HomeMy WebLinkAboutSeptember 12, 2000
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U CITY of ANDOVER
1685 CROSSTOWN BOULEVARD N.W.· ANDOVER, MINNESOTA 55304· (763) 755-5100 FAX (763) 755-8923
Economic Development Authority Meeting - Tuesday, September 12,2000
Call to Order - 8:01 PM
Approval of Minutes
Discussion Items
1. Andover Station Marketing Update - Advance Resources.
2. Approve EasementGreat River Energy
3. Approve Material/Color Changes/Andover Pet Health & Wellness
Ü 4. Tax Increment Pledge
5. Discuss Connexus Energy/GRE Substation Relocation/Land Sale
6. Discuss Good Samaritan Request/New Campus Search
7. Other Business
8. Adjournment
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Ü CITY of ANDOVER
ANDOVER ECONOMIC DEVELOPMENT AUTHORITY MEETING
SEPTEMBER 12, 2000 - MINUTES
A Meeting of the Andover Economic Development Authority was called to order by Mayor Jack
McKelvey on September 12,2000,.8:03 p.m., at the Andover City Hall, 1685 Crosstown Boulevard
NW, Andover, Minnesota.
Present: Councilmembers Don Jacobson, Mike Knight, Ken Orttel; Resident members
Bill Hupp and Robert Nowak
Absent: None
Also present: Community Development Director, Dave Carlberg
City Administrator, Richard Fursman
Others
ANDOVER STATION MARKETING UPDATE -ADVANCE RESOURCES
0 Mike Malrooney referenced the packet outlining the activities they have done regarding the
marketing of Andover Station through the month of August, 2000. About 65 financial institutions
have been contacted, and eight have expressed an interest in locating on the site. One of the parties
is linked to 116 LLC partnership, noting a letter from Mike Quigley illustrating their interest in a 1.7-
acre location at the intersection of Quinn and Bunker Lake Boulevard for a 7,000 square-foot
banking facility. Prices of the property have not been discussed yet. He also presented draft copies
of the marketing brochure for Andover Station, noting the narrative is in the process of being drafted.
They have also completed the design guidelines as well as the section for the housing portion of the
property. They need to get approval from the 116 LLC group as well as the pet hospital and the
EDA. He also had pallets for the design of the exterior of the buildings in Andover Station, asking
the EDA to decide which ones should be used.
The EDA did not feel comfortable making a decision and suggested Mr. Malrooney have the
architect recommend one or two options for them to consider. Comments were the Chicago brick
or darker colors seems to be a warm, older theme; that a variety of colors for highlights is attractive,
with a preference for the medium colors as opposed to the very light or very dark. A question was
brought up on the use of cobblestone streets or sidewalks in front of the buildings, though the EDA
acknowledged the stamped concrete that is already out there does look nice and is less expensive.
Mr. Malrooney stated there is a site plan design for the project, but there is no preliminary plat. He
0 has asked RLK to submit a proposal of costs to get that accomplished so the title can be conveyed
when property is sold. He noted the proposal shows some things that are not necessary because they
may have already been done or they can be done by the City. To sell the property and sign purchase
agreements, Mr. Malrooney stated there is some urgency in getting the plat finalized. The site plan
shows the project in several sections, so he felt the preliminary plat could be based on the various
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(j Andover Economic Development Authority Meeting
Minutes - September 12, 2000
Page 2
(Andover Station Marketing Update - Advance Resources, Continued)
quadrants. When there is an interest in a particular site, the final can be filed for the specific location
ofthe business. One of his concerns in the design is the pond at Quinn Street. They anticipate hard
siding the pond and moving it eastward, but that needs approval from the watershed. Quinn Street
needs to be aligned with Quinn to the north plus the necessary stacking distance. Mr. Carlberg stated
they will work with the watershed to move the pond as far east as possible. Reshaping the pond and r
mitigation for the alignment of Quinn Street is a big issue in the design. Mr. Fursman felt there
would be TIF funds to pay to have a firm help with the preliminary plat. Much of the work has
already been done. Because this is for professional services, he did not think quotes were necessary.
