HomeMy WebLinkAboutDecember 2, 2003
~NDbVE*
'0 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
SPECIAL MEETING
December 2,2003- 6:00 p.m.
CONFERENCE ROOM A
AGENDA
1. Call to Order
2. Approve Minutes - November 12,2003
3. Approve LMCIT Liability Coverage
4. Andover Station EDA Approval -- (City Attorney will describe at meeting):
a) Authorization to convey Outlots D and E, Andover Marketplace East to the Andover Station
Owners Association.
b) Authorization to convey Outlots A and B, Andover Marketplace East to the City of Andover.
c) Approval of the Amended and Restated DCCR's.
~) d) Approval of the amended articles of incorporation and bylaws of the Association.
e) Resignation of the existing board members from the Association.
f) Approval of the Estoppel letter for Walgreens (Net Lease Development LLC).
g) Approval of the environmental indemnity for Walgreens (Net Lease Development LLC).
h) Approval of the environmentalindemnity for United Properties Investment LLC for Outlot C.
i) Approval of the environmental undertaking agreement for Andover Station Owners
Association for Outlots D and E .
j) Approval of a wetland mitigation easement on EDA property located north of Bunker Lake
Boulevard.
k) Appointing the new board member (City representative)to the Association.
I) Discuss requested signs for Target andWalgreens to be located on Outlot A.
m) Authorizing the Chairman and Executive Director to sign the documents with amendments
approved by the attorney (and such other documents ar~ may be necessary to complete the
this transaction).
n) Approval of the sign easements for Walgreens over part of Outlot A.
0) Approval of architectural elevation drawings for Walgreens Store.
p) Approval of architectural elevation drawings for Target Store.
5. Other Business
6. Adjourn
0
() ü
5'\NóbVË~
/ \
\~! 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
DECEMBER 2, 2003 - MINUTES
A Meeting of the Andover Economic Development Authority was called to order by President Mike
Gamache, December 2,2003,6:00 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 members Fred Larsen and Robert Nowak
Absent: Non-voting resident member Edward Schultz
Also present: Executive Director, John Erar
Community Development Director, Will Neumeister
City Finance Director, Jim Dickinson
City Engineer, Dave Berkowitz
City Attorney, William Hawkins
Others
':,')
APPROVAL OF MINUTES
November 12,2003: Correct as amended.
Commissioner Trude stated on page 3, eighth paragraph down, the sentence should read "She stated
Anoka County is on the map because everything else is already sold out."
Commissioner Trude explained she wanted the last paragraph on page three stricken.
MOTION by Jacobson, Seconded by Orttel, approval of the Minutes as indicated above. Motion i
carried unanimously.
APPROVE LMCIT LIABILITY COVERAGE r
;
Finance Director Dickinson explained the League of Minnesota Cities Insurance Trust (LMCIT) ;
¡
requests that participating cities and special authorities annually decide whether or not to waive
the statutory tort liability limits established by Minnesota Statutes 466.04.
(J Motion by Jacobson, Seconded by Trude, to not waive the monetary limits on tort liability
established by Minnesota Statute 466.04. Motion carried unanimously.
0 0
,
0 Andover Economic Deve lopment Authority Meeting
Minutes - December 2, 2003
Page 2
ANDOVER STATION EDA APPROVAL
Community Development Director Neumeister explained this agenda item consists of multiple
authorizations and approvals that all relate to the Walgreens and Target Land transactions in
Andover Station. The City Attorney will be present to describe the various actions that are
requested of the EDA.
Commissioner Orttel asked if they will be incurring additional liability with these items. Mr.
Erar explained he would have City Attorney Hawkins review the documents. He stated their
position remains the same as before. Mr. Erar stated the environmental indemnification remains
consistent with how they proceeded with Festival Foods. The same terms and conditions are
involved in this.
