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HomeMy WebLinkAboutJune 3, 2003 0 0 CE\.;\J.L;t:.- QQ./ ~ 0-l1-e3 CITY OF ANDOVER C) 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 June 3, 2003 - 6:00 p.m. CONFERENCE ROOM A AGENDA 1. Call to Order 2. Approve Minutes - April 15, 2003 3. United Properties Commercial Site Verbal Update - Planning 4. Receive Verbal Update on Andover Station Residential - Planning 5. Receive Verbal Update on Andover Station North Mitigation Plan- U Engineering 6. Discuss Lease Revenue Bonds (Supplemental) - Finance 7. Receive Update onEDA Property Acquisition of Great River Energy Site - Planning 8. Other Business 9. Adjourn /""' \0 u 0 '\ CITY of ANDOVER 0 ANDOVER ECONOMIC DEVELOPMENT AUTHORITY MEETING JUNE 3, 2003 - MINUTES A Meeting of the Andover Economic Development Authority was called to order by Vice President Trude, June 3, 2003,6:02 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. Present: President Mike Gamache (arrived at 6:03 p.m.); Commissioners Don Jacobson, Mike Knight, Ken Orttel, Julie Trude; and Voting resident members Fred Larson (arrived at 6:13 p.m.). Absent: Voting resident member Robert Nowak; and Non-voting resident member Edward Schultz Also present: Executive Director, John Erar City Planner, Courtney Bednarz City Engineer, David Berkowitz Finance Director, Jim Dickinson '\ Others 'J APPROVAL OF MINUTES April 15, 2002: Correct as written. MOTION by Jacobson, Seconded by Knight, approval of the Minutes as written. Motion carried unanimously. President Gamache arrived at 6:03 p.m. RECEIVE VERBAL UPDATE ON ANDOVER STATION NORTH MITIGATION PLAN , City EngineerBerkowitz explained RLK has been working withUnitedProperties to put the plan together. This was presented to Tim Kelly at the Coon Creek Watershed; he then brought it to the TEC (Technical Evaluation) Panel which looked at this in a favorable way. TheWetland they are taking from Andover Station will go to Andover Station North: Mr. Berkowitz explained the Watershed has requested that they either apply for a formal ,~ approval or they give a presentation to the TEC Panel and he felt that once it is fme tuned, they will give a presentation to the TEC Panel. He explained it is their evaluation that goes to the Board for approval. Mr. Berkowitz stated the only drawback is the wetland that is proposed for the northeast corner 0 ü , \ Andover Economic Development Authority Meeting 0 Minutes - June 3, 2003 Page 2 of the property may not be a favorable location due to the hydrology. There is not a lot of drainage that goes to that area and to develop a wetland into a good healthy wetland, water has to drain to it. He explained that they may need to look at those 3.5 acres to be moved to another location on site or add to the existing wetlands. He explained RLK suggested they sit down with SEH to make sure that what they do does not impact future development ofthe area. Commissioner Trude asked if they looked at the parcels to make sure they will not be losing retail space. Mr. Berkowitz stated they have. Commissioner Knight asked what was left in the south site for storm water drainage. Mr. Berkowitz stated the south side would handle just the storm water drainage and run off. Commissioner Knight stated the southern ponds are no longer an amenity in the site plan. Mr. Berkowitz stated in the site plan, they do show amenities like trails and landscaping around it. Mr. Erar stated the amenities that were originally recommended are still in place, there is just a . reconfiguration of the ponds. Commissioner Knight asked how much water there would be. Mr. Erar stated there would be a r\ large area of water. Commissioner Trude asked if they were looking at a large cup or a shallow V saucer because they would be looking at a safety issue with retail in the area. Mr. Berkowitz stated they have only had a chance to look at the site plan so they do not how what the cuts are and how deep the ponds will be. Mr. Erar stated the water table will be the same. Mr. Berkowitz explained the ponds would be holding ponds and they will make use of the area. Commissioner Jacobson noted the Povlitski property would have to take care oftheir own storm water drainage. Mr. Berkowitz stated this was true. Commissioner Jacobson asked with this plan were they figuring in the drainage for the entire ! site, including the bank. Mr. Berkowitz stated they were. Voting Resident Member Larson arrived at 6:13 p.m. Commissioner Trude stated at one point there was mention of Prairie Knoll Park and asked if this was included in the plan. Mr. Berkowitz stated it was not. Commissioner Trude asked if the wetland in Prairie Knoll Park that was not included could be a potential wetland area because it already includes a wetland that was not counted. Mr. Berkowitz stated that was true. Commissioner Trude stated she would prefer they not go into the parks. UNITED PROPERTIES COMMERCIAL SITE VERBAL UPDATE r-" U Mr. Keith Ulstead of United Properties updated the Commission on the Target project. Mr. Ulstead explained the documents are circulating and will get signed and put it in escrow. He 0 0 ,r'-) Andover Economic Development Authority Meeting '\.....J Minutes - June 3, 2003 Page 3 stated the other main piece is the purchase agreement with Target. They met with them and Ryan Companies earlier in the week and the lawyers are busy redrafting papers and they will close directly with Target. Their timing is subject to getting the approvals and platting done to close on the property in mid August and to get their footings in the ground before the frost, build in the mid winter and open next summer. Mr. Ulstead stated Target made some concessions in regards to Knowlans. He stated at the June 17th meeting, there will be a presentation regarding this project. They have had several meetings with City staff over the last month to work out any problems. Commissioner Trude asked ifthis would include options. Mr. Ulstead stated there have been several options discussed and there are certain givens. Target is a big box that cannot change and they need a certain amount of parking and RLK has told them that they need a certain amount of ponding. He stated the options they have are what the boardwalk looks like, what kind of light fixtures and the landscaping plan. Mr. Ulstead stated there are not a lot of options to look