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HomeMy WebLinkAboutDecember 15, 1998 í '\ U ,,-) , ''\ CITY of ANDOVER "'~- ./ 1685 CROSSTOWN BOULEVARD NW. . ANDOVER, MINNESOTA 55304 . (612) 755-5100 Economic Development Authority Meeting - Tuesday, December 15, 1998 agenda Call to Order - 7:00 PM Approval of Minutes Discussion Items 1. Land PurchaseN eterinary Hospital 2. Land Purchase/116, LLC 3. Approve 1999 EDA Budget 4. Other Business " Adjournment \ '- ) \ .....~I (/" (J '-./ U CITY of ANDOVER ANDOVER ECONOMIC DEVELOPMENT AUTHORITY MEETING DECEMBER 15,1998 - MINUTES A Meeting of the Andover Economic Development Authority was called to order by Mayor Jack McKelvey on December 15, 1998, 7:15 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. Present: Councilmembers Bonnie Dehn, Mike Knight (arrived at 7:16 p.m.), John Kunza, Ken Orttel; Rèsident member Bill Hupp Absent: Resident member Robert Nowak Also present: City Attorney, William G. Hawkins City Engineer, Scott Erickson City Finance Director, Jean McGann Community Development Director, Dave Carlberg City Administrator, Richard Fursman Others (J APPROVAL OF MINUTES November 4, 1998: Correct as written. Motion by Dehn, Seconded by Orttel, the approval of the Minutes as presented. Motion carried on a4-Yes, I-Present (Kunza), 2-Absent (Knight, Nowak). (Councilmember Knight arrived at this time, 7:16 p.m.) LAND PURCHASEIVETERINARY HOSPITAL Mr. Carlberg reviewed the sale of one to three acres of land in the Andover Station commercial park to the Anoka Area Veterinary Associates, P.A. The hospital has indicated an interest in purchasing an acre of land; however, the entire site back to the south property line is about three acres. The front 1.5+/- acres is buildable. At the November 10 meeting, the EDA discussed a sale price of$l a square foot and include the remaining acreage in the purchase or sell the remaining acreage at a reduced rate. Another option would be for the City to retain an easement along the rear property line abutting the residential land to the south to preserve the existing trees as a buffer. r '\ The Authority discussed the location, the buidability of the property, buffers, and price. V Councilmember Orttel felt the proposed use would be quiet and fit in well with the back of the Park. The use is also a good transition to the retail services, which is what the City wants to see in the Park. He also felt it is bad policy to dilute the price based on the low land. He'd just as soon see the .(J U '\ Andover Economic Development Authority Meeting ,~ / Minutes - December 15, 1998 Page 2 (Land Purchase/Veterinary Hospital, Continued) price maintained for usable property and the rest thrown in or assigned to the City. If it is not sold, the property comes off the tax rolls plus the City would be required to maintain it. The City doesn't have the financial means to keep it maintained, but it does have ordinances that require the property owners to keep it clean. Councilmember Knight was not in favor of giving away the back area. It could be used to develop a nice scenic area, trails, picnic areas, etc. Mr. Carlberg stated the City would be taking easement over the low areas for protection on the flooding and ponding issues. Mayor McKelvey asked what guarantee the City would have if the back was sold to the hospital that they wouldn't use it for a dog kennel. Attorney Hawkins advised there are covenants on the property that gives the City the right to approve any construction. The development agreement would specifically set out what will be on that property and may give the City the right to purchase some of this property back. The documents can also elaborate on the rights the City has over the easements. Mr. Carlberg also stated that outside pens would not be allowed by ordinance. Motion by Orttel, Seconded by Knight, that based on the November 10 meeting, that the Economic Development Authority approve the sale of a three-acre parcel immediately to the east of the pond '\ in our industrial park to the Anoka Area Veterinary Association for the high portion of the property, j approximately 1 ~ acres to be sold at the price of $1 a square foot and the balance of the lot would ./ be attached to that acreage at no additional charge, subject to easements over it to protect the City's interest. Easements has determined by Staff, basically the southern one-half of the parcel. Subject to the buyer development agreement that will regulate the future use of the property. Motion carried on a 5-Yes, I-No (Dehn, as she felt the price is too low), I-Absent (Nowak) vote. LAND PURCHASE/116, LLC Mr. Carlberg reviewed the sale of the remaining 7.S+/- acres south of the Andover Cinema in the Andover Station commercial park to 116, LLC. The developer had expressed an interest in developing this area as a third phase of their development when they purchased the property for the Andover Cinema. The intended use of the property is for office warehouses. The Authority discussed the difficulty of the street layout and the need for an internal traffic arrangement. Possibly the public road to the east would be a private driveway. They wanted to see a conceptual layout of the development, including the theater. Tony Emmerich, 116, LLC - stated they intend to start one or two buildings in the spring if they can get a conceptual plan and an acceptable agreement on price. For them to proceed, they are looking for some commitment from the Authority. They will have to look closely to be sure they have \ sufficient parking for the theater and restaurant and sufficient access for the office warehouse , ) buildings to the south. They are not sure how the access will work. u U Andover Economic Development Authority Meeting , Minutes - December 15, 1998 j Page 3 (Land Purchase/116, LLC, Continued) Councilmember Orttel stated when the EDA sold the original property for the theater and restaurant, the price was set low recognizing it was the first investment in the commercial park. He thought they also implied that because the firm was the first to establish in the park, the EDA would agree to sell the additional acreage to them at some price. He thought that price would not be that much different than the theater, thinking it was about $1 a square foot. Motion by Dehn, Seconded by Orttel, to authorize Staff to do a purchase agreement and development contract for $1 per square foot for approximately 7.5 acres located south of the Andover Cinema in the Andover Station commercial park to 116, LLC, because the disadvantages on this property indicated this evening for traffic. It would be of equal value as the one discussed prior to this agenda item. DISCUSSION: Mr. Carlberg stated the developer is asking the EDA to consider waiving the fees. Mr. Emmerich stated they paid about $83,000 for permits for the theater. The Authority generally did not favor waiving the fees. Motion carried on a 6- Yes, I-Absent (Nowak) vote. APPROVE 1999 EDA BUDGET \ J Motion by Knight, Seconded by Dehn, the Resolution (Resolution EDA 009-98 adopting the Economic Development Authority Fund Budget). DISCUSSION: Councilmember Orttel felt the administrative costs seemed high. Ms. McGann stated those working on EDA related items track their time and those costs are recorded. The Tax Increment Financing regulations require that tracking. Mr. Fursman stated they try to get as much of their administrative time as they can into the EDA budget on purpose. It minimizes the economic development impact on the General Fund budget. Motion carried on a 6-Yes, I-Absent (Nowak) vote. Motion by Knight, Seconded by Dehn, to adjourn. Motion carried on a 6- Yes, I-Absent (Nowak) vote. The meeting adjourned at 8:06 p.m. Respectfully submitted, ~~-~ "'~,\~Gc /: f1 Marcella A. Peach , Recording Secretary , /