HomeMy WebLinkAboutApril 19, 2001
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0 CITY of ANDOVER
Economic Development Authority Meeting - Thursday, April 19 , 2001
Call to Order - 7:00 PM
Swearing in Ceremony
Approval of Minutes
Discussion Items
'~) 1. Review and Approve Andover Station Association Documents
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2. Andover Station Update
3. Discuss Extension of Advance Resources Contract
4. Discuss Design ofWDE Site/99~7/0rder Plans and Specifications
5. Other Business
Adjournment
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Q CITY of ·ANDOVER
ANDOVER ECONOMIC DEVELOPMENT AUTHORITY MEETING
APRIL 19, 2001 - MINUTES
A Meeting of the AndoverEconomic Development Authority was called to order by Mayor Mike
Gamache on April 19, 2001, 7:00 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW,
Andover, Minnesota.
Present: Councilmembers Don Jacobson (arrived at 7:10 p.m.), Mike Knight, Ken
Orttel, Julie Trude; Resident members Terri Hokanson, Fred Larsen III,
Edward Schultz
Absent: Resident member Robert Nowak
Also present: Community Development Director, Dave Carlberg
City Administrator, John Erar
Others
AMEND BY-LA WS OF EDA
0 Motion by Orttel, Seconded by Knight, approving the Resolution amending the By Laws of the ED A
(expanding from seven-member body to a nine-member body) (Resolution EDA 002-01) Motion
carried on a 4-Yes (Gamache, Knight, Orttel Trude), 2-Absent (Jacobson, Nowak) vote.
APPOINTMENT OF TWO EDA MEMBERS
Motion by Orttel, Seconded by Trude, appointing Edward Schultz and Fred Larsen III to the EDA.
Motion carried on a 4- Yes (Gamache, Knight, Orttel Trude), 2-Absent (Jacobson, Nowak) vote.
SWEARING-IN CEREMONY
City Clerk Vicki V olk performed the swearing-in ceremony for the new members ofthe EDA: Terri
Hokanson, Fred Larsen III and Edward Schultz.
APPROVAL OF MINUTES
February 22, 2001, EDA Meeting: Correct as written.
Motion by Trude, Seconded by Orttel, approval of the Minutes. Motion carried on a 4- Yes
(J (Gamache, Knight, Orttel Trude), 3-Present (Hokanson, Larsen, Schultz), 2-Absent (Jacobson,
Nowak) vote.
(Councilmember Jacobson arrived at this time, 7:10 p.m.)
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0 Andover Economic Development Authority Meeting
Minutes -April 19, 2001
Page 2
REVIEW ANDOVER STATION ASSOCIATION DOCUMENTS
Representatives of Advance Resources for Development, Mike Mulrooney, Dennis Grebner and
Brian Wessel were present. The EDA reviewed the draft of the Declaration of Covenants,
Conditions and Restrictions for Andover Station. Mr. Carlberg noted the draft before the EDA
includes changes and recommendations ofthe EDA members and the consultants. The following
discussions and changes were agreed to:
Pawn shops - In response to a question on whether or not pawn shops would be allowed in Andover
Station, Mr. Carlberg stated pawn brokers are allowed in certain areas of the City but would be
excluded from Andover Station because of the City's ordinance.
Page 10, Trails and Amenities - Discussion was on whether or not the City should do the actual
maintenance on all hiking trails, walkways and common open spaces, or does the City leave that up
to the association to maintain. Mr. Carlberg stated the thought was the City would control what is
in the public right of way. The City shouldn't completely remove itself from having control over
the maintenance of those areas. It was agreed to amend the paragraph: "The City of Andover shall
0 control the maintenance of all hiking trails, walkways, common open space, street light, landscaping,
and right of way and other site-related amenities through the collection of association fees from the ,
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members of the Andover Station Association..."
