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HomeMy WebLinkAboutMarch 16, 2000 0 O~·Ct<vL~· ~-4--C:O 0 CITY of ANDOVER . Economic Development Authority Meeting - Thursday, March 16, 2000 agenda Bookmark Call to Order - 7:00 PM Name i Approval of Minutes minutes Discussion Items ! 1. Development Services Proposal for Andoyer Station proposal 2. Discuss Sale of Andover Commercial Park, Lot 2, Block 1 sale 3. TIF Debt Service Transfer Resolution tif I i 4. General Obligation Tax Increment Bonds, Series 1993B bonds 5. Award BidlProject # 99-l7/Andover StationlMartin Street bid9917 () i i 6. Authorize Soils Report! Andover Station soils 7. Discuss Bunker Lake Blvd. NW Redevelopment Area. Bunker ; 8. Park Development South of the WDE Site wde 9. Other Business Adjournment : , (~ ,) i 0 0 C) CITY of ANDOVER ANDOVER ECONOMIC DEVELOPMENT AUTHORITY MEETING MARCH 16,2000 - MINUTES A Meeting of the Andover Economic Development Authority was called to order by Mayor Jack McKelvey on March 16,2000, 7:00 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. Present: Councilmembers Don Jacobson, Julie Johnson, Mike Knight, Ken Orttel; Resident members Bill Hupp and Robert Nowak Absent: None Also present: City Finance Director, Jim Dickinson Building Official, Dave Almgren Community Development Director, Dave Carlberg City Administrator, Richard Fursman Others 0 DEVELOPMENT SERVICES PROPOSAL FOR ANDOVER STATION Mike Malrooney, Advance Resources Development, inc., first thanked the City Council for all their hard work on the new high school. As a resident, he recognizes that will have a tremendous impact on the community and on Andover Station. He explained he met with Mr. Carlberg and Mr. Fursman regarding what has been previously done on the Andover Station project. He then introduced Brian Wessel and Dennis Grebner, members of the. team that would be working on the Andover Station project. Mr. Wessel explained a visioning presentation of the proposal for the site is needed to develop a master plan to begin marketing the project. The second piece is the architectural character desired for the project, from which a guide will be designed and developed to market the site. He has worked with Mr. Grebner, who will be greatly involved in the project since his time is limited because of the project in Lion Lakes. Mr. Malrooney explained from the character sketch, it is their intent to develop a brochure for this project to contact direct marketing companies and to directly market with prospective projects and developers for the project. There is a level of interest in the project, but it is a matter of marketing and identifying the potential prospects, tied to the overall scheme of development. He also suggested a nice sign be placed on the property indicating the project, a schematic of the project and a phone number to call so people driving by are given a way of contacting someone. Right now there is nothing on the site directing who can be contacted. Overall their proposal hasn't changed since the 0 last meeting. The EDA continued their discussion with Mr. Malrooney and his team, clarifying what would be done to market and develop this site. Mr. Grebner stated the first sketches would be conceptual, the second would be more detailed making it publishable. Mr. Malrooney also hoped there would be u u , Andover Economic Development Authority Meeting ,,_ /; Minutes - March 16, 2000 - Page 2 (Development Services Proposal for Andover Station, Continued) some coherence, some continuity within the project. Councilmember Jacobson wondered ifthe EDA wants to reconsider the concept of some higher density housing in the project and look once again not at what the EDA thinks it wants in terms of product but what is out there for the market. Mr. Malrooney stated the market demands will be ever revolving. The market will depend on the demographics of the community and the changing needs of the people. With 40 acres, he felt they can easily define the needs ofthe community. The market area for this isn't just Andover but will be from the north and south as well. If there is some high density housing in the area, it will increase the demand for some offices and other businesses. Retail below and office or residential above certainly creates that demand. If the demand is not created, the center will have some difficulties because during the day, most residents are gone. Mr. Nowak didn't think the amount of high density housing on 40 acres would have that great of an impact. Approximately 500 houses a year are being built in the City now, so he didn't think the City had to do anything to attract more people. Councilmember Orttel felt the City can meet the Metropolitan Council requirements on density housing without concentrating that much density in one area. Putting 50 units on 9 acres in that area will not keep the center alive, plus he also felt the r " residents