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HomeMy WebLinkAboutMarch 11, 2003 0 0 ~cvv WLLtQn H-{5'-Ö 3 /-, I , CITY OF ANDOVER u 1685 CROSSTOWN BOULEVARD NW, . ANDOVER, MINNESOTA 55304. (763) 755-5100 FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US CITY OF ANDOVER ECONOMIC DEVELOPMENT AUTHORITY SPECIAL MEETING March 11,2003 - 7:00 p.m. CONFERENCE ROOM A· AGENDA 1- Call to Order 2. Approve Minutes - February 12, 2003 3. Consider Extension to United Properties Option Agreement 4. Andover Station Wetland Mitigation Plan/Revised Site Plan Ü 5. Revolving Loan Business Program (Carry over) 6. Review Special Use Permit/Andover Station/Linder's Greenhouse 7. Other Business 8. Adjourn - ; :~:) 0 0 0 CITY of ANDOVER OVER ECONOMIC DEVELOPMENT AUTHORITY MEETING MARCH 11, 2003 - MINUTES A meeting of the Andover Economic Development Authority was called to order by PresidentMike Gamache at 7:00 pm, Tuesday, March 11, 2003 at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. Commissioners Present: Don Jacobson, Mike Knight, Julie Trude, Robert Nowak, Fred Larsen Commissioners Absent: Ken Orttel, Ed Schultz (advisor to the EDA) Also Present: Lee Brezinka, Assistant Finance Director John Erar, City Administrator Will Neumeister, Community Development Director Others APPROVAL OF MINUTES ~~ Page 6, under Park Commission Recommended Ballfield Complex, Commissioner Trude asked that the second paragraph be changed as follows: "Mr. Berkowitz stated the location of the ballfields and the way they are facing is because of the sun and how the. balls are played. He also mentioned that it was Mr. Blackstad's opinion there was a possibility of changing this to a footbalVsoccer complex. MOTION by Trude, seconded by Jacobson to approve the minutes as amended, Motion carried on a 4-yes, I-present (Jacobson) vote. CONSIDER LINDER'S FLOWER MART AT FESTIVAL FOODS Mr. Neumeister explained that Linder's has requested a special use permit to allow a temporary greenhouse in the parking lot atFestival Foods. Keith Ulstad, United Properties noted that they have given Festival Foods the right to do this. They were told that as long as the city approved it they had no problem. Caio Cella, Linder's Flower Mart, stated that they are leasing the space from Festival Foods with permission from United Properties. The EDA discussed the request noting that there is a possibility of water running in the /) parking lot and dirt in the area of the flower mart. It was also mentioned that businesses such as these do not pay property taxes '---/ 0 0 / '\ EDA Meeting \ ) - March 11, 2003 - Minutes Page 2 Mr. Neumeister suggested that a one-year special use permit be issued with a review at the end of the year to see if it should be renewed for another year. Mr. Erar noted that Festival Foods is looking at this as a way to attract more customers to the area. Commissioners Gamache and Knight suggested considering the use for a one-year trial. Commissioners Trude, Larsen, Jacobson, and Nowak were not in support of the use. No action was taken. OPTION AGREEMENT EXTENSION WITH UNITED PROPERTIES Mr. Erar reviewed his staff report requesting the authority to negotiate with United Properties for a six month option extension agreement on the "release parcel" and a six month Option Agreement on any developable property created through wetland mitigation. Commissioner Trude felt that an estimate of the engineering costs would be helpful. She also felt that if the wetland were filled in, that property would become more valuable. U Commissioner Jacobson asked if the wetland replacement is 2 for 1. Mr. Erar stated that it would be two for one. Mr. Erar explained that United Properties and Ryan Companies had been meeting more than 4 weeks ago. Meetings were also held with Briggs and Morgan to discuss the non-compete clause. Preliminary discussions on whether Target could be relocated to Andover Station south were held, but only after the EDA approved : staff to proceed. Joe Samuel, RLK Kuusisto noted that they have been working with United Properties. He presented a concept plan that identifies the wetland basin and explained that they have reconfigure the entire site. The plan shows two restaurant pads and a 15,000 square foot retail building. The wetland area is 5.6 acres so 11.2 acres need to be replaced. The fIrst 5.6 acres could be replaced in-kind and the rest as a public value credit. Mr. Erar explained that a net difference of 125,000 square feet will be created in Andover Station that could generate a half million dollars in land sales, not including park dedication fees. The area in Andover Station North is already area that was identified as wet area. The property located under the power lines is useless as nothing can be built on the easement. Mr. Erar stated that this