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HomeMy WebLinkAboutJune 17, 2003 0 Q9Ju~ QA..; ~ '7-/-03 í- '\ 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304 . (763) 755-5100 \",j FAX (763) 755-8923 .WWW.CI.ANDOVER,MN,US CITY OF ANDOVER ECONOMIC DEVELOPMENT AUTHORITY SPECIAL MEETING June 17,2003 - 6:00 p.m. CONFERENCE ROOM A AGENDA 1. Call to Order 2. Approve Minutes - June 3, 2003 3. United Properties Commercial Site Presentation 4. United Properties Residential Site Presentation 5. Approve 1 st Amendment to Declaration of Restrictive Covenant 6. Marketing Strategy/Andover Station North 7. Discuss EDA Position on Lease Revenue Bonds , , U 8. Other Business 9. Adjourn ':~) 0 CITY o F NDOVE .~ 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 JUNE 17,2003 - MINUTES A Meeting of the Andover Economic Development Authority was called to order by President Mike Gamache, June 17,2003, 6:02 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 Larson and Robert Nowak. Absent: Non-voting resident member Edward Schultz. Also present: Executive Director, John Erar Community Development Director, Will Neumeister City Engineer, Dave Berkowitz City Finance Director, Jim Dickinson Others ~ 0 APPROVAL OF MINUTES June 3, 2002: Correct as written. MOTION by Jacobson, Seconded by Larson, approval ofthe Minutes as written. Motion carried 5 ayes, 1 absent (Orttel), 1 present (Nowak). UNITED PROPERTIES COMMERCIAL SITE PRESENTATION Keith Ulstad, United Properties, presented architectural renderings of the new Target Greatland development site and plan to the Commission. Mr. Ulstad showed maps of Andover Station and explained they did not realize how well the interior road tied the entire project together until he saw the site plan. He noted they have a signed lot agreement with Walgreen's to locate on the property pending City approval. They have a deal done with Target pending EDA approval and circulated an amendment to the deed restriction to all involved. They have talked with a national restaurant chain to build on the site pending EDA approval. Mr. Ulstad summarized the report for the Commission including the trail system. : CJ Mr. Erar stated in terms of the pond area, trails, etc, they are consistent with the thoughts the EDA had in the beginning. Staff worked with United Properties to create this. Mr. Ulstad explained the fountain was the City's idea and it would attract the passersby as more than a 0 0 /;' 0 Andover Economic Development Authority Meeting Minutes - June 17, 2003 Page 2 shopping area, but an area that people can congregate at. Commissioner Orttel arrived at 6: 1 0 p.m. Commissioner Knight asked if there was any way they could connect the two areas with an underground passage so people would not need to cross the road. Mr. Ulstad stated they are dealing with some pretty tight grades and he is not sure it would work. Mr. Joe Samuel, RLK, explained there is significant bounce and if they had a tunnel under the road, there is a possibility of flooding because of the fluctuation. Commissioner Knight asked if they could go over the road. Mr. Samuel stated this was a possibility. Commissioner Jacobson asked about the building on the NW corner, a food service and he wondered if this could be moved over to border the pond area. Mr. Ulstad explained he did not have a problem with this because he did not think Target would have a problem. He would like to defer this until Target presented their plans to the EDA. Mr. Erar explained the option agreement with United Properties. (-"ì ' Commissioner Knight explained the nicer the pond area is, the more benefit for the shops in the 'J area. Mr. Erar stated they would talk to Target regarding this. Commissioner Trude asked what kind of building Target planned on building because it looks , too boxy. Mr. Ulstead explained Target was going to emulate Knowlan's. Commissioner Orttel asked what the width of the main street is. Mr. Samuel explained the street was 28 feet face to face and 30 feet back to back. Commissioner Orttel asked if the street was trying to take the congestion off of Station Parkway. Mr. Erar explained the street is a way to get the internal traffic through. Commissioner Knight stated they may create so much traffic they may end up with a lot of cars coming and going. ; President Gamache asked if there is a plan for a stop light off of Quinn Street. Mr. Ulstad stated , there was not. Commissioner Trude stated they might need a stop sign. Commissioner Trude emphasized that landscape will be important and she is hoping the lights will be lower lights in comparison to the rest of the station. Mr. Samuel stated it would be consistent with what is there already. ,~ Commissioner Knight asked what types of landscaping they are thinking of. Mr. Samuel stated they will be working with staff on this and they have ideas of what the City wants. Commissioner Orttel asked if the pond is no longer considered a wetland. Mr. Erar stated this is considered a storm pond and they are even considering putting in a dock with some fish. 0 0 Andover Economic Development Authority Meeting / "\ Minutes - June 17, 2003 '--./ Page 3 Commissioner Jacobson asked when ground breaking will be. Mr. Ulstad stated he thought it would be late August pending approval. Commissioner Trude explained the brick look inlay slows people down when they come upon it and she hoped they would use this in front of Target like they have at Knowlan's. She stated the parking ordinance is ten-foot parking spots. Mr. Nowak hoped there would be no internal signage like around Festival. Commissioner Trude asked what the thought was for the trail. Mr. Ulstad explained it would be an eight-foot wide bituminous trail. Mr. Ulstad explained that the Outlot B pond is not the feature pond, Outlot A pond will be. Motion by Jacobson, Seconded by Orttel, approval of preliminary site and building approval to the site development plan for a Target Greatland