there would not support more density there. The veterinary hospital and other similar \~ businesses will draw people in during the day. Also, at the moment the City does not have the exact number of units it is required to have for rent, low income, etc. Without those numbers, it is difficult to plan; but he felt it doesn't make sense to cluster all of it in one area and create problems. The EDA then generally agreed that housing would not be a part of the Andover Station project. They also suggested that a large sign be placed on the site with a map and phone numbers. Mr. Malrooney also stated the printing of the brochure would be outside of the costs. In discussing uses on the site, Councilmember Knight suggested giving some thought to franchises such as a Perkins. He felt the demand for a family sit-down restaurant is high and such franchises are very successful. Mr. Malrooney stated they have already made contact with them. He also noted the proposal is for the consulting fee commission to be based on 7 percent of the selling price of the land. Mr. Nowak wondered if some incentive should be added to the contract, such as a higher percentage the first six months and a lower percentage the last six months. Mr. Malrooney stated their incentive is that it is a one-year agreement. The EDA discussed whether or not a specific per-square-foot sales price should be set for the land. Mr. Malrooney stated the price generally depends on the size of the project and the use. If a site selector professional is being used by the buyer, that fee would normally come out of the 7 percent number. He was confident something could be in place this first year, though there are many potentials for delays along the way. Materials and labor could be a problem. The land could be sold, , , but it could potentially be a while before the building is up. '-J The EDA discussed the funding of the compensation for the Visioning Phase which is not to exceed $15,000. Mr. Fursman stated the funds are available, it is a matter of determining from what source. , \ / '\ (~ U "- Andover Economic Development Authority Meeting , ) Minutes - March 16, 2000 Page 3 (Development Services Proposal for Andover Station, Continued) CDBG funds may be available, or it could come from TIF. Mayor McKelvey noted until the Anoka Auto Parts north of Bunker Lake Boulevard is purchased, there is not much that can be done to develop the north commercial site. The EDA asked Mr. Malrooney to keep in mind the future development of that northern site when developing this site, though that is not a part of this agreement. When asked by the EDA, Mr. Malrooney noted some of the challenges in developing the master plan and the needs in the community for another grocer, another lender and sit-down restaurants, though not a department store. It will be more of a community or neighborhood type center. He agreed to meet with Mr. Fursman and Mr. Carlberg once again. If they still feel they should meet with the EDA before proceeding with the sketches, they will suggest it. The EDA preferred to see the recommendations from Advance Resources for Development, suggesting the aesthetics be unique rather than the run-of-the-mill shopping center. Another suggestion was to look at the amont of parking spaces needed in an attempt to eliminate half the land having to be developed for parking. Motion by Jacobson, Seconded by Knight, to accept the proposal from Advance Resources for , Development Inc., until March 30,2001. DISCUSSION: Mr. Malrooney stated they will prepare , J a contract with the same details of the proposal for the City Attorney to review. Motion carried unanimously. DISCUSS SALE OF ANDOVER COMMERCIAL PARK, LOT 2, BLOCK 1 Mr. Carlberg noted the request of Greg and Tony Howard, Northwest Commercial LLC to purchase Lot 2, Block I, Andover Commercial Park as a potential site for the construction of a building for QCTV. Councilmember Jacobson stated since the last meeting, the QCTV board met. He felt the chances are about 99.9 percent negative that the station would move to this site. Mr. Howard stated they too have talked to QCTV and understand they are not interested in this site. Northwest Commercial would still like to purchase this lot, probably for an office warehouse as large as could fit on it. Mr. Carlberg stated he has been keeping a list of people who have expressed an interest in purchasing a lot when lots become available. Price is also an issue. Mr. Howard expressed frustration that they had to purchase land from Tony Emmerich because the City hasn't had any lots. Yet, a lot was sold to the animal hospital. Would the City sell them the lot if they came in with a purchase agreement? Mr. Carlberg stated the City Attorney draws up the purchase agreements. He asked if the EDA wished to review the list. After discussion, the EDA agreed to contact everyone on the list to ask if they are still interested in " ) purchasing a lot. If so, let them know this lot is available now and ask them to submit a proposal and a bid for the lot. These would not be sealed bids, as the entire proposal of price and value of building would be considered. The intent would also be the lot would be developed this year. , '\ C) \J '\ Andover Economic Development Authority Meeting ) Minutes - March 16, 2000 '- ,,/ Page 4 (Sale of Andover Commercial Park, Lot 2, Block 1, Continued) Motion by Orttel, Seconded by Johnson, that the EDA authorize the Staff to contact the people on the waiting list for commercial property to update the list and to advise them of the availability of the lot in the Andover Commercial Park and to have them provide proposals if they are interested with all pertinent data and drawings and sketches and the timing of their project, and get back in 30 days. Motion carried unanimously. TIF DEBT SERVICE TRANSFER RESOLUTION Mr. Dickinson asked the EDA to adopt the Resolution authorizing the transfer of funds from the Tax Increment Bonds, Series 1994B Debt Service Fund to the Debt Service Account of the general Obligation Tax Increment Bonds of 1999 Fund. Some of the debt service fund is somewhat restrictive, but there are enough funds to get the $175,000 necessary for the City funded capitalized interest. He recommended approval of the Resolution, which will then be forwarded to the City Council at their next meeting. '"'' ) Motionby Knight, Seconded by Orttel, the Resolution (Resolution ROOa-OO authorizing the transfer of funds from Tax Increment Bonds, Series 1994B Debt Service Fund to the Debt Service Account of the General Obligation Tax Increment Bonds of 1999 Fund) Motion carried unanimously. GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES 1993B Mr. Dickinson asked for authorization to initiate the process to prepay bonds maturing on or after August 1, 2001 for General Obligation Tax Increment Bonds, Series 1993B. The bonds are collectible as of August 1,2000. He felt this would save a lot of money, though he will look into the penalties more with the financial advisor. He would come back to the EDA with a formal resolution. Motion by Orttel, Seconded by Knight, move Item 4 as proposed. Motion carried unanimously. AWARD BID/PROJECT#99-17/ANDOVER STATION/MARTIN STREET Mr. Fursman stated the City Engineer is uncomfortable authorizing this without doing reference checks. He asked the item be tabled to the next meeting. Motion by Orttel, Seconded by Johnson, to table Item 5. Motion carried unanimously. '" / (-~ () '.J \ Andover Economic Development Authority Meeting ! Minutes - March 16, 2000 ,~ ____J Page 5 AUTHORIZE SOILS REPORT/ANDOVER STATION Mr. Fursman asked for authorization to have Braun Intertec collect all of the soils data on Andover Station and put it into a report format which could be given to any prospective developer/buyer in that project. The cost would be between $200 to $500 to do the report. Motion by Jacobson, Seconded by Johnson, to so move. Motion carried unanimously. DISCUSS BUNKER LAKE BOULEVARD NW REDEVELOPMENT AREA Mr. Carlberg stated he has contacted Leonard Parker and Associates to do a master plan to redevelop the area along Bunker Lake Boulevard between Crosstown Drive and Crosstown Boulevard. It is anticipated that proposal will be before the City Council at the March 21 meeting. Dave Harris has agreed to table his item for multiple density on the comer lot of Crosstown Drive and l38th for several more weeks, recognizing it will take some time to make some decisions. Mr. Almgren explained there was a fire in an apartment at 2621 Bunker Lake Boulevard. Insurance \ has calculated about $58,000 worth of damage, and the appraiser has assigned a value of about '- / $103,000 for the structure. Because the county did not request variances to the setback when they acquired additional easement to widen Bunker Lake Boulevard, the building is a nonconforming structure. It was the required 50-foot setback, but it is now a 36-foot setback from the street. Under the ordinance, any nonconforming structure which is destroyed over 50 percent can be declared to be unbuildable. He asked if the EDA wished to declare it unbuildable or to tell the owner to apply for a variance. Mr. Fursman noted the area has not yet been declared a TIF redevelopment district, but planning is being done to determine whether it should be redeveloped as commercial or as high density multi- family. Mr. Hupp felt it is unreasonable to allow the building to be rebuilt and then potentially have it torn down several months to a year later. Mayor McKelvey agreed the EDA might just as well buy that building now, paying the difference between the appraisal and what can be recovered from Insurance. Mr. Fursman stated another option would be to allow someone who is interested in developing the property do so. The City does not necessarily have to own the