Mr. Erar noted there has been discussion of looking at the framework of the association and having
a City representative seated on the Association Board. That way there would be a direct relationship
between the City and the association. He agreed with the proposal to control the maintenance of the
trails, which would allow the City the opportunity to create a separate association document which
would be brought back to the EDA for review. They are also looking at a service district concept
where the businesses would contract services for snow removal, upkeep of the amenities, etc. That
is a point of negotiation and would be incorporated into the association documents. He thought the
streets would remain the City's, but they are open to looking at the best way to handle that. Mr. Erar
stated as more and more development occurs, the document would be expanded and amended as
needed until it is fully built out.
Security - Councilmember Knight didn't see anything in the documents relating to security. He
wondered if that would be an issue since the City doesn't have its own police department. Mr.
Carlberg stated the City would rely on the county Sheriff s Department. If the association wants to
add, they could include those types of services if the City agrees. Mr. Erar stated site security would
be very similar to the mall. They would hire their own security as a part of the fees they would
charge the tenant.
0 Mr. Carlberg also noted that these documents will apply to the existing businesses in the area. Those
businesses will also have an opportunity to review these documents as well. Mr. Mulrooney stated
the proposed developer of Andover Station has not yet responded to these documents.
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0 Andover Economic Development Authority Meeting
Minutes -April 19, 2001
Page 3
(Review Andover Station Association Documents, Continued)
Page 18, Submittal Requirements and Design Review - Councilmember Jacobson felt the last
paragraph was overkill. Mr. Carlberg stated the EDA has accepted two lighting designs already, and
the thought was to maintain uniformity in lighting styles throughout the entire park. After some
discussion, the EDA agreed to change the section by incorporating the first sentence of the second
paragraph as a part of the first paragraph. The remainder of the second paragraph starting with
"Owner/Tenant shall submit..." to be deleted entirely.
Page 21, Sign Lettering - Councilmember Jacobson asked for the rationale for limiting the signs to
not more than five words. He thought this too is overkill. Mr. Erar didn't know, but in his
experience in designing a down town, there needs to be a limitation in terms of what is allowed to
be placed on the signs. The problem becomes the clutter of signs. Control over the signage is !
needed so the area doesn't become tacky or unsightly. Mr. Carlberg stated they would prefer to leave
the paragraph as is with the restriction. If they find it too restrictive, it can always be amended. No
change was made in this section.
U Page 22, Building Signage - It was noted the "attached table" referenced in the second to last line
is not included. Mr. Carlberg noted this may be a boiler plate notation. He will correct this.
Discussion on gateway signage - Mr. Mulrooney and Mr. Grebner pointed out the proposal of major
signs at the comer of Bunker Lake Boulevard and Martin Street and at Bunker Lake Boulevard and
Quinn Street. They have talked about another identity sign at Martin and Commercial Boulevard.
Whether or not the names of the major tenants will be on those signs is a negotiable item with the
developer. Councilmember Knight thought it is nice to know what is in that particular driveway.
Mr. Erar felt the EDA may want to leave that open for now and look at a variety of concepts for
gateway signs. Mr. Grebner explained the document is a narrative intended to supplement the regular
plan. It is intended to protect the City with regard to the overall vision. It also creates protection for
the investments of the developers as well. They were looking at a symbolic bell tower in the center
of the development. It wouldn't have a light on it, and hopefully the gateway signs would be
subservient to it. Mr. Erar suggested possibly there would be no signage. Maybe the EDA just
wants an image.
In discussing the control the City has, Mr. Erar stated the EDA has a tremendous amount of control
and ability to exercise that control through the covenants. The EDA could relinquish control when
the park is developed, or it may have a City representation on the Association Board. That Board
could be structured to have the City representative have a single vote veto power. The EDA might ~
want to create a provision in the documents that any amendments to the original covenants must be
0 brought back to the EDA for approval. I
Empty stores - Councilmember Knight noted an issue in other developments is companies moving,
leaving behind empty buildings. How does the City protect itself against this happening here?
Councilmember Trude agreed a vacant anchor tenant affects the entire portion of that community.
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0 Andover Economic Development Authority Meeting
Minutes -April 19, 2001
Page 4
(Review Andover Station Association Documents, Continued)
Mr. Mulrooney stated that is difficult to deal with. In this case, the developer is interested in keeping
it leased and full versus some developments where the facility is disposable. The developer in this
case has a history of not moving, but buys and holds a project. They do not build and sell. A lot of ¡
their profit comes from managing. Hopefully that will be some degree of comfort. He was not
aware of any language that could be put in the documents to prevent vacant buildings.