Mr. Erar explained the City will retain control and ownership of the pond and will retain a seat
on the Andover Marketplace Association. The agreement states the Association will pay for
everything relating to the maintenance and improvements. Commissioner Trude stated this will
not be a typical situation; it will be a unique situation. She does not want to see this happen at i
Andover Station North because they are providing ponding without payment. Mr. Erar stated all
(-'" of the grading, pond work, wetland mitigation is being paid for through their negation with
\.J United Properties. The EDA does not incur any costs; this is a cost associated with purchasing
the property.
Commissioner Orttel asked if they were only getting paid for the cost of use able land. Mr. Erar
stated this was true. Commissioner Trude stated most cities would collect a fee to take the storm
water into a city park so this is a highly unique negotiating situation.
City Attorney Hawkins explained the following items to the Commission:
a. Authorization to convey Outlots D and E, Andover Marketplace East to the
Andover Station Owners Association.
City Attorney Hawkins explained Outlot D is going to be the private street that runs through the
development. Outlot E is the green space on the corner.
Mr. Erar stated United Properties has agreed to fund any improvements to Outlot E up to $25,000
so the EDA can decide what they want to see on that site. Commissioner Jacobson asked if this
is in writing. Mr. Erar stated this will be included in the documents.
(Commissioner Knight arrived at 6:09 p.m.)
0 Commissioner Jacobson stated Item L should be discussed and agreed upon before any of the ,
others because if this is not settled, none of this will matter. City Attorney Hawkins explained :
this has been settled. ,
u ()
\ Andover Economic Development Authority Meeting
:, ) Minutes - December 2, 2003
Page 3
Mr. Erar explained what was discussed and settled up to the time of the meeting.
b. Authorization to convey Outlots A and B, Andover Marketplace East to the City
of Andover.
City Attorney Hawkins explained this is conveyance of all the outlots to the City and this will be
the pond areas and the City will be responsible for those areas. They will have an agreement
with 116 LLC to make a contribution to the cost of maintenance of the outlots. He stated 42.8
percent will be collected from the 116 LLC contributions.
Commissioner Jacobson asked if this needed to be conveyed from the EDA to the City. City
Attorney Hawkins stated that was correct.
c. Approval of the Amended and Restated DCCR's.
City Attorney Hawkins explained there is a substantial change to this. There has been a lot of
discussion regarding voting rights, cross easements for access, parking and things of that nature.
He was concerned they would still have control over the design of the facility. He explained the
,~) documents state there cannot be any changes unless the plans are reviewed by the City and they
must comply with the Andover Station Design Standards.
City Attorney Hawkins explained if they do not maintain the grounds, the City does have the
ability to do the work and assess the cost back to them.
City Attorney Hawkins stated there was concern from Commissioner Trude regarding being able
to dissolve the Agreements and the members have rather sever restrictions that they have been,
negotiating with cross easements and this is never going to be dissolved.
Commissioner Jacobson asked if they approve this and a new business comes in, do they need to
follow the design guidelines. City Attorney Hawkins stated they did. ,
!
d. Approval of the Amended Articles of Incorporation and Bylaws of the
Association.
City Attorney Hawkins explained they will be a voting member of the board but they cannot vote
on anything that would affect the assessments against the property owner.
e. Resignation of the Existing Board Members from the Association.
0 City Attorney Hawkins stated this will be reconstituted and they need to get everyone to resign
from the Association. Commissioner Jacobson stated if they all resign, how will they get a new
representative in. City Attorney Hawkins explained they will also be appointing a representative
in the motion.
u 0
:J Andover Economic Deve lopment Authority Meeting
Minutes - December 2, 2003
Page 4
f. Approval of the Estoppel Letter for Walgreens (Net Lease Development LLC).
City Attorney Hawkins stated this is a standard document the buyers want for a warranty.
Commissioner Trude stated there are a couple of references to the fact that the MPCA would not
allow a certain record (certificate of completion) to be filed and there is a way they are going to
get around it. She wondered if this is an issue. City Attorney Hawkins stated the County is very
difficult to deal with but this will get recorded.
g. Approval of the Environmental Indemnity for Walgreens (Net Lease Development
LLC).
