HomeMy WebLinkAboutMarch 19, 2002
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CITY OF ANDOVER
1685 CROSSTOWN BOULEVARD N.W.. ANDOVER, MINNESOTA 55304. (763) 755-5100
FAX (763) 755-8923. WWW.CLANDOVER.MN.US
CITY OF ANDOVER
ECONOMIC DEVELOPMENT AUTHORITY MEETING
MARCH 19, 2002 - 6:00 P.M.
CONFERENCE ROOM A
AGENDA
1. CALL TO ORDER
2. APPROVAL OF MINUTES (2/5/02) (2/6/02) (3/6/02)
3. UNITED PROPERTIES - 1 ST Amendment to
~-J Development Contract
4. ENVIRONMENTAL INDEMNIFICATION
AGREEMENT - Hans Hagen Homes :
5. NEXT MEETING - March 26, 2002
6. ADJOURN
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0 CITY of ANDOVER
ANDOVER ECONOMIC DEVELOPMENTAUTHORITY MEETING
MARCH 19, 2002-MINUTES
A Meeting ofthe Andover Economic Development Authority was called to order by President Mike
Gamache, Tuesday, March 19,2002, 6:00 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 Robert Nowak; and Non-voting
resident members Fred Larson and Edward Schultz
Absent: Terri Hokanson
Also present: Executive Director, John Erar
City Finance Director, Jim Dickinson ---
Community Development Director, Will Neumeister
City Attorney, William Hawkins
Others
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AGENDA APPROVAL
Add Item 4A, (Off Sale Liquor Store Restrictions).
There was no motion made.
Commissioner Jacobson asked Attorney Hawkins, since they have a special meeting scheduled for
next week, whether this meeting would be valid for decisions. Attorney Hawkins stated that there
should not be a problem with this meeting's decisions being valid.
APPROVAL OF MINUTES
February 5, 2002: Correct as written.
February 6, 2002: Correct as amended.
March 6, 2002: . Correct as written.
On the February 6,2002 minutes, Commissioner Jacobson stated on page 7, he wanted a sentence
àdded to the minutes. He stated he wanted the minutes to read"... was not in favor ofliquor in the
0 City, but considering that he has been outvoted on the issue in the past he wanted to make any
regulations as tough as possible and..."
MOTION by Orttel, Seconded by Knight, approval of the Minutes as written. Motion carried
unanimously.
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,J Andover Economic Development Authority Meeting
Minutes - March 19, 2002
Page 2
UNITED PROPERTIES _1ST AMENDMENT TO DEVELOPMENT CONTRACT
At the March 6, 2002 EDA meeting, the Board reviewed issues associated with the purchase of
additional property by United Properties for the private construction of Quinn Street. In addition,
several items were raised by United Properties regarding the option agreement in terms of
"partial take downs".
Mr. Erar stated that the key points of review for the EDA included; the Board discussed the issue
of partial takedowns as undesirable to the extent it may affect the future marketing and
development of the site. However upon closer review, United Properties had countered with
additional language that the EDA may wish to consider as it clarifies the terms and conditions of
denial regarding the partial takedown of the option property. United Properties had added
language indicating that the ponding area would not be included in the optionable property land
costs. Essentially, the ponding area would be excluded for purposes associated with the future
land sale, however the developer would still benefir-from this water amenity. United Properties
had added additional language defining restricted use for the competing sale of groceries.
\_) Mr. Erar noted the letter of intent signed by the EDA concerning parcel a, b, c, and d. United
Properties was fine with that type of take down but would like the City to listen. They would like
to have the opportunity to present this to the EDA and in the future to be able to split parcels, as
they would need them. What was discussed at the last meeting was the EDA would listen, agree
and approve requests from United Properties.
United Properties added language that United Properties would not get the pond area; it was
never considered a property to be sold to United Properties by the EDA at this time.
