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HomeMy WebLinkAboutOctober 10, 2000 0 0 , , :~) CITY of ANDOVER Economic Development Authority Meeting - Tuesday, October 10, 2000 Conference Room A Call to Order - 8:00 PM Approval of Minutes Swearing in Ceremony - Tony Howard 1. Andover Station Update (Item will be presented at meeting) 2. Approve Building ElevationslNorthwest Commercial (Item will be presented at meeting) , I (j I 3. Other Business Adjournment () ! i 0 0 C) CITY of ANDOVER ANDOVER ECONOMIC DEVELOPMENT AUTHORITY MEETING OCTOBER 10, 2000 - MINUTES A Meeting of the Andover Economic Development Authority was called to order by Mayor Jack McKelvey on October 10,2000,8:10 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. Present: Councilmembers Tony Howard, Don Jacobson, Mike Knight, Ken Orttel; Resident member Robert Nowak Absent: ' Resident member Bill Hupp Also present: Acting Administrator, Dave Carlberg Others APPROVAL OF MINUTES 0 August 15, 2000: Correct as written. September 12, 2000: Correct as written. Motion by Jacobson, Seconded by Orttel, approval of the August 15 and September 12 Meeting Minutes. Motion carried on a 5-Yes, I-Present (Howard), I-Absent (Hupp) vote. SWEARING IN CEREMONY Mr. Carlberg stated according to the Resolution creating the EDA, anyone who becomes a member of the EDA should be sworn in. He has not had an opportunity to discuss this with the City Attorney, but he will research that further. The Authority agreed. ANDOVER STATION UPDATE Mike Malrooney, Advance Resources for Development, Inc., provided copies of the completed marketing brochure for Andover Station. He also did research on each of the major shopping centers in the Twin Cities metropolitan area taking into account demographics within a three to five mile radius of the center. That is the type of information people are looking for when investing in a shopping center. Andover compares quite favorably in income over $40,000. Population growth 0 is quite strong. Andover falls down in the number of households. He's had discussions with two major retail grocery chains, both headquartered in Minnesota. He's also had discussions with a major drug store operatiOIi out ofthe Chicago market, as well as with a fine dining restaurant facility and office facility. Hopefully proposals will be received within the next 30 days. () () ì Andover Economic Development Authority Meeting - . j Minutes - October 10, 2000 Page 2 (Andover Station Update, Continued) Mr. Malrooney stated the EDA directed him to look at what banks have paid for property within this market, the types of projects built and comparable property prices. He presented and reviewed that data, which showed a range of cost per square foot to purchase the property from $2.00 to $14.00. Mr. Carlberg stated the EDA has received a proposal to sell a parcel on the corner of Quinn Street and Bunker Lake Boulevard to the bank proposed by the 116 LLC group. That decision of the EDA would affect the master plan which proposes a 30,000 square-foot building with bank and office space further into the development and the potential drug store proposed for that corner. The bank group needs to have an answer tonight. He asked the EDA ifthey want to make the switch in uses and to consider the impact of that switch on the master plan. Mike Quigley, Norm Wells, Roger Oakerman and Tony Emmerich represented the First Alliance Community Bank. Mr. Quigley stated since the last meeting they have discussed their proposal with Mr. Malrooney and Mr. Carlberg and were given an alternative location on the northeast corner of Jay Street and Bunker Lake Boulevard. Mr. Wells reviewed elevations ofthe bank, noting no firm "\ decision has been made on the materials. The bank would be 7,000 square feet with the capability I \- ./ of expanding another 3,500 square feet. Mr. Oakerman explained with the new law allowing banks to have ownership in brokerage firms, real estate companies and insurance institutions, there is a strong possibility they will grow and expand the banking facility. It provides more opportunity to bring these types of services to the community. He has been working on the charter application and has talked to many other bankers in the process. Almost everyone has said that the further away from the downtown area, it is very necessary that the bank be free standing and visible. It becomes especially important in the suburban area. They understand why the EDA is looking at the master plan as proposed, but the probability of being able to construct at the $12 per square foot price is not feasible from the standpoint of cash flow. The