Loading...
HomeMy WebLinkAboutDecember 17, 2002 u ( \ v ClrìLQ1~ ~--I~-03 C) CITY OF ANDOVER 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304. (J63) 755-5100 FAX (J63) 755-8923 . WWW.CI.ANDOVER.MN.US CITY OF ANDOVER ECONOMIC DEVELOPMENT AUTHORITY SPECIAL MEETING December 17, 2002 - 6: 15 p.m. CONFERENCE ROOM A AGENDA 1. Call to Order 2. Oath of Office 3. Approve Minutes - (11/18/02) 4. Consent I terns . a. Approve 2003 EDA Budget b. Approve Andover Station Design Standards Revisions '\ 5. Andover Station Townhouse Development - Verbal Update ,-) 6. Andover Station - TIF Financial Update· 7. Receive Bebetg Landscaping Funding Request 8. Consider Andover Station Maintenance Agreement 9. Other Business 10. Adjourn '\ \_-~ / . U ~J CJ CITY of ANDOVER ANDOVER ECONOMIC DEVELOPMENT AUTHORITY MEETING DECEMBER 17, 2002 -MINUTES A Meeting of the Andover Economic Development Authority was called to order by President Mike Gamache, December 17,2002,6:15 p.m., at the Andover City Hall, 1685 Crosstown BoulevardNW, Andover, Minnesota. Present: Commissioners Don Jacobson, Mike Knight, Ken Orttel, Julie Trude; Voting resident members Fred Larson and Robert Nowak; and Non-voting resident member Edward Schultz Absent: None Also present: Executive Director, John Erar City Finance Director, Jim Dickinson Community Development Director, Will Neumeister City Attorney, William Hawkins Others ~) OATH OF OFFICE Executive Director Erar stated the EDA Board recently appointed Mr. Fred Larson III to a voting position on the EDA Board. In addition, President Gamache, Vice President Trude and Secretary Jacobson will also need to be reappointed as their Board tenns will expire on January 7, 2003. Mr. Erar stated Mr. Larson's appointment was to fill the vacancy created by the resignation offonner Commission Terri Hokanson-Anderson that would have expired on January 1,2008. City Attorney Hawkins swore the Commissioners in. APPROVAL OF MINUTES November 18, 2002: Correct as written. Commissioner Trude wanted the following added to the minutes. Page three, under the topic of Ryland Townhomes, paragraph three, After Commissioner Knight spoke Commissioner Trude stated she "Agreed and stated..." ;~) MOTION by Trude, Seconded by Knight, approval of the Minutes as corrected. Motioncarried unanimously. <-) u ,-- '\ Andover Economic Development Authority Meeting '----. ) Minutes - December 17, 2002 J Page 2 APPROVE 2003 EDA BUDGET Executive Director Erar explained the 2003 EDA Budget with the Commission. Commissioner Jacobson asked what Capital Outlay of $35,000 was for. Mr. Erar stated this was for the signs. Motion by Trude, Seconded by Orttel, adopt the 2003 EDA Budget. Motion carried unanimously. APPROVE ANDOVER STATION DESIGN STANDARDS REVISIONS Community Development Director Neumeister explained that during the review of the construction plans for the two most recent buildings in Andover Station, there were 'questions raised regarding two of the elements of the Design Standards. In both cases, the staff worked with the owners and their architects to achieve the goals of providing high quality architectural materials and screening efforts that would achieve the desired effect. As a result of these problems it was felt that the language in the design standards that are being used should be / " reviewed and Written so as to avoid these problems in the future. 0 Mr. Neumeister reviewed the proposed language changes regarding rooftop mechanical screening and architectural finishes with the Commission. Commissioner Knight asked what the scenario was at Tanners because this brought it on. Mr. Erar stated that dealt with some rooftop equipment. Mr. Erar stated this does not include the 116 Group. When they were approved to move forward with their plans, these standards were not in force. This would be enforceable with all property in Andover Station. Motion by Jacobson, Seconded by Orttel, to adopt the proposed language changes regarding rooftop mechanical screening and architectural finishes. Motion carried unanimously. ANDOVER STATION TOWNHOUSE DEVELOPMENT - VERBAL UPDATE Mr. Erar stated the neighborhood meeting has not been held because of conversations with Ryland Homes on issues, particularly the fire code. He stated there is a new code coming into effect next year that Ryland Homes would need to meet so they are reevaluating this because the required sprinkler systems in homes would bring the price of the homes up. They are also reevaluating the cost of the property. Ryland Homes is saying other communities do this differently and staff has C) looked into this. He stated United Properties is reluctant to lower the price of the land because they have other parties interested in the property. " . . ....lht'LtJ LO(\[) C\.-\_JÜ(~ ~bc: c:1-iL\)ì..ncLÎ(jlLn~G L""b C:lÜn.UwJ~'--¡jl COInmlSSlOner Trude stated a1J.J:he..-peop'Vc lóökcd at tins property have \\iði1lc;J tv build higher level homes fl:Rd thc reasoR they have had sa HitleR tumarotll1d is be~musc they are tl")';11£ to ,---l,)·;\...~·V;-'~(\c..o.-- -to -\~ P.L\\ CVì.c\ tJíD/;CLt. "p\.-i- bLUL'ì\(l)'ú::-L'-~ Ó1J Olûrl.£.JLÖ L00u.-\4:\ Uì'-\Xl-ct.---G1'\\·-.+Lu~ l'ðJopi-'L.1LA-ì vect..,-u- . u u (~ Andover Economic Development Authority Meeting Minutes - December 17, 2002 Page 3 bring-in-atIerdablc entry lc\CJ höl1'SÌng. Ifthcy ean get the-higber hoasmg in, shc did no~ weuld llc;m;; tIlls è1l11uw1t uftu:rnaround:- ~'nL1LClccL a -I d..