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HomeMy WebLinkAboutFebruary 12, 2003 '-, 0 u , '\ CITY of ANDOVER '-.J ANDOVER ECONOMIC DEVELOPMENT AUTHORITY MEETING FEBRUARY 12, 2003 - MINUTES A Meeting of the Andover Economic Development Authority was called to order by President Mike Gamache (arrived at 7:45p.m.), February 12, 2003, 7:46 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. Present: Commissioners Don Jacobson, Ken Orttel, Julie Trude; Fred Larson (arrived at 7:54) Absent: Commissioner Mike Knight; Commissioner Robert Nowak; and . Non-voting resident member Edward Schultz Also present: . Executive Director, John Erar Community Development Director, Will Neumeister City Engineer, David Berkowitz City Finance Director, Lee Brezinka Others \ '0 The meeting unofficially started at 7: 1 0 p.m. ANDOVER STATIONASSOCIATION -MAINTENANCE AGREEMENT PLAN This was an informal discussion that started at 7: 1 0 p.m. because a quorum was not present. City Engineer Berkowitz explained staff has been working with representatives from the 116 LLC Group and United Properties to. create a maintenance plan and cost allocation for the Andover Station development area. Mr. Berkowitz discussed the maintenance plan and budget impact with the Commission. Motion by Trude, Seconded by Orttel to move the maintenance agreement. Motion carried unanimously. ANDOVER STATION RESIDENTIAL SITE Mr. Keith Ulstad, United Properties, stated he has been working with Mr. Greg Schlink of Bruggeman Homes. He presented color photos of projects and a site plan for proposed town ,., '\ homes. ,,-) Commissioner Trude stated she has seen some of the homes and they looked nice. Commissioner Jacobson asked what the price range would be. Mr. Neumeister stated the starting 0 0 Andover Economic Development Authority Meeting ,- ---\ Minutes - February 12, 2003 ) Page 2 ,_J point would be in the mid $I70's and he stated he talked about adding more brick to the homes and if the fire codes change, they will need to have sprinkler systems installed in the townhomes, which was previously discussed with the developers. Commissioner Trude stated the biggest issue with all the developers involved environmental issues. Mr. Ulstad stated they discussed this with Bruggeman Homes so they are aware of the history of the land, what the EDA would cover and that there would be a three-year build out. The Commission asked if they could get the address of the development in Forest Lake to be able to look at the townhomes. Mr. Mulroney stated he thought Bruggeman was a very good builder who is willing to do upgrades. He stated he met with Mr. Ulstad and another group called the Hartford Group in Eden Prairie. Mr. Ulstad discussed the company with the Commission stating they are a mixed-use company. Mr. Mulroney stated the Hartford Group is interested in this site. Their homes would have commercial/retail with townhomes on top of them with structured parking underneath the building. ,"\ "\..J President Gamache arrived at 7:45 p.m and officially started the EDA meeting. AGENDA APPROVAL MOTION by Jacobson, Seconded by Orttel, to approve the Agenda. Motion carried unanimously. APPROVAL OF MINUTES December 17, 2002: Approved as corrected. Commissioner Trude indicated on the 2nd page of the minutes, last paragraph, the sentence should read ''there was a high level of turnaround of ownership in reference to the Ryland project." Instead of". . . all the people that have looked at this property have wanted to build higher level homes and : the reason they have had so much turnaround is because they are trying to bring in affordable entry level housing. If they can get the higher housing in, she did not think they '.vould have this æD:m.H1t of tumaroood. Commissioner Trude also wanted to add to the last part of the sentence, ''the turnaround of owners .r, would impact long term property value." '..J Commissioner Trude indicated on page three, third paragraph from the bottom, the sentence should read "Commissioner Orttel asked if they extended their financial agreement financial guarantee with 0 0 ,- '\ Andover Economic Development Authority Meeting \..J Minutes - February 12, 2003 Page 3 the developers." MOTION by Trude, Seconded by Orttel, approval of the Minutes as corrected. Motion carried unanimously. ANDOVER STATION/COMMERCIAL REDEVELOPMENT PROPOSAL - RYAN PROPERTIES Executive Director Erar introduced Mr. Palmquist with Ryan Companies who presented a concept plan regarding the relocation of their client, Target Company, to Andover Station. Ryan Companies has expressed great interest in discussing this relocation as they feel this is a more appropriate location for their client in terms of street access, visibility, traffic counts, site improvements and other related marketing considerations. Mr. Erar stated they have had staff meetings with Mike Kelly of the Coon Creek Watershed District and they would be willing to move the wetland to another part of the site or offsite. ~ . Commissioner Jacobson asked how this building would