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HomeMy WebLinkAboutMarch 6, 2002 u U \J CITY OF ANDOVER 1685 CROSSTOWN BOULEVARD N.W.. ANDOVER, MINNESOTA 55304. (763) 755-5100 FAX (763) 755-8923 .WWW.CI.ANDOVER.MN.US ECONOMIC DEVELOPMENT AUTHORITY MEETING WEDNESDA Y, MARCH 6, 2002 - 5:45 P.M. CONFERENCEA , AGENDA 1. CALL TO ORDER 2. UNITED PROPERTIES - OPTIONS AGREEMENT 3. ENVIRONMENTAL INDEMNIFICATION '\ . AGREEMENT -Hans Hagen Homes '-~ 4. DISCUSS OFF-SALE LIQUOR STORE. RESTRICTIONS 5. WDE SITE - VERBAL UPDATE 6. GREAT RIVER ENERGY PROPER TIES - VERBAL UPDATE 7. COMMERCIAL BOULEV ARD ~ RENAMING (If Time Permits) 8. SCHEDULE NEXT MEETING , . 9. ADJOURN :J - u ' \ U 0 CITY of ANDOVER ANDOVER ECONOMIC DEVELOPMENT AUTHORITY MEETING MARCH 6, 2002 - MINUTES A Meeting ofthe Andover Economic Development Authority was called to order by President Mike Gamache, March 6, 2002, 5:48 p.m., at the Andover City Hall, 1685 Crosstown Boulevárd NW, Andover, Minnesota. Present: Commissioners Don Jacobson, Ken Orttel, Julie Trude; Voting resident members Terri Hokanson; and Non-voting resident members Fred Larson and Edward Schultz Absent: Mike Knight, Robert Nowak , Also present: Executive Director, John Erar CommunityTIevelopment Director, Will Neumeister City Finance Director, Jim Dickinson City Attorney, William Hawkins Others '\ '---/ UNITED PROPERTIES - OPTIONS AGREEMENT Mr. Erar stated that during the course of staff review of the commercial site plan submitted by United Properties for Andover Station, it was, discovered that additional land was needed by the developer to allow for the construction of Quinn Street. Under the terms and conditions of the development agreement, Section 3.3, United Properties was required to construct a private street Le. Quinn Street to allow for internal access to the commercial site. Mr. Erar stated that the additional property required by United Properties had been surveyed and amounted to approximately .94 acres or 40,946.4 square feet. He stated the additional land sale would generate approximately $131,028.48 for the City's Economic Development Authority. Mr. Hawkins stated that the best way to handle this was to amend the contract. He stated that there were some recent changes to the contract and he had not agreed to all of them. He stated that on page two, paragraph four, exhibit B, United Properties wanted to move the closing date back to Friday, April 19, 2002 and to also have a simultaneous closing with Hans Hagen. Mr. Hawkins stated that on page two, exhibit C, the price and terms are different. They would need approximately nineteen acres, so they figured another acre would be adequate to allow for CJ the private roadway. They had a Performa done and were told they would need a total of twenty acres. Mr. Hawkins stated they proposed the amend option and to pay for the extra acre then. He stated they altered the.terms in the contract by adding an additional option price, which would be spread ( -- ,- ~ u u - \ Andover Economic Development Authority Meeting ~) Minutes - March 6, 2002 Page 2 out. If they exercise the option, they would pay the extra price but they would not pay until March 2003. Mr. Dickinson stated that by allowing this, the City would lose $6,300.00 in interest. Mr. Erar stated Bruce Carlson was who they were working with and they stated that United Properties could not go back to the bank and grocery store and ask for more money for the additional price of the land. He stated they would need a bigger parking lot and more land to plat the road. He stated the sale price would be $3.20 a foot with a twelve-month option and they want use of the road until March 2003 without paying for it until then. Mr. Hawkins stated this issue would not be a deal breaker. Commissioner Orttel stated they should wait and see ifthe environmental part of the agreement could be a leverage point. Mr. Orttel stated the $6,300.00 in interest lost should be calculated into the final price payable in --- March 2003. He did not feel the City should give them rree use of the land. Mr. Hawkins stated that the Commission should agree to defer payment until March 2003 with a negotiated interest rate. 0 Mr. Hawkins stated that another change was on page 3, partial take down. He stated United Properties requested to pay for part ofthe land for partial use as they move along. He did not like this part and felt the Commission should delete this. ENVIRONMENTAL INDEMNIFICATION AGREEMENT-Hans Hagell Homes Mr. Erar stated that his office had