City Attorney Hawkins eXplained Items G and H are the same. These are the environmental
indemnities and they are for one year.
h. Approval of the Environmental Indemnity for United Properties Investment LLC
for Outlot C.
¡,-, 1. Approval of the Environmental Undertaking Agreement for Andover Station
,-) Owners Association for Outlots D and E.
J. Approval ofa Wetland Mitigation Easement on EDA Property Located North of
Bunker Lake Boulevard.
City Attorney Hawkins stated one of the original proposals was going to be a wetland mitigation
easement. Walgreens feels comfortable that in the Estoppel letter the City has indicated they
have complied with everything and will make sure this is done so this item has been stricken.
Commissioner Trude asked if the property Walgreens is buying is a hole with water and this will
be filled in for a building pad and they will build on this. Mr. Erar stated this is a performance
issue between United Properties and Walgreens. City Attorney Hawkins stated there will also be
an agreement contract with United Properties to make sure this gets done. City Engineer
Berkowitz stated this will require an escrow before it can be worked on. ,
!
k. Appointing the New Board Member (City Representative) to the Association.
I. Discuss Requested Signs for Target and Walgreens to be Located on Outlot A.
City Attorney Hawkins explained this is an item that is being worked on. Mr. Erar stated they
have worked with all the parties regarding the sign locations and they have agreed regarding the
r~\ size and relative position of each of these. Mr. Erar stated the issue is allowing a modification of
U the design guidelines, which are not recorded against the property. The signs are well within the j
requirements of the City's zoning. As a retail center, they do need a sign that is visible and they
are less than what has already been permitted out there.
0 0
:~) Andover Economic Development Authority Meeting
'-- Minutes - December 2, 2003
Page 5
Mr. Erar explained that United Properties is looking at selling the piece on the northwest corner.
They will be looking at a new bank and they will want a monument. He showed on the site plan
where the monument signs will be placed on the property.
Community Development Director Neumeister showed a color rendering of the Target sign
which showed the size and placement. Mr. Erar explained the Target sign is within what has
already been allowed for the cinema.
Mr. Erar stated the reason why the Target and Walgreen's signs are coming in at 12 and 20 feet is
because they are trying to accommodate the Andover Station logo at the bottom. He explained
both signs will be in brick and very attractive.
Mr. Nowak asked if both signs will be lighted. Mr. Neumeister stated they will be lit internally.
Commissioner Jacobson asked if this was a standard sign for Target because some Target signs
in other cities are smaller. Mr. Neumeister stated Target will have two signs on the property.
Commissioner Trude asked if everyone will have their own sign. She thought they needed to
r "\ have an overall plan for the signs in order to be fair to everyone located on the property including
\
,-,j the businesses already there.
Commissioner Jacobson asked if these signs were proposed to be on City easements. City
Attorney Hawkins stated they would be located on Outlot A. Mr. Erar stated the Association will
be maintaining the property as well as Outlot A.
Commissioner Jacobson asked why they are giving eighteen months for repair or replacement of
a monument sign. Mr. Erar explained this would give them time given weather conditions to
repair the sign and he believed it would be repaired before then because they will want a working
sign for their business. City Attorney Hawkins stated all this has changed and he has not had
time to review this.
Commissioner Jacobson stated on item 19, the covenant will remain in force for 75 years. This
seems like a long time and he wondered why it was for such a long time. City Attorney Hawkins
stated he thought this had something to do with the life of the building.