Jay Street area is a good site. It has good visibility and good access and probably is a better site than on Quinn Street. They are about 10 days away from filing their application, but they need a legal description or address of where the bank will be located. They also have to have the cost figures on the lease and the project balance sheet for the banking operation. That is why they need to get an answer. They want to build the bank in this community and be a part of the community. Mr. Quigley stated a minimum of two acres is needed for the bank. The structure would be the same at either location. Mr. Carlberg stated Anoka Auto Wrecking has asked for a 30-day extension from the October 31 deadline to remove items from the site. That would mean the delay in closing on the property at the Jay Street site. Mr. Malrooney stated if a bank were to come on the corner, it is possible another bank could be supported in the back of Andover Station. It may take a longer period of time for that to be accomplished, or it may develop as more of a professional building. It '. is a matter of an appropriate design with the rest of the vision that the EDA has for the center. He ) felt the proposal at Quinn and Bunker Lake Boulevard has definite pluses. It provides a sense of security to the area, plus there is some prestige of having a financial institution on that corner. A bank on Jay Street could impact a bank in Andover Station, but it wouldn't necessarily prohibit \ , '\ ",_J l~ \ Andover Economic Development Authority Meeting ) Minutes - October 10, 2000 Page 3 (Andover Station Update, Continued) another one fÌ'om approaching the City. Both sites have merit. The Quinn Street site is in the heart of the downtown area of Andover. The drawback is the timing, which is a key issue for the developers. The intersection is currently uncontrolled and it is not known when a light will be installed. Mr. Oakerman stated they are leaning toward the Jay Street site because ofthe timing issue. They weren't aware of the proposed extension on the closing date. Mr. Carlberg reiterated timing is an issue. The process cannot be completed in 10 to 14 days. The other issue is that of the value of the land. Is $8 to $10 appropriate based on the research done? Mr. Emmerich suggested an appraisal be done of the site. Appraised value and market value should be the same. Councilmember Orttel felt if they can agree on a site, an address can be given. The issue is location and price. Mr. Carlberg also felt the master plan of that area north of Bunker Lake Boulevard needs to be finalized. Right now the area off Jay Street and Bunker Lake Boulevard is proposed for retail with light industrial in the back. No theme has" been decided for that area either. This building would set the tone for what will happen in the rest of the park. \ '. ) When discussing the timing issue, Mr. Quigley hoped to break ground this year. Mr. Oakerman stated they could operate out of a temporary facility until the building is completed. Councilmember Knight leaned toward the Jay Street site to kick start development on the north site. Councilmember Orttel also felt it would be compatible with the Pov's facility to the west which tends to have more traffic in the evenings. The site would also be available sooner than the Quinn Street site. The EDA generally agreed with the Jay Street location and with a single story facility. The address could be given even though the City's closing on the property may not be until the end of November. There may also be some cleanup costs. Discussion was that the theme could duplicate what has been done to the south or it could be the same style with different colors or a different roof. Other buildings in the park should be strictly controlled but not necessarily be an exact match. Mr. Quigley stated there is 660 feet offÌ'ontage on Bunker Lake Boulevard east of Jay Street. They will need about half of that. Their preference would be to have the building on Bunker Lake Boulevard and Jay Street with an entrance to the north of the building which could extend east to access the remaining land. Mr. Carlberg and Mr. Malrooney stated they will work with the developers on the design of the master plan, the site plan for the bank and the location for either a frontage road or access road north of the parcel. Discussion was on establishing a price for the parcel. It was agreed the EDA should have an appraisal done. Several EDA members felt an appraisal can be very subjective and reserved the right '¡ to reject it and set a different price. The bank representatives were concerned with that, as they ~ / would not be