compare to the building in the Riverdale area. Mr. Palmquist stated it would be about the same size. (Commissioner Fred Larson arrived at 7:54 p.m.) Commissioner Jacobson stated he had a concern with the number of Target stores being developed in the area. Mr. Palmquist stated the number of stores is based on consumer want. Commissioner Trude stated she has had residents ask her why they would need another Target in the area, why not look for something different. Commissioner Jacobson asked why they have abandoned the site to the north of Bunker Lake Boulevard. Mr. Palmquist stated there are a couple of things that make the site at Andover Station more appealing to them. There is the appeal of other retail in the area and the aesthetics of the site. He stated the issue of the substation is a concern and also the look and feel of Target , , stores. Commissioner Trude asked if they could place Target on another spot on the Andover Station North site. Mr. Palmquist stated they have discussed this and they did not believe it would work. There was more discussion involving the wetland area and the differences between the two sites Target is looking at. CJ Lee Brezinka, Assistant Finance Director, presented the budget and beneficial impact to the EDA in regard to selling the land. He presented three comparisons: Original, Target and Retail shops revenue. 0 0 ') Andover Economic Development Authority Meeting \....J Minutes - February 12, 2003 Page 4 Commissioner Orttel asked what would happen to the north section of Andover Station if Target went into the south side. Mr. Neumeister stated he had a call in regard to possibly putting in a strip mall in the northern area of Andover Station. Discussion ensued regarding placement of the buildings and what could be built on the property that is developed. Commissioner Jacobson stated developing Target on the south side of Andover Station seems to destroy the entire concept that was envisioned from the beginning. Mr. Erar stated they are trying to deal with some market realities and people want things centrally located and they are trying to provide a market where people can shop in one area and get their shopping done quickly. Mr. DIstad stated he would not build any more speculative space without an anchor store in the area because it would take too long to get the space leased out. Commissioner Jacobson stated Andover has certain architectural standards for developments and " '\ he questioned how Target would comply if they want all their stores to look alike. Mr. Palmquist ~-~ stated even though they want every Target to look alike, they still comply to each city's standards so it makes every Target unique. Discussion continued regarding the Target site and wetland area. Mr. Mike Quigley stated they have been waiting a long time for something to go in and feel Target will be an asset to their property. He felt this would bring traffic in to support the restaurant and movie theater. Commissioner Trude stated she talked to Marie Arthune from the grocery store and she felt she would lose out on paper and a few other items but felt this would be an aSset because it would bring traffic into the area. President Gamache, Commissioners Orttel and Trude and Larson stated they were in support of this and Commissioner Jacobson was not sure. Commissioner Trude stated they need to allow Commissioners Knight and Nowak to take a look at this and make a decision. Mr. Mulroney stated when a Target comes into a community, it is like a stamp of approval and he thinks it would be an asset. He would like Target to think of Andover more like a southern suburban rather than a northern suburb and design it with the same type of materials they would use in the southern suburbs. Mr. Mulroney showed a chart of property valuations by type and discussed this with the EDA. , " ~'--) Commissioner Trude stated they need to talk to Mr. Kelly more in regard to the wetland because they do not want to end up with small areas for development. Commissioner Trude stated she has an adult daughter who works part time for Target and the 0 (.J / '] Andover Economic Development Authority Meeting \...-J Minutes - February 12, 2003 Page 5 City Attorney stated this would not be a conflict of interest for her. Mr. Erar stated they had a consensus that was not unanimous to move forward with this development and to further investigate the wetland issues. ANDOVER STATION NORTH City Engineer Berkowitz explained the EDA directed Short Elliott Hendrickson, Inc. (SEH) to prepare a Feasibility Report (phase I and Phase 11), Signal Justification Report (139th Lane and Hanson Boulevard), Traffic'Impact Study and Phase II environmental Site Assessment (ESA) for the proposed Andover Station North Development. Mr. Berkowitz introduced Mr. Todd Blank of SEH who presented these reports to the Commission. . Site Layout Scenario and Environmental Phase II Report Findings ,- '\ \,,"; Mr. Blank discussed the site layout with the Commission. He stated there was a feasibility study done on the