store in Andover Station South subject to discussion points. r-- ....., i Commissioner Trude stated for the record she has a daughter that is a Target employee but did not '--J believe this would be a conflict of interest. Motion carried unanimously. UNITED PROPERTIES RESIDENTIAL SITE PRESENTATION Mr. Keith Ulstad of United Properties and Mr. Greg Schlenk of Bniggeman Homes presented architectural renderings of the new Bruggeman Homes development and site plan. Mr. ScWank explained they had a neighborhood meeting and no one attended. He explained their concept plan is similar to the Hans Hagen plans. They are working with United Properties. Commissioner Knight asked what the homes would be selling for. Mr. Schlenk stated they would start at $165,000. He stated they would like to try to start ground breaking in the fall. Mr. Berkowitz stated they will try to get utilities in this fall for development in the spring. Commissioner Jacobson stated there was some concern in the past with this being a brownfield and he asked if all the information was given to them. Mr. Schlenk stated they have not read the reports in detail but he did not think there would be a problem. ,,- '\ Commissioner Trude asked if they construct slab or basement homes. Mr. ScWank stated they do \0 both but people have been resistant to basements for the homes. Motion by Orttel, Seconded by Trude, approval of preliminary residential site and building plan /\ () V '-..,' r \ Andover Economic Development Authority Meeting "_J Minutes - June 17, 2003 Page 4 approval for Bruggeman Homes in Andover Station South subject to ARC approval and comments discussed. Motion carried unanimously. APPROVE 1ST AMENDMENT OF DECLARATION OF RESTRICTIVE COVENANT Executive Director Erar explained the document in the Commission packet specified a revised understanding between Target Corporation, United Properties, Festival Foods and the City Economic Development Authority as it relates to the non-compete grocery store provision incorporated within the original Declaration of Restrictive Covenant dated August 6, 2002. The Original non-compete restrictive covenant prevented a competing grocery store facility from being constructed on EDA owned property. In order for a new Target Store to be constructed, the various parties needed to amend the original covenant with regard to modifying the noncompete provisions to meet the needs of both Festival Foods and Target. Mr. Erar explained through several months of very complex negotiation that began last year, United Properties and City staff worked with Target and Festival Foods to develop an acceptable ".-" revision to the noncompete provisions. I '- _.J The City Attorney has reviewed this document and has no legal objections to its adoption. Motion by Jacobson, Seconded by Trude, approval of the 1 st Amendment to Declaration of Restrictive Covenant. Commissioner Orttel stated there is no mention of time, which is unusual. Mr. Erar explained if Festival foods were to cease to exist, it would be twenty-four months before Target could expand to a Super Target. Mr. Erar explained this only explains what Target can and cannot do within the store. Motion carried unanimously. MARKETING STRATEGY/ANDOVER STATION NORTH Executive Director Erar explained the development of a site layout for Andover Station North is at a point where the EDA Board will need to provide some direction to staff regarding the marketing of this property. There has been and continues to be interest in developing the site by both large and small business interests. Staffhas had discussions with several interested parties that are in the beginning stages of " '\ expressing interest in either acquiring individual parcels or large-scale tracts of property to "--/ develop a master plan for the entire site. Staff would like to engage the EDA Board on this topic to being the process of determining how to deal with prospective development interests. 0 0 r-, Andover Economic Development Authority Meeting , J Minutes - June 17, 2003 -' Page 5 Commissioner Jacobson stated the more interest they have, the better for the City. Mr. Nowak agreed. Mr. Neumeister explained how the process for development would begin and how they would pick the developers. Mr. Erar stated United Properties and other developers think of the frontage area as prime space and they may want to keep this property for themselves. Commission consensus was to go with the RFP and bring a list to the EDA for additions for a good business mix. DISCUSS EDA POSITION ON LEASE REVENUE BONDS City Finance Director Dickinson explained on June 4,2003, the City Council declared its intent to support the issuance of lease revenue bonds for the new Andover Community Center. It was suggested that as the EDA will be called upon to issue the lease revenue bonds for this project, (' that the EDA should discuss its position relative to the issuance of these bonds. .~ ) The issuance of Lease Revenue Bonds by the EDA will not affect EDA fmances as debt service payments will come from a myriad of facility revenue resources, including YMCA Lease revenues, advertising, user fees, concessions, rentals and capital campaign pledges, with any differences in operating revenues and expenditures appropriated annually by the City Council through a separate City tax levy. Financial proformas prepared by the City finance department suggests that the facility will need minimal public subsidy for the fIrst several years of operation. The level of public subsidy under a Lease Revenue Bond may be adjusted annually in response to rising or declining operating revenues generated by the new Community Center. The EDA is authorized under state statute to serve as the issuing agency. OTHER BUSINESS There was none. Motion by Orttel, Seconded by Trude, to adjourn. Motion carried unanimously. The meeting adjourned at 6:57 p.m. Respectfully submitted, i ,-, I ) \__",l Susan Osbeck, Recording Secretary