Mr. Carlberg felt Staff needs to study the proposal to determine what items have been done, what
can be done in-house and what they would need RLK to do. He also noted that RLK has worked
with Ryan Companies on this same issue, so they are somewhat experienced with the site. The EDA
generally agreed that most of the items in Phase I and II have already been done. They agreed to
authorize Staff to review the proposal and to work with the firm for the platting of Andover Station.
Motion by Knight, Seconded by Jacobson, to authorize the hiring of RLK -Kuusisto, L TD to do
planning and surveying under the direction of Staff and Mr. Malrooney jointly for the parts that are
0 not already done. Motion carried unanimously.
Mr. Malrooney stated there has been a lot of interest in the housing on Section G. He guessed it will
be high density that is owner-occupied. He thought there will be some proposals coming in that are !
condominium type projects for that area. When dealing with restaurants, they are looking for more
day head count as opposed to the current approximately 95 percent of Andover residents leaving the !
community during the day. To attract restaurants, more day users are needed. As the retail grows, r
it will help the recruiting efforts. He felt the project would support about four restaurants, citing
several similar projects that have that many. He also saw both the commercial and retail developing
simultaneously. Right now there is still a moratorium on multiple housing in the City.
Mike Quigley explained his group is proposing to construct a banking facility on the west side of
Quinn Street at Bunker Lake Boulevard. They are in the planning stage right now, and there is some [
urgency to receiving a conceptual agreement fÌ'om the EDA to construct on that comer. That corner
is critical to the success of the bank because of its orientation to Bunker Lake Boulevard and given
the fact it should be a controlled intersection at some point in time with stop lights. They have
submitted a preliminary sketch plan to Mr. Malrooney, and they are in the process of working on an I
exterior design and elevation of the building, which should be ready within two weeks. He stated j
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there are members of the 116 LLC group who are investors and/or owners of the bank. It is a new !
bank. !
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0 Roger Oakerman stated he has been in the banking business for 30 years and has just resigned as an !
executive at the First National Bank in Elk River because of this banking facility. This will be a
home town independent community bank serving both consumers and commercial with investors
fÌ'om the community who want to have something here that will be a land mark and tribute for the ;
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community. They have set up a holding company and have been talking to regulators to do a
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(----./ Minutes - September 12, 2000
Page 3
(Andover Station Marketing Update - Advance Resources, Continued)
feasibility study in conjunction with the application for the charter. It is a six- to seven-month
process, and they are on the fast track to have the facility An architect is drafting the design. They
are looking at approximately 7,000 square feet with the potential of expanding another 3,000 square
feet. There will be two to three drive-in lanes with an A TM attached to it. The design will provide
the ability to provide parking and stacking for approximately 35 vehicles off the main intersection.
Timing is critical, as in another 35 to 45 days they will need to have the ability to designate the area
the bank will be located for the application. They need to own the property as quickly as possible
to provide a legal description for the charter.
The EDA had some discussion on this proposal versus the sketch plan to construct a 30,000 square-
foot drug store/office building on the site. A two- to three-story financial institution/office warehouse
use was shown further to the south in the sketch plan. They liked the concept of a home town bank.
Mr. Malrooney stated there are many options. A bank on the corner eliminates the other proposed
banking location in the back. He can work with Mr. Quigley on this proposal, though they have not
discussed price.
0 Mr. Oakerman stated the critical element of the bank would be exposure for the public, as Bunker
Lake Boulevard brings a considerable amount of traffic into the area. The bank would not work in ,
the back of the area. The concept of a taller building with rental office has been discussed. He
understood that many of the bank buildings with rental Ùllits above them are not fully leased out,
which would be a problem. Mr. Quigley also noted that they did discuss the possibility of a multiple
story building, but he did not believe it would be desired at that corner because it would block the
other businesses. Mr. Malrooney stated it has always been planned to have a one story facility on
the corner of Bunker Lake Boulevard and Quinn Street. Selling a drug store on the back of the map
may be an issue. There are a lot of questions that need to be answered.
Motion by Jacobson, Seconded by Knight, that the EDA is in agreement with the concept of a bank ,
going on that corner (Bunker Lake Boulevard and Quinn Street), but we don't know the cost per i
square foot at this time nor the size on that particular parcel. Motion carried unanimously.
Mr. Quigley stated they will come back to a meeting the first part of October with drawings.