able to go forward if they had to $6 per square foot for the land. Mr. Emmerich suggested the EDA have an appraisal done, that they too have an appraisal done, and the difference in valuation be split. He estimated that with the power station on one side and a beer joint on the , ,/ "\ \,. -) ~,-J \ Andover Economic Development Authority Meeting I Minutes - October 10, 2000 Page 4 (Andover Station Update, Continued) other side, the value would be between $2.50 to $3.50 per square foot. The EDA suggested waiting until the appraisals are done before making any decisions. Motion by Orttel, Seconded by Jacobson, to authorize Staff to get an appraisal done on the property (northeast corner of Jay Street and Bunker Lake Boulevard). Motion carried on a 6- Yes, I-Absent (Hupp) vote. Discussion was on the process of conveying the property in question to the banking group. Mr. Carlberg stated he will have the City Attorney looking into the entire procedure. He also explained the City Engineer is working on the platting of Andover Station. A big issue is the signal at Quinn Street. There are no dollars available for it now. Mr. Malrooney stated he is meeting with a major developer who may develop the entire area west of Quinn Street. They would put in the light at Quinn as a part of the deal. No further action was take on this item. APPROVE BUILDING ELEVATIONS/NORTHWEST COMMERCIAL , '- ; Greg Howard presented the building elevation from Northwest Commercial and samples of the material, which will be earth tone colors. It is a 17,000 square-foot, five-suite office warehouse building. Parking will be to the rear. All five individual units are leased out as of today. The business signs will be above the doors. They haven't decided if there will be one big monument sign outside the building. They would like to have the building completed by January 1. Councilmember Jacobson was concerned with screening from Bunker Lake Boulevard Mr. Howard stated there is a treed area across half of the back. They will do whatever it takes to screen along there. Mr. Carlberg stated Staff has not yet reviewed the site plan. Motion by Knight, Seconded by Orttel, to approve the elevations subject to submission of all the necessary plans and specs, and accept the materials. Motion carried on a 5- Yes, I-Abstain (Howard), I-Absent (Hupp) vote. OTHER BUSINESS October 24 special meeting - Councilmember Jacobson stated he is unable to attend the October 24 budget meeting. Because no other date could be agreed upon, no change was made for that meeting. 30-Day Extension Request/Anoka Auto Wrecking - Mr. Carlberg stated Anoka Auto Wrecking has \ asked for a 30-day extension. He suggested he discuss the item with the City Attorney, especially ) as it relates to action taken this evening for the banking group, then schedule a special ED A meeting at 6:45, October 17, prior to the regular Council meeting. .- '\ " , ! ) <) - , Andover Economic Development Authority Meeting Minutes - October 10, 2000 Page 5 (Other Business, Continued) Motion by Orttel, Seconded by Jacobson, to schedule an EDA meeting at 6:45 p.m. on October 17. Motion carried on a 6- Yes, I-Absent (Hupp) vote. Refund/Best Auto Parts site - Mr. Carlberg stated Terry Richardson has asked for a refund of$40,000 put in escrow for contamination cleanup when the EDA purchased the Best Auto Parts site. Mr. Richardson is claiming Mr. Fursman promised that money will be returned. That money has been spent, so there is no money to give back. He talked with Mr. Fursman, who stated that was not the agreement. The City Attorney has looked into it and found that everything is sound. There is documentation to justifY the $41,000 that was spent. The EDA discussion was to rely on legal counsel's opinion and do nothing. Ribbon cutting - Mr. Carlberg reminded the EDA of the ribbon cutting ceremony at 6:30 on October 12 at the south end of Martin Street and Commercial Boulevard. At 7 p.m. there will be the ribbon cutting ceremony for the banquet facility. : " Meeting with Leonard Parker Associates - Mr. Carlberg stated he will talk with Leonard Parker \" Associates about meeting with the EDA on the Crosstown redevelopment area and on the master plan north of Bunker Lake Boulevard. The EDA agreed to meet on November 14. Motion by Knight, Seconded by Jacobson, to schedule an EDA meeting for Tuesday, November 14, 7 p.m. Motion carried on a 6- Yes, I-Absent (Hupp) vote. Motion by Jacobson, Seconded by Orttel, to adjourn. Motion carried on a 6-Yes, I-Absent (Hupp) vote. The meeting adjourned at 10:04 p.m. Respectfully submitted, ~~~~ Marcella A. Peach Recording Secretary \ } '- -"