Commissioner Knight asked ifthis included the boardwalk area. Mr. Erar stated that he had met
with United Properties this afternoon and discussed the agreement. It was never discussed that
United Properties would build a boardwalk. It was written into the agreement that United
Properties would be responsible for a boardwalk but they would not purchase the pond area. He
stated the City would remain the owner of the pond and would need to take care ofit.
Commissioner Knight asked ifthe pond area was delineated. Mr. Erar stated that was true. Mr.
Nowak asked if parcel A had wetland in it. Attorney Hawkins stated that the actual property line
needed to be moved to the west farther so it would not include any wetland.
Attorney Hawkins stated that on pages 3 and 4 of the agreement, the grocery space in a store
besides a grocery store, would not be 30,000 square feet. He stated that if the grocery store did
not remain in place for the designated time, then another store could have more grocery space.
~) Mr. Erar stated that United Properties wanted this written into the agreement.
Mr. Erar stated there were additional items discussed at the meeting. He stated that if United
Properties did not exercise their options, United Properties would release access onto Quinn
Street. The second item was incorporating language in the pond area. He showed a colored map
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'\ Andover Economic Development Authority Meeting
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'J Minutes - March 19, 2002
Page 3
of the Andover Station layout. He stated he would like to add language incorporating the
boardwalk into the agreement and add language that the association would maintain and preserve
the open space of the development. He also stated they should put into the agreement that the
area around the pond should be kept open so it did not block the view from Bunker.
Commissioner Jacobson asked if originally parcels B and C were supposed to have something on
them. Mr. Hawkins stated that there were not any design thoughts. Mr. Erickson stated that
United Properties looked at those parcels when they put the bank in. Mr. Erar stated that there is
some interest in parcel F and D from stores.
Commissioner Jacobson asked if the zoning still remained so a business not approved for the
area could not be brought in. Mr. Erar stated that the zoning would not be changed.
Mr. Erar stated that the last item discussed was the sidewalk on Quinn Street. The sidewalk on
the East side of Quinn Street would be too premature because they were not sure of the access
points. He stated they wanted to tie down the fact that United Properties was responsible for
construction and finance of the sidewalk.
'--) President Gamache stated that his issue with the new wording was what benefit were the changes
to the EDA. Mr. Erar stated he asked United Properties that question and they stated this would
give them the option to discuss this with the EDA. Attorney Hawkins stated there was a standard
with the parcels and that he thought this would all be taken down quickly.
Mr. Erar stated that on page 2, the interest rate was included in the agreement to be added as part
of the price for the unpaid portion ofthe Additional Option Price after the closing on the
development property.
Commissioner Trude asked when talking about Quinn Street, did staff figure out how they
wanted this road developed. Mr. Erar stated engineering had been working on this configuration.
Commissioner Trude stated that even though this is a private road, it needed to be wide enough
for fire truck access and snow removal. Mr. Erar stated it was.
Mr. Neumeister showed a layout of the buildings with the brick on them. He stated the brick
would be included in the pillars on the East side facing Quinn Street. Commissioner Trude asked
if the public would see the back. Mr. Neumeister stated that on the back there would be
substantial landscaping.
Commissioner Knight asked what the color scheme would be. Mr. Erar stated the colors were
attractive. Mr. Neumeister showed the color scheme ofthe building. He stated the EFIS would
(J be light in color and the break off block would be on the main part ofthe building.
Motion by Orttel, Seconded by Knight, approval of the First Amendment to the Development
Contract with United Properties. Motion carried unanimously.
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,,) Andover Economic Development Authority Meeting
'---, Minutes - March 19, 2002
Page 4
ENVIRONMENTAL INDEMNIFICATION AGREEMENT-HANS HAGEN HOMES
Mr. Erar stated issues related to the environmental liability of the residential site component
continue to be raised by Hans Hagen Homes. Mr. Erar stated Hans Hagen Homes have raised
several questions regarding the environmental aspect of the site. He stated the Board should
review and discuss the questions raised.
