jacobson asked how many units are in each building. Mr. Fleming stated they have six, eight and ten unit buildings. f -~ Ms. Fleming stated they would put the park to the north for a buffer and ponds within the '---../ development. Commissioner Trude asked if the product was entry level pricing or higher. Ms. Fleming stated these would be a little higher based on the layout but it tends to be a first time homebuyer price. u ') Cp \ Andover Economic Development Authority Meeting \. ~ I Minutes - Apri/19, 2004 Page 4 Mr. Nowak stated he read the price would be $180,000 to $210,000 per unit. Mr. Nowak asked if the town home development in Brooklyn Park is similar to what is being presented. Ms. Fleming stated it is. Commissioner Jacobson asked if there is a reason why they went with the design they did and not a one-story. Ms. Fleming stated they looked at this project as being a more first time home buyer or young singles or couples. Mr. Matula stated ninety percent of the retired segment want to live on one floor and they are not highly motivated to buy immediately and there are already so many town homes on the market that are geared toward the older retired couple. The Board discussed the townhomes and buyers for them. Mr. Matula stated they have more options for the designs of the homes than other developers. Commissioner Jacobson asked if they will have private roads and if they have associations where everyone needs to belong. Ms. Fleming stated they do. She stated the association will maintain r '\ the private roads but the main roads will be public. \ --~ ) Commissioner Jacobson asked if the developers would be willing to cost share construction of the road going into the development. Ms. Fleming stated they would be willing to contribute and look at this. Mr. Matula stated the way to look at this as a developer, they can predict what the marketplace is going to be and they can budget money for surrounding improvements. Bruggeman Homes Mr. Greg Schlenk from Bruggeman Homes and Mr. Leon Opatz, RLK made a presentation to the EDA. Commissioner Jacobson asked if the units would be similar to the ones in Andover Station. Mr. Schlenk stated the eight unit townhomes would be similar. Commissioner Jacobson asked if Bruggeman Homes were the preferred developer, would they go to Mr. Povlitzki and get his approval first. Mr. Schlenk stated he would like to do both at the same time. He thought Mr. Povlitzki was very receptive to selling the twenty acres. Commissioner Knight asked what the price range would be. Mr. Schlenk stated it would be i ! (J $170,000 to $190,000 on the two levels and the one level would be low $200,000. Commissioner Knight asked if they are planning some kind of buffer to the east between the townhomes and commercial. Mr. Schlenk stated they would. cJ () '--./ , - Andover Economic Development Authority Meeting \ Minutes - Apri/19, 2004 '--./ Page 5 Commissioner Jacobson asked what the density would be. Mr. Schlenk stated it would be close to 6 units per acre. President Gamache asked if they have an agreement with the Met Council pertaining to density. Mr. Neumeister stated they do but he felt it was agreed upon for medium density throughout the residential. Commissioner Jacobson asked if the developer was willing to share in the cost ofland improvements with the City. Mr. Schlenk stated they could look into it and they could do this to a point. Mr. Erar stated there would always be a level of contribution by the developer. Mr. Erar stated it is difficult to design the street until a design is chosen. Mr. Neumeister stated it would be hard to get retail in the area with the sub-station where it is. President Gamache asked if it is better to have commercial go in before residential. Mr. Erar stated this was the plan because then they would have the road done for residential development. Mr. Neumeister stated they need to have this development pay for itself. , \ Commissioner Trude stated they have the engineering studies available for the developers to \. " ) reVIew. Ryland Homes Mr. Chris Engler and Mr. Brian Sullivan from Ryland Homes made a presentation to the EDA. The Commission looked at the layout and discussed where the wetland area will be in the , proposal and how this will handle the development. [ Commissioner Jacobson asked if the road would be able to handle the residential traffic. Mr. Neumeister stated the road would be a loop road built to City standards. Commissioner Orttel asked if they have talked to the landowner to the south. Mr. Sullivan stated they have not. Commissioner Trude asked what the pricing would be on these. Mr. Sullivan stated it would start at mid to upper $100,000 to low to mid $200,000 and the plans would be 1200 square feet to 1600 square feet with double car garages and maintained by a homeowner's association. '\ Commissioner Jacobson asked what the density would be. Mr. Sullivan stated there would be six '-.) units per acre but they could go seven units per acre. Mr. Neumeister stated he told them to show more green space in the project but he thought seven units per acre would be fine. Commissioner Trude asked what market they saw in Andover. Mr. Sullivan stated he aimed this 0 l) r , Andover Economic Development Authority Meeting ) '. j Minutes - Apri/19, 2004 Page 6 toward first time homebuyers. Commissioner Knight liked the green area in this plan. Commissioner Jacobson asked what the timeline would be if they were accepted. Mr. Sullivan stated they would like to start immediately. Commissioner Knight asked how they felt about contributing to developing the road. Mr. Sullivan stated it would be put into the price of the home. Commissioner Jacobson asked if the roads would be public or private. Mr. Sullivan stated they would be private. Commissioner Jacobson asked how they would buffer the area between the single family and townhomes. Mr. Sullivan stated they could berm the area or add a fence. President Gamache asked if there would be variations in color on the buildings. Mr. Sullivan :') stated they could have multiple colorings on the buildings. '-_/ Mr. Neumeister asked if the developer saw any merit of bringing the housing in from the south east part of this development. Mr. Engler stated they could and they could get started earlier also. Mr. Engler stated if they could put more homes on more land, they could add amenities to the project. The Commission took a ten-minute recess at 9: 1 0 p.m. Positive Development, Inc. Mr. Jay Feider from Positive Companies, Inc. made a presentation to the EDA. He stated they specialize in smaller tenants. Commissioner Jacobson asked if the EDA owns the far lot. Mr. Neumeister stated the EDA owns the left half and the developer could have the option of buying the right half from the energy company. Commissioner Orttel asked if the developer behind this would want a view corridor. Mr. Neumeister stated there would be a few different views between the buildings. '. '. / Commissioner Jacobson asked how the property would be accessed because he did not know if the County would allow access off of Bunker. Mr. Feider stated he did not think this would be a problem because people would be willing to get to the building by using a service road if needed. Mr. Erar stated from a developer's perspective, given the sub-station on the comer, commercial 0 () r " Andover Economic Development Authority Meeting ,____ .I Minutes - Apri/19, 2004 Page 7 considers it extremely critical for a site point. Mr. Neumeister thought the Commission would need to ask the developers to the north how much of a view corridor would be needed. Mr. Erar thought developing the land in the front of the site would be detrimental to development of the rest of the site. He thought the developer in the front could work with the developer in the back to develop at the same time. Commissioner Jacobson stated with the relative new development of his company, does he have the economic ability to do a development like this. Mr. Feider stated he used to have a construction company and sold it a year and a half ago and then developed using his own name and recently decided to incorporate. He stated he has been doing this type of thing for the last twenty years and his investors have a large net worth and he does have a credit line with a bank and could get a letter from the bank. Mr. Feider described the projects he has done and will be doing in the next year. r \ Discussion ensued in regard to what developments would be viable on the site. , ) , / Commissioner Trude asked what kind oftenants Mr. Feider could bring to the space. Mr. Feider stated he was not sure because the entrepreneurs in the area typically determine it. The Commission discussed the commercial proposal and the possibility of moving the sub- station to another site. President Gamache stated they need to make a decision as to whether they want more residential than what they previously discussed. Commissioner Trude stated they need to have more commercial in the City. Commissioner Jacobson stated he would be willing to look at expanding the residential a little further east and south. Commissioner Jacobson stated they also need to look at the sewer study to find out what they have available for the area. Commissioner Knight thought they should split up the construction of Jay Street. OTHER BUSINESS There was none. , \ \.......-J Motion by Jacobson, Seconded by Nowak, to adjourn. Motion carried unanimously. The meeting adjourned at 9:55 p;m. 0 0 / , Andover Economic Development Authority Meeting \ \.. ' Minutes - Apri/19, 2004 Page 8 Respectfully submitted, Susan Osbeck, Recording Secretary , \ , '- - " ,) '. ./