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HomeMy WebLinkAboutMarch 30, 1999 0 0 '\ CITY of ANDOVER ,,-) Economic Development Authority Meeting - Tuesday, March 30, 1999 Call to Order -7:00 PM Approval of Minutes Discussion Items 1. TIF Bonds 2. Order Plans & Specs for Andover Station Street & Uti1ities/99-12 . . 3. Covenants/Andover Station ,. -\ 4. Update on Landscaping for Bunker Lake Boulevard/98-17 I '\..J 5. Distribution Line - Bunker Lake Boulevard 6. Substation Relocation 7. Other Business Adjournment r~ ! I \J 0 0 CITY of ANDOVER 0 ANDOVER ECON01WIC DEVELOP11fENT AUTHORITY MEETING MARCH 30,1999 - MINUTES A Meeting of the Andover Economic Development Authority was called to order by Mayor Jack McKelvey on March 30, 1999, 7:02 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. Present: Councilmembers Don Jacobson, Julie Johnson, Mike Knight, Ken Orttel; Resident member Robert Nowak Absent: Resident member Bill Hupp Also present: City Finance Director, Jean McGann City Engineer, Scott Erickson Community Development Director, Dave Carlberg City Administrator, Richard Fursman Economic consultant, Mike Ma1roonev . , Others 0 ORDER PLANS AND SPECS FOR ANDOVER STATIONSTREETSAND UTILITIES/lP99-12 Mr. Erickson explained two additional streets are planned within Andover Station, Martin Street and Quinn Street. The alignment for Martin Street will not change because it runs along the property line of the theater/restaurant parcels and the proposed office warehouse parcel. Staff is concerned with constructing Quinn Street without knowing how that area will develop. The contractor or developer chosen forthe site may want a different street configuration or may wantto have a private street through there. He asked if the EDA wants to postpone development of Quinn Street to provide more flexibility for the future developer. Another issue is whether or not to construct the trails within Andover Station at this time or to leave those until a development plan is in place as well. The trail along Bunker Lake Boulevard will be installed as a part of that street improvement project this summer. The Authority recalled the desire to have the trail wrap around the features in the development, past discussions of a bridge, that stores would be double fronted to have access from the street as well ! as from the pondingarea, that the ponding area be made accessible for ice skating in the winter. After some discussion, it was agreed that they generally know what they want in the area, plus they - I have control over the design of the roads and trails as the property develops. Because of that, they agreed not to construct Quinn Street or the trails within Andover Station at this time to provide greater flexibility in the development of the area. 0 Discussion was on the construction of Martin Street. Councilmember Jacobson suggested landscaping and lighting in a center median for aesthetics and character. Mr. Carlberg noted Martin Street will be a right-in, right-out at Bunker Lake Boulevard. He felt Jay Street and Quinn Street will 0 0 \ Andover Economic Development Authority Meeting '- -j Minutes - March 30, 1999 Page 2 (Order Plans & Specs for Andover Station Street & Utilities/IP99-12, Continued) be the main streets into and out of the project. Councilmember Orttel stated a center median and landscaping may be a way to control traffic. He also thought that if the area is retail, sidewalks on both sides of Martin would provide flexibility and promote pedestrian traffic. It is rare not to have sidewalks in retail areas. However, possibly the construction of the sidewalks should not be done until it is known how the area is developed. The purpose is to have an effective system that serves the property. It doesn't matter whether the City or the developer installs them. Mr. Erickson stated the street lights on Jay Street are on both sides of the road. Martin Street was thought to be more of a transportation line. It would be possible to widen the street to include a median with landscaping. The lighting should carry the same theme but may not necessarily be the same lights as along Jay Street. He will come back to the Authority with some complementary lighting styles. The location of the lights could be spaced along the sides and in the center median. Mr. Carlberg asked about a mid-street pedestrian crossing on Martin Street. The proposal has been to have the crossings at Bunker Lake Boulevard and at Commercial Boulevard. The Authority felt that the traffic on Martin Street would be going slower because they would be turning at some point. They also anticipated a lot of pedestrian traffic between the area to the west and the proposed .\ restaurant and theater to the east. Because of that, they felt a mid-block pedestrian crossing is " / , necessary . Councilmember Knight noted there was some discussion about a trail on the north side of Bunker Lake Boulevard directly across from Andover Station and a crossing at the light. The residents have asked for this, and he felt a crossing is needed. Mr. Erickson stated they can look at that, though the right of way is limited. They may have to move it onto some of the back yards. He stated he will determine the amount of easement that is needed and will set up a meeting with the residents to see if they are interested. Mr. Carlberg reported he has been receiving calls regarding the RFQs the City has sent out for the development of Andover Station. Many are asking if there is flexibility in the proposed uses, which have been slated as retail in the western area and office-type development on the eastern end. There is pressure for much more retail space. The Authority was flexible in the uses as long as it will be "up scale". Possibly the area south of Commercial Boulevard would be better suited for offices or a corporate office complex. Motion by Orttel, Seconded by Knight, the Resolution ordering the improvement and directing preparation of plans and specifications based on the discussion this evening. (Resolution EDA 005- 99) Motion carried on a 6- Yes, I-Absent (Hupp) vote. \ TIF BONDS /' Ms. McGann explained the schedule for the proposed issuance of a General Obligation Tax Increment