Page 26, Housing - Councilmember Orttel noted the housing portion seems wide open. Mr.
Carlberg stated the Comprehensive Plan will dictate the density. This document does reference
conforming with the Comprehensive Plan.
Mr. Carlberg stated with the issues raised and changes made this evening, Staff will modify it and
work with legal counsel. He recommended it not be approved this evening. He will bring the final
document back to the ED A as soon as possible.
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Ü ANDOVER STATION UPDATE
Mr. Mulrooney explained a developer has agreed to purchase Sites A, Band G with the balance of j
the property to be acquired as an option immediately upon execution of the development agreement.
The optioned area would be for future development. The developer is also having discussions with ,
three major grocery store owners for an anchor food store on Site A. They have a commitment with !
an established banking facility for a multi-store facility at the proposed location in the site plan. ¡
They are also having discussions with a major drug retailer. The agreement calls for the purchase I
of 19.3 acres at $3.19 per foot. The proposal is that Quinn Street going through the development
w(;mld not be a public street but would be put in at the expense of the developer.
Mr. Mulrooney also presented a list of businesses his firm has contacted regarding Andover Station.
They are continuing to market this site, and there has been some interest. The vast majority would
be tenants rather than owners. He commented on his meetings with a restaurant franchise.
Restaurants are looking for the day lunch crowd. He felt the development to the north of this site
is critical for the success of Andover Station. He noted his personal opinions on the grocery store
tenants that are being considered for this project.
Mr. Mulrooney continued that the developer of the site is proposing to contract with a residential ;
builder of homes for the housing component on Site G. The parcel would be sold to that housing
builder, who is proposing to construct town homes rather than the multi-level condos proposed on
U the site plan. This builder is an up-scale townhome developer and has no interest in building condos
or commercial real estate for rent. The sentiment is that buildings with retail on the first floor and
condos above are difficult to finance and market. Ifthe EDA is not interested in townhomes for Site
G, he felt the firm proposing to develop Andover Station would remove Site G from the project.
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C_) Andover Economic Development Authority Meeting
Minutes -April 19, 2001
Page 5
(Review Andover Station Association Documents, Continued)
Discussion was on the density of the housing component of Andover Station. Mr. Grebner recalled
the site plan called for retail on the first floor of the outer buildings. The only way to get the density
was to go more than one level with parking underneath the building. The question is how much tax
revenue does the City get from a townhome development versus the condos. He sensed that the town
homes would be over $200,000 each, maybe as much as $300,000. Commissioner Hokanson felt
the community needs a mix of housing. There already is a lot of high-end housing in town, but there
is nothing for those earning $25,00 to $40,000 per year. The condo-type housing is very lacking
throughout the metropolitan area. She felt this could be a good area for that type of housing.
Mr. Erar stated there was discussion on having condos only on Site G without the retail, but the
developer is not interested in that either. The housing developer was chosen because they have a
reputation for quality. It would be difficult economically to have affordable housing in this area in
which the promotion has always been toward the upper-scale housing. Mayor Gamache noted in a
recent workshop there was a lot of discussion on ideas for affordable housing and dealing with PUDs
and different types of townhome developments. He too felt this is probably not the location for i
U affordable housing. A more feasible location for affordable housing may be on the north side of
Bunker Lake Boulevard. Councilmember Trude wondered if an executive apartment type building
is needed.
Mr. Carlberg stated Staff wants to see drawings of the proposed townhome development for Site G.
Ifthe EDA would like to stay with the retail commercial on the ground floor with condos above, that
needs to be stated to the developer; but it should be recognized that it will be quite awhile before it
develops. The thought has always been to develop this area with high up-scale condos.
Councilmember Orttel felt the high quality housing is needed to maintain the integrity of the project.
He felt dummying down to get affordable housing in the area is getting off base with what has been
envisioned for this area. Councilmember Jacobson agreed, noting there are other areas in the City
where affordable housing will work. This is not the spot for it. Commissioner Larsen agreed there
is a need for the high-end housing out here. He is in favor of the upscale townhome development.