at. Mr. Erar stated Target would meet all of Andover Station's design guidelines and they need to have access coming in and out of the site from ('~\ Quinn as well as Martin Street. They have not seen the full color layout of the site and they will ",J strive to achieve what the Board envisions. Mr. Ulstead stated they will be bringing in a plan that would accomplish Target's needs, United's needs and the City's needs. Based on all of the meetings with staff, there will be some items that cannot be achieved. Commissioner Jacobson asked what kind of a Target it will be. Mr. Ulstead stated it would be a Target Greatland. Commissioner Knight stated he did not want it to look like a North Dakota Prairie in the front of the building. Commissioner Trude stated she thought the landscaping would be more important around the buildings than the buildings themselves. President Gamache asked if they were still looking at a restaurant on the comer of Bunker. Mr. Ulstead stated they are. RECEIVE VERBAL UPDATE ON ANDOVER STATION RESIDENTIAL Mr. Ulstead explained they are working with Brueggeman on a purchase agreement on the site. '\ He will hopefully have the purchase agreement signed by June 17th. He explained that there is V wording regarding environmental issues and he believed this was due to Bruggeman's lawyer being cautious and not being up to date on what the City has done with the site. He stated the only problematic piece with the Bruggeman plan is they feel they were pushed pretty hard on price and they would like to take down a portion of land this fall and build eight units and market 0 0 Andover Economic Development Authority Meeting " '\ Minutes - June 3, 2003 , .' Page 4 ,--. and sell the units and then construct the rest in the spring of next year. He stated this was problematic because his option with the City was an all or nothing deal and someone has to sit on the land over the winter and no one wants to own a non-income producing piece of land. He was not anxious to buy the entire piece from the City and then have Bruggeman buy a piece from him so he is trying hard to have Bruggeman purchase it all. Commissioner Jacobson stated because the design of the Bruggeman property is substantially different than before, it was suggested they have an informal meeting with the people behind the property. He wondered if this was done yet. Mr. Bednarz stated there is a neighborhood meeting on June 12th in the Council Chambers at 6:00 p.m. DISCUSS LEASE REVENUE BONDS (SUPPLEMENTAL) City Finance Director Dickinson stated if the City Council decides to go ahead with the Community Center Project and elects to go through lease revenue financing, the EDA will be involved because the City Council will ask the EDA to fund a bond for this. Mr. Dickinson explained thirty years is the maximum fmancing that can be done on a Lease r \ Revenue Agreement. One million or more is included in the City's debt limit. He stated their "0___ J current legal debt limit is around thirty million and what they are using at this point is only for the equipment bond purchases and the public works facility. They currently have three to four million of the legal debt limit used. Commissioner Trude asked ifthe bonds for TIF Projects were included in this. Mr. Dickinson stated the TIF Bonds were issued by the City and are put out there as revenue bonds and they have increments coming in to payoff the bonds in the future so these are not assigned to the debt limit. Ifthey did not have revenues or they started projected shortfalls and had to go out a levy for a portion of it, then they could come into the levy limit. He explained the chances of this happening with the City's current structure would be zero to none. Commissioner Jacobson asked if they were looking at thirty years for the bonds. Mr. Dickinson ¡ stated they were. Mr. Dickinson explained the structure of the bonds can be complicated. Tax exemption rules still apply. This will be a 503c qualified issuance because the YMCA will be involved. Mr. Dickinson stated some of the issues historically taking place on these structures is how they would handle remodeling in the future and this should be handled up front. /'\ Mr. Dickinson explained trustee and indenture is they will have an outside trustee managing the , ,---,J capitalized interest and they want to make sure the investors are protected. They have to have a trustee to have the market to buy into it. ; C-) ./~ -/ '.....J Andover Economic Development Authority Meeting f -, Minutes - June 3, 2003 ) Page 5 Commissioner Jacobson stated the land would be leased out by the City and asked if we would need to put this into a legal document. Mr. Dickinson stated this would be something that could be drawn up in a legal document. Commissioner Knight stated that when lease revenues go over the ten million mark, it puts up a red flag at the State. He asked what this means. Mr. Dickinson stated the Lease Revenues are filed with a lot of entities and flags can appear. He does not see this as a problem. RECEIVE UPDATE ON EDA PROPERTY ACQUISITION OF GREAT RIVER ENERGY SITE City Administrator Erar explained John Dahl of McKenzie Metro Appraisal recently updated the appraisal that was done about one year ago for a portion of the Great River Energy property located along Bunker Lake Boulevard. The appraisal takes into account the existence of power line easements and the land that was dedicated for Bunker Lake Boulevard. Mr. Erar discussed the appraisal information with the Commission. ( '~\ Mr. Erar explained staffhas evaluated this and recommends the EDA not move forward on this purchase due to the cost and the constraints. They could still have an option with Great River Energy to approve anything that goes on the site. He thought it was still worthwhile to go forward to see if Great River Energy would be open to an option. Commissioner Trude stated having some control over this property would be beneficial. After discussion, the Commission authorized Mr. Erar to negotiate with Great River Energy for : an option. Commissioner Jacobson stated he had a conflict of interest so he decided to remain present for discussion. OTHER BUSINESS There was none. Motion by Orttel, Seconded by Johnson, to adjourn. Motion carried unanimously. The meeting adjourned at 6:59 p.m. : , "'\ '~,: Respectfully submitted, Susan Osbeck, Recording Secretary