Mr. Erar stated that on item number three, any monitoring wells would be removed and the EDA
agreed to that. On item number four, the EDA would provide verification of the site; this was
resolved this afternoon. Mr. Erar stated the soil was tested and was clean. He stated United
Properties wanted additional soil for their site so they would take the soil from the land.
Mr. Erar stated that United Properties was looking for additional soil for their site and the City
would try to work this out with United Properties for them to get additional soil for them.
Commissioner Trude asked if the EDA would sell them soil from another development. Mr. Erar
stated they would try to work out an agreement.
\) Commissioner Trude asked what the no association letter was for. Attorney Hawkins stated it
, - was for the EP A and he was not sure why they wanted this letter. Mr. Erar stated this was more
of a technical issue.
Mr. Erar stated that the real issue was item six. Attorney Hawkins stated that the last time the
EDA discussed the indemnification, they agreed on one year. He stated Hans Hagen wanted a
longer period of time than United Properties. United Properties agreed to one year but Hans
Hagen wanted longer for the indemnification. He stated Mr. Erar worked out everything with
Hans Hagen to let them have three years for this. Attorney Hawkins stated that originally Hans
Hagen wanted twenty years and Mr. Erar wanted one year.
Commissioner Jacobson asked if they had anything in writing regarding the indemnification. Mr.
Erar stated this was all in the original indemnification agreement under B2.
Commissioner Trude stated she would be fine with three years. Mr. Erar stated it would actually
be five years because of two years for construction and the indemnification period would not start
until the construction was finished.
Mr. Erar asked Mr. Dickinson if the EDA was covered under the City for liability. Mr.
Dickinson stated that it was discussed at the last meeting about the EDA getting a policy. Mr.
Erar asked what the EDA was covered for as far as indemnification. Mr. Dickinson stated that if
/' --'\ there would need to be a clean up, the EDA would not be covered but the EDA only has assets
\.J that would be in jeopardy.
Commissioner Orttel stated that if this was the case, the EDA they should keep their assets to a
minimum. Mr. Erar stated that if the EDA did not approve these changes, Hans Hagen would
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probably walk away ÍÌ"om the project.
Mr. Neumeister stated that Hans Hagen was planning on doing a phase II to the project, which
would be more soil samples to check if the soil was clean for purposes of selling the property.
Motion by Jacobson, Seconded by Orttel, to approve the Indemnification for a total of three years
ÍÌ"om completion for Hans Hagen and one year ÍÌ"om completion for United Properties. Motion
carried unanimously.
OFF SALE LIQUOR STORE SALES
Commissioner Jacobson stated that in the March 6, 2002 minutes, off sale liquor store
restrictions was discussed and the more he looked at it, believed this should be a City Council
decision, not an EDA decision.
Mr. Erar stated the reason this was looked at by the EDA was because they were toying with the
idea ofliquor licenses. He stated that the City Council would need to approve this but it could be
\ suggested by the EDA for the issue.
Commissioner Knight stated that they should start looking at the adult ordinance issues.
Attorney Hawkins and Mr. Erar stated that they could look into this and discuss this in the future.
President Gamache stated that regarding other matters; he received a letter ÍÌ"om Frattalone
Hardware regarding fencing in a garden area. Commissioner Orttel stated they should talk about
this in the City Council meeting and they should give them a temporary license. Mr. Neumeister
stated this was only allowed during business hours, and he would need to have a code change to
allow him to have this after business hours with a special use permit.
NEXT MEETING-MARCH 26, 2002
Mr. Erar stated that on March 26,2002, there would be a special EDA meeting at 6:15 p.m. He
stated there was a draft letter from the City Attorney's office regarding the procedures of the
EDA. He stated the City Attorney had reviewed the processes.
Motion by Jacobson, Seconded by Orttel, to adjourn. Motion carried unanimously. The meeting
adjourned at 6:55 p.m.
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, I Respectfully submitted,
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Susan Osbeck, Recording Secretary
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