Mr. Carlberg suggested waiting until they receive a sketch plan of what is being proposed on the
housing component of the project. If it not agreeable to the ED A, it can say no, then continue with
the negotiations. Staff will continue to work with the developer on this project.
Motion by Orttel, Seconded by Jacobson, to continue the meeting beyond 9 o'clock. Motion carried
on an 8- Yes, I-Absent (Nowak) vote.
(J Mr. Grebner then presented the color range and materials that are suggested for the buildings in
Andover Station. Other brick could be used as long as it is close in color. The idea is to allow
individuality but yet compatible with one another. The City will need to be constantly monitoring
the color and materials of the builders.
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r: ) Andover Economic Development Authority Meeting
Minutes -April 19, 2001
Page 6
DISCUSS EXTENSION OF ADVANCE RESOURCES CONTRACT
Mr. Carlberg explained the one-year contract with Mr. Mulrooney for Andover Station expired April
1. The City is still negotiating with a large developer, so it is appropriate to extend that contract.
Mr. Mulrooney brought in a contract to extend this one plus to work on the development north of
Bunker Lake Boulevard as well. Staff would like the opportunity to review that last issue. There
has been some interest in developing the north side, so it may not be necessary to retain Mr.
Mulrooney's firm. The site plan for that area also needs to be updated and reviewed.
Motion by Orttel, Seconded by Trude, to extend Mr. Mulrooney's contract for Andover Station.
DISCUSSION: Mr. Mulrooney stated the contract was expanded to the north property because he
was requested to do so at the last EDA meeting. He understood Staff must review it first. EDA
discussion was on the work done by Advance Resources, the length of time the contract should be
extended and whether or not it should be expanded to the north property. Mr. Carlberg stated the
firm did prepare the brochures and drawings for Andover Stations, has been in contact with many
firms and is pulling together the deal for the sale and development of Andover Station. That
developer did not come to the City but rather came through Mr. Mulrooney's architect via word of
ì mouth. He felt Mr. Mulrooney has fulfilled his obligations of the contract. He may not be needed
\J to market across Bunker Lake Boulevard, but his assistance and experience is needed to complete
the contract for the Andover Station development.
Councilmember Jacobson wondered if the contract expires, does the City pay the commission for
the option by the developer. Mr. Erar stated in his experience, Mr. Mulrooney is entitled to be
compensated under the terms and conditions of the original agreement for not only this sale but for
the property that is to be optioned. But he agreed it may not be necessary to expand the contract to
the north side, thinking that area will begin to sell on its own. EDA then agreed to extend the
contract to June 1 but not to expand it to include the property north of Bunker Lake Boulevard.
Councilmember Orttel included in the motion to extend the contract to June 1, 2001. Second
Stands. Motion carried on an 8-Yes, I-Absent (Nowak) vote.
DISCUSS DESIGN OF WDE SITE/IP99-78/0RDER PLANS AND SPECIFICATIONS
Mr. Carlberg suggested going back to the Leonard, Parker firm to update the site plan because of the
changes to the ball fields. The housing portion should also be included. There are no funds to
develop that site now until after the closing of the Andover Station project. That updated sketch
will be brought back to the EDA for review. The EDA agreed.
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( ~) Andover Economic Development Authority Meeting
, . Minutes -April 19, 2001
Page 7
OTHER BUSINESS
Ribbon Cutting/Andover Optical- Mr. Carlberg announced a ribbon cutting ceremony for Andover
Optical on April 24, 1 :30 p.m. Councilmember Trude and Commissioner Hokanson agreed to
represent the EDA at that ceremony.
Bus tour - The EDA resident members were invited to attend the Council's bus tour of the City on
Monday, April 23, 6 p.m.
Motion by Knight, Seconded by Hokanson, to adjourn. Motion carried on an 8- Yes, I-Absent
(Nowak) vote.
The meeting adjourned at 9:35 p.m.
Respectfully submitted,
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Marcella A. Peach
Recording Secretary
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