been notified by Hans Hagen Homes, Inc. requesting the approval of an environmental undertaking agreement that would effectively indemnify the developer rrom any business loss during the construction should contaminated soils be discovered, as well as mitigate their liability resulting rrom future potential residential claims arising rrom the soils correction activities that occurred on the Andover Station site. The ; provision provided by this prospective agreement would reinforce existing requirements that the EDA would cooperate in the event contamination is encountered in the course of excavation and construction and that any costs associated with remediation are borne by the City. Mr. Erar stated that in discussions with Mr. Hagen, staff had previously indicated that the City would be willing to indemnify the developer to a certain degree given the history of soil corrections work on the site. A review of site clean-up activities indicated that the City had received an MPCA Commissioner's Certificate of Completion of Response Actions under the /-", Land Recycling Act of 1992. This certificate also provided that the City was qualified to obtain ) protection rrom liability provided by the Land Recycling Action of 1992. \J . , \ ,. \ - U u' :_) Andover Economic Development Authority Meeting Minutes - March 6, 2002 Page 3 Staff recommended the Executive Director and City Attorney negotiate an acceptable Environmental Agreement between the City of Andover Economic Development Authority and United Properties on the Andover Station Site. Mr. Hawkins stated that in paragraph six of the agreement, it talked about indemnity. He wanted to know what would they indemnify them for. He stated they did come up with some language in case of contamination, how the City would respond. The agreement indicated that if United Properties did find contamination and the City did not act in a reasonable manner, then United Properties might have a claim on the City. He stated United Properties could do the work themselves and seek indemnity with the City for the cost incurred. Mr. Hawkins stated that in the final agreement, ifthe environmental cleanup exceeded the limits of Minnesota Statute 466, the City would waive the limits so the City would pay the cost above the limit. Commissioner Orttel asked that ifthere would be pollution, could the deal then be broken. Mr. Hawkins stated that the EDA did not have any assets except the property. '--) Commissioner Trude stated that in the agreement the EDA and the City are mingled. Mr. Hawkins stated the agreement would be signed by the EDA and the City was not involved in the project. Commissioner Trude stated that she liked the idea of a remedy of solutions, a way to break the agreement and pay them any costs so far. Mr. Erar stated that they had already received a certificate from the MPCA. He stated the EDA was not a part of the contamination. They bought the property from someone else and if contaminated, this would go back to the original owners. Commissioner Orttel stated if it could be established that they could not take money from the City, he would be willing to agree to this. Mr. Hawkins stated this was why cities set up EDA Commissions. Commissioner Jacobson asked what the time limit was on any contamination claims. Mr. Hawkins stated that it would be one year from a certificate of completion from the City. Commissioner Jacobson alerted the EDA to a typo on the draft. On page one the name should be Best Auto Parts. Commissioner Orttel stated the entire property had been graded and there should not be anything else out there. Mr. Erar stated that a Phase I environmental study was done and they found an old .' ì oil drum on the property and the EDA would be cleaning this up. \.J Commissioner Trude stated that someone must have dumped the drum there recently because when they took their tour of the site, there was not a drum there. Mr. Erar stated that it looked like someone dropped the drum off and tried bury it. . l) /-, . V " '\ \.