Commissioner Jacobson asked if Walgreen' s went out of business and another company bought
the property, what would happen. City Attorney Hawkins stated they will still have a sign for the
new business.
r'\, Commissioner Knight asked what happens if twenty years down the road, Target leaves, what
\.J would they do with an empty business. President Gamache stated they would probably redevelop
it. Mr. Erar stated if this would happen, the City would make sure this would be maintained and
continue to provide the value the community wants.
o 0
--... Andover Economic Development Authority Meeting
r \
~'-_) Minutes - December 2, 2003
Page 6
Commissioner Jacobson asked if the easement is only for the Walgreen's site. City Attorney
Hawkins stated this was true. Mr. Neumeister stated they have received an emaillate in the
afternoon that the City Attorney has not had time to review which has a number of changes
showing the allowances that need to be made to make sure both of them can be placed on the
corner. Mr. Neumeister stated they want to make sure it meets dearview triangle setbacks at the
corner for both the City and County transportation. He stated this is all done and the emails and
verbal commitments are showing there is agreement there. Mr. Erar stated both Target and
Walgreen's needs a confIrmation by the EDA stating that a 20 by 12 sign for Target and a 12 by
12 sign for Walgreen's will be permitted.
City Attorney Hawkins stated this is set to close on December 16, 2003 and there are still
negotiations on some of the terms of the amended and restated declaration of covenants that
pertain to control issues between Target and Walgreens. There will be some changes to the sign
easement and some other documents.
m. Authorizing the Chairman and Executive Director to Sign the Documents with
Amendments Approved by the Attorney.
f" City Attorney Hawkins stated they are asking authorization for the Chairman and Executive
\... j Director to sign any documents that have been approved by him. He stated there is nothing of
substance that affects the EDA that he is aware of.
Mr. Erar stated there are a lot of documents that Target and Walgreen's are working through but
this does not affect the EDA in terms of the standards or guidelines that are out there with the
exception of the signage.
Commissioner Trude stated they did put a heavy burr den on the first properties that came into the
site and she wanted to make sure everything is equal. Mr. Erar stated they are being very careful
to make sure everything is consistent.
Commissioner Jacobson asked if under the current City sign ordinance, do these proposals
including the signage on the buildings, meet all of the current sign standards. Mr. Neumeister
stated on the Walgreen's drawing, the east and south walls would be above their sign
requirements. The City would need to give approval of the east and south wall sign age otherwise
they would be above the standards. He stated Walgreens is aware they are over the standards.
Target is below what is allowed by the Ordinance.
Mr. Erar stated the Target Store represents higher standards than what is seen in other cities.
Commissioner Jacobson does not mind the Walgreen's building but all the other buildings have
banding around the building and Walgreen's does not. He would like to have them matching.
,,' "-
, ,
'\.. J
~ n. Approval of the Sign Easement for Walgreens Over Part of Outlot A.
o. Approval of Architectural Elevation Drawings for Walgreens Store.
0 0
"-,, Andover Economic Development Authority Meeting
I . Minutes - December 2, 2003
i )
....- .
Page 7
p. Approval of Architectural Elevation Drawings for Target Store.
Commissioner Trude stated she thought that what ever applied to the standards, should apply to
everyone. Mr. Erar stated ifKnowlans or Festival would have come forward and asked for
bigger signs on their buildings, they would have probably tried to work with them on that issue.
Commissioner Trude stated they need fairness.
Motion by Orttel, Seconded by Knight, approval of items A through P with the conditions under 0
that they are approving architectural elevation drawings of Walgreen's store but they are not
approving the signs on the building and approval of the free standing signs for Target (2) allowing a
20 foot high and for Walgreen's up to what is allowed by sign code and eliminate Item J and appoint
Commissioner Trude to the Board and the Executive Director as an alternate and a multi-tenant sign
on the corner and the exact size, location and design to be determined later. Motion carried
unanimously.
Mr. Keith Ulstad of United Properties also wanted to make sure the Board was approving a
multi-tenant sign allowed at the corner. Commissioner Jacobson stated he would like to see it
. . fIrst. Mr. Ulstad stated he wants a sign there. Mr. Erar stated there is nothing preventing this in
I ~
.... -' , the guidelines.
OTHER BUSINESS
There was none.
Motion by Trude, Seconded by Knight, to adjourn. Motion carried unanimously. The meeting
adjourned at 6:55 p.m.
Respectfully submitted,
Susan Osbeck, Recording Secretary
.' "
\ !
'_J