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HomeMy WebLinkAboutNovember 12, 2003 l) () .-" ~NDbVË~ t ' ,-j 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 November 12, 2003 - 6:30 p.m. CONFERENCE ROOM A AGENDA 1. Call to Order 2. Approve Minutes - October 21, 2003 3. Discuss Andover Station North RFP Submittals 4. Other Business 5. Adjourn " -) '--/ U () . 0 OJYLtnd.Ld- ~NÓÒVË~ 1~-~-O3 C) 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 NOVEMBER 12,2003 - MINUTES A Special Meeting of the Andover Economic Development Authority was called to order by President Mike Gamache, November 12,2003,6:33 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. Present: President Mike Gamache; COmmison Jacobson, Mike Knight, Ken Orttel, Julie Trude; votin resident member Fred Larsen Absent: Voting resident member Robert Nowak; Non-voting resident member Edward Schultz Also present: Community Development Director, Will Neumeister Dean Hanson of Hanson Builders C) APPROVAL OF MINUTES October 21, 2003: Correct as written. MOTION by Orttel, Seconded by Jacobson, approval of the Minutes as written. Motion carried f unanimously. DISCUSS ANDOVER STATION NORTH RFP SUBMITTALS Community Development Director Will Neumeister explained the Hartford Group will not be present tonight as their main presenter is ill. They would like to reschedule for another Wednesday night. He has brought copies of the original RFP so the EDA can discuss the original proposal. Hartford has indicated that they would like some housing included in the plan on the second story above the retail spaces. It would be beneficial to discuss this among the group so they can give their general opinion of the master plan before their next meeting with the Hartford Group; there may be some opinions they need to get out on the table. Dean Hanson of Hanson Builders explained last week he received more information about elevations and actual dimensions on the site. He has learned the type of unit they had proposed will not work because of the water table and ground elevations; they will not be able to do full basements. He stated one of the things that has struck him regarding the Jay Street construction is that part of the infrastructure should be attributed to part of this property. In addition, some (J ponding will be shared by the housing. Everything starts to integrate to a point where it would ! become difficult to have two different entities and coordinate it all. It seems there needs to be a ; master plan with one company in charge of the commercial and residential, the sharing of the ; , dirt, the building of the road, and the distribution of the price. Also, by assigning some of the () 0 '\ Andover Economic Development Authority Meeting c Minutes - November 12, 2003 \~./ Page 2 cost of the Jay Street construction to the residential area, there would be too much cost attributed per unit if the density is too low. The price of the units would go up too much and they would be unable to sell them due to the type of product. He would think a cost of$I60,000 to $200,000 would be a very saleable price. The products would be slab on grade, and densities would be at least eight to ten units per acre to justifY the costs involved and keep the costs of the units down. Mr. Hanson stated another thing that struck him as he looked at Andover as a whole, is that if there were ever going to be an area with higher density, this would seem to be a good spot. It is close to what will be some of the highest concentration of Andover retail and resources. It would make sense it should have a higher density than 3.5 to 3.7 units per acre. As he analyzes everything from a business and practical standpoint it seems that is the logical thing to incorporate into a master plan. Ultimately portions of anyone's master plan should be able to be challenged by a group such as the EDA. He explained the product he presented really does not work with the hard data, and he does not have a product he can put out there. He noted Hans Hagen has nice buildings that are this type of product. Commissioner Jacobson indicated the housing component may not be the best thing to put in if it can only be slab on grade. 0 Commissioner Knight stated he would like to see the plan that had previously been drawn up for this area. Commissioner Trude commented the land would be difficult to sell located next to Pov's and would require his participation. Mr. Neumeister explained there is a certain kind of market for townhouses in a range from $160,000 to $250,000, depending on where they are located in Andover. To fit this site they ; would have to be in the low end and in the density of six to ten units per acre. He indicated when : the final arrangements were settled with Bruggeman Homes about one week ago, they asked if they could come in on the North RFP project; however, they have not submitted any proposals. Commissioner Orttel noted Hans Hagen had also asked to be considered for this site. He ! indicated the original plan included eight to ten units per acre. Commissioner Trude commented there is a new Met Council. If the City wanted to rezone this to commercial to avoid losing fiscal disparities in the future the Met Council would have to consider that. Mr. Neumeister explained the Met Council had indicated the City would need medium and high , (J density through this area. He had responded that even without this site the City is meeting their goal. Commissioner Trude suggested TIF funding be used for some of the street costs. CJ 0 / '\ Andover Economic Development Authority Meeting ) Minutes - November 12, 2003 , / Page 3 Mr. Neumeister explained Hartford had discussed the price of the land bearing all the assessments for the road, and had indicated at some point it does not work unless they could include the housing above the retaiL He thinks they might back off of some of the housing above the retail if some of the costs could be written down. Commissioner Jacobson stated the conditions have changed greatly due to Hanson Builders pulling out and the high water levels. He suggested RFP's be sent out again. Mr. Neumeister explained there are two to three acres that could be developed along Jay Street. The road