site and they had meetings with Mr. Kelley of the Coon Creek Watershed District in regard to the wetlands. With the traffic impact study they took a look at the proposed uses. He stated there would be approximately 12,000 vehicles per day on the north end of the site and 15,000 on the south end of the site. He discussed what impact the development would have on the existing area. Within twenty years, the County is planning to improve Bunker Lake Boulevard and Hanson up to 139th Avenue. Commissioner Jacobson asked if the City would be required to pay for some of the improvements. Mr. Berkowitz stated they would be responsible to pay for some of the costs associated with widening Hanson and the dual left turn lane onto Jay Street would be the city's cost. Discussion was brought up regarding the ball field complex and the sliding hill. There was additional discussion with the quality of the material on the property and if that could be used for fill. Discussion continued regarding the site layout scenario. Mr. Blank stated there is some petroleum contamination based on testing, extending seven feet deep on part of the site and this would need to be taken care of before any development could occur. /' " Mr. Blank explained the proposed street improvements of the site. ~,J Commissioner Trude asked ifPov's knew about the proposed development of the surrounding land. Mr. Berkowitz stated he did not think they did. Commissioner Trude stated the City should discuss this with them because development could start this year. Mr. Neumeister stated 0 0 .-..., Andover Economic Development Authority Meeting \.J Minutes - February 12, 2003 Page 6 in regard to the timing of this, none of it would go unless there is someone interested in building on the land or if they could develop this in phases. Discussion continued in regard to the development of the site and drainage system. Mr. Berkowitz stated the estimated costs of the improvements for the entire project of phase one and two would be over four million dollars. The costs would include all indirect costs including some contingencies. Mr. Neumeister stated the numbers are large so they need a driving force behind this before they begin developing this. They also need to move fill onto the land before , they can develop the site. I ¡ . EA W Study - Executive Summary Community Development Director Neumeister explained that staff has been working with Short Elliot Henrickson (SEH) to prepare an Environmental Assessment Worksheet (EA W). Mr. Neumeister discussed the EA W with the Commission. , '\ '.-.1 Motion by Trude, Seconded by Orttel to approve the advertisement and release of the EA W document. Motion passed unanimously. . Park Commission Recommended Ballfield Complex Mr. Berkowitz explained the Park and Recreation Commission has given final approval to the preliminary layout of Andover Station North Outdoor Athletic Center. He stated he talked to Mr. Blackstad on the Park Commission and Mr. Blackstad asked him to mention a few things about the complex. Mr. Berkowitz stated the location of the ballfields and way they are facing is because of the sun and how the balls are played. He also mentioned there was a possibility of changing this to a football/soccer complex. The construction would probably take place in 2005 so there would be time to decide what to actually put there. Mr. Berkowitz stated construction estimates for this site would be in the range of 1.5 million dollars. Mr. Lindahl :from the Andover Park and Recreation Commission reviewed the site layout with the Commission. / ) Commissioner Trude stated they needed to watch the depth of the collection pond next to the '--../ park and if they would need to fence it in. Mr. Lindahl stated to put a fence around it would be a waste and detriment. He stated a buffer would be doable. · ,...-- ì (J '-../ " Andover Economic Development Authority Meeting \ , , - Minutes - February 12, 2003 Page 7 REVOLVING LOAN PROGRAM -ADDITIONAL INFORMATION Executive Director Erar explained a request was made to the EDA to consider providing fmancial assistance to a local business in the form of a loan. The EDA directed staff to research a revolving loan fund. Mr. Erar discussed the loan program with the Commission. Mr. Larson stated small businesses are very volatile and he was not sure about this because it is risky. Commissioner Jacobson stated he talked to Commissioner Knight and neither of them would be interested in something like this. Commissioner Trude stated she was in favor of this because it has worked in other cities she has been in. Commissioner Orttel stated it could work but is not for every type of business. He stated he would like to have the entire board at the meeting before decisions were made. Mr. Erar stated this could be brought back to the next meeting. OTHER BUSINESS / \ There was none. \...../ Motion by Trude, Seconded by Jacobson, to adjourn. Motion carried unanimously. The meeting adjourned at 10:30 p.m. Respectfully submitted, Susan Osbeck, Recording Secretary ,- -, , \J