-..) Andover Economic Development Authority Meeting Minutes - March 6, 2002 Page 4 Mr. Hawkins asked if the EDA thought there would not be much risk. Mr. Dickinson stated that they could buy separate insurance coverage for the EDA to cover this with a $1,000,000.00 limit. Commissioner Trude stated they would need to check on the limits and what would be included. Commissioner Orttel stated that the amount should be limited to the value ofthe land. Mr. Erar stated that Hans Hagan would probably have a problem with this, because they would state they put a lot of time and money put into this. Mr. Hawkins stated that he could not concede a claim to be over $1,000,000.00. Commissioner Orttel stated that if they signed the agreement as written, all they would be doing is giving them good faith because all the EDA had for assets was the property. Mr. Hawkins stated that he did not like how this was written. The EDA agreed. Commissioner Trude stated they should word this to state they would only pay for the cost of clean up. '\ '--) Mr. Erar stated that Mr. Hagen was a little concerned with the environmental issue because of the future property owners and a possible class action lawsuit. He stated that there was no contamination found on the property to date. He stated they were not willing to waive liability limits and should come up with a solution. Commissioner Trude stated that she wanted to come up with a good solution, because she wanted to keep a good relationship with the developer. Mr. Erar stated that he did not want the EDA to go against the attorney recommendation, but the developer (Hans Hagen) was very nervous about this issue. He stated that he was not pushing the EDA to sign the agreement. Mr. Hawkins stated the only change to paragraph 7 was adding a legal description. He stated the Covenants would need to include voting and the current businesses would need to be included in the association agreement because of the landscaping and trails. Commissioner Trude asked if there would be a need for the EDA to meet before the closing if some of the issues were not resolved by then. Mr. Erar stated that they could have another meeting before the closing. Mr. Erar stated the recommendation would be to approve the revised options agreement as (J attached allowing United Properties to purchase additional property for the construction of Quinn Street. . (-) () ~/ ') Andover Economic Development Authority Meeting '--- ' Minutes - March 6, 2002 Page 5 DISCUSS OFF-SALE LIQUOR STORE RESTRICTIONS Mr. Erar stated the EDA had discussed issues regarding the permitting of multiple off-sale liquor stores in the concentrated commercial area. The Executive Director had been directed to provide additional information on regulatory authority. Mr. Erar stated that while state statute did not regulate the number of off-sale liquor licenses a city may issue, it did allow municipalities to locally regulate off-sale liquor store operations. He stated that in review of neighboring communities, staff had prepared a brief survey of neighboring communities. Mr. Erar stated that in discussions with City Attorney Bill Hawkins, it was indicated that off-sale liquor stores did not typically result in additional City enforcement actions as the product was purchased for off-site or home consumption. He stated the City Council had the flexibility to impose restrictions as it deemed appropriate. He stated that of the cities surveyed, the Council had the following options: " '\ 1. Develop license restrictions based on radius locations; given the limited and , \~J concentrated commercial retail land areas remaining in the City, this may essentially preclude more than one liquor store from locating the Andover StationlWDE area. 2. Develop license restrictions based on population. 3. Develop license restrictions based on construction valuation; this would create economic barriers to more pedestrian liquor store retailers and allow the City Council/EDA to be more selective in choosing preferred off-sale liquor store retailers while guaranteeing certain architectural and building construction standards. 4. Develop license restrictions based on a combination of factors. 5. Status Quo; Allow market factors to determine the economic sustainabilityof multiple off-sale liquor stores that would also facilitate consumer competition. Mr. Erar stated that given the interest by multiple developers in locating off-sale liquor stores in the WDE and Andover Station sites, EDA Board discussion was requested regarding the nature of preferred off-sale liquor license restrictions. A recommendation by the EDA would then be advanced to the Planning and Zoning Commission for review and comment, with final consideration and action by the City Council. Commissioner Trude stated the only restriction lacking was the location of liquor stores by day care, schools and churches. Mr. Hawkins stated that in other communities there had not been a problem with off-sale liquor Ü and people getting drunk because