property. Mr. Almgren stated it is a question of timing. The City owes the owner an answer of what the City Council and EDA want to do. Council member Orttel stated he was the one who pushed to have this area redeveloped, but now his brother is the owner of this property, having purchased it without talking to him. He stated there may be other sources of income to the owner, who is checking with insurance that may cover building codes plus the county could make up for its mistake. Those are other funds that the City '\ , wouldn't have to pay to purchase this parcel. , j / ~ <-) . \ J Andover Economic Development Authority Meeting Minutes - March 16, 2000 Page 6 (Bunker Lake Boulevard NW Redevelopment Area, Continued) The majority of the EDA felt that this affords an opportunity to purchase the lot, and that purchase should be pursued. Further discussion was that the City Attorney should be asked to meet with the owner on a possible purchase, that the Comprehensive Plan indicates this is a potential redevelopment site and that the area needs to be made a TIF area. It was also suggested that the duplex area along 140th in Red Oaks be included in the TIF district for possible redevelopment. In again discussing the requirements of the Metropolitan Council for low-to-moderate-income and rental housing, the Council asked Staff to prepare a simple guide which indicates how many units would be required for each goal. It was suggested that these housing units should be required in each development, spreading it throughout the City rather than concentrating them in one area. Mr. Carlberg suggested taking a tour of other areas where these goals have been incorporated into the developments, stating one can't tell which are the rental units, etc. Once more the EDA agreed to proceed with attempting to purchase the lot in question. , PARK DEVELOPMENT SOUTH OF THE WDE SITE '--- --," ) Mr. Carlberg presented a proposed layout of park facilities along the southern edge ofthe WDE site. The reconfiguration includes a different layout of the ball fields, 4 fields plus parking under the electric lines off Bunker Lake Boulevard. He asked ifthey should be looking at where an ice arena could be located on the site. One of the reasons for wanting to get conceptual approval on the park facilities is because Great River Energy is waiting for that layout before going ahead with its transmission line project. The one-year sunset clause on their Special Use Permit for that project has expired, but the delay has been caused by the City. They have delayed their project to design around the City's plan. It was Mayor McKelvey's opinion that if there was sufficient acreage, the ice arena would be built on the high school site. The last time this park layout was discussed, it was down to two ball fields. Councilmember Knight preferred to see the arena on this site rather than on the school site. Dave Blackstad reviewed the initial plan and pointed out the changes in this layout. Skate boarding would be provided behind the skating area. Possibly a concession building with batting cages could be constructed between the fields as laid out, plus a warming house by the ice rinks and sliding hill for the winter activities. Nothing has changed in the area south of the road along the park area. The Park and Recreation Commission is recommending the layout before the EDA. \ Councilmember Johnson stated she wanted to see the skate board activities on the next layout that , - . J is provided. Mr. Nowak felt that any structures built within the park have to fit within the schematics of the commercial area. Councilmember Orttel was not concerned with how many fields there are as long as there is enough parking. \ : '\ ) ~ ) \ ----- J -- Andover Economic Development Authority Meeting Minutes - March 16, 2000 Page 7 (Park Development south of the WDE Site, Continued) Mr. Carlberg suggested two layouts be prepared, one with an ice arena and one without. It is anticipated that parking for an ice arena could also be used for parking for other park events. There was then a lengthy discussion on the construction of an ice arena. Comments included other ice arenas in the county have been built by volunteers, that the county has contributed to most of them, on maximizing the uses of the building, on the need to have restaurants and hotels in the vicinity as supporting facilities to the arena, that the building could be converted to a business if the ice arena was not successful, that the intent would be the facility would be operated under a hockey association and not by the City and that it could be an economic development primer for the area by having all those activities draw commercial businesses. Motion by Orttel, Seconded by Jacobson, to adjourn. Motion carried unanimously. The meeting adjourned at 9:06 p.m. : / Respectfully submitted, ~" ----- \\\~k~- \ Marc'èl1a A. Peach Recording Secretary / \ , --