was considered to be a win/win situation for the EDA as United Properties has agreed to underwrite all engineering and development costs associated with wetland mitigation in Andover Station. The EDA would only need to provide land for off-site mitigation in Andover Station North. :) Commissioner Jacobson was under the impression that the northeast corner of Andover Station North could have nothing on it because of the landfill. Mr. Erar stated that he and () () ,r', ",~,J EDA Meeting March 11, 2003 - Minutes Page 3 the City Engineer had met with the MPCA and they don't have any objections to certain types of features being incorporated into that area. Discussion continued on the reasons Target should build in Andover Station rather than in Andover Station North. Commissioner Knight was concerned that if Target does not go in Andover Station North there will be nothing there to attract other businesses. Keith Ulstad stated that in order to get Festival Foods in the EDA approved deed restrictions for Andover Station and Andover Station North that included the fact that a grocery store could not locate in either plat. In order for Target to go in, they have to be satisfied, United Properties has to be satisfied and Festival Foods has to be satisfied with the type of store they would build. He noted that he has be,en meeting with both Target and Festival and they are getting close to a deal. He did note that Target would defInitely not build in the north area. Commissioner Knight stated that the ponds were to be considered amenities with " boardwalks and trails. Mr. Erar noted that those items could still be a part of the design. V Commissioner Nowak asked why the lower pond in Andover Station couldn't be moved to Andover Station North. Mr. Ulstad explained that it's not a wetland but a storm water pond. Mr. Erar stated that the EDA could either go with this plan or stick with the original vision and wait it out. The nice part of this plan is that there is no capital outlay for the EDA. Commissioner Trude again stated that the EDA needs to see estimates of the costs. She asked if we are going to sell land at the same price as three years ago. She feels there is some tax benefit in having Target here; however, there is a lot of economic information missing. Commissioner Jacobson agreed that the EDA needs to see a balance sheet showing what we will be getting and what United will be paying. President Gamache stated that he is in favor of extending the option and would like to see us get this going. Commissioner Trude suggested holding a special meeting prior to the next Council meeting to review balance sheets. Mike Mulrooney thought that asking for the numbers is heading in the right direction. If the ponds can be turned into an amenity instead of just holding ponds it will be a nice plan. He noted that the EDA isn't approving the site plan tonight but approving an :.J extension to the option agreement. MOTION by Jacobson, seconded by Nowak that we agree to extend the option agreement for six months based upon the written materials we have and the points that are listed in r- ..-, : ì '-./ \. ./ EDA Meeting J March 11, 2003 - Minutes Page 4 the staff report but with the consideration that if Target does not go in, United Properties comes back to the EDA immediately and both agree that we re-negotiate at that point the extended option if need be. Discussion: Commissioner Trude didn't feel certain she has enough information to know if the price is correct for the new land. Motion carried unanimously. REVOL VING LOAN PROGRAM - ADDITIONAL INFORMATION The EDA discussed whether to provide fmancial assistance to local businesses in the form of a loan. The loans would not be granted by the EDA unless a financial institution is involved in the development project. Loans would be a maximum of $100,000 to any company. Lee Brezinka, Assistant Finance Director, explained that the money for the loans would come from our investment pool, not fÌ'om the general fund. He noted that there would be a lot of paperwork for staff. Consensus of the EDA was that the EDA should not become a lending institution. '-- ' MOTION by Jacobson, seconded by Nowak to discontinue the revolving loan program proposal. Mike Mulrooney - suggested the EDA look at a participation loan program where you work with local lenders to buy down the interest rate. That can eliminate a lot of the risk and the bank would make the decision on whether to grant a loan. Vote: Yes - Jacobson, Nowak, Knight; No - Gamache, Trude President Gamache asked staff to prepare information on the participation loan program. MOTION by Jacobson, seconded by Knight to adjourn. Motion carried unanimously. Meeting adjourned at 9: 15 pm. Respectfully submitted, j:¿. ()Jj¿ Vicki V olk, City Clerk , ...--j ,