with off-sale the buyer would take the liquor home to drink. Mr. Erar stated that the EDA would need to make some regulations regarding the off-sale liquor stores. . · 0 () ,- " "---.;) Andover Economic Development Authority Meeting Minutes - March 6, 2002 Page 6 Commissioner Jacobson stated that he would agree to this if there were a minimum square foot regulation and so many feet away from each other. Mr. Erar stated that the liquor store would want to be on property this is highly visible such as a corner or a busy road. Commissioner Orttel stated that if they went with one for every 7,000 residents, they could have four liquor stores in the City. Commissioner Trude asked Mr. Hawkins if they could have discretionary decision on how many could go in and which areas. Mr. Hawkins stated they would need to set a standard. Commissioner Orttel stated that they needed to look at their regulations. Mr. Erar stated they did not have any regulations regarding off-sale liquor sales. He stated that right now there was no limit for off-sale liquor. Commissioner Trude stated they needed to have a limit. Mr. Erar stated that there could be a provision in the regulations stating the liquor store could not be close to a school, etc but not a provision on how many could be in one area. - " ,__) Commissioner Orttel stated it would make sense to have a minimum square footage area in order to put a liquor store in. He stated that this should not include day care because there were day care centers located all over the City. Mr. Erar stated that staff could figure this out for them and then come back to the EDA. Mr. Erar stated that the restrictions would include four criteria at this point, properly zoned, limit of six licenses in the City, square footage valuation/cost and not near a school, WDE SITE-VERBAL UPDATE Mr. Erar stated that there was not enough time to go through everything and that they would need to set up another meeting for about one hour to finish up. He stated that Big Box Development was a very interested party. He stated they were looking at a 3rd ofthe site. They would need to get some additional study or direction from the ED A. It was decided to set up a meeting on Tuesday, March 26, 2002 at 6:30 p.m. Mr. Erar stated he did have a meeting with a board member and moving ahead with the WDE site would be good. Motion by Trude, Seconded by Hokanson, to approve a meeting for Thursday, MarchI 26, 2002 to finish the agenda. Motion carried unanimously. () GREAT RIVER ENERGY PROPERTIES-VERBAL UPDATE Mr. Erar stated that appraisals had been ordered and staff was waiting for them to come back. (' '\ (' ". \ j I ) '--" '- < .: Andover Economic Development Authority Meeting '--- Minutes - March 6, 2002 Page 7 COMMERCIAL BOULEVARD-RENAMING Mr. Erar stated that at the February 6, 2002 meeting the ED A discussed interest in renaming Commercial Boulevard to more appropriately reflect the true nature and character of the Board's vision of Andover Station. He stated the EDA was requested to consider the submitted street names. Mr. Erar stated he received an e-mail with two more names. They were Station Way or Station Street. Commissioner Orttel stated his idea was Station Road. Commissioner Orttel stated that if they took the "en" off Golden and made it Gold Spike road, he would approve that. Mayor Gamache stated that Commissioner Jacobson's idea was for the members to pick the top three names and bring them to the next meeting. Commissioner Orttel stated they should put this on the cable station and in the newsletter and see what residents would want for a name. Mayor Gamache stated they might want to consider renaming Martin and Quinn Street also. , ) ~ , Mr. Erar showed the members some color renderings of Andover Station. Mr. Erar pointed out some issues and stated developers wanted to use only rock face throughout the entire project. Staff stated they needed to include brick in the buildings. He stated that if the developer came back to the EDA and stated staff was being unreasonable, the EDA could state that this was what they originally envisioned of the development. Commissioner Trude asked why they would only want to use rock. Mr. Erar stated that brick was more expensive. Mr. Will Neumeister stated that Kathy Anderson Architects designed this and he trusted her architectural design. Motion by Orttel, Seconded by Trude, to adjourn. Motion carried unanimously. The meeting adjourned at 6:58 p.m. Respectfully submitted, Susan Osbeck, Recording Secretary \ \,j