-O 3 Commissioner Trude is concerned that Ryland Homes would not provide blueprints for the Fire Chief to review. Mr. Erar stated the real issue is what requirements they would have to meet. He stated they are trying to meet the current requirements. Commissioner Knight asked if they are close to the margin as far as price. Mr. Erar stated they are really close. Mr. Nowak stated Commissioner Trude had a good point. If United Properties lowers the rate, the EDA would probably end up subsidizing it. Mr. Erar stated when they negotiated this, he was the one who brought up the sharing of this and he stated he brought up with United Properties that the EDA would like to stick with the amount. Mr. Erar stated he brought up the Code 1306 with Ryland Homes and told them the City would probably adopt the new Code 1306 so they should meet the code. r--- ...., Commissioner Trude stated the EDA is not exclusive with Ryland Homes so she suggested they look '0 at other development companies for more quality homes. Mr. Erar stated they are not tied to Ryland Homes and generally when they work with a developer, and they start to spend money, it is a courtesy to try to work with them. Mayor Gamache stated staff is not in favor of making any changes in regard to the code for Ryland Homes. Commissioner Orttel stated apparently a lot of builders are not aware of the new building code. Mr. Erar stated there is a lot of talk out there and that there were a lot of people at the meetings. 5l.(ì)\ o....rì4 Ü-/ Commissioner Orttel asked if they extended their financial ~greement with the developers. Mr. Erar stated he believed it was five years and Hans Hagen was three years. OAntful.v;;L ;"\ - I C\ -6 3 ANDOVER STATION - TIF FINANCIAL UPDATE Finance Director Dickinson explained that with potential development prospects for the Andover Station area, Finance thought it would be beneficial to the EDA Board if a fmancial status report was given outlining financial implications of making or not making decisions on potential prospects. Q Mr. Dickinson stated development activity in the Andover Station area is currently being driven by Tax Increment Financing (TIF) administered by the Andover EDA. The TIF used is a pooling of two districts identified as TIF 1-1 and TIF 1-2, which will remain in effect until 2013 and 2011 respectively. ,- -'\ U U f~~ , Andover Economic Development Authority Meeting ) Minutes - December 17, 2002 '-.. ) Page 4 Mr. Dickinson explained the analysis has a multitude of factors that affect the timing of future projects both in and outside of the TIP districts and Finance will be looking for direction from the EDA on what direction to go. Mr. Dickinson reviewed the Tax Increment Analysis with the Commission. Mr. Erar stated they were estimating the Jay Street extension would run about two million. One million would come from TIP and one million from other revenue. The 2.6 is based on a of $4 per square foot which is a very conservative projection. Commissioner Orttel asked if the two million would complete Jay Street. Mr. Dickinson stated it would. He stated pre-l 998 TIF interest is there to pay the debt. The Council can redirect the funds into another fund within the City. If they want to reach the goals of Andover North and South, they needed to start now to get more revenue and increment. TIF 1-1 is pooled which is the downtown center. Commissioner Knight asked where they are with Target. Mr. Erar stated they are still discussing ,~ the grocery store restriction with them and the conversation is taking place between United Properties, Target and Festival Foods. RECEWE BEBERG LANDSCAPING FUNDING REQUEST Executive Director Erar explained Mr. Chris Beberg, President of Beberg Landscape Nursery Company is requesting financial assistance from the EDA in the form of a business loan that allows for low monthly payments in the first 24 months, with a series of larger payments in the subsequent repayment period. The repayment period requested by Mr. Beberg is anticipated to be in the 4-5 year range. Mr. Erar discussed the reason for the loan with the Commission. Mr. Dickinson stated it would be looked at in terms of an investment for other funds. Commissioner Orttel asked if these are secured funds. Mr. Dickinson stated they would have security in the property. This would bring in revenue to the EDA. Mr. Nowak asked if the EDA would get the two percent. Mr. Dickinson stated they would. Commissioner Orttel stated it looks good at this point but what happens if interest rates go up. Mr. Nowak asked if they could have the interest set at so much above prime. -- -..... / , \~ Commissioner Jacobson stated he was not in favor of this. Mr. Nowak and Commissioner Orttel agreed. Mayor Gamache stated he would like to get more information. Commissioner Trude stated she would be in favor of it because other cities have done this before. Mr. Dickinson stated they could bring back additional information to the Commission. Commissioner Knight C) U ,/- ~ Andover Economic Development Authority Meeting , / Minutes - December 17, 2002 Page 5 stated he would be interested in more information. Motion by Jacobson, Seconded by Orttel, to approve staff to bring back more information for the next meeting. Motion carried unanimously. CONSIDER ANDOVER STATION MAINTENANCE AGREEMENT Executive Director Erar stated staff has been working the representatives from the 116 LLC Group and United Properties to create a maintenance plan and cost allocation formula. The plan includes maintaining landscaping improvements and general maintenance of common areas in Andover Station. In support of the maintenance plan, staff has discussed and prepared a cost allocation formula designed to fairly and equitably assign costs for this activity based on property ownership. Motion by Trude, Seconded by Jacobson to table this item until next meeting. Motion carried unanimously. ) <'--'"' OTHER BUSINESS There was none. Motion by Trude, Seconded by Orttel, to adjourn. Motion carried unanimously. The meeting adjourned at 6:59 p.m. Respectfully submitted, Susan Osbeck, Recording Secretary .' j , '_ J