Financing Bond is to set the sale on April 6, the sale date of May 18 and receipt of the ü 0 Andover Economic Development Authority Meeting ~ Minutes - March 30, 1999 '---) Page 3 (FIF Bonds, Continued) proceeds around June 10, 1999. The amount ofthe issue will be $3,115,000 and will be paid off in the year 2012. The payments for the bond is based on no further sales or development in the TIF districts. There is a call feature in the bond if the EOA would decide to pay off the debt earlier from land sales. The EDA agreed with the proposed schedule. DISTRIBUTION LINE - BUNKER LAKE BOULEVARD and SUBSTATION RELOCATION Councilmember Jacobson withdrew from participation from both the discussion and any votes on these item because of a conflict of interest, as he was elected to the Connexus Board of Directors. Larry Nelson and Larry Peterson, Connexus Energy, reviewed the pictograph ofthe proposed project for underground electric lines along Bunker Lake Boulevard from Quay to Hanson Boulevard. The incremental cost to the City would be $448,560 for the entire project. Mr. Peterson noted the Council had asked for several scenarios of costs if these project costs were to be paid by the residents of Andover. There are 8660 meters in Andover, and possible construction and billing scenarios were \ provided on incremental construction amounts and per-meter fees based on 1- to 5-year repayment \., ./' schedules. Mr. Nelson stated they would prefer a binding decision on the Bunker Lake Boulevard project this evening, as some lead time is needed to order the underground cable. The county is very concerned that they do not hold up the project. He also pointed out that even by burying the line, there will be about nine cabinets that will have to be constructed above ground. There are clearance requirements around those boxes, and in many places they will have to negotiate easement to locate them. He also went into some detail on the specific cable that would be buried in the various sections of the project. If the distribution lines are run overhead, there will be a total of seven cables on the poles. Another cross arm would be added to the poles from Jay Street to Crosstown Boulevard. Ifburied, the City will also have to make a decision on what to do with cable TV, as they usually add to their electric poles. Mr. Nelson noted the proposed costs are based on the standard unit cost given the history of installing like lines. It includes labor and overhead. A contingency is added to obtain right of way for the nine boxes, as the county will not allow them to place them in the right of way or by the trail. They would not bill the City until the project is completely done, which is anticipated to be in October or November ofthis year. The EDA had a lengthy discussion on the issue of whether or not to order the distribution line along Bunker Lake Boulevard to be buried. While most felt it would add to the aesthetics of the area, the concerns were how to pay for it and an overall policy for requiring the burial of distribution lines within the City. The residents immediately north of the Andover Station have requested the lines ., be buried, so a suggestion was that the line be buried between Hanson Boulevard and Crosstown \.....j Boulevard and the remainder of the project area be left as overhead cable. Mr. Nelson noted that where the line comes out of the ground, they will need a large amount of guying for anchoring. They would have to determine if there is enough room there. If above ground, the line will occupy the ü 0 Andover Economic Development Authority Meeting '-. ) Minutes - March 30, 1999 Page 4 (Distribution Line/Bunker Lake Boulevard and Substation Relocation, Continued) green space between the trail and the road to reduce the need for trimming trees. He also stated it is not really a problem for them to bury the line through the wetlands. There was concern on the part of the EDA that the general populous of the City would not support paying for the underground distribution line along this project. It was suggested that this is a decision that the residents should be made aware of and public hearings held if the intent is to bill the residents for the incremental costs. The City may be able to bond to reduce the impact to the residents. A franchise fee is also an option, which should also have public input. Mr. Malrooney stated the general appearance of the commercial area is very important. The Authority has to decide what kind of community they want in terms of City standards. The trend other communities are pursuing is to bury all electrical lines, and it is certainly more common where they want quality development to occur. All residential neighborhoods in Andover have underground lines. It is done for quality and appearance. He wondered if there might be additional increments of new projects to write down this cost. Mayor McKelvey stated those funds have all been allocated. \ It was determined that the EDA has the authority to decide only in the TIF district, which was felt '-.j to extend from Hanson Boulevard to about Thrush Street or Crosstown Boulevard. It was also estimated that the cost to bury the lines for that section would be about $120,000 to under $200,000. Mr. Erickson stated the projects that have been proposed for the upcoming bond would have to be prioritized. Possibly the landscaping of Commercial Boulevard could be postponed. There was some discussion on the proposed projects for the upcoming bond, including questions and concerns on the substation relocation. If that is developed, the City probably would want the lines underground between Hanson Boulevard and Jay Street. If not done now, the cost may be more if done at a later date. Some questioned the benefit of the proposal to move the substation, speculating little would be gained by it. Mr. Carlberg stated the City would gain about three acres for development, plus it would have to pay to move the hardware. It was suggested that the substation be screened instead, noting things that have been done to screen other substations in the metropolitan area. Mr. Peterson stated there are a lot of options for screening the substation. A lot can be done for under $100,000. Mr. Carlberg stated the EDA has about a year to decide on the substation relocation. Returning to the discussion on the underground transmission lines, Mr. Malrooney suggested it should be fairly easy to negotiate the landscaping of Commercial Boulevard with a prospective developer. Developers often pick up those costs in other projects. If the EDA has the authority to '- authorize the project between Hanson Boulevard and approximately Crosstown Boulevard at a cost \ ) of about $120,000, he suggested the projected landscaping costs for Commercial Boulevard of $100,000 be directed toward that part of the Bunker Lake Boulevard project over which they have jurisdiction. Mr. Carlberg wasn't sure ofthe exact TIF district boundary. Ü l) Andover Economic Development Authority Meeting "- ) Minutes - March 30, 1999 , Page 5 (Distribution Line/Bunker Lake Boulevard and Substation Relocation, Continued) The EDA generally agreed that the transmission lines would be buried from Hanson Boulevard to approximately Thrush Street or Crosstown Boulevard if it is eligible, asking that Mr. Carlberg check the exact location of the TIF district. The cost would be funded from the upcoming bond, possibly by eliminating the proposed project for the landscaping of Commercial Boulevard, anticipating that work can be negotiated with future developers. It was also noted that for the area outside of the TlF district, the Council will have to deal with the bigger issue of franchise fees or per-meter fees for such projects. Because the Council did not think the public would be in favor of paying for this project, it was thought that the transmission lines for the remainder of the Bunker Lake Boulevard project would be overhead. They asked that the item be placed on the next Council agenda. Mr. Carlberg stated he will research the specific TIF district and relay that to Mr. Peterson and Mr. Nelson within a day or two. l'v[otion by Orttel, Seconded by Knight, that the EDA recommend to the City Council that the underground electrical power distribution line be installed from Hanson Boulevard to the comer of the new Crosstown Boulevard with the cost to come from TlFby reallocating from the possible :- \ expenditures list given to us on March 30, and the Staff is to ensure that these are eligible TlF \..J improvements. DISCUSSION: Mr. Erickson stated he will do a phone poll ofthe EDA when a more specific cost amount is determined for this proposal. Motion carried on a 5- Yes, I-Absent (Hupp), I-Not Voting (Jacobson) vote. COVENANTS/ANDOVER STATION Mr. Carlberg stated some changes have been made to the draft of the covenants for Andover Station. The Planning and Zoning Commission has made some recommendations, plus he has been talking to Mr. Malrooney. They will be doing research on what other developments are doing for association bylaws and fees. One of the items will be how to incorporate the collection of fees for the maintenance of the common areas. Councilmember Jacobson questioned the restriction in Section 2.05, Building Quality and Materials, that only masonry is allowed. He felt that is very restrictive and hoped there could be greater flexibility to provide a unique development. After some discussion, it was agreed to leave the section as written; as it was felt there is enough flexibility. The concern was not to lower the standard but to be open to proposals that are brought forward. In discussing the development of Andover Station, Councilmember Orttel wondered if the names of the streets could be changed. He recognized that has not been done in Andover; however, the , ' intent here is to create an upscale development. No decision was made at this time. '----.I Mr. Malrooney was optimistic that the City will see some good responses from the RFQs from both local and national architects and developers. Mr. Carlberg stated most of the calls he's received is c) () Andover Economic Development Authority Meeting \. / Minutes - March 30, 1999 -' Page 6 (Covenants/Andover Station, Continued) on the map of uses as to the City's t1exibility of those uses. They are generally looking for more retail uses. He is telling them that if it is the right project, there can be some flexibility because the map is a concept master plan. Councilmember Orttel wondered if it would be reasonable to have the developers coming in to look at the development of the commercial development to the north as well. Mr. Malrooney felt ajoint venture is an excellent idea and should be explored. With the development of Andover Station, he predicted they will see significantly more interest in the northern area as well. It may even end up being the same developer for both parcels. From a tax standpoint, he felt the City should be looking at more retail as opposed to industrial. Mr. Carlberg stated he has toured the Andover Cinema, which is expected to open on May 1. An opening ceremony is being planned. It is also Staff s recommendation that no further work be done on the association documents and platting of Andover Station until after the RFQ because it is not known how that area will develop. They are not able to close on the purchase of the theater site because the purchase documents indicate that the City will plat the property as a part of the sale. It , means the City does not yet have the money available from that land sale. The City has given them \ , the right to develop on the property. The initial exercise on the option for the restaurant has been .~, extended until June 15. He felt the sketch plan stage will have to be skipped when platting this property and go right to the preliminary plat and final on the same day. The EDA generally agreed. UPDATE ON LANDSCAPING FOR BUNKER LAKE BOULEVARDIIP98-17 Mr. Erickson reviewed the plans for the landscaping of Bunker Lake Boulevard. There will not be crosswalks on the county road, but there will be on the City streets. The item will be brought back once the bids are opened. The EDA had no comment on the plans. Motion by Jacobson, Seconded by Orttel, to adjourn. Motion carried on a 6- Yes, I-Absent (Hupp) vote. The meeting adjourned at 9:40 p.m. Respectfully submitted, \~\~~y~ j '-.. \ ~~ Marcella A. Peach Recording Secretary