APPROVE EASEMENT/GREAT RIVER ENERGY, APPROVE MATERIA/COLOR
CHANGES/ANDOVER PET HEALTH & WELLNESS and TAX INCREMENT PLEDGE
Motion by Jacobson, Seconded by Knight, the approval ofItems 2,3 and 4 in the affirmative as
0 presented by Staff, subject to legal review for Item 2. (Approved easement with Great River Energy
to allow them to construct a transmission line on ED A owned property subject to legal review;
approve the changes made regarding the materials and colors for the Andover Pet Health and ,
Wellness Clinic at 2172 Commercial Boulevard NW; Resolution EDA 010-00 authorizing execution
of Tax Increment pledge agreement) Motion carried unanimously. ¡
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/ " Andover Economic Development Authority Meeting
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Page 4
ANDOVER STATION/ANDOVER NORTH COMMERCIAL SITE DISCUSSION
Mr. Malrooney stated he has not been asked to consider the development and marketing of the
Andover North commercial site. He assumed it would be an office showroom type development,
but he would be happy to work on that. Jay Street could be another valid location for a banking
facility. He also cautioned the EDA about agreeing with every proposal that comes to them, as he
believed there will be proposals from other lending institutions that they should consider before
committing themselves. Putting a bank in front may make it difficult to put an office building in the
back. He did not necessarily agree with everything being said this evening about the leasing of
bank/office buildings. He will look at the leasing rate for the office bank buildings in the Blaine area. I
He felt the EDA could maximize the development potential by looking at other proposals before I
locking into this one. The EDA generally agreed.
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DISCUSS CONNEXUS ENERGY/GRE SUBSTATION RELOCATIONILAND SALE
Mr. Carlberg reviewed the letter from Great River Energy regarding the relocation of the Connexus ,
U Substation on the corner of Bunker Lake and Hanson Boulevards. The total cost to relocate that
substation and purchase the land was estimated to be $1.4 to $1. 7 million. One to two years are
needed to get it moved. The purchase of the 1.65 acres with the house was estimated between
$72,000 and $216,000, noting it would have to be appraised for an accurate figure. He felt there
would be an advantage to purchasing the lot and house.
The EDA suggested an appraisal be done on the 1.65 acres and house to determine the market value,
keeping in mind that a lot of it is under the easement. Some questioned the financial wisdom of
having the substation relocated. Mr. Fursman felt the only way to pay for it would be to have a
project in hand for that corner. Mr. Carlberg stated Staff talked with someone last year who was
interested in that site. He could contact them again to see if they would have a firm proposal for
developing that corner.
After further discussion, the general direction of the EDA was to have an appraisal done for both the
substation area plus the lot with house.
DISCUSS GOOD SAMARITAN REQUEST/NEW CAMPUS SEARCH
Mr. Carlberg noted the August 25, 2000, letter from Anoka Good Samaritan Center asking for
assistance in locating a 12- to IS-acre site for a new campus for Good Samaritan. They are planning ;
two to three buildings for assisted living. They are a non-profit group and would not be paying ;
taxes.
~:,-) EDA discussion noted it would not be practical to locate the facility within the TIF district nor is ;
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there anything owned by the EDA that would meet their needs. They did not think they could give
assistance when the entity is tax exempt.
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.~ ./ f Minutes - September 12, 2000
Page 5
OTHER BUSINESS
Hunting - Councilmember Jacobson received a phone call from a hunter who owns 40 acres south
of 161 st A venue asking if the Council would consider an extension on the newly approved ordinance
restricting hunting in that area. The ordinance was passed after they had already gotten their hunting
permits from the DNR, but now they can't hunt on that parcel. Because the ordinance was passed
after the licenses were issued, they hoped the Council would reconsider. He suggested Staff call the
DNR, explain the problem because of the timing, and ask if the DNR would refund the cost ofthe
licenses. He didn't want to change the ordinance. Councilmember Orttel understood this will be
brought up at the next Council meeting.
Ribbon cutting ceremony/Convention Center - Mr. Carlberg announced there is a ribbon cutting
ceremony for the Convention Center on October 12. They hope to do Martin Street at the same time.
Motion by Jacobson, Seconded by Novak, to adjourn. Motion carried unanimously. [
- '~ The meeting adjourned at 10:07 p.m.
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Respectfully submitted,
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Marcella A. Peach
Recording Secretary
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