HomeMy WebLinkAboutNovember 4, 1998
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\._J 1685 CROSSTOWN BOULEVARD N.W. · ANDOVER. MINNESOTA 55304 · (612) 755-5100
Economic Development Authority Meeting - Wednesday, November 4, 1998 agenda
Call to Order - 7 :00 PM
Approval of Minutes minutes
Discussion Items
1. Discuss Request/Relocation Expenses/Charles Mistelske request
2. Approve Change Order #6/94-33B/Commercial Blvd NW Ext./Contaminated Soil and co69433b
Debris Removal
3. Approve Change Order #4/94-33C/Commercial Blvd NW Ext./Contaminated Soil and co49433c
Debris Removal
'0 4. Other Business
Adjournment
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CITY of ANDOVER
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ANDOVER ECONOMICDEVELOPMENTAUTHORITY MEETING
NOVEMBER 4, 1998 - MINUTES
A Meeting of the Andover Economic Development Authority,was called to order by Mayor Jack
McKelvey on November 4, 1998, 7: 1 0 p.m., at the Andover City Hall, 168S Crosstown Boulevard
NW, Andover, Minnesota.
Present: Councilmembers Bonnie Dehn, Mike Knight, Ken Orttel; Resident members
Bill Hupp and Robert Nowak
Absent: Councilmember John Kunza
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
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APPROVAL OF MINUTES
October 20, 1998: Correct as written.
Motion by Knight, Seconded by Dehn, to approve the Minutes. Motion carried on a 5- Yes, 1-
Present (Nowak), I-Absent (Kunza) vote.
DISCUSS REQUEST/RELOCATION EXPENSES/CHARLES MISTELSKE
Mr. Fursman requested the EDA consider the final payment for relocation and moving expenses to
Charles Mistelske in the amount of $59,350. Due to the lien claim for fees in the amount of
$16,083.09 being served by Schnitker and Associates, P.A., the City could only disburse a payment
of $43,000 to Mr. Mistelske. He showed a video of the site, which shows that all of the property
has been cleaned up. The debris still left on site is from the building which is being removed. That
is not Mr. Mistelske's responsibility.
Mr. Fursman noted three issues to consider. One is that a large portion of the yard was reduced by
crushing the cars and selling the inventory. The issue is whether that constitutes a moving expense
or does it really matter how the inventory was removed. The second issue is the concrete beam
CJ pillars. Mr. Mistelske originally stated he didn't want them, and the City's Public Works
Department said they could use them. Now Mr. Mistelske is stating he wants the pillars and wants
the City to move them to his new business at a cost of $8,000. This was not originally included in
the estimate for relocation benetits. It was Mr. Fursman's opinion that the concrete pillars are
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Andover Economic Development Authority Meeting
, .Minutes - November 4, 1998
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Page 2
(Discuss Request/Relocation Expenses/Charles Mistelske, Continued)
a part of the original salvage yard operation. It was surplus material that had no bearing on the
business. Whether or not Mr. Mistelske moves them, he did not think it is incumbent upon the City
to pay for the move any more than the City would pay to move other personal property not related
to the business. The third issue is Mr. Mistelske is asking that he be given the money for him to pay
the licn for his attorneys.
Attorney Hawkins advised that with the lien claim, the City would become liable if it is not paid.
He did not recommend giving the money to Mr. Mistelske. The Authority also discussed the request
regarding the concrete pillars. Staff had pictures of the pillars. After some deliberation, the
Authority agreed with Mr. Fursman that they would be considered property that was not related to
the business. Those pillars were a part of the property which the City purchased. If Mr. Mistelske
wished to move them, he could have them and move them at his own expense. If they are left, the
City would malœ use of them. The Authority also decided not to make an issue of the inventory that
was moved by being crushed and sold. Mayor McKelvey stated two days ago there were some
fenders and other scraps of cars on the site.
Char!es Mistelske - stated if there is anything else to be cleaned up, he will do so. He asked that a
'. I dumpster be put on the site for that purpose. Mr. Fursman agreed that could be done. Attorney
Hawkins stated an agreement still has not been reached on the amount of damage Mr. Mistelske
sustained as a result ofthe acquisition. This payment should be given after Mr. Mistelske signs an
agreement that there will be no further claims for relocation benefits as a result of the City's
acquisition ofthe property.
A-fotioll by Orttel, Seconded by Dehn, the EDA authorize payment of the final installment of the
award for moving expenses for Charles Mistelske in the amount of$S9,3S0, payment subject to Mr.
Mistelske signing a final settlement agreement that is to be prepared by the City Attorney, and that
this would be the final payment for all costs relating to the moving of Mr. Mistelske from the site.
DISCUSSION: Mr. Fursman stated he didn't think it is Mr. Mistelske's intent to enter into an
agreement. He thought Mr. Mistelske intends to sue the City for additional relocations claims and
suggested a sunset clause be added to the agreement.
Councilmember Orttel added to the motion, to add a 15-day sunset provision. Council member
Delm rescinded her Second. Councilmember Knight Seconded the motion. Motion carried on a 5-
Yes, I-No (Dehn because of the condemnation), I-Absent (Kunza) vote.
APPROVE CHANGE ORDER #6/lP94-33B/COMA1ERCIAL BOULEVARD NW
EXTENSION/CONTAMINATED SOIL AND DEBRIS REMOVAL
,_ f J l'.Iotion by Orttd, Seconded by Knight, to approve Change Order No.6 in the amount of$I,OOO for
the excavating and grading project for the Andover Commercial Park. (Resolution EDA 007-98)
Motion carried on a 6··Yes, I-Absent (Kunza) vote.
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"- Andover Economic Development Authority NJeeting
J Minutes - November 4, 1998
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APPROVE CHANGE ORDER #4/IP94-33C/COMMERCIAL BOULEVARD NW
EXTENSION/CONTAMINATED SOIL AND DEBRIS REMOVAL
Motion by Orttel, Seconded by Dehn, to approve Change order No.4 for excavation of contaminated
soil from the Andover Commercial site. (Resolution EDA 008-98) Motion carried on a 6- Yes, 1-
Absent (Kunza) vote.
DISCUSS GRADING OF COMMERCIAL PARK
Mr. Erickson reviewed the status of the grading of the Commercial Park. The majority has been
completed. Some top soil is being done and the final grading being completed. The grading
contractor, E & H Earth Movers, is doing the grading and cleanup of the debris. They have indicated
they will be submitting a claim against the City or the project because the concentration of the debris .
in the soil was not dense enough to make any money. They had to sift the soil to separate everything.
The City hasn't seen the final request on that matter. The second item is the excavation of the M.
R. Olson site, which has a lot of debris. That was awarded as an alternate to the original contract.
The company has indicated they are not interested in digging out that corner area and correcting
those soils. The City does have the ability to require them to do so, as they are under contract to do
so.
Mr. Erickson stated the EDA had asked about creating a berm between the residents and the
commercial area with the soil and debris that is being excavated. He noted screening is already in
place between the residents and the commercial park. Plus, he didn't know if there would be any
stigma of creating a berm out of debris. The Andover Review Committee is suggesting not to pursue
a berm.
The consensus of the EDA was that E & H Earth Movers are under contract to clean up the M. R.
Olson site.
The next meeting of the EDA is scheduled for Tuesday, November 10, 7 p.m.
Motion by Knight, Seconded by Dehn, to adjourn. Motion carried on a 6- Yes, I-Absent (Kunza)
vote. The meeting adjourned at 7:50 p.m.
Respectfully submitted,
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Marcella A. Peach
Recording Secretary