and all the infrastructures cost approximately 2.2 million dollars with improvements, and there are 43 to 44 acres of usable space, including housing. Commissioner Orttel stated any privately done project would be done the same, and the City is being told it is not feasible to put in the utilities and buy the land. He has been arguing about the appraisals that come back the same whether or not there are improvements. Mr. Neumeister advised this information must corne into play with final negotiations. The Hartford Group is having a problem with how much they are paying for the land and all the improvements. If the project can be worked out to be better for the City and for Hartford it may not be necessary to put <) in houses. Commissioner Knight suggested the entire project be reopened and Bruggeman and Hans Hagen be invited back. Commissioner Orttel stated they had indicated they would not accept anything with housing over a certain density on the south side. What they want should be included in their specifications. Commissioner Jacobson stated he does not care fotthe housing over the retaiL He has concerns with the proposal and some of the rental. He stated they owe it to the Hartford Group to say what they like and do not like in their plan. Commissioner Trude commented she has heard that the Hartford Group's expertise is the livable community downtown center.. If the housing is excluded, their experience in retail is not as e~Luìfu strong. She stated Anoka IS on e map because everything else is already sold out. There are discussions that Highway 65 may become an expressway, and this site would be three miles from that. (1\'í~hd.u\ I ~ ' ~ . D'J Commissioner Jacobson stated iftheyare going to start from scratch they should be prepared to state if they are going to participate in the cost of the road. () Co~íSšî"öI1er-T-rude..s:t:ated the City's water ho~Jees-aré so high Target is balking. Mr. Neumeister explained w~ in It can be explained the City takes that into account; they can ~haringW¡th TIF and other sour . ~ththe lan~://_,_,~-'_·_-- QrYU1~t I~ - ~ - 63 (~' u 0 / " Andover Economic Development Authority Meeting ) Minutes - November 12, 2003 '- --'" Page 4 MOTION by Knight, Seconded by Trude, to reject all present proposals and reopen RFP's for all options, partial or all, for Andover Station North. Motion carried unanimously. Commissioner Jacobson directed staff to come to the EDA with the revised RFP prior to sending it out, and to supply the EDA with a list of who it will be sent to. Commissioner Trude indicated she has talked to people that do his type of work and has been informed part of this is the timing, and it is now a better time. Also, developers need to know what the City is willing to help on. A lot of people have not discovered Andover yet and they need to sell it. The only people that came to meet with them were personally brought here; they have a problem marketing their community. She stated if they send out RFP's again they will get the same response and the City may need to do some courting. Commissioner Orttel indicated the Hartford Group should know the engineering data has changed and will change what the property can be used for. Mr. Neumeister advised what he thought was good from the plan of Hartford Associates is that the whole concept of what the EDA wanted out of the Andover Station South is included in the I~~_) north area, with the vitality they were trying to create. When the proposal is written it should include that, the current RFP is wide open and does not give direction. Commissioner Jacobson suggested the developers be shown the main road, with them stating what they would like to build. President Gamache indicated Hartford Associates was·looking at the residential area to make the project profitable, not the retail and commercial portion. It will likely keep coming back to the : same thing with the next group of plans being somewhat similar and including residential. They also heard this from Dean Hanson. His concern is that they be ready to deal with that. They have always stated they want to stay with what the market would bear in regard to residential size. J Commissioner Trude noted many of the people that work in Andover work out of their homes. Commissioner Knight stated the market for office space is small office space for individual businesses, rather than group offices. These people substitute the small office space for basement offices. Commissioner Jacobson suggested a deadline of February 1 stfor staff to present the revised RFP's to staff. Mr. Neumeister indicated an EDA meeting is planned prior to the December 2nd Council 0..-........ meeting. Staffwill bring the revised RFP to the EDA meeting. If the EDA approves of the ( ì revised RFP it could be sent out by the end of the year. \...J Commissioner Trude commented the city of Blaine courted three or four big developers and chose one of them for their new development. 0 0 '-'" Andover Economic Development Authority Meeting ¡ \ ) Minutes - November J 2, 2003 Page 5 Commissioner Jacobson stated the RFP process should be open to everyone. A small developer may want to present their plan for only the housing component of the project, and they should have a chance as well as the big developers. Commissioner Trude noted many people think once Target comes on line this will go forward. Mr. Neumeister indicated when Target comes on line it will spark more action; it is tough to get any of this going without something like a Target to draw from. Word of mouth and articles in the newspaper are beneficial. Commissioner Trude stated Andover is on the county's agenda for January 30th. This will be the time to make their pitch and show,the county what they are doing and planning, including the nice housing and the high school. Andover is now the third largest city in the county. They should show the market value of the City that is going to the county in county tax dollars. OTHER BUSINESS There was no other business to come before the EDA. , , ) MOTION by Jacobson, Seconded by Larsen, to adjourn. Motion carried unanimously. The meeting adjourned at 7:38 p.m. Respectfully submitted, Carol